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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

(X)   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended December 31, 2017

or

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number        0-21718

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.
(Exact name of registrant as specified in its charter)

Delaware

52-1749505

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

                   (617) 624-8900                   

(Registrant's telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý

No 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ý

No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer □

Accelerated Filer □

Non-accelerated filer □ (Do not check if a smaller reporting company)

Smaller Reporting Company ý

Emerging Growth Company □

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes 

No ý

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2017

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 
   

Pages

 

Item 1. Condensed Financial Statements

   

Condensed Balance Sheets

4-9

   

Condensed Statements of Operations

10-21

   

Condensed Statements of Changes in 
Partners' Capital (Deficit)


22-25

   

Condensed Statements of Cash Flows

26-31

   

Notes to Condensed Financial 
Statements


32-44

     
 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of 
Operations



45-57

     
 

Item 3. Quantitative and Qualitative
Disclosures About Market Risk


58

     
 

Item 4. Controls and Procedures

58

     

PART II - OTHER INFORMATION

 
     
 

Item 1. Legal Proceedings

59

     
 

Item 1A. Risk Factors

59

     
 

Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds


59

     
 

Item 3. Defaults Upon Senior Securities

59

     
 

Item 4. Mine Safety Disclosures

59

     
 

Item 5. Other Information

59

     
 

Item 6. Exhibits 

59

     

Signatures

60

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

 

 

 

December 31,
2017

March 31,
2017

 

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$    -

$    -

     

OTHER ASSETS

   

Cash and cash equivalents

   2,227,329

   1,460,257

 


$   2,227,329


$   1,460,257

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      11,001

$      27,746

Accounts payable affiliates (Note C)

15,350,216

15,299,405

Capital contributions payable (Note D)

      26,447

      26,447

 


  15,387,664


  15,353,598

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs;

21,996,102 issued and 21,843,147

outstanding as of December 31, 2017

and March 31, 2017

 







(11,273,004)







(11,998,679)

General Partner

 (1,887,331)

 (1,894,662)

 


(13,160,335)


(13,893,341)

 


$   2,227,329


$   1,460,257

 













The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 15

 

 

 

December 31,
2017

March 31,
2017

 

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$    -

$   -

     

OTHER ASSETS

   

Cash and cash equivalents

    301,020

     64,641

 


$    301,020


$     64,641

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      3,001

$      6,246

Accounts payable affiliates (Note C)

3,071,436

3,039,294

Capital contributions payable (Note D)

          -

          -

 


  3,074,437


  3,045,540

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and 3,830,900

outstanding as of December 31, 2017

and March 31, 2017







(2,423,494)







(2,628,901)

General Partner

  (349,923)

  (351,998)

 


(2,773,417)


(2,980,899)

 


$    301,020


$     64,641












The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 16



December 31,
2017

March 31,
2017

 

ASSETS

 

 

 

     

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$    -

$   -

     

OTHER ASSETS

   
     

Cash and cash equivalents

    359,273

    327,901

 


$    359,273


$    327,901

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      3,000

$      -

Accounts payable affiliates (Note C)

7,977,160

8,025,811

Capital contributions payable (Note D)

          -

      -

 


  7,980,160


  8,025,811

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and 5,392,500

outstanding as of December 31,

2017 and March 31, 2017







(7,078,070)







(7,154,323)

General Partner

  (542,817)

  (543,587)

 


(7,620,887)


(7,697,910)

 


$    359,273


$    327,901










 

The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 17



December 31,
2017

March 31,
2017

 

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$    -

$   -

     

OTHER ASSETS

   

Cash and cash equivalents

    556,657

    559,787

 


$    556,657


$    559,787

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      2,000

$     14,000

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

      7,893

      7,893

 


   9,893


   21,893

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and 4,962,947

outstanding as of December 31, 2017

and March 31, 2017







913,503







904,722

General Partner

  (366,739)

  (366,828)

 


  546,764


537,894

 


$    556,657


$    559,787











The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 18



December 31,
2017

March 31,
2017

 

ASSETS

 

 

 

     

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$    -

$   -

     

OTHER ASSETS

   

Cash and cash equivalents

    814,722

    318,027

 


$    814,722


$    318,027

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      -

$       -

Accounts payable affiliates (Note C)

4,301,620

4,234,300

Capital contributions payable (Note D)

     18,554

     18,554

 


  4,320,174


  4,252,854

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and 3,598,100

outstanding as of December 31, 2017

and March 31, 2017







(3,160,170)







(3,585,251)

General Partner

  (345,282)

  (349,576)

 


(3,505,452)


(3,934,827)

 


$    814,722


$    318,027

 











The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 19

 



December 31,
2017

March 31,
2017

 

ASSETS

 

 

 

     

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$    -

$   -

     

OTHER ASSETS

   

Cash and cash equivalents

    195,657

   189,901

 


$    195,657


$   189,901

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      3,000

$      7,500

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

          -

          -

 


      3,000


      7,500

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and 4,058,700

outstanding as of December 31, 2017

and March 31, 2017







475,227







465,074

General Partner

  (282,570)

  (282,673)

 


    192,657


   182,401

 


$    195,657


$   189,901

 










The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 

 


2017


2016

         

Income

  Interest income

$     2,303

 

$       712

 

  Other income

     -

 

     4,565

 
 


    2,303

 


     5,277

 

Share of Income from Operating 
  Partnerships(Note D)


  201,065


  83,978

         

Expenses

       

  Professional fees

7,150

 

13,916

 

  Fund management fee, net (Note C) 

11,994

 

79,509

 

  General and administrative expenses

    39,936

 

    43,434

 

  


    59,080

 


   136,859

 
         

  NET INCOME (LOSS)

$ 144,288

 

$  (47,604)

 
         

Net income (loss) allocated to limited assignees

$ 142,845

 

$ (47,128)

 
         

Net income (loss) allocated to general partner

$    1,443

 

$    (476)

 
         

Net income (loss) per BAC

$      .01

 

$      .00

 
         



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,

(Unaudited)

 

Series 15


2017


2016

         

Income

  Interest income

$         290

 

$         9

 

  Other income

         -

 

         -

 


        290


         9

Share of Income from Operating 
  Partnerships(Note D)


     47,602


     16,000

 

 

         

Expenses

       

  Professional fees

1,430

 

1,456

 

  Fund management fee, net (Note C) 

12,936

 

9,027

 

  General and administrative expenses

      6,868

 

      8,456

 

  


    21,234

 


    18,939

 
         

  NET INCOME (LOSS)

$   26,658

 

$   (2,930)

 
         

Net income (loss) allocated to limited assignees

$ 26,391

 

$ (2,901)

 
         

Net income (loss) allocated to general partner

$       267

 

$       (29)

 
         

Net income (loss) per BAC

$     .01

 

$     (.00)

 
         

 























The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 

Series 16


2017


2016

       

Income

     

  Interest income

$        343

 

$        293

  Other income

       -

 

         -

 


      343

 


        293

Share of Income from Operating 
  Partnerships(Note D)


    62,361


    -

       

Expenses

     

  Professional fees

1,430

 

2,015

  Fund management fee, net (Note C) 

24,663

 

29,280

  General and administrative expenses

     10,494

 

     10,775

  


     36,587

 


     42,070

       

  NET INCOME (LOSS)

$   26,117

 

$   (41,777)

       

Net income (loss) allocated to limited assignees

$    25,856

 

$   (41,359)

       

Net income (loss) allocated to general partner

$      261

 

$      (418)

       

Net income (loss) per BAC

$    .00

 

$     (.01)

       























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)


Series 17


2017


2016

         

Income

  Interest income

$        597

 

$        285

 

  Other income

     -

 

     -

 
 


      597

 


      285

 

Share of Income from Operating 
  Partnerships(Note D)


   22,000


   67,978

         

Expenses

       

  Professional fees

1,430

 

7,799

 

  Fund management fee, net (Note C) 

(36,389)

 

19,005

 

  General and administrative expenses

      8,287

 

      8,540

 

  


   (26,672)

 


     35,344

 
         

  NET INCOME (LOSS)

$  49,269

 

$  32,919

 
         

Net income (loss) allocated to limited assignees

$  48,776

 

$  32,590

 
         

Net income (loss) allocated to general partner

$     493

 

$      329

 
         

Net income (loss) per BAC

$    .01

 

$      .01

 
         

 






















The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,

(Unaudited)


Series 18

 


2017


2016

     

Income

   

  Interest income

$        914

$         46

  Other income

      -

      3,000

 


      914


      3,046

Share of Income from Operating 
  Partnerships(Note D)


    -


     -

     

Expenses

   

  Professional fees

1,430

1,260

  Fund management fee, net (Note C) 

2,207

13,404

  General and administrative expenses

      7,149

      7,602

  


     10,786


     22,266

     

  NET INCOME (LOSS)

$   (9,872)

$   (19,220)

     

Net income (loss) allocated to limited assignees

$   (9,773)

$   (19,028)

     

Net income (loss) allocated to general partner

$       (99)

$      (192)

     

Net income (loss) per BAC

$     (.00)

$     (.01)

     

























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)



Series 19


2017


2016

     

Income

   

  Interest income

$       159

$        79

  Other income

      -

     1,565


     159


     1,644

Share of Income from Operating 
  Partnerships(Note D)


   69,102


    -

     

Expenses

   

  Professional fees

1,430

1,386

  Fund management fee, net (Note C) 

8,577

8,793

  General and administrative expenses

     7,138

     8,061

  


  17,145


  18,240

     

  NET INCOME (LOSS)

$  52,116

$  (16,596)

     

Net income (loss) allocated to limited assignees

$  51,595

$  (16,430)

     

Net income (loss) allocated to general partner

$      521

$     (166)

Net income (loss) per BAC

$     .01

$    (.00)

     














 










The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 

 


2017


2016

         

Income

       

  Interest income

$     3,819

 

$     2,327

 

  Other income

    15,375

 

    31,005

 
 


    19,194

 


    33,332

 

Share of Income from Operating 
  Partnerships(Note D)


 1,052,341



  402,562

         

Expenses

       

  Professional fees

108,844

 

137,399

 

  Fund management fee, net (Note C) 

136,766

 

251,690

 

  General and administrative expenses

    92,919

 

   178,932

 

  


   338,529

 


   568,021

 
         

  NET INCOME (LOSS)

$  733,006

 

$ (132,127)

 
         

Net income (loss) allocated to limited assignees

$  725,675

 

$ (130,805)

 
         

Net income (loss) allocated to general partner

$    7,331

 

$   (1,322)

 
         

Net income (loss) per BAC

$    .03

 

$    (.01)

 
         



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,

(Unaudited)

 

Series 15


2017


2016

         

Income

       

  Interest income

$        329

 

$        271

 

  Other income

       321

 

       321

 


       650


       592

Share of Income from Operating 
  Partnerships(Note D)


  265,241

 

 


  16,000

 

 

         

Expenses

       

  Professional fees

22,462

 

29,974

 

  Fund management fee, net (Note C) 

18,780

 

17,119

 

  General and administrative expenses

     17,167

 

     32,973

 

  


    58,409

 


    80,066

 
         

  NET INCOME (LOSS)

$   207,482

 

$   (63,474)

 
         

Net income (loss) allocated to limited assignees

$    205,407

 

$   (62,839)

 
         

Net income (loss) allocated to general partner

$      2,075

 

$      (635)

 
         

Net income (loss) per BAC

$      .05

 

$     (.02)

 
         

 























The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 

Series 16


2017


2016

       

Income

     

  Interest income

$        939

 

$        763

  Other income

      2,080

 

      603

 


      3,019

 


      1,366

Share of Income from Operating 
  Partnerships(Note D)


    187,294

 

 


    316,084

       

Expenses

     

  Professional fees

28,238

 

30,911

  Fund management fee, net (Note C) 

62,666

 

90,290

  General and administrative expenses

     22,386

 

     42,737

  


    113,290

 


    163,938

       

  NET INCOME (LOSS)

$  77,023

 

$  153,512

       

Net income (loss) allocated to limited assignees

$ 76,253

 

$ 151,977

       

Net income (loss) allocated to general partner

$      770

 

$     1,535

       

Net income (loss) per BAC

$     .01

 

$     .03

       























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)


Series 17


2017


2016

         

Income

       

  Interest income

$      1,238

 

$       826

 

  Other income

     11,958

 

     11,500

 
 


     13,196

 


     12,326

 

Share of Income from Operating 
  Partnerships(Note D)

 

22,000


 

70,478

         

Expenses

       

  Professional fees

21,270

 

33,066

 

  Fund management fee, net (Note C) 

(14,264)

 

61,540

 

  General and administrative expenses

     19,320

 

     38,860

 

  


     26,326

 


    133,466

 
         

  NET INCOME (LOSS)

$   8,870

 

$   (50,662)

 
         

Net income (loss) allocated to limited assignees

$   8,781

 

$   (50,155)

 
         

Net income (loss) allocated to general partner

$    89

 

$    (507)

 
         

Net income (loss) per BAC

$      .00

 

$      (.01)

 
         

 






















The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,

(Unaudited)


Series 18

 


2017


2016

     

Income

   

  Interest income

$      1,113

$        209

  Other income

      933

     16,933

 


      2,046


     17,142

Share of Income from Operating 
  Partnerships(Note D)


    508,704


     -

     

Expenses

   

  Professional fees

20,340

23,742

  Fund management fee, net (Note C) 

44,171

58,612

  General and administrative expenses

     16,864

     29,569

  


     81,375


    111,923

     

  NET INCOME (LOSS)

$  429,375

$  (94,781)

     

Net income (loss) allocated to limited assignees

$   425,081

$   (93,833)

     

Net income (loss) allocated to general partner

$   4,294

$   (948)

     

Net income (loss) per BAC

$       .12

$      (.03)

     

























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)



Series 19


2017


2016

     

Income

   

  Interest income

$      200

$      258

  Other income

      83

     1,648


     283


     1,906

Share of Income from Operating 
  Partnerships(Note D)


  69,102


  -

     

Expenses

   

  Professional fees

16,534

19,706

  Fund management fee, net (Note C) 

25,413

24,129

  General and administrative expenses

    17,182

    34,793

  


   59,129


   78,628

     

  NET INCOME (LOSS)

$  10,256

$  (76,722)

     

Net income (loss) allocated to limited assignees

$  10,153

$  (75,955)

     

Net income (loss) allocated to general partner

$     103

$     (767)

Net income (loss) per BAC

$      .00

$     (.02)

     
























The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2017

(Unaudited)


 




Assignees



General
Partner





Total

       

Partners' capital 
 (deficit)
  April 1, 2017



$(11,998,679)



$ (1,894,662)



$(13,893,341)

       

Net income

    725,675

      7,331

    733,006

       

Partners' capital 
 (deficit),
  December 31, 2017



$(11,273,004)



$ (1,887,331)



$(13,160,335)

       





















 

 

 

 







The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2017

(Unaudited)

 

 



Assignees

General
Partner

Total

Series 15

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$ (2,628,901)



$ (351,998)



$ (2,980,899)

       

Net income

    205,407

    2,075

   207,482

       

Partners' capital 
 (deficit),
  December 31, 2017



$ (2,423,494)



$ (349,923)



$ (2,773,417)

       
       

Series 16

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$ (7,154,323)



$ (543,587)



$ (7,697,910)

       

Net income

   76,253

    770

   77,023

       

Partners' capital 
 (deficit),
  December 31, 2017



$ (7,078,070)



$ (542,817)



$ (7,620,887)

       












 

 

 

 

 

 

 

 





The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2017

(Unaudited)

 

 

 



Assignees

General
Partner

Total

Series 17

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$  904,722



$  (366,828)



$  537,894

       

Net income

    8,781

      89

     8,870

       

Partners' capital 
 (deficit),
  December 31, 2017



$     913,503



$  (366,739)



$     546,764

       
       

Series 18

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$ (3,585,251)



$  (349,576)



$ (3,934,827)

Net income

   425,081

     4,294

    429,375

       

Partners' capital 
 (deficit),
  December 31, 2017



$ (3,160,170)



$  (345,282)



$ (3,505,452)

       










 

 

 









The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2017

(Unaudited)

 

 



Assignees

General
Partner

Total

Series 19

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$   465,074



$ (282,673)



$   182,401

       

Net income

   10,153

      103

    10,256

       

Partners' capital 
 (deficit),
  December 31, 2017



$    475,227



$ (282,570)



$    192,657

       




























 

 





The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$   733,006

$  (132,127)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(1,052,341)


(402,562)

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses

 

(16,745)

 

(30,482)

     (Decrease) Increase in accounts
        payable affiliates


    50,811


    206,337

     

      Net cash used in 
        operating activities


  (285,269)


  (358,834)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships


  1,052,341


    352,554

     

   Net cash provided by
     investing activities


  1,052,341


    352,554

     

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


767,072


(6,280)

     

Cash and cash equivalents, beginning

  1,460,257

  1,783,433

     

Cash and cash equivalents, ending

$  2,227,329

$  1,777,153

     
     
     
     
     
     
     

 


 

 

 

 

 

 



The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$  207,482

$   (63,474)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(265,241)


(16,000)

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


(3,245)


(4,498)

     (Decrease) Increase in accounts
        payable affiliates


     32,142


     27,081

     

      Net cash used in 
        operating activities


   (28,862)


   (56,891)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships

 

  265,241

 

   16,000

     

   Net cash provided by
     investing activities

 

  265,241

 

   16,000

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

 

236,379


(40,891)

     

Cash and cash equivalents, beginning

     64,641

    116,858

     

Cash and cash equivalents, ending

$    301,020

$     75,967

     
     
     
     
     
     

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS


Nine Months Ended December 31,
(Unaudited)


Series 16

 

2017

2016

Cash flows from operating activities:

   

   Net Income (Loss)

$ 77,023

$ 153,512

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(187,294)


(316,084)

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


3,000


(10,987)

     (Decrease) Increase in accounts
        payable affiliates


  (48,651)


  107,544

     

      Net cash used in 
        operating activities


 (155,922)


  (66,015)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships

 

  187,294

 

  266,076

     

   Net cash provided by
     investing activities

 

 187,294

 

 266,076

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


31,372


200,061

     

Cash and cash equivalents, beginning

   327,901

   381,450

     

Cash and cash equivalents, ending

$   359,273

$   581,511

     

 

 

 

 

 

 

 

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)

Series 17

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$ 8,870

$  (50,662)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(22,000)


(70,478)

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


(12,000)


(1,999)

     (Decrease) Increase in accounts
        payable affiliates


        -


        -

 

 

 

      Net cash used in 
        operating activities


(25,130)


(123,139)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships


   22,000


   70,478

     

   Net cash provided by
     investing activities


   22,000


    70,478

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(3,130)


(52,661)

     

Cash and cash equivalents, beginning

    559,787

    640,398

     

Cash and cash equivalents, ending

$    556,657

$    587,737

     

 

 

 

 

 

 

 

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)

Series 18

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$ 429,375

$ (94,781)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(508,704)


-

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


-


(6,499)

     (Decrease) Increase in accounts
        payable affiliates


    67,320


    71,712

     

      Net cash used in 
        operating activities


 (12,009)


 (29,568)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships


508,704


        -

     

   Net cash provided by
     investing activities


 508,704


       -

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


496,695


(29,568)

     

Cash and cash equivalents, beginning

   318,027

   353,832

     

Cash and cash equivalents, ending

$   814,722

$   324,264

     
     
     
     
     
     
     

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,

(Unaudited)


Series 19

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$   10,256

$   (76,722)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(69,102)


-

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


(4,500)


(6,499)

     (Decrease) Increase in accounts
        payable affiliates


          -


          -

     

      Net cash used in 
        operating activities


   (63,346)


   (83,221)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships

 

   69,102

 

        -

     

   Net cash provided by
     investing activities

 

   69,102

 

        -

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


5,756


(83,221)

     

Cash and cash equivalents, beginning

    189,901

    290,895

     

Cash and cash equivalents, ending

$    195,657

$    207,674

     
     


 

 

 

 

 

 

 

 

 

 

 



The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2017

(Unaudited)

 

 

NOTE A - ORGANIZATION


Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws of the State of Delaware as of September 19, 1991 for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows. The general partner of the Fund continues to be Boston Capital Associates III L.P., a Delaware limited partnership. The general partner of the general partner of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the general partner is Capital Investment Holdings, a general partnership whose partners are various officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by Herbert F. Collins and John P. Manning.


Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992 which covered the offering (the "Public Offering") of the Fund's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner.  The Fund registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series.  On September 4, 1993 the Fund filed an amendment to Form S-11 with the Securities and Exchange Commission which registered an additional 2,000,000 BACs at $10 per BAC for sale to the public in one or more series. The registration for the additional BACs became effective on October 6, 1993. Offers and sales of BACs in Series 15 through 19 of the Fund were completed and the last of the BACs in Series 15, 16, 17, 18 and 19 were issued by the Fund on September 26, 1992, December 28, 1992, September 17, 1993, September 22, 1993, and December 17, 1993, respectively.  The Fund sold 3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of Series 16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a total of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000; and 4,080,000 of Series 19 BACs, for a total of $40,800,000.  As of December 31, 2017, 3,830,900 BACs in Series 15, 5,392,500 BACs in Series 16, 4,962,947 BACs in Series 17, 3,598,100 BACs in Series 18, and 4,058,700 BACs in Series 19, respectively, are outstanding. The Fund issued the last BACs in Series 19 on December 17, 1993.  This concluded the Public Offering of the Fund.














Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2017 and for the three and nine months then ended have been prepared by the Fund, without audit. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued.  Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.  

 

The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K for the fiscal year ended March 31, 2017.




























 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

 

NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates of its general partner, including Boston Capital Holdings LP, Boston Capital Partners, Inc., and Boston Capital Asset Management Limited Partnership, as follows:

An annual fund management fee, based on .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships, has been accrued to Boston Capital Asset Management Limited Partnership.  Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partnership, the amounts accrued are not net of reporting fees received. The fund management fees accrued for the three months ended December 31, 2017 and 2016 are as follows:

 

        2017

        2016

Series 15

$ 12,936

$  9,027

Series 16

24,663

30,588

Series 17

13,611

19,005

Series 18

22,257

23,904

Series 19

  8,577

  8,793

 

$ 82,044

$ 91,317

The fund management fees paid for the three months ended December 31, 2017 and 2016 are as follows:

2017

2016

Series 15

$  -

$  -

Series 16

-

-

Series 17

13,611

19,005

Series 18

-

-

Series 19

   8,577

   8,793

$ 22,188

 

$ 27,798

 

 

 

The fund management fees paid for the nine months ended December 31, 2017 and 2016 are as follows:

 

2017

2016

Series 15

$  16,000

$  -

Series 16

124,615

-

Series 17

40,833

62,637

Series 18

-

-

Series 19

  26,163

  26,379

$ 207,611

 

$ 89,016

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED

December 31, 2017

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2017 and 2016, the Fund had limited partnership interests in 40 and 53 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at December 31, 2017 and 2016 is as follows:

 

 

2017

2016

Series 15

9

13

Series 16

13

17

Series 17

4

5

Series 18

11

12

Series 19

  3

  6

 

 40

 53


Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships.  These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations.  The contributions payable at December 31, 2017 and 2016 are as follows:

 

        2017

        2016

Series 15

$      -

$      -

Series 16

-

-

Series 17

7,893

7,893

Series 18

18,554

18,554

Series 19

      -

      -

 

$ 26,447

$ 26,447

 

During the nine months ended December 31, 2017 the Fund disposed of thirteen Operating Partnerships. A summary of the dispositions by Series for December 31, 2017 is as follows:

 

 

Operating
Partnership
Interest
Transferred

 

Sale of
Underlying
Operating
Partnership

 

Fund Proceeds
from
Disposition

 

Gain on
Disposition

Series 15

4

 

-

 

$

265,241

 

$

265,241

Series 16

4

 

-

   

187,294

   

187,294

Series 17

1

 

-

   

22,000

   

22,000

Series 18

-

 

1

   

508,704

   

508,704

Series 19

3

 

-

   

69,102

   

69,102

Total

12

 

1

 

$

1,052,341

 

$

1,052,341

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

 

During the nine months ended December 31, 2016 the Fund disposed of eight Operating Partnerships. A summary of the dispositions by Series for December 31, 2016 is as follows:

 

 

Operating
Partnership
Interest
Transferred

 

Sale of
Underlying
Operating
Partnership

 

Fund Proceeds
from
Disposition *

 

Gain on
Disposition

Series 15

1

 

-

 

$

16,000

 

$

16,000

Series 16

2

 

1

   

266,076

   

316,084

Series 17

4

 

-

   

70,478

   

70,478

Series 18

-

 

-

   

-

   

-

Series 19

-

 

-

   

-

   

-

Total

7

 

1

 

$

352,554

 

$

402,562

 

* Fund proceeds from disposition does not include $50,008 which was due to a writeoff of capital contribution payable in Series 16.

 

The gain described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Fund's investment in the Operating Partnership. As a result, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the condensed financial statements.

 

The Fund's fiscal year ends March 31st of each year, while all the Operating Partnerships' fiscal years are the calendar year.  Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnerships quarterly period.  Accordingly, the current financial results available for the Operating Partnerships are for the nine months ended September 30, 2017.

 


Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)


 

        2017

        2016

     

Revenues

   

   Rental

$  5,655,574

$  7,506,139

   Interest and other

    121,815

    147,012

     
 

  5,777,389

  7,653,151

     

Expenses

   

   Interest

693,138

932,548

   Depreciation and amortization

1,444,282

1,853,875

   Operating expenses

  4,529,324

  6,149,379

 


  6,666,744


  8,935,802

     

NET LOSS

$ (889,355)

$(1,282,651)

     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$ (880,461)



$(1,269,824)

     
     

Net loss allocated to other 
   Partners


$   (8,894)


$   (12,827)

     
     

 

 

* Amounts include $880,461 and $1,269,824 for 2017 and 2016, respectively, of loss not recognized under the equity method of accounting.

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 15

 

        2017

        2016

     

Revenues

   

   Rental

$  1,128,127

$  1,719,262

   Interest and other

     23,022

     37,981

     
 

  1,151,149

  1,757,243

     

Expenses

   

   Interest

133,480

229,928

   Depreciation and amortization

292,021

412,170

   Operating expenses

   857,944

  1,328,862

 


 1,283,445


 1,970,960

     

NET LOSS

$  (132,296)

$  (213,717)

     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$  (130,973)



$  (211,580)

     
     

Net loss allocated to other 
   Partners


$    (1,323)


$    (2,137)

     
     

 

 

* Amounts include $130,973 and $211,580 for 2017 and 2016, respectively, of loss not recognized under the equity method of accounting.

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,

(Unaudited)


Series 16

 

        2017

        2016

     

Revenues

   

   Rental

$  1,817,953

$  2,427,322

   Interest and other

     37,226

     37,327

     
 

  1,855,179

  2,464,649

     

Expenses

   

   Interest

211,069

294,740

   Depreciation and amortization

446,024

542,973

   Operating expenses

  1,413,222

  2,039,847

 


  2,070,315


  2,877,560

     

NET LOSS

$  (215,136)

$  (412,911)

     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$  (212,985)



$  (408,782)

     
     

Net loss allocated to other 
   Partners


$   (2,151)


$    (4,129)

     

 

* Amounts include $212,985 and $408,782 for 2017 and 2016, respectively, of loss not recognized under the equity method of accounting.

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,

(Unaudited))

 

 

Series 17

 

        2017

        2016

     

Revenues

   

   Rental

$   921,714

$  1,338,888

   Interest and other

     17,879

     22,541

     
 

  939,593

  1,361,429

     

Expenses

   

   Interest

89,771

138,838

   Depreciation and amortization

280,489

411,864

   Operating expenses

   699,083

  1,027,286

 


  1,069,343


  1,577,988

     

NET LOSS

$  (129,750)

$  (216,559)

     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$  (128,452)



$  (214,392)

     
     

Net loss allocated to other 
   Partners


$    (1,298)


$    (2,167)

 

     

 

* Amounts include $128,452 and $214,392 for 2017 and 2016, respectively, of loss not recognized under the equity method of accounting.

 

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 18

 

        2017

        2016

     

Revenues

   

   Rental

$   1,302,172

$   1,462,067

   Interest and other

      30,421

      32,276

     
 

   1,332,593

   1,494,343

     

Expenses

   

   Interest

208,309

201,956

   Depreciation and amortization

321,007

363,200

   Operating expenses

   1,132,647

   1,262,933

 


   1,661,963


   1,828,089

     

NET LOSS

$   (329,370)

$   (333,746)

     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$   (326,076)



$   (330,409)

     
     

Net loss allocated to other 
   Partners


$    (3,294)


$    (3,337)

 

 

* Amounts include $326,076 and $330,409 for 2017 and 2016, respectively, of loss not recognized under the equity method of accounting.

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 19

 

        2017

        2016

     

Revenues

   

   Rental

$    485,608

$    558,600

   Interest and other

     13,267

     16,887

     
 

    498,875

    575,487

     

Expenses

   

   Interest

50,509

67,086

   Depreciation and amortization

104,741

123,668

   Operating expenses

    426,428

    490,451

 


   581,678


   681,205

     

NET LOSS

$   (82,803)

$  (105,718)

     

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$   (81,975)



$  (104,661)

     
     

Net loss allocated to other 
   Partners


$     (828)


$    (1,057)

     

 

 

* Amounts include $81,975 and $104,661 for 2017 and 2016, respectively, of loss not recognized under the equity method of accounting.

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017
(Unaudited)


NOTE E - TAXABLE LOSS

The Fund's taxable loss for the calendar year ended December 31, 2017 is expected to differ from its loss for financial reporting purposes.  This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods.  

 

NOTE F - INCOME TAXES

 

The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Fund's federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions which must be considered for disclosure. Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2013 remain open.

 

NOTE G - SUBSEQUENT EVENTS

 

Subsequent to December 31, 2017, the Fund has entered into an agreement to transfer the interest in one operating limited partnership. The estimated transfer price and other terms for the disposition of the operating limited partnership have been determined. The estimated proceeds to be received for the operating limited partnership is $77,600. The estimated gain on the transfer of the operating limited partnership is $75,600 and is expected to be recognized in the fourth quarter of fiscal year ending March 31, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2017
(Unaudited)

 

 

NOTE H - Plan of Liquidation

 

On March 30, 2016, our General Partner recommended that the BAC holders approve a plan of liquidation and dissolution for the Partnership, or the "Plan." The Plan was approved by the BAC holders on June 1, 2016, and was adopted by the General Partner on June 1, 2016. Pursuant to the Plan, the General Partner would be able to, without further action by the BAC holders:

 

 

 

 

 

Since the approval of the Plan by the BAC holders, we have continued to seek to sell the assets of the Partnership and use the sale proceeds and/or other Partnership funds to pay all expenses in connection with such sales, pay or make provision for payment of all Partnership obligations and liabilities, including accrued fees, and unpaid loans to the General Partner, and distribute the remaining assets as set forth in the Partnership Agreement. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was June 1, 2016. However, because of numerous uncertainties, the liquidation may take longer or shorter than expected, and the final liquidating distributions, if any, may occur months after all of the apartment complexes of any given Series have been sold. As liquidation is not imminent, the Partnership will continue to report as a going concern.

 

For additional information regarding the sale of Partnership assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Annual Report on Form 10-K.

 

 

 

 

 

 

 

 

 

 

 

Item 2.  Management's Discussions and Analysis of Financial Condition and
Results of Operations


This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2017. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

 

Liquidity

The Fund's primary source of funds was the proceeds of its Public Offering.  Other sources of liquidity include (i) interest earned on capital contributions unpaid for the nine months ended December 31, 2017 or on working capital reserves, (ii) cash distributions from operations of the Operating Partnerships in which the Fund has invested and (iii) proceeds received from the dispositions of the Operating Partnership that are returned to fund reserves.  These sources of liquidity, along with the Fund's working capital reserve, are available to meet the obligations of the Partnership.  The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.

 

The Fund is currently accruing the fund management fee. Fund management fees accrued during the quarter ended December 31, 2017 were $82,044 and total fund management fees accrued as of December 31, 2017 were $15,350,216. During the three months ended December 31, 2017, $22,188 of accrued fund management fees were paid. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Fund receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund.  The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations of the Fund.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on January 24, 1992.  The Fund received $38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000 representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs from investors admitted as BAC Holders in Series 15, Series 16, Series 17, Series 18, and Series 19, respectively.  The Public Offering was completed on December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24, 1992.  Offers and sales of BACs in Series 15 were completed on September 26, 1992.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 68 Operating Partnerships in the amount of $28,257,701. Series 15 has since sold its interest in 59 of the Operating Partnerships.

 

During the quarter ended December 31, 2017, none of Series 15 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 15 has invested in as of December 31, 2017.

 

(Series 16)  The Fund commenced offering BACs in Series 16 on July 13, 1992. Offers and sales of BACs in Series 16 were completed on December 28, 1992. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 64 Operating Partnerships in the amount of $39,579,774. Series 16 has since sold its interest in 51 of the Operating Partnerships.

 

During the quarter ended December 31, 2017, none of Series 16 net offering proceeds were used to pay capital contributions.  No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 16 has invested in as of December 31, 2017.

 

(Series 17)  The Fund commenced offering BACs in Series 17 on January 24, 1993.  Offers and sales of BACs in Series 17 were completed on September 17, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 49 Operating Partnerships in the amount of $36,538,204. Series 17 has since sold its interest in 45 of the Operating Partnerships.

During the quarter ended December 31, 2017, none of Series 17 net offering proceeds were used to pay capital contributions.  Series 17 has contributions payable to 1 Operating Partnership in the amount of $7,893 as of December 31, 2017. The remaining contributions will be released to the Operating Partnership when it has achieved the conditions set forth in its partnership agreement.

 

(Series 18)  The Fund commenced offering BACs in Series 18 on September 17, 1993. Offers and sales of BACs in Series 18 were completed on September 22, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 34 Operating Partnerships in the amount of $26,442,202. Series 18 has since sold its interest in 23 of the Operating Partnerships.

During the quarter ended December 31, 2017, none of Series 18 net offering proceeds were used to pay capital contributions.  Series 18 has contributions payable to 2 Operating Partnerships in the amount of $18,554 as of December 31, 2017. The remaining contributions will be released to the Operating Partnerships when they have achieved the conditions set forth in their partnership agreements.

 

(Series 19) The Fund commenced offering BACs in Series 19 on October 8, 1993. Offers and sales of BACs in Series 19 were completed on December 17, 1993.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnerships in the amount of $29,614,506. Series 19 has since sold its interest in 23 of the Operating Partnerships.

During the quarter ended December 31, 2017, none of Series 19 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 19 has invested in as of December 31, 2017.

Results of Operations

As of December 31, 2017 and 2016, the Fund held limited partnership interests in 40 and 53 Operating Partnerships, respectively.  In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit.  Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy."  Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K.  The general partner of the Fund believes that there is adequate casualty insurance on the properties.

 

The Fund incurs a fund management fee to Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership), or BCAMLP, in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred and the reporting fees paid by the Operating Partnerships for the three and nine months ended December 31, 2017 are as follows:

 

 

3 Months
Gross Fund
Management Fee


3 Months
Reporting Fee

3 Months Fund
Management Fee
Net of Reporting Fee

Series 15

$ 12,936

$ -

$ 12,936

Series 16

24,663

-

24,663

Series 17

13,611

50,000

(36,389)

Series 18

22,257

20,050

2,207

Series 19

  8,577

    -

8,577

$ 82,044

$ 70,050

$ 11,994

       

 

 

 

9 Months
Gross Fund
Management Fee


9 Months
Reporting Fee

 

9 Months Fund
Management Fee
Net of Reporting Fee

Series 15

$ 48,142

$ 29,362

$ 18,780

Series 16

75,964

13,298

62,666

Series 17

40,833

55,097

(14,264)

Series 18

67,320

23,149

44,171

Series 19

 26,163

  750

25,413

$258,422

$ 121,656

$  136,766

 

The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest.  The Fund's investments in Operating Partnerships have been made principally with a view towards realization of federal housing tax credits for allocation to its partners and BAC holders.

 

Series 15

 

As of December 31, 2017 and 2016, the average Qualified Occupancy for the series was 100%.  The series had a total of 9 properties December 31, 2017, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2017 and 2016, Series 15 reflects a net loss from Operating Partnerships of $(132,296) and $(213,717), respectively, which includes depreciation and amortization of $292,021 and $412,170, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

Livingston Plaza, Limited (Livingston Plaza) is a 24-unit, family property located in Livingston, Texas. Due to low economic occupancy and a lack of qualified applicants the property operates at or just below breakeven. The operating general partner's operating deficit guarantee has expired. The operating general partner has informed the investment general partner that it is exploring various disposition strategies for this property. The investment general partner has concluded that these strategies would be consistent with the investment objectives of the investment partnership and that it is unlikely that any proceeds will be available for distribution to the investment limited partnership when disposition of the Operating Partnership occurs at some point in the future. The 15-year low income housing tax credit compliance period with respect to Livingston Plaza expired on December 31, 2008.

 

In December 2016, the investment general partner transferred its interest in Rio Mimbres II Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $696,452 and cash proceeds to the investment partnership of $18,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $16,000 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $16,000 as of December 31, 2016.

 

In May 2017, the investment general partner transferred its interest in Calexico Senior Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,716,118 and cash proceeds to the investment partnership of $111,786. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $109,786 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $109,786 as of June 30, 2017.

 

In August 2017, the investment general partner transferred its interest in University Meadows LDHA to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $2,306,546 and cash proceeds to the investment partnership of $140,000. Of the total proceeds received, $23,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $8,747 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $107,853 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $107,853 as of September 30, 2017.

 

In December 2017, the investment general partner transferred its interest in Chestnut Hill Estates, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $639,888 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Sunset Square Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $649,492 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

The investment general partner will continue to monitor the following Operating Partnership because of operational or other issues. However, this Operating Partnership has exited its LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Beckwood Manor Eight Limited Partnership

 

Series 16

 

As of December 31, 2017 and 2016, the average Qualified Occupancy for the series was 100%. The series had a total of 13 properties at December 31, 2017, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2017 and 2016, Series 16 reflects a net loss from Operating Partnerships of $(215,136) and $(412,911), respectively, which includes depreciation and amortization of $446,024 and $542,973, respectively. This is an interim period estimate; it is not indicative of the final year end results.

In June 2016, the investment general partner of Series 16 and Boston Capital Tax Credit Fund IV - Series 23 transferred their respective interests in Mid City Associates Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $4,890,361 and cash proceeds to the investment partnerships of $124,955 and $4,545, for Series 16 and Series 23, respectively. Of the total proceeds received, $27,340 and $995, for Series 16 and Series 23, respectively, was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $97,615 and $3,550, for Series 16 and Series 23, respectively, were returned to cash reserves. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $97,615 and $3,550, for Series 16 and Series 23, respectively, as of June 30, 2016. In addition, equity outstanding for the Operating Partnership in the amount of $50,008 for Series 16 was recorded as gain on the transfer of the Operating Partnership as of June 30, 2016.

 

In July 2016, the investment general partner transferred its interest in Stony Ground Villas, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,254,826 and cash proceeds to the investment partnership of $30,000. Of the total proceeds received, $3,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $27,000 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $27,000 as of September 30, 2016.

 

In September 2016, the investment general partner sold its interest in Idabel Properties, Limited Partnership to an entity affiliated with the operating general partner. The sales price of the property was $1,359,124, which included the outstanding mortgage balance of approximately $1,215,163 and cash proceeds to the investment partnership of $143,961. Of the total proceeds received by the investment partnership, $2,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $141,461 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $141,461 as of September 30, 2016.

 

In May 2017, the investment general partner transferred its interest in Mendota Village Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,728,506 and cash proceeds to the investment partnership of $82,083. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $80,083 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $80,083 as of June 30, 2017.

 

In May 2017, the investment general partner transferred its interest in Tuolumne City Investment Group II to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,406,018 and cash proceeds to the investment partnership of $46,850. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $44,850 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $44,850 as of June 30, 2017.

 

In December 2017, the investment general partner transferred its interest in Falcon Ridge Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $817,869 and cash proceeds to the investment partnership of $33,735. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $32,235 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $32,235 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Newport Manor, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $906,774 and cash proceeds to the investment partnership of $31,626. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $30,126 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $30,126 as of December 31, 2017

 

In January 2018, the investment general partner transferred its interest in Holly Tree Manor of Holly Hill, a Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $783,396 and cash proceeds to the investment partnership of $77,600. Of the total proceeds received, $2,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $75,600 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

 

The investment general partner will continue to monitor the following Operating Partnership because of operational or other issues. However, this Operating Partnership has exited its LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Anson Limited Partnership

Series 17

 

As of December 31, 2017 and 2016, the average Qualified Occupancy for the series was 100%.  The series had a total of 4 properties at December 31, 2017, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2017 and 2016, Series 17 reflects a net loss from Operating Partnerships of $(129,750) and $(216,559), respectively, which includes depreciation and amortization of $280,489 and $411,864, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In August 2016, the investment general partner transferred its interest in White Castle Senior Citizen Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $703,433 and cash proceeds to the investment partnership of $5,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $2,500 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $2,500 as of September 30, 2016.

 

In October 2016, the investment general partner transferred its interest in Waynesburg House LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,342,784 and cash proceeds to the investment partnership of $15,000. Of the total proceeds received, $4,522 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $10,478 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $10,478 as of December 31, 2016.

 

In December 2016, the investment general partner transferred its interest in Glenridge Housing Associates, a Washington Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,846,705 and cash proceeds to the investment partnership of $50,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $48,000 were returned to cash reserves held by Series 17 The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $48,000 as of December 31, 2016.

 

In December 2016, the investment general partner transferred its interest in Pinehurst Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $706,465 and cash proceeds to the investment partnership of $12,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $9,500 were returned to cash reserves held by Series 17 The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $9,500 as of December 31, 2016.

 

In December 2017, the investment general partner transferred its interest in Oakwood Manor of Bennettsville, A Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $771,031 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $2,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $22,000 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $22,000 as of December 31, 2017.

 

 

Series 18

 

As of December 31, 2017 and 2016 the average Qualified Occupancy for the series was 100%.  The series had a total of 11 properties at December 31, 2017, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2017 and 2016, Series 18 reflects a net loss from Operating Partnerships of $(329,370) and $(333,746), respectively, which includes depreciation and amortization of $321,007 and $363,200, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In December 2016, the operating general partner of Chelsea Square Development Limited Partnership entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on April 6, 2017. The sales price of the property was $1,150,000, which included the outstanding mortgage balance of approximately $301,393 and cash proceeds to the investment partnership of $513,204. Of the total proceeds received by the investment partnership, $4,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $508,704 were returned to cash reserves held by Series 18. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $508,704 as of June 30, 2017.

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Marengo Park Apartments, Limited Partnership

Humboldt I, Limited Partnership

Natchitoches Elderly Apartments, Limited Partnership

Series 19

 

As of December 31, 2017 and 2016 the average Qualified Occupancy for the series was 100%.  The series had a total of 3 properties at December 31, 2017, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2017 and 2016, Series 19 reflects a net loss from Operating Partnerships of $(82,803) and $(105,718), respectively, which includes depreciation and amortization of $104,741 and $123,668, respectively. This is an interim period estimate; it is not indicative of the final year end results.

In November 2017, the investment general partner transferred its interest in Independence Properties, Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $743,037 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $21,500 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $21,500 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Munford Village, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $702,560 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

In December 2017, the investment general partner transferred its interest in Sherwood Knoll, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $689,460 and cash proceeds to the investment partnership of $25,301. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,801 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,801 as of December 31, 2017.

 

Off Balance Sheet Arrangements

 

None.

 

Principal Accounting Policies and Estimates

 

The condensed financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the Fund to make various estimates and assumptions. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund's financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

 

The Fund is required to assess potential impairments to its long-lived assets, which are primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Fund does not control the operations of the Operating Partnerships. The purpose of an impairment analysis is to verify that the real estate investment balance reflected on the balance sheet does not exceed the value of the underlying investments.

 

If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership.

 

In accordance with the accounting guidance for the consolidation of variable interest entities, the Fund determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors.  A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE. 

 

Based on this guidance, the Operating Partnerships in which the Fund invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations.  However, management does not consolidate the Fund's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities.  The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Fund's balance in investment in Operating Partnerships plus advances made to Operating Partnerships represents its maximum exposure to loss.  The Fund's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the general partners and their guarantee against credit recapture to the investors of the Fund.

 

 

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

   
 

Not Applicable

 

Item 4.

Controls and Procedures

     
 

(a)

Evaluation of Disclosure Controls and Procedures

   

As of the end of the period covered by this report, the Fund's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc., carried out an evaluation of the effectiveness of the Fund's "disclosure controls and procedures" as defined under the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15 with respect to each series individually, as well as the Fund as a whole. Based on that evaluation, the Fund's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund's disclosure controls and procedures were effective to ensure that information relating to any series or the Fund as a whole required to be disclosed by it in the reports that it files or submits under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to the Fund's management, including the Fund's Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure with respect to each series individually, as well as the Fund as a whole.

     
 

(b)

Changes in Internal Controls

   

There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended December 31, 2017 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.

 

 

 

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

   
 

None

   

Item 1A.

Risk Factors

   
 

There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2017.

   

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

   
 

None

   

Item 3.

Defaults upon Senior Securities

   
 

None

   

Item 4.

Mine Safety Disclosures

   
 

Not Applicable

   

Item 5.

Other Information

   
 

None

   

Item 6.

Exhibits

   
 

(a)Exhibits

   
   

31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

   
   

31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

   
   

32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

     
   

32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

 

101. The following materials from the Boston Capital Tax Credit Fund III, L.P. Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2017 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Partners' Capital (Deficit), (iv) the Condensed Statements of Cash Flows and (v) related notes, filed herein

 

 

SIGNATURES



Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Fund has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Boston Capital Tax Credit Fund III L.P.

 

By:

Boston Capital Associates III L.P.

   

General Partner

 

By:

BCA Associates Limited Partnership,

   

General Partner

 

By:

C&M Management Inc.,

   

General Partner

Date: February 13, 2018

By:

/s/ John P. Manning

     
   

John P. Manning




Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated:

DATE:

SIGNATURE:

TITLE:

     

February 13, 2018

/s/ John P. Manning

Director, President
(Principal Executive
Officer) C&M Management
Inc.; Director,
President (Principal
Executive Officer)
BCTC III Assignor Corp.

   
 

John P. Manning

   
   
   
   


DATE:

SIGNATURE:

TITLE:

     

February 13, 2018

/s/ Marc N. Teal

Director, President
(Principal Executive
Officer) C&M Management
Inc.; Director,
President (Principal
Executive Officer)
BCTC III Assignor Corp.

   
 

Marc N. Teal