**Exhibit 99.A**

 

**Independent Auditor’s Report**

 

To thePartners

BennettsPointe Limited Partnership

 

I have auditedthe accompanying balance sheets of Bennetts Pointe Limited Partnership as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’deficit and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates, and the U.S. Department of Agriculture, Farmers Home AdministrationAudit Program Those standards require that I plan and perform the audits toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. I believe that my audits provide a reasonable basis formy opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Bennetts Pointe Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ deficit, and its cash flows for the years then ended in conformitywith generally accepted accounting principles.

 

In accordancewith *GovernmentAuditing Standards,*I have also issued my report dated February 15,2002 on my consideration of Bennetts Pointe Limited Partnership’s internalcontrol over financial reporting and on my tests of its compliance with certainprovisions of’ laws and regulations.

 

February 15,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

ClarksvilleEstates

DBAClarksville Estates

Clarkton, MO63837

 

We haveaudited the accompanying balance sheet of Clarksville Estates (a limitedpartnership) DBA Clarksville Estates as of December 31, 2001 and the relatedstatements of income, cash flow, and partners’ equity for the year then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Clarksville Estates (a limitedpartnership) DBA Clarksville Estates as of December 31, 2001 and the results ofits operations and its cash flow for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audit wasperformed for the purpose of forming an opinion on the basic financialstatements of Clarksville Estates taken as a whole. The supplementary dataincluded on pages 12-13 is not necessary for a fair presentation of thefinancial statements, but is presented for purposes of additional analysis.This supplementary data has been subjected to the same tests and otherprocedures applied in the audits of the statements mentioned above, and in ouropinion, is fairly presented in all material respects in relation to thefinancial statements taken as a whole.

 

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In accordancewith Government Auditing Standards, we have also issued our report datedFebruary 1, 2002, on our consideration of Clarksville Estates internal controlover financial reporting and our tests of its compliance with certainprovisions of laws and regulations. The report is an integral part of an auditperformed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of our audit.

 

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IndependentAuditors’ Report

 

To thepartners of

East DouglasApartments Limited Partnership (An Illinois Limited Partnership)

 

We haveaudited the accompanying balance sheets of East Douglas Apartments Limited(IHDA Development Number HFI/HTF-354), as of December 31, 2001 and 2000, andthe related statements of operations, cash flows and changes in partners’equity for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America, *Government Auditing Standards,*issued bythe Comptroller General of the United States and the Illinois HousingDevelopment Authority’s Financial Reporting and Audit Guidelines for Mortgagorsof Multifamily Hosing Developments. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of East Douglas Apartments LimitedPartnership as of December 31, 2001 and 2000, and the results of its operationsand its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*the Illinois Housing Development Authority’sFinancial Reporting and Audit Guidelines for Mortgagors of Multifamily HousingDevelopments and the Consolidated Audit Guide for Audits of HUD Programs issuedby the U.S. Department of Housing and Urban Development, we have also issued areport dated January 29, 2002, on our consideration of the Partnership’sinternal controls, compliance with specific requirements applicable to majorIHDA-assisted programs and specific requirements applicable to affirmative fairhousing.

 

Theaccompanying supplementary information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the financial statements taken as a whole.

 

January 29,2002

Carmel,Indiana

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

FLORAL ACRESAPARTMENTS II

 

We haveaudited the accompanying balance sheets of FLORAL ACRES APARTMENTS II, RHSPROJECT NO. 22-026-721172913 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of FLORAL ACRES APARTMENTS II as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 16through 24, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 18,2002 on our consideration of FLORAL ACRES APARTMENTS II’s internal control anda report dated February 18, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 18,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

HARRISONBURGSENIORS APARTMENTS

 

We haveaudited the accompanying balance sheets of HARRISONBURG SENIORS APARTMENTS, RHSPROJECT NO. 22-013-721199864 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of HARRISONBURG SENIORS APARTMENTS asof December 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 16through 24, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 29,2002 on our consideration of HARRISONBURG SENIORS APARTMENTS’s internal controland a report dated January 29, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

January 29,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

SHADY LANESENIORS APARTMENTS

 

We haveaudited the accompanying balance sheets of SHADY LANE SENIORS APARTMENTS, RHSPROJECT NO. 22-064-721100471 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of SHADY LANE SENIORS APARTMENTS asof December 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 17through 25, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 18,2002 on our consideration of SHADY LANE SENIORS APARTMENTS’s internal controland a report dated February 18, 2002 on its compliance with laws andregulations applicable to the financial statements.

 

Metairie, Louisiana

February 18,2002

 

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Independent Auditors’ Report

 

To thePartners of

Better Homesfor Havelock Limited Partnership

(A NorthCarolina Limited Partnership)

 

We haveaudited the accompanying balance sheets of Better Homes for Havelock LimitedPartnership (a North Carolina Limited Partnership) as of December 31, 2001 and2000, and the related statements of operations, changes in partners’ equity(deficit), and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Better Homes for Havelock LimitedPartnership as of December 31, 2001 and 2000, and the results of its operationsand its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated January 24, 2002, on our consideration of thePartnership’s internal controls and a report dated January 24, 2001, on itscompliance with laws and regulations.

 

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Theaccompanying supplementary information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the financial statements taken as a whole.

 

January 24,2002

Carmel,Indiana

 

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**Independent Auditor’s Report**

 

To thePartners

LiveoakVillage Limited Partnership

Charlotte,North Carolina

 

We have auditedthe accompanying balance sheets of Liveoak Village Limited Partnership (anAlabama limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in*GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audits to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Liveoak Village LimitedPartnership as of December 31, 2001 and 2000, and the results of its operationsand its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

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Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the table ofcontents is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements of the Partnership. Such information hasbeen subjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To****thePartners

Lookout RidgeLimited Partnership

 

We haveaudited the accompanying balance sheet of Lookout Ridge Limited Partnership asof December 31, 2001, and the related statements of operations, partners’equity (deficit) and cash flows for the year then ended. These financialstatements are the re­sponsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of mate­rial misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Lookout Ridge Limited Partnership as ofDecember 31, 2001, and the results of its operations, the changes in partners’equity and cash flows for the year then ended in conformity with accountingprinciples generally ac­cepted in the United States of America.

 

Our audit was made for the purpose of formingan opinion on the basic financial state­ments taken as a whole. Thesupplemental information on page 9 is presented for pur­poses of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statement and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Ft. Wright,Kentucky

February 22,2002

 

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IndependentAuditor’s Report

 

To thePartners

Pinedale IILimited Partnership

 

We haveaudited the accompanying balance sheets of*Pinedale II Limited Partnership*as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position *of Pinedale II Limited Partnership,*as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity, and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information on page 12 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

January 11,2002

 

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IndependentAuditor’s Report

 

To****thePartners

PumphouseCrossing II Limited Partnership

 

We have auditedthe accompanying balance sheets of *Pumphouse Crossing II Limited Partnership*asof December 31, 2001 and 2000, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position *of Pumphouse Crossing II Limited Partnership,*asof December 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity, and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplementary information on page 12 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

January 15,2002

 

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IndependentAuditor’s Report

 

To thePartners

Black RiverRun Limited Partnership

 

We haveaudited the accompanying balance sheets *of Black River Run Limited Partnership*asof December 31, 2001 and 2000, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position *of Black River Run Limited Partnership,*asof December 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity, and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information on page 12 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

January 11,2002

 

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INDEPENDENTAUDITORS’ REPORT 

 

February 15,2002

 

To thePartners

Elk TowerApartments Limited Partnership

 

We haveaudited the accompanying balance sheets of Elk Tower Apartments LimitedPartnership as of December 31, 2001 and 2000, and the related starts ofoperations, partners’ equity (deficit) and cash flows for the years then ended,these financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial starts. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Elk Tower Apartments LimitedPartnership as of December 31, 2001 and 2000, and the results of itsoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended, in conformity with generally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 11 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial starts and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Philadelphia Housing II,Limited Partnership

Philadelphia, Mississippi

 

We haveaudited the accompanying balance sheets of Philadelphia Housing II, LimitedPartnership (a Mississippi limited partnership), RHS Project No.28-050-640808922 as of December 31, 2001 and 2000, and the related statementsof operations, partners’ capital (deficit) and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Philadelphia Housing II, LimitedPartnership as of December 31, 2001 and 2000, and the results of its operationsand its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our auditswere made for the purposes of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. We have prepared the Multiple Family Housing BorrowerBalance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing ProjectBudget (RHS Form RD 1930-7). Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

January 24,2002

 

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Independent’sAuditor’s Report

To thePartner’s of

RoxburyVeterans Housing Limited Partnership

 

 

I have auditedthe accompany statement of financial position of Roxbury Veterans HousingLimited Partnership( a Massachusetts Limited Partnership) as of December 31,2001, and the related statements of operations, changes in partners’ equity,and cash flows for the year then ended, These financial statements are theresponsibility of the Partnership’s management management. My responsibility isto express an opinion on these financial statements based on my audit.

 

I conducted myaudit in accordance with generally accepted auditing standards. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financials statements are free of material misstatement. An auditincludes examining, on a test bash, evidence supporting the amounts anddisclosures in the financial statements. An audit includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. I believe thatmy audit provides a reasonable basis for my opinion.

 

In my opinion,the financial statements referred to above presents fairly, in all materialrespects, the financial position of Roxbury Veterans Housing LimitedPartnership as of December 31, 200 I, and the results of its operations,changes in partners’ equity, and cash flows and cash flows for the year endedin conformity with accounting principles generally accepted in the UnitedStates.

 

My audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The accompanying schedule of operating expenses is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly state in all material respects in relation to the basicfinancial statements taken as a whole. The financial statements for the yearended June 30, 2000 were audited by other accountants, and they expressed anunqualified opinion on them in their report dated June 15, 2001.

 

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To thepartners of

SwedesboroHousing Limited Partnership

443 CongressStreet, 7th Floor

Portland,Maine 04101

 

We haveaudited the accompanying Balance sheet of SWEDESBORO HOUSING LIMITED PARTNERSHIP, as of December 31, 2001 and therelated Statements of  Income andPartners’ Capital and Statement of Cash Flows for the year then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit, The financial statements of SWEDESBORO HOUSING LIMITEDPARTNERSHIP as of December 31, 2000 were audited by other auditors whose reportdated January 9, 2001 expressed an unqualified opinion on these statements.

 

We conductedout audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement, An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of SWEDESBORO HOUSING LIMITED PARTNERSHIP at December 31, 2001 and  the results of its operations and its cashflow for the year then ended, in conformity with accounting principlesgenerally accepted in the United  Statesof America.

 

In accordancewith Government Auditing Standards, we have also issued a report dated April29, 2002, on our consideration of SWEDESBOR0 HOUSING LIMITED PARTNERSHIPinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

Thesupplementary information is presented in this report for purposes ofadditional analysis and, although not required for a fair presentation offinancial position, results of operations and cash flows, was subjected to theaudit procedures applied in the audit of the basic financial statements. In ouropinion, the accompanying supplementary information is fairly stated in allmaterial respects in conjunction with those statements.

 

April 29, 2002

Haddonfield, New Jersey

 

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IndependentAuditors’ Report

 

To thePartners

BarleeProperties,

An ArkansasLimited Partnership

Barling,Arkansas

 

We haveaudited the accompanying balance sheets of Barlee Properties, An ArkansasLimited Partnership, as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ capital and cash flows for theyears then ended These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Barlee Properties, An ArkansasLimited Partnership, as of December 31, 2001 and 2000, and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Lawrence,Schluterman & Schwartz, Ltd.

CertifiedPublic Accountants

Fort Smith,Arkansas

February 28,2002

 

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**Report of Independent Accountants**

 

Partners

ColonnaRedevelopment Company L.P.

Hempstead, NewYork

 

We have audited theaccompanying balance sheets of Colonna Redevelopment Company L.P. (a New Yorklimited partnership) (the “Partnership”) as of December 31, 2001 and 2000 andthe related statements of operations, cash flows and partners’ equity for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Colonna Redevelopment Company L.P.as of December 31, 2001 and 2000, and the results of its operations and itscash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 12 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

May 13, 2002

 

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INDEPENDENTAUDITOR’ S REPORT

 

To thePartners

Halls FerryApartments, L.P.

 

We haveaudited the accompanying balance sheets of Halls Ferry Apartments, L.P. as ofDecember 31, 2001 and 2000 and the related statements of operations, partners’equity and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America.  Thosestandards require that we plan and perform the audits to obtain reasonableassurance about whether the financial, statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable oasis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Halls Ferry Apartments, L.P. as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 15 and 16 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Mechsner &Cp., L.L.C.

CertifiedPublic Accountants

Springfield,Missouri

February 4,2002

 

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**Independent Auditors’ Report**

 

Partners

Ithaca ILimited Partnership

Ithaca,Michigan

 

We haveaudited the accompanying balance sheets of Ithaca I Limited Partnership RuralHousing Service Project No. 26-029-383113117 as of December 31, 2001 and 2000,and the related statements of income, partners’ equity and cash flows for theyears ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Ithaca I Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartner’s equity and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 19,2002 on our consideration of Ithaca I Limited Partnership’s internal controlover financial reporting and our tests of compliance with certain provisions oflaws and regulations, contracts and grants. That report is an integral part ofan audit performed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information presented on pages11 through 19 is presented for purposes of complying with the requirements ofRural Housing Service and is not a required part of the basic financialstatements. Such information has been subjected to the audit procedures appliedin the audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statements takenas a whole.

 

CERTIFIEDPUBLIC ACCOUNTANTS

February 19,2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners of

Kimbark 1200Associates, Limited Partnership

Longmont,Colorado

 

We haveaudited the accompanying balance sheet of Kimbark 1200 Associates, LimitedPartnership, FHA Project No. 101-98011, as of December 31, 2001, and therelated statement of operations, changes in partners’ equity and cash flows forthe year then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conductedour audit in accordance with generally accepted auditing standards and GovernmentAuditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Kimbark 1200 Associates, LimitedPartnership FHA Project No. 101-98011, as of December 31, 2001, and the resultsof its operations and the changes in its partners’ equity and its cash flowsfor the year then ended, in conformity with generally accepted accountingprinciples.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 13, 2002 on our consideration of Kimbark 1200 Associates, Limitedpartnership, internal controls and reports dated February 13, 2002 on itscompliance with specific requirements applicable to major HUD programs and FairHousing and Non-Discrimination.

 

Denver,Colorado

February 13,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

MATHISAPARTMENTS, LTD.

 

We haveaudited the accompanying balance sheets of MATHIS APARTMENTS, LTD., RHS PROJECTNO. 51-005-721010606 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of MATHIS APARTMENTS, LTD. as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information presented on pages 16 through24, is presented for purposes of additional analysis and is not a required partof the basic financial statements. Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements and,in our opinion, is fairly stated in all material respects in relation to thebasic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 13,2002 on our consideration of MATHIS APARTMENTS, LTD.’s internal control and areport dated February 13, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 13, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****thePartners

ORANGE GROVESENIORS APARTMENTS, LTD.

 

We haveaudited the accompanying balance sheets of ORANGE GROVE SENIORS APARTMENTS,LTD., RHS PROJECT NO. 50-025-742670408 as of December 31, 2001 and 2000 and therelated statements of operations, changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of ORANGE GROVE SENIORS APARTMENTS,LTD. as of December 31, 2001 and 2000 and the results of its operations,changes in partners’ equity and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 17through 25, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 18,2002on our consideration of ORANGE GROVE SENIORS APARTMENTS, LTD.’s internalcontrol and a report dated February 18, 2002 on its compliance with laws andregulations applicable to the financial statements.

 

Metairie,Louisiana

February 18, 2002

 

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To ThePartners

Sacramento SROLimited Partnership

A CaliforniaLimited Partnership

710 West Ivy

San Diego, CA92101

 

**Independent Auditor’s Report**

 

We haveaudited the accompanying balance sheets of Sacramento SRO Limited Partnership,A California Limited Partnership, as of December 31, 2001 and 2000, and therelated statements of operations and partners’ capital and statements of cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the mounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Sacramento SRO LimitedPartnership, A California Limited Partnership as of December 31, 2001 and 2000,and the results of its operations and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CONSIDINE& CONSIDINE

An AccountancyCorporation

January 31,2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

South HillsApartments, L.P.

 

We haveaudited the accompanying balance sheets of south Hills Apartments, L.P. as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’equity and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation,we believe that our audits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of South Hills Apartments, L.P. as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 14 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements, such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Goracke,Ritterbush & Piotrowski, L.L.P.

 

January 18,2002

 

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IndependentAuditors’ Report

 

To thePartners:

Village Woods Estates, L.P.

 

We haveaudited the accompanying balance sheets of Village Woods Estates, L.P. as ofDecember 31, 2001 and 2000, and the related statements of operations, changesin partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Village Woods Estates, L.P. as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity, and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

January 29,2002

 

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IndependentAuditors’ Report

 

To thePartners

Woodland HillsProperties,

A LimitedPartnership

Barling,Arkansas

 

We haveaudited the accompanying balance sheets of Woodland Hills Properties, A LimitedPartnership, as of December 31, 2001 and 2000, and the related statements ofoperations, changes in partners’ capital and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Woodland Hills Properties, ALimited Partnership, as of December 31, 2001 and 2000, and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Lawrence,Schlutennan & Schwartz, Ltd.

Certified PublicAccountants

Fort Smith,Arkansas

February 28,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To ThePartners

Autumn RidgeAssociates

Roanoke,Virginia

 

We haveaudited the accompanying balance sheet of Autumn Ridge Associates (A VirginiaLimited Partnership) as of December 31, 2001 and 2000 and the related statementof operations and partners’ equity (deficit) and cash flow for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards issued by theComptroller General of the United States. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Autumn Ridge Associates as ofDecember 31, 2001 and 2000, and the results of its operation and its cash flowfor the year then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on pages 14 through 17 ispresented for the purpose of additional analysis and is not a required part ofthe basic financial statements. Such information has been subjected to theaudit procedures applied in the audit of the basic financial statements and, inour opinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 14,2002

 

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To thePartners

BrownsvilleAssociates, Limited

 

We haveaudited the accompanying balance sheets of Brownsville Associates, Limited (aTennessee limited partnership) d/b/a Brownsville Village Apartments, RHSProject No.: 48-038-621467876, as of December 31, 2001 and 2000, and therelated statements of operations, partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Brownsville Associates, Limited (aTennessee limited partnership) d/b/a Brownsville Village Apartments, RHSProject No.: 48-038-621467876, as of December 31, 2001 and 2000, and theresults of its operations, the changes in partners’ equity and its cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 30,2002 on our consideration of Brownsville Associates, Limited’s internal controlover financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 12 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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**Independent Auditors’ Report**

 

To The Partners

CentenaryHousing Limited Partnership

St. Louis,Missouri

 

We haveaudited the accompanying balance sheet of Centenary Housing Limited Partnership(Centenary Towers Apartments, Project No. 085-35239-PM-SR-PR-WAH-L8) as ofDecember 31, 2001, and the related statements of profit and loss, partners’equity and cash flows for the year then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Centenary Housing Limited Partnership as ofDecember 31, 2001, and the results of its operations and its cash flows for theyear then ended in conformity with accounting principles generally accepted inthe United States of America.

 

In accordancewith *GovernmentAuditing Standards*and the *Consolidated Audit Guide for Audits of HUD Programs*issuedby the U.S. Department of Housing and Urban Development, we have also issued areport dated January 16, 2002 on our consideration of Centenary Housing LimitedPartnership’s internal control and reports dated January 16, 2002 on itscompliance with specific requirements applicable to major HUD programs andspecific requirements applicable to Fair Housing and Non-Discrimination. Thosereports are an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

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Our audit wasconducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying supplementary information shownon pages 16 to 19 is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

January 16,2002

 

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INDEPENDENTACCOUNTANTS’ REPORT

 

To thePartners

New HilltopApartments, A Limited Partnership

Columbia,South Carolina

 

We have audited the accompanying balancesheets of New Hilltop Apartments, A Limited Partnership (A South CarolinaLimited Partnership), as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of New Hilltop Apartments, A LimitedPartnership, as of December 31, 2001 and 2000, and the results of itsoperations and its cash flows for the years then ended, in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 24,2002 on our consideration of New Hilltop Apartments, A Limited Partnership’sinternal control over financial reporting and on our tests of its compliancewith certain provisions of laws, regulations, contracts and grants. That reportis an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

January 24,2002

 

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IndependentAuditors’ Report

 

Partners

ShadowcreekApartments

Elko, Nevada

 

We haveaudited the accompanying balance sheets of Shadowcreek Apartments (theProject), Rural Development Case No. 33-002-0880283493, as of December 31, 2001and 2000 and the related statements of operations, changes in partners’ equityand cash flows for the years then ended. These financial statements are theresponsibility of the Project’s management. Our responsibility is to express anopinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and with *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of the Project as of December 31,2001 and 2000 and the results of its operations, changes in partners’ equity,and cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 10 through12 is presented for the purpose of additional analysis and is not a requiredpart of the basic financial statements of the Project for the year endedDecember 31, 2001. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly presented in all material respects in relation to thefinancial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have issued a report dated January 23, 2002,on our consideration of the Project’s internal control over financial reportingand over tests of its compliance with laws, regulations, contracts and grants.This report is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

Kaysville,Utah

January 23,2002

 

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To thePartners

StantonAssociates, Limited

 

We haveaudited the accompanying balance sheets of Stanton Associates, Limited (aTennessee limited partnership) d/b/a Stanton Village Apartments, RHS ProjectNo.: 48-038-621542356, as of December 31, 2001 and 2000, and. the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Stanton Associates;, Limited (aTennessee limited partnership) d/b/a Stanton Village Apartments, RHS ProjectNo.: 48-038-621542356, as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ equity and its cash flows for the yearsthen ended, in conformity with accounting principles generally accepted in theUnited States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 30,2002 on our consideration of Stanton Associates, Limited’s internal controlover financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants.

 

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Our auditswere made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on page 12 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Columbia,Tennessee

January 30,2002

 

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INDEPENDENTAUDITOR’ S REPORT

 

To thePartners

Pahrump ValleyInvestors

(A WyomingLimited Partnership)

Cheyenne, WY

 

I have audited the accompanyingbalance sheets of Pahrump Valley Investors (A Wyoming Limited Partnership),USDA Rural Development Case No. 33-019-680204949, as of December 31, 2001 and2000, and the related statements of income, partners’ equity, and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnerships management. My responsibility is to express an opinion onthese financial statements based on my audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates. Those standards require that I plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management as well as evaluating the overall financialstatement presentation. I believe that my audits provide a reasonable basis formy opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Pahrump Valley Investors (A Wyoming LimitedPartnership) as of December 31, 2001 and 2000, and the results of itsoperations and its cash flows for the years then ended, in conformity withgenerally accepted accounting principles.

 

In accordancewith G*overnmentAuditing Standards,*I have also issued a report dated March 11, 2002on my consideration of Pahrump Valley Investors’ internal control structure anda report dated March 11, 2002 on its compliance with laws and regulations.

 

Stockton,California

March 11, 2002

 

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IndependentAuditors’ Report

 

To thePartners

WoodlandsApartments

Elko, Nevada

 

We have audited the accompanying balancesheets of Woodlands Apartments (the Project), Rural Development Case No.33-004-0880314570, as of December 31, 2001 and 2000 and the related statementsof operations, changes in Partners’ equity and cash flows for the years thenended. These financial statements are the responsibility of the Project’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and with *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of the Project as of December 31, 2001 and 2000 and the results of itsoperations, changes in partners equity, and cash flows for the years thenended, in conformity with accounting principles generally accepted in theUnited States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have issued a report dated January 23, 2002,on our consideration of the Woodlands Apartments’ internal control overfinancial reporting and over tests of its compliance with laws, regulations,contracts and grants. This report is an integral part of an audit performed inaccordance with *Government Auditing Standards*and should be read inconjunction with this report in considering the results of our audit.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 11 through13, is presented for the purpose of additional analysis and is not a requiredpart of the basic financial statements of the Project for the year endedDecember 31, 2001. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly presented in all material respects in relation to thefinancial statements taken as a whole.

 

Kaysville,Utah

January 23, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

ZWOLLEPARTNERSHIP

 

We have audited the accompanying balance sheets of ZWOLLE PARTNERSHIP,RHS PROJECT NO. 22-043-721260425 as of December 31, 2001 and 2000 and therelated statements of operations, changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of ZWOLLE PARTNERSHIP as of December31, 2001 and 2000 and the results of its operations, changes in partners’equity and cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 16through 24, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 18,2002 on our consideration of ZWOLLE PARTNERSHIP’s internal control and a reportdated February 18, 2002 on its compliance with laws and regulations applicableto the financial statements.

 

Metairie,Louisiana

February 18,2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

352 Lenox Associates, L.P.

 

We haveaudited the accompanying balance sheet of 352 Lenox Associates, L.P. as ofDecember 31, 2001, and the related statements of operations, changes inpartners’ equity and cash flows for the year then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of 352 Lenox Associates, L.P. as ofDecember 31, 2001, and the results of its operations, the changes in partners’equity and cash flows for the year then ended, in conformity with accountingprinciples generally accepted in the United States of America.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on page 13 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 13,2002

 

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The Partners

Ethel Housing,L.P.

Ethel,Mississippi

 

We haveaudited the accompanying balance sheets of Ethel Housing, L.P., RD Case No.28-0040640823417 as of December 31, 2001, and 2000, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards,*issued by the comptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit included examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also included assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provided areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Ethel Housing, L.P., as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordancewith Government Auditing Standards and the Audit Program issued by the UnitedStates Department of Agriculture, Rural Development, we have also issued areport dated February 22, 2002, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our auditswere made for the purpose of forming an opinion on the financial statementstaken as a whole. The supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements of Ethel Housing, L.P. Such information, except forthe current budget and proposed budget columns on pages 15 through 18, on whichwe express no opinion, is fairly stated in ail material respects in relation tothe financial statements taken as a whole.

 

February 22,2002

 

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INDEPENDENT AUDITORS’ REPORT

 

To thepartners

HurricaneHills I LC

 

I have auditedthe accompanying balance sheets of Hurricane Hills LC as of December 31, 2001,and the related statements of operations, partners’ equity and cash flows forthe year then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

I conducted myaudit in accordance with generally accepted auditing standards. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examination, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management as wellas evaluating the overall financial statement presentation. We believe that ouraudits provided a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Hurricane Hills I LC as ofDecember 31, 2001, and the results of its operations, changes in Partners’equity and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

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INDEPENDENTAUDITOR’S REPORT

 

To: ThePartners

Main EverettHousing Limited Partnership

 

We haveaudited the accompanying balance sheets of Main Everett Housing LimitedPartnership as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conductedour audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Main Everett Housing LimitedPartnership as of December 31, 2001 and 2000, and the results of itsoperations, changes in partners’ equity, and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 11 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in our opinion,is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

Tobin &Company, CPA’s

 

January 18,2002

 

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To thePartners

M.R.H., L.P.

 

We haveaudited the accompanying balance sheets of M.R.H., L.P. as of December 31, 2001and 2000, and the related statements of operations, partners’ equity and cashflows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of M.R.H., L.P. as of December 31,2001 and 2000, and the results of its operations, changes in partners’ equityand cash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

January 25,2002

 

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**INDEPENDENT AUDITORS ‘ REPORT**

 

To thePartners

WashingtonArms Apartments

(A LimitedPartnership)

Dayton, Ohio

 

We have audited the accompanying balance sheet of HUD Project #046-NI093of Washington Arms Apartments (a limited partnership) as of December 31, 2001and the related statements of profit and loss, changes in deficiency inpartners’ capital and cash flows for the year ended December 31, 2001. Thesefinancial statements are the responsibility of the Project’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America, *Government Auditing Standards*issued bythe Comptroller General of the United States, and Consolidated Audit Guidefor Audits of HUD Programs (the “Guide”) issued by the U. S. Department ofHousing and Urban Development, Office of Inspector General in August 1997. Thosestandards and the Guide require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of HUD project #046-NI093 as ofDecember 31, 2001 and the results of its operations and its cash flows and itschanges in deficiency in partners’ capital for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated January 23, 2002 on ourconsideration of Washington Arms Apartments’ internal controls and a reportdated January 23, 2002 on its compliance with laws and regulations. Thosereports are an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

Our audit wasmade for the purpose of forming an opinion on the financial statements taken asa whole. The additional information included in the report shown on pages 12-16is presented for the purposes of additional analysis and is not a required partof the financial statements of HUD Project #046-NI093. Such information hasbeen subjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

Waite, Schultz & Associates, Ltd.

CertifiedPublic Accountants

Cincinnati,Ohio

January 23,2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To: ThePartners

OsborneHousing Limited Partnership

 

We haveaudited the accompanying balance sheets of Osborne Housing Limited Partnershipas of December 31, 2001 and 2000, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conductedour audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Osborne Housing LimitedPartnership as of December 31, 2001 and 2000, and the results of itsoperations, changes in partners’ equity, and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 11 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Tobin &Company, CPA’s

 

January 18,2001

 

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To thePartners

SandstoneVillage Limited Partnership

Great Falls,Montana

 

INDEPENDENTAUDITORS’ REPORT

 

We haveaudited the accompanying balance sheets of Sandstone Village LimitedPartnership as of December 31, 2001 and 2000 and the related statements ofoperations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Sandstone Village Limited Partnershipas of December 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 14 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in thc audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Great Falls,Montana

February 8,2002

 

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The Partners

ShannonHousing, L.P.

Shannon,Mississippi

 

We haveaudited the accompanying balance sheets of Shannon Housing, L.P., RD Case No.28-041064835658, as of December 31, 2001, and 2000, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted ouraudits in accordance with generally accepted auditing standards and GovernmentAuditing Standards, issued by the comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit included examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includedassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provided a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Shannon Housing, L.P., as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordancewith Government Auditing Standards and the Audit Program issued by the UnitedStates Department of Agriculture, Rural Development, we have also issued areport dated March 16, 2002, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our auditswere made for the purpose of forming an opinion on the financial statementstaken as a whole. The supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements of Shannon Housing, L.P. Such information, except forthe current budget and proposed budget columns on pages 15 through 18, on whichwe express no opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

March 16, 2002

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To thePartners of

Sutton PlaceApartments

(A LimitedPartnership)

Cincinnati,Ohio

 

We haveaudited the accompanying balance sheet of HUD Project #073-55035, 073-55037,073-55038, 073-55061 and 073-55062 of Sutton Place Apartments (a limitedpartnership) as of December 31, 2001, and the related statements of profit andloss, changes in deficiency in partners’ capital and cash flows for the year thenended. These financial statements are the responsibility of the Project’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America, *Government Auditing Standards*issued bythe Comptroller General of the United States, and Consolidated Audit Guidefor Audits of HUD Programs (the “Guide”) issued by the U. S. Department ofHousing and Urban Development, Office of Inspector General in August 1997.Those standards and the Guide require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of HUD Project #073-55035, 073-55037,073-55038, 073-55061 and 073-55062 as of December 31, 2001 and the results ofits operations and its cash flows and its changes in deficiency in partners’capital for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith Government Auditing Standards, we have also issued a report dated January23, 2002 on our consideration of Sutton Place Apartments’ internal control anda report dated January 23, 2002 on its compliance with laws and regulations.

 

We wereengaged to conduct an audit for the purpose of forming an opinion on thefinancial statements taken as a whole. The additional information included inthe report shown on pages 13-19 is presented for the purposes of additionalanalysis and is not a required part of the financial statements of HUD Project#073-55035, 073-55037, 073-55038, 073-55061 and 073-55062. Such information hasbeen subjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

Waite, Schultz & Associates, Ltd.

CertifiedPublic Accountants

Cincinnati,Ohio

January 23,2002

 

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The Partners

West PointHousing, L.P.

West Point,Mississippi

 

We haveaudited the accompanying balance sheets of West Point Housing, L.P., RD CaseNo. 28-013-0640834734, as of December 31, 2001, and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards,*issued by the comptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit included examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also included assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provided areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of West Point Housing, L.P., as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordancewith *GovernmentAuditing Standards*and the Audit Program issued by the United StatesDepartment of Agriculture, Rural Development, we have also issued a reportdated February 25, 2002, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our auditswere made for the purpose of forming an opinion on the financial statementstaken as a whole. The supporting data included on pages 12 through 19 are presentedfor purposes of additional analysis and are not a required part of thefinancial statements of West Point Housing, L.P. Such information, except forthe current budget and proposed budget columns on pages 15 through 18, on whichwe express no opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

February 25,2002

 

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners

200 EastAvenue Associates, L.P.

 

We haveaudited the accompanying balance sheet of 200 East Avenue Associates, L.P. (alimited partnership) as of December 31,2001 and 2000 and the related statementsof operations and partners’ capital (deficit) and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of 200 East Avenue Associates, L.P.as of December 31, 2001 and 2000, and the results of its operations and itscash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Salmin,Celona, Wehrle & Flaherty, LLP

 

February 11,2002

 

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IndependentAuditor’s Report

 

To****thePartners

A.V.A. LimitedPartnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of A.V.A. Limited Partnership (aVirginia limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of A.V.A. Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

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Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

Beckwood ManorOne Limited Partnership

 

We haveaudited the accompanying balance sheets of Beckwood Manor One LimitedPartnership, RD Project No. 03-025-710677259 (the Partnership), as of December31, 2001 and 2000 and the related statements of profit (loss), changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining on atest basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Beckwood Manor One LimitedPartnership as of December 31, 2001 and 2000, and its results of operations,changes in partners’ equity (deficit), and cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 26,2002 on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

**LITTLE, SHANEYFELT, MARSHALL, ROMINE &CO.**

 

**JANUARY 26, 2002**

** **

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To thePartners

G.V.A. LimitedPartnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of G.V.A. Limited Partnership (aVirginia limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of G.V.A. Limited Partnership as of December 31, 2001 and 2000, andthe results of its operations and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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**Independent Auditor’s Report**

 

To thePartners

Grayson ManorLimited Partnership

 

I have auditedthe accompanying balance sheets of Grayson Manor Limited Partnership as ofDecember 31, 2001 and 2000**,**and the related statements of operations,partners’ equity and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates, and the U.S Department of Agriculture, Farmers Home AdministrationAudit Program. Those standards require that I plan and perform the audits toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. I believe that my audits provide a reasonable basis formy opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Grayson Manor Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity, and its cash flows for the years then ended in conformitywith generally accepted accounting principles.

 

In accordancewith *GovernmentAuditing Standards,*I have also issued my report dated February 15,2002 on myconsideration of Grayson Manor Limited Partnership’s internalcontrol over financial reporting and on my tests of its compliance with certainprovisions of laws and regulations.

 

February 15,2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners of

SG -Hazeltine, L.P.

(A CaliforniaLimited Partnership)

Fresno,California

 

We haveaudited the accompanying balance sheet of SG - Hazeltine, L.P., a CaliforniaLimited Partnership, (the “Partnership”), as of December 31, 2001, and therelated statements of operations, partners’ equity (deficit), and cash flowsfor the year then ended. These financial statements are the responsibility ofhe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

We conductedour audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statement referred to above present fairly, in allmaterial respects, the financial position of the Partnership as of December 31,2001 and the results of its operations, changes in partners’ equity (deficit)and cash flows for the year then ended in conformity with generally acceptedaccounting principles.

 

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To ThePartners

M.B.Apartments Associates, Ltd.

 

We haveaudited the accompanying balance sheets of M.B. Apartments Associates, Ltd. (ALimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of M.B. Apartments Associates, Ltd.(A Limited Partnership) as of December 31, 2001 and 2000, and the results ofits operations, changes in partners’ equity and cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 13 ispresented for the purposes of additional analysis and is not a required part ofthe basic financial statements. Such information has been subjected to theauditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

MeridianHousing, L.P.

Meridian,Mississippi

 

We haveaudited the accompanying balance sheets of Meridian Housing, L.P. (aMississippi limited partnership), RHS Project No. 28-038-0640893892 as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’capital (deficit) and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Meridian Housing, L.P. as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. We have prepared the Multiple Family Housing BorrowerBalance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing ProjectBudget (RHS Form RD 1930-7). Such information has been subjected to the auditprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

January 30,2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To thePartners

New DevonshireII Limited Partnership

(An OhioLimited Partnership)

London, Ohio

 

We haveaudited the accompanying balance sheets of New Devonshire II LimitedPartnership (an Ohio Limited Partnership), RD Project No. 41-049-311449843, asof December 31, 2001 and 2000, and the related statements of operations,changes in partners’ equity (deficit) and cash flows for the years then ended.These financial statements are the responsibility of the management of NewDevonshire II Limited Partnership. Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conductedour audits in accordance with the auditing standards generally accepted in theUnited States of America, *Government Auditing Standards,*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program”. Those standardsrequire that we plan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of New Devonshire II Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations, the changes inpartners’ deficit and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 15,2002, on our consideration of New Devonshire II Limited Partnership’s internalcontrol and a report dated February 15, 2002, on its compliance with laws andregulations.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying information included in thereport (shown on pages 11 to 18) is presented for the purpose of additionalanalysis and is not a required part of the basic financial statements of NewDevonshire II Limited Partnership. Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements,and, in our opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

Beachwood,Ohio

February 15,2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To thepartners

New DevonshireWest Limited partnership

(an OhioLimited Partnership)

WestJefferson, Ohio

 

We have audited the accompanying balancesheets of New Devonshire West Limited Partnership (an Ohio LimitedPartnership), RD Project No. 41-049-3l 1449844, as of December 31, 2001 and2000, and the related statements of operations, changes in partners’ equity(deficit) and cash flows for the years then ended. These financial statementsare the responsibility of the management of New Devonshire West LimitedPartnership. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with the auditing standards generally accepted in theUnites States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program”. Those standardsrequire that we plan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of New Devonshire West LimitedPartnership as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ equity (deficit) and cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 15,2002, on our consideration of New Devonshire West Limited Partnership’sinternal control and a report dated February 15, 2002, on its compliance withlaws and regulations.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying information included in thereport (shown on pages 11 to 18) is presented for the purpose of additionalanalysis and is not a required part of the basic financial statements of NewDevonshire West Limited Partnership. Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements,and, in our opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

Beachwood,Ohio

February 15,2002

 

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IndependentAuditor’s Report

 

To thePartners

Powell ValleyLimited Partnership

 

I have auditedthe accompanying balance sheets of Powell Valley Limited Partnership as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’equity and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates, and the U.S. Department of Agriculture. Farmers Home AdministrationAudit Program. Those standards require that I plan and perform the audits toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. I believe that my audits provide a reasonable basis for myopinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of’ Powell Valley Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity and its cash flows for the years then ended il, conformitywith, generally accepted accounting principles.

 

In accordancewith *GovernmentAuditing Standards,*I have also issued my report dated February 15,2002 on my consideration of Powell Valley Limited Partnership’s internalcontrol over financial reporting and on my tests of its compliance with certainprovisions of laws and regulations.

 

February 15,2002

 

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IndependentAuditor’s Report

 

To thePartners

V. V. A.Limited Partnership

Charlotte,North Carolina

 

We have auditedthe accompanying balance sheets of V.V.A. Limited Partnership (a Virginialimited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America arm the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of V. V. A. Limited Partnership as ofDecember 31, 2001 and 2000 and the results of its operations and its cash flowsfor the years then ended in conformity with accounting principles generally acceptedin the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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**Independent Auditor’s Report**

 

To thePartners

W. P. V. A.Limited Partnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of W. P. V. A. Limited Partnership (aVirginia limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express all opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating thc overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of W. P. V. A. Limited Partnership asof December 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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For thePartners

Angelou Associates, L. P,

New York, NewYork

 

We haveaudited the accompanying balance sheets of Angelou Associates, L. P. (a NewYork State limited partnership) as of December 31, 2001 and 2000, and therelated statements of operations, cash flows, and partners’ capital, and thesupplementary information included for the years then ended. These financial statementsare the responsibility of the Company’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conductedour audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation,we believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Angelou Associates, L. P. as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplementary information is presented for the purposesof additional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

January 22,2002

 

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**Report of Independent Accountant**

 

To thePartners of CR Housing Associates, L.P.

 

I have auditedthe accompanying balance sheets of CR Housing Associates, L.P. (the“Partnership”) as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ capital and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audits.

 

I conducted my audits in accordance with generally accepted auditingstandards in the United States of America. Those standards require that I planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of CR Housing Associates, L.P. as of December31, 2001 and 2000, and the results of it operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles inthe United States of America.

 

My audits weremade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on page 10 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To thePartners

Holly HeightsApartments, L.P.

 

We haveaudited the accompanying balance sheets of Holly Heights Apartments, L.P. as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’equity and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management, our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Holly Heights Apartments, L.P. asof December 31, 2001 and 2000, and the results of its operations, changes inpartners, equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 14 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Goracke,Riggerbush & Piotrowski, L.L.P.

 

January 18,2002

 

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INDEPENDENTAUDITORS’ REPORT

 

TO THEPARTNERS OF 1374 BOSTON ROAD LIMITED PARTNERSHIP

 

We haveaudited the accompanying balance sheet of 1374 BOSTON ROAD LIMITED PARTNERSHIPas of December 31, 2001 and 2000, and the related statements of operations,changes in partners’ capital and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of 1374 BOSTON ROAD LIMITEDPARTNERSHIP as of December 31, 2001 and 2000, and the results of its operationsand its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

February 28, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****thePartners

BIENVILLE IIIAPARTMENTS

 

We haveaudited the accompanying balance sheets of BIENVILLE III APARTMENTS, RHSPROJECT NO.: 22-007-721280566 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of BIENVILLE IIIAPARTMENTS as of December 31, 2001 and 2000 and the results of its operations,changes in partners’ equity and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 16through 24, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 18,2002 on our consideration of BIENVILLE III APARTMENTS’s internal control and areport dated February 18, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 18,2002

 

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INDEPENDENT AUDITOR’SREPORT

 

To****thePartners

BLANCHARD IIAPARTMENTS

 

We haveaudited the accompanying balance sheets of BLANCHARD II APARTMENTS, RHS PROJECTNC). 22-009-721313034 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of BLANCHARD II APARTMENTS as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 16through 24, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 19,2002 on our consideration of BLANCHARD II APARTMENTS’s internal control and areport dated February 19, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 19,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****thePartners

COTTONWOODAPARTMENTS I

 

We haveaudited the accompanying balance sheets of COTTONWOOD APARTMENTS I, RHS PROJECTNO. 22-005-721313387 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of COTTONWOOD APARTMENTS I as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 16through 24, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 31,2002 on our consideration of COTTONWOOD APARTMENTS I’s internal control and areport dated January 31, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

January 31,2002

 

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Partners

Fairway IILimited Dividend Housing Association

LimitedPartnership

Marlette,Michigan

 

We haveaudited the accompanying balance sheet of Fairway II Limited Dividend HousingAssociation Limited Partnership, Rural Housing Service Project No.26-074-383047638 as of December 31, 2001 and 2000, and the related statementsof income, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Fairway II Limited DividendHousing Association Limited Partnership as of December 31, 2001 and 2000, andthe results of its operations, changes in partners’ equity and its cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 19,2002 on our consideration of Fairway II Limited Dividend Housing AssociationLimited Partnership’s internal control over financial reporting and our testsof compliance with certain provisions of laws, regulations, contracts andgrants. That report is an integral part of an audit performed in accordancewith *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information presented on pages11 through 19 is presented for purposes of complying with the requirements ofRural Housing Service and is not a required part of the basic financialstatements. Such information has been subjected to the audit procedures appliedin the audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

CERTIFIEDPUBLIC ACCOUNTANTS

February 19,2002

 

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IndependentAuditor’s Report

 

To thePartners of

Fort Bend NHC L.P.

(A VirginiaLimited Partnership)

 

We haveaudited the accompanying balance sheet of Fort Bend NHC L.P. as of December 31,2001, and the related statements of operations, changes in partners’ equity(deficit) and cash flows for the year then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Fort Bend NHC L.P. as of December31, 2001, and the results of its operations and its cash flows for the yearthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

 

 

February 2, 2002 

Carmel, Indiana

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

EVANGELINEPARTNERSHIP

 

We haveaudited the accompanying balance sheets of EVANGELINE PARTNERSHIP, RHS PROJECTNO. 22-027-721313386 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of EVANGELINE PARTNERSHIP as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 17through 25, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 19,2002 on our consideration of EVANGELINE PARTNERSHIP’s internal control and areport dated February 19, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 19,2002

 

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To thePartners

NeighborhoodRestorations Limited Partnership VII

Dresher,Pennsylvania

 

We haveaudited the accompanying balance sheets of Neighborhood Restorations LimitedPartnership VII (a Pennsylvania Limited Partnership) as of December 31, 2001and 2000, and the related statement of operations, changes in partners’capital’ and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe our audits provide a reasonablebasis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Neighborhood Restorations LimitedPartnership VII as of December 31, 2001 and 2000, and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

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**Independent Auditor’s Report**

 

To thePartners

R.V.K.Y.Limited Partnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of R.V.K.Y. Limited Partnership (aKentucky limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of R.V.K.Y. Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

----

 

To ThePartners

Sumner HouseLimited Partnership

 

INDEPENDENTAUDITORS’ REPORT

 

We haveaudited the accompanying balance sheets of Sumner House Limited Partnership asof December 31, 2001 and 2000, and the related statements of operations andchanges in partners’ capital, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Sumner House Limited Partnershipas of December 31, 2001 and 2000, and the results of its operations and cashflows for the years then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on Pages 8 and 9 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

Farmington,Connecticut

February 22,2002

 

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To the Partners

TerraceviewLimited Partnership

 

We have auditedthe accompanying balance of Terraceview Limited Partnership as of December 31,2001 and 2000, and the related statements of operations, partners’ equity(deficit) and cash flows for the year then ended.  These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion thesefinancial statements based on our audit.

 

We conductedour audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and the significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Terraceview

LimitedPartnership as of December 31, 2001 and. 2000 and the results of itsoperations, changes in partners’ equity (deficit) and cash flows for the yearthen ended in conformity with generally accepted accounting principle.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken  as a whole. The supplementalinformation on page 12 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

Stangl &Jaskcowiak, Ltd

 

May 10, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

BrysonApartments, LTD.

 

We haveaudited the accompanying balance sheet of Bryson Apartments, Ltd. (a limitedpartnership), RD Project No.: 50-019-752658906-01-8 as of December 31, 2001 andthe related statement of operations, partners’ equity and cash flows for theyear then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation, we believe that ouraudit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Bryson Apartments, Ltd. RD ProjectNo.: 50-019-752658906-01-8 as of December 31, 2001, and the results of itsoperations, changes in partners’ equity and cash flows for the year then endedin conformity with U.S. generally accepted accounting principles.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on Page 1-18 is presented forpurposes of additional analysis and is not a required part of the basicfinancial state­ments. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 6, 2002 on our consideration of Bryson Apartments, Ltd. internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

 

Wichita Falls,Texas

 February 6, 2002

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The Partners

CollinsHousing, L.P.

Collins,Mississippi

 

We haveaudited the accompanying balance sheets of Collins Housing, L.P., RD Case No.28-0160640864674, as of December 31, 2001 and 2000, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards,*issued by the comptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit included examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also included assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provided areasonable basis for our opinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Collins Housing, L.P. as of December 31,2001 and 2000, and the results of its operations and its cash flows for theyears then ended, in conformity with generally accepted accounting principles.

 

In accordancewith *GovernmentAuditing Standards*and the Audit Program issued by the United StatesDepartment of Agriculture, Rural Development, we have also issued a reportdated February 20, 2002, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our auditswere made for the purpose of forming an opinion on the financial statementstaken as a whole. The supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements of Collins Housing, L.P. Such information, except forthe current budget and proposed budget columns on pages 15 through 18, on whichwe express no opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

February 20,2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

GlenbrookApartments, Ltd.

 

We have audited the accompanying balance sheet of Glenbrook Apartments,Ltd. (a limited partnership), RD Project No.: 50-069-0752627351-01-4 as ofDecember 31, 2001 and the related statements of operations, partners’ equityand cash flows for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Glenbrook Apartments, Ltd., RDProject No.: 50-069-0752627351-01-4 as of December 31, 2001, and the results ofits operations, changes in partners’ equity and cash flows for the year thenended in conformity with U.S. generally accepted accounting principles.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on Page 1-18 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 6, 2002 on our consideration of Glenbrook Apartments, Ltd.’s internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in *accordance*with Government AuditingStandards and should be read in conjunction with this report in consideringthe results of our audit.

 

Wichita Falls,Texas

February 6,2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

JacksboroApartments, LTD.

 

We haveaudited the accompanying balance sheet of Jacksboro Apartments, Ltd. (a limitedpartnership) , RD Project No.: 50-0190-75-2-657-4-57-01-6 as of December 31,2001 and the related statements of operations, partners’ equity and cash flowsfor the year then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly in allmaterial respects, the financial position of Jacksboro Apartments, Ltd. RDProject No.: 50-0190752657457-01-6 as of December 31, 2001, and the results ofits operations, changes in partners’ equity and cash flows for the year thenended in conformity with U.S. generally accepted accounting principles.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on Page 1-19 is presented forpurposes of additional analysis and is not a required part of the basicfinancial state­ments. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 5, 2002 on our consideration of Jacksboro Apartments, Ltd.’s internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

 

Wichita Falls,Texas

February 5,2002

 

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To The Partners

Lincoln HotelPartnership

A CaliforniaLimited Partnership

710 West Ivy

San Diego, CA92101

 

**IndependentAuditor’s Report**

 

We haveaudited the accompanying balance sheets of Lincoln Hotel Partnership, A CaliforniaLimited Partnership, as of December 31, 2001 and 2000, and the relatedstatements of operations and partners’ capital and statements of cash flows forthe years then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit a/so includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Lincoln Hotel Partnership, ACalifornia Limited Partnership as of December 3l, 2001 and 2000, and theresults of its operations and cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

CONSIDINE& CONSIDINE

An AccountancyCorporation

January 31,2002

 

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To thePartners

Lutkin BayouApartments, LP

Drew,Mississippi

 

 

We haveaudited the accompanying balance sheets of Lutkin Bayou Apartments, LP (aMississippi limited partnership), RHS Project No. 28-083-640863241 as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’capital (deficit) and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Lutkin Bayou Apartments, LP, as ofDecember 31, 2001 and 2000 and the results of its operations and its cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

Our auditswere made for the purposes of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. We have prepared the Multiple Family Housing BorrowerBalance Sheet (RHS FORM RD 1980-8) and the Multiple Family Housing ProjectBudget (RHS FORM RD 1980-7). Such information has been subjected to the auditprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 6,2002

 

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To The Partners

NorthwayDrive, Ltd.

Bryan, Texas

 

We have audited the accompanying balance sheets of Northway Drive. Ltd.- (A Texas Limited Partnership) as of December 31, 2001 and 2000, and therelated statements of income, partners’ equity and cash flows for the yearsended December 31, 2001 and 2000. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with Generally Accepted Auditing Standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the balance sheet is free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the balance sheet. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall balance sheet presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the balance sheet referred to above presents fairly, in all materialrespects, the financial position of Northway Drive, Ltd.  - (A Texas Limited Partnership) as ofDecember 31, 2001 and 2000, in conformity with Generally Accepted AccountingPrinciples.

 

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

RhomeApartments, Ltd.

 

We haveaudited the accompanying balance sheet of Rhome Apartments, Ltd. (a limitedpartnership), RD Project No: 51-049-0752627348-02-2 as of December 31, 2001 andthe related statements of operations, partners’ equity and cash flows for theyear then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Rhome Apartments,Ltd., RD Project NO.: 51-049-0752627348 as of December 31, 2001, and theresults of its operations, changes in partners’ equity and cash flows for theyear then ended in conformity with U.S. generally accepted accountingprinciples.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on page 1-19 is presented forpurposes of additional analysis and is not a required part of the basicfinancial state­ments. Such information has been subjected to the auditing pro­ceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 1, 2002 on our consideration of Rhome Apartments, Ltd.’s internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants.  That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of our audit.

 

Wichita Falls,Texas

February 1,2002

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To thePartners

Bellwood FourLimited Partnership

 

We haveaudited the accompanying balance sheets of Bellwood Four Limited Partnership,(the Partnership), as of December 31, 2001 and 2000 and the related statementsof profit (loss), changes in partners’ equity (deficit) and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits,

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion,

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Bellwood Four Limited Partnershipas of December 31, 2001 and 2000, and its results of operations, changes inpartners’ equity (deficit), and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated February 4,2002 on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants, That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

**LITTLE, SHANEYFELT, MARSHALL, ROMINE &C0.**

 

**FEBRUARY 4, 2002**

 

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IndependentAuditors’ Report

 

To thePartners

BowieApartments, Ltd.

 

We haveaudited the accompanying balance sheets of Bowie Apartments, Ltd. (a limited partnership),RD Project No. 50-069-0752627345-01-7, as of December 31, 2001 and 2000, andthe related statements of operations, partners’ equity and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

 

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Bowie Apartments, Ltd., RD ProjectNo. 50-069-0752627345-01-7, as of December 31, 2001 and 2000, and the resultsof its operations, changes in partners’ equity and cash flows for the yearsthen ended in conformity with U.S. generally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on Page I~20 and 1-21is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. Such information has been subjected to theaudit procedures applied in the audit of the basic financial statements and, inour opinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 30, 2002 on our consideration of Bowie Apartments, Ltd’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. This report is anintegral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in consideringthe results of our audit.

 

Wichita Falls,

Texas January 30, 2002

 

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**IndependentAuditor’s Report**

 

 

To thePartners

C.V.V.A.Limited Partnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of C.V.V.A. Limited Partnership (aVirginia limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards’*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of C.V.V.A. Limited Partnership as ofDecember 31,2001 and 2000, and the results of its operations and its cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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IndependentAuditors’ Report

 

To thePartners

GrahamApartments, Ltd.

 

We haveaudited the accompanying balance sheets of Graham Apartments, Ltd. (a limitedpartnership), RD Project No. 51-52-752663159-01-1, as of December 31, 2001 and2000, and the related statements of operations, partners’ equity and cash flowsfor the years then ended. These financial statements are the responsi­bility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Graham Apartments, Ltd., RDProject No. 51-52-752663159-01-1, as of December 31, 2001 and 2000, and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with U.S. generally accepted accountingprinciples.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on Page 1-20 ispresented for purposes of additional analysis and is not a required part of thebasic financial state­ments. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 25, 2002 on our consideration of Graham Apartments, Ltd’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. This report is anintegral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in consideringthe results of our audit.

 

Wichita Falls,Texas

January 25,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

HillsideTerrace Associates, L.P.

 

We have audited the accompanying balance sheet of Hillside TerraceAssociates, L.P. (a limited partnership) as of December 31, 2001 and 2000 andthe related statements of operations and partners’ capital (deficit) and cashflows for the years then ended.  Thesefinancial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we planand perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Hillside Terrace Associates, L.P. as of December 31, 2001and 2000, and the results of its operations and its cash flows for the yearsthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

Salmin,Celona, Wehrle & Flaherty, LLP

 

January 31, 2002

 

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**IndependentAuditor’s Report**

 

To thePartners

K.G.V.A.Limited Partnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of K.G.V.A. Limited Partnership (aVirginia limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express all opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards’*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of K.G.V.A. Limited Partnership as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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To the Members

LindenPartners II, LLC

 

We have audited the accompanying balance sheets of Linden Partners 11,LIC (a Nebraska Limited Liability Company) as of December 3 I, 2001 and 2000,and the related statements of operations, members’ equity (deficit) and cashflows for the years then ended.  Thesefinancial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted it theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, is a allmaterial respects, the financial position of Linden Partners II, LLC as ofDecember 31, 2001 and 2000, and the results of its operations, and changes inmembers’ equity (deficit) and cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on page 12 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Omaha,Nebraska

February11,2002

 

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IndependentAuditor’s Report

 

To thePartners

Mesa GrandeApartments, Limited Partnership

Irvine,California

 

I have auditedthe accompanying balance sheet of Mesa Grande Apartments, Limited Partnershipas of December 31, 2001, and the related statements of operations, changes inpartners’ capital, and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted myaudit in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that I plan and perform the audit toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. I believe that my audit provides a reasonable basis formy opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Mesa Grande Apartments, Limited Partnershipat December 31, 2001, and the results of its operations and cash flows for theyear then ended in conformity with accounting principles generally accepted inthe United States of America

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 4,2002

 

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IndependentAuditors’ Report

 

To thePartners

NoconaApartments, Ltd.

 

We haveaudited the accompanying balance sheets of Nocona Apartments, Ltd. (a limitedpartnership), RD Project No: 50-069-0752685663-02-2 as of December 31, 2001 and2000, and the related statements of operations, partners’ equity and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Nocona Apartments, Ltd. RD ProjectNo.: 50-069-0752685663-02-2 as of December 31, 2001 and 2000, and the resultsof its operations, changes in partners’ equity and cash flows for the yearsthen ended in conformity with U.S. generally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on Page 1-20 and 1-21is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. Such information has been subjected to theaudit procedures applied in the audit of the basic financial statements and, inour opinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 30, 2002 on our consideration of Nocona Apartments, Ltd.’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations contracts and grants. This report is anintegral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in consideringthe results of our audit.

 

Wichita Falls,Texas

January 30,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

Pyramid OneLimited Partnership

 

We haveaudited the accompanying balance sheets of Pyramid One Limited Partnership,{the Partnership), as of December 31, 2001 and 2000 and the related statementsof profit (loss), changes in partners’ equity (deficit) cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted****inthe United States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatement8 are free of material misstatement. An audit includes examining on atest basis, evidence supporting the amounts and disclosures in the financialstatements. All audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly all materialrespects, the financial position of Pyramid One Limited Partnership as ofDecember 31, 2001 and 2000, and its results of operations, changes in partners’equity {deficit), and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated February20, 2002 on our consideration of the Partnership’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of anaudit performed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Little,Shaneyfelt, Marshall, Romine & Co.

 

**February 20, 2002**

 

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IndependentAuditor’s Report

 

 

To thePartners

Sunrise HomesApartments, Limited Partnership

Irvine,California

 

I have auditedthe accompanying balance sheet of Sunrise Homes Apartments, Limited Partnershipas of December 31, 2001, and the related statements of operations, changes inpartners’ capital, and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted myaudit in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that I plan and perform the audit toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. I believe that nay audit provides a reasonable basisfor my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Sunrise Homes Apartments, LimitedPartnership at December 31, 2001, and the results of its operations and cashflows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

My audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

February 4, 2002

 

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**INDEPENDENTAUDITORS’ REPORT**

 

The Partners

Canton HousingOne, L.P.

Jackson,Mississippi

 

We haveaudited the accompanying balance sheets of Canton Housing One, L.P., aMississippi limited partnership, FmHA Project No. 28-045-0640886062 01-8, as ofDecember 31, 2001 and 2000, and the related statements of income (loss),partners’ capital, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are tree of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Canton Housing One, L.P., FmHAProject No. 28-045-0640886062 01-8, as of December 31, 2001 and 2000, and theresults of its operations and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 26,2002, on our consideration of the Partnership’s internal control and a reportdated February 26, 2002, on its compliance with specific requirementsapplicable to major FmHA programs.

 

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Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying financial information included onpages 14 through 21 is presented for purposes of additional analysis and is nota required part of the basic financial statements. Such information, except forthe current budget and proposed budget columns in Part I and II and theinformation in Part IV included on pages 14 through 18 on which we express noopinion, has been subjected to the auditing procedures applied in the audits offile basic financial statements, and in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

EUBANK &BETTS, PLLC

Jackson,Mississippi

February 26,2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

The Partners

Canton HousingTwo, L.P,

Jackson,Mississippi

 

We haveaudited the accompanying balance sheet of Canton Housing Two, L.P., aMississippi limited partnership, FmHA Project No. 28-045-0640886061 01-5, as ofDecember 31, 2001 and 2000, and the related statements of income (loss),partners’ capital, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Canton Housing Two, L.P., FmHAProject No. 28-045-0640886061 01-5, as of December 31, 2001 and 2000, and theresults of its operations and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 26,2002, on our consideration of the Partnership’s internal control and a reportdated February 26, 2002, on its compliance with specific requirementsapplicable to major FmHA programs.

 

----

 

Our auditswere made for the purpose of forming an opinion on the basic financial statementstaken as a whole. The accompanying financial information included on pages 13through 20 is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information, except forthe current budget and proposed budget columns in Part I and II and theinformation in Part IV included on pages 13 through 18, on which we express noopinion, has been subjected to the auditing procedures applied in the audits ofthe basic financial statements, and in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

 

EUBANK &BETTS, PLLC

 

Jackson,Mississippi

February 26,2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

The Partners

Canton HousingThree, L.P.

Jackson,Mississippi

 

We haveaudited the accompanying balance sheets of Canton Housing Three, L.P., aMississippi limited partnership, FmHA Project No. 28-045-0640886063 04-2, as ofDecember 31, 2001 and 2000, and the related statements of income (loss), partners’capital, and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects the financial position of Canton Housing Three, L.P., FmHAProject No. 28-045-0640886063 04-2, as of December 31, 2001 and 2000, and theresults of its operations and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 26,2002, on our consideration of the Partnership’s internal control and a reportdated February 26, 2002, on its compliance with specific requirementsapplicable to major FmHA programs.

 

----

 

Our auditswere made for the purpose of forming an opinion on file basic financialstatements taken as a whole. The accompanying financial information included onpages 12 through 19 is presented for purposes of additional analysis and is nota required part of the basic financial statements. Such information, except forfile current budget and proposed budget columns in Part I and II and theinformation in part IV included on pages 12 through 16, on which we express noopinion, has been subjected to the auditing procedures applied in the audits ofthe basic financial statements, and in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

EUBANK &BETTS, PLLC

Jackson,Mississippi

February 26,2002

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Canton HousingFour, L.P.

Jackson,Mississippi

 

We haveaudited the accompanying balance sheets of Canton Housing Four, L.P., aMississippi limited partnership, FmHA Project No. 28-045-0640886064 02-0, as ofDecember 31, 2001 and 2000, and the related statements of income (loss),partners’ capital, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Canton Housing Four, L.P., FmHAProject No. 28-045-0640886064-02-0, as of December 31, 2001 and 2000, and theresults of its operations and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 26,2002, on our consideration of the Partnership’s internal control and a reportdated February 26, 2002, on its compliance with specific requirementsapplicable to major FmHA programs.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying financial information included onpages 13 through 20 is presented for purposes of additional analysis and is nota required part of the basic financial statements. Such information, except forthe current budget and proposed budget columns in Part I and II and theinformation in Part IV included on pages 13 through 18, on which we express noopinion, has been subjected to the auditing procedures applied in the audits ofthe basic financial statements, and in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

EUBANK &BETTS, PLLC

 

Jackson,Mississippi

February 26,2002

 

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To thePartners

EllisvilleHousing, L.P.

West Point,Mississippi

 

We haveaudited the accompanying balance sheets of Ellisville Housing, L.P. (aMississippi limited partnership), RHS Project No. 28-034-0640864667 as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’capital (deficit) and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Ellisville Housing, L.P. as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. We have prepared the Multiple Family Housing BorrowerBalance Sheet (RHS Form RD 1930-8) and the Multiple Family Housing ProjectBudget (RHS Form RD 1930-7). Such information has been subjected to the auditprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 18,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

HattiesburgHousing, LP

Jackson,Mississippi

 

We haveaudited the accompanying balance sheets of Hattiesburg Housing, LP (aMississippi limited partnership), RHS Project No. 28-018-640864668 as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’capital (deficit) and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Hattiesburg Housing, LP as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. We have prepared the Multiple Family Housing BorrowerBalance Sheet (RHS FORM RD 1930-8) and the Multiple Family Housing ProjectBudget (RHS FORM RD 1930-7). Such information has been subjected to the auditprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 14,2002

 

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INDEPENDENT AUDITORS’ REPORT

 

To thepartners

HurricaneHills II LC

 

I have auditedthe accompanying balance sheets of Hurricane Hills II LC as of December 31,2001, and the related partners’ equity for the year then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

I conducted myaudit in accordance with generally accepted auditing standards. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examination, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management as wellas evaluating the overall financial statement presentation. We believe that ouraudits provided a reasonable basis for our opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Hurricane Hills II LC as of December 31,2001, and the results of its operations, changes in Partners’ equity and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

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**Independent Auditor’s Report**

 

To thePartners

N. M. V. A.Limited Partnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of N. M. V. A. Limited Partnership (aVirginia limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of N. M. V. A. Limited Partnership asof December 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002, on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

January 31,2002

 

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INDEPENDENTAUDITOR’S REPORT

 

Partners

Sencit HampdenAssociates, L.P.

 

We haveaudited the accompanying balance sheets of SENCIT HAMPDEN ASSOCIATES, L.P.,ROTH VILLAGE TOWNHOMES as of December 31, 2001 and 2000, and the relatedstatements of profit and loss, partners’ equity and cash flows for the yearsthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Sencit Hampden Associates, L.P. asof December 31, 2001 and 2000, and the results of its operations, changes inpartners’ equity and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

January 25, 2002

Elkins Park,Pennsylvania

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To thePartners

SilverCreek/MHT Limited Dividend Housing

AssociationLimited Partnership

 

We haveaudited the accompanying balance sheet of Silver Creek/MHT Limited DividendHousing Association Limited Partnership (a Michigan limited partnership) as ofDecember 31, 2001, and the related statements of income, partners’ equity andcash flows for the year then ended. These financial statements are theresponsibility of the Company’s management. Our responsibility is to express anopinion on these financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Silver Creek/MHT Limited DividendHousing Association Limited Partnership as of December 31, 2001, and theresults of its operations, changes in partners’ equity and cash flows for theyear then ended, in conformity with accounting principles generally accepted inthe United States of America.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on pages 11 and 12 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated, in all material respects, in relation to the basicfinancial statements taken as a whole.

 

January 23,2002

 

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IndependentAuditor’s Report

 

February 1,2002

 

To thePartners

IndianaDevelopment Limited Partnership

Novi, Michigan

 

We haveaudited the accompanying balance sheets of Indiana Development LimitedPartnership as of December 31, 2001 and 2000 and the related statements ofoperation, partner capital and cash flows for the years then ended. Thesefinancial statements are the responsibility of Indiana Development LimitedPartnership’s management. Our responsibility is to express an opinion on thefinancial statement based upon our audit.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. These standards require that we plan and perform theaudit to obtain reasonable assurance whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatements presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Indiana Development LimitedPartnership as of December 31,2001 and 2000 and the results of its operationsand its cash flow for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 14, 15 and16 is presented for purposes of additional analysis and is not a required partof the basic financial statements. Such information has been subjected to theauditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as whole.

 

----

 

**INDEPENDENTAUDITOR’S REPORT**

 

To thePartners of

Martinsville-I,Ltd.

 

I have auditedthe accompanying balance sheets of Martinsville-I, Ltd. (a Kentucky limitedpartnership) as of December 31, 2001 and 2000 and the related statements ofoperations, changes in partners’ capital and cash flows for the years thenended. The financial statements are the responsibility of the Partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

I conducted myaudit in accordance with generally accepted auditing standards. Those standardsrequire that I plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amount anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by the Partnership’sgeneral partner and contracted management agent, as well as evaluating theoverall financial statement presentation. I believe that my audit provides areasonable basis for my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Martinsville-I, Ltd. at December 31, 2001and 2000, and its operations, changes in partners’ capital and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

February 8, 2002

 

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**Auditors’report**

 

To thePartners

Parkside PlazaAssociates, L. P.

New York, NewYork

 

We haveaudited the accompanying balance sheets of Parkside Plaza Associates, L. P. (aNew York State limited partnership) as of December 31, 2001 and 2000, and therelated statements of operations, cash flows, and partners’ capital, and thesupplementary information included for the years then ended. These financialstatements are the responsibility of the Company’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conductedour audit in accordance with generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used ‘and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Parkside Plaza Associates, L. P.as of December 31, 2001 and 2000, and the results of its operations and itscash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The accompanying supplementary information is presented forthe purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Kahn BoydLevychin,

CertifiedPublic Accountants

 

January 22,2002

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To thePartners

Pyramid FourLimited Partnership

 

We haveaudited the accompanying balance sheets of Pyramid Four Limited Partnership,(the Partnership), as of December 81, 2001 and 2000 and the related statementsof profit (loss), changes in partners’ equity (deficit) and cash flows fop theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Pyramid Four Limited Partnership as ofDecember 31, 2001 and 2000, and its results of operations, changes in partners’equity (deficit), and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 29,2002 on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

**LITTLE, SHANEYFELT, MARSHALL, ROMINE &CO.**

 

**JANUARY 29, 2002**

** **

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**MCFARLAND AND GANN, P.C.**

CERTIFIEDPUBLIC ACCOUNTANTS

 

INDEPENDENTAUDITOR’S REPORT

 

To thePartners

Bradford GroupPartners of Jefferson County, L.P.

893 ForgetyRoad

JeffersonCity, Tennessee

 

We haveaudited the accompanying balance sheet of Bradford Group Partners of JeffersonCounty, L.P. (a limited partnership) as of December 31, 2001, and the relatedstatements of income (loss), partners’ equity and cash flows for the year thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Bradford Group Partners ofJefferson County, L.P. as of December 31, 2001, and the results of itsoperations, changes in partners’ equity and cash flows for the year then ended,in conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

 

McFarland andGann, P.C.

March 15, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To thePartners

HarborPointe/MHT Limited Dividend Housing

AssociationLimited Partnership

 

We haveaudited the accompanying balance sheet of Harbor Pointe/MHT Limited DividendHousing Association Limited Partnership (a Michigan limited partnership) as ofDecember 31, 2001, and the related statements of income, partners’ equity andcash flows for the year then ended. These financial statements are the responsibilityof the Company’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Harbor Pointe/MHT Limited DividendHousing Association Limited Partnership as of December 31, 2001, and the resultsof its operations, changes in partners’ equity and its cash flows for the yearthen ended, in conformity with accounting principles generally accepted in theUnited States of America.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on pages 11 and 12 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated, in all material respects, in relation to the basic financialstatements taken as a whole.

 

January 22,2002

 

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IndependentAuditors’ Report

To the Partnersof

NHCPartnership 5, L.P.

(A VirginiaLimited Partnership)

 

We haveaudited the accompanying balance sheet of NHC Partnership 5, L.P. as ofDecember 31, 2001, and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of NHC Partnership 5, L.P. as ofDecember 31, 2001, and the results of its operations and its cash flows for theyear then ended in conformity with accounting principles generally accepted inthe United States of America.

 

Theaccompanying supplementary information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements.  Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements and,in our opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

February 2,2002

Carmel,Indiana

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To thePartners

BelmontAffordable Housing II, L.P.

Springfield,Pennsylvania

 

We haveaudited the accompanying balance sheets of Belmont Affordable Housing II, L.P.(a Pennsylvania Limited Partnership) as of December 31, 2001 and 2000, and therelated statements of operations and other comprehensive loss, changes inpartners’ capital and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe our audits provide a reasonablebasis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Belmont Affordable Housing II,L.P. as of December 31, 2001 and 2000, and the results of its operations andits cash flows for the years then ended in conformity with U.S generallyaccepted accounting principles.

 

Bala Cynwyd,Pennsylvania

January 23,2002

 

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To the Partners

Howard Park, Ltd.

 

We have audited the accompanying balancesheet of Howard Park Ltd. as of December 31, 2001 and the relatedstatements of income, partners’ equity and cash flow for the year then ended.These financial statements are the responsibility of the Howard Park, Ltd.management. Our responsibility is to express an opinion on these financialstatements based on our audit. The financial statements of Howard Park, Ltd. asof December 31, 2000, were audited by other auditors whose report dated March9, 2001, expressed an unqualified opinion on those statements.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Howard Park, Ltd. as of December31, 2001, and the results of its operations and its cash flows for the yearthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

Our audit wasconducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The schedule of administrative, utilities,maintenance, taxes, insurance and interest expense on page 10 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

February 22,2002

 

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IndependentAuditor’s Report

 

February 1,2002

 

Partners

RHP 96-1Limited Partnership

Novi, Michigan

 

We haveaudited the accompanying balance sheets of RHP 96-1 Limited Partnership as ofDecember 31, 2001 and 2000 and the related statements of operations, partnercapital and cash flows for the years then ended. These financial statements arethe responsibility of RHP 96-1 Limited Partnership’s management. Ourresponsibility is to express an opinion on the financial statement based uponour audit.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. These standards require that we plan and perform theaudit to obtain reasonable assurance whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatements presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of RHP 96-1 Limited Partnership as ofDecember 31,2001 and 2000 and the results of its operations and its cash flowfor the years then ended in conformity with accounting principles generally acceptedin the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 12 and 13 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as whole.

 

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**INDEPENDENT AUDITOR’S REPORT**

 

June 18, 2002

 

To thePartners

New CaneyHousing II, Ltd.

 

We haveaudited the accompanying balance sheet of New Caney Housing II, Ltd. as ofDecember 31, 2001 and 2000, and the related statements of operations, partners’equity (deficit), and cash flow for the years ended December 31, 2001 and 2000.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based oil our audits.

 

We conductedour audits in accordance with accounting principles generally accepted in theUnited States of America. Those standards require that we plan and perform theaudits to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the accompanying financial statements referred to above presentfairly, in all material respects, the financial position of New Caney HousingII, Ltd. as of December 31, 2001 and 2000, and the results of its operation andits cash flows for the year ending December 31, 2001 and 2000, in conformitywith accounting principles generally accepted in the United States of America.

 

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To the Partners

RiverwalkApartment Homes, Phase II LLC

Madison,Wisconsin

 

We have audited the accompanying balancesheet of Riverwalk Apartment Homes, Phase II LLC as of December 31, 2001 andthe related statements of operations, members’ equity and cash flows for theyear then ended.  These financialstatements are the responsibility of the company’s management.  Our responsibility is to express an opinionon these financial statements based on our audit.  The financial statements of Riverwalk Apartments Homes, Phase IILLC as of December 31, 2000 were audited by other auditors whose report datedJanuary 16, 2001 expressed an unqualified opinion on those statements.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we Plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management as well as evaluating the overall financialstatement Presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Riverwalk Apartment Homes, Phase II LLC as of December31, 2001 and the results of its operations and cash flows for the year thenended—in conformity with accounting, principles generally accepted in theUnited States of America.

 

Madison,Wisconsin

January 9,2002

 

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To thePartners

Aloha HousingLimited Partnership

Oregon Housingand

CommunityServices Department

Salem, Oregon

 

 

We haveaudited the accompanying Balance Sheets of Aloha Housing Limited Partnership *(a limitedpartnership),*as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ capital, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with generally accepted auditing standards, and with *GovernmentAuditing Standards,*issued by the Comptroller General of theUnited States. Those standards require that we plan and perform our audits toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Aloha Housing Limited Partnership,as of December 31, 2001 and 2000, and the results of its operations and itscash flows for the years then ended, in conformity with generally acceptedaccounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying schedules of supplementaryinformation required by the Oregon Housing and Community Services Departmentare presented for purposes of additional analysis and are not a required partof the basic financial statements. Such information has been subjected to theprocedures applied in our audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole

 

Portland,Oregon

 

January 30,2002

 

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**Independent Auditors’Report**

 

To ThePartners

Riverview BendLimited Partnership

Crystal City,Missouri

 

We haveaudited the accompanying balance sheet of Riverview Bend Limited Partnership(Riverview Bend Apartments, Project No. 085-35329-PM-L8) as of December 31,2001, and the related statements of profit and loss, partners’ equity and cashflows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Riverview Bend Limited Partnershipas of December 31,2001, and the results of its operations and its cash flowsfor the year then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards*and the *Consolidated Audit Guide for Audits of HUD Programs*issuedby the U.S. Department of Housing and Urban Development, we have also issued areport dated January 16, 2002 on our consideration of Riverview Bend LimitedPartnership’s internal control and reports dated January 16, 2002 on itscompliance with specific requirements applicable to major HUD programs andspecific requirements applicable to Fair Housing and Non-­Discrimination. Thosereports are an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

Our audit wasconducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying supplementary information shownon pages 16 to 19 is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

January 16,2002

 

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IndependentAuditor’s Report

 

February 1,2002

 

Partners

Baldwin VillasLimited Dividend

HousingAssociation Limited Partnership

Novi, Michigan

 

We haveaudited the accompanying balance sheets of Baldwin Villas Limited DividendHousing Association Limited Partnership as of December 31, 2001 and 2000 andthe related statements of operations, partner capital and cash flows for theyears then ended. These financial statements are the responsibility of BaldwinVillas Limited Dividend Housing Association Limited Partnership’s management.Our responsibility is to express an opinion on the financial statement basedupon our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America. These standards require that we plan and perform theaudit to obtain reasonable assurance whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatements presentation. We believe that our audit provide a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Baldwin Villas Limited DividendHousing Association Limited Partnership as of December 31, 2001 and 2000 andthe results of its operations and its cash flow for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 15 and 16 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the and/tingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as whole.

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

GouverneurSenior Housing Associates, L.P.

 

We have audited the accompanying balance sheet of Gouverneur SeniorHousing Associates, L.P, (a limited partnership) as of December 31, 2001 and2000, and the related statements of operations and partners’ capital (deficit)and cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management, our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America. Those standards require that we Plan and perform theaudit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects the financial position of Gouverneur Senior HousingAssociates, L.P. as of December 31, 2001 and 2000 and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

 

Salmin,Celona, Wehrle & Flaherty, LLP

 

February15,2002

 

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To the Partners

TALLY HOAPARTMENTS II PARTNERSHIP

 

We haveaudited the accompanying balance sheet of TALLY HO APARTMENTS II PARTNERSHIP,RHS PROJECT NO 22-035-721457920 as of December 31, 2001 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the year then ended, These financial statements are the responsibility ofthe partnership’s management, our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing standards,*issued bythe comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of TALLY HO APARTMENTS II PARTNERSHIPas of December 31, 2001 and the results of its operations, changes in partners’equity and cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States  of America.

 

Our audits were made for the Purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information presentedon pages 17 through 27, is presented for purposes of additional analysis and isnot a required part of the basic financial statements, such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated March 12,2002 on our consideration of TALLY HO APARTMENTS II PARTNERSHIP’s internalcontrol and a report dated March 12, 2002 on its compliance with laws andregulations applicable to the financial statements.

 

 

Metairie,Louisiana

March 12, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

TIMBER TRAILSI PARTNERSHIP

 

We haveaudited the accompanying balance sheet of TIMBER TRAILS I PARTNERSHIP, RHSPROJECT NO. 22-040-721457919 as of December 31, 2001 and the related statementsof operations, changes in partners’ equity (deficit) and cash flows for theyear then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements, An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of TIMBER TRAILS PARTNERSHIP as ofDecember 31, 2001 and the results of its operations, changes in partners’equity and cash flows for the year then ended, in conformity with accounting,principles generally accepted in the United States of America.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information presented on pages 17 through27, is presented for purposes of additional analysis and is not a required partof the basic financial statements. Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements and,in our opinion, is fairly stated in all material respects in relation to thebasic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002 on our consideration of TIMBER TRAILS I PARTNERSHIP’s internal control anda report dated February 28, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

 

Metairie,Louisiana

February 28,2002

 

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To thePartners

Capital FiveLimited Partnership

 

We haveaudited the accompanying balance sheets of Capital Five Limited Partnership,(the Partnership), as of December 31, 2001 and the related statements of profit(loss), changes in partners’ equity (deficit) and cash flows for the year thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in *Government Auditing Standards*issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated February13, 2002 on our consideration of the Partnership’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants, That report is an integral pant of anaudit performed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Capital Five Limited Partnershipas of December 31, 2001, and its results of operations, changes in partners’equity (deficit), and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United

 

**LITTLE, SHANEYFELT, MARSHALL, ROMINE &CO,**

**FEBRUARY 13, 2002**

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

CENTER PLACEAPARTMENTS II, LTD

 

We haveaudited the accompanying balance sheet of CENTER PLACE APARTMENTS II, LTD, RHSPRQJECT NO. 51-010-721481069 as of December 31, 2001 and the related statementsof operations, changes in partners’ equity (deficit) and cash flows for theyear then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly,inall material respects, the financial position of CENTER PLACE APARTMENTS II,LTD as of December 31, 2001 and the results of its operations, changes inpartners’ equity and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 17through 27, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated March 14,2002 on our consideration of CENTER PLACE APARTMENTS II, LTD’s internal controland a report dated March 14, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Members

MA NO, 2 LLC

San Diego,California

 

We have auditedthe accompanying balance sheet of MA NO. 2 LLC, (a Nevada Limited LiabilityCompany) as of December 31, 2001, and the related statement of income, changesin members’ equity, and cash flows from March 1, 2001 (date ofrecapitalization) through December 31, 2001. These financial statements are theresponsibility of the Company’s management. Our responsibility is to express anopinion on these financial statements based on our audit.

 

We conductedour audit in accordance with U.S. generally accepted auditing standards. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures In the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of MA NO. 2 LLC as of December 31,2001 and the results of its operations and its cash flows from March 1, 2001(date of recapitalization) to December 31, 2001, in conformity with U.S.generally accepted accounting principles.

 

Escondido,California

March 15, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

OAKLANDPARTNERSHIP

 

We have auditedthe accompanying balance sheet of OAKLAND PARTNERSHIP, RHS PROJECT NO.  22-002-721457988 as of December 31, 2001 andthe related statements of operations, changes in partners’ equity (deficit) andcash flows for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion the financial statements referred to above presentfairly, in all material respects, the financial position of OAKLAND PARTNERSHIPas of December 31, 2001 and the results of its operations, changes in partners’equity and cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 17through 27, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated March 25,2002 on our consideration of OAKLAND PARTNERSHIP’s internal control and areport dated March 25, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

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To thePartners

WESTERN GARDENPARTNERSHIP

 

We haveaudited the accompanying balance sheet of WESTERN GARDEN PARTNERSHIP, RHSPROJECT NO. 22-010-721457978 as of December 31, 2001 and the related statementsof operations, changes in partners’ equity (deficit) and cash flows for theyear then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinionthe financial statements referred to above present fairly, in all materialrespects, the financial position of WESTERN GARDEN PARTNERSHIP as of December31, 2001 and the results of its operations, changes in partners’ equity andcash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information presented on pages 17through 27, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated March 13,2002 on our consideration of WESTERN GARDEN PARTNERSHIP’s internal control anda report dated March 13, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To thePartners

Harbor PointeII/MHT Limited Dividend Housing

AssociationLimited Partnership

 

We haveaudited the accompanying balance sheet of Harbor Pointe II/MHT Limited DividendHousing Association Limited Partnership (a Michigan limited partnership) asDecember 31, 2001.  This financialstatement is the responsibility of the Company’s management.  Our responsibility is to express an opinionon this financial statement based on our audit.

 

We conductedour audit in accordance with auditing standards generally accepted in theUnited States of America Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statement isfree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statement. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In ouropinion, the balance sheet referred to above presents fairly, in all materialrespects, the financial position of Harbor Pointe’ II/MHT Limited DividendHousing Association Limited Partnership as December 31, 2001 in conformity withaccounting principles generally accepted in the United States of America.

 

April 4, 2002

 

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Independent Auditor’s Report

 

To The Partners

Bennetts Pointe Limited Partnership

 

I have audited the accompanying balancesheets of Bennetts Pointe Limited Partnership as of December 31, 2000 and 1999,and the related statements of operations, partners’ deficit and cash flows forthe years then ended. These financial statements are the responsibility of tilePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards’*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration Audit Program. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Bennetts Pointe Limited Partnership as of December 31, 2000 and1999, and the results of its operations, changes in partners’ deficit, and itscash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*Ihave also issued my report dated March 19, 2001 on my consideration of BennettsPointe Limited Partnership’s internal control over financial reporting and onmy tests of its compliance with certain provisions of laws and regulations.

 

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INDEPENDENT AUDITOR’S REPORT

 

**ToThe Partners**

College Greene Rental Associates, L.P.

 

We have audited the accompanying balancesheet of College Greene Rental Associates, L.P. (a Limited Partnership) as of’December 31, 2000 and 1999,**and the related statements of operations,changes in partners’ capital (deficit) and cash flows for the years then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of College Greene Rental Associates, L.P. as of December 31, 2000 and1999, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

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Independent Auditors’ Report

 

To the Partners of

East Douglas Apartments Limited Partnership(An Illinois Limited Partnership)

 

We have audited the accompanying balancesheet of East Douglas Apartments Limited Partnership (IHDA Development NumberHFI/HTF-354), as of December 31, 2000, and the related statements ofoperations, cash flows and changes in partners’ equity for the year then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit. The financial statements for the year endedDecember 31, 1999 were audited by other auditors whose report dated January 31,2000 expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance withgenerally accepted auditing standards, *Government Auditing Standards,*issued bythe Comptroller General of the United States and the Illinois HousingDevelopment Authority’s Financial Reporting and Audit Guidelines for Mortgagorsof Multifamily Hosing Developments. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of East Douglas Apartments Limited Partnership as of December 31,2000, and the results of its operations and its cash flows for the year thenended, in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*theIllinois Housing Development Authority’s Financial Reporting and AuditGuidelines for Mortgagors of Multifamily Housing Developments and theConsolidated Audit Guide for Audits of HUD Programs issued by the U.S.Department of Housing and Urban Development, we have also issued a report datedMarch 14, 2001, on our consideration of the Partnership’s internal controls,compliance with specific requirements applicable to major IHDA-assistedprograms, specific requirements applicable to affirmative fair housing, andspecific requirements applicable to nonmajor IHDA-assisted programtransactions.

 

The accompanying supplementary information ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To Tile Partners

Evergreen Hills Associates, L.P.

 

We have audited the accompanying balancesheet of Evergreen Hills Associates, L.P. (a limited partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations andpartners’ capital (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Evergreen Hills Associates, L.P. as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the year then ended inconformity with generally acccptcd accounting principles.

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

FLORAL ACRES APARTMENTS II

 

We have audited the accompanying balancesheets of FLORAL ACRES APARTMENTS II, RHS PROJECT NO. 22-026-721172913 as ofDecember 31, 2000 and 1999 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of FLORAL ACRES APARTMENTS II as of December 31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole, Thesupplemental information presented on pages 17 through 25, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 6, 2001 on ourconsideration of FLORAL ACRES APARTMENTS II’s internal control and a reportdated February 6, 2001 on its compliance with laws and regulations applicableto the financial statements.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

HARRISONBURG SENIORS APARTMENTS

 

We have audited the accompanying balancesheets of HARRISONBURG SENIORS APARTMENTS, RHS PROJECT NO. 22-013-721199864 asof December 31, 2000 and 1999 and the related statements of operations, changesin partners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of HARRISONBURG SENIORS APARTMENTS as of December 31, 2000 and 1999and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information presentedon pages 16 through 24, is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 6, 2001 on ourconsideration of HARRISONBURG SENIORS APARTMENTS’s internal control and areport dated February 6, 2001 on its compliance with laws and regulationsapplicable to the financial statements.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To****the Partners

SHADY LANE SENIORS APARTMENTS

 

We have audited the accompanying balancesheets of SHADY LANE SENIORS APARTMENTS, RHS PROJECT NO. 22-064-72i 100471 asof December 31, 2000 and 1999 and the related statements of operations, changesin partners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of SHADY LANE SENIORS APARTMENTS as of December 31, 2000 and 1999 andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 17 through 25, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 9, 2001 on ourconsideration of SHADY LANE SENIORS APARTMENTS’s internal control and a reportdated February 9, 2001 on its compliance with laws and regulations applicableto the financial statements.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Virginia Avenue Affordable Housing LimitedPartnership

 

I have audited the accompanying balancesheets of Virginia Avenue Affordable Housing Limited Partnership as of December31, 2000 and 1999, and the related statements of operations, partners’ equityand cash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audit provides a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Virginia Avenue Affordable Housing Limited Partnership as ofDecember 31, 2000 and 1999, and the results of its operations, the changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 14 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied it; the audit of the basicfinancial statements and, in my opinion, is fairly stated in all material respectsin relation to the basic financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners of

Better Homes for Havelock Limited Partnership(A North Carolina Limited Partnership)

 

We have audited the accompanying balance sheetsof Better Homes for Havelock Limited Partnership (a North Carolina LimitedPartnership) as of December 31, 2000 and 1999, and the related statements ofoperations, changes in partners’ equity (deficit), and cash flows for the yearsthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Better Homes for Havelock Limited Partnership as of December 31,2000 and****1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 26, 2001, on our consideration of thePartnership’s internal controls and a report dated January 24, 2001, on itscompliance with laws and regulations.

 

The accompanying purposes of additionalfinancial statements auditing procedures statements and, in respects inrelation supplementary information is presented for analysis and is not arequired part of the basic.  Suchinformation has been subjected to the applied in the audits of the basicfinancial our opinion, is fairly stated in all material to the financialstatements taken as a whole.

 

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**IndependentAuditor’s Report**

 

**Tothe Partners**

**BlackRiver Run Limited Partnership**

 

**Wehave audited the accompanying balance sheets *of Black River Run Limited Partnership*asof December 31, 2000 and 1999, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.**

 

**Weconducted our audits in accordance with generally accepted auditing standards.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.**

 

**Inour opinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position *of Black River Run Limited Partnership,*asof December 31, 2000 and 1999, and the results of its operations, changes inpartners’ equity, and cash flows for the years then ended in conformity withgenerally accepted accounting principles.**

 

**Ouraudits were made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 12 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.**

 

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**IndependentAuditor’s Report**

 

To the Partners

Liveoak Village Limited Partnership

Charlotte, North Carolina

 

We have audited tile accompanying balancesheets of Liveoak Village Limited Partnership (all Alabama limited partnership)as of December 31, 2000 and 1999, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and thc standards applicable to financialaudits contained in *Government Auditing Standards*issued bythc Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

in our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Liveoak Village Limited Partnership as of December 31, 2000 and1999, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards’,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of the Partnership. Such information has been subjected tothe auditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Lookout Ridge Limited Partnership

 

We have audited the accompanying balancesheet of Lookout Ridge Limited Partnership as of December 31, 2000, and therelated statements of operations, partners’ equity and cash flows for the yearthen ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefi­nancial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assur­ance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Lookout Ridge Limited Partnership as of December 31, 2000, and theresults of its operations, the changes in partners’ equity and cash flows forthe year then ended in conformity with generally accepted accounting princi­ples.

 

Our audit was made for the purpose of formingan opinion on the basic financial state­ments taken as a whole. Thesupplemental information on page 9 is presented for pur­poses of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statement and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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Independent Auditor’s Report

 

To the Partners

Pinedale II Limited Partnership

 

We have audited the accompanying balancesheets *ofPinedale II Limited Partnership*as of December 31, 2000 and 1999,and the related statements of operations, partners’ equity, and cash flows forthe years then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of *PinedaleII Limited Partnership,*as of December 31, 2000 and 1999, and theresults of its operations, changes in partners’ equity, and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 12 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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Independent Auditor’s Report

 

To the Partners

Pumphouse Crossing II Limited Partnership

 

We have audited the accompanying balancesheets *ofPumphouse Crossing II Limited Partnership*as of December 31, 2000and 1999, and the related statements of operations, partners’ equity, and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of *PumphouseCrossing II Limited Partnership,*as of December 31, 2000 and 1999,and the results of its operations, changes in partners’ equity, and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 12 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Elk Tower Apartments Limited Partnership

 

We have audited the accompanying balancesheets of Elk Tower Apartments Limited Partnership as of December 31, 2000 and1999, and the related statements of operations, partners’ equity (deficit) andcash flaws for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Elk Tower Apartments Limited Partnership as of December 31, 2000and 1999, and the results of its operations, changes in partners’ equity(deficit) and cash flows for the years then ended, in conformity with generallyaccepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 11 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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INDEPENDENT AUDITORS’ REPORT

 

 

To the Partners of

Kimbark 1200 Associates, Limited Partnership

Longmont, Colorado

 

We have audited theaccompanying balance sheet of Kimbark 1200 Associates, Limited Partnership, FHAProject No. 101-98011, as of December 31, 2000, and the related statement ofoperations, changes in partners’ equity and cash flows for the year then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Kimbark 1200 Associates, Limited Partnership FHA Project No.101-98011, as of December 31, 2000, and the results of its operations and thechanges in its partners’ equity and its cash flows for the year then ended, inconformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 2, 2001 on ourconsideration of Kimbark 1200 Associates, Limited partnership, internal controlsand reports dated February 2, 2001 on its compliance with specific requirementsapplicable to major HUD programs and Fair Housing and Non-Discrimination.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Lost Tree Limited Partnership

 

I have audited the accompanying balancesheets of Lost Tree Limited Partnership as of December 31, 2000 and 1999, andthe related statements of operations, partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. My responsibility is to express an opinion onthese financial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Lost Tree Limited Partnership as of December 31, 2000 and 1999, andthe results of its operations, changes in partners’ equity (deficit) and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 14 and 15 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basis financialstatements taken as a whole.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Philadelphia Housing II, Limited Partnership

Philadelphia, Mississippi

 

We have audited the accompanying balancesheets of Philadelphia Housing II, Limited Partnership (a Mississippi limitedpartnership), RHS Project No. 28-050-640808922 as of December 31, 2000 and1999, and the related statements of operations, partners’ capital (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Philadelphia Housing II, Limited Partnership, and the results ofits operations and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audits were made for the purposes offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information is presented for purposes of additional analysis andis not a required part of the basic financial statements. We have prepared theMultiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and theMultiple Family Housing Project Budget (RHS Form RD 1930-7). Such informationhas been subjected to the audit procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all material respectsin relation to the basic financial statements taken as a whole.

 

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*IndependentAuditor’s Report*

 

To the Partners of

Roxbury Veterans Housing Limited Partnership

 

We have audited the accompanying balancesheet of Roxbury Veterans Housing Limited Partnership (a Massachusetts LimitedPartnership) as of December 31, 2000, and the related statements of operations,changes in partners’ equity, and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance withauditing standards generally accepted in the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.

 

 In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Roxbary VeteransHousing Limited Partnership as of December 31, 2000, and  the results of its operations, changes inpartners’ equity, and cash flows for the year ended in conformity withaccounting principles generally accepted in the United States.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The accompanyingschedule of operating expenses is presented for purposes of additional analysisand is not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners

Barlee Properties,

An Arkansas Limited Partnership

Barling, Arkansas

 

We have audited the accompanying balancesheet of Barlee Properties, An Arkansas Limited partnership, as of December 31,2000, and the related statement of operations, changes in partners’ capital andcash flows for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit. Thefinancial statements of Barlee Properties, An Arkansas Limited partnership asof December 31, 1999, were audited by other auditors whose report dated January27, 2000, expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance withgenerally accepted auditing standards. These standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation, We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the 2000 financial statementsreferred to above present fairly, in all material respects, the financialposition of Barlee Properties, An Arkansas Limited Partnership, as of December31, 2000, and the results of its operations and its cash flows for the yearthen ended in conformity with generally accepted accounting principles.

 

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Report of Independent Accountants

 

Partners

Colonna Redevelopment Company L.P.

Hempstead, New York

 

We have audited the accompanying balancesheets of Colonna Redevelopment Company L.P. (a New York Limited Partnership)(the “Partnership”) as of December 31, 2000 and 1999 and the related statementsof operations, cash flows and partners’ equity for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Colonna Redevelopment Company L.P. as of December 31, 2000 and1999, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 12 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Halls Ferry Apartments, L.P.

 

I have audited the accompanying balancesheets of Halls Ferry Apartments, L.P. as of December 31, 2000 and 1999 and therelated statements of operations, partners’ equity and cash flows for the yearsthen ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan aridperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Halls Ferry Apartments, L.P. as of December 31, 2000 and 1999, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole, Thesupplemental information on pages 15 and 16 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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**IndependentAuditors’ Report**

 

Partners

Ithaca I Limited Partnership

Ithaca, Michigan

 

We have audited the accompanying balancesheet of Ithaca I Limited Partnership Rural Housing Service Project No.26-029-383119117 as of December 31, 2000 and 1999, and the related statementsof income, partners’ equity and cash flows for the years ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance withauditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in *Government Auditing Standards*issuedby the Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Housing Service Audit Program. Those standards require thatwe plan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Ithaca I Limited Partnership as of December 31, 2000 and 1999, andthe results of its operations, changes in partner’s equity and its cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 9, 2001 on our consideration of IthacaI Limited Partnership’s internal control over financial reporting and our testsof compliance with certain provisions of laws and regulations, contracts andgrants.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information presented on pages 11 through 19 is presented forpurposes of complying with the requirements of Rural Housing Service and is nota required part of the basic financial statements. Such information has beensubjected to the audit procedures applied in the audit of the basic financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

MATHIS APARTMENTS, LTD.

 

We have audited the accompanying balancesheets of MATHIS APARTMENTS, LTD., RHS PROJECT NO. 51-005-721010606 as ofDecember 31, 2000 and 1999 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of MATHIS APARTMENTS, LTD. as of December 31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 16 through 24, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 16, 2001 on ourconsideration of MATHIS APARTMENTS, LTD.’s internal control and a report datedFebruary 16, 2001 on its compliance with laws and regulations applicable to thefinancial statements.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To****the Partners

ORANGE GROVE SENIORS APARTMENTS, LTD.

 

We have audited the accompanying balancesheets of ORANGE GROVE SENIORS APARTMENTS, LTD, RHS PROJECT NO.50-025-742670408 as of December 31, 2000 and 1999 and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of ORANGE GROVE SENIORS APARTMENTS, LTD. as of December 31, 2000 and1999 and the results of its operations, changes in partners’ equity and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 16 through 24, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditingStandards, we have also issued a report dated February 9, 2001 onour consideration of ORANGE GROVE SENIORS APARTMENTS, LTD.’s internal controland a report dated February 9, 2001 on its compliance with laws and regulationsapplicable to the financial statements.

 

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To The Partners

Sacramento SRO Limited Partnership

A California Limited Partnership

600 West Broadway, #1070

San Diego, CA 92101

 

**IndependentAuditor’s Report**

 

We have audited the accompanying balancesheets of Sacramento SRO Limited Partnership, as of December 31, 2000 and 1999and the related statements of operations and partners’ capital and statementsof cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financial positionof Sacramento SRO Limited Partnership, as of December 31, 2000 and 1999, andthe results of their operations and cash flows for the years then ended inconformity with generally accepted accounting principles.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

South Hills Apartments, L.P.

 

We have audited the accompanying balancesheets of South Hills Apartments, L.P. as of December 31, 2000 and 1999, andthe related statements of operations, partners’ equity and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management, our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation, we believe that our audits provide a reasonablebasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of south Hills Apartments, L.P. as of December 31, 2000 and 1999, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 14 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements, suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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**IndependentAuditors’ Report**

 

To the Partners:

**VillageWoods Estates, L.P.**

 

We have audited the accompanying balancesheets of **VillageWoods Estates, L.P.** as of December 31, 2000 and 1999, and therelated statements of income, changes in partners’ capital, and cash flows forthe years then ended. These financial statements are the responsibility of theCompany’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in ail material respects, the financialposition of **Village Woods Estates, L.P.** as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

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Independent Auditors’ Report

 

To the Partners

Woodland Hills Properties,

A Limited Partnership

Barling, Arkansas

 

We have audited the accompanying balancesheet of Woodland Hills Properties, A Limited Partnership, as of December 31,2000, and the related statement of operations, changes in partners’ capital andcash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit. Thefinancial statements of Woodland Hills Properties, A Limited Partnership, as ofDecember 31, 1999, were audited by other auditors whose report dated January31, 2000, expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the 2000 financial statementsreferred to above present fairly, in all material respects, the financialposition of Woodland Hills Properties, A Limited Partnership, as of December31, 2000, and the results of its operations and its cash flows for the yearthen ended in conformity with generally accepted accounting principles.

 

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INDEPENDENTAUDITOR’S REPORT

 

To The Partners

Autumn Ridge Associates

Roanoke, Virginia:

 

We have audited the accompanying balancesheet of Autumn Ridge Associates (A Virginia Limited Partnership) as ofDecember 31, 2000 and 1999 and the related statement of operations andpartners’ equity (deficit) and cash flow for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards and Government Auditing Standards issuedby the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Autumn Ridge Associates as of December 31, 2000 and 1999, and theresults of its operation and its cash flow for the year then ended inconformity with generally accepted accounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on pages 14 through 17 is presented for the purpose of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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INDEPENDENTAUDITORS’ REPORT

 

 

 

To the Partners

Brownsville Associates, Limited

 

We have audited the accompanying balancesheets of Brownsville Associates, Limited (a Tennessee limited partnership)d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Brownsville Associates, Limited (a Tennessee limited partnership)d/b/a Brownsville Village Apartments, RHS Project No.: 48-038-621467876, as ofDecember 31, 2000 and 1999, and the results of its operations, the changes inpartners’ equity and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 9, 2001 on our consideration ofBrownsville Associates, Limited’s internal control over financial reporting andour tests of its compliance with certain provisions of laws, regulations,contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 12 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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**IndependentAuditors’ Report**

 

To The Partners

Centenary Housing Limited Partnership

St. Louis, Missouri

 

We have audited the accompanying balancesheet of Centenary Housing Limited Partnership (Centenary Towers Apartments,Project No. 085-35239-PM-SR-PR-WAH-L8) as of December 31, 2000, and the relatedstatements of profit and loss, partners’ equity and cash flows for the yearthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Centenary Housing Limited Partnership as of December 31, 2000, andthe results of its operations and its cash flows for the year then ended in conformitywith generally accepted accounting principles.

 

Our audit was conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying supplementary information shown on pages 16 to 19 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

In accordance with *Government Auditing Standards*andthe *ConsolidatedAudit Guide for Audits of HUD Programs*issued by the U.S. Departmentof Housing and Urban Development, we have also issued a report dated January23, 2001 on our consideration of Centenary Housing Limited Partnership’sinternal control and reports dated January 23, 2001 on its compliance withspecific requirements applicable to major HUD programs and specific requirementsapplicable to Fair Housing and Non-Discrimination. Those reports are anintegral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

 

To the Partners of

Jeremy Associates Limited Partnership

 

We have audited the accompanying balancesheets of JEREMY ASSOCIATES LIMITED PARTNERSHIP (a Colorado limitedpartnership) as of December 3l, 2000 and 1999, and the related statements ofoperations, partners’ capital accounts and cash flows for the years thenended.  These financial statements arethe responsibility of the Partnership’s management. Our responsibility, is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withauditing standards generally accepted in the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits  provide a reasonablebasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Jeremy Associates Limited Partnership as of December 31, 2000 and1999 and the results of its operations and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates.

 

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INDEPENDENT ACCOUNTANTS’ REPORT

 

To the Partners

New Hilltop Apartments, A Limited Partnership

Columbia, South Carolina

 

We have audited the accompanying balancesheets of New Hilltop Apartments, A Limited Partnership (A South Carolina LimitedPartnership), as of December 31, 2000 and 1999, and the related statements ofoperations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards and Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of New Hilltop Apartments, A Limited Partnership, as of December 31,2000 and 1999, and the results of its operations and its cash flows for theyears then ended, in conformity with generally accepted accounting principles.

 

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Independent Auditors’ Report

 

Partners

Shadowcreek Apartments

Elko, Nevada

 

We have audited the accompanying balancesheets of Shadowcreek Apartments (Project), Rural Development Case No.33-002-0880283493, as of December 31, 2000 and 1999 and the related statementsof operations, changes in partners equity and cash flows for the years thenended. These financial statements are the responsibility of the Project’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and with *Government Auditing Standards,*issuedby the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of the Project as of December 31, 2000 and 1999 and the results of itsoperations, changes in partners equity and cash flows for the years then ended.In contbrmity with general accepted accounting principles.

 

Our audit was conducted for the purpose offorming an opinion on the financial statements taken as a whole. Thesupplemental information on pages l0 through 13 is presented for the purpose ofadditional analysis and is not a required part of the basic financialstatements of the Project for the year ended December 31, 2000. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in our opinion, is fairly presented inall material respects in relation to the financial statements taken as a whole.

 

In accordance with *Government Auditing Standards,*wehave issued a report dated January 24, 2001, on our consideration of theProject’s internal control over financial reporting and over tests of itscompliance with laws, regulations, contracts and grants. This report is anintegral part of an audit performed in accordance with *Government Auditing S’tandards*andshould be read in conjunction with this report in considering the results ofour audit.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Pahrump Valley Investors

(A Wyoming Limited Partnership)

Cheyenne, WY

 

I have audited the accompanying balancesheets of Pahrump Valley Investors (A Wyoming Limited Partnership), USDA RuralDevelopment Case No. 33-019-680204949, as of December 31, 2000 and 1999, andthe related statements of income, partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that Iplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Pahrump Valley Investors (A Wyoming Limited Partnership) as ofDecember 31, 2000 and 1999, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*Ihave also issued a report dated March 16, 2001 on my consideration of Pahrumpvalley Investors’ internal control structure and a report dated March 16, 2001on its compliance with laws and regulations.

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Stanton Associates, Limited

 

We have audited the accompanying balancesheets of Stanton Associates, Limited (a Tennessee limited partnership) d/b/aStanton Village Apartments, RHS Project No.: 48-038-621542356, as of December31, 2000 and 1999, and the related statements of operations, partners’ equity,and cash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is to expressan opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Stanton Associates, Limited (a Tennessee limited partnership) d/b/aStanton Village Apartments, RHS Project No.: 48-038-621542356, as of December31, 2000 and 1999, and the results of its operations, the changes in partners’equity and its cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 17, 2001 on our consideration ofStanton Associates, Limited’s internal control over financial reporting and ourtests of its compliance with certain provisions of laws, regulations,contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 12 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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**IndependentAuditors’ Report**

 

**Tothe Partners**

**WoodlandsApartments**

**Elko,Nevada**

 

**Wehave audited the accompanying balance sheets of Woodlands Apartments (theProject), Rural Development Case No. 33-004-0880314570, as of December 31, 2000and 1999 and the related statements of operations, changes in Partners’ equityand cash flows for the years then ended, These financial statements are theresponsibility of the Project’s management, Our responsibility is to express anopinion on these financial statements based on our audits.**

 

**Weconducted our audits in accordance with generally accepted auditing standardsand with *GovernmentAuditing Standards,*issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.**

 

**Inour opinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of the Project as of December 3l,2000 and 1999 and the results of its operations, changes in partners equity,and cash flows for the years then ended, in conformity with generally acceptedaccounting principles.**

 

**Ouraudits were conducted for the purpose of forming an opinion on the basicfinancial statements taken as a whole, The supplemental information on pages 10through 13, is presented for the purpose of additional analysis and is not arequired part of the basic financial statements of the Project for the yearended December 31, 2000. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly presented in all material respects in relation to thefinancial statements taken**as a whole.**

 

**Inaccordance with *Government Auditing Standards,*we have issued a report datedJanuary 24, 2001, on our consideration of the Woodlands Apartments’ internalcontrol over financial reporting and over tests of its compliance with laws,regulations, contracts and grants. This report is an integral part of an auditperformed in accordance with *Government Auditing Standards’*and shouldbe read in conjunction with this report in considering the results of ouraudit.**

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

ZWOLLE PARTNERSHIP

 

We have audited the accompanying balance sheets of ZWOLLE PARTNERSHIP,RHS PROJECT NO. 22-043-721260425 as of December 31, 2000 and 1999 and therelated statements of operations, changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is to expressan opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of ZWOLLE PARTNERSHIP as of December 31, 2000 and 1999 and the resultsof its operations, changes in partners’ equity and cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 16 through 24, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in our opinion,is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 9, 2001 on ourconsideration of ZWOLLE PARTNERSHIP’s internal control and a report datedFebruary 9, 2001 on its compliance with laws and regulations applicable to thefinancial statements,

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

352 LenoxAssociates, L.P.

 

We have audited the accompanyingbalance sheet of 352 Lenox Associates, L.P. as of  December 31,2000, and the related statements of operations,changes in partners’ equity and cash flows for the year then ended. Thesefinancial statements are the responsibility of the partnerships management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit in accordance withauditing standards generally accepted in the United States of America. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of 352 Lenox Associates, L.P. as of December 31, 2000, and the resultsof its operations, the changes in partners’ equity and cash flows for the year endedDecember 31, 2000, in conformity with accounting principles generally acceptedin the United States of America.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 13 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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The Partners

Ethel Housing, L.P.

Ethel, Mississippi

 

We have audited the accompanying balancesheets of Ethel Housing, L.P., RD Case No. 28-0040640823417 as of December 31,2000 and 1999, and the related statements of operations, partners’ equity, andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is to expressan opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards, issuedby the comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includedexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also included assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provided a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Ethel Housing, L.P., as of December 31, 2000 and 1999, and theresults of its operations and its cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards and the Audit Program issued by the United States Department ofAgriculture, Rural Development, we have also issued a report dated March 21,2001, on its compliance with specific requirements applicable to major RDprograms and nonmajor RD program transactions.

 

Our audits were made for the purpose offorming an opinion on the financial statements taken as a whole. The supportingdata included on pages 12 through 19 are presented for purposes of additionalanalysis and are not a required part of the financial statements of EthelHousing, L.P. Such information, except for the current budget and proposedbudget columns on pages 15 through 18, on which we express no opinion, isfairly stated in all material respects in relation to the financial statementstaken as a whole.

 

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INDEPENDENT AUDITORS’ REPORT

 

To the partners

Hurricane Hills I LC

 

I have audited the accompanying balance sheetsof Hurricane Hills LC as of December 31, 2000, and the related statements ofoperations, partners’ equity and cash flows for the year then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examination, ona test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audits provided areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Hurricane Hills I LC as of December 31, 2000, and the results ofits operations, changes in Partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To: The Partners

Main Everett Housing LimitedPartnership

 

We have audited the accompanying balancesheets of Main Everett Housing Limited Partnership as of December 31, 2000 and1999, and the related statements of operations, partners’ equity, and cashflows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Main Everett Housing Limited Partnership as of December 31, 2000and 1999, and the results of its operations, changes in partners’ equity, andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 11 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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**Tothe Partners**

**M.R.H.,L.P.**

 

**We have audited the accompanying balancesheets of M.R.H., L.P. as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended. These financial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.**

 

**We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.**

 

**In our opinion, the financial statements referredto above present fairly, in all material respects, the financial position ofM.R.H., L.P. as of December 31, 2000 and 1999, and the results of itsoperations, changes in partners’ equity and cash flows for the years then endedin conformity with generally accepted accounting principles.**

 

**Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information is presented for purposes of additional analysis andis not a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.**

 

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**INDEPENDENTAUDITORS’ REPORT**

 

**Tothe Partners**

Washington Arms Apartments

(A Limited Partnership)

Dayton, Ohio

 

We have audited the accompanying balancesheet of HUD Project #046-NI093 of Washington Arms Apartments (a limitedpartnership) as of December 31, 2000, and the related statements of profit andloss, changes in deficiency in partners’ capital and cash flows for the yearended December 31, 2000. These financial statements are the responsibility ofthe Project’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards, *Government Auditing Standards*issued bythe Comptroller General of the United States, and Consolidated Audit Guidefor Audits of HUD Programs (the “Guide”) issued by the U. S. Department ofHousing and Urban Development, Office of Inspector General in August 1997.Those standards and the Guide require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of HUD Project #046-NI093 as of December 31, 2000 and the results ofits operations and its cash flows and its changes in deficiency in partners’capital for the year then ended in conformity with generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 24, 2001 on our consideration ofWashington Arms Apartments’ internal controls and a report dated January 24,2001 on its compliance with laws and regulations. Those reports are an integralpart of an audit performed in accordance with Government Auditing Standards andshould be read in conjunction with this report in considering the results ofour audit.

 

Our audit was made for the purpose of formingan opinion on the financial statements taken as a whole. The additionalinformation included in the report shown on pages 12-16 is presented for thepurposes of additional analysis and is not a required part of the financialstatements of HUD Project #046-NI093. Such information has been subjected tothe auditing procedures applied in the audit of the financial statements and,in our opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

**To:**The Partners

**OsborneHousing Limited Partnership**

 

We have audited the accompanying balancesheets of Osborne Housing Limited Partnership as of December 31, 2000 and 1999,and the related statements of operations, partners’ equity, and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Osborne Housing Limited Partnership as of December 31, 2000 and1999, and the results of its operations, changes in partners’ equity, and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 11 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audits of thebasic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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**Tothe Partners**

**SandstoneVillage Limited Partnership**

**GreatFalls, Montana**

 

INDEPENDENT AUDITORS’ REPORT

 

We have audited the accompanying balancesheets of Sandstone Village Limited Partnership as of December 31, 2000 and1999 and the related statements of operations, partners’ equity and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Sandstone Village Limited Partnership as of December 31, 2000 and1999, and the results of its operations, changes in partners’ equity and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on thc basic financial statements taken as a whole. Thesupplemental information on page 14 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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The Partners

Shannon Housing, L.P,

Shannon, Mississippi

 

We have audited the accompanying balancesheets of Shannon Housing, L.P., RD Case No. 28-041064835658, as of December 312000, and 1999, and the related statements of operations, partners’ equity, andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards, issuedby the comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includedexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also included assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provided a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Shannon Housing, L.P., as of December 31, 2000 and 1999, and theresults of its operations and its cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards and the Audit Program issued by the United States Department ofAgriculture, Rural Development, we have also issued a report dated March 21,2001, on its compliance with specific requirements applicable to major RDprograms and nonmajor RD program transactions.

 

Our audits were made for the purpose offorming an opinion on the financial statements taken as a whole. The supportingdata included on pages 12 through 19 are presented for purposes of additionalanalysis and are not a required part of the financial statements of ShannonHousing, L.P. Such information, except for the current budget and proposedbudget columns on pages 15 through 18, on which we express no opinion, isfairly stated in all material respects in relation to the financial statementstaken as a whole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners of

Sutton Place Apartments

(A Limited Partnership)

Cincinnati, Ohio

 

We have audited the accompanying balancesheet of HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and 073-55062of Sutton Place Apartments (a limited partnership) as of December 31, 2000, andthe related statements of profit and loss, changes in deficiency in partners’capital and cash flows for the year then ended. These financial statements arethe responsibility of the Project’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards, *Government Auditing Standards*issued bythe Comptroller General of the United States, and Consolidated Audit Guidefor Audits of HUD Programs (the “Guide”) issued by the U. S. Department ofHousing and Urban Development, office of Inspector General in August 1997.Those standards and the Guide require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of HUD    Project#073-55035, 073-55037, 073-55038, 073-55061 and 073-55062 as of December 31,2000 and the results of its operations and its cash flows and its changes indeficiency in partners’ capital for the year then ended in conformity withgenerally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 24, 2001 on ourconsideration of Sutton Place Apartments’ internal control and a report datedJanuary 24, 2001 on its compliance with laws and regulations.

 

We were engaged to conduct an audit for thepurpose of forming an opinion on the financial statements taken as a whole. Theadditional information included in the report shown on pages 13-19 is presentedfor the purposes of additional analysis and is not a required part of thefinancial statements of HUD Project #073-55035, 073-55037, 073-55038, 073-55061and 073-55062. Such information has been subjected to the auditing proceduresapplied in the audit of the financial statements and, in our opinion, is fairlystated in all material respects in relation to the financial statements takenas a whole.

 

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The Partners

West Point Housing, L.P.

West Point, Mississippi

 

We have audited the accompanying balancesheets of West Point Housing, L.P., RD Case No. 28-013-0640834734, as ofDecember 31,2000, and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includedexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also included assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our auditsprovided a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of West Point Housing, L.P., as of December 31, 2000 and 1999, and theresults of its operations and its cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards*andthe Audit Program issued by the United States Department of Agriculture, RuralDevelopment, we have also issued a report dated March 21, 2001, on itscompliance with specific requirements applicable to major RD programs andnonmajor RD program transactions.

 

Our audits were made for the purpose offorming an opinion on the financial statements taken as a whole. The supportingdata included on pages 12 through 10 are presented for purposes of additionalanalysis and are not a required part of the financial statements of West PointHousing, L.P. Such information, except for the current budget and proposedbudget columns on pages 15 through 18, on which we express no opinion, isfairly stated in all material respects in relation to the financial statementstaken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To The Partners

200 East Avenue Associates, L.P.

 

We have audited the accompanying balancesheet of 200 East Avenue Associates, L.P. (a limited partnership) as ofDecember 31, 2000 and 1999 and the related statements of operations andpartners’ capital (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of 200 East Avenue Associates, L.P. as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

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**Tothe Partners**

**A.V.A.Limited Partnership**

**Charlotte,North Carolina**

 

**Wehave audited the accompanying balance sheets of A.V.A. Limited Partnership (aVirginia limited partnership) as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ equity, and cash flows for the years then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.**

 

**Weconducted our audits in accordance with generally accepted auditing standardsand the standards applicable to financial audits contained in *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audits to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.**

 

**Inour opinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of A.V.A. Limited Partnership as ofDecember 31, 2000 and 1999, and the results of its operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.**

 

**Inaccordance with *Government Auditing Standards,*we have also issued ourreport dated January 31, 2001, on our consideration of the Partnership’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts, and grants.**

 

**Ouraudits were made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not arequired part of the basic financial statements of the Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.**

 

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To the Partners

Beckwood Manor One Limited Partnership

 

We have audited the accompanying balancesheets of Beckwood Manor One Limited Partnership, RD Project No.03-025-710677259 (the Partnership), as of December 31, 2000 and 1999 and therelated statements of profit (loss), changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withU.S. generally accepted auditing standards and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Beckwood Manor One Limited Partnership as of December 31, 2000 and1999, and its results of operations, changes in partners’ equity (deficit), andcash flows for the years then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 14, 2001 on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants. Thatreport is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Decro Nordhoff, L.P.

 

We have audited the accompanying balancesheets of Decro Nordhoff, L.P. as of December 31, 2000 and 1999, and therelated statements of operations, partners’ equity (deficit) and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Decro Nordhoff, L.P. as of December 31, 2000 and 1999, and theresults of its operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended, in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 13 and 14 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Escher SRO Project, L.P.

(HUD Project No. NJ-39-K087-020-2)

 

We have audited the accompanying balancesheets of Escher SRO Project, L.P. (HUD Project No. NJ-39-K087-020-2) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’capital and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withauditing standards generally accepted in the United States of America andGovernment Auditing Standards, issued by the Comptroller General of the UnitedStates, Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Escher SRO Project, L.P. (HUD Project No. NJ-39-K087-020-2) as ofDecember 31, 2000 and 1999, and the results of its operations and its cashflows for the years then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 26, 2001 on ourconsideration of Escher SRO Project, L.P.’s internal controls and a reportdated January 26, 2001 on its compliance with specific requirements applicableto major HUD programs.

 

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IndependentAuditor’s Report

 

To the Partners

G. V. A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of G. V. A. Limited Partnership (a Virginia limited partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of G. V. A. Limited Partnership as of December 31, 2000 and 1999, andthe results of its operations and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of the Partnership. Such information has been subjected tothe auditing procedures applied in the audits of thc basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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**IndependentAuditor’s Report**

 

To the Partners

Grayson Manor Limited Partnership

 

l have audited the accompanying balancesheets of Grayson Manor Limited Partnership as of December 31,2000 and 1999,and the related statements of operations, partner’s equity and cash flows forthe years then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration Audit Program. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthc financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Grayson Manor Limited Partnership as of December 31,2000 and 1999,and the results of its operations, changes in partners’ equity, and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

In accordance with *Government Auditing Standards,*Ihave also issued my report dated March 19,2001 on my consideration of GraysonManor Limited Partnership’s internal control over financial reporting and on mytests of its compliance with certain provisions of laws and regulations.

 

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**IndependentAccountants’ Report**

 

To The Partners

M.B. Apartments Associates, Ltd.

 

We have audited the accompanying balancesheets of M.B. Apartments Associates, Ltd. (A Limited Partnership) as of December31, 2000 and 1999, and the related statements of operations, partners’ equityand cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of M.B. Apartments Associates, Ltd. (A Limited Partnership) as ofDecember 31,2000 and 1999, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 13 is presented for the purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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To the Partners

Meridian Housing, L.P.

Meridian, Mississippi

 

We have audited the accompanying balancesheet of Meridian Housing, L.P. (a Mississippi limited partnership), RHSProject No. 28-038-0640893892 as of December 31, 2000, and the relatedstatements of operations, partners’ capital (deficit) and cash flows for theyear then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit. The financial statements of MeridianHousing, L.P. as of December 31, 1999, were audited by other auditors whosereport dated February 9, 2000 expressed an unqualified opinion on thosestatements.

 

We conducted our audit in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Meridian Housing, L.P., and the results of its operations and itscash flows for the year then ended in conformity with generally acceptedaccounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation is presented for purposes of additional analysis and is not arequired part of the basic financial statements. We have prepared the MultipleFamily Housing Borrower Balance Sheet (RHS Form RD 1930-8) and the MultipleFamily Housing Project Budget (RHS Form RD 1930-7). Such information has beensubjected to the audit procedures applied in the audit of the basic financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

New Devonshire II Limited Partnership

(an Ohio Limited Partnership)

London, Ohio

 

We have audited the accompanying balancesheets of New Devonshire II Limited Partnership (an Ohio Limited Partnership),RD Project No. 41-049-311449843, as of December 31, 2000 and 1999, and therelated statements of operations, changes m partners’ equity (deficit) and cashflows for the years then ended. These financial statements are theresponsibility of the management of New Devonshire II Limited Partnership. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards, *Government Auditing Standards,*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program”. Those standardsrequire that we plan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of New Devonshire II Limited Partnership as of December 31. 2000 and1999, and the results of its operations, the changes in partners’ deficit andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 16, 2001, on our consideration of NewDevonshire II Limited Partnership’s internal control and a report datedFebruary 16, 2001, on its compliance with laws and regulations.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying information included in the report (shown on pages l 1 to 18) ispresented for the purpose of additional analysis and is not a required part ofthe basic financial statements of New Devonshire II Limited Partnership.

 

Such information has been subjected to theauditing procedures applied in the audit of the basic financial statements,and, in our opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

New Devonshire West Limited Partnership

(an Ohio Limited Partnership)

West Jefferson. Ohio

 

We have audited the accompanying balancesheets of New Devonshire West Limited Partnership (an Ohio LimitedPartnership), RD Project No. 41-049-311449844. as of December 3 l, 2000 and1999, and the related statements of operations, changes in partners’ equity{deficit) and cash flows for the years then ended. These financial statementsare the responsibility of the management of New Devonshire West LimitedPartnership. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. *Government Auditing Standards*issued bythe Comptroller General of the United States. and the U.S. Department ofAgriculture. Farmers Home Administration “Audit Program”. Those standardsrequire that we plan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of New Devonshire West Limited Partnership as of December 31, 2000 and1999, and the results of its operations, the changes in partners’ equity(deficit) and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

In accordance with *Government Auditing Standards*wehave also issued a report dated February 16, 2001, on our consideration of NewDevonshire West Limited Partnership’s internal control and a report datedFebruary 16, 2001, on its compliance with laws and regulations.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying information included in the report (shown on pages 11 to 18) ispresented for the purpose of additional analysis and is not a required part ofthe basic financial statements of New Devonshire West Limited Partnership. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements, and, in our opinion, is fairly stated in allmaterial respects in relation to the financial statements taken as a whole.

 

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Independent Auditor’s Report

 

To the Partners

Powell Valley Limited Partnership

 

I have audited the accompanying balancesheets of Powell Valley Limited Partnership as of December 3 l, 2000 and 1999,and the related statements of operations, partners’ equity and cash flows forthe years then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on these financialstatements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration Audit Program. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Powell Valley Limited Partnership as of December 31, 2000 and 1999,and the results of its operations, changes in partners’ equity, and its cashflows for the years then ended in conformity, with generallyaccepted accounting principles.

 

In accordance with *Government Auditing Standards,*Ihave also issued my report dated March 19, 2001 on my consideration of PowellValley Limited Partnership’s internal control over financial reporting and onmy tests of its compliance with certain provisions of laws and regulations.

 

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IndependentAuditor’s Report

 

To the Partners

V. V. A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of V. V. A. Limited Partnership (a Virginia limited partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of V. V. A. Limited Partnership as of December 31, 2000 and 1999 andthe results of its operations and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of the Partnership. Such information has been subjected tothe auditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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IndependentAuditor’s Report

 

To the Partners

W. P. V. A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of W. P. V. A. Limited Partnership (a Virginia limited partnership) asof December 31, 2000 and 1999, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythc Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in ali material respects, the financialposition of W. P. V. A. Limited Partnership as of December 31, 2000 and 1999,and tile results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basic financialstatements of the Partnership. Such information has been subjected to theauditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

AHAB Project One, L.P.

 

I have audited the accompanying balancesheets of AHAB Project One, L.P. as of December 31, 2000 and 1999, and therelated statements of operations, partners’ equity (deficit) and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of AHAB Project One, L.P. as of December 31, 2000 and 1999, and theresults of its operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 16 and 17 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Angelou Associates, L. P.

New York, New York

 

We have audited the accompanying balancesheet of Angelou Associates, L. P- (a New York State limited partnership) as ofDecember 31, 2000, and the related statements of operations, cash flows, andpartners’ capital, and the supplementary information included for the year thenended. These financial statements are the responsibility of the Company’smanagement. Our responsibility is to express art opinion on these financialstatements based on our audit. The financial statements of Angelou Associates,L. P. as of December 31, 1999, were audited by other auditors whose reportdated March 1, 2000, expressed an unqualified opinion on those financialstatements.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Angelou Associates, L. P. as of December 31, 2000, and the resultsof its operations and its cash flows for the year then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The accompanyingsupplementary information is presented for the purposes of additional analysisand is not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all material respectsin relation to the basic financial statements taken as a whole.

 

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**Reportof Independent Accountant**

 

To the Partners of CR Housing Associates,L.P.

 

I have audited the accompanying balancesheets of CR HOUSING ASSOCIATES, L.P. (the “Partnership”) as of December 31,2000 and 1999, and the related statements of operations, partners’ capital andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audit provides a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in ail material respects, the financialposition of CR HOUSING ASSOCIATES, L.P. as of December 31, 2000 and 1999, andthe results of it operations and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 10 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Holly Heights Apartments, L.P.

 

We have audited the accompanying balancesheets of Holly Heights Apartments, L.P. as of December 31, 2000 and 1999, andthe related statements of operations, partners’ equity and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Holly Heights Apartments, L.P. as of December 31, 2000 and 1999,and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 14 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements, suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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INDEPENDENTAUDITORS’REPORT

 

TO THE PARTNERS OF 1374 BOSTON ROAD LIMITEDPARTNERSHIP

 

We have audited the accompanying balancesheet of 1374 BOSTON ROAD LIMITED PARTNERSHIP as of December 31, 2000, and therelated statements of operations, changes in partners’ capital and cash flowsfor the year then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

We conducted our audit in accordance withauditing standards generally accepted in the United States of America. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of 1374 BOSTON ROAD LIMITED PARTNERSHIP as of December 31, 2000, andthe results of its operations and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

BIENVILLE II APARTMENTS

 

We have audited the accompanying balance sheets of BIENVILLE IIAPARTMENTS, RHS PROJECT NO.: 22-007-721280566 as of December 31, 2000 and 1999and the related statements of operations, changes in partners’ equity (deficit)and cash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in ail material respects, the financialposition of BIENVILLE II APARTMENTS as of December 31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 16 through 24, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 12, 2001 on ourconsideration of BIENVILLE II APARTMENTS’s internal control and a report datedFebruary 12, 2001 on its compliance with laws and regulations applicable to thefinancial statements.

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

BLANCHARD II APARTMENTS

 

We have audited the accompanying balancesheets of BLANCHARD II APARTMENTS, RHS PROJECT NO. 22-009-721313034 as ofDecember 31, 2000 and 1999 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of BLANCHARD II APARTMENTS as of December 31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 16 through 24, is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 12, 2001 on ourconsideration of BLANCHARD II APARTMENTS’s internal control and a report datedFebruary 12, 2001 on its compliance with laws and regulations applicable to thefinancial statements.

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

COTTONWOOD APARTMENTS I

 

We have audited the accompanying balancesheets of COTTONWOOD APARTMENTS I, RHS PROJECT NO. 22-005-721313387 as ofDecember 31, 2000 and 1999 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of COTTONWOOD APARTMENTS I as of December31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information presented on pages 16 through 24, is presented for purposesof additional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 10, 2001 on ourconsideration of COTTONWOOD APARTMENTS I’s internal control and a report datedFebruary 10, 2001 on its compliance with laws and regulations applicable to thefinancial statements.

 

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

EVANGELINE PARTNERSHIP

 

We have audited the accompanying balancesheets of EVANGELINE PARTNERSHIP, RHS PROJECT NO.                     22-027-721313386 as of December 31, 2000 and1999 and the related statements of operations, changes in partners’ equity(deficit) and cash flows for the years then ended. These financial statementsare the responsibility of the partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and Government Auditing Standards, issuedby the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of EVANGELINE PARTNERSHIP as of December31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information presentedon pages i8 through 26, is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 20, 2001 on ourconsideration of EVANGELINE PARTNERSHIP’s internal control and a report datedFebruary 20, 2001 on its compliance with laws and regulations applicable to thefinancial statements.

* *

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**IndependentAuditors’ Report**

 

Partners

Fairway II Limited Dividend HousingAssociation

Limited Partnership

Marlette, Michigan

 

We have audited the accompanying balancesheet of Fairway II Limited Dividend Housing Association Limited Partnership,Rural Housing Service Project No. 26-074-0383047638 as of December 31, 2000 and1999, and the related statements of income, partners’ equity and cash flows forthe years then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withauditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in *Government Auditing Standards*issuedby the Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Housing Service Audit Program. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Fairway II Limited Dividend Housing Association Limited Partnershipas of December 31, 2000 and 1999, and the results of its operations, changes inpartners’ equity and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 9, 2001 on our consideration ofFairway II Limited Dividend Housing Association Limited Partnership’s internalcontrol over financial reporting and our tests of compliance with certainprovisions of laws, regulations, contracts and grants.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information presented on pages 11 through 19 is presented forpurposes of complying with the requirements of Rural Housing Service and is nota required part of the basic financial statements. Such information has beensubjected to the audit procedures applied in the audit of the basic financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners of

Fort Bend NHCL.P.

(A Virginia Limited Partnership)

 

We have audited the accompanying balancesheet of Fort BendNHC L.P. as of December 31, 2000, and the relatedstatements of operations,changes in partners’ equity (deficit) andcash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Fort Bend NHC L.P. as of December 31, 2000, and the results of itsoperations and its cash flows for the year then ended in conformity withgenerally accepted accounting principles.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To the Partners

Neighborhood Restorations Limited PartnershipVII

Dresher, Pennsylvania

 

We have audited the accompanying balancesheets of Neighborhood Restorations Limited Partnership VII (a PennsylvaniaLimited Partnership) as of December 31,2000 and 1999, and the related statementof operations, changes in partners’ capital and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe our audits provide a reasonablebasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Neighborhood Restorations Limited Partnership VII as of December31, 2000 and 1999, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

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IndependentAuditor’s Report

 

To the Partners

R.V.K.Y. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balance sheetsof R.V.K.Y. Limited Partnership (a Kentucky limited partnership) as of December31, 2000 and 1999, and the related statements of operations, partners’ equity,and cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards’*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of R.V.K.Y. Limited Partnership as of December 31, 2000 and 1999, andthe results of its operations and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of the Partnership. Such information has been subjected tothe auditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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To The Partners

Sumner House Limited Partnership

 

INDEPENDENT AUDITORS’ REPORT

 

We have audited the accompanying balancesheets of Sumner House Limited Partnership as of December 31, 2000 and 1999,and the related statements of operations and changes in partners’ capital, andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Sumner House Limited Partnership as of December 31, 2000 and 1999,and the results of its operations and cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming all opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 9 and 10 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and is fairly stated inall material respects in relation to the basic financial statements taken as awhole.

 

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To****the Partners

Terraceview Limited Partnership

 

We have audited the accompanyingbalance sheet of Terraceview Limited Partnership as of December 31, 2000 and1999, and the related statements of operations, partners’ equity (deficit) andcash flows for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion these financial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andthe significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Terraceveiw Limited Partnership as of December 31, 2000 and 1999and the results of its operations, changes in partners’ equity (deficit) andcash flows for the year then ended in conformity with generally acceptedaccounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 12 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all material respectsin relation to the basic financial statements taken as a whole.

 

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The Partners

Collins Housing, L.P.

Collins, Mississippi

 

We have audited the accompanying balancesheets of Collins Housing, L.P., RD Case No. 28-0160640864674, as of December31 2000, and 1999, and the related statements of operations, partners’ equity,and cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includedexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also included assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provided a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Collins Housing, L.P. as of December 31, 2000 and 1999, and theresults of its operations and its cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards*andthe Audit Program issued by the United States Department of Agriculture, RuralDevelopment, we have also issued a report dated March 21, 2001, on its compliancewith specific requirements applicable to major RD programs and nonmajor RDprogram transactions.

 

Our audits were made for the purpose offorming an opinion on the financial statements taken as a whole. The supportingdata included on pages 12 through 19 are presented for purposes of additionalanalysis and are not a required part of the financial statements of CollinsHousing, L.P. Such information, except for the current budget and proposedbudget columns on pages 15 through 18, on which we express no opinion, isfairly stated in all material respects in relation to the financial statementstaken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Harbor Pointe/MHT Limited Dividend Housing

Association Limited Partnership

 

We have audited the accompanying balancesheet of Harbor Pointe/MHT Limited Dividend Housing Association LimitedPartnership (a Michigan limited partnership) as of December 31, 2000, and therelated statements of income, partners’ equity and cash flows for the year thenended. These financial statements are the responsibility of the Company’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Harbor Pointe/MHT Limited Dividend Housing Association LimitedPartnership as of December 31, 2000, and the results of its operations and itscash flows for the year then ended, in conformity with generally acceptedaccounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on pages 11 and 12 is presented for purposes of additional analysisand is not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated, in all materialrespects, in relation to the basic financial statements taken as a whole.

 

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To The Partners

Lincoln Hotel Partnership

A California Limited Partnership

600 West Broadway, #1070

San Diego, CA 92101

 

IndependentAuditor’s Report

 

We have audited the accompanying balancesheets of Lincoln Hotel Partnership, a California Limited Partnership, as ofDecember 31, 2000 and 1999 and the related statements of operations andpartners’ capital and statements of cash flews for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Lincoln Hotel Partnership, a California Limited Partnership, as ofDecember 31, 2000 and 1999, and the results of operations and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Lutkin Bayou Apartments, LP

Drew Mississippi

 

 

We have audited the accompanying balancesheets of Lutkin Bayou Apartments, LP (a Mississippi limited partnership), RHSProject No. 28-083-640863241 as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ capital (deficit) and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Lutkin Bayou Apartments, LP, and the results of its operations andits cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for the purposes offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information is presented for purposes of additional analysis andis not a required part of the basic financial statements. We have prepared theMultiple Family Housing Borrower Balance Sheet (RHS FORM RD 1980-8) and theMultiple Family Housing Project Budget (RHS FORM RD 1980-7). Such informationhas been subjected to the audit procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To The Partners

Northway Drive, Ltd.

Bryan, Texas

 

We have audited the accompanying balancesheets of Northway Drive, Ltd. - (A Texas Limited Partnership) as of December31, 2000 and 1999, and the related statements of income, partners’ equity andcash flows for the years ended December 31, 2000 and 1999.These financialstatements are the responsibility of the Partnership’s management. Our responsibilityis to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withGenerally Accepted Auditing Standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the balancesheet is free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the balance sheet. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall balance sheetpresentation. We believe that our audits provide a reasonable basis for ouropinion.

 

In our opinion, the balance sheet referred toabove presents fairly, in all material respects, the financial position ofNorthway Drive, Ltd. - (A Texas Limited Partnership) as of December 31, 2000and 1999, in conformity with Generally Accepted Accounting Principles

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

Bellwood Four Limited Partnership

 

We have audited the accompanying balancesheets of Bellwood Four Limited Partnership, (the Partnership), as of December31, 2000 and 1999 and the related statements of profit (loss), changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withU.S. generally accepted auditing standards and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Bellwood Four Limited Partnership as of December 31, 2000 and 1999,and its results of operations, changes in partners’ equity (deficit), and cashflows for the years then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 16, 2001 on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.That report is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

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Independent Auditors’ Report

 

To the Partners

Bowie Apartments, Ltd.

 

We have audited the accompanying balancesheets of Bowie Apartments, Ltd. (a limited partnership), RD Project No.50-069-0752627345-01-7, as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ equity and cash flows for the years endedDecember 31, 2000 and 1999. These financial statements are the responsibilityof the partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Bowie Apartments, Ltd., RD Project No. 50-069-0752627345-01-7, asof December 31, 2000 and 1999, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on Page 1-19 and 1-20 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the audit procedures appliedin the audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 9, 2001 on ourconsideration of Bowie Apartments, Ltd’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. This report is an integral part of an auditperformed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of our audit.

 

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To the Partners

C.V.V.A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of C.V.V.A. Limited Partnership (a Virginia limited partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of C.V.V.A. Limited Partnership as of December 31, 2000 and 1999, andthe results of its operations and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of the Partnership. Such information has been subjected tothe auditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners

Graham Aoartments, Ltd.

 

We have audited the accompanying balancesheets of Graham Apartments, Ltd. (a limited partnership), RD Project No.51-52-752663159-01-1, as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended. These financial statements are the responsi­bility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in Government Auditing Standards, issued by theComptroller General of the United States. Those standards require that we planand perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Graham Apartments, Ltd., RD Project No. 51-52-752663159-01-1, as ofDecember 31, 2000 and 1999, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on Page 1-20 is presented for purposes of additionalanalysis and is not a required part of the basic financial state­ments. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 23, 2001 on ourconsideration of Graham Apartments, Ltd’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. This report is an integral part of an auditperformed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of our audit.

 

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INDEPENDENT AUDITOR’S REPORT

 

To The Partners

Hillside Terrace Associates, L.P.

 

We have audited the accompanying balancesheet of Hillside Terrace Associates, L.P. (a Limited Partnership) as ofDecember 31, 2000 and 1999 and the related statements of operations andpartners’ capital (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Hillside Terrace Associates, L.P. as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

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**IndependentAuditor’s Report**

 

To the Partners

K. G. V. A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of K. G. V. A. Limited Partnership (a Virginia limited partnership) asof December 31, 2000 and 1999, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of K. G. V. A. Limited Partnership as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information listed in the table of contents is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of the Partnership. Such information has been subjected tothe auditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Members

Linden Partners II, LLC

 

We have audited the accompanying balancesheets of Linden Partners II, LLC (a Nebraska Limited Liability Company) as ofDecember 31, 2000 and 1999, and the related statements of operations, members’equity (deficit) and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Linden Partners II, LLC as of December 3l, 2000 and 1999, and theresults of its operations, and changes in members’ equity (deficit) and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 12 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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Independent Auditor’s Report

 

**Tothe Partners**

Mesa Grande Apartments, Limited Partnership

Irvine, California

 

I have audited the accompanying balance sheetof Mesa Grande Apartments, Limited Partnership as of December 31, 2000, and therelated statements of operations, changes in partners’ capital, and cash flowsfor the year then ended. These financial statements are the responsibility ofthe Partnership’s management. My responsibility is to express an opinion onthese financial statements based on my audit.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amount and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.I believe that my audit provides a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Mesa Grande Apartments, Limited Partnership at December 31**,**2000,and thc results of its operations and cash flows for the year then ended inconformity with generally accepted accounting principles.

 

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Independent Auditor’s Report 

 

To the Partners

**SunriseHomes Apartments, Limited Partnership**

Irving, California

 

I have audited thc accompanying balancesheetof Sunrise Homes Apartments, Limited Partnership as of December 31, 2000, andthe related statements of Operations, changes in partners’ capital, and cashflows for thc year then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards required that I plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing tire accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audit provides a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Sunrise Homes Apartments, Limited Partnership at December 31, 2000,and thc remits of its operations and cash flows for the year then ended inconformity with generally accepted accounting principles.

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

Pyramid One Limited Partnership

 

We have audited the accompanying balancesheet of Pyramid One Limited Partnership, (the Partnership), as of December 31,2000 and the related statements of profit (loss), changes in partners’ equity(deficit) and cash flows for the year then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance withU.S. generally accepted auditing standards and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Pyramid One Limited Partnership as of December 31, 2000, and itsresults of operations, changes in partners’ equity (deficit), and cash flowsfor the year then ended in conformity with U.S. generally accepted accountingprinciples.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated March 2, 2001 on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.That report is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

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Independent Auditors’ Report

 

To the Partners

Nocona Apartments, Ltd.

 

We have audited the accompanying balancesheets of Nocona Apartments, Ltd. (a limited partnership), RD Project No:50-069-0752685663-02-2 as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in Government Auditing Standards, issued by theComptroller General of the United States. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly,in all material respects, the financial position of Nocona Apartments, Ltd. RDProject No.: 50-069-0752685663-02-2 as of December 31, 2000 and 1999, and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on Page 1-20 and 1-21 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 5, 2001 on ourconsideration of Nocona Apartments, Ltd.’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts and grants. This report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be read inconjunction with this report in considering the results of our audit.

 

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INDEPENDENT AUDITORS’ REPORT

 

The Partners

Canton Housing One, L.P.

Jackson, Mississippi

 

We have audited the accompanying balancesheets of Canton Housing One, L.P., a Mississippi limited partnership, FmHAProject No. 28-045-0640886062 01-8, as of December 31, 2000 and 1999, and therelated statements of income (loss), partners’ capital, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Canton Housing One, L.P., FmHA Project No. 28-045-0640886062 01-8,as of December 31, 2000 and 1999, and the results of its operations and itscash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 6, 2001, on our consideration of thePartnership’s internal control and a report dated February 6, 2001, on itscompliance with specific requirements applicable to major FmHA programs.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying financial information included on pages 14 through 19 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information, except for file current budget andproposed budget columns in Part I and II and file information in Part IVincluded on pages 14 through 17 on which we express no opinion, has beensubjected to the auditing procedures applied in file audits of the basicfinancial statements, and in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

Thc Partners

Canton Housing Two, L.P.

Jackson, Mississippi

 

We have audited the accompanying balancesheet of Canton Housing Two, L.P., a Mississippi limited partnership, FmHAProject No. 28-045-0640886061 01-5, as of December 31, 2000 and 1999, and therelated statements of income (loss), partners’ capital, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standard*issued by theComptroller General of the United States. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in alt material respects, the financialposition of Canton Housing Two, L.P., FmHA Project No. 28-045-0640886061 01-5,as of December 31, 2000 and 1999, and the results of its operations and itscash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 7, 2001, on our consideration of thePartnership’s internal control and a report dated February 7, 2001, on itscompliance with specific requirements applicable to major FmHA programs.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying financial information included on pages 13 through 20 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information, except for the current budget andproposed budget columns in Part I and II and the information in Part IVincluded on pages 13 through 17, on which we express no opinion, has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements, and in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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INDEPENDENT AUDITORS’ REPORT

 

The Partners

Canton Housing Three, L.P.

Jackson, Mississippi

 

We have audited the accompanying balancesheets of Canton Housing Three, L.P., a Mississippi limited partnership, FmHAProject No. 28-045-0640886063 04-2, as of December 31, 2000 and 1999, and therelated statements of income (loss), panners’ capital, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audit in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Canton Housing Three, L.P., FmHA Project No. 28-045-064088606304-2, as of December 31, 2000 and 1999, and the results of its operations andits cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 9, 2001 on our consideration of thePartnership’s internal control and a report dated February 9, 2001, on itscompliance with specific requirements applicable to major FmHA programs.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying financial information included on pages 12 through 19 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information, except for the current budget and proposedbudget columns in Part I and II and the information in part IV included onpages 12 through 16, on which we express no opinion, has been subjected to theauditing procedures applied in the audits of the basic financial statements,and in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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INDEPENDENT AUDITORS’ REPORT

 

The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

 

We have audited the accompanying balancesheets of Canton Housing Four, L.P., a Mississippi limited partnership, FmHAProject No. 28-045-0640886064 02-0, as of December 31, 2000 and 1999, and therelated statements of income (loss), partners’ capital, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Canton Housing Four, L.P., FmHA Project No. 28-045-0640886064-02-0,as of December 31, 2000 and 1999, and the results of its operations and itscash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 9, 2001, on our consideration of thePartnership’s internal control and a report dated February 9, 2001, on itscompliance with specific requirements applicable to major FmHA programs.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying financial information included on pages 12 through 19 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information, except for the current budget andproposed budget columns in Part I and II and the information in Part IVincluded on pages 12 through 19, on which we express no opinion, has been subjectedto the auditing procedures applied in the audits of the basic financialstatements, and in our opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Ellisville Housing, L.P.

West Point, Mississippi

 

We have audited the accompanying balancesheets of Ellisville Housing, L.P. (a Mississippi limited partnership), RHSProject No. 28-034-0640864667 as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ capital (deficit) and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in ail material respects, the financialposition of Ellisville Housing, L.P., and the results of its operations and itscash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information is presented for purposes of additional analysis andis not a required part of the basic financial statements. We have prepared theMultiple Family Housing Borrower Balance Sheet (RHS Form RD 1930-8) and theMultiple Family Housing Project Budget (RHS Form RD 1930-7). Such informationhas been subjected to the audit procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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Independent Auditor’s Report

 

To the Partners of

Eagles RidgeTerrace, L. P.

Decatur, Texas

 

I have audited the accompanying balancesheets of Eagles Ridge Terrace, L. P. as of December 31, 2000 and 1999, and therelated statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statements referredto above present fairly, in all material respects, the financial position ofEagles Ridge Terrace, L. P. as of December 31, 2000 and 1999 and the results ofits operations, changes in partners’ capital and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 1-16 and 1-17 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Hattiesburg Housing, LP

Jackson, Mississippi

 

We have audited the accompanying balancesheets of Hattiesburg Housing, LP (a Mississippi limited partnership), RHSProject No. 28-018-640864668 as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ capital and cash flows for the years thenended. These financial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Hattiesburg Housing, LP, and the results of its operations and itscash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information is presented for purposes of additional analysis andis not a required part of the basic financial statements. We have prepared theMultiple Family Housing Borrower Balance Sheet (RHS FORM RD 1930-8) and theMultiple Family Housing Project Budget (RHS FORM RD 1930-7). Such informationhas been subjected to the audit procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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Independent Auditor’s Report

 

To tile Partners of

Henderson Terrace, L. P.

Bridgeport, Texas

 

I have audited the accompanying balancesheets of Henderson Terrace, L. P. as of December 31, 2000 and 1999, and therelated statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility o[‘thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audits to obtain reasonable assurance about Whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of’ Henderson Terrace, L. P. as of December 3 l. 2000 and 1999 and theresults of its operations, changes in partners’ capital and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. The supplementalinformation on pages I-16 and 1-17 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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INDEPENDENT AUDITORS’ REPORT

 

To the partners

Hurricane Hills II LC

 

I have audited the accompanying balancesheets of Hurricane Hills II LC as of December 31, 2000, and the relatedpartners’ equity for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examination, ona test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audits provided areasonable basis for our opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Hurricane Hills II LC as of December 31, 2000, and the results cfits operations, changes in Partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

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Independent Auditor’s Report

 

To the Partners of

Lakeview Little Elm, L. P.

Little Elm. Texas

 

I have audited the accompanying balancesheets of Lakeview Little Elm, L. P. as of December 31, 2000 and 1999, and therelated statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility’ of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements, gal audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis tbr my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in ail material respects, the financialposition of Lakeview Little Elm, L. P as of December 3 l, 2000 and 1999 and theresults of its operations, changes in partners’ capital and cash flow’s for theyears then ended in conformity with generally accepted accounting principles

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages I-16 and I-17 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as whole.

 

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Independent Auditor’s Report

 

To the Partners of

MesquiteTrails, L. P.

Jacksboro, Texas

 

I have audited the accompanying balancesheets of Mesquite Trails. L.P. as of December 31, 2000 and 1999. and therelated statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

I conducted my audits in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly’, in all material respects, the financialposition of Mesquite Trails, L. P. as of December 3l, 2000 and 1999 and theresults of its operations, changes in partners’ capital and casti flows for theyears then ended in conformity with generally accepted accounting principles.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages I-16 and I-17 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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**IndependentAuditor’s Report**

 

To the Partners

N. M. V. A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of N. M. V. A. Limited Partnership (a Virginia limited partnership) asof December 31, 2000 and 1999, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Our responsibilityis to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates****made by management, as well as evaluatingthe overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of N. M. V. A. Limited Partnership as of December 31, 2000and 1999, and the results of its operations and its cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2001, on our consideration of thePartnership’s internal control over financial reporting and our tests****ofits compliance with certain provisions of laws, regulations, contracts, andgrants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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Independent Auditor’s Report

 

To the Partners of

Pilot Point Apartments, L. P.

Pilot Point, Texas

 

I have audited the accompanying balancesheets of Pilot Point Apartments. L. P as of’ December 31, 2000 and 1999 andthe related statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards Those standards require that l plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  I believethat my audits provide a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Pilot Point Apartments, L.P. as of December 31, 2000 and 1999 andthe results of its operations, changes in partners’ capital and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for the purpose  of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages l-16 andl-17 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. Such information has been subjected tothe auditing procedures applied in the audit of the basic financial statementsand, in my opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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Independent Auditor’s Report

 

To the Partners of

Seagraves Apartments, L.P.

Ferris, Texas

 

I have audited the accompanying balance sheetof Seagraves Apartments, L.P. as of December 31, 2000, and the accompanyingstatements of operations, partners’ capital and cash flows for the year thenended. Those statements are the responsibility of the partnership’s management.My responsibility is to express an opinion on the financial statements based onmy audit.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that I andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence, supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audit provides a reasonablebasis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Seagraves Apmartments, L.P. as of December 31, 2000 and the resultsof its operations, changes in partners’ capital and cash flows for the yearthen ended in conformity with generally accepted accounting principles.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on pages I-16 and I-17 is presented for purposes of additional analysisand is not a required part of basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole,

 

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INDEPENDENT AUDITOR’S REPORT

 

Partners

Sencit Hampden Associates, L.P.

 

 

 

We have audited the accompanying balancesheets of SENCIT HAMPDEN ASSOCIATES, **L.P., ROTH VILLAGE TOWNHOMES,**PHFA ProjectNo. 0-546, as of December 31, 2000 and 1999, and the related statements ofprofit and loss, partners’ equity and cash flows for the years then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits in accordance with generally accepted auditingstandards. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Sencit Hampden Associates, L.P. as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Silver Creek/MHT Limited Dividend Housing

Association Limited Partnership

 

We have audited the accompanying balancesheet of Silver Creek/MHT Limited Dividend Housing Association LimitedPartnership (a Michigan limited partnership) as of December 31, 2000, and therelated statements of income, partners’ equity and cash flows for the year thenended. These financial statements are the responsibility of the Company’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Silver Creek/MHT Limited Dividend Housing Association LimitedPartnership as of December 31, 2000, and the results of its operations and itscash flows for the year then ended, in conformity with generally accepted accountingprinciples.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on pages 11 and 12 is presented for’ purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in our opinion, is fairly stated, in allmaterial respects, in relation to the basic financial statements taken as awhole.

 

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**IndependentAuditor’s Report**

 

 

To the Partners

Indiana Development Limited Partnership

Novi, Michigan

 

We have audited the accompanying balancesheets of Indiana Development Limited Partnership as of December 31, 2000 and1999 and the related statements of operation, partner capital and cash flowsfor the years then ended. These financial statements are the responsibility ofIndiana Development Limited Partnership’s management. Our responsibility is toexpress an opinion on the financial statement based upon our audit.

 

We conducted our audits in accordance withgenerally accepted auditing standards. These standards require that we plan andperform the audit to obtain reasonable assurance whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statements presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Indiana Development Limited Partnership as of December 31, 2000 and1999 and the results of its operations and its cash flow for the years thenended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 12, 13 and 14 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as whole.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners of Martinsville-I, Ltd.

 

I have audited the accompanying balance sheetof Martinsville-I, Ltd. (a Kentucky limited partnership) as of December 31,2000 and the related statements of operations, changes in partners’ capital andcash flows for the year then ended. The financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit in accordance withgenerally accepted auditing standards. Those standards require that I plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amount and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by the Partnership’s general partner and contractedmanagement agent, as well as evaluating the overall financial statementpresentation. I believe that my audit provides a reasonable basis for myopinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Martinsville-I, Ltd. at December 31, 2000, and its operations,changes in partners’ capital and cash flows for the year then ended inconformity with generally accepted accounting principles.

 

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**Auditors’report**

 

To the****Partners

Parkside Plaza Associates, L. P.

New York, New York

 

We have audited the accompanying balancesheet of Parkside Plaza Associates, L. P. (a New York State limitedpartnership) as of December 31, 2000. This financial statement is theresponsibility of the Company’s management. Our responsibility is to express anopinion on this financial statements based on our audit. The balance sheetof  Parkside Plaza Associates, L.P. wasaudited by other auditors whose report dated February 3, 2000, expressed anunqualified opinion on that balance sheet.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the balancesheet is free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the balance sheet. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall balance sheetpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the balance sheet referred toabove presents fairly, in all material respects, the financial position ofParkside Plaza Associates, L. P. as of December 31, 2000 and is in conformitywith generally accepted accounting principles.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

Pyramid Four Limited Partnership

 

We have audited the accompanying balancesheet of Pyramid Four Limited Partnership, (the Partnership), as of December31, 2000 and the related statements of profit (loss), changes in partners’equity (deficit) and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit in accordance withU.S. generally accepted auditing standards and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement, an audit includesexamining on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Pyramid Four Limited Partnership as of December 31, 2000, and itsresults of operations, changes in partners’ equity (deficit), and cash flowsfor the year then ended in conformity with U.S. generally accepted accountingprinciples.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 19, 2001 on our consideration of thePartnership’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.That report is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Bradford Group Partners of Jefferson County,L.P.

 

We have audited the accompanying balancesheet of Bradford Group Partners of Jefferson County, L.P. (a limitedpartnership) as of December 31, 2000, and the related statements of income(loss), partners’ equity and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Bradford Group Partners of Jefferson County, L.P. as of December31, 2000, and the results of its operations, changes in partners’ equity andcash flows for the year then ended, in conformity with generally acceptedaccounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners of

NHC Partnership 5, L.P.

(A Virginia Limited Partnership)

 

We have audited the accompanying balancesheet of NHC Partnership 5, L.P. as of December 31, 2000, and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the year then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of NHC Partnership 5, L.P. as of December 31, 2000, and the results ofits operations and its cash flows for the year then ended in conformity withgenerally accepted accounting principles.

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To the Partners

Belmont Affordable Housing II, L.P.

Springfield, Pennsylvania

 

We have audited the accompanying balancesheets of Belmont Affordable Housing II, L.P. (a Pennsylvania LimitedPartnership) as of December 31, 2000 and 1999, and the related statements ofoperations and other comprehensive loss, changes in partners’ capital and cashflows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe our audits provide a reasonablebasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Belmont Affordable Housing II, L.P. as of December 31, 2000 and1999, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

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Independent Auditor’s Report

 

Partners

RHP 96-1 Limited Partnership

Novi, Michigan

 

We have audited the accompanying balancesheets of RHP 96-1 Limited Partnership as of December 31, 2000 and 1999 and therelated statements of operations, partner capital and cash flows for the yearsthen ended. These financial statements are the responsibility of RHP 96-1Limited Partnership’s management. Our responsibility is to express an opinionon the financial statement based upon our audit.

 

We conducted our audits in accordance withgenerally accepted auditing standards. These standards require that we plan andperform the audit to obtain reasonable assurance whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in tile financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statements presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of RHP 96-1 Limited Partnership as of December 31, 2000 and 1999 andthe results of its operations and its cash flow for the years then ended inconformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 12 and 13 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing procedures appliedin the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as whole.

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

New Caney Housing II, Ltd.

 

We have audited the accompanying balancesheet of New Caney Housing II, Ltd. as of December 31, 2000 and 1999, and therelated statements of operations, partners’ equity (deficit), and cash flow forthe years ended December 31, 2000 and 1999. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the accompanying financialstatements referred to above present fairly, in all material respects, thefinancial position of New Caney Housing II, Ltd. as of December 31, 2000 and1999, and the results of its operation and its cash flows for the year endingDecember 31, 2000 and 1999, in conformity with generally-accepted accountingprinciples.

 

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Ladies and Gentlemen:

 

We have audited and reported on the financialstatements of Aloha Housing Limited Partnership in which Boston Capital TaxCredit Fund IV, L.P. (Series 36) is an investor limited partner, for the yearended December 31, 2000 and have issued our report thereon. Ill connectiontherewith, we represent the following:

 

 

1.                That we are aware that the financial statementsof Aloha Housing Limited Partnership which we have audited will be included inthe financial statements on which you will report, and that our reporttherewith will be referred to in your report;

 

2.                That we are independent of each partnership underthe requirements of the Securities Exchange Commission; and

 

3.                That we are independent of each partnership underthe requirements of the American Institute of Certified Public Accountants.

 

Thank you for your time. Please contact me ifyou have any questions.

 

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**IndependentAuditors’ Report**

 

 

To The Partners

Riverview Bend Limited Partnership

Crystal City, Missouri

 

We have audited the accompanying balancesheet of Riverview Bend Limited Partnership (Riverview Bend Apartments, ProjectNo. 085-35329-PM-L8) as of December 31, 2000, and the related statements ofprofit and loss, partners’ equity and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards and *Government Auditing Standards,*issued bythe Comptroller General of the United States. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Riverview Bend Limited Partnership as of December 31, 2000, and theresults of its operations and its cash flows for the year then ended inconformity with generally accepted accounting principles.

 

Our audit was conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying supplementary information shown on pages 17 to 20 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

In accordance with *Government Auditing Standards*andthe *ConsolidatedAudit Guide for Audits of HUD Programs*issued by the U.S. Departmentof Housing and Urban Development, we have also issued a report dated January23, 2001 on our consideration of Riverview Bend Limited Partnership’s internalcontrol and reports dated January 23, 2001 on its compliance with specificrequirements applicable to major HUD programs and specific requirementsapplicable to Fair Housing and Non­-Discrimination. Those reports are anintegral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

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IndependentAuditors’ Report

 

Partners

Senior Suites Chicago Washington Heights

Limited Partnership

Chicago, Illinois

 

We have audited the accompanying balancesheet of Senior Suites Chicago Washington Heights Limited Partnership (anIllinois Limited Partnership) as of December 31, 2000, and the relatedstatements of operations, changes in partners’ capital and cash flows for theyear then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Senior Suites Chicago Washington Heights Limited Partnership as ofDecember 31, 2000, and the results of its operations and its cash flows for theyear then ended, in conformity with generally accepted accounting principles.

 

Our audit was conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theschedule of other operating expenses on page 9 is presented for the purpose ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

We conducted our audits in accordance withgenerally accepted auditing standards. These standards require that we plan andperform the audit to obtain reasonable assurance whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statements presentation. We believe that our audit provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Baldwin Villas Limited Dividend Housing Association LimitedPartnership as of December 31, 2000 and 1999 and the results of its operationsand its cash flow for the years

 

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then ended in conformity with generallyaccepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pagc l3 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as whole.

 

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Independent Auditor’s Report

 

February 1, 2001

 

Partners

Baldwin Villas Limited Dividend

Housing Association Limited Partnership

Novi, Michigan

 

We have audited the accompanying balancesheets of Baldwin Villas Limited Dividend Housing Association Limited Partnershipas of December 31, 2000 and 1999 and the related statements of operations,partner capital and cash flows for the years then ended. These financialstatements are the responsibility of Baldwin Villas Limited Dividend HousingAssociation Limited Partnership’s management. Our responsibility is to expressan opinion on the financial statement based upon our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards. These standards require that we plan andperform the audit to obtain reasonable assurance whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statements presentation. We believe that our audit provide areasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Baldwin Villas Limited Dividend Housing Association LimitedPartnership as of December 31, 2000 and 1999 and the results of its operationsand its cash flow for the years then ended in conformity with generallyaccepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page l3 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as whole.

 

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To the Partners

Bennetts Pointe LimitedPartnership

 

I have audited the accompanyingbalance sheets of Bennetts Pointe Limited Partnership as of December 31, 1999and 1998, and the related statements of operations, partners’ equity and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States, and the U.S.Department of Agriculture, Farmers Home Administration Audit Program. Thosestandards require that I plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.I believe that my audits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Bennetts Pointe Limited Partnership as of December 31,1999 and 1998, and the results of its operations, changes in partners equity,and its cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued my report dated March 10,2000 on myconsideration of Bennetts Pointe Limited Partnership’s internal control overfinancial reporting and on our tests of its compliance with certain provisionsof laws and regulations.

 

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To the Partners

Breeze Cove Limited Partnership

Madison, Wisconsin

 

 

We have audited the balancesheets of Breeze Cove Limited Partnership as of December 31, 1999 and 1998, andthe related statements of loss, partners’ equity and cash flows for the yearsthen ended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. Art audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Breeze Cove Limited Partnership as of December 31, 1999and 1998, and the results of its operations, changes in partners’ equity andits cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

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To The Partners

College Greene RentalAssociates, L.P.

 

 

We have audited theaccompanying balance sheet of College Greene Rental Associates, L.P. (a LimitedPartnership) as of December 31, 1999 and 1998, and the related statementsoperations, changes in partners’ capital (deficit) and cash flows for the yearsthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement, An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly in all material respects, thefinancial position of College Greene Rental Associates, L.P. as of December 31,1999 and 1998, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

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To The Partners Of

EAST DOUGLAS APARTMENTS LIMITEDPARTNERSHIP

(An Illinois Limitedpartnership)

 

 

We have audited theaccompanying balance sheets of EAST DOUGLAS APARTMENTS LIMITED PARTNERSHIP (AnIllinois Limited Partnership) IHDA Development No. HFI/HTF-354 as of December31, 1999 and 1998, and the related statements of operations partners’ equityand cash flows for the years then ended. These financial statements are the responsibility of the partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards, Government AuditingStandards issued by the Comptroller General of the United States and theIllinois Housing Development Authority’s Financial Reporting and AuditGuidelines for Mortgagors of Multifamily Housing Developments.   Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting theamounts and disclosures n the financial statements.   An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, the financialposition of EAST DOUGLAS APARTMENTS LIMITED PARTNERSHIP as of December 31, 1999and 1998, and the results of its operations and its cash flows for the yearsthen ended, in conformity with generally accepted accounting principles.

 

Our audit was conducted for thepurpose of forming an opinion on the basic financial statements of taken as awhole.   The accompanying supplementaryinformation is presented for purposes of additional analysis and is riot arequired part of the basic financial statements of EAST DOUGLAS APARTMENTSLIMITED PARTNERSHIP. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordance with GovernmentAuditing Standards, the Illinois Housing Development Authority’s FinancialReporting and Audit Guidelines for Mortgagors of Multifamily HousingDevelopments and the Consolidated Audit Guide for Audits of HEID programsissued by the U.S. Department of Housing and Urban Development, we have alsoissued a report dated January 21, 2000, on our consideration of EAST DOUGLASAPARTMENTS LIMITED PARTNERSHIP’S internal control structure compliance withspecific requirements applicable to major IHDA-assisted programs and specificrequirements applicable to affirmative fair housing, and specific requirementsapplicable to major IHDA-assisted program transactions.

 

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To the Partners

FLORAL ACRES APARTMENTS II

 

 

We have audited theaccompanying balance sheets of FLORAL ACRES APARTMENTS II, RHS PROJECT NO.22-026721172913 as of December 31, 1999 and 1998 and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended.  These financial statementsare the responsibility of the partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of FLORAL ACRES APARTMENTS II as of December 31, 1999 and1998 and the results of its operations, changes in partners’ equity and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 17 through 25, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 17, 2000 on ourconsideration of FLORAL ACRES APARTMENTS II’s internal control and a reportdated February 17, 2000 on its compliance with laws and regulations applicableto the financial statements.

 

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Shady Lane Seniors Apartments,

A Louisiana Partnership inCommendam

Mansfield, Louisiana

 

 

We have audited theaccompanying balance sheets of Shady Lane Seniors Apartments, A LouisianaPartnership in Commendam (the Partnership) as of December 3 I. 1999 and 1998,and the related statements of income, partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the Standards forFinancial and Compliance Audits contained in Government Auditing Standards issuedby the Comptroller General of the United States. Those standards require thatwe plan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation.  We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Shady Lane Seniors Apartments, A Louisiana Partnership inCommendam as of December 31, 1999 and 1998. and the results of its operationsand its cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated March 3, 2000, on ourconsideration of Shady Lane Seniors Apartments, A Louisiana Partnership inCommendam’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations. contracts and grants.That report is an integral part of an audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our audits.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The accompanying scheduleslisted in the table of contents are presented for the purpose of additionalanalysis and are not a required part of the financial statements of Shady LaneSeniors Apartments, A Louisiana Partnership in Commendam. Such information hasbeen subjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the financial statements taken as a whole.

 

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To the Partners

Virginia Avenue AffordableHousing Limited Partnership

 

 

I have audited the accompanyingbalance sheets of Virginia Avenue Affordable Housing Limited Partnership as ofDecember 31,1999 and 1998, and the related statements of operations, partners’equity and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audit.

 

I conducted my audit inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. I believe that my audit providesa reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Virginia Avenue Affordable Housing Limited Partnership asof December 31, 1999 and 1998, and the results of its operations, the changesin partners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

My audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 14 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners of

Better Homes for HavelockLimited Partnership

(A North Carolina LimitedPartnership)

 

 

We have audited theaccompanying balance sheets of Better Homes for Havelock Limited Partnership (aNorth Carolina Limited Partnership) as of December 31, 1999 and 1998, and therelated statements of operations, changes in partners’ equity (deficit), andcash flows for the years then ended.    These financial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.   An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Better Homes for Havelock Limited Partnership as ofDecember 31, 1999 and 1998, and the results of its operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

The accompanying supplementaryinformation is presented for purposes of additional analysis and is not arequired part of the basic financial statements.   Such information has been subjected to the auditing proceduresapplied in the audits at the basic financial statements and, in our opinion, isfairly stated in all  material respectsin relation to the financial statements taken as a whole.

 

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To the Partners

Black River Run LimitedPartnership

 

We have audited theaccompanying balance sheets of Black River Run Limited Partnership as ofDecember 31, 1999 and 1998, and the related statements of operations partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Black River Run Limited Partnership as of December 31,1999 and 1998, and the results of its operations, changes in partners’ equity,and cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Liveoak Village LimitedPartnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of Liveoak Village Limited Partnership (an Alabamalimited partnership) as of December 31, 1999 and 1998, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Liveoak Village Limited Partnership as of December 31,1999 and 1998, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

Lookout Ridge LimitedPartnership

 

We nave audited theaccompanying balance sheet of Lookout Ridge Limited Partnership as of December31, 1999, and the related statements of operations, partners’ equity and cashflows for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Lookout Ridge Limited Partnership as of December 31, 1999,and the results of its operations, the changes in partners’ equity and cashflows for the year then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 9 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statement and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Pinedale II Limited Partnership

 

We have audited theaccompanying balance sheets of Pinedale II Limited Partnership as of December31, 1999 and 1998, and the related statements of operations, partners equity,and cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management.

 

Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Pinedale II Limited Partnership, as of December 31, 1999and 1998, and the results of its operations, changes in partners’ equity, andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Pumphouse Crossing II LimitedPartnership

 

We have audited theaccompanying balance sheets of Pumphouse Crossing II Limited Partnership as ofDecember 31, 1999 and 1998, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Pumphouse Crossing II Limited Partnership, as of December31, 1999 and 1998, and the results of its operations, changes in partners’equity, and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditin2 proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners of

Kimbark 1200 Associates,Limited Partnership

Longmont, Colorado

 

We have audited theaccompanying balance sheet of Kimbark 1200 Associates, Limited Partnership, FHAProject No. 101-98011, as of December 31,1999, and the related statements ofprofit and loss, changes in partners’ equity and cash flows for the year thenended.  These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis; evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Kimbark 1200 Associates, Limited Partnership FHA ProjectNo. 101-98011, as of December 31, 1999, and the results of its operations andthe changes in its partners’ equity and its cash flows for the year then ended,in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 23, 1999 on ourconsideration of Kimbark 1200 Associates, Limited Partnership, internalcontrols and reports dated February 23, 1999 on its compliance with specificrequirements applicable to major HUD programs, and Fair Housing andNon-Discrimination.

 

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To the Partners Lost TreeLimited partnership

 

I have audited the accompanyingbalance sheets of Lost Tree Limited partnership as of December 31, 1999 and1998, and the related statements of operations, partners’ equity (deficit) andcash flows for the years then ended. These financial statements are the responsibility of the partnership’smanagement.  My responsibility is toexpress an opinion on these financial statements based on my audits.

 

 

I conducted my audits inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.  I believe that my auditsprovide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Lost Tree Limited partnership as of December 31, 1999 and1998, and the results of its operations, changes in partners’ equity (deficit)and cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onpages 14 and 15 is presented for purposes of additional analysis and is not arequired part of the basic financial statements.  Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners of

Roxbury Veterans HousingLimited Partnership

 

We have audited theaccompanying balance sheet of Roxbury Veterans Housing Limited Partnership (aMassachusetts Limited Partnership) as of December 31, 1999, and the relatedstatements of operations, changes in partners’ equity, and cash flows for theyear then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Roxbury Veterans Housing Limited Partnership as ofDecember 31, 1999, and the results of its operations, changes in partners1equity, and cash flows for the year ended in conformity with generally acceptedaccounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedule of operating expenses is presented forpurposes of additional analysis and is not as required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Philadelphia Housing II,Limited Partnership

Philadelphia, Mississippi

 

We have audited theaccompanying balance sheets of Philadelphia Housing II, Limited Partnership (aMississippi limited partnership), RHS Project No. 28-050640808922 as ofDecember 31, 1999 and 1998, and the related statements of operations, partners’capital (deficit) and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Philadelphia Housing II, Limited Partnership, and theresults of its operations and its cash flows for the years then ended inconformity with general accepted accounting principles.

 

Our audits were made for thepurposes of forming an opinion on the basic financial statements taken as awhole.  The supplemental information ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. We have prepared the Multiple Family HousingBorrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family HousingProject Budget (RHS Form RD 1930-7). Such information has been subjected to theaudit procedures applied in the audit of the basic financial statements and, inour opinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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Partners

Colonna Redevelopment CompanyL.P.

Hempstead, New York

 

We have audited theaccompanying balance sheets of Colonna Redevelopment Company L.P. (a New YorkLimited Partnership) (the “Partnership”) as of December 31, 1999 and 1998 andthe related statements of operations, cash flows and partners’ equity for theyears then ended.  These financialstatements are the responsibility of the Partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes’ examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Colonna Redevelopment Company L.P. as of December 31,1999 and 1998, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing procedures appliedin the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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To the Partners

Halls Ferry Apartments, L.P.

 

I have audited the accompanyingbalance sheets of Halls Ferry Apartments, L.P. as of December 31, 1999 and 1998and the related statements of operations, partners’ equity (deficit) and cashflows for the years then ended.  Thesefinancial statements are the responsibility of the partnership’smanagement.  My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Ibelieve that my audits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Halls Ferry Apartments, L.P. as of December 31, 1999 and1998, and the results of its operations, changes in partners’ equity (deficit)and cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onpages 15 and 16 is presented for purposes of additional analysis and is not arequired part of the basic financial statements.  Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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Partners

Ithaca I Limited Partnership

Ithaca, Michigan

 

We have audited theaccompanying balance sheet of Ithaca I Limited Partnership Rural HousingService Project No.26-029-383119117 as of December 31, 1999 and 1998, and therelated statements of income, partners’ equity and cash flows for the yearsended December 31, 1999 and 1998. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards, the standards applicableto financial audits contained in Government Auditing Standards issued by theComptroller General of the United States, and the U.S. Department ofAgriculture, Rural Housing Service Audit Program. Those standards require thatwe plan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Ithaca I Limited Partnership as of December 31, 1999 and1998, and the results of its operations, changes in partner’s equity and itscash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 11, 2000 on ourconsideration of Ithaca I Limited Partnership’s internal control over financialreporting and our tests of compliance with certain provisions of laws andregulations, contracts, and grants.

 

Our audits were conducted forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented on pages 11 through 17 ispresented for purposes of complying with the requirements of Rural HousingService and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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To the Partners

MATHIS APARTMENTS, LTD.

 

 

We have audited theaccompanying balance sheets of MATHIS APARTMENTS, LTD., RHS PROJECT NO .51-005-721010606as of December 31, 1999 and 1998 and the related statements of operations,changes in partners’ equity (deficit) and cash flows for the years thenended.  These financial statements arethe responsibility of the partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of MATHIS APARTMENTS, LTD. as of December 31, 1999 and 1998and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 16 through 24, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 16, 2000 on ourconsideration of MATHIS APARTMENTS, LTD.’s internal control and a report datedFebruary 16, 2000 on its compliance with laws and regulations applicable to thefinancial statements.

 

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To The Partners

Sacramento SPO LimitedPartnership

A California LimitedPartnership

600 West Broadway, #1070

San Diego, CA 92101

 

 

Independent Auditor’s Report

 

We have audited theaccompanying balance sheets of Sacramento SRO Limited Partnership, as ofDecember 31, 1999 and 1998 and the related statements of operations andpartners’ capital and statements of cash flows for the years then ended.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Sacramento SRO Limited Partnership, as of December 31,1999 and 1998, and the results of their operations and cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

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To the Partners

South Hills Apartments, L.P.

 

We have audited theaccompanying balance sheets of South Hills Apartments, L.P. as of December 31,1999 and 1998, and the related statements of operations, partners’ equity andcash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards.   Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.   We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of South Hills Apartments, L.P. as of December 31, 1999 and1998, and the results of its operations, changes in partners’ equity and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onpage 14 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. Such information has been subjected to the auditing procedures appliedin the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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To the partners:

Village Woods Estates, L.P.

 

We have audited theaccompanying balance sheets of Village Woods Estates, L.P. as of December 31,1999 and 1998, and the related statements of income, changes in partners’capital, and cash flows for the years then ended. These financial statementsare the responsibility of the Company’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Village Woods Estates, L.P. as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

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To The Partners

Autumn Ridge Associates

Roanoke, Virginia:

 

We have audited theaccompanying balance sheet of Autumn Ridge Associates (A Virginia LimitedPartnership) as of December 31, 1999 and 1998 and the related statement ofoperations and partners’ equity (deficit) and cash flow for the years thenended.  These financial statements arethe responsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements.  An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation.  We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects thefinancial position of Autumn Ridge Associates as of December 31, 1999 and 1998,and the results of its operation and its cash flow for the year then ended inconformity with generally accepted accounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onpages through 16 is presented for the purpose of additional analysis and is nota required part of the basic financial statements.  Such information has been subjected to the audit proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Brownsville Associates, Limited

 

 

We have audited theaccompanying balance sheets of Brownsville Associates, Limited (a Tennesseelimited partnership) d/b/a Brownsville Village Apartments, RES Project No.:48-038-621467876, as of December 31, 1999 and 1998, and the related statementsof operations, partners’ equity, and cash flows for the years then ended.    These financial statements are theresponsibility of the partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.   Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Brownsville Associates, Limited (a Tennessee limitedpartnership) d/b/a Brownsville Village Apartments, RES Project No.:48-038-621467876, as of December 31, 1999 and 1998, and the results of its operations,the changes in partners’ equity and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 1, 2000 on ourconsideration of Brownsville Associates, Limited’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.   The supplemental information onpage 12 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. Such information has been subjected to the audit procedures applied inthe audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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To The Partners

Centenary Housing LimitedPartnership

St. Louis, Missouri

 

 

We have audited theaccompanying balance sheet of Centenary Housing Limited Partnership (CentenaryTowers Apartments, Project No. 085-35239-PM-SR-PR-WAH- L8) as of December 31,1999, and the related statements of profit and loss, partners’ equity and cashflows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit in accordancewith generally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Centenary Housing Limited Partnership as of December 31,1999, and the results of its operations and its cash flows for the year thenended in conformity with generally accepted accounting principles.

 

Our audit was conducted for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplementary information shown on pages 15 to 18 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

In accordance with GovernmentAuditing Standards, and the Consolidated Audit Guide for Audits of HUD Programsissued by the U.S. Department of Housing and Urban Development, we have alsoissued a report dated January 25, 2000 on our consideration of CentenaryHousing Limited Partnership’s internal control and reports dated January 25,2000 on its compliance with specific requirements applicable to major HUDprograms and specific requirements applicable to Fair Housing andNon-Discrimination.

 

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Partners

Coolidge-Pinal II Associates, A

Washington Limited PartnershipBellevue, Washington

 

We have audited theaccompanying balance sheets of Coolidge-Pinal II Associates, A WashingtonLimited Partnership, of December 31, 1999 and 1998, and the related statementsof operations, changes in partners’ equity (deficit) and cash flows for theyears then ended.  These financialstatements are the responsibility of the Partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan and performan audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement.  Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Coolidge-Pinal II Associates, A Washington LimitedPartnership, as of December 31, 1999 and 1998, and the results of itsoperations and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report, dated February 25, 2000, onour consideration of the Partnership’s internal control over financial reportingand on our tests of its compliance with certain provisions of laws,regulations, contracts and grants.

 

Our audits were made for thepurpose of forming an opinion on the financial statements taken as awhole.  The additional information shownon pages 12 to 14 is presented for the purpose of complying with therequirements of the U.5 Department of Agriculture, Rural Housing Service, forthe year ended December 31, 1999, and is not a required part of the financialstatements.  Such additionalinformation, presented in Column 2 of Parts I. II and III of the MultipleFamily Housing Project Budget (Form RD 1930-7), has been subjected to theauditing procedures applied in the audit of the financial statements for thatyear, and in our opinion, is fairly stated in all material respects in relationto the financial statements taken as a whole. Columns 1, 3 and 4 of Parts I, II and III and Parts IV, V and VI of theMultiple Family Housing Project Budget have not been subjected to the auditingprocedures applied in the audits of the financial statements, and accordingly,we express no opinion on Columns 1, 3 and 4 of Parts I, II and III and PartsIV, V and VI of the Multiple Family Housing Project Budget.

 

The additional informationpresented on page 15 is presented for the purpose of complying with therequirements of a limited partner and is not a required part of the financialstatements.  Such additional informationhas been subjected to the auditing procedures applied in the audits of thefinancial statements for the years ended December 31, 1999 and 1998, and in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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To the Partners

Elm Street Associates, L.P.

 

 

We have audited theaccompanying balance sheets of Elm Street Associates, L.P. as of December 31,1999 and 1998, and the related statements of operations, partners’ capital andcash flows for the years then ended. These financial statements are the responsibility of the partnerships’management.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards.  Those standards require than we plan aridperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Elm Street Associates, L.P., as of December 31, 1999 and1998, and the results of its operations, changes in partners’ capital and cashflows for the years then ended in conformity with generally acceptedprinciples.

 

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To the Partners of

Jeremy Associates LimitedPartnership:          I

 

We have audited theaccompanying balance sheets of JEREMY ASSOCIATES LIMITED PARTNERSHIP (aColorado limited partnership) as of December 31, 1999 and 1998, and the relatedstatements of operations, partners’ capital accounts and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with auditing standards generally accepted in the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Jeremy Associates Limited Partnership as of December 31,1999 and 1998, and the results of its operations and its cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States.

 

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To the Partners

Los Lunas Apartments LimitedPartnership

dba Hillridge Apartments

Los Lunas, New Mexico

 

We have audited theaccompanying balance sheets of Los Lunas Apartments Limited Partnership dbaHillridge Apartments as of December 31, 1999 and 1998, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended. All information included in these financial statements is therepresentation of the management of Los Lunas Apartments Limited Partnershipdba Hillridge Apartments. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards require,that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Los Lunas Apartments Limited Partnership dba HillridgeApartments as of December 31, 1999 and 1998 and the results of its operations,changes in partners’ equity and cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 11 is presented for the purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

New Hilltop Apartments, ALimited Partnership

Columbia, South Carolina

 

We have audited theaccompanying balance sheets of New Hilltop Apartments, A Limited Partnership (ASouth Carolina Limited Partnership), as of December 31, 1999 and 1998, and therelated statements of operations, partners’ equity and cash flows for the yearsthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express our opinion on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of New Hilltop Apartments, A Limited Partnership, as ofDecember 31, 1999 and 1998, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

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Partners

Shadowcreek Apartments

Elko, Nevada

 

We have audited the accompanyingbalance sheets of ShadowCreek Apartments (Project). Rural Development Case No.33-002-0880283493, as of December 31, 1999 and 1998 and the related statementsof operations, changes in Project equity and Cash flows for the years thenended. These financial statements are the responsibility of the Project’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and with GovernmentAuditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of the Project as of December 31, 1999 and ~998 and theresults of its operations and cash flows for the years then ended. Inconformity with general accepted accounting principles.

 

Our audit was conducted for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupplemental data included in the report (shown on pages 11 through 13) arepresented for the purpose of additional analysis and are not a required part ofthe basic financial statements of the Project for the year ended December 31,1999. Such information has been subjected to the auditing procedures applied inthe audit of the basic financial statements and, in our opinion, is fairlypresented in all material respects in relation to the financial statementstaken as a whole.

 

In accordance withGovernmentAuditing Standards, we have issued a report dated January 25, 2000,on our consideration of the Project’s internal control structure and a reportdated January 25, 2000 on its compliance with laws and regulations.

 

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To the Partners

Pahrump Valley Investors

(A Wyoming Limited Partnership)

Cheyenne, WY

 

 

I have audited the accompanyingbalance sheets of Pahrump Valley Investors (A Wyoming Limited Partnership),USDA Rural Development Case No. 33-019-680204949, as of December 31, 1999 and 1998, and the relatedstatements of income, partners equity, and cash flows for the years thenended.  These financial statements arethe responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements.  An audit also includes assessing theaccounting principles used and significant estimates made by management as wellas evaluating the overall financial statement presentation.  I believe that my audits provide areasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Pahrump Valley Investors (A Wyoming Limited Partnership) as of December 31, 1999 and 1998, andthe results of its operations and its cash flows for the years then ended, in conformitywith generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued a report dated March 23, 2000 on myconsideration of Pahrump Valley Investors’ internal control structure and areport dated March 23, 2000 on its compliance with laws and regulations.

 

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To the Partners

Stanton Associates, Limited

P.O BOX 551

 

 

We have audited theaccompanying balance sheets of Stanton Associates, Limited (a Tennessee limitedpartnership) d/b/a Stanton Village Apartments, RHS Project No.:48-038-621542356, as of December 31, 1999 and 1998, and the related statementsof operations, partners’ equity, and cash flows for the years then ended.  These financial statements are theresponsibility of the partnership’s management.   Our responsibility is to express an Opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.   Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Stanton Associates, Limited (a Tennessee limitedpartnership) d/b/a Stanton Village Apartments, RHS Project No.:48-038-621542356, as of December 31, 1999 and 1998, and the results of itsoperations, the changes in partners’ equity and its cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 3, 2000 on ourconsideration of Stanton Associates, Limited’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.   The supplemental information onpage 12 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. Such information has been subjected to the audit procedures applied inthe audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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Partners

Woodlands Apartments

Elko, Nevada

 

We have audited theaccompanying balance sheets of Woodlands Apartments (Project), RuralDevelopment Case No. 33~OO4-O88O31457O, as of December 31, 1999 and 1998 andthe related statements of operations, changes in Project equity and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Project’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and with GovernmentAuditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of the Project as of December31, 1999 and 1998 and theresults of its operations and cash flows for the years then ended, inconformity with general accepted accounting principles.

 

Our audit was conducted for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupplemental data included in the report (shown on pages 11 through 13) arepresented for the purpose of additional analysis and are not a required part ofthe basic financial statements of the Project for the year ended December 31,1999. Such information has been subjected to the auditing procedures applied inthe audit of the basic financial statements and, in our opinion, is fairlypresented in all material respects in relation to the financial statementstaken as a whole.

 

In accordance with GovernmentAuditing Standards, we have issued a report dated January 25, 2000, on ourconsideration of the Project’s internal control structure and a report datedJanuary 25, 2000, on its compliance with laws and regulations.

 

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To the Partners

ZWOLLE PARTNERSHIP

 

 

We have audited  the accompanying  balance  sheets of  ZWOLLE PARTNERSHIP, RHSPROJECT NO. 22-043-721260425 as of December 31, 1999 and 1998 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended.   Thesefinancial statements are the responsibility of the partnership’smanagement.  Our responsibility is to expressan opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of ZWOLLE PARTNERSHIP as of December 31, 1999 and 1998 andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 16 through 24, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 16, 2000 on ourconsideration of ZWOLLE PARTNERSHIP’s internal control and a report datedFebruary 16, 2000 on its compliance with laws and regulations applicable to thefinancial statements.

 

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The Partners

Ethel Housing, L.P.

Ethel, Mississippi

 

 

We have audited theaccompanying balance sheets of Ethel Housing, L.P., RD Case No.28-004060823417, as of December 31, 1999 and 1998, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Ethel Housing, L.P. as of December 31, 1999 and 1998, andthe results of its operations and its cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards and the Audit Program issued by the United States Departmentof Agriculture, Rural Development, we have also issued a report dated February1, 2000, on our consideration of Ethel Housing, L.P.’s internal control, andreports dated February 1, 2000, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audits were made for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupporting data included on pages 12 through 19 are presented for purposes ofadditional analysis and are not a required part of the financial statements ofEthel Housing, L.P. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which we express no opinion,is fairly stated in all material respects in relation to the financial statementstaken as a whole.

 

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To the partners

Hurricane Hills I LC

 

 

I have audited the accompanyingbalance sheets of Hurricane Hills LC as of December 31, 1999, and the relatedstatements of operations, partners’ equity and cash flows for the year thenended.  These financial statements arethe responsibility of the partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

I conducted my audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examination, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audits provided areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Hurricane Hills I LC as of December 31, 1999, and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

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To:          The Partners

                Main Everett Housing Limited Partnership

 

We have audited theaccompanying balance sheets of Main Everett Housing Limited Partnership as ofDecember 31, 1999 and 1998, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Main Everett Housing Limited Partnership as of December31, 1999 and 1998, and the results of its operations, changes in partners’equity, and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 11 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements.  Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole

 

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To the Partners

M.R.H., L.P.

 

We have audited theaccompanying balance sheets of M.R.H., L.P. as of December 31, 1999 and 1998,and the related statements of operations, partners’ equity and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of M.R.H., L.P. as of December 3l, 1999 and 1998, and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditsof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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To the partners

Washington Arms Apartments

(A Limited partnership)

Dayton, Ohio

 

We have audited theaccompanying balance sheet of HUD Project #046-NI093 of Washington ArmsApartments  (a limited partnership) asof December 31, 1999, and the related statements of profit and loss, changes inpartners’ capital and cash flows for the year ended December 31, 1999.     These financial statements are theresponsibility of the Project’s management. Our responsibility As to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards, Government AuditingStandards issued by the Comptroller General of the United States, andConsolidated Audit Guide for Audits of HUD Programs (the “Guide”) issued by theU. S. Department of Housing and Urban Development, Office of Inspector Generalin August 1997.  Those standards and theGuide require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements.  An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.   Webelieve that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatement3 referred to above present fairly, in all material respects, thefinancial position of HUD Project #O46-NIO93 as of December 31, 1999 and theresults of its operations and its cash flows and its changes in partners’capital for the period then ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 15, 2000 on ourconsideration of Washington Arms Apartments’ internal controls and a reportdated February 15, 2000 on its compliance with laws and regulations.

 

Our audit was made for thepurpose of forming an opinion on the financial statements taken as awhole.  The additional information includedin the report shown on pages 12-14 is presented for the purposes of additionalanalysis and is not a required part of the financial statements of HUD Project#046-N1093.  Such information has beensubjected to the auditing procedures applied in the audit of the financialstatement and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

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To:          The Partners

Osborne Housing LimitedPartnership

 

We have audited theaccompanying balance sheets of Osborne Housing Limited Partnership as ofDecember 31, 1999 and 1998, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Osborne Housing Limited Partnership as of December 31,1999 and 1998, and the results of its operations, changes in partners’ equity,and cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 11 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements.  Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

Sandstone Village LimitedPartnership

Great Falls, Montana

 

 

INDEPENDENT AUDITORS~ REPORT

 

We have audited theaccompanying balance sheets of Sandstone Village Limited Partnership as ofDecember 31, 1999 and 1998 and the related statements of operations, partners’equity and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Sandstone Village Limited Partnership as of December 31,1999 and 1998, and the results of its operations, changes in partners’ equityand cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for thepurposes of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 14 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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The Partners

Shannon Housing, L.P.

 

 

We have audited theaccompanying balance sheets of Shannon Housing, L.P., RD Case No.28-0410640835658, as of December 31, 1999 and 1998, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Shannon Housing, L.P. as of December 31, 1999 and 1998,and the results of its operations and its cash flows for the years then ended,in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards and the Audit Program issued by the United States Departmentof Agriculture, Rural Development, we have also issued a report dated February9, 2000, on our consideration of Shannon Housing, L.P. ‘s internal control, andreports dated February 9, 2000, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audits were made for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupporting data included on pages 12 through 19 are presented for purposes ofadditional analysis and are not a required part of the financial statements ofShannon Housing, L.P. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which we express no opinion,is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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To the Partners of

Sutton Place Apartments

(A Limited Partnership)

Cincinnati, Ohio

 

We have audited the accompanyingbalance sheet of HUD Project #o73-55035, 073-55037, 073-55038, 073-55061 and073-55062 of Sutton Place Apartments (a limited partnership) as of December 31,1999, and the related statements of profit and loss, changes in partners’capital and cash flows for the year then ended.  These financial statements are the responsibility of theProject’s management.  Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit inaccordance with generally accepted auditing standards, Government AuditingStandards issued by the Comptroller General of the United States, andConsolidated Audit Guide for Audits of HUB Programs (the “Guide”) issued by theU. S. Department of Rousing and Urban Development, Office of Inspector Generalin August 1997.  Those standards and theGuide require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.   Webelieve that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of HUD Project #073-55035, 073-55037, 073-55038, 073-55061,073-55062, as of December 31, 1999 and the results of its operations and itscash flows and its changes in partners’ capital for the year then ended inconformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 15, 2000 on ourconsideration of Sutton Place Apartments’ internal control and a report datedFebruary 15, 2000 on its compliance with laws and regulations. We were engagedto conduct an audit for the purpose of forming an opinion on the financialstatements taken as a whole.    Theadditional information included in the report shown on pages 13-17 is presentedfor the purposes of additional analysis and is not a required part of thefinancial statements of HUD Project #073-55035, 073-55037, 073-55038, 073-55061and 073-55062.   Such information hasbeen subjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

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The Partners

West Point Housing, L.P.

West Point, Mississippi

 

 

We have audited theaccompanying balance sheets of West Point Housing, L.P., RD Case No.28-013-0640834734, as of December 31, 1999 and 1998, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of West Point Housing, L.P. as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended, in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards and the Audit Program issued by the United States Departmentof Agriculture, Rural Development, we have also issued a report dated February10, 2000, on our consideration of West Point Housing, L.P.’s internal control,and reports dated February 10, 2000, on its compliance with specificrequirements applicable to major RD programs and nonmajor RD programtransactions.

 

Our audits were made for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupporting data included on pages 13 through 20 are presented for purposes ofadditional analysis and are not a required part of the financial statements ofWest Point Housing, L.P. Such information, except for the current budget andproposed budget columns on pages 16 through 19, on which we express no opinion,is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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To The Partners

200 East Avenue Associates,L.P.

 

 

We have audited theaccompanying balance sheet of 200 East Avenue Associates L.P (a limitedpartnership) as of December 31, 1999 and the related statements of operationsand partners’ capital (deficit) and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of 200 East Avenue Associates, L.P. as of December 31, 1999,and the results of its operations and its cash flows for the year then ended inconformity with generally accepted accounting principles.

 

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To the Partners

A.V.A. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of A.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of A.V.A. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

Beckwood Manor One LimitedPartnership

 

We have audited theaccompanying balance sheets of Beckwood Manor One Limited Partnership, RDProject No. 03-025-710677259 (the Partnership), as of December 31, 1999 and1998 and the related statements of profit (loss), changes in partners’ equity(deficit) and cash flows for the years then ended.  These financial statements are the responsibility of thePartnership’s management.  Ourresponsibility is to express an opinion on these financial statements based on ouraudits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Beckwood Manor One Limited Partnership as of December 31,1999 and 1998, and its results of operations, changes in partners’ equity(deficit), and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated March 2, 2000 on ourconsideration of the Partnership’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts and grants.

 

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To the Partners

CAMERON APARTMENTS PARTNERSHIP

A LOUISIANA PARTNERSHIP INCOMMENDAM

 

 

We have audited theaccompanying balance sheets of CAMERON APARTMENTS PARTNERSHIP, A LOUISIANAPARTNERSHIP IN COMMENDAM as of December 31, 1999 and 1998 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended.  Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation.  We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of CAMERON APARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIPIN COMMENDAM as of December 31, 1999 and 1998 and the results of itsoperations, changes in partners’ equity and cash flows for the years then endedin conformity with generally accepted accounting principles.

 

Our audits were made primarilyfor the purpose of forming an opinion on the basic financial statements for theyears ended December 31, 1999 and 1998 taken as a whole. The supplementalinformation on pages 18 and 19 is presented for purposes of additional analysisand is not a required part of the basic financial statements.  Such information has been subjected to theaudit procedures performed on the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To the Partners

Decro Nordhoff, L.P.

 

We have audited theaccompanying balance sheets of Decro Nordhoff, L.P. as of December 31, 1999 and1998, and the related statements of operations, partners’ equity and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Decro Nordhoff, L.P. as of December 31, 1999 and 1998,and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 13 and 14 are presented forpurposes of additional analysis and are not a required part of the basicfinancial statements.  Such informationhas been subjected to the auditing procedures applied in the audits of thebasic financial statements and, in our opinion, are fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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To the Partners

G.V. A. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of G. V. A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of G. V. A. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

Grayson Manor LimitedPartnership

 

I have audited the accompanyingbalance sheets of Grayson Manor Limited Partnership as of December 31,1999 and1998, and the related statements of operations, partners’ equity and cash flowsfor the periods then ended. These financial statements are the responsibilityof the Partnership’s management. My responsibility is to express an opinion onthese financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States, and the U.S.Department of Agriculture, Farmers Home Administration Audit Program. Thosestandards require that I plan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. I believe thatmy audits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Grayson Manor Limited Partnership as of December 31, 1999and 1998, and the results of its operations, changes in partners equity, andits cash flows for the periods then ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued my report dated March 10, 2000 on myconsideration of Grayson Manor Limited Partnership’s internal control overfinancial reporting and on my tests of its compliance with certain provisionsof laws and regulations.

 

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To The Partners

M.B. Apartments Associates,Ltd.

 

We have audited theaccompanying balance sheets of M.B. Apartments Associates, Ltd. (A LimitedPartnership) as of December 31,1999 and 1998, and the related statements ofoperations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of M.B. Apartments Associates, Ltd. (A Limited Partnership)as of December 31, 1999 and 1998, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 13 is presented for the purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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The Partners

Meridian Housing, L.P.

 

We have audited theaccompanying balance sheet of Meridian Housing, L.P., RD Case No.28-0380640893892, as of December 31, 1999, and the related statements ofoperations, partners’ equity, and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Meridian Housing, L.P. as of December 31, 1999, and theresults of its operations and its cash flows for the year then ended, inconformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards and the Audit Program issued by the United States Departmentof Agriculture, Rural Development, we have also issued a report dated February9, 2000, on our consideration of Meridian Housing, L.P.’s internal control, andreports dated February 9, 2000, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audit was made for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupporting data included on pages 12 through 19 are presented for purposes ofadditional analysis and are not a required part of the financial statements ofMeridian Housing, L.P. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which we express no opinion,is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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To the Partners of

New Devonshire II LimitedPartnership

(An Ohio Limited Partnership)

Lancaster, Ohio

 

We have audited the accompanyingbalance sheets of New Devonshire II Limited Partnership (an Ohio limitedpartnership). RD Project #41-049-311449843. as of December 31, 1999 and 1998,and the related statements of income, changes in partners’ deficit, and cashflows for the years then ended.  Thesefinancial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on the financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards, Government AuditingStandards, issued by the Comptroller General of the United States, and the U.S.Department of Agriculture. Farmers Home Administration “Audit Program” issuedin December, 1989.  Those standardsrequire that we plan and perform our audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of New Devonshire II Limited Partnership, (an Ohio limitedpartnership), at December 31, 1999 and 1998, and the results of its operations,changes in partners’ deficit, and cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated January 27, 2000, on ourconsideration of New Devonshire II Limited Partnership’s internal control and areport dated January 27, 2000, on its compliance with laws and regulations.

 

Our audits were made for thepurpose of forming an opinion on the financial statement taken as a whole. Theaccompanying information included in the report (shown on pages 11 to 18) ispresented for the purpose of additional analysis and is not a required part ofthe basic financial statements of New Devonshire II Limited Partnership.  Such information has been subjected to theauditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe financial statements taken as a whole.

 

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To the Partners of

New Devonshire West LimitedPartnership

(An Ohio Limited Partnership)

Lancaster, Ohio

 

We have audited theaccompanying balance sheets of New Devonshire West Limited Partnership (an Ohiolimited partnership), RD Project #41-049-311449844, as of December 31. 1999 and1998, and the related statements of income, changes in partners’ deficit, andcash flows for the years then ended. The financial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on the financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards, Government AuditingStandards, issued by the Comptroller General of the United States, and the U.S.Department of Agriculture. Farmers Home Administration “Audit Program” issuedin December, 1989.  Those standardsrequire that we plan and perform our audits to obtain reasonable assuranceabout whether the financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatement referred to above present fairly, in all material respects, thefinancial position of New Devonshire West Limited Partnership, (an Ohio limitedpartnership), at December 31, 1999 and 1998, and the results of its operations,changes in partners’ deficit, and cash flows for the years then ended inconformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated January 27. 2000, on ourconsideration of New Devonshire West Limited Partnership’s internal control anda report dated January 27. 2000. on its compliance with laws and regulations.

 

Our audits were made for thepurpose of forming an opinion on the financial statements taken as awhole.  The accompanying informationincluded in the report (shown on pages 11 to 18) is presented for the purposeof additional analysis and is not a required part of the basic financial statementsof New Devonshire West Limited Partnership. Such information has been subjected to the auditing procedures appliedin the audit of the basic financial statement and, in our opinion, is fairlystated in all material respects in relation to the financial statement taken asa whole.

 

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To the Partners

Powell Valley LimitedPartnership

 

I have audited the accompanyingbalance sheets of Powell Valley Limited Partnership as of December 31, 1999 and1998, and the related statements of operations, partners’ equity and cash flowsfor the periods then ended. These financial statements are the responsibilityof the Partnership’s management. My responsibility is to express an opinion onthese financial statements based on my audits.

 

I conducted my audits in accordancewith generally accepted auditing standards and Government Auditing Standardsissued by the Comptroller General of the United States, and the U.S. Departmentof Agriculture, Farmers Home Administration Audit Program. Those standardsrequire that I plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement, An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. I believe thatmy audits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Powell Valley Limited Partnership as of December 31, 1999and 1998, and the results of its operations, changes in partners equity, andits cash flows for the periods then ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued my report dated March 10, 2000 on myconsideration of Powell Valley Limited Partnership’s internal control overfinancial reporting and on my tests of its compliance with certain provisionsof laws and regulations.

 

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To the Partners

T. R. BOBB APARTMENTSPARTNERSHIP

A LOUISIANA PARTNERSHIP INCOMMENDAM

 

 

We have audited theaccompanying balance sheets of T. R. BOBB APARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM as ofDecember 31, 1999 and 1998 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended.  These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation.  We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of T. R. BOBB APARTMENTS PARTNERSHIP, A LOUISIANAPARTNERSHIP IN COMMENDAM as of December 31, 1999 and 1998 and the results ofits operations, changes in partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Our audits were made primarilyfor the purpose of forming an opinion on the basic financial statements for theyears ended December 31, 1999 and 1998 taken as a whole. The supplementalinformation on pages 18 and 19 is presented for purposes of additional analysisand is not a required part of the basic financial statements.  Such information has been subjected to theaudit procedures performed on the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To the Partners

V.V.A. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of V. V. A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of V. V. A. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

W.P.V.A. Limited Partnership

Charlotte, North Carolina

 

We have audited theaccompanying balance sheets of W.P.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standards issuedby the Comptroller General of the United States.  Those standards require that we plan and perform the audits toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement.  An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of W.P.V.A. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplementary informationlisted in the table of contents is presented for purposes of additionalanalysis and is not a required part of the basic financial statements of thePartnership.  Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

AHAB Project One, L.P.

 

I have audited the accompanyingbalance sheets of AHAB Project One, L.P. as of December 31, 1999 and 1998, andthe related statements of operations, partners’ equity (deficit) and cash flowsfor the years then ended.  Thesefinancial statements are the responsibility of the partnership1smanagement.  My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Ibelieve that my audits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of AHAB Project One, L.P. as of December 31, 1999 and 1998,and the results of its operations, changes in partners1 equity (deficit) andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

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To the Partners of CR HousingAssociates, L.P.:

 

I have audited the accompanyingbalance sheet of CR HOUSING ASSOCIATES, L.P. (the “Partnership”) as of December31, 1999, and the related statements of operations, partners’ capita) and cashflows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.   An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audit provides a reasonablebasis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of CR HOUSING ASSOCIATES, L.P. as of December 31, 1999, andthe results of it operations and its cash flows for the years then ended inconformity with generally accepted accounting principles.

 

My audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onpage 10 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. Such information has been subjected tothe auditing procedures applied in the audit of the basic financial statementsand, in my opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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To the Partners

Holly Heights Apartments, L.P.

 

We have audited theaccompanying balance sheets of Holly Heights Apartments, L.P. as of December31, 1999 and 1998, and the related statements of operations, partners’ equityand cash flows for the years then ended. These financial statements are the responsibilityof the partnership’s management.  Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits inaccordance with generally accepted auditing standards.   Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.   We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Holly Heights Apartments, L.P. as of December 31, 1999and 1998, and the results of its operations, changes in partners’ equity andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onpage 14 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. Such information has been subjected to the auditing procedures appliedin the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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To the Partners

BIENVILLE II APARTMENTS

 

 

We have audited theaccompanying balance sheets of BIENVILLE II APARTMENTS, RHS PROJECT NO.:22-007-721280566 as of December 31, 1999 and 1998 and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended.   These financial statementsare the responsibility of the partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of BIENVILLE II APARTMENTS as of December 31, 1999 and 1998and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 16 through 24, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 21, 2000 on ourconsideration of BIENVILLE II APARTMENTS’s internal control and a report datedFebruary 21, 2000 on its compliance with laws and regulations applicable to thefinancial statements.

 

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To the Partners

BLANCHARD II APARTMENTS

 

 

We have audited theaccompanying balance sheets of BLANCHARD II APARTMENTS, RHS PROJECT NO.22-009-721313034 as of December 31, 1999 and 1998 and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation.  We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of BLANCHARD II APARTMENTS as of December 31, 1999 and 1998and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 16 through 24, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 9, 2000 on ourconsideration of BLANCHARD II APARTMENTS’s internal control and a report datedFebruary 9, 2000 on its compliance with laws and regulations applicable to thefinancial statements.

 

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To the Partners

EVANGELINE PARTNERSHIP

 

 

We have audited theaccompanying balance sheets of EVANGELINE PARTNERSHIP, RHS PROJECT NO.22-027-721313386 as of December 31, 1999 and 1998 and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation.  We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of EVANGELINE PARTNERSHIP as of December 31, 1999 and 1998and the results of its operations, changes in partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 18 through 26, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have report dated February 21, 2000 on our considerationof PARTNERSHIP’s internal control and a report dated February 21, 2000 on itscompliance with laws and regulations applicable to the financial statements.

 

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Partners

Fairway II Limited DividendHousing Association

Limited Partnership

Marlette, Michigan

 

We have audited theaccompanying balance sheet of Fairway II Limited Dividend Housing AssociationLimited Partnership, Rural Housing Service Project No. 26-074-0383047638 as ofDecember 31, 1999 and 1998, and the related statements of income, partners’equity and cash flows for the years the ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards, the standards applicableto financial audits contained in Government Auditing Standards issued by theComptroller General of the United States, and the U.S. Department ofAgriculture, Rural Housing Service Audit Program. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Fairway II Limited Dividend Housing Association LimitedPartnership as of December 31, 1999 and 1998, and the results of itsoperations, changes in partners’ equity and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 11, 2000 on ourconsideration of Fairway II Limited Dividend Housing Association LimitedPartnership’s internal control over financial reporting and our tests ofcompliance with certain provisions of laws, regulations, contracts, and grants.

 

Our audits were conducted forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented on pages 11 through 17 ispresented for purposes of complying with the requirements of Rural HousingService and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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To the Partners

Neighborhood RestorationsLimited Partnership VII

Dresher, Pennsylvania

 

 

We have audited theaccompanying balance sheet of NEIGHBORHOOD RESTORATIONS LIMITED PARTNERSHIP VII(a Pennsylvania Limited Partnership) as of December 31, 1999, and the relatedstatement of operations, Changes in partners’ capital and cash flows for theyear then ended. This financial statement is the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thisfinancial statement based on our audit. The financial statement of NEIGHBORHOOD RESTORATIONS LIMITED PARTNERSHIPVII as of December 31, 1998, was audited by another accounting firm whosereport dated January 15, 1999, expressed an unqualified opinion on thatstatement.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statement is free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statememt. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe our auditprovides a reasonable basis for our opinion.

 

In our opinion, the financialstatement referred to above presents fairly, in all material respects) thefinancial position of NEIGHBORHOOD RESTORATIONS LIMITED PARTNERSHIP VII as ofDecember 31, 1999, and the results of its operations and its cash flows for theyear then ended in conformity with generally accepted accounting principles.

 

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To the Partners

R.V.K.Y. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of R.V.K.Y. Limited Partnership (a Kentucky limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and signifLcant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinlon.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of R.V.K.Y. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a requfred part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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Partners

Senior Suites Chicago Austin

Limited Partnership

Chicago, Illinois

 

We have audited theaccompanying balance sheet of Senior Suites Chicago Austin  Limited Partnership  (an  Illinois Limited  Partnership)  as of December 31, 1999 and the related statements of operations, partners’equity and cash flows for the year then ended. These financial statements arethe responsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above presents fairly, in all material respects, thefinancial position of Senior Suites Chicago Austin Limited Partnership as ofDecember 31, 1999 and the results of its operations and its cash flows for theyear then ended in conformity with generally accepted accounting principles.

 

Our audit was conducted for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The schedule of other operatingexpenses on page 11 is presented for the purpose of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

As described in Note 8 to thefinancial statements, the Partnership changed its method of accounting fororganization and start-up costs in accordance with Statement of Position 98-5,“Reporting on the Costs of Start-Up Activities.”

 

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To The Partners

Sumner House LimitedPartnership

 

We have audited theaccompanying balance sheets of Sumner House Limited Partnership as of December31, 1999 and 1998, and the related statements of operations and changes inpartners’ capital, and cash flows, for the years then ended.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Sumner House Limited Partnership as of December 31, 1999and 1998, and the results of its operations and cash flows for the years thenended, in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 9 and 10 is presented for purposesof additional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, is fairly statedin all niaterial respects in relation to the basic financial statements takenas a whole.

 

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To the Partners

Terraceview Limited Partnership

 

 

We have audited theaccompanying balance sheet of Terraceview Limited Partnership as of December31, 1999, and the related statements of operations, partners’ equity (deficit)and cash flows for the year then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and the significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Terraceveiw Limited Partnership as of December 31, 1999and the results of its operations, changes in partners’ equity (deficit) andcash flows for the year then ended in conformity with generally acceptedaccounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

Bryson Apartments, LTD.

 

We have audited theaccompanying balance sheet of Bryson Apartments, Ltd. (a limited partnership),RD Project No.: 50-019-752658906-01-8 as of December 31, 1999 and the relatedstatement of operations, partners’ equity and cash flows for the year thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Bryson Apartments, Ltd. RD Project No.:50-019-752658906-01-8 as of December 31, 1999, and the results of itsoperations, changes in partners’ equity and cash flows for the year then endedin conformity with generally accepted accounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 1-19 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the audit procedures appliedin the audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 23, 2000 on ourconsideration of Bryson Apartments, Ltd.’s internal control and a report datedFebruary 23, 2000 on its compliance with laws and regulations applicable to thefinancial statement.

 

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The Partners

Collins Housing, L.P.

Collins, Mississippi

 

 

We have audited theaccompanying balance sheets of Collins Housing L.P., RD CaseNo.28-0160640864674, as of December 31, 1999 and 1998, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standard and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Collins Housing, L.P. as of December 31, 1999 and 1998,and the results of its operations and its cash flows for the years then ended,in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards and the Audit Program issued by the United States Departmentof Agriculture, Rural Development, we have also issued a report dated February9, 2000, on our consideration of Collins Housing, L.P.’s internal control, andreports dated February 9, 2000, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audits were made for thepurpose of forming an opinion on the financial statements taken as a whole. Thesupporting data included on pages 12 through 19 are presented for purposes ofadditional analysis and are not a required part of the financial statements ofCollins Housing, L.P. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which we express no opinion,is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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To the Partners

Glenbrook Apartments, Ltd.

 

We have audited theaccompanying balance sheet of Glenbrook Apartments, Ltd. (a limitedpartnership), RD Project No.: 50-069-0752627351-01-4 as of December 31, 1999and the related statements of operations, partners’ equity and cash flows forthe year then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Glenbrook Apartments, Ltd., RD Project No.:50-069-0752627351-01-4 as of December 31, 1999, and the results of itsoperations, changes in partners’ equity and cash flows for the year then endedin conformity with generally accepted accounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 1-18 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 27, 2000 on ourconsideration of Glenbrook Apartments, Ltd.’s internal control and a reportdated February 27, 2000 on its compliance with laws and regulations applicableto the financial statement.

 

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To the partners

Harbor Pointe/MHT LimitedDividend Housing

Association Limited Partnership

 

 

We have audited theaccompanying balance sheet of Harbor Pointe/MHT Limited Dividend HousingAssociation Limited Partnership (a Michigan limited partnership) as of December31, 1999, and the related statements of income, partners’ equity and cash flowsfor the year then ended. These financial statements are the responsibility ofthe Company’s management. Our responsibility is to express an opinion on thesefinancial statements based on cur audit

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Harbor Pointe/MHT Limited Dividend Housing AssociationLimited Partners as of December 31, 1999 and the results of its operations andits cash flows for the year then ended, in Conformity with generally acceptedaccounting principles.

 

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To the Partners

Jacksboro Apartments, LTD.

 

 

We have audited theaccompanying balance sheet of Jacksboro Apartments, Ltd.  (a limited partnership), RD Project No.:50-0190752657457-01-6  as  of December  31,  1999 and the  related statements ofoperations, partners’ equity and cash flows for the year then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Jacksboro Apartments, Ltd. as of December 31, 1999, andthe results of its operations, changes in partners’ equity and cash flows forthe year then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 1-19 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements.  Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 21, 2000 on ourconsideration of Jacksboro Apartments, Ltd.’s internal control and a reportdated February 21, 2000 on its compliance with laws and regulations applicableto the financial statement.

 

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To The Partners

Lincoln Hotel Partnership

A California LimitedPartnership

600 West Broadway, #1070

San Diego, CA  92101

 

 

Independent Auditor’s Report

 

We have audited theaccompanying balance sheets of Lincoln Hotel Partnership, a California LimitedPartnership, as of December 31, 1999 and 1998 and the related statements ofoperations and partners capital and statements of cash flows for the years thenended.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Lincoln Hotel Partnership, a California LimitedPartnership, as of December 31, 1999 and 1998, and the results of operationsand cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

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To the Partners

Lutkin Bayou Apartments, LP

Drew, Mississippi

 

 

We have audited theaccompanying balance sheets of Lutkin Bayou Apartments, LP (a Mississippilimited partnership), RHS Project No. 28-83-40863241 as of December 31, 1999and 1998, and the related statements of operations, partners’ capital (deficit)and cash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Lutkin Bayou Apartments, LP, and the results of itsoperations and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audits were made for thepurposes of forming an opinion on the basic financial statements taken as awhole. The supplemental information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. We haveprepared the Multiple Family Housing Borrower Balance Sheet (RHS FORM RD1980-8) and the Multiple Family Housing Project Budget (RHS FORM RD 1980-7).Such information has been subjected to the audit procedures applied in theaudits of the basic financial statements and, in our opinion, is fairly statedin all material respects in relation to the basic financial statements taken asa whole.

 

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To The Partners

Northway Drive, Ltd.

Bryan, Texas

 

We have audited theaccompanying balance sheets of Northway Drive, Ltd. - (A Texas LimitedPartnership) as of December 31, 1999 and 1998, and the related statements ofincome, partners’ equity and cash flows for the years ended December 31, 1999 and1998.  These financial statements arethe responsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

 

We conducted our audits inaccordance with Generally Accepted Auditing Standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe balance sheet is free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe balance sheet. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating theoverall balance sheet presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the balancesheet referred to above presents fairly, in all material respects, thefinancial position of Northway Drive, Ltd. - (A Texas Limited Partnership) asof December 31, 1999 and 1998, in conformity with Generally Accepted AccountingPrinciples.

 

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To the Partners

Rhome Apartments, Ltd.

 

We have audited theaccompanying balance sheet of Rhome Apartments, Ltd.  (a limited partnership), RD Project No: 51-049-0752627348-02-2 asof December 31, 1999 and the related statements of operations, partners’ equityand cash flows for the year then ended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Rhome Apartments, Ltd., RD Project No.: 51-049-0752627348as of December 31, 1999, and the results of its operations, changes inpartners’ equity and cash flows for the year then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 1-18 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements.  Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 29, 2000 on ourconsideration of Rhome Apartments, Ltd.’s internal control and a report datedFebruary 29, 2000 on its compliance with laws and regulations applicable to thefinancial statement.

 

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To the Partners

Bellwood Four LimitedPartnership

 

We have audited theaccompanying balance sheets of Bellwood Four Limited Partnership,  (the Partnership) as of December 31, 1999and 1998 and the related statements of profit (loss) changes in partners’equity (deficit) and cash flows for the years then ended.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standards issuedby the Comptroller General of the United States.  Those standards require that we plan and perform the audits toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement.  An auditincludes examining on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Bellwood Four Limited Partnership as of December 31, 1999and 1998, and its results of operations, changes in partners’ equity (deficit),and cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated March 1, 2000 on ourconsideration of the Partnership’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts and grants.

 

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To the Partners

Bowie Apartments, Ltd.

 

We have audited theaccompanying balance sheets of Bowie Apartments, Ltd. (a limited partnership),RD Project No. 50-069- 0752627345-01-7, as of December 31, 1999 and 1998, andthe related statements of operations1 partners’ equity and cash flows for theyears ended December 31, 1999 and 1998. These financial statements are theresponsibility of the partnership’s management.   Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.   An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Bowie Apartments, Ltd., RD Project No.50~069~0752627345-0l-7, as of December 31, 1999 and 1998, and the results ofits operations, the changes in partners’ equity and cash flows for the yearsended December 31, 1999 and 1998 in conformity with generally acceptedaccounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information onPage 1-21 and 1-22 is presented for purposes of additional analysis and is nota required part of the basic financial statements. Such information has beensubjected to the audit procedures applied in the audit of the basic financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 11, 2000 on ourconsideration of Bowie Apartments, Ltd. internal control and a report datedFebruary 11, 2000 on its compliance with laws and regulations applicable to thefinancial statement.

 

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To the Partners

C.V.V.A. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of C.V.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects thefinancial position of C.V.V.A. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepting accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership.

 

Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

Graham Apartments, Ltd.

 

We have audited theaccompanying balance sheets of Graham Apartments, Ltd.  (a limited partnership), RD Project No.51-52-752663159-01-1, as of December 31, 1999 and 1998, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended.  These financial statements arethe responsibility of the partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.   An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Graham Apartments, Ltd., RD Project No.51-52-752663159-01-1, as of December 31, 1999 and 1998, and the results of itsoperations, the changes in partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 1-20 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the audit procedures appliedin the audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 16, 2000 on ourconsideration of Graham Apartments, Ltd.’s internal control and a report datedFebruary 16, 2000 on its compliance with laws and regulations applicable to thefinancial statements.

 

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To The Partners

Hillside Terrace Associates,L.P.

 

 

We have audited theaccompanying balance sheet of Hillside Terrace Associates, L.P. (a limited partnership)as of December 31, 1999 and the related statements of operations and partnerscapital (deficit) and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Hillside Terrace Associates, L.P. as of December 31,1999, and the results of its operations and its cash flows for the year thenended in conformity with generally accepted accounting principles.

 

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To the Partners

K.G.V.A. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of K.G.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership1s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of W G. V. A. Limited Partnership as of December 31, 1999and 1998, and the results of its operations and its cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

in accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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To the Partners

Mesa Grande Apartments, LimitedPartnership

Irvine, California

 

 

 

I have audited the accompanyingbalance sheet of Mesa Grande Apartments, Limited Partnership as of December 31,1999, and the related statements of operations, changes in partners’ capital,and cash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudit provides a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Mesa Grande Apartments, Limited Partnership at December31, 1999, and the results of its operations and cash flows for the year thenended in conformity with generally accepted accounting principles.

 

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To the Partners

Nocona Apartments, Ltd.

 

We have audited theaccompanying balance sheets of Nocona Apartments, Ltd.  (a limited partnership), RD Project No:50-069- 0752685663-02-2 as of December 31, 1999 and 1998, and the related statementsof operations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States.  Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement.   Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements.  An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Nocona Apartments, Ltd. RD Project No.:50-069-0752685663-02-2 as of December 31, 1999 and 1998, and the results of itsoperations, the changes in partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 1-20 and 1-21 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 15, 2000 on ourconsideration of Nocona Apartments, Ltd.’s internal control and a report datedFebruary 15, 2000 on its compliance with laws and regulations applicable to thefinancial statement.

 

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To the Partners

Sunrise Homes Apartments,Limited Partnership

Irvine, California

 

 

I have audited the accompanyingbalance sheet of Sunrise Homes Apartments, Limited Partnership (A DevelopmentStage Enterprise) as of December 31, 1999, and the related statements ofoperations, changes in partners capital, and cash flows for the year thenended. These financial statements are the responsibility of the Partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

I conducted my audit inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudit provides a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Sunrise Homes Apartments, Limited Partnership at December31, 1999, and the results of its operations and cash flows for the year thenended in conformity with generally accepted accounting principles.

 

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The Partners

Canton Housing One, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheet of Canton Housing One, L.P., a Mississippi limitedpartnership, FmHA Project No.28-045-0640886062 01-8, as of December 31, 1999and 1998, and the related statements of income (loss), partners’ capital, andcash flows for the years ended December 31, 1999 and 1998.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Canton Housing One, L.P., FmHA Project No.28-045-0640886062 01-8, as of December 31, 1999 and 1998, and the results ofits operations and its cash flows for the years ended December31, 1999 and 1998in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 8, 2000, on ourconsideration of the Partnership’s internal control and a report dated February8, 2000, on its compliance with specific requirements applicable to major FmHAprograms.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 14 through 19is presented for purposes of additional analysis and is not a required part ofthe basic financial statements.  Suchinformation, except for the current budget and proposed budget columns in PartI and II and the information in Part IV included on pages 14 through 17 onwhich we express no opinion, has been subjected to the auditing proceduresapplied in the audits of the basic financial statements, and in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole

 

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The Partners

Canton Housing Two, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheet of Canton Housing Two, L.P., a Mississippi limitedpartnership, FmHA Project No.28-045-0640886061 01-5, as of December 31, 1999and 1998, and the related statements of income (loss), partners’ capital, andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Canton Housing Two, L.P., FmHA ProjectNo.28-045-0640886061 01-5, as of December 31, 1999 and 1998, and the results ofits operations and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 17, 2000, onour consideration of the Partnership’s internal control and a report datedFebruary 17, 2000, on its compliance with specific requirements applicable tomajor FmHA programs.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 13 through 18is presented for purposes of additional analysis and is not a required part ofthe basic financial statements.  Suchinformation, except for the current budget and proposed budget columns in PartI and II and the information in Part IV included on pages 13 through 16, onwhich we express no opinion, has been subjected to the auditing proceduresapplied in the audits of the basic financial statements, and in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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The Partners

Canton Housing Three, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Canton Housing Three, L.P., a Mississippilimited partnership, FmHA Project No.28-045-0640886063 04-2, as of December 31,1999 and 1998, and the related statements of income (loss), partners’ capital,and cash flows for the years ended December 31, 1999 and 1998. These financialstatements are the responsibility of the Partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement.  An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Canton Housing Three, L.P., FmHA ProjectNo.28-045-0640886063 04-2, as of December 31, 1999 and 1998, and the results ofits operations and its cash flows for the years ended December 31, 1999 and1998 in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 8, 2000, on ourconsideration of the Partnership’s internal control and a report dated February8, 2000, on its compliance with specific requirements applicable to major FmHAprograms.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 12 through 17is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. Such information, except for the current budgetand proposed budget columns in Part I and II and the information in part JVincluded on pages 12 through 15, on which we express no opinion, has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements, and in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Canton Housing Four, L.P., a Mississippi limitedpartnership, FmHA Project No.28-045-0640886064 02-0, as of December 31, 1999and 1998, and the related statements of income (loss), partners’ capital, andcash flows for the years ended December 31, 1999 and 1998.  These financial statements are theresponsibility of the Partnership’ 5 management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Canton Housing Four, L.P., FmHA Project No.28-045-0640886064-02-0, as of December 31, 1999 and 1998, and the results ofits operations and its cash flows for the years ended December 31, 1999 and1998 in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 8, 2000, on ourconsideration of the Partnership’s internal control and a report dated February8, 2000, on its compliance with specific requirements applicable to major FmHAprograms.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 12 through 17is presented for purposes of additional analysis and is not a required part ofthe basic financial statements.  Suchinformation, except for the current budget and proposed budget columns in PartI and II and the information in Part IV included on pages 12 through 15, onwhich we express no opinion, has been subjected to the auditing proceduresapplied in the audits of the basic financial statements, and in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners of

Eagles Ridge Terrace, L. P.

Decatur, Texas

 

I have audited the accompanyingbalance sheets of Eagles Ridge Terrace, L. P. as of December 31, 1999 and 1998,and the related statements of operations, partners’ capital and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Eagles Ridge Terrace, L. P. as of December 31, 1999 and1998 and the results of its operations, changes in partners’ capital and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 1-16 and 1-17 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To the Partners

Ellisville Housing, L.P.

West Point, Mississippi

 

 

We have the accompanyingbalance sheets of Ellisville Housing LP (a Mississippi limited partnership),RHS Project No. 28-034-O64086466/as of December 31, 1999 and 1998, and therelated statements of operations, partners’ capital (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conducted our audits inaccordance with and Government Auditing Standards issued by the ComptrollerGeneral of the United States. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present, the financial position of EllisvilleHousing, L.P.,  and the results of itsoperations and its cash flows for the years then ended in conformity withqenerally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information ispresented for purposes of additional analysis and is not a required p art ofthe basic financial statements. We have prepared the Multiple Family HousingBorrower Balance Sheet (RHS Form RD 1930-8) and the Multiple Family HousingProject Budget (RHS Form RD 1930-7). Such information has been subjected to theaudit procedures applied in the audits of the basic financial statements and,in our opinion, is fairly stated in all material respects in relation to thebasic financial statements taken as a whole.

 

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To the Partners

Hattiesburg Housing, LP

Jackson, Mississippi

 

 

We have audited theaccompanying balance sheet of Hattiesburg Housing, LP (a Mississippi limitedpartnership), RHS Project No. 28-018-640864668 as of December 31, 1999 and1998, and the related statements of operations, partners’ capital and cashflows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassess mg the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Hattiesburg Housing, LP, and the results of itsoperations and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole.  The supplemental information ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. We have prepared the Multiple Family HousingBorrower Balance Sheet (RHS FORM RD 1930-8) and the Multiple Family HousingProject Budget (RHS FORM RD 1930-7). Such information has been subjected to theaudit procedures applied in the audits of the basic financial statements and,in our opinion, is fairly stated in all material respects in relation to thebasic financial statements taken as a whole.

 

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To the Partners of

Henderson Terrace, L. P.

Bridgeport, Texas

 

I have audited the accompanyingbalance sheets of Henderson Terrace, L. P. as of December31, 1999 and 1998, andthe related statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership1s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Henderson Terrace, L.P. as of December 31, 1999 and 1998and the results of its operations, changes in partners’ capital and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 1-16 and 1-17 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To the partners

Hurricane Hills II LC

 

 

I have audited the accompanyingbalance sheets of Hurricane Hills II LC as of December 31, 1999, and the relatedpartners’ equity for the year then ended. These financial statements are the responsibility of the partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

I conducted my audit in accordancewith generally accepted auditing standards. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement.  An audit includes examination, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management as well as evaluating the overall financialstatement presentation. We believe that our audits provided a reasonable basisfor our opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Hurricane Hills II LC as of December 31, 1998, and theresults of its operations, changes in Partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

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To the Partners of

Lakeview Little Elm, L. P.

Little Elm, Texas

 

I have audited the accompanyingbalance sheets of Lakeview Little Elm, L. P. as of December31, 1999 and 1998,and the related statements of operations, partners’ capital and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Lakeview Little Elm, L. P. as of December 31, 1999 and1998 and the results of its operations, changes in partners’ capital and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 1-16 and 1-17 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To the Partners of

Mesquite Trails, L. P.

Jacksboro, Texas

 

I have audited the accompanyingbalance sheets of Mesquite Trails, L.P. as of December 31, 1999 and 1998, andthe related statements of operations, partners’ capital and cash flows for theyears then ended. These financial statements are the responsibility of thepartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audit.

 

I conducted my audits inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Mesquite Trails, L.P. as of December 31, 1999 and 1998and the results of its operations, changes in partners’ capital and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 1-16 and 1-17 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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To the Partners

N.M.V.A. Limited Partnership

Charlotte, North Carolina

 

 

We have audited theaccompanying balance sheets of N.M.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 1999 and 1998 and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all materials respects, thefinancial position of N.M.V.A. Limited Partnership as of December 31, 1999 and1998, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 31, 2000, onour consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information listed in the table of contents ispresented for purposes of additional analysis and is not a required part of thebasic financial statements of the Partnership. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all material respectsin relation to the basic financial statements taken as a whole.

 

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To the Partners of

Pilot Point Apartments. L.P.

Pilot Point, Texas

 

I have audited the accompanyingbalance sheets of Pilot Point Apartments, L.P. as of December 31, 1999 and1998, and the related statements of operations, partners’ capital and cashflows for the years then ended. These financial statements are theresponsibility of the partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards. Those standards requirethat I plan and perform the audits to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. I believe that my audits providea reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Pilot Point Apartments, L. P. as of December 31, 1999 and1998 and the results of its operations, changes in partners’ capital and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 1-16 and 1-17 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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Partners

Sencit Hampden Associates, L.P.

 

 

We have audited theaccompanying balance sheets of SENCIT HAMPDEN ASSOCIATES, L.P., ROTH VILLAGETOWNHOMES, PHFA Project No. 0-546, as of December 31, 1999 and 1998, and therelated statements of profit and loss, partners’ equity and cash flows for theyears then ended.  These financialstatements are the responsibility of the Partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Sencit Hampden Associates, L.P. as of December 31, 1999and 1998, and the results of its operations and its cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

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To the Partners

Silver Creek/MHT LimitedDividend Housing

Association Limited Partnership

 

 

We have audited theaccompanying balance sheet of Silver Creek/MHT Limited Dividend HousingAssociation Limited Partnership (a Michigan limited partnership) as of December31, 1999, and the related statements of income, partners’ equity and cash flowsfor the year then ended. These financial statements are the responsibility ofthe Company’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Silver Creek/MHT Limited Dividend Housing AssociationLimited Partnership as of December 31, 1999, and the results of its operationsand its cash flows for the year then ended, in conformity with generallyaccepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 9 and 10 is presented for purposesof additional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated, in all material respects, in relation to the basic financialstatements taken as a whole.

 

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Partners

Courtside Housing Associates, A

Washington Limited Partnership

Bellevue, Washington

 

We have audited theaccompanying balance sheets of Courtside Housing Associates, A WashingtonLimited Partnership, as of December 31, 1999 and 1998, and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then  ended.     These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform an audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Courtside Housing Associates, A Washington LimitedPartnership, as of December 31, 1999 and 1998, and the results of itsoperations and its cash flows for the years then ended, in conformity withgenerally accepted accounting principles.

 

Our audits were conducted forthe purpose of forming an opinion on the financial statements taken as a whole.   The additional information shown on page 10is presented for the purpose of additional analysis and is not a required partof the financial statements.  Suchadditional information has been subjected to the auditing procedures applied inthe audits of the financial statements and, in our opinion, is fairly stated inall material respects in relation to the financial statements taken as a whole.

 

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To the Partners

Indiana Development LimitedPartnership

Novi, Michigan

 

 

We have audited the accompanyingbalance sheets of Indiana Development Limited Partnership as of December 31,1999 and 1998 and the related statements of operation, partner capital and cashflows for the years then ended. These financial statements are theresponsibility of Indiana Development Limited Partnership’s management. Ourresponsibility is to express an opinion on the financial statement based uponour audit.

 

We conducted our audits inaccordance with generally accepted auditing standards.  These standards require that we plan andperform the audit to obtain reasonable assurance whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosure in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statements presentation We believe that our audits provide areasonable basis for our opinion

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Indiana Development Limited Partnership as of December31, 1999 and 1998 and the results of its operations and its cash flow for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 12 and 13 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as whole.

 

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To the Partners of

Martinsville-I, Ltd.

 

 

I have audited the accompanyingbalance sheet of Martinsville-I, Ltd. (a Kentucky limited partnership) as ofDecember 31, 1999 and the related statements of changes in partners’ capitaland cash flows for the four months and twenty days then ended.  The financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audit.

 

I conducted my audit inaccordance with generally accepted auditing standards.  Those standards require that I plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamount and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by thePartnership’s general partner and contracted management agent, as well asevaluating the overall financial statement presentation. I believe that myaudit provides a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above in all material respects the financial position ofMartinsville-I, Ltd. at December 31, 1999, and its changes in partners’ capitaland cash flows for the four months and twenty days then ended in conformitywith generally accepted accounting principles.

 

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To the Partners

Pyramid Four LimitedPartnership

 

We have audited theaccompanying balance sheet of Pyramid Four Limited Partnership, (thePartnership), as of December 31, 1999. This financial statement is theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on this financialstatement based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and it to obtain reasonable assurance about whether the balancesheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallbalance sheet presentation.  We believethat our audit provides a reasonable basis for our opinion.

 

In our opinion, the balancesheet referred to above presents fairly, in all material respects, the financialposition of  Pyramid Four LimitedPartnership as of December 31, 1999, in conformity with generally acceptedaccounting principles.

 

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To the Partners

Bradford Group Partners ofJefferson County, L.P.

893 Forgety Road

Jefferson City, Tennessee

 

We have audited theaccompanying balance sheet of Bradford Group Partners of Jefferson County, L.P.(a limited partnership) as of December 31, 1999, and the related statements ofincome (loss), partners’ equity and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on this financial statement based onour audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation.  Webelieve that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Bradford Group Partners of Jefferson County, L.P. as ofDecember 31, 1999, and the results of its operations, changes in partners’equity and cash flows for the year then ended, in conformity with generallyaccepted accounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. the supplemental information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements.  Such information has been subjected to theauditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

 

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To the Partners

Belmont Affordable Housing II,L.P.

Springfield, Pennsylvania

 

 

We have audited theaccompanying balance sheet of BELMONT AFFORDABLE HOUSING II, L.P. (aPennsylvania Limited Partnership) as of December 31, 1999, and the relatedstatements of operations and other comprehensive loss, changes in partners’capital and cash flows for the year then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe our auditprovides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above presents fairly, in all material respects, thefinancial position of BELMONT AFFORDABLE HOUSING II, L.P. as of December 31,1999, and the results of its operations and its cash flows for the year thenended in conformity with generally accepted accounting principles.

 

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To the Partners of

NHC Partnership 5, L.P.

(A Virginia LimitedPartnership)

 

We have audited theaccompanying balance sheet of NHC Partnership 5, L.P. as of December 31, 1999,and the related statements of operations, changes in partners’ equity (deficit)and cash flows for the year then ended. These financial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards.  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation.  We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, the financialposition of NHC Partnership 5, L.P. as of December 31, 1999, and the results ofits operations and its cash flows for the year then ended in conformity withgenerally accepted accounting principles.

 

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Partners

RHP 96-1 Limited Partnership

Novi, Michigan

 

 

We have audited theaccompanying balance sheets of RHP 96-1 Limited Partnership as of December 31,1999 and 1998 and the related statements of operations, partner capital andcash flows for the years then ended. These financial statements are theresponsibility of RHP 96-l Limited Partnership’s management. Our responsibilityis to express an opinion on the financial statement

based upon our audit

 

We conducted our audits inaccordance with generally accepted auditing standards. These standards requirethat we plan and perform the audit to obtain reasonable assurance whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statements presentation. We believe that ouraudits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of RHP 96-1 Limited Partnership as of December 31, 1999 and1998 and the results of its operations and its cash flow for the years thenended in conformity with generally accepted accounting principles.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 12 and 13 is presented for purposesof additional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as whole.

 

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Partners

Cypress Point Housing LimitedPartnership

Bellevue, Washington

 

We have audited theaccompanying balance sheet of Cypress Point Housing Limited Partnership, as ofDecember 31, 1999, and the related statements of operations changes inpartners’ equity and cash flows for the year then ended.   These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform an audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Cypress Point Housing Limited Partnership, as of December31, 1999, and the results of its operations and its cash flows for the yearthen ended, in conformity with generally accepted accounting principles.

 

Our audit was conducted for thepurpose of forming an opinion on the financial statements taken as awhole.   The additional informationshown on page 9 is presented for the purpose of additional analysis and is nota required part of the financial statements. Such information has been subjected to the auditing procedures appliedin the audit of the financial statements and, in our opinion, is fairly statedin all material respects in relation to the financial statements taken as awhole.

 

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To the Partners

New Caney Housing II, Ltd.

 

 

We have audited theaccompanying balance sheet of New Caney Housing II, Ltd.(a development stagecompany) as of December 31, 1999, and the related statements of operations,partners’ equity (deficit), and cash flow for the year ended December 31, 1999.These financial statements are the responsibility of the Partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, theaccompanying financial statements referred to above present fairly, in allmaterial respects, the financial position of New Caney Housing II, Ltd. as ofDecember 31, 1999, and the results of its operation and its cash flows for theyear ending December 31, 1999, in conformity with generally accepted accountingprinciples.

 

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To the Partners

Aloha Housing LimitedPartnership

Oregon Housing and

Community Services Department

Salem, Oregon

 

We have audited theaccompanying Balance Sheet of Aloha Housing Limited Partnership (a limitedpartnership), as of December 31, 1999 and the related statements of operations,changes in partners capital, and cash flows for the four months then ended.These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards, and with GovernmentAuditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform our audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Aloha Housing Limited Partnership, as of December 31,1999 and the results of its operations and its cash flows for the four monthsthen ended in conformity with generally accepted accounting principles.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedule of supplementary information required by theOregon Housing and Community Services Department is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the procedures applied inour audit of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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To The Partners

Riverview Bend LimitedPartnership

Crystal City, Missouri

 

We have audited theaccompanying balance sheet of Riverview Bend Limited Partnership (RiverviewBend Apartments, Project No. 085-35329-PM-L8) as of December 31, 1999, and therelated statements of profit and loss, partners’ equity and cash flows for theperiod beginning November 10, 1999 and ended December 31, 1999. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Riverview Bend Limited Partnership as of December 31,1999, and the results of its operations and its cash flows for the period beginningNovember 10, 1999 and ended December 31, 1999 in conformity with generallyaccepted principles.

 

Our audit was conducted for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplementary information shown on pages 14 to 17 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

In accordance with GovernmentAuditing Standards, and the Consolidated Audit Guide for Audits of HUD Programsissued by the U.5. Department of Housing and Urban Development, we have alsoissued a report dated February 12, 2000 on our consideration of Riverview BendLimited Partnership’s internal control and reports dated February 12, 2000 onits compliance with specific requirements applicable to non-major HUD programsand specific requirements applicable to Fair Housing and Non-Discrimination.

 

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Partners

Senior Suites ChicagoWashington Heights

Limited Partnership

Chicago, Illinois

 

We have audited theaccompanying balance sheet of Senior Suites Chicago Washington Heights LimitedPartnership (A Development Stage Company) as of December 31, 1999 the end ofthe initial accounting period of the Partnership. This financial statement isthe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on this financial statement based on our audit.

 

We conducted our audit inaccordance with generally accepted auditing standards. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whetherthe balance sheet is free of material misstatement.  An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the balance sheet. An audit also includes assessingthe accounting principles used and significant estimates made by management, aswell as evaluating the overall balance sheet presentation. We believe that ouraudit of the balance sheet provides a reasonable basis for our opinion.

 

In our opinion, the balancesheet referred to above presents fairly, in all material respects, thefinancial position of Senior Suites Chicago Washington Heights LimitedPartnership (A Development Stage Company) as of December 31, 1999 in conformitywith generally accepted accounting principles.

 

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