** **

**Exhibit99.1**

 

INDEPENDENTAUDITOR’S REPORT

 

The Partners

**Ashbury Apartments Limited Partnership**

Sioux Falls, South Dakota

 

We have audited theaccompanying balance sheets of **Ashbury Apartments Limited Partnership**asof December 31, 2003 and 2002, and the related statements of operations,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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of **Ashbury Apartments Limited Partnership**asof December 31, 2003 and 2002, and the results of its operations, changesin partners’ equity (deficit) and cash flows for the years then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose 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 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.

 

 

EIDE BAILLY, LLP

Sioux Falls, South Dakota

January 20, 2004

 

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IndependentAuditor’s Report

 

To the Partners

Bennetts Pointe LimitedPartnership

 

I have audited theaccompanying balance sheets of Bennetts Pointe Limited Partnership as ofDecember 31, 2003 and 2002, and the related statements of operations,partners’ deficit 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 my audits inaccordance with auditing standards generally accepted in the United States and *GovernmentAuditing Standards*issue 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bennetts Pointe Limited Partnership as ofDecember 31, 2003 and 2002, 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 accordance with *GovernmentAuditing Standards,*I**have also issued my report datedFebruary 15, 2004 on my consideration of Bennetts Pointe LimitedPartnership’s internal control over financial reporting and on my tests of itscompliance with certain provisions of laws and regulations.

 

THOMAS C. CUNNINGHAM,CPA, PC

Bristol, VA

February 15, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Bradley Elderly, L.P.

 

 

I have audited theaccompanying balance sheet of Bradley Elderly, L.P. as of December 31,2003 and 2002 and the related statements of operations, partners’ capital andcash flow 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 auditing standards generally accepted in the United States ofAmerica. Those standards require that I 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bradley Elderly, L.P. as ofDecember 31, 2003 and 2002 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.

 

My audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas 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 my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

 

BOB T. ROBINSON, CPA

Jackson, Mississippi

January 28, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Clarksville Estates, L.P.

DBA Clarksville Estates

Clarkton, MO 63837

 

We have audited theaccompanying balance sheets of Clarksville Estates, L.P. (a limited partnership)DBA Clarksville Estates as of December 31, 2003 and 2002, and the relatedstatements of income, changes in partners’ equity 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 auditsin accordance with auditing standards generally accepted In the United Statesof America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the UnitedStates.  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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Clarksville Estates, L.P (a limitedpartnership) DBA Clarksville Estates as of December 31, 2003 and 2002 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 audits were performedfor the purpose of forming an opinion on the basic financial statements ofClarksville Estates, L.P. taken as a whole. The supplementary data included onpages 14-15 is not necessary for a fair presentation of the financialstatements, but is presented for purposes of additional analysis. As requiredby the United States Department of Agriculture Office of Rural Development,this supplementary data has been subjected to the same tests and other proceduresapplied in the audits of the statements mentioned above, and in our opinion, isfairly presented in all material respects in relation to the financialstatements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 23,2004, on our consideration of Clarksville Estates, L.P.’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws and regulations. The 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 audits.

 

 

COFFMAN, EADS, CAPPS,SUMMERS & DUNCAN

Clarkton, MO

January 23, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

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, 2003 and 2002, and the related statementsof operations and partners’ capital (deficit) 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of College Greene Rental Associates, as ofDecember 31, 2003 and 2002, 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.

 

SALMIN, CELONA, WEHRLE& FLAHERTY, LLP

Rochester, NY

January 30, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

Evergreen HillsAssociates, L.P.

 

We have audited theaccompanying balance sheet of Evergreen Hills Associates, L.P. (a limitedpartnership) as of December 31, 2003 and 2002, and the related statementsof operations and partners’ capital (deficit) 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Evergreen Hills Associates, L.P. as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

 

SALMIN, CELONA, WEHRLE& FLAHERTY, LLP

Rochester, NY

January 26, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

FLORAL ACRES APARTMENTSII, ALPIC

 

We have audited theaccompanying balance sheet of FLORAL ACRES APARTMENTS II, ALPIC, RHS ProjectNo. 22-026-721172913 as of December 31, 2003, and the related statementsof operations, 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. The financial statements of FLORAL ACRESAPARTMENTS II, ALPIC as of December 31, 2002, were audited by otherauditors whose report dated March 4, 2003 expressed an unqualified opinionon those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of FLORAL ACRES APARTMENTS II, ALPIC as ofDecember 31, 2003, and the results of its 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 15 through 21 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedFebruary 29, 2004, on our consideration of FLORAL ACRES APARTMENTS, II,ALPIC’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 the reportin considering the results of our audit.

 

 

BOND & TOUSIGNANT,CPA’S

Monroe, Louisiana

February 29, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Franklinton ElderlyHousing, Ltd.

Franklinton, Louisiana

 

We have audited theaccompanying balance sheets of Franklinton Elderly Housing, Ltd., as ofDecember 31, 2003 and 2002, and the related statements of income, changesin partners’ capital, and cash flows 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 audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesand 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****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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Franklinton Elderly Housing, Ltd. as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedJanuary 28, 2004, on our consideration of Franklinton Elderly Housing,Ltd.’s internal control over financial reporting and our test 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.

 

Our audits were performedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplementary information on Pages 13-14 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.

 

 

WAY, RAY, SHELTON &CO., P.C.

Tuscaloosa, AL

January 28, 2004

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Goldenrod, Ltd.

Mansfield, Massachusetts

 

We have audit theaccompanying balance sheet of Goldenrod, Ltd. (a Florida Limited Partnership)as of December 31, 2003, and the related statements of operations, changesin partners’ equity and Cash flows for the years then ended. These financialstatements are the responsibility of Goldenrod, Ltd’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit

 

We conducted our audit inaccordance with auditing standards generally accepted In the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Goldenrod, Ltd., as of December 31,2003, and the results of its operations and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our audit was conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplemental information included in the schedules (shown onpages 15 and 16) 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 financial statements taken as a whole.

 

 

RESTIVO MONACELLI, LLP

Mansfield, Massachusetts

February 2, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

HARRISONBURG SENIORSAPARTMENTS, ALPIC

 

We have audited theaccompanying balance sheet of HARRISONBURG SENIORS APARTMENTS, ALPIC, RHSProject No. 22-013-721199864 as of December 31, 2003, and the relatedstatements of operations, 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 audit. The financial statements ofHARRISONBURG SENIORS APARTMENTS, ALPIC as of December 31, 2002, wereaudited by other auditors whose report dated March 15, 2003 expressed anunqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of HARRISONBURG SENIORS APARTMENTS, ALPIC asof December 31, 2003, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the year then ended in conformitywith accounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 15 through 21 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedMarch 19, 2004, on our consideration of HARRISONBURG SENIORS APARTMENTS,ALPIC’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 the reportin considering the results of our audit.

 

 

BOND & TOUSIGNANT,CPA’S

Monroe, Louisiana

March 19, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Shady Lane SeniorsApartments

 

We have audited theaccompanying balance sheet of Shady Lane Seniors Apartments (the Partnership)as of December 31, 2003, and the related statements of income, 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. Thefinancial statements of Shady Lane Seniors Apartments as of December 31,2002, were audited by other auditors whose report dated April 14, 2003expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States andthe Standards for Financial and Compliance Audits contained in *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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Shady Lane Seniors Apartments as ofDecember 31, 2003, 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 accordance with *GovernmentAuditing Standards,*we have also issued our report datedMarch 18, 2004, on our consideration of Shady Lane Seniors Apartments’internal 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 *Government Auditing Standards*andshould be read in conjunction with this report in considering the results of ouraudit.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedules listed in the table of contents are presentedfor the purpose of additional analysis and are not a required part of the basicfinancial statements of Shady Lane Seniors Apartments. 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.

 

 

CAMERON, HINES &HARTT, CPA’S

West Monroe, Louisiana

March 18, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Virginia AvenueAffordable Housing Limited Partnership

 

I have audited****theaccompanying balance sheets of Virginia Avenue Affordable Housing LimitedPartnership as of December 31, 2003 and 2002, 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. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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, 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. I believe thatmy audit provides a reasonable basis for my opinion.

 

In my opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Virginia Avenue Affordable Housing LimitedPartnership as of December 31, 2003 and 2002, and the results of its operations,the changes in partners’ equity and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

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.

 

 

MARTIN A. STARR, CPA

Bakersfield, CA

January 20, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Black River Run LimitedPartnership

 

We have audited theaccompanying balance sheet of Black River Run Limited Partnership as ofDecember 31, 2003 and the related statements of operations, partners’equity, 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 onour audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Black River Run Limited Partnership as ofDecember 31, 2003, 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.

 

LARSON ALLEN WEISHAIR& CO., LLP

Eau Claire, Wisconsin

January 20, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

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, 2003 and 2002, 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 auditsin accordance with U.S. generally accepted auditing standards and the standardsapplicable to financial 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Liveoak Village Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with the U.S. generally acceptedaccounting principles.

 

In accordance with *Government*Auditing*Standards,*we have also issued our report dated January 3 1, 2004, 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. That 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 audits.

 

Our audits were made forthe purpose 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.

 

BERNARD ROBINSON &COMPANY, LLP

Charlotte, NC

January 31, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Lookout Ridge LimitedPartnership

 

We have audited theaccompanying balance sheet of Lookout Ridge Limited Partnership as ofDecember 31, 2003, 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lookout Ridge Limited Partnership as ofDecember 31, 2003, and the results of its operations, the changes inpartners’ equity and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audit was made forthe purpose 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.

 

 

RANKIN, RANKIN & CO.

Ft. Wright, KY

March 20, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Pumphouse Crossing IILimited Partnership

 

We have audited theaccompanying balance sheet of Pumphouse Crossing II Limited Partnership as ofDecember 31, 2003, 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 toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Pumphouse Crossing II Limited Partnershipas of December 31, 2003, and the results of its operations, the changes inpartners’ equity and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

LARSON ALLEN WEISHAIR& CO., LLP

Eau Claire, Wisconsin

January 25, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Pinedale II LimitedPartnership

 

We have audited theaccompanying balance sheet of Pinedale II Limited Partnership as ofDecember 31, 2003, and the related statements of operations, partners’equity, 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 on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Pinedale II Limited Partnership, as ofDecember 31, 2003, 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.

 

LARSON ALLEN WEISHAIR& CO., LLP

Eau Claire, Wisconsin

January 13, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Black River Run LimitedPartnership

 

We have audited theaccompanying balance sheet of Black River Run Limited Partnership as ofDecember 31, 2003, 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 expressan opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Black River Run Limited Partnership as ofDecember 31, 2003, 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.

 

 

LARSON ALLEN WEISHAIR& CO., LLP

Eau Claire, WI

January 20, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Bayou Crossing LimitedPartnership

Mansfield, Massachusetts

 

We have audited theaccompanying balance sheet of Bayou Crossing Limited Partnership (a FloridaLimited Partnership) as of December 31, 2003, and the related statementsof operations, changes in partners’ equity and cash flows for the year thenended. These financial statements are the responsibility of Bayou CrossingLimited Partnership’s management.  Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit inaccordance auditing standards generally accepted In the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bayou Crossing Limited Partnership as ofDecember 31, 2003, and the results of its operations and cash flows forthe year then ended in conformity with accounting principles generally acceptedin the United States of America.

 

Our audit was conductedfor the purpose of forming an opinion, on the basic financial statements takenas a whole. The supplemental information Included In the schedules (shown onpages 17 and 18) 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 financial statements taken as a whole.

 

 

RESTIVO MONACELLI LLP

Mansfield, Massachusetts

February 2, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Crystal City/FestusPartnership, LP

 

We have audited theaccompanying balance sheets of Crystal City / Festus Partnership, LP as ofDecember 31, 2002 and 2003, and the related statements of income, owners’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 with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Crystal City / Festus Partnership, LP as ofDecember 31, 2002 and 2003, and results of its operations, changes inowners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

HOWE & ASSOCIATES, PC

Columbia, Missouri

February 4, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

Partners

Edmond Properties,

An Oklahoma LimitedPartnership

 

We have audited theaccompanying balance sheet of **EDMOND PROPERTIES**, an **OKLAHOMA LIMITED****PARTNERSHIP**as of December 31, 2003, and the related statements of operations, changesin partners’ capital 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 statements based on ouraudit.  The financial statements of **EDMOND****PROPERTIES,**an**OKLAHOMA LIMITED PARTNERSHIP**as of December 31, 2002were audited by other auditors whose report dated February 5, 2003,expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of **EDMOND PROPERT IES**, an OKLAHOMA LIMITEDPARTNERSHIP as of December 31, 2003, 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.

 

 

HANKINS & CO.

Fort Smith, Arkansas

February 13, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Elk Tower Apartments LP

 

We have auditaccompanying balance sheets of Elk Tower Apartments Limited Partnership as ofDecember 31, 2003 and 2002, and the related statements of operations,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 auditsin 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Elk Tower Apartments Limited Partnership, as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

Our audits were made forthe purpose 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 financial statementstaken as a whole.

 

 

KENNETH E. LOY & CO.,P.C.

Alton, Illinois

February 15, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Goldenrod, Ltd.

Mansfield, Massachusetts

 

We have audited theaccompanying balance sheet of Goldenrod, Ltd.,(a Florida Limited Partnership)as of December 31, 2003, and the related statements of operations, changesin partners’ equity and cash flows for the year then ended. The financialstatements are the responsibility of Goldenrod Ltd.’s management. Our responsibilityis to express an opinion on these financial statements based on our audit.

 

We conducted our audit Inaccordance with auditing standards generally accepted In the United States ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Goldenrod Ltd., as of December 31,2003, and the results of its operations and its cash flows for the years thenended, in conformity with accounting principles generally accepted in theUnited States of America.

 

Our audit was conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplemental information Included In the schedules (shown 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 audit of the basic financial statements and, in our opinion, isfairly stated, in all material respects, in relation to the financialstatements taken as a whole.

 

 

RESTIVO MONACELLI LLP

Mansfield, Massachusetts

February 2, 2004

 

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**INDEPENDENTAUDITORS’ 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, 2003, and the related statementof operations, changes in 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Kimbark 1200 Associates, LimitedPartnership FHA Project No. 10 1-98011, as of December 31, 2003, and theresults of its operations and the changes in its partners’ equity and its cashflows for the year then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance withGovernment Auditing Standards, we have also issued our reports datedFebruary 14, 2004 on our consideration of Kimbark 1200 Associates, LimitedPartnership internal control and on our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. Those reports are anintegral part of the audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

We conducted our auditfor the purpose of forming an opinion on the basic financial statements ofKimbark 1200 Associates, Limited Partnership taken as a whole. The accompanyingsupplemental information (shown on pages thirteen through fifteen) is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements of Kimbark 1200 Associates, 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 basic financial statements taken as awhole.

 

 

Z.A. Zudyk, CPA

Longmont, Colorado

February 14, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Lost Tree LimitedPartnership

 

We have audited theaccompanying balance sheets of Lost Tree Limited Partnership as ofDecember 31, 2003 and 2002, and the related statements of operations,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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lost Tree Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 15 and 16 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.

 

 

MECHSNER & CO., LLC

Springfield, Missouri

January 29, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

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.: 28-050-640808922 as ofDecember 31, 2003 and 2002, and the related statements of operations,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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America and *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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Philadelphia Housing II, LimitedPartnership as of December 31, 2003 and 2002, 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 audits were made forthe purpose 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 haveprepared the Multiple Family Housing Borrower Balance Sheet (RHS Form RD1930-8) and the Multiple Family Housing Project Budge (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.

 

MATTHEWS CUTRER &LINDSAY

Ridgeland, MS

February 6, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

RICHMOND-HARDINPARTNERSHIP, LP

 

We have audited theaccompanying balance sheets of Richmond-Hardin Partnership, LP as ofDecember 31, 2002 and 2003, and the related statements of income, owners’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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, ‘in all materialrespects, the financial position of Richmond-Hardin Partnership, LP as ofDecember 31, 2002 and 2003, and results of its operations, changes inowners’ equity and cash flows for the years then ended ‘in conformity withaccounting principles generally accepted ‘in the United States of America.

 

 

HOWE & ASSOCIATES, PC

Columbia, Missouri

February 3, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners of

Swedesboro HousingLimited Partnership

191 White Horse Pike

Berlin, New Jersey

 

We have audited theaccompanying balance sheets of SWEDESBORO HOUSING LIMITED PARTNERSHIP as ofDecember 31, 2003 and 2002, and the related statements of income,partners’ capital, and statements of 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 audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of SWEDESBORO HOUSING LIMITED PARTNERSHIP asof December 31, 2003 and 2002, and 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*GovernmentAuditing**Standards*, we have also issued a reportdated March 5, 2004 on our consideration of Swedesboro Housing LimitedPartnership’s internal controls 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.

 

The supplementalinformation is presented in this report for purposes of additional analysisand, although not required for a fair presentation of financial position,results of operations, and cash flows, was subjected to the audit proceduresapplied in the audit of the basic financial statements.  In our opinion, the accompanyingsupplementary information is fairly stated in all material respects in relationto the basic financial statements taken as a whole and should be read inconjunction with those statements.

 

RAGONE, LACATENA,FAIRCHILD & BEPPEL

Haddonfield, NJ

March 5, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

TROY VILLA, LP

 

We have audited theaccompanying balance sheets of Troy Villa, LP as of December 31, 2002 and2003, and the related statements of income, owners’ 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Troy Villa, LP as of December 31, 2002and 2003, and results of its operations, changes in owners’ equity and cashflows for the years then ended ‘in conformity with accounting principlesgenerally accepted in the United States of America.

 

 

HOWE & ASSOCIATES, PC

Columbia, Missouri

February 20, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

**Mid City Associates Limited Partnership**

 

We have audited theaccompanying balance sheets of **Mid City Associates Limited Partnership** asof December 31, 2003, 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 audits.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in *GovernmentAuditing Standards*, issued by the Comptroller General of the UnitedStates. Thom standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement.  An auditincludes examining, on a test basis, evidence supporting the amounts and disclosuresin the 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.

 

As described in Note 1,these financial statements were prepared in conformity with the accountingpractices prescribed or permitted by the New Jersey Housing and MortgageFinance Agency, and are not intended to be a presentation in conformity withaccounting principles generally accepted in the United States of America.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of **Mid City****Associates Limited Partnership**as of December 31, 2003 and 2002, and results of its operations, and itscash flows for the years then ended in accordance with the New Jersey Housingand Mortgage Finance Agency Policies and Procedure Manual.

 

The accompanyingsupplemental information (shown on pages 20 to 27) is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements of the Partnership. Such information has been subjected to the,auditing procedures applied in the audit of the basic financial statements and,in our opinion, is fairly stated, in all material respects, in relation to thebasic financial statements taken as a whole.

 

In accordance with*GovernmentAuditing**Standards*, we have also issued our reportsdated February 7, 2004 on our consideration of **Mid City Associates LimitedPartnership’s** internal controls and on our tests of its compliancewith certain provisions of laws, regulations, contracts, and grants. Thosereports are an integral part of the audit performed in accordance with*GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

REITBERGER POLLEKOFF& KOZAK, P.C.

Vienna, Virginia

February 7, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the partners of

Colonna RedevelopmentCompany, LP

 

 

We have audited theaccompanying balance sheets of Colonna Redevelopment Company, LP (the“Partnership”) as of December 31, 2003 and 2002, and the relatedstatements of operations, cash flows and partners’ equity for the years thenended. 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 auditsin accordance with auditing standards generally accepted in the United Statesof America.  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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Colonna Redevelopment Company, LP as ofDecember 31, 2003 and 2002, and 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 audits were made forthe purpose of forming an opinion on the financial statements taken as awhole.  The accompanying supplementalschedule is presented for purposes of additional analysis and is not arequired part of the financial statements. The Information in thisschedule has been subjected to the auditing procedures applied in theaudits of the financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the financial statements taken as a whole.

 

 

CALLAGHAN NAWROCKI, LLP

Melville, New York

April 14, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Barlee Properties LimitedPartnership

Barling, Arkansas

 

We audited theaccompanying balance sheets of Barlee Properties Limited Partnership (ThePartnership) as of December 31, 2003 and 2002, and the related statementsof 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to**above present fairly, in all materialrespects, the financial position of Barlee Properties Limited Partnership, asof December 31, 2003 and 2002, 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.

 

 

LAWRENCE, SCHLUTERMAN& SCHWARTZ, LTD.

Fort Smith, Arkansas

February 27, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Bayou Crossing LimitedPartnership

Mansfield, Massachusetts

 

We have audited theaccompanying balance sheet of Bayou Crossing Limited Partnership****(aFlorida Limited Partnership) as of December 31, 2003, and the relatedstatements of operations, changes in partners’ equity and cash flows for theyear then ended.  These financialstatements are the responsibility of Bayou Crossing Limited Partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit Inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to**above present fairly, in all materialrespects, the financial position of Bayou Crossing Limited Partnership, as ofDecember 31, 2003, 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 audit was conductedfor the purpose of forming an opinion, on the basic financial statements takenas a whole. The supplemental information included in the schedules (shown onpages 17 and 18) 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 financial**statements taken as a whole.

 

 

RESTIVO MONACELLI LLP

Mansfield, Massachusetts

February 2, 2004

 

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INDEPENDENT AUDITOR’SREPORT

 

To the Partners

Crystal City / FestusPartnership, LP

 

We have audited theaccompanying balance sheets of Crystal City/Festus Partnership, LP as ofDecember 31, 2002 and 2003, and the related statements of income, owners’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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Crystal City/Festus Partnership, LP as ofDecember 31, 2002 and 2003, and results of its operations, changes inowners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

HOWE & ASSOCIATES, PC

Columbia, Missouri

February 4, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

Partners

Edmond Properties,

An Oklahoma LimitedPartnership

 

We have audited theaccompanying balance sheets of **EDMOND PROPERTIES, AN OKLAHOMA LIMITED PARTNERSHIP**as of December 31, 2003, and the related statements of operations, changesin partners’ capital 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.  The financial statements of **EDMONDPROPERTIES, AN OKLAHOMA LIMITED PARTNERSHIP**as of December 31,2002 were audited by other auditors whose report dated February 5, 2003,expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable assurance 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of **EDMOND PROPERTIES, AN OKLAHOMA LIMITED PARTNERSHIP**as of December 31, 2003, 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.

 

 

HANKINS & CO., CPA’S

Fort Smith, Arkansas

February 13, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Halls Ferry Apartments,L.P.

 

We have audited theaccompanying balance sheets of Halls Ferry Apartments, L.P. as ofDecember 31, 2003 and 2002 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all material respects,the financial position of Halls Ferry Apartments, L.P. as of December 31,2003 and 2002, and the results of its operations, changes in partners, equityand cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 15 and 16 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 basic financialstatements taken as a whole.

 

 

MECHSNER & COMPANY,LLC

Springfield, Missouri

February 25, 2004

 

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IndependentAuditors’ Report

 

Partners

Ithaca I LimitedPartnership

Ithaca, Michigan

 

We have audited theaccompanying balance sheets of Ithaca I Limited Partnership, Rural DevelopmentProject No.  26-029-383113117 as ofDecember 31, 2003 and 2002, and the related statements of income,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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Ithaca I Limited Partnership as ofDecember 31, 2003 and 2002, 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 February 13,2004, 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 audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplementary information presented on pages 12 through 19 ispresented for purposes of complying with the requirements of Rural Developmentand is not a required part of the basic financial statements. 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 materialrespects, in relation to the basic financial statements taken as a whole.

 

 

YEO & YEO, CPA’S

Lansing, Michigan

February 13, 2004

 

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**INDEPENDENTAUDITORS’ 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, 2003, and the related statementof operations, changes in 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Kimbark 1200 Associates Limited PartnershipFHA Project No. 101-98011, as of December 31, 2003, and the results of itsoperations and the changes in the partners’ equity and its cash flows for theyear then ended, in conformity with accounting principles generally accepted inthe United States of America.

 

In accordance withGovernment Auditing Standards, we have also issued our reports datedFebruary 14, 2004 on our consideration of Kimbark 1200 Associates, LimitedPartnership internal control and on our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. Those reports are anintegral part of the audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

We conducted our auditfor the purpose of forming an opinion on the basic financial statements ofKimbark 1200 Associates, Limited Partnership taken as a whole. The accompanyingsupplemental information (shown on pages thirteen through fifteen) is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements of Kimbark 1200 Associates, 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 basic financial statements taken as awhole.

 

 

Z.A. ZUDYK, CPA’S

Longmont, Colorado

February 14, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

MATHIS APARTMENTS, LTD

 

We have audited theaccompanying balance sheet of MATHIS APARTMENTS, LTD, RHS Project No.51-005-721010606 as of December 31, 2003, and the related statements ofoperations, partners’ equity (deficit) 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. The financial statements of MATHIS APARTMENTS,LTD as of December 31, 2002, were audited by other auditors whose reportdated February 26, 2003 expressed an unqualified opinion on thosestatements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of MATHIS APARTMENTS, LTD as ofDecember 31, 2003, and the results of its 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 15 through 21 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedMarch 19, 2004, on our consideration of MATHIS APARTMENTS, LTD’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is anintegral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with the report in considering the results of ouraudit.

 

 

BOND & TOUSIGNANT,CPA’S

Monroe, Louisiana

March 19, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

ORANGE GROVE SENIORS,LTD.

 

We have audited theaccompanying balance sheet of ORANGE GROVE SENIORS, LTD., RHS Project No.50-025-742670408 as of December 31, 2003, and the related statements ofoperations, partners’ equity (deficit) 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. The financial statements of ORANGE GROVESENIORS, LTD. as of December 3 1, 2002, were audited by other auditors whosereport dated February 20, 2003 expressed an unqualified opinion on thosestatements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of ORANGE GROVE SENIORS, LTD. as ofDecember 31, 2003, and the results of its 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 15 through 21 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.

 

In accordance with *GovernmentAuditing Standards,*we**have also issued our report datedMarch 19, 2004, on our consideration of ORANGE GROVE SENIORS, LTD.’sinternal 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 *Government Auditing Standards*andshould be read in conjunction with the report in considering the results of ouraudit.

 

 

BOND & TOUSIGNANT,CPA’S

Monroe, Louisiana

March 19, 2004

 

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**IndependentAuditor’s Report**

 

To The Partners

Sacramento SRO LimitedPartnership

A California LimitedPartnership

7 10 West Ivy

San Diego, CA 92101

 

 

We have audited theaccompanying balance sheets of Sacramento SRO Limited Partnership, A CaliforniaLimited Partnership, as of December 31, 2003 and 2002, 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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Sacramento SRO Limited Partnership, ACalifornia Limited Partnership as of December 31, 2003 and 2002, 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

San Diego, CA

February 2, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

South Hills Apartments,L.P.

 

We have audited theaccompanying balance sheets of South Hills Apartments, L.P. as ofDecember 31, 2003 and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of South Hills Apartments, L.P. as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 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 our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

 

GORACKE RITTERBUSH &PIOTROWSKI, LLP

Omaha, Nebraska

January 23, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

ST. PETERS VILLA, LP

 

We have audited theaccompanying balance sheets of St. Peters Villa, LP as of December 31,2002 and 2003, and the related statements of income, owners’ 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 financial statementpresentation. We believe that our audits provide a reasonable basis for ouropinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of St. Peters Villa, LP as of December 31,2002 and 2003, and results of its operations, changes in owners’ equity andcash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

 

HOWE & ASSOCIATES, PC

Columbia, Missouri

February 19, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Village Woods Estates,L.P.

 

We have audited theaccompanying balance sheets of Village Woods Estates, L.P. as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Village Woods Estates, L.P. as ofDecember 3 1, 2003 and 2002, 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.

 

 

PAULUS & COMPANY,CPA’S

Hamburg, NY

January 30, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

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, 2003 and 2002 and the related statement ofoperations 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by****the Comptroller General ofthe United States. Those standards require that we plan and perform the auditto obtain 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Autumn Ridge Associates as ofDecember 31, 2003 and 2002, and the results of its operation and its cashflow for the year then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

Our audit was] made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 14 through 17 is presented for thepurpose 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.

 

YOUNG & PRICKITT

Roanoke, VA

February 12, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

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, RHS Project No.:48-038-621467876, as of December 31, 2003 and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America 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, thefinancial statements referred to above present fairly, in all materialrespects, 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, 2003 and 2002, 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 accordance with *GovernmentAuditing Standards,*we have also issued a report datedJanuary 3 0, 2004 on our consideration of Brownsville Associates Limited’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts, and grants.

 

Our audits were made forthe purpose 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 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.

 

 

YORK, DILLINGHAM &COMPANY, PLLC

Columbia, Tennessee

January 30, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Elm Street Associates, LP

 

We have audited theaccompanying balance sheet of Elm Street Associates, LP as of December 31,2003 and the related statement of operations, changes in partners’ capital(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 the financial statements based onour audit.  The financial statements ofElm Street Associates. L.P. as of December 31, 2002 were audited by otherauditors whose report**dated March 21, 2003 expressed anunqualified opinion on those statements, prior to restatement. We also auditedthe adjustments described in Note 9 that were applied to restate the 2002financial statements. In our opinion such adjustments are appropriate and havebeen properly applied.

 

We conducted our audit inaccordance with auditing standards generally Accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain,reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit in accordance with these standards 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 auditprovides a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Elm Street Associates, LP, as ofDecember 31, 2003, 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 audit was madeprimarily for the purpose****of formulating an opinion on the basicfinancial statements taken as a whole. The supplemental schedule ofoperating expenses included herein, although not considered necessary for afair presentation of financial position and results of operations in conformitywith accounting principles and generally accepted in the United States ofAmerica, is presented for supplemental analysis purposes and has been subjectedto the auditing procedures applied in the audit of the basic financial statementsand is, in our opinion, stated fairly in all material respects in relation tothe basic financial statements taken as a whole.

 

ROSENBERG NEUWIRTH KUCHER

April 7, 2004

 

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**INDEPENDENTAUDITORS REPORT**

 

To the Partners

Los Lunas ApartmentsLimited Partnership dba Hillridge Apartments

Los Lunas, New Mexico

 

We have audited theaccompanying balance sheet of Los Lunas Apartments Limited Partnership d/b/aHillridge Apartments as of December 31, 2003 and 2002, and the relatedstatements of operations, partners’ equity, and cash flows for the years 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 inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatements. 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 financialstatements presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Los Lunas Apartments Limited Partnershipdba Hillridge Apartments as of December 31, 2003 and 2002, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

 

PALMER & CO., P.A.

Albuqueque, NM

April 3, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

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, 2003 and 2002, 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 audit

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and *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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of New Hilltop Apartments, A LimitedPartnership, as of December 31, 2003 and 2002, 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 audits were made forthe purpose 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedJanuary 24, 2004 on our consideration of New Hilltop Apartments, A LimitedPartnership’s internal control over financial reporting and on 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.

 

 

DURANT, SCHRAIBMAN &LINDSAY

Columbia, SC

January 24, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

NORTH HAMPTON PLACE, LP

 

We have audited theaccompanying balance sheets of North Hampton Place, LP as of December 31,2002 and 2003, and the related statements of income, owners’ 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basis,for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of North Hampton Place, LP as ofDecember 31, 2002 and 2003, and results of its operations, changes inowners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

HOWE & ASSOCIATES, PC

Columbia, Missouri

February 24, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Northfield Housing, L.P.

 

I have audited theaccompanying balance sheets of Northfield Housing, LP as of December 31,2003 and 2002, 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 audits.

 

I conducted my audits inaccordance with auditing standards generally accepted in the United States ofAmerica. 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,for my opinion.

 

In my opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Northfield Housing, LP as ofDecember 31, 2003 and 2002, and results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

My audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas 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 my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

BOB T. ROBINSON, CPA

Jackson, Mississippi

March 1, 2004

 

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IndependentAuditors’ Report

 

To the Partners

Overton Associates, L.P.

Elko, Nevada

 

We have audited theaccompanying balance sheets of Overton Associates, L.P. (the partnership),Rural Development Case No. 33-002-0880283493, as of December 31, 2003 and2002 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 testbasis, 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the partnership as of December 31,2003 and 2002, and results of its operations, changes in partners’ equity andits cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*We have issued a report dated January 27,2004, on our consideration of the Partnership’s internal control over financialreporting and over tests of its compliance with laws, regulations, contractsand grants. 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 audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplemental information on pages 11 through 13 is presentedfor the purpose of additional analysis and is not a required part of the basicfinancial statements of the Partnership for the year ended December 31,2003. 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.

 

 

CHILD SULLIVAN &COMPANY

Kaysville, Utah

January 27, 2004

 

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IndependentAuditors’ Report

 

To the Partners

**Pahrump Valley Investors**

**A Wyoming Limited Partnership**

Pahrump, Nevada

 

We have audited theaccompanying balance sheets of Pahrump Valley Investors, A Wyoming LimitedPartnership, USDA, Rural Development Project Number 33-019-680204949, as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in 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 auditsin accordance with auditing standards generally accepted in the United Statesof America 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Pahrump Valley Investors, as ofDecember 31, 2003 and 2002, and 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedJanuary 15, 2004 on our consideration of Pahrump Valley Investors’internal control structure and a report dated January 15, 2004 on itscompliance with laws and regulations. Those reports are 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 ouraudits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental information is presented for purposesof additional analysis and is not a required part of the basic financialstatements of Pahrump Valley Investors. Such information has been subjected toauditing procedures applied in our 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.

 

 

CHILD SULLIVAN &COMPANY

Kaysville, Utah

January 27, 2004

 

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**IndependentAuditors’ Report**

 

 

To the Partners

Woodlands Associates,L.P.

Elko, Nevada

 

We have audited theaccompanying balance sheets of Woodlands Associates, L.P. (the partnership),Rural Development Case No. 33-004-0880314570, as of December 31, 2003 and2002, and the related statements of operations, changes in partners’ equity andcash 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 auditsin accordance with auditing standards generally accepted in the United Statesof America 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the partnership, as of December 31,2003 and 2002, and results of its operations, changes in partners’ equity andits cash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedJanuary 27, 2004 on our consideration of the partnership’s internalcontrol and on our tests of its compliance with certain provisions of laws,regulations, contracts and grants. Those reports are 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 ouraudits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental information shown on pages 11 through13 is presented for purposes of additional analysis and is not a required partof the basic financial statements of the partnership for the year endedDecember 31, 2003. Such information has been subjected to auditingprocedures 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.

 

 

CHILD SULLIVAN &COMPANY

Kaysville, Utah

January 27, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners of

SG - Wyandotte, L.P.

( A California LimitedPartnership)

Fresno, CA

 

We have audited theaccompanying balance sheets of SG-Wyandotte, LP, A California LimitedPartnership, (the partnership), as of December 31, 2003 and 2002, and therelated statements of operations, partners’ equity (deficit) and cash flows forthe 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the partnership, as of December 31,2003 and 2002, and results of its operations, changes in partners’ equity(deficit) and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental information shown on pages 12 through13 is presented for purposes of additional analysis and is not a required partof the basic financial statements. Such information has been subjected toauditing procedures applied in our 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.

 

JANZEN TAMBERI & WONG

Fresno, CA

January 21, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Stanton Associates,Limited

 

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, 2003 and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and *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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Stanton Associates, Limited (a Tennesseelimited partnership) d/b/a Stanton Village Apartments, RHS Project No.:48-038-621542356, as of December 31, 2003 and 2002, 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 accordance with *GovernmentAuditing Standards,*we have also issued a report datedJanuary 31, 2004 on our consideration of Stanton Associates Limited’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts, and grants.

 

Our audits were made forthe purpose 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 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.

 

YORK DILLINGHAM &COMPANY PLLC

Columbia, Tennessee

January 31, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

ZWOLLE PARTNERSHIP

 

We have audited theaccompanying balance sheet of Zwolle Partnership (the Partnership) as ofDecember 31, 2003, and the related statements of income, partners’ equity,and 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. Thefinancial statements of Zwolle Partnership as of December 31, 2002, wereaudited by other auditors whose report dated February 20, 2003, expressedan unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the Standards for Financial and Compliance Audits contained in *Government AuditingStandards*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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Zwolle Partnership as of December 31,2003, and the results of its operations and its cash flows for the year thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedFebruary 4, 2004, on our consideration of Zwolle Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is 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.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedules listed in the table of contents are presentedfor the purpose of additional analysis and are not a required part of the basicfinancial statements of Zwolle Partnership. Such information has been subjectedto the auditing 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.

 

 

CAMERON HINES & HARTT

West Monroe, Louisiana

February 4, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

352 Lenox Associates,L.P.

 

We have audited theaccompanying balance sheet of 352 Lenox Associates, L.P. as ofDecember 31, 2003 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 conducted oar audit inaccordance with auditing standards generally accepted in the United States ofAmerica 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 audit *alsoincludes 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of 352 Lenox Associates, L.P. as ofDecember 31, 2003, and the results of its operations, the changes inpartners’ equity and cash flows for the year then ended, in conformity withaccounting principles generally accepted in the United States of America.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The *supplemental*information on page 13 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 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.

 

 

Lipsky, Goodkin &Co., P.C.

New York, New York

March  22, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners

Ethel Housing, L.P.

 

I have audited theaccompanying balance sheets of Ethel Housing, L.P., RD Case No.28-0040640823417, as December 31, 2003 and 2002, and the related statementsof operations, partners’ equity, and cash flows for the years then ended.  These financial statements are theresponsibility of the Ethel Housing, L.P.’s management. My responsibility is toexpress an opinion on these financial statements based on my audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in GovernmentAuditing Standards issued by the Comptroller General of the United States.Those standards 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 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 thefinancial statements, referred to above, present fairly, in all materialrespects, the financial position of Ethel Housing, L.P. at December 31,2003 and 2002, 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 accordance withGovernment Auditing Standards, and the audit program issued by the U.S.Department of Agriculture, Rural Development, I have also issued my reportdated February 15, 2004 on my consideration of the Ethel Housing, L.P.’sinternal control over financial reporting and my tests of its compliance withcertain provisions of laws, regulations, contracts, grants, and specific requirementsof RD programs. That 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 my audit.

 

My audit was performedfor the purpose of forming an opinion on the financial statements taken as awhole. The accompanying supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements. Such information, except for the current budget andproposed budget columns on pages I5 through 18, on which I express no opinion,has been subjected to the auditing procedures applied in the audit of thefinancial statements and, in my opinion, is fairly stated, in all materialrespects, in relation to the financial statements taken as a whole.

 

 

J.E. Fortenberry, III, PC

Ethel, Mississippi

February 15, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the partners

Hurricane Hills I LC

 

I have audited theaccompanying balance sheets of Hurricane Hills LC as of December 31, 2003,and the related statements of operations, partners’ equity and cash flows forthe year 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.

 

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 includesexamination, on a test basis, evidence supporting the amounts and disclosuresin the 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 provided a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly in all material respects,the financial position of Hurricane Hills I LC as of December 31, 2003,and the results of its operations, changes in Partners’ equity and cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

MORRIS ACCOUNTING CO.,INC.

Cedar City, VT

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the partners

Main Everett HousingLimited Partnership

 

We have audited theaccompanying balance sheets of Main Everett Housing Limited Partnership as ofDecember 31, 2003 and 2002, 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Main Everett Housing Limited Partnership asof December 31, 2003 and 2002, and the results of its operations, changesin partners’ equity, and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose 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 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.

 

 

Tobin & Company

Larchmont, New York

January 26, 2004

 

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**IndependentAuditors’ Report**

 

 

To the Partners of

Maple Limited Partnership

 

We have audited theaccompanying balance sheets of Maple Limited Partners (the Partnership) as ofDecember 31, 2003 and 2002, and the related-statements of operations,changes in partners’ equity, and cash flows for 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 auditsin accordance with auditing standards generally accepted in the Unites Statesof 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 audit to obtainreasonable assurance 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the Partnership as of December 31,2003 and 2002, and the results of its operations, changes in partners’ equity,and cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 18, 2004, on our consideration of the Partnership’s internalcontrol and on our tests of its compliance with certain provisions of laws,regulations, contracts and grants, and reports dated February 18, 2004, onits compliance with specific requirements - applicable, to major and nonmajorprograms and specific requirements applicable to Fair Housing andon-Discrimination. Those reports are 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 audits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental data is presented for purposes ofadditional 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.

 

Kevin P. Martin &Associates, P.C.

Braintree, Massachusetts

February 18, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

M.R.H., L.P.

 

We have audited theaccompanying balance sheets of M.R.H., L.P. as of December 31, 2003 and2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of M.R.H., L.P. as of December 31, 2003and 2002, and the results of its operations, changes in partners’ equity andcash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas 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.

 

 

Boyd, Franz &Stephans, LLP

St. Louis, Missouri

January 23, 2004

 

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INDEPENDENT AUDITORS’REPORT

 

 

To the Partners

Washington ArmsApartments

 

 

We have audited theaccompanying balance sheet of HUD Project #046-NI093 of Washington ArmsApartments (a 1imited partnership) as of December 31, 2003, and therelated statements of profit and loss, changes in deficiency in partners’capital and cash flows for the year ended December 31, 2003.  These financial statements are theresponsibility of the Project’s management. Our responsibility is to express anopinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica, and the standards applicable to financial audits contained inGovernment Auditing Standards**issued by the Comptroller General of theUnited States. Those standards 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of HUD Project #046-NI093 of Washington ArmsApartments (a limited partnership) as of December 31, 2003, and therelated statements of profit and loss, changes in deficiency in partners’capital for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards, we*have also issued our reports datedJanuary 22, 2004 on our consideration of Washington Arms Apartments’internal controls and on our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. Those reports are 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 audit was made forthe purpose of forming an opinion on the financial statements taken as a -whole. The accompanying supplementary information shown on pages 12-16 ispresented for the purposes of additional analysis and is not a required part ofthe basic financial statements of HUD Project #046-NIO93. 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, Locey &Associates, Ltd.

Certified PublicAccountants

January 22, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the partners

Osborne Housing LimitedPartnership

 

We have audited theaccompanying balance sheets of Osborne Housing Limited Partnership as ofDecember 31, 2003 and 2002, 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Osborne Housing Limited Partnership as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose 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 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.

 

 

Tobin & Company

New York, New York

January 24, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To the Partners

Osborne Housing LimitedPartnership

 

We have audited theaccompanying balance sheets of Osborne Housing Limited Partnership as ofDecember 31, 2003 and 2002, 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-express an opinion on these financial statements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Osborne Housing Limited Partnership as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 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 our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

 

Tobin & Company

Larchmont, New York

January 24, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Sandstone Village LimitedPartnership

 

We have audited theaccompanying balance sheets of Sandstone Village Limited Partnership as ofDecember 31, 2003 and 2002, 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-express an opinion on these financial statements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basis forour opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Sandstone Village Limited Partnership as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 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 our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

JUNKERMIER, CLARK,CAMPANELLA, STEVENS PC

Great Falls, Montana

February 6, 2004

 

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INDEPENDENT AUDITOR’SREPORT

 

 

The Partners

Shannon Housing, L.P.

 

I have audited theaccompanying balance sheets of Shannon Housing, L.P., RD Case No.28-0410640835658 equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Shannon Housing, L.P.’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment Auditing 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 audit provides a reasonable basis formy opinion.

 

In my opinion financialstatements, referred to above, present fairly all material respects, the financialposition of Shannon Housing, L.P. at December 31, 2003 and 2002, and theresults of its operations and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordance withGovernment Auditing Standards, and the audit programissued by the U.S.Department of Agriculture, Rural Development, I have also issued my reportdated February 15, 2004 on my consideration of the Shannon Housing, L.P.’sinternal control over financial reporting and my tests of its compliance withcertain provisions of laws, regulations, contracts, grants, and specificrequirements of RD programs. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be readin conjunction with this report in considering the results of my audit.

 

My audit was performedfor the purpose of forming an opinion on the financial statements taken as awhole. The accompanying supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which I express no opinion,has been subjected to the auditing procedures applied in the audit of thefinancial statements and, in my opinion, is fairly stated, in all materialrespects, in relation to the financial statements taken as a whole.

 

 

J.E. Fortenberry, III, PC

Shannon, Mississippi

February 15, 2004

 

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**INDEPENDENT AUDITORS’ REPORT**

 

 

To the Partners of

Sutton Place Apartments

(A Limited Partnership)

 

We have audited theaccompanying balance sheet of HUD Project #073-55035, 073-55037, 073-55038 and073-55062 of Sutton Place Apartments (a limited partnership) as ofDecember 31, 2003, and the related statements of profit and loss, changesin deficiency in partners’ capital and cash flows for the year 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 audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica, and the standards applicable to financial audits contained inGovernment 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of HUD Project #073-55035,073-55037,073-55038, 073-55061 and 073-55062 as of December 31, 2003 and the resultsof its operations and its cash flows and its changes in deficiency in partners’capital for the year the ended in conformity with accounting principlesgenerally accepted in the United State of America.

 

In accordance withGovernment Auditing Standards*,*we have also issued reports datedJanuary 22, 2004 on our consideration of Sutton Place Apartments’ internalcontrol and on our tests of its compliance with certain provisions of lawsregulations, contracts and grants. Those reports are an integral part of anaudit performed in accordance with Government Auditing Standards**andshould be read in conjunction with this report.

 

Our audit was conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplementary information shown on pages 14-20 ispresented for the purposes of additional analysis and is not a required part ofthe basic financial statements of HUD Project #073-55035, 073-55037, 073-55038,073-55061 and 073-55062. 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.

 

 

Waite, Locey &Associates, Ltd.

Cincinnati, Ohio

January 22, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

The Partners

West Point Housing, L.P.

 

I have audited theaccompanying balance sheets of West Point Housing, L P., RD Case No.28-0130640834734, as of December 31, 2003 and 2002, 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.  My responsibility is to express an opinionon these financial statements based on my audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment Auditing 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 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 audit provides a reasonable basis for my opinion.

 

In my opinion thefinancial statements, referred to above, present fairly in all materialrespects, the financial position of West Point Housing, L.P. atDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance withGovernment Auditing Standards, and the audit program issued by the U.S.Department of Agriculture, Rural Development, I have also issued my reportdated February 15, 2004 on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD transactions.

 

My audit was performedfor the purpose of forming an opinion on the financial statements taken as awhole. The accompanying supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which I express no opinion,is fairly stated in all material respects, in relation to the financialstatements taken as a whole.

 

 

J.E. Fortenberry, III, PC

Brandon, Mississippi

February 15, 20045

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners of

SG - Wyandotte, L.P. (ACalifornia Limited Partnership) Fresno, California

 

We have audited theaccompanying balance sheets of West Pointe Housing, L.P., RD Case No.28-013-064834734, as of December 31, 2003 and 2002, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended.  These financial statements arethe responsibility of the Partnership’s management.  My responsibility is to express an opinion on these financialstatements based on my audit.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all material respectsthe financial position of the Partnership as of December 31, 2003 and 2002and the results of its operations, changes in partners’ equity (deficit) andcash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on pages 12 and 13 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements.  Such informationhas 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.

 

 

Janzen, Tamberi &Wong Accountancy Corporation

Fresno, California

January 21, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

200 East AvenueAssociates, L.P.

 

We have audited theaccompanying balance sheet of 200 East Avenue Associates, LP (a limitedpartnership) as of December 31, 2003 and 2002 and the related statementsof operations and partners’ capital (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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of 200 East Avenue Associates, L.P. as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United of America.

 

 

Salmin, Celona, Wehrle& Flaherty, LLP

Rochester, New York

February 2, 2004

 

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**IndependentAuditor’s Report**

 

 

To the Partners

A.V.A. LimitedPartnership

 

We have audited theaccompanying balance sheets of A.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 2003 and 2002, and the related 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 auditsin accordance with U.S. generally accepted auditing standards and the standardsapplicable to financial 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of A.V.A. Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is 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 audits.

 

Our audits were made forthe purpose 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.

 

Salmin, Celona, Wehrle& Flaherty, LLP

Rochester, New York

January 31, 2004

 

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INDEPENDENTAUDITORS REPORT

 

 

To the Partners

Beauregard ApartmentsPartnership

A Louisiana Partnershipin Commendam

 

We have audited theaccompanying balance sheets of Beauregard Apartments Partnership, A LouisianaPartnership in Commendam (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Beauregard Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows foryears then ended in conformity with generally accepted accounting principles.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

March 17, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

Beckwood Manor OneLimited Partnership

 

We have audited theaccompanying balance sheets of Beckwood Manor One Limited Partnership, RDProject No. 03-025-710677259 (the Partnership), as of December 31, 2003and 2002 and the related statements of profit (loss), changes in partners’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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Beckwood Manor One Limited Partnership asof December 31, 2003 and 2002, 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 accordance with *GovernmentAuditing Standards,*we have also issued our report datedFebruary 7, 2004 on our consideration of the Partnership’s internal controlover financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is 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.

 

 

Little, Shaneyfelt,Marshall, Romine & Co.

Little Rock, Arkansas

February 7, 2004

 

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**IndependentAuditors’ Report**

 

 

To the Partners of

Bradley Phase I LimitedPartnership

 

We have audited theaccompanying balance sheets of Bradley Phase I Limited Partnership (thePartnership) as of December 31, 2003 and 2002, and the related statementsof operations, changes in 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bradley Phase I Limited Partnership as ofDecember 31, 2003 and 2002, 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 18, 2004, on our consideration of Bradley Phase I LimitedPartnership’s internal control and on our tests of its compliance with certainprovisions of laws, regulations, contracts and grants, and reports datedFebruary 18, 2004, on its compliance with specific requirements applicableto major programs and specific requirements applicable to Fair Housing andNon-Discrimination. Those reports are 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 audits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental data is presented for purposes ofadditional 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.

 

 

Kevin P. Martin &Associates, P.C.

Braintree, Massachusetts

February 18, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners of

Bradley Phase II LimitedPartnership

Pilot House, Lewis Wharf

Boston, Massachusetts02110

 

We have audited theaccompanying balance sheets of Bradley Phase II Limited Partnership (thePartnership) as of December 31, 2003 and 2002, and the related statementsof operations, changes in 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the Partnership as of December 31,2003 and 2002, 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 18, 2004, 2004, on our consideration of the Partnership’sinternal control and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants, and reports dated February 18,2004, on its compliance with specific requirements applicable to major programsand specific requirements applicable to Fair Housing and Non-Discrimination.Those reports 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 audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental data is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements of the 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 basicfinancial statements taken as a whole.

 

 

Kevin P. Martin &Associates, P.C.

Braintree, Massachusetts

February 18, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Brookhaven ApartmentsPartnership

A Louisiana Partnershipin Commendam

 

We have audited theaccompanying balance sheets of Brookhaven Apartments Partnership, A LouisianaPartnership in Commendam (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Brookhaven Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

February 27, 2004

 

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INDEPENDENT AUDITORS’REPORT

 

 

To the Partners

Butler EstatesPartnership

A Louisiana Partnershipin Commendam

Mansfield, Louisiana

 

We have audited theaccompanying balance sheets of Butler Estates Partnership, A LouisianaPartnership in Commendam (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Butler Estates Partnership, A LouisianaPartnership in Commendam as of December 31, 2003 and 2002, and the resultsof its operations, changes in partners’ equity and cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

March 5, 2004

 

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**IndependentAuditors’ Report**

 

 

To the Partners of

Butler Street/HanoverTowers Limited Partnership

 

We have audited theaccompanying balance sheets of Butler Street/Hanover Towers Limited Partnership(the Partnership) as of December 31, 2003 and 2002, and the relatedstatements of operations, changes in 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the Partnership as of December 31,2003 and 2002, and the results of its operations, changes in partners’ equity,and cash flows for the years then ended in conformity with accountingprincipals generally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued reports datedFebruary 18, 2004, on our consideration of the Partnership’s internalcontrol and on our tests of its compliance with certain provisions of laws,regulations, contracts and grants, and reports dated February 18, 2004, onits compliance with specific requirements applicable to major 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 audits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental data is presented for purposes ofadditional analysis and is not a required part of the basic financial statementsof the Partnership. 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.

 

 

Pilot House, Lewis Wharf

Braintree, Massachusetts

February 18, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Cameron Place ApartmentsPartnership

A Louisiana Partnershipin Commendam

Mansfield, Louisiana

 

We have audited theaccompanying balance sheets of Cameron Place Apartments Partnership, ALouisiana Partnership in Commendam (the Partnership) as of December 31,2003 and 2002, and the related statements of operations, changes in 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 auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Cameron Place Apartments Partnership, aLouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

February 21, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Decro Nordhoff, L.P.

 

We have audited theaccompanying balance sheets of Decro Nordhoff, L.P. as of December 31,2003 and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Decro Nordhoff, L.P. as of December 31, 2003 and2002, and the results of its operations, changes in partners’ equity and cashflows for the years then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 10 and 11 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 basic financialstatements taken as a whole.

 

 

Tapp, Tapp & Chu,CPA’s

San Marino, California

February 2, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Edgewood EstatesPartnership

 

We have audited theaccompanying balance sheets of Edgewood Estates Partnership, Ltd. (thePartnership) as of December 31, 2003 and 2002 and the related statementsof operations, 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 auditsin accordance with U.S. generally accepted auditing standards. 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Edgewood Estates Partnership, Ltd. as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years then ended inconformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 16 through 17, 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.

 

 

Little & Associates

Monroe, Louisiana

February 3, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Escher SRO Project, L.P.

 

We have audited theaccompanying balance sheets of Escher SRO Project, L.P. (HUD Project No.NJ-39-KO87-0202) (the “Partnership”) as of December 31, 2003 and 2002 andthe related statements of operations, 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Escher SRO Project, L.P. (HUD Project No.NJ-39-KO87-020-2) as of December 31, 2003 and 2002, 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our reports datedJanuary 22, 2004 on our consideration of Escher SRO Project, L.P.’sinternal control, its compliance with specific requirements applicable to majorHUD programs, and specific requirements applicable to Fair Housing andNon-Discrimination. These reports are 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 audits.

 

ROTHSTEIN, KASS

Roseland, New Jersey

January 22, 2004

 

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**IndependentAuditor’s Report**

 

 

To the Partners

G.V.A. LimitedPartnership

Charlotte, North Carolina

 

We have audited theaccompanying balance sheets of G.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 2003 and 2002, and the related statementsof operations, partners’ equity, and cash flows 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 auditsin accordance with U.S. generally accepted- auditing standards and, thestandards applicable to financial 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 ouraudits provide a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of G.V.A. Limited Partnership as ofDecember 31, 2003 and 2002,and the results of its operations and its cash *flows for*theyears then ended in conformity with U.S. generally accepted accountingprinciples.

 

In accordance with *GovernmentAuditing Standards, we*have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is 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 audits.

 

Our audits were made forthe purpose 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.

 

Bernard Robinson &Company, LLP

Charlotte, North Carolina

January 31, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

Grayson Manor LimitedPartnership

 

We have auditedthe accompanying balance sheet of Grayson Manor Limited Partnership (a Virginialimited partnership) as of December 31, 2002 and December 31, 2003,and the related statements of operations, and cash flows and changes in owners’equity 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 audit inaccordance with auditing standards generally accepted in the United states 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 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Grayson Manor Limited Partnership as ofDecember 31, 2002 and December 31, 2003, and the results of itsoperations, changes in partners’ equity, and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates.

 

In accordance *withGovernment Auditing*Standards, we have also issued our report datedJanuary 30, 2004 on our consideration of Grayson Manor LimitedPartnership’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws and regulations.

 

Dooley & Vicars

Richmond, Virginia

January 30, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To the Partners of

SG -Hazeltine, L.P.

(A California LimitedPartnership)

 

 

We have audited theaccompanying balance sheets of SG – Hazeltine, L.P., a California LimitedPartnership (the “Partnership”) as of December 31, 2003 and 2002, and therelated statements of operations, partners’ equity and cash flows for the yearsthen ended.  These financial statementsare the responsibility of the Partnership’s management.  My responsibility is to express an opinionon these financial statements based on my audit.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all material respectsthe financial position of the Partnership as of December 31, 2003 and 2002and the results of its operations, changes in partners’ equity (deficit) andcash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on pages 12 and 13 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements.  Such information hasbeen 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.

 

 

Janzen, Tamberi &Wong Accountancy Corporation

Fresno, California

January 21, 2004

 

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**IndependentAccountants’ Report**

 

 

To The Partners

M.B. ApartmentsAssociates, Ltd.

 

We have audited theaccompanying balance sheets of M.B. Apartments Associates, Ltd. (A LimitedPartnership) as of December 31, 2003 and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of M.B. Apartments Associates, Ltd. (A LimitedPartnership) as of December 31, 2003 and 2002, and the results of itsoperations, changes in partners’ equity and cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 13 through 16 are presented forthe purposes of additional analysis and are 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.

 

SHARPTON, BRUNSON &COMPANY, PA.

Ft. Lauderdale, FL

January 22, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

Meridian Housing, L.P.

Meridian, Mississippi

 

We have audited theaccompanying balance sheets of Meridian Housing, LT. (a Mississippi limitedpartnership), RHS Project No. 28-038-0640893892 as of December 31, 2003and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Meridian Housing, L.P. as ofDecember 31,2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in theUnited States of America.

 

Our audits were made forthe purpose 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 RD1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7).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.

 

 

Matthews, Cutrer &Lindsay, P.A.

Meridian, Mississippi

January 28, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners NewDevonshire II Limited Partnership

(an Ohio LimitedPartnership) London, Ohio

 

We have audited theaccompanying balance sheets of New Devonshire H Limited Partnership (an OhioLimited Partnership), RD Project No. 41-049-311449943, as of December 31,2003 and 2002and the related statements of income, changes in partners’ capitaland cash flows 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 auditsin accordance with the 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, and the U.S. Department of Agriculture, Farmers Home Administration“Audit Program”. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion thefinancial statements referred to above present fairly, in all materialrespects, the financial position of New Devonshire 11 Limited Partnership as ofDecember 31, 2003 and 2002, and the results of operations, and cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordance withGovernment *AuditingStandards,*we have also issued reports dated February 6, 2004,on our consideration of New Devonshire 11 Limited Partnership’s internalcontrol and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grants. Those reports are an integral part of anaudit performed in accordance with Governmental Auditing Standards and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. and accompanying supplementary information on pages 11 to 18 ispresented for the purposes of additional analysis and is not a required part ofthe basic financial statements of New Devonshire II 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, inall material respects, in relation to the basic financial statements taken as awhole

 

 

KLINE AND LONDON

Beachwood, Ohio

February 6, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

New Devonshire WestLimited Partnership (an Ohio Limited Partnership)

 

We have audited theaccompanying balance sheets of New Devonshire West Limited Partnership (an OhioLimited Partnership), RD Project No. 41-049-311449844, as of December 31,2003 and 2002 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 management of New Devonshire West LimitedPartnership. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our auditsin accordance with the auditing standards generally accepted in the UnitesStates of America and the standards applicable to financial audits contained in*GovernmentAuditing Standards,*issued by the Comptroller General of the UnitedStates, and the U.S. Department of Agriculture, Farmers Home Administration“Audit Program”. Those standards require that we plan and perform the audits toobtain reasonable assurance 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, financialstatements referred to above present fairly, in all material respects, thefinancial position of New Devonshire II Limited Partnership as ofDecember 31, 2003 and 2002, 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.

 

In accordance with *GovernmentAuditing Standards, we*have also issued reports datedFebruary 6, 2004, on our consideration of New Devonshire West LimitedPartnership’s internal control and on our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. Those reports are anintegral part of an audit performed in accordance with Governmental AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplementary information on pages 11 to 18 ispresented for the purposes 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, inall material respects, in relation to the basic financial statements taken as awhole.

 

KLINE AND LONDON

Beachwood, Ohio

February 6, 2004

 

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**IndependentAuditor’s Report**

 

 

To the Partners

Powell Valley LimitedPartnership

 

I have audited theaccompanying balance sheets of Powell Valley Limited Partnership as ofDecember 31, 2003 and 2002, and the related statements of operations,partners’ deficit 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 my audits inaccordance with auditing standards generally accepted in the United States 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Powell Valley Limited Partnership as ofDecember 31, 2003 and 2002, 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 accordance with *GovernmentAuditing Standards, I*have also issued my report datedFebruary 15, 2004 on my consideration of Powell Valley LimitedPartnership’s internal control over financial reporting and on my tests of itscompliance with certain provisions of laws and regulations.

 

 

Kline & London

Beachwood, Ohio

February 15, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Southwind ApartmentsPartnership

A Louisiana Partnershipin Commendam

 

We have audited theaccompanying balance sheets of Southwind Apartments Partnership, A Louisiana Partnershipin Commendam (the Partnership) as of December 31, 2003 and 2002, and therelated statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Southwind Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

March 4, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

T.R. Bobb ApartmentsPartnership A Louisiana Partnership in Commendam

 

We have audited theaccompanying balance sheets of T.R. Bobb Apartments Partnership, A LouisianaPartnership in Commendam (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of T.R. Bobb Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlance, LLP

Metairie, Louisiana

March 4, 2004

 

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**IndependentAuditor’s Report**

 

 

To the Partners

V.V.A. LimitedPartnership

Charlotte, North Carolina

 

We have audited theaccompanying balance sheets of V.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 2003 and 2002, 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 auditsin accordance with U.S. generally accepted auditing standards and the standardsapplicable to financial 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 V.V.A. Limited Partnership as of December 31, 2003 and 2002and the results of its operations and its cash flows for the years then endedin conformity with U.S. generally accepted accounting principles.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is anintegral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results of ouraudits.

 

Our audits were made forthe purpose 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 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.

 

 

Bernard Robinson &Company, LLP

Charlotte, North Carolina

January 31, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

The Willows ApartmentsPartnership, Ltd-

 

We have audited theaccompanying balance sheets of The Willows Apartments Partnership, La (thePartnership) as of December 3 1, 2003 and 2002, and the related statementsof operations, partners’ equity and cash flows 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 auditsin accordance with U.S. generally accepted auditing standards and the standardsfor financial and compliance audits contained in *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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of The Willows Apartments Partnership, Ltd. asof December 31, 2003 and 2002, and the results of its operations., changesin partners’ equity and cash flows for the years then ended in conformity withU.S. generally accepted accounting principles.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 18 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 datedFebruary 3, 2004, on our consideration of the Partnerhip’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 shouldbe read in conjunction with this report in considering the results of ouraudits.

 

LITTLE & ASSOCIATES

Monroe, Louisiana

February 3, 2004

 

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IndependentAuditor’s Report

 

To the Partners

W.P.V.A. LimitedPartnership

Charlotte, North Carolina

 

We have audited theaccompanying balance sheets of W. P. V. A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 2003 and 2002, 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 auditsin accordance with U.S. generally accepted auditing- standards and thestandards applicable to financial 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 ouraudits provide a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of W.P.V.A. Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, arid grants. That report is 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 audits.

 

Our audits were made forthe purpose 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.

 

 

Bernard Robinson &Company, LLP

Charlotte, North Carolina

January 31, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

AHAB Project One, L.P.

 

We have audited theaccompanying balance sheets of AHAB Project One, L.P. as of December 31,2003 and 2002, and the related statements of operations, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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 financial statementpresentation. We believe that our audits provide a reasonable basis for ouropinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of AHAB Project One, L.P. as of December 31,2003 and 2002, and the results of its operations, changes in partners’ equity(deficit) and cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 16 and 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 ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

 

Mechsner & Co., L.L.C.

Springfield, Missouri

February 17, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Angelou Associates, L.P.

 

 

We have audited theaccompanying balance sheet of Angelou Associates, L.P. (a New York Statelimited partnership) as of December 31, 2003 and 2002, and the relatedstatement of operations, partners’ equity and cash flows for the years thenended.  The financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audit.  Thefinancial statements of Angelou Associates, L.P. as of December 31, 2002,were audited by other auditors whose report dated February 20, 2003expressed an unqualified opinion on those statements.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audit 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 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, thefinancial statements referred to above present fairly. in all materialrespects, the financial position of Angelou Associates, L.P. as ofDecember 31, 2003 and 2002 and the results of its operations and its cashflows for the year then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audit was conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying information in Schedule I is presented forthe purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the 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.

 

Vargas & Ghigliotty,LLP

New City, New York

February 24, 2004

 

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**Reportof Independent Accountant**

 

 

To the Partners of

CR Housing Associates,L.P.

 

I have audited theaccompanying balance sheets of CR Housing Associates, L.P. (the “Partnership”)as of December 31, 2003 and 2002, 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 inaccordance with generally accepted auditing standards in the United States ofAmerica. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of CR Housing Associates, L.P. as ofDecember 31, 2003 and 2002, and the results of it operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples in the United States of America

 

My audits were made forthe purpose 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 statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

Jose’ R. Barreras, CPA

Hato Rey, PR

January 30, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners of

 Harbor Limited Partnership

 

 

We have audited theaccompanying balance sheets of Harbor Limited Partnership (the Partnership) asof December 31, 2003 and 2002 and the related statements of operations,changes in partners’ equity, and cash flows 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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 thatour audits provide a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the Partnership as of December 31,2003 and 2002, 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report dated March 1,2004 on our consideration of the Partnership’s internal control and on ourtests of its compliance with certain provisions of laws, regulations, contractsand grants, and reports dated February 18, 2004, on its compliance withspecific requirements applicable to major programs and specific requirementsapplicable to Fair Housing and Nondiscrimination.  Those reports are 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 audits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplementary data is presented for purposes ofadditional 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.

 

Pilot, House, Lewis Wharf

Braintree, Massachusetts

February 18, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

Harrisonville Heights, LP

 

We have audited theaccompanying balance sheets of Harrisonville Heights. LP as ofDecember 31,2002 and 2003, and the related statements of income, owners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. Our these financialstatements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America.  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-principles 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Harrisonville Heights, LP as ofDecember 1, 2003 and 2002 and results of its operations, changes inowners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted ‘ the United States of America.

 

 

Howe & Associates, PC

Columbia, Missouri

February 2, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Holly Heights Apartments,L.P.

 

We have audited theaccompanying balance sheets of Holly Heights Apartments, L.P. as ofDecember 31, 2003 and 2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Holly Heights Apartments, L.P. as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 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 our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

 

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

Omaha, Nebraska

January 23, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Magnolia Place ApartmentsPartnership

A Louisiana PartnershipIn Commendam

Mansfield, Louisiana

 

We have audited theaccompanying balance sheets of Magnolia Place Apartments Partnership, ALouisiana Partnership in Commendam (the Partnership) as of December 31,2003 and 2002, and the related statements of operations, changes in 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 auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 a reasonablebasis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Magnolia Place Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for purposes of additional analysis and is not a required part ofthe basic 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

March 11, 2004

 

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**INDEPENDENTAUDITORS’REPORT**

 

 

The Partners

Wayne Housing LimitedPartnership

 

We have audited thebalance sheets regulatory basis of Wayne Housing Limited Partnership as ofDecember 31, 2003 and 2002,and the related statements of operations, changesin partners’ equity and cash flows - regulatory basis 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 auditsin accordance with U.S. 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 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.

 

As described in Note 1,these financial statements were prepared in conformity with the accountingpractices prescribed by the New Jersey Housing and Mortgage Finance Agency,which is a comprehensive basis of accounting other than U.S. generally acceptedaccounting principles.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information shown on pages 13 through 20 is presentedin conformity with the New Jersey Housing and Mortgage Finance Agencyrequirements and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit 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.

 

BERRY DUNN MCNEIL

Portland, Maine

January 23, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners of

1374 Boston Road LimitedPartnership

 

We have audited theaccompanying balance sheet of 1374 Boston Road Limited Partnership as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in partners’ capital and cash flows for the years then ended.

 

We conducted our auditsIn accordance with auditing standards generally accepted in the United Sates ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable 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 theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentaton. We believe thatour audits provide a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of 1374 Boston Road Limited Partnership as ofDecember 31, 2003 and 2002, 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.

 

 

Friedman Alpren &Green LLP

New York, New York

March 19, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

BIENVILLE III APARTMENTS

 

We have audited theaccompanying balance sheet of Bienville III Apartments (the Partnership) as ofDecember 31, 2003, and the related statements of income, partners’ equity,and 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. Thefinancial statements of Bienville III Apartments as of December 31, 2002,were audited by other auditors whose report dated March 3, 2003, expressedan unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the Standards for Financial and Compliance Audits contained in *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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bienville III Apartments as ofDecember 31, 2003, 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 accordance with *GovernmentAuditing Standards,*we have also issued our report datedJanuary 27, 2004, on our consideration of Bienville III Apartment’sinternal 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 *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedules listed in the table of contents are presentedfor the purpose of additional analysis and are not a required part of the basicfinancial statements of Bienville III Apartments.  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.

 

 

Cameron Hines & Hart

West Monroe, Louisiana

January 27, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Blanchard II Apartments

 

We have audited theaccompanying balance sheet of Blanchard II Apartments (the Partnership) as ofDecember 31, 2003, and the related statements of income, partners’ equity,and 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. Thefinancial statements of Blanchard 11 Apartments as of December 31, 2002,were audited by other auditors whose report dated February 19, 2003,expressed an unqualified opinion on those statements.

 

We conducted our audit 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 audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. Ail 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Blanchard 11 Apartments as ofDecember 31, 2003, 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 accordance with *GovernmentAuditing Standards,*we have also issued our report datedFebruary 4, 2004, oil our consideration of Blanchard 11 Apartment’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isail integral 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.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedules listed In the table of contents are presentedfor the purpose of additional analysis and are not a required part of the basicfinancial statements of Blanchard II Apartments. 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.

 

 

Cameron, Hines &Hartt

West Monroe, Louisiana

February 4, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Cottonwood Apartments I

 

We have audited theaccompanying balance sheet of Cottonwood Apartments I (the Partnership) as ofDecember 31, 2003 and the related statements of income, partners’ equity,and 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. Thefinancial statements of Cottonwood Apartments I as of December 31, 2002,were audited by other auditors whose report dated February 20, 2003,expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the Standards for Financial and Compliance Audits contained in *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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Cottonwood Apartments I as ofDecember 31, 2003, 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 accordance with *GovernmentAuditing Standards,*we have also issued our report datedMarch 18, 2004, on our consideration of Cottonwood Apartments I’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is 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.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying schedules listed in the table of contents are presentedfor the purpose of additional analysis and are not a required part of the basicfinancial statements of Cottonwood Apartments 1. 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.

 

 

Cameron, Hines &Hartt

West Monroe, Louisiana

March 18, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

EVANGELINE PARTNERSHIP,ALPIC

 

We have audited theaccompanying balance sheet of EVANGELINE PARTNERSHIP, ALPIC, RHS Project No.22-027-721313386 as of December 31, 2003, and the related statement ofoperations, partners’ equity (deficit) 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. The financial statements of EVANGELINEPARTNERSHIP, ALPIC as of December 31, 2002, were audited by other auditorswhose report dated March 18, 2003 expressed an unqualified opinion onthose statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica 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 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of EVANGELINE PARTNERSHIP, ALPIC as of December 31,2003, and the results of its operations, changes in partners’ equity (deficit)and cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information presented on pages 15 through 21 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued our report datedFebruary 29, 2004, on our consideration of EVANGELINE PARTNERSHIP, ALPIC’sinternal -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 *Government Auditing Standards*andshould be read in conjunction with the report in considering the results of ouraudit.

 

 

Bond & Tousignant

Monroe, Louisiana

February 29, 2004

 

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**IndependentAuditors’ Report**

 

 

To the Partners

Fairway II LimitedDividend Housing Association Limited Partnership

 

We have audited theaccompanying balance sheets of Fairway II Limited Dividend Housing AssociationLimited Partnership, Rural Development Project No. 26-074-383047638 as ofDecember 31, 2003 and 2002, and the related statements of income,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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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, thefinancial statements refer to above present all material respects, thefinancial position of Fairway II Limited Dividend Housing Association LimitedPartnership as of December 31, 2003 and 2002, 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.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 13, 2004, on our consideration of Fairway II Limited DividendHousing Association Limited Partnership as of December 31, 2003 and 2002,and the results of its operations and its cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 13, 2004,on our consideration 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.That report is 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 audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplementary information presented on pages 12 through 19 ispresented for purposes of complying with the requirements of Rural Developmentand is not a required part of the basic financial statements. Such informationhas been subjected to the audit procedures applied in the audit of the basicfinancia Statements and in out respects, in relation to the basic financialstatements taken as a whole.

 

 

Yeo & Yeo

Lansing, Michigan

February 13, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Jackson Place ApartmentsPartnership

A Louisiana Partnershipin Commendam

 

 

We have audited theaccompanying balance sheets of Jackson Place Apartments Partnership A LouisianaPartnership in Commendam, (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in partners’ equity andcash flows for the years then ended. 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 auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Jackson Place Apartments Partnership, ALouisiana Partnership In Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

February 25, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

MAPLEWOOD APARTMENTSPARTNERSHIP

A LOUISIANA PARTNERSHIPIN COMMENDAM

 

 

We have audited theaccompanying balance sheets of MAPLEWOOD APARTMENTS PARTNERSHIP, A LOUISIANAPARTNERSHIP IN COMMENDAM (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of MAPLEWOOD APARTMENTS PARTNERSHIP, ALOUISIANAPARTNERSHIP IN COMMENDAM****as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

February 26, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Neighborhood RestorationsLimited Partnership VII

 

We have audited theaccompanying balance sheets of Neighborhood Restorations Limited PartnershipVII (a Pennsylvania Limited Partnership) as of December 31, 2003 and 2002,and the related statement of operations, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe our audits provide a reasonable basis forour opimion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Neighborhood Restorations LimitedPartnership VII as of December 31, 2003 and 2002, and the results ofitsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

St. Clair CPA’s, P.C.

Bala Cynwyd, Pennsylvania

January 19, 2004

 

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**IndependentAuditor’s Report**

 

To the Partners

R.V.K.Y. LimitedPartnership

 

We have audited theaccomopanying balance sheets of R.V.K.Y. Limited Partnership (a Kentuckylimited partnership) as of December 31, 2003 and 2002, 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 auditsin accordance with U.S. generally accepted auditing standards and the standardsapplicable to financial 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of R.V.K.Y. Limited Partnership as of December 31, 2003 and 2002, and theresults of its operations and its cash flows for the years then ended inconformity with U.S. generally accepted accounting principles.

 

In accordance with *GovernmentAuditing Standards, we*have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is 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 audits.

 

Our audits were made forthe purpose 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.

 

 

Bernard Robinson &Company, LLP

Charlotte, North Carolina

January 31, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Senior Suites ChicagoAustin Limited Partnership

 

We have audited theaccompanying balance sheets of Senior Suites Chicago Austin Limited Partnershipas of December 31, 2003 and 2002, and the related statements ofoperations, changes in partners’ capital 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 auditsin accordance with auditing standards generally accepted in the United Statesof America.  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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Senior Suites Chicago Austin LimitedPartnership as of December 31, 2003 and 2002 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 audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The supplementary information identified in the table of contentsis presented for 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 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.

 

 

Kupferberg, Goldberg,Neimark, LLC

Chicago, Illinois

February 4, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Sumner Housing LimitedPartnership

 

 

We have audited the accompanyingbalance sheets of Sumner Housing Limited Partnership as of December 31,2003 and 2002, and the related statements of operations and changes inpartners’ capital, and 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 auditsin accordance with auditing standards generally accepted in the United Statesof America.  Those standards requirethat we plan and perform the audit tor- obtain reasonable assurance aboutwhether the financial statements am free of material**misstatement.  An audit includes examining, on a testbasis, evidence supporting the amounts, and disclosures, in the financialstatements.  An audit also includesamassing 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 opinoin, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Sumner House Limited Partnership as ofDecember 31, 2003 and 2002, 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 audits were rnade forthe purpose of forming an opinion on the basic financial statements taken as awbole. The supplemental information on Pages 8 and 9 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 material respects in relation to the basic financial statements taken asa whole.

 

 

Kostin, Ruffkess &Company, LLC

Farmington, Connecituct

February 24, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Terraceview LimitedPartnership

 

We have audited theaccomopanying balance sheet of Terraceview Limited Partnership as ofDecember 31, 2003 and 2002, 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 partnership’smanagement. Our responsibility is to express an opinion 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Terraceview Limited Partnership as ofDecember 31, 2003 and 2002 and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years then ended inconformity with generally accepted accounting principles.

 

Our audit was made forthe purpose 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.

 

Stangl & Jaskowiak,Ltd

March 15, 2004

Suak Rapids, MN

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Barrington Cove LimitedPartnership

 

We have audited theaccompanying balance sheet of Barrington Cove Limited Partnership, Project No.96001001 as of December 31, 2003 and the related statements of operations,changes in partners’ equity and cash flows for the year then ended. Thesefinancial statements are the responsibility of Barrington Cove LimitedPartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted In the United States ofAmerica 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 audit to obtain,reasonable assurance about whether the audit 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 our opinion, thefinancial statements referred to above present fairly in all material respects,the financial position of Barrington Cove Limited Partnership as ofDecember 31, 2003, 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 accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 22, 2004 on our tests of Barrington Cove Limited Partnership’scompliance with certain provisions of 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.

 

Our audit was conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The additional information in the schedules (shown on pages 16through 21) 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 financial statements taken as a whole.

 

 

Restivo Monacelli, LLP

Mansfield, Massachusetts

February 22, 2004

 

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**Independent Auditors’ Report**

 

 

To the Partners

Bryson Apartments, Ltd.

 

We have audited theaccompanying balance sheet of Bryson Apartments, Ltd. (a limited partnership),RD project No: 50-019-0752658906-01-8 as of December 31, 2003, 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 inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standard, issued by the Comptroller General ofthe United States. Those standards 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bryson Apartments, Ltd. RD Project No:50-019-0752658906-01-8 as of December 31, 2003, 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 was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Pages I-16 and I-17 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 withGovernment Auditing Standards, we have also issued a report datedFebruary 11, 2004 on our consideration of Bryson Apartments, Ltd.’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This 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.

 

 

Moore, Camp, Phillips& Co., LLP

Wichita Falls, Texas

February 11, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

The Partners

Collins Housing, L.P.

 

I have audited theaccompanying balance sheets of Collins Housing, RD Case No. 280160640864674, asof December 31, 2003 and 2002, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Collins Housing, L.P.’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment Auditing 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 audit provides a reasonable basis formy opinion.

 

In my opinion, thefinancial statements, referred to above, present fairly, in all materialrespects, the financial position of Collins Housing, L.P. at December 31,2003 and 2002, 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 accordance withGovernment Auditing Standards, and the audit program issued by the U.S.Department of Agriculture, Rural Development, I have also issued my reportdated February 15, 2004 on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

My audit was performedfor the purpose of forming an opinion on the financial statements taken as awhole. The accompanying supporting data included on pages 12 through 19 arepresented for purposes of additional analysis and are not a required part ofthe financial statements. Such information, except for the current budget andproposed budget columns on pages 15 through 18, on which I express no opinion,is fairly stated, in all material respects, in relation to the financialstatements taken as a whole.

 

 

J.E. Fortenberry, III, PC

Brandon, MS

February 15, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Edgewood ApartmentsPartnership

A Louisiana Partnershipin Commendam

 

We have audited theaccompanying balance sheets of Edgewood Apartments Partnership, A LouisianaPartnership in Commendam (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in 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 audit.

 

We conducted our auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Edgewood Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 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.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

March 9, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To the Partners

Emerald Trace LimitedPartnership

 

We have audited theaccompanying balance sheet of Emerald Trace Limited Partnership (thePartnership) as of December 31, 2003, and the related statements ofincome, 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 U.S. generally accepted auditing standards and *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 financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Emerald Trace Limited Partnership as ofDecember 31, 2003, and the results of its operations, changes in partners’equity, and cash flows for the year then ended in conformity with U.S.generally accepted accounting principles.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements for the,year ended December 31, 2003, taken as a whole. The accompanyingsupplemental information on pages 16 - 18 is presented for the purpose ofadditional analysis and is not a required part of the basic financial statements.Such information has been subjected to the auditing procedures applied in theaudit 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.

 

In accordance with *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 February 13, 2004, on our consideration of Emerald TraceLimited Partnership’s internal control, and reports dated February 13,2004, on its compliance with laws and regulations, compliance with specificrequirements applicable to Affirmative Fair Housing, and compliance withspecific requirements applicable to major HUD-assisted programs. Those reportsare 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.

 

Little & Associates

Monroe, Louisiana

February 13, 2004

 

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IndependentAuditors’ Report

 

 

To the Partners

Glenbrook Apartments,Ltd.

 

We have audited theaccompanying balance sheet of Glenbrook Apartments, Ltd. (a limitedpartnership), RD Project No: 50-069-0752627351-01-04 as of December 31,2003, and the related statement of operations, partners’ equity and cash flowsfor the year then ended.  Thesefinancial statements are the responsibility of the partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Glenbrook Apartments, Ltd.  RD Project No:  50-069-0752627351-01-4 as of December 31, 2003, 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 was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Pages I-16 and I-17 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 withGovernment Auditing Standards, we have also issued a report datedFebruary 12, 2004 on our consideration of Glenbrook Apartments, Ltd.’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with Government AuditingStandard and should be read in conjunction with this report in considering theresults of our audit.

 

 

Moore, Camp, Phillips& Co., LLP

Witchita Falls, Texas

February 12, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

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 ofDecember 31, 2003, and the related statements of income, partners’ equityand cash 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Harbor Pointe/MHT Limited Dividend HousingAssociation Limited Partnership as of December 31, 2003, and the resultsof its operations, changes in partners’ equity and cash flows for the year thenended, in conformity with accounting principles generally accepted in theUnited States of America.

 

Our audit was made forthe purpose 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 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.

 

 

Hungerford & Co.

Southgate, Michigan

January 29, 2004

 

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IndependentAuditors’ Report

 

To the Partners

Jacksboro Apartments,Ltd.

 

We have audited theaccompanying balance sheet of Jacksboro Apartments, Ltd. (a limitedpartnership), RD Project No: 50-019-0752657457-01-6 as of December 31,2003, 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standard, issued by the Comptroller General ofthe United States. Those standards 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Jacksboro Apartments, Ltd. RD Project No:50-019-0752657457-01-6 as of December 31, 2003, 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 was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Pages 1-15 and 1-16 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 withGovernment Auditing Standards, we have also issued a report datedFebruary 16, 2004 on our consideration of Jacksboro Apartments, Ltd.’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

 

Moore, Camp, Phillips& Co., LLP

Wichita Falls, Texas

February 16, 2004

 

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**IndependentAuditor’s Report**

 

 

The the Partners

Lincoln Hotel Partnership

 

We have audited theaccompanying balance sheets of Lincoln Hotel Partnership, A California LimitedPartnership 2002, and the related statements of operations and partners’capital and statements of 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all material respects,the financial position of Lincoln Hotel Partnership, A California LimitedPartnership as of December 31, 2003 and 2002, and the results of itsoperations and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

 

Considine & Considine

San Diego, CA

February 2, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

 

To the Partners

Lutkin Bayou Apartments,LP

 

We have audited theaccompanying balance sheets of Lutkin Bayou Apartments, LP (a Mississippilimited partnership), RHS Project No. 28-083-640863241 as of December 31,2003 and 2002, and the related statements of operations, partners’ capital(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 auditsin accordance with auditing standards generally accepted in the United Statesof America and 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lutkin Bayou Apartments, LP, as ofDecember 31, 2003 and 2002 and the results of its operations and itscashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made forthe purpose 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.

 

 

Matthews Cutrer &Lindsay, PA

Ridgeland, MS

February 4, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

To The Partners

Northway Drive, Ltd.

 

We have audited the accompanying,balance sheets of Northway Drive, Ltd. - (A Texas Limited Partnrship) as ofDecember 31, 2003 and 2002, and the related statements of income (loss),partners’ equity and cash flows for the years ended December 31, 2003 and2002.  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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the balance sheet is free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the balance sheet. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall balance sheet presentation. Webelieve that our audits provide a reasonable basis for our opinion.

 

In our opinion, thebalance sheet referred to above presents fairly, in all material respects, thefinancial position of Northway Drive, Ltd. - (A Texas Limited Partnership) asof December 31, 2003 and 2002, in conformity with accounting principlesgenerally accepted in the United States of America.

 

 

Lou Ann Montey andAssociates, P.C.

Austin, Texas

March 8, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

PALMETTO PLACE APARTMENTSPARTNERSHIP

A LOUISIANA PARTNERSHIPIN COMMENDAM

 

We have audited theaccompanying balance sheets of PALMETTO PLACE APARTMENTS PARTNERSHIP, ALOUISIANA PARTNERSHIP IN COMMENDAM (the Partnership) as of December 31,2003 and 2002, and the related statements of operations, changes in 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 auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of PALMETTO PLACE APARTMENTS PARTNERSHIP, ALOUISIANA PARTNERSHIP IN COMMENDAM as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with generally accepted accounting principles.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for 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 audit of the basic financial statements and,in our opinion, is fairly stated in all material respects in relation to thebasic financial state ents taken as a whole.

 

 

Pailet, Meunier andLeBlanc, LLP

Metairie, Louisiana

March 13, 2004

 

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IndependentAuditors’ Report

 

 

To the Partners

Rhome Apartments, Ltd.

 

We have audited theaccompanying balance sheet of Rhome Apatments, Ltd. (a limited partnership), RDProject No.:  51-049-0752627348-02-02 asof December 31, 2003, 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 toexpress an opinion on these financial statements based on our audits.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standard, issued by the Comptroller General ofthe United States. Those standards 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. thefinancial statements referred to above present****fairly in all materialrespects, the financial position of Rhome Apartments, Ltd. RD Project No:51-049-0752627348-02-02

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Pages 1-15 and 1-16 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 withGovernment Auditing Standards, we have also issued a report datedFebruary 14, 2004 on our consideration of Rhome Apartments, Ltd.’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

 

Moore, Camp, Phillips& Co., LLP

Wichita Falls, Texas

February 14, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Westfield ApartmentsPartnership

A Louisiana Partnershipin Commendam

 

We have audited theaccompanying balance sheets of Westfield Apartments Partnership, A LouisianaPartnership in Commendam (the Partnership) as of December 31, 2003 and2002, and the related statements of operations, changes in partners’ equity andcash flows for the years then ended. 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 auditsin accordance with generally accepted auditing standards generally accepted inthe United States of America. 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Westfield Apartments Partnership, ALouisiana Partnership in Commendam as of December 31, 2003 and 2002, andthe results of its operations, changes in partners’equity and cash flows forthe years then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented in the Schedule of Expensesis presented for purposes of additional analysis and is not a required part ofthe basic 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.

 

 

Pailet, Meunier andLeBlance, LLP

Metairie, Louisiana

February 21, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

Bellwood Four LimitedPartnership

 

We have audited theaccompanying balance sheets of Bellwood Four Limited Partnership, (thePartnership), as of December 31, 2003 and 2002 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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bellwood Four Limited Partnership as ofDecember 31, 2003 and 2002, 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 accordance with *GovernmentAuditing Standards,*we have also issued our report datedFebruary 7, 2004 on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is 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.

 

 

Little, ShaneyfeltMarshall Romine & Co.

Little Rock, Arkansas

February 7, 2004

 

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IndependentAuditors’ Report

 

 

To the Partners

Bowie Apartments, Ltd.

 

We have audited theaccompanhing balance sheets of Bowie Apartments, Ltd. (a limited partnership),RD Project No. 50-069-0752627345-01-07, as of December 31, 2003 and 2002,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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards, issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fair, in all material respects,the financial position of Bowie Apartments, Ltd. RD Project No.50-069-0752627345-01-7, as of December 31,**2003 and 2002 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 audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Pages 1-17 and 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 accordance withGovernment Auditing Standards, we have also issued a report datedJanuary 24, 2004 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 considering theresults of our audit.

 

 

Moore, Camp, Phillips& Co., LLP

Wichita Falls, Texas

January 24, 2004

 

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**IndependentAuditors’ Report**

 

 

To the Partners of

Byam Limited Partnership

 

We have audited theaccompanying balance sheets of Byam Limited Partnership (the Partnership) as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in 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 auditsin accordance with auditing standards generally accepted in the United Statesof 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 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of the Partnership as of December 31,2003 and 2002, and the results of its operations, changes in partners’ equity,and cash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 18, 2004, on our consideration of the Partnership’s internalcontrol and on our tests of its compliance with certain provisions of laws,regulations, contracts and grants, and reports dated February 18, 2004, onits compliance with specific requirements applicable to major 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 audits.

 

Our audits were conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplementary data is presented for purposes ofadditional 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.

 

 

Kevin P. Martin &Associates, P.C.

Braintree, Massachusetts

February 18, 2004

 

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**IndependentAuditor’s Report**

 

To the Partners

C.V.V.A. LimitedPartnership

 

We have audited theaccompanying balance sheets of C.V.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 2003 and 2002, 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 toexpress an opinion on these financial statements based on our audits.

 

We conducted our auditsin accordance with U.S. generally- accepted auditing standards and thestandards applicable 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of C.V.V.A. Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with U.S. generally accepted inthe United States of America.

 

In accordance with *GovernmentAuditing*Standards we have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is 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 audits.

 

Our audits were made forthe purpose 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 basic financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

 

Bernard Robinson &Company, LLP

Charlotte, North Carolina

January 31, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

 

To the Partners

Emerald Trace II LimitedPartnership

 

We have audited theaccompanying balance sheets of Emerald Trace II Limited Partnership (thePartnership) as of December 31, 2003 and 2002, and the related statementsof operations, partners’ equity (deficit) 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 financialstatements based on our audits.

 

We conducted our auditsin accordance with U.S. generally accepted auditing standards. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Emerald Trace II Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years then ended inconformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information presented on pages 16 through 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 basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Little & Associates

Monroe, Louisiana

February 3, 2004

 

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IndependentAuditors’ Report

 

 

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, 2003 and 2002, andthe related statements of operations, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government AuditingStandards, issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Graham Apartments, Ltd., RD51-52-752663159-01-1, as of December 31, 2003 and 2002, and the results ofits operations, changes in partners’ equity and cash flows for the years thenended in conformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose 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 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 withGovernment Auditing Standards, we have also issued a report datedFebruary 10, 2004 on our consideration of Graham Apartments, Ltd’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

 

Moore, Camp, Phillips& Co., LLP

Wichita Falls, Texas

February 10 , 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Hillside TerraceAssociates, L.P.

 

We have audited theaccompanying balance sheet of Hillside Terrace Associates, L.P. (a limitedpartnership as of December 31, 2003 and 2002 and the related statements ofoperations and partners capital (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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position, of Hillside Terrace Associates, L.P., as ofDecember 31, 2003 and 2002, 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.

 

 

Salmin, Celona, Wehrle& Flaherty, LLP

Rochester, NY

February 2, 2004

 

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**IndependentAuditor’s Report**

 

To the Partners

K.G.V.A. LimitedPartnership

Charlotte, North Carolina

 

We have audited theaccompanying balance sheets of K.G.V.A. Limited Partnership (a Virginia limitedpartnership) as of December 31, 2003 and 2002, and the related statementsof operations, partners’ equity, and cash flows for the years then ended.  These financial statements arereaponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

We conducted our auditsin accordance*with*U.S. generally acceopted standards and the standardsapplicable to financial audits conytained in *Government Auditing Standards*issued by the Comptroller General of the United States.  The standard requires that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of mayterial mistatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made in management, as well as, evaluating the overallfinancial statement presentation.  Webelieve that our audits provide a reasonable basis for our opinion

January 31, 2004

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of K.G.V.A. Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations and its cashflows for the years then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with *GovernmentAuditing Standards*, we have also issued our report datedJanuary 31, 2004, on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions 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 conjuction with this report in considering the results of ouraudits.

 

Our audits were made forthe pourpose 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.

 

 

BERNARD ROBINSON &COMPANY, LLP

Charlotte, NC

January 31, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Members

Linden Partners 11, LLC

 

We have audited theaccompanying balance sheets of Linden Partners 11, LLC (a Nebraska LimitedLiability Company) as of December 31, 2003 and 2002, and the relatedstatements of operations, members’ 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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Linden Partners 11, LLC as ofDecember 31, 2003 and 2002, and the results of its operations, and changesin members’ equity (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose 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.

 

Montheith Lacy Sharkey

Omaha, Nebraska

January 30, 2004

 

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IndependentAuditors’ Report

 

To the Partners

Nocona Apartments, Ltd.

 

We have audited 4eaccompanying balance sheets of Nocona Apartments, Ltd., (a limitedpartnership), RD Project No: 50-069-0752685663-02-2 as of December 31,2003 and 2002, and the related statements of operations, partners’ equity andcash flows for the years then ended. These financial statements are the responsility of the partnership’smanagement.  Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standard , 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 a reasonablebasis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Nocona Apartments, Ltd. RD Project.No.:50-069-0752685663-02-2 as of December 31 2003 and 2002, and the results ofits operations, changes in partners’ equity and cash flows for the years thenended in conformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose of fort-ning an opinion on the basic financial statements taken asa whole. The supplemental information on Pages 1-17 and 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 accordance with GovernmentAuditing Standards, we have also issued a report dated February 7,2004 on our consideration of Nocona Apartments, Ltd.’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. This report is an integral part of anaudit performed in accordance with Government Auditing Standards andshould be read in conjunction with this report in considering the results ofour audit.

 

Moore, Camp, Phillips& Co., L.L.P.

Wichita Falls, Texas

February 7, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

 

To the Partners

Pyramid One LimitedPartnership

 

We have audited theaccompanying balance sheets of Pyramid One Limited Partnership, (thePartnership), as of December 31, 2003 and 2002 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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Pyramid One Limited Partnership as ofDecember 31, 2003 and 2002, and its results of operations, changes inpartners’ equity (deficit), and cash flows 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 our report datedFebruary 7, 2004 on our consideration of the Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is 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.

 

Little ShaneyfeltMarshall Romine & Co.

Little Rock, AR

FEBRUARY 7, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Trinity Life Gardens, LP

Pueblo, Colorado

 

We have audited the theaccompanying balance sheet of Trinity Life Gardens, LP as of December 31,2003, and related statements of operations, comprehensive loss, changes inpartners’ capital 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 auditsin accordance with U.S. generally accepted auditing standards. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Trinity Life Gardens, LP as ofDecember 31, 2003, and the results of its operations, and changes inmembers’ equity (deficit) and cash flows for the years then ended in conformitywith U.S. generally accepted accounting principles.

 

 

Lehman Buttterwick &Company

Denver, Colorado

March 15, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

The Partners

Canton Housing One, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Canton Housing One, L.P., a Mississippi limitedpartnership, Rural Development Agency U.S. Department of Agriculture (“RD”)Project No. 28045-0640886062 01-8, as of December 31, 2003 and 2002, andthe related statements of income (loss), partners’ capital, and cash flows forthe 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and *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 missutement. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial postion of Canton Housing 0ne, L.P., RD Project No.28-045-0640886062 01-8, as of December 31, 2003 and 2002, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance with *GovernnentAuditing Standards,*we have also issued a report datedFebruary 6, 2004, on our consideration of the Partnership’s internalcontrol and a report dated February 6, 2004, on its compliance withspecific requirements applicable to major RD programs. 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 14 through 21is 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 IVincluded on pages 14 through 18 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.

 

EUBANK & BETTS,PLLC

Jackson, Mississippi

February 6, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

The Partners

Canton Housing Two, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheet of Canton Housing Two, L.P., a Mississippi limitedpartnership, Rural Development Agency, U. S. Department of Agriculture (“RD”)Project No. 28-045-064088606101-5, as of December 31, 2003 and 2002 , andthe related statements of income (loss), partners’ capital, 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 thesefomamcoa; statements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America and *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 financialstatements referred to above present fairly, in all material respects, thefinancial position of Canton Housing Two, L.P., RD Project No.28-045-0640886061 01-5, as of December 31, 2003 and 2002, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance with *GovernmentAuditing*Standards, we have also issued a report datedFebruary 6, 2004, on our consideration of the Partnership’s internalcontrol and a report dated February 6, 2004, on its compliance withspecific requirements applicable to major Rural Development programs. 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 audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 13 through 20is 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 H and the information in Part IVincluded on pages 13 through 18, 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.

 

 

EUBANK & BETTS, PLLC

Jackson, Mississippi

February 6, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

The Partners

Canton Housing 11ree,L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheet of Canton Housing Three, L.P., a Mississippi limitedpartnership, Rural Development Agency, U. S. Department of Agriculture (“RD”)Project No. 28-045-0640886063 04-2, as of Decembr 31, 2003 and 2002 , 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 thesefomamcoa; statements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America and *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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Canton Housing Three, L.P., RD Project No.28-045-0640886063 04-2, as of December 31, 2003 and 2002, and the resultsof its operations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 6, 2004, on our consideration of the Partnership’s internalcontrol and a report dated February 6, 2004, on its compliance withspecific requirements applicable to major RD programs. 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole.  The accompanying financialinformation included on pages 13 through 20 is presented for purposes of additionalanalysis and is not a required part of the 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 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.

 

 

EUBANK& BETTS, PLLC

Jackson, Mississippi

February 6,2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

 

The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

 

We have audited theaccompanying I balance sheets pf Canton Housing Four, L.P., a Mississippilimited partnership, Rural Development Agency, U. S. Department of Agriculture(“RD”) Project No. 28-045-0640886064 02-0, as of December 31, 2003 and2002, and the related statements of income (loss), partners’ capital, and cashflow 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and *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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Canton Housing Three, L.P., RD Project No.28-045-0640886064 02-0, as of December 31, 2003 and 2002, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance with *GovernmentAuditing Standards,*we have also issued a report datedFebruary 6, 2004, on our consideration of the Partnership’s internalcontrol and a report dated February 6, 2004, on its compliance withspecific requirements applicable to major RD programs. 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. Ile accompanying financial information included on pages 13 through 20is 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 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.

 

 

EUBANK & BETTS, PLLC

Jackson, Mississippi

February 6, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Eagles Ridge Terrace, LP

 

I have audited /theaccompanying balance sheets of Eagles Ridge Terrace, L.P., as ofDecember 31 2003 and 2002, and the related statements of operations,partners’ capital and cash flows for the years then ended.  These financial statements are theresponsibility of the partnership’s management.  My responsibility is to express an opinion on these financial statementsbased on my audits.

 

I conducted my audits inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that I 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. I believe that my audits provide a reasonable basis formy opinion,

 

In my opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Eagles Ridge Terrace, L.P., as ofDecember 31, 2003 and 2002 and the results of its operations, changes inpartners’ capital and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

My audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages l- 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 take whole.

 

 

Gwen Ward, P.C.

Fort Worth, Texas

March 4, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Ellisville Housing, L.P.

West Point, Mississippi

 

We have audited theaccompanying balance sheets of Ellisville Housing, L.P. (a Mississippi limitedpartnership), RHS Project No. 28-034-0640864667 as of December 31, 2003and 2002, 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 to expressan opinion on these financial statements based on our audits.

 

We conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America 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, thefinancial statements referred to above, present fairly, in all materialrespects, the financial position of Ellisville Housing, L.P. as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose 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 RD1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7).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.

 

MATTHEWS CUTRER &LINDSAY, PA

Ridgeland, MS

February 6, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Hattiesburg Housing, LP

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Hattiesburg Housing, L.P. (a Mississippi limitedpartnership), RHS Project No. 28-018-640864668 as of December 31, 2003 and2002, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America 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, thefinancial statements referred to above, present fairly, in all materialrespects, the financial position of Hattiesburg Housing, L.P. as ofDecember 31, 2003 and 2002, 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 audits were made forthe purpose 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 RD1930-8) and the Multiple Family Housing Project Budget (RHS Form RD 1930-7).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.

 

MATTHEWS CUTRER &LINDSAY, PA

Ridgeland, MS

February 6, 2004

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners of

Henderson Terrace, L. P.

Bridgeport, Texas

 

We have audited theaccompanying balance sheets of Henderson Terrace L. P as of December 31,2003 and 2002 and the related statements of operations, partners’ capital andcash 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 inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that I 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. I believe that my audits provide a reasonable basis formy opinion.

 

In my opinion, thefinancial statements referred to above, present fairly, in all materialrespects, the financial position of Henderson Terrace, L.P. as ofDecember 31, 2003 and 2002, and the results of its operations, partners’capital and cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

My audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages I-16 and I-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 en as a whole.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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INDEPENDENTAUDITORS’ REPORT

 

To the partners

Hurricane Hills II LC

 

I have audited theaccompanying balance sheets of Hurricane Hills II, LC as of December 31,2003, and the related partners’ equity for the year 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.

 

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 includesexamination, on a test basis, evidence supporting the amounts and disclosuresin the 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 provided a reasonable basis for our opinion.

 

In my opinion, thefinancial statements referred to above, present fairly, in all materialrespects, the financial position of Hurricane Hills II LC as ofDecember 31, 2003, and the results of its operations, Partners’ equity andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

MORRIS ACCOUNTING CO.,INC.

Cedar City, VT

 

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Independent Auditors Report

 

To the Partners of

Lakeview Little Elm, L. P.

Little Elm, Texas

 

I have audited the accompanying balance sheets of Lakeview Little Elm,L.P. as of December 31, 2003 and 2002, 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.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

I conducted my audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I 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. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above, presentfairly, in all material respects, the financial position of Lakeview LittleElm, LP as of December 31, 2003 and 2002 and the results of itsoperations, changes in partners’ capital and cash flows for the years thenended in conformity with accounting principles accepted in the United States ofAmerica.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pagesl-16 and 1-17 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 my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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Independent Auditors Report

 

To the Partners of

Mesquite Trails, L. P.

Jacksboro, Texas

 

I have audited the accompanying balance sheets of Mesquite Trails, LPas of December 31, 2003 and 2002, and the related statements of operations,partners’ capital 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 audit.

 

I conducted my audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I 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. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Mesquite Trails, L.P. as of December 31, 2003 and 2002 and the results of its operations,changes in partners’ capital and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pagesI-16 and I-17 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 my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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**IndependentAuditor’s Report**

 

To the Partners

N. M. V. A. Limited Partnership

Charlotte, North Carolina

 

We have audited accompanying balance sheet of N.M.V.A. LimitedPartnership (a Virginia limited partnership) as of December 31, 2003 and2002, 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 with U.S. generally 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 statements referred to above presentfairly, in all material respects, the financial position of N. M. V. A. LimitedPartnership as of December 31 2003 and 2002, and the results of itsoperations and its cash flows for the years then ended in conformity with U.S.generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated January 31, 2004, 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 audits.

 

Our audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information listed inthe table of contents is presented for purposes of additional analysis and isnot a required 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.

 

BERNARD ROBINSON & COMPANY, LLP

Charlotte, NC

January 31, 2004

 

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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 balance sheets of Pilot PointApartments, LP as of December 31, 2003 and 2002, and the relatedstatements of operations, partners’ capital and cash flows for the years 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 audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I 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. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Pilot PointApartments, L. P. as of December 31, 2003 and 2002 and the results of itsoperations, changes in partners’ capital and cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pagesI-16 and I-17 is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has been subjectedto the auditing procedures applied in the audit of the basic financialstatements and, in my opinion, is fairly stated in all material respects inrelation to the basic financial statements taken as a whole.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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Independent Auditors Report

 

To the Partners of

Seagoville Fountainhead, L.P.

Seagoville, Texas

 

I have audited the accompanying balance sheets of SeagovilleFountainhead, LP as of December 31, 2003 and 2002, and the relatedstatements of operations, partners’ capital and cash flows for the years 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 audits in accordance with auditing standards generallyaccepted 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 presentfairly, in all material respects, the financial position of Fountainhead, L. P.as of December 31, 2003 and 2002 and the results of its operations,changes in partners’ capital and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pages1-16 and 1-17 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 my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

Partners

Sencit Hampden Associates, L.P.

 

We have audited the accompanying balance sheets of **SENCIT HAMPDEN ASSOCIATES, L.P., ROTHVILLAGE TOWNHOMES**as of December 31, 2003 and 2002, and therelated statements of profit and loss, 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 with auditing standards generallyaccepted in the United States of America. 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 presentfairly, in all material respects, the financial position of Sencit HampdenAssociates, L.P. as of December 31, 2003 and 2002, and the results of itsoperations, changes in partners’ equity and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

FISHBEIN & COMPANY, PC

Elkins Park, PA

January 23, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

200 East Avenue Associates, L.P.

 

We have audited the accompanying balance sheet of 200 East Avenue Associates,L.P. (a limited partnership) as of December 31, 2003, and 2002 and therelated statements of partners’ capital (deficit) and cash flows for the yearsthen 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 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 financial statements referred to above presentfairly, in all material respects, the financial position of 200 East AvenueAssociates, LP as of December 31, 2003 and 2002, and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States.

 

Salmin, Celona, Wehrle & Flaherty, LLP

Rochester, NY

February 2, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Cogic Village Limited Dividend Housing

Association Limited Partnership

(A Michigan Limited Partnership)

Benton Harbor, Michigan

 

We have audited the accompanying balance sheets of Cogic VillageLimited Dividend Housing Association Limited Partnership (a Michigan LimitedPartnership) as of December 31, 2003 and 2002 and the related statementsof operations, partners’ capital (deficit) and cash flows for the years thenended.  Those 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 with auditing standards generallyaccepted in the United States of America. Those standards require that we planand 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 audits provide areasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentsfairly, in all material respects, the financial position of Cogic VillageLimited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002 and the results of its operations, changes inpartners’ capital (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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Independent Auditor’ Report

 

To the Partners of

Granada Rose, L.P.

Edna, Texas

 

I have audited the accompanying balance sheets of Granada Rose, L.P. asof December 3l, 2003 and 2002, and the accompanying statements ofoperations, partners’ capital and cash flows for the years then ended. Thesestatements are the responsibility of the partnership’s management. Myresponsibility is to express an opinion on the financial statements based on myaudits.

 

I conducted my audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I 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 I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Granada Rose, L.P.as of December 31. 2003 and 2002 and the results of its operations,changes in partners’ capital and cash flows for the years then ended inconformity with accounting principles generally accepted in the United statesof America.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pages 1-16and 1-17 is presented for purposes of additional analysis and is not a requiredpart of basic financial statements. Such information has been subjected to theauditing procedures applied in the audits 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.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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Independent Auditor’s Report

 

To the Partners

Indiana Development

Limited Partnership

 

We have audited the accompanying balance sheet of Indiana DevelopmentLimited Partnership as of -December 31, 2003 and the related statements ofoperations, changes in 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. The financial statements of Indiana DevelopmentLimited Partnership as of December 31, 2002 were audited by other auditors,whose report dated January 23, 2003 expressed an unqualified opinion onthese statements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. 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 2003 financial statements referred to above presentfairly, in all material respects, the financial position of Indiana DevelopmentLimited Partnership at December 31, 2003 and the results of itsoperations, changes in partners’ equity, and its cash flows for the year thenended, in conformity with accounting principles generally accepted in theUnited States of America.

 

PLANTE & MORAN, PLLC

East Lansing, Michigan

January 31, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners of

Martinsville-I, Ltd.

 

We have audited the accompanying balance sheets of Martinsville-I, Ltd.(a Kentucky limited partnership) as of December 31, 2003 and 2002 and therelated statements of operations, changes in partners’ capital and cash flowsfor the years then ended. The 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 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 amount and disclosures inthe financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by the Partnership’s generalpartner and contracted management agent, 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 referred to above presentfairly, in all material respects, the financial position of Martinsville-I,Ltd. at December 31, 2003 and 2002, and its operations, changes inpartners’ capital and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

PLAUT & ASSOCIATES, P.S.C.

January 23, 2004

 

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Independent Auditors’ Report

 

To the Partners

Parkside Plaza Associates, L.P.

New York, New York

 

We have audited accompanying balance sheet of Parkside PlazaAssociates, L.P. ( a New York State limited partnership) as of December 31,2003, and the related statements of operations, partners’ equity and cashflows for the year then ended. The financial statements are the responsibilityof the Partnership’s management.  Ourresponsibility is to express an opinion on these financial statements based onour audit.  The financial statements ofParkside Plaza Associates, L.P. as of December 31, 2002, were audited byother auditors whose report dated February 8, 2003 expressed anunqualified opinion on those statements.

 

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 amount and disclosures inthe financial statements.  An audit alsoincludes assessing the accounting principles used and significant estimatesmade by the Partnership’s general partner and contracted management agent, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The accompanying information inSchedule I is presented for the purposes of additional analysis and is nota required part of the basic financial statements. Such information has beensubjected to the 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.

 

Vargas & Ghigliotty, LLP

New City, New York

March 3, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

PEARLWOOD APARTMENTS PARTNERSHIP

A MISSISSIPPI LIMITED PARTNERSHIP

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of PEARLWOOD APARTMENTSPARTNERSHIP, A MISSISSIPPI LIMITED PARTNERSHIP (the Partnership) as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in 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 audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 PEARLWOODAPARTMENTS PARTNERSHIP, A MISSISSIPPI LIMITED PARTNERSHIP as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 18, 2004

 

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INDEPENDENT AUDITORS REPORT

 

To the Partners

PECAN MANOR APARTMENTS PARTNERSHIP

A LOUISIANA PARTNERSHIP IN COMMENDAM

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of PECAN MANORAPARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM, (the Partnership)as of December 31, 2003 and 2002, and the related statements ofoperations, changes in 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 conducted our audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 PECAN MANORAPARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 4, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Pineridge Apartments Partnership

A Louisiana Partnership in Commendam

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of Pineridge ApartmentsPartnership, A Louisiana Partnership in Commendam (the Partnership) as ofDecember 31, 2003 and 2002, 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 audit.

 

We conducted our audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 PineridgeApartments Partnership, A Louisiana Partnership in Commendam as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 23, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Pyramid Four Limited Partnership

 

We have audited the accompanying balance sheets of Pyramid Four LimitedPartnership, (the Partnership), as of December 31, 2003 and 2002 and therelated statements of profit (loss), changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are the responsibilityof the Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits 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 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 referred to above presentfairly, in all material respects, the financial position of Pyramid FourLimited Partnership as of December 31, 2003 and 2002, and its results ofoperations, changes in partners’ equity (deficit), and cash flows for the yearsthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

In accordance with Government *Auditing Standards we*have also issued ourreport dated February 7, 2004 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. That report isan integral part of an audit performed in accordance with Government *AuditingStandards and*should be read in conjunction with this report inconsidering the results of our audit.

 

LITTLE, SHANEYFELT, MARSHALL, ROMINE & CO.

Little Rock, AR

FEBRUARY 7, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Bradford Group Partners of Jefferson County, L.P.

Jefferson City, Tennessee

 

We have audited the accompanying balance sheet of Bradford GroupPartners of Jefferson County, L.P. (a limited partnership as ofDecember 31, 2003 and the related            statements of income (loss), partners’equity 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 in accordance with auditing standards generallyaccepted in the United States of America. 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 our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Bradford GroupPartners of Jefferson County, LP as of December 31, 2003, and the resultsof its operations, changes in partners’ equity and cash flows for the year thenended, 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 supplemental 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 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.

 

McFarland and Gann, P.C.

Jefferson City, TN

May 14, 2004

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners

Forest Park Apartments Partnership

A Louisiana Partnership in Commendam

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of Forest ParkApartments Partnership, A Louisiana Partnership in Commendam (the Partnership)as of December 31, 2003 and 2002, and the related statements ofoperations, changes in 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 conducted our audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 Forest ParkApartments Partnership, A Louisiana Partnership in Commendam as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 4, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Harbor Pointe/MHT Limited Dividend Housing

Association Limited Partnership

Southfield, Michigan 48076

 

We have audited the accompanying balance sheet of **Harbor Pointe/MHT Limited DividendHousing Association Limited Partnership**(a Michigan LimitedPartnership) as of December 31, 2003 and the related statements of income,partners’ equity and cash flows for the year then ended.  These financial statements are theresponsibility of the Company’s management. Our responsibility is to express an opinion on these financial statementsbased on our audit.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. 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 statements referred to above presentfairly, in all material respects, the financial position of Harbor Pointe/MHTLimited Dividend Housing Association Limited Partnership as ofDecember 31, 2003, 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pages 12and 13 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 our opinion, is fairly stated, in all material respects, in relation tothe basic financial statements taken as a whole.

 

HUNGERFORD & CO.

Southgate, Michigan

January 29, 2004

 

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**IndependentAuditors’ Report**

 

Partners of

NHC Partnership 5, L.P.

 

We have audited the accompanying balance sheets of NHC Partnership 5,L.P. as of December 2003 and 2002, 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.  Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audit in accordance U.S. generally accepted auditingstandards.  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 statements referred to above presentfairly, in all material respects, the financial position of NHC Partnership 5L.P. as of December 31, 2003 and 2002, and the results of its operationsand Its cash flows for the years then ended In conformity with U.S. generallyaccepted accounting principles,

 

ALTSCHULER, MELVOIN AND GLASSER LLP

Chicago, Illinois

January 24, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Belmont Affordable Housing 11, L.P.

Springfield, Pennsylvania

 

We have audited the accompanying balance sheets of Belmont AffordableHousing 11, L.P. (a Pennsylvania Limited Partnership) as of December 31,2003 and 2002, and the related statements of operations, changes in 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 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 our auditsprovide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Belmont AffordableHousing 11, L.P. as of December 31, 2003 and 2002, 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.

 

ST. CLAIRE CPAs

Bala Cynwyd, Pennsylvania

January 31, 2004

 

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**IndependentAccountants’ Report**

 

To The Partners

Howard Park, Ltd.

 

We have audited the accompanying balance sheets of Howard Park Ltd. asof December 31, 2003 and 2002 and the related statements of income,partners’ equity and cash flow for the years then ended. These financialstatements are the responsibility of the Howard Park, Ltd. management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. 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 presentfairly, in all material respects, the financial position of Howard Park, Ltd.as of December 31, 2003 and 2002, 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.

 

Our audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The schedule of administrative,utilities, maintenance, taxes, insurance and interest expense on page 10 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.

 

SHARPTON, BRUNSON & COMPANY, PA.

Ft. Lauderdale, FL

February 23, 2004

 

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**IndependentAccountants’ Report**

 

June 8, 2004

 

Partners

RHP 96-1 Limited Partnership

Novi, Michigan

 

We have audited the accompanying balance sheets of RHP 96-1 LimitedPartnership as of December 31, 2003 and 2002 and the related statements ofoperations, partners’ capital and cash flow for the years then ended. Thesefinancial statements are the responsibility of the RHP 96-1 LimitedPartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. 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 presentfairly, in all material respects, the financial position of RHP 96-1 LimitedPartnership as of December 31, 2003 and 2002, 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 audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The schedule ofadministrative, utilities, maintenance, taxes, insurance and interest expenseon pages 13, 14 and 15 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.

 

VANDER PLOEG BERGAKKER

June 8, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

March 27, 2004

 

To the Partners

New Caney Housing II, Ltd.

 

I have audited the accompanying balance sheet of New Caney Housing II,Ltd. as of December 31, 2003 and 2002, and the related statements ofoperations, partners’ equity (deficit), and cash flow for the years endedDecember 31, 2003 and 2002. 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 in accordance with accounting principlesgenerally accepted in the United States of America. Those standards requirethat I plan and perform the audits 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 audits provide a reasonablebasis for my opinion.

 

In my opinion, the accompanying financial statements referred to abovepresent fairly, in all material respects. The financial position of New Caney Housing II Ltd. as ofDecember 31, 2003 and 2002, and the results of its operation and its cashflows for the year ending December 31, 2003 and 2002, in conformity withaccounting principles generally acted in the United States of America.

 

LEE E. SHAFER, P.C.

Houston, Texas

March 27, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Hillside Terrace Associates, L.P.

 

We have audited the accompanying balance sheet of Hillside TerraceAssociates, L.P. (a limited partnership) as of December 31, 2003 and 2002and the related statements of operations and 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 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 financial statements referred to above presentfairly, in all material respects, the financial position of Hillside TerraceAssociates, L.P. as of December 31, 2003 and 2002, 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

Rochester, NY

February 2, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Riverwalk Apartment Homes, Phase II LLC

Madison, Wisconsin

 

We have audited the accompanying balance sheets of Riverwalk ApartmentHomes, Phase II LLC as of December 31, 2003 and 2002 and the relatedstatements of operations, members’ equity and cash flows for the years thenended. These financial statements are the responsibility of the company’smanagement. Our responsibility is to express an opinion on these financialstatements 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 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 Riverwalk ApartmentHomes, Phase II, LLC as of December 31, 2003 and 2002 and the results ofits operations and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

VIRCHOW KRAUSE & COMPANY

Madison, Wisconsin

January 21, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners of

Annandale Housing Partners

(A California Limited Partnership)

Fresno, California

 

We have audited the accompanying balance sheets of Annandale HousingPartners Limited Partnership (the “Partnership”) as of December 31, 2003and 2002 and the related statements of operations, partners’ equity (deficit)and cash flows for the years 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 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 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 the Partnership asof December 31, 2003 and 2002 and the results of its operations, changesin partners’ equity (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information on pages13 and 14 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.

 

JANZEN, TAMBOU & WONG

Fresno, CA

January 21, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Ashton Ridge Limited Dividend Housing

Association Limited Partnership

(A Michigan Limited Partnership)

Jackson, Michigan

 

We have audited the accompanying balance sheets of Ashton Ridge LimitedDividend Housing Association Limited Partnership as of December 31, 2003and 2002 and the related statements of operations, partners’ capital (deficit)and cash flows for the years 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 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 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 Ashton RidgeLimited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002 and the results of its operations, changes inpartners’ capital (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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INDEPENDENT AUDITORS REPORT

 

Partners

Senior Suites Chicago Washington Heights Limited Partnership

Chicago, IL

 

We have audited the accompanying balance sheets of Senior SuitesChicago Washington Heights Limited Partnership as of December 31, 2003 and2002 and the related statements of operations, partners’ capital and cash flowsfor the years 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 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 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 Senior SuitesChicago Washington Heights Limited Partnership as of December 31, 2003 and2002 and the results of its operations and cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationidentified in the table of contents 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.

 

KUPFERBERG, GOLDBERG & NEWARK, LLC

Chicago, IL

February 4, 2004

 

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**IndependentAccountants’ Report**

 

The Partners

Valleyview Estates, L.P.

Springfield, Missouri

 

We have audited the accompanying balance sheets of Valleyview Estates,L.P. as of December 31, 2003 and 2002, and the related statements ofoperations, partner’s 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 in accordance with auditing-standardsgenerally-accepted in the United States of America. 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 financial statements referred to above presentfairly, in all material respects, the financial position of Valleyview Estates,LP as of December 31, 2003 and 2002, 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.

 

Our audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying supplementaryinformation is presented for purposes of additional analysis and is not arequired part of the 2003 basic financial statements. Such information has beensubjected to the procedures applied in the audit of the 2003 basic financialstatements and, in our opinion, is fairly stated, in all material respects, inrelation to the 2003 basic financial statements taken as a whole.

 

BKD LLP

Springfield, MO

January 19, 2004

 

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INDEPENDENT AUDITORS REPORT

 

To the Partners

Willowbrook Apartments Partnership

A Louisiana Partnership in Commendam

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of WillowbrookApartments Partnership, A Louisiana Partnership in Commendam (the Partnership)as of December 31, 2003 and 2002, and the related statements ofoperations, changes in 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 conducted our audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 WillowbrookApartments Partnership, A Louisiana Partnership in Commendam as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 10, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

WINGFIELD APARTMENTS PARTNERSHIP

A LOUISIANA PARTNERSHIP IN COMMENDAM

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of WINGFIELD APARTMENTSPARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM (the Partnership) as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in 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 audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 WINGFIELDAPARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

February 9, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners of

FAH Silver Pond Limited Partnership

Pilot House, Lewis Wharf

Boston, Massachusetts 02110

 

We have audited accompanying balance sheets of FAH Silver Pond LimitedPartnership (the Partnership) as of December 31, 2003 and 2002, and therelated statements of operations, changes in 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 with auditing standards generallyaccepted in the Unites States of America 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 our auditsprovide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of the Partnership asof December 31, 2003 and 2002, and the results of its operations, changesin partners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated March 1, 2004, on our consideration of thePartnership’s internal control and on our tests of its compliance with certainprovisions of laws, regulations, contracts and grants, and reports datedFebruary 18, 2004, on its compliance with specific requirements applicableto major and non major programs and specific requirements applicable to FairHousing and Non-Discrimination. Those reports are 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 ouraudits.

 

Our audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The accompanying supplemental datais presented for purposes of additional analysis and is not a required part ofthe basic 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.

 

KEVIN P. MARTIN & ASSOCIATES, PC

Braintree, Massachusetts

February 18, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Arbors at Eagle Crest Limited Dividend

Housing Association Limited Partnership

(A Michigan Limited Partnership)

Union, Michigan

 

We have audited accompanying balance sheets of Arbors at Eagle CrestLimited Dividend Housing Association Limited Partnership (A Michigan LimitedPartnership) as of December 31, 2003 and 2002, and the related statementsof operations, changes in 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 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 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 statements referred to above presentfairly, in all material respects, the financial position of Arbors at EagleCrest Limited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ capital (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

To the Partners of

Edna Vanderbilt, L.P.

Edna, Texas

 

I have audited accompanying balance sheets of Edna Vanderbilt, LP as ofDecember 31, 2003 and 2002, and the accompanying statements operations,partners’ capital, 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 onour audits.

 

I conducted my audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I 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. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Edna Vanderbilt, LPas of December 31, 2003 and 2002, and the results of its operations,changes in partners’ capital, and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pagesI-16 and I-17 is presented for purposes of additional analysis and is not arequired part of basic financial statements. Such information has beensubjected 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.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

HAMMOND PLACE APARTMENTS PARTNERSHIP

A LOUISIANA PARTNERSHIP IN COMMENDAM

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of HAMMOND PLACEAPARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM (the Partnership)as of December 31, 2003 and 2002, and the related statements ofoperations, changes in 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 conducted our audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 **HAMMOND**PLACE**APARTMENTSPARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM**as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 5, 2004

 

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INDEPENDENT AUDITORS REPORT

 

To the Partners

WILLOWBROOK II APARTMENTS PARTNERSHIP

A LOUISIANA PARTNERSHIP IN COMMENDAM

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of WILLOWBROOK IIAPARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM (the Partnership)as of December 31, 2003 and 2002, and the related statements ofoperations, changes in 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 conducted our audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 WILLOWBROOK IIAPARTMENTS PARTNERSHIP, A LOUISIANA PARTNERSHIP IN COMMENDAM as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER and LEBLANC, LLP

Metairie, Louisiana

March 6, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Arbors at Eagle Crest Limited Dividend

Housing Association Limited Partnership

(A Michigan Limited Partnership)

Union, Michigan

 

We have audited the accompanying balance sheets of Arbors at EagleCrest Limited Dividend Housing Association Limited Partnership (A MichiganLimited Partnership) as of December 31, 2003 and 2002 and the relatedstatements of operations, partners’ capital (deficit) and cash flows for theyears then ended. These 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 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 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 statements referred to above presentfairly, in all material respects, the financial position of Arbors at EagleCrest Limited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ capital (deficit), and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Arbors at Ironwood LP

(An Indiana Limited Partnership)

Mishawaka, Indiana

 

We have audited the accompanying balance sheets of Arbors at IronwoodLP (An Indiana Limited Partnership) as of December 31, 2003 and 2002 andthe related statements of operations, partners’ capital , and cash flows forthe years then ended. These 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 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 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 statements referred to above presentfairly, in all material respects, the financial position of Arbors at IronwoodLP as of December 31, 2003 and 2002, and the results of its operations,changes in partners’ capital, and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2,2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Gouverneur Senior Housing Associates, L.P.

 

We have audited the accompanying balance sheet of Gouverneur SeniorHousing Associates, L.P. (a limited partnership) as of December 3 1, 2003and 2002, and the related statements of operations and partners’ capital(deficit), and cash flows for the years then ended. These 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 with auditing standards generallyaccepted in the United States of America. 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 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 statements referred to above presentfairly, in all material respects, the financial position of Gouverneur SeniorHousing Associates, L.P. as of December 31, 2003 and 2002, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

SALMIN, CELONA, WEHRLE & FLAHERTY, LLP

Rochester, NY

January 16, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Tally Ho Apartments II Partnership

 

We have audited the accompanying balance sheet of Tally Ho ApartmentsII Partnership (the Partnership) as of December 31, 2003, and the relatedstatements of income, 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. The financial statements of Tally Ho Apartments11 Partnership as of December 31, 2002, were audited by other auditorswhose report dated February 25, 2003, expressed an unqualified opinion onthose statements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States and the Standards for Financial and ComplianceAudits 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 statements referred to above presentfairly, *in*all material respects, the financial position of Tally Ho ApartmentsII Partnership of December 31, 2003, and the results of its operations andits cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated March 11, 2004, on our consideration of TallyHo Apartments II Partnership’s internal control over financial reporting andour tests of its compliance with certain provisions of laws, regulations,contracts and grants. That 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedules listed in thetable of contents are presented for the purpose of additional analysis and arenot a required part of the basic financial statements of Tally Ho Apartments IIPartnership. 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.

 

CAMERON, HINES & HARTT

West Monroe, Louisiana

March 11, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

TIMBER TRAILS I PARTNERSHIP

 

We have audited the accompanying balance sheet of Timber Trails IPartnership (the Partnership) as of December 31, 2003, and the relatedstatements of income, 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. The financial statements of Timber Trails IPartnership as of December 31, 2002 were audited by other auditors whosereport dated March 3, 2003, expressed an unqualified opinion on thosestatements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the Standards for Financial andCompliance 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 statements referred to above presentfairly, in all material respects, the financial position of Timber Trails IPartnership as of December 31, 2003, and the results of its operations andits cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated February 3, 2004, on our consideration ofTimber Trails I Partnership’s internal control over financial reporting and ourtests of its compliance with certain provisions of laws, regulations, contractsand grants. 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedules listed in thetable of contents are presented for the purpose of additional analysis and arenot a required part of the basic financial statements of Timber Trails IPartnership. 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.

 

CAMERON, HINES & HARTT

West Monroe, Louisiana

February 3, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Arbors at Ironwood II LP

(An Indiana Limited Partnership)

Mishawaka, Indiana

 

We have audited the accompanying balance sheets of Arbors at IronwoodII LP (An Indiana Limited Partnership) as. of. December 31, 2003 and 2002and the related statements of operations, partners’ capital, and cash flows forthe years then ended. These 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 with auditing standards generallyaccepted in the United States of America. 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 presentfairly, in all material respects, the financial position of Arbors at IronwoodII LP as of December 31, 2003 and 2002 and the results of its operations,changes in partners’ capital and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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Independent Auditor’s Report

 

To the Partners of

Azle Fountainhead, L.P.

Azle, Texas

 

I have audited accompanying balance sheets of Azle Fountainhead, LP asof December 31, 2003 and 2002, and the accompanying statements operations,partners’ capital, 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 onour audits.

 

I conducted my audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I 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 as evaluatingthe overall financial statement presentation. I believe that my audits providea reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Azle Fountainhead,LP as of December 31, 2003 and 2002, and the results of its operations,changes in partners’ capital, and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

My audits were made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pagesI-16 and I-17 is presented for purposes of additional analysis and is not arequired part of basic financial statements. Such information has beensubjected 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.

 

GWEN WARD, P.C.

Fort Worth, Texas

March 4, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Capitol Five Limited Partnership

 

We have audited the accompanying balance sheets of Capitol Five LimitedPartnership, (the Partnership), as of December 31, 2003 and 2002 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 audit.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America 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 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 Capitol FiveLimited Partnership as of December 31, 2003 and 2002**,**and its results ofoperations, changes in partners’ equity (deficit), and cash flows for the yearsthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

In accordance with Government *Auditing Standards, we*have also issuedour report dated February 9, 2004 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.

 

LITTLE SHANEYFELT MARSHALL ROMINE & CO.

Little Rock, AR

February 9, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

The Partners

Carlyle Apartments Limited Partnership

Sioux Falls, South Dakota

 

We have audited the accompanying balance sheets of Carlyle ApartmentsLimited Partnership****as of December 31, 2003 and 2002, 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 with auditing standards generallyaccepted in the United States of America. 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 presentfairly, in all material respects, the financial position of Carlyle ApartmentsLimited Partnership as of December 31, 2003 and 2002, and the results ofits operations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pages 13and 14 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 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.

 

EIDE BAILLY LLP

Sioux Falls, South Dakota

January 13, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

CENTER PLACE APARTMENTS II, LTD

 

We have audited the accompanying balance sheet of CENTER PLACEAPARTMENTS II, LTD, RHS Project No. 51-010-721481069 as of December 31,2003, and the related statement 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 on these financial statements based on our audit. Thefinancial statements of CENTER PLACE APARTMENTS II, LTD as of December 31,2002, were audited by other auditors whose report dated February 22, 2003expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards,  issued*by the Comptroller Generalof the United States. 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 presentfairly, in all material respects, the financial position of CENTER PLACEAPARTMENTS II, LTD as of December 31, 2003, and the results of itsoperations, changes in partners’ equity (deficit) and cash flows for the yearthen ended in conformity with accounting principles generally accepted in theUnited 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 15 through 21 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.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated February 29, 2004, on our consideration ofCENTER PLACE APARTMENTS II, LTD’s - internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts, and grants. That report is an integral part of an audit performed inaccordance with *Government Auditing*Standards and should be read inconjunction with the report in considering the results of our audit.

 

BOND & TOUSIGNANT

Monroe, Louisiana

February 29, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

March 1, 2004

 

To the Members

MA NO. 2 LLC

San Diego, California

 

We have audited the accompanying balance sheets of MA NO 2 LLC (aNevada Limited Liability Company) as of December 31, 2003, and the relatedstatements of income, changes in members’ equity and cash flows for the yearsthen ended. These financial statements are the responsibility of the Company’smanagement. Our responsibility is to express an opinion on these financialstatements 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 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 MA NO 2 LLC as ofDecember 31, 2003, 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.

 

BONK ACCOUNTANCY CORPORATION

San Diego, CA

March 1, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Members

Meadowside Associates, LLC

 

We have audited the accompanying balance sheets of MeadowsideAssociates, LLC as of December 31, 2003 and 2002, and the relatedstatements of operations, members’ equity (deficit), and cash flows for theyears then ended. These financial statements are the responsibility of theCompany’s management. Our responsibility is to express an opinion on thefinancial statements based on our audits.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America and Government Auditing Standards issuedby the Comptroller General of the United States of America. 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 reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of MeadowsideAssociates, LLC as of December 31, 2003, and the results of its operationsand its cash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with Government Auditing Standards, we have alsoissued reports dated January 29, 2004 on our consideration of MeadowsideAssociates, LLC’s internal control structure and its compliance with laws andregulations.

 

FECTEAU & COMPANY, PLLC

Albany, NY

January 29, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

OAKLAND PARTNERSHIP

 

We have audited the accompanying balance sheet of OAKLAND PARTNERSHIP,RHS Project No. 22-002-721457988 as of December 31, 2003, and the relatedstatements of operations, 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 audit. The financial statements of OAKLANDPARTNERSHIP as of December 31, 2002, were audited by other auditors whosereport dated February 25, 2003 expressed an unqualified opinion on thosestatements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America 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 statements referred to above presentfairly, in all material respects, the financial position of OAKLAND PARTNERSHIPas of December 31, 2003, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the year then ended in conformitywith accounting principles 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 15 through 21 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.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated February 29, 2004, on our consideration ofOAKLAND PARTNERSHIP’s internal control over financial reporting and our testsof its 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 the reportin. considering the results of our audit.

 

BOND & TOUSIGNANT

Monroe, Louisiana

February 29, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Western Garden Partnership

 

We have audited the accompanying balance sheet of Western GardenPartnership (the Partnership) as of December 31, 2003, and the relatedstatements of income, 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. The financial statements of Western GardenPartnership as of December 31, 2002, were audited by other auditors whosereport dated March 17, 2003, expressed an unqualified opinion on thosestatements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the Standards for Financial and ComplianceAudits 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 statements referred to above presentfairly, in all material respects, the financial position of Western GardenPartnership as of December 31, 2003, and the results of its operations andits cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated February 26, 2004, on our consideration ofWestern Garden Partnership’s internal control over financial reporting and ourtests of its compliance with certain provisions of laws, regulations, contractsand grants. 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedules listed in thetable of contents are presented for the purpose of additional analysis and arenot a required part of the basic financial statements of Western GardenPartnership. 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.

 

CAMERON, HINES & HARTT

West Monroe, Louisiana

February 26, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

BIENVILLE PARTNERSHIP

 

We have audited the accompanying balance sheet of Bienville Partnership(the Partnership) as of December 31, 2003, and the related statements ofincome, 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. The, financial statements of Bienville Partnership as ofDecember 31, 2002, were audited by other auditors whose report datedFebruary 27, 2003, expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the Standards for Financial andCompliance 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 statements referred to above presentfairly, in all material respects, the financial position of BienvillePartnership as of December 31, 2003, and the results of its operations andits cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated January 29, 2004, on our consideration ofBienville Partnership’s internal control over financial reporting and our testsof its 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedules listed in thetable of contents are presented for the purpose of additional analysis and arenot a required part of the basic financial statements of Bienville Partnership.Such information has been subjected to the auditing procedures applied in theaudit 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.

 

CAMERON, HINES & HARTT

West Monroe, Louisiana

January 29, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Brookstone Place II Limited Dividend

Housing Association Limited Partnership

(A Michigan Limited Partnership)

Port Huron, Michigan

 

We have audited the accompanying balance sheet of Brookstone Place IILimited Dividend Housing Association Limited Partnership (A Michigan LimitedPartnership) as of December 31, 2003 and 2002, and the related statementsof operations, partners’ capital 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 with auditing standards generallyaccepted in the United States of America and the Standards for Financial andCompliance 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 statements referred to above presentfairly, in all material respects, the financial position of Brookstone Place IILimited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations, change inpartners’ capital and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

General Partner

Cedar Grove Apartments Phase I, Ltd.

Shepherdsville, Kentucky 40165

 

We have audited the accompanying balance sheets of Cedar GroveApartments Phase I Ltd., (a Kentucky limited partnership), as ofDecember 31, 2003 and 2002, 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 with auditing standards generallyaccepted in the United States of America 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 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 Cedar GroveApartments Phase I, Ltd. as of December 31, 2003 and 2002, and the resultsof its operations, and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards*we have alsoissued our report dated February 12, 2004, on our consideration of CedarGrove Apartments Phase I, Ltd’s internal control over financial reporting andour tests of compliance with certain provisions of laws, regulations,contracts, and grants. Those reports are an integral part of an audit performedin accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Freeman, Fister & Associates PSC

Louisville, KY

February 12, 2004

 

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Independent Auditors’ Report

 

Mr. Douglas Pauley, General Partner

Limited Partners

Cranberry Cove Limited Partnership

 

We have audited the accompanying balance sheet of Cranberry CoveLimited Partnership, RHS Project No. 57-041-550774072, as of December 31,2003, 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. The financial statements andsupplemental information of Cranberry Cove Limited Partnership as of and forthe year ended December 31, 2002, were audited by other auditors whosereport dated February 10, 2003, expressed an unqualified opinion on those,statements and supplemental information.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits 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 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 Cranberry CoveLimited Partnership as of December 31, 2003, and the results of itsoperations, changes in partners’ equity and cash flows for the year then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with Government Auditing *Standards,*we have alsoissued our report dated February 24, 2004, on our consideration ofCranberry Cove Limited Partnership internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulationsand contracts. That 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 audit was made for the purpose of forming an opinion on the 2003basic financial statements taken as a whole. The 2003 supplemental informationon page 26 is presented for purposes of additional analysis and is not arequired part of the 2003 basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the 2003 basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the 2003 basic financial statements taken as a whole.

 

DEARIEN & COMPANY, AC

Charleston, West Virginia

February 24, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To The Partners

Forest Glen Village Limited Partnership

 

We have audited the accompanying balance sheet of Forest Glen VillageLimited Partnership, as of December 31, 2003 and 2002, and the relatedstatements 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 in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits 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 accounting principlesused and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Forest Glen VillageLimited Partnership as of December 31, 2003 and 2002, and the results ofits operations and its cash flows for the years then ended in conformity withgenerally accepted accounting principles in the United States.

 

In accordance with Government Auditing *Standards,*we have alsoissued our report dated February 26, 2004, on our consideration of ForestGlen Village Limited Partnership’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulationsand contracts. That 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 audit was made for the purpose of forming an opinion on the basicfinancial statements of Forest Glen Village Limited Partnership taken as awhole. The supplemental information on pages 9 and 12 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.

 

DAVID G. PELLICCIONE, CPA

Savannah, Georgia

February 26, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Harbor Pointe II/MHT Limited Dividend Housing

Association Limited Partnership

 

We have audited the accompanying balance sheet of Harbor Point II/MHTLimited Dividend Housing Association Limited Partnership (a Michigan LimitedPartnership), as of December 31, 2003 and the related statements ofincome, 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 with auditing standards generallyaccepted In the United States of America. 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 statements referred to above presentfairly, in all material respects,, the financial position of Harbor PointeII/MHT Limited Dividend Housing Association Limited Partnership as ofDecember 31, 2003, 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental Information on pages 11and 12 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 our opinion, is fairly stated, in all material respects, In relation tothe basic financial statements taken as a whole.

 

HUNGERFORD & CO.

Southgate, Michigan

January 29, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Members

Marwood Senior Associates, LLC

 

We have audited the accompanying balance sheet of Marwood SeniorAssociates, LLC (a limited liability company), HUD Project No. 000-35384 as ofDecember 31, 2003 and 2002 and the related statements of operations,changes in members’ equity (deficit), and cash flows for the years then ended.These financial statements are the responsibility of the Company’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America 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 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 Marwood SeniorAssociates, LLC as of December 31, 2003 and 2002, 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.

 

In accordance with *Government Auditing Standards,*we havealso issued reports dated January 16, 2004, on our consideration ofMarwood Senior Associates, LLC’s internal control and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.Those reports 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 audits.

 

Our audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The accompanying supplemental datarequired by HUD and the Maryland DHCD Annual Audit Questionnaire is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements of the Company. 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.

 

SALMIN, CELONE, WEHRLE & FLAHERTY, LLP

Rochester, NY

January 16, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Members

Meadowside Associates, LLC

 

We have audited the accompanying balance sheets of Meadowside Associates,LLC as of December 31, 2003 and 2002, and the related statements ofoperations, members’ equity (deficit), and cash flows for the years then ended.These financial statements are the responsibility of the Company’s management.Our responsibility is to express an opinion on the financial statements basedon our audits.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America and Government Auditing Standardsissuedby the Comptroller General of the United States of America. 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 reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of MeadowsideAssociates, LLC as of December 31, 2003 and 2002, 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.

 

In accordance with Government Auditing Standards, we have also issuedreports dated January 29, 2004 on our consideration of MeadowsideAssociates, LLC’s internal control structure and its compliance with laws andregulations.

 

FECTEAU & COMPANY, PLLC

Albany, New York

January 29, 2004

 

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INDEPENDENT AUDITORS’  REPORT

 

To the Partners

RED HILL APARTMENTS I PARTNERSHIP

 

We have audited the accompanying balance sheet of Red Hill Apartments IPartnership (the Partnership) as of December 31, 2003 and the relatedstatements of income, 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. The financial statements of Red Hill ApartmentsI Partnership as of December 31, 2002 were audited by other auditors whosereport dated March 3, 2003, expressed an unqualified opinion on thosestatements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the Standards for Financial andCompliance 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 statements referred to above presentfairly, in all material respects, the financial position of Red Hill ApartmentsI Partnership as of December 31, 2003, and the results of its operationsand its cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated February 13, 2004, on our consideration ofRed Hill Apartments I Partnership’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts and grants. That 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedules listed in thetable of contents are presented for the purpose of additional analysis and arenot a required part of the basic financial statements of Red Hill Apartments IPartnership. 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

 

CAMERON, HINES & HARTT

West Monroe, Louisiana

February 13, 2004

 

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INDEPENDENT AUDITORS’  REPORT

 

To the Partners of

Great Bridge Dover Limited Partnership

Manchester, New Hampshire

 

We have audited the accompanying. balance. sheet of Great Bridge DoverLimited Partnership, as of December 31, 2003, and the related statementsof operations, changes, in partners’ capital, and cash flows for the year endedDecember 31, 2003.  These financialstatements are the: responsibility of the Partnership’s management.  Our responsibility is to, express an opinionon, these. financial statements based on our audit.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we plan and perform the audit to obtainreasonable 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 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 Great Bridge DoverLimited Partnership as of December 31, 2003 and the results of itsoperations, changes in partners’ capital and cash flows for the year endedDecember 31, 2003, in conformity with accounting principles generallyaccepted in the United States of America.

 

Our audit was made for the purpose of forming an opinion on thefinancial statements referred to in the first paragraph taken as a whole.  The accompanying supplemental schedules arepresented for purposes of additional analysis and are not a required part ofthe above financial statements.  Suchinformation has been subjected to the auditing procedures applied in the auditof the financial statements referred to above; and, in our opinion, theinformation is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

NESSERALLA & COMPANY, PC

Concord, New Hampshire

January 20, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Harbor Pointe II/MHT Limited Dividend Housing

Association Limited Partnership

 

We have audited the accompanying balance sheet of Harbor Pointe II/MHTLimited Dividend Housing Association Limited Partnership (a Michigan LimitedPartnership) as of December 31, 2003, and the related statements ofincome, partners’ equity and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Company’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. 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 statements referred to above presentfairly, in all material respects, the financial position of Harbor PointeII/MHT Limited Dividend Housing Association Limited Partnership as ofDecember 31, 2003, 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pages 11and 12 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 our opinion, is fairly stated, in all material respects, in relation tothe basic financial statements taken as a whole.

 

HUNGERFORD & CO.

Southgate, Michigan

January 29, 2004

 

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**INDEPENDENTAUDITORS REPORT**

 

To the Partners

Los Lunas Apartments Limited Partnership dba Hillridge Apartments

Los Lunas, New Mexico

 

We have audited the accompanying balance sheet of Los Lunas ApartmentsLimited Partnership d/b/a Hillridge Apartments as of December 31, 2003 and2002, and the related statements of operations, partners’ equity, and cashflows for the years 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 conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatements. 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 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 Los LunasApartments Limited Partnership dba Hillridge Apartments as of December 31,2003 and 2002, and the results of its operations and its cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States of America.

 

PALMER & CO., PA

Albuquerque, NM

April 3, 2004

 

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Independent Auditor’s Report

 

To the Partners

Lynnelle Landing Limited Partnership

 

We have audited the accompanying balance sheet of Lynnelle LandingLimited Partnership as of December 31, 2003, and the related statements ofoperations, partners, equity and 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. Thefinancial statements and supplemental information of Lynnelle Landing LimitedPartnership as of and for the year ended December 31, 2002, were auditedby other auditors whose report dated February 10, 2003, expressed anunqualified opinion on those statements and supplemental information.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits 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 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 Lynnelle Landing LimitedPartnership as of December 31, 2003, and the results of its operations,changes in partners’ equity and cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordance with Government Auditing *Standards, we*have alsoissued our report dated March 19, 2004, on our consideration of LynnelleLanding Limited Partnership’s internal control over financial reporting and ourtests of its compliance with certain provisions of laws, regulations andcontracts. That report is an integral part of an audit performed in accordancewith Government Auditing *Standards and*should be read inconjunction with this report in considering the results of our audit.

 

Our audit was made for the purpose of forming an opinion on the 2003basic financial statements taken as a whole. The 2003 supplemental informationon page 14 is presented for purposes of additional analysis and is not arequired part of the 2003 basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the 2003 basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the 2003 basic financial statements en as a whole.

 

DEARIEN & COMPANY, A.C.

Charleston, West Virginia

March 19, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Natchez Place Apartments II Partnership

 

We have audited the accompanying balance sheet of Natchez PlaceApartments II Partnership (the Partnership) as of December 31, 2003, andthe related statements of income, 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. The financial statements of NatchezPlace Apartments II Partnership as of December 31, 2002, were audited byother auditors whose report dated March 2, 2003, expressed an unqualifiedopinion on those statements.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the Standards for Financial andCompliance 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 statements referred to above presentfairly, in all material respects, the financial position of Natchez PlaceApartments 11 Partnership of December 31, 2003, and the results of itsoperations and its cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated March 9, 2004, on our consideration of NatchezPlace Apartments 11 Partnership’s internal control over financial reporting andour tests of its compliance with certain provisions of laws, regulations,contracts and grants. That 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedules listed in thetable of contents are presented for the purpose of additional analysis and arenot a required part of the basic financial statements of Natchez PlaceApartments 11 Partnership. 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.

 

CAMERON, HINES & HART

West Monroe, Louisiana

March 9, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Northfield Housing, L.P.

 

I have audited the accompanying balance sheet of Northfield Housing,L.P. as of December 31, 2003 and 2002 and related financial statements ofoperations, partners’ capital and cash flow 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 in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that I planand perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An “it includesexamining, on a teat 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 my audits provide areasonable basis for our opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Northfield Housing,L.P. as of December 31, 2003 and.2002 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.

 

My audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplemental 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 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.

 

BOB T. ROBINSON

Jackson, Mississippi

March 1, 2004

 

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INDEPENDENT AUDITORS’  REPORT

 

To the Partners of

Parkhurst Place Limited Partnership

Amherst, New Hampshire

 

We have audited the accompanying. balance. sheet of Parkhurst PlaceLimited Partnership, as of December 31, 2003 and 2002, and the relatedstatements of operations, changes, in partners’ capital, and cash flows for theyear ended December 31, 2003 and 2002. These financial statements are the: responsibility of the Partnership’smanagement.  Our responsibility is to,express an opinion on, these. financial statements based on our audit.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we plan and perform the audit to obtainreasonable 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 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 Parkhurst PlaceLimited Partnership as of December 31, 2003 and 2002 and the results ofits operations, changes in partners’ capital and cash flows for the year endedDecember 31, 2003 and 2002, in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with *Government Accounting Standards*, we havealso issued our report dated January 22, 2004 on our consideration ofParkhurst Place Limited Partnership’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts and grants.

 

Our audit was made for the purpose of forming an opinion on thefinancial statements referred to in the first paragraph taken as a whole.  The accompanying supplemental schedules arepresented for purposes of additional analysis and are not a required part ofthe above financial statements.  Suchinformation has been subjected to the auditing procedures applied in the auditof the financial statements referred to above; and, in our opinion, theinformation is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

NESSERALLA & COMPANY, PC

Concord, New Hampshire

January 20, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Members of

Strawberry Lane, LLC

 

We have audited the accompanying balance sheets of Strawberry Lane, LLCas of December 31, 2003 and 2002, and the related statements ofoperations, changes in members’ capital and cash flows for the years then ended.  These financial statements are theresponsibility of the management of Strawberry Lane, LLC.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

We conducted our audits in accordance with U.S. generally acceptedauditing standards 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 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 Strawberry Lane,LLC as of December 31, 2003 and 2002, and the results of its operationsand its cash flows for the years then ended in conformity with U.S. generallyaccepted accounting principles.

 

In accordance with Government Auditing Standards and the ConsolidatedAudit Guide for Audits HUD Programs issued by the U.S. Department ofHousing and Urban Development, we have also issued a report datedJanuary 13, 2004, on our consideration of the entity’s internal controland report dated January 13, 2004, on its compliance with specificrequirements applicable to its major HUD program and specific requirementsapplicable to Fair Housing and Non-Discrimination.

 

DAVIE KAPLAN CHAPMAN BRAVER

January 13, 2004

 

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INDEPENDENT AUDITORS REPORT

 

To the Partners

Wingfield Apartments II Partnership

A Louisiana Partnership in Commendam

Mansfield, Louisiana

 

We have audited the accompanying balance sheets of Wingfield ApartmentsII Partnership, A Louisiana Partnership in Commendam (the Partnership) as ofDecember 31, 2003 and 2002, and the related statements of operations,changes in 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 audits in accordance with generally accepted auditingstandards generally accepted in the United States of America. 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 WingfieldApartments II Partnership, A Louisiana Partnership in Commendam as ofDecember 31, 2003 and 2002, and the results of its operations, changes inpartners’ equity and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

Our audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplementary information presentedin the Schedule of Expenses 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.

 

PAILET, MEUNIER AND LEBLANC, LLP

Metairie, Louisiana

March 6, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Lyceum Housing Limited Partnership

 

We have audited the accompany balance sheets of Lyceum Housing LimitedPartnership, as of December 31, 2003, and the related statements ofoperations, changes in Partners’ Equity (Deficit). And cash flows for the yearthen 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 conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free from 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 Lyceum Housing Limited Partnership, as ofDecember 31, 2003, 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

 

The Computation of Distributable Cash on page 17 is not a required partof the basic financial statements but is supplementary information required bythe Limited Partner. We have applied certain limited procedures, whichconsisted principally of inquiries of management regarding the methods ofmeasurement and presentation of the supplementary Information However, we didnot audit the information and, therefore, express no opinion on it.

 

R.A. MERCER & CO., PC

Cattaraugus, New York

May 7, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

The Partners

MDI Limited Partnership #81

St. Paul, Minnesota

 

We have audited the accompany balance sheets of MDI Limited Partnership#81, as of December 31, 2003, and the related statements of operations,partners’ equity, and 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 conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. 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 financialstatements referred to above present fairly, in all material respects, thefinancial position of MDI Limited Partnership #81, as of December 31,2003, and the results of its operations and its cash flows for the year thenended, 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 basicfinancial statements taken as a whole.

 

EIDE BAILLY LLP

Fargo, North Dakota

March 16, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Charlevoix Apartments Limited Dividend Housing

Association Limited Partnership

Charlevoix, Michigan

 

We have audited the accompanying balance sheets of CharlevoixApartments Limited Dividend Housing. Association Limited Partnership, RuralDevelopment Project No. 26-015-383580151, as of December 31, 2003 and2002, and the related statements of income and cash flows from June 13,2002 to December 31, 2002, and for the year ended December 31,2003.  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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Development Audit Program.. 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 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 reason ebasis for our opinion.

 

In our opinion, the financial statements referred to above presentlyfairly, in all material respects, the financial position of CharlevoixApartments Limited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002, and the results of its operations and cashflows from June 13, 2002 to December 31, 2002 and for the year endedDecember 31, 2003, in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 13, 2004, on our consideration ofCharlevoix Apartments Limited Dividend Housing Association LimitedPartnership’s internal control over financial reporting and our tests ofcompliance 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.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 14 through 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.

 

YEO & YEO

Lansing, Michigan

February 13, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Cloverlane Apartments – Lakeview

Limited Partnership

Coleman, Michigan

 

We have audited the accompanying balance sheets of CloverlaneApartments – Lakeview Limited Partnership (a Michigan Limited Partnership),Rural Development Project No. 26-059-370464373, as of December 31, 2003and 2002, and the related statements of income, partners’ equity and cash flowsfrom for the year ended December 31, 2003, and from June 10, 2002 toDecember 31, 2002.  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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Development Audit Program.. 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 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 reason ebasis for our opinion.

 

In our opinion, the financial statements referred to above presentlyfairly, in all material respects, the financial position of CloverlaneApartments – Lakeview Limited Partnership as of December 31, 2003 and2002, and the results of its operations and cash flows from the year endedDecember 31, 2003, and from June 10, 2002 to December 31, 2002,in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 21, 2004, on our consideration ofCloverlane Apartments – Lakeview Limited Partnership’s internal control overfinancial reporting and our tests of 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.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 15 through 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.

 

YEO & YEO

Lansing, Michigan

February 21, 2004

 

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Independent Auditor’s Report

 

To the Partners of

Henderson Fountainhead, L.P.

Seven Points, Texas

 

I have audited the accompanying balance sheet ofHenderson/Fountainhead, L.P. as of December 31, 2003 and 2002, and theaccompanying statements of operations, partners’ capital and cash flows for theyears then ended. These statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on the financialstatements based on my audit.

 

I conducted my audit in accordance with auditing standards generallyaccepted 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 meset4fairly. in all material respects, the financial position of HendersonFountainhead LP as of December 31, 2003 and 2002 and the results of itsoperations, changes in partners’ capital and cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America**.**

 

My audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pagesI-16 and I-17 is presented for purposes of additional analysis and is not arequired part of basic financial statements. Such information has beensubjected 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.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Lakewood Apartments - Saranac

Limited Partnership

Coleman, Michigan

 

We have audited the accompanying balance sheets of Lakewood Apartments– Saranac Limited Partnership, Rural Development Project No. 26-034-383584372,as of December 31, 2003 and 2002, and the related statements of income,partners’ equity and cash flows from for the year ended December 31, 2003,and from June 25, 2002 to December 31, 2002.  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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Development Audit Program.. 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 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 reason ebasis for our opinion.

 

In our opinion, the financial statements referred to above presentlyfairly, in all material respects, the financial position of Lakewood Apartments– Saranac Limited Partnership as of December 31, 2003 and 2002, and theresults of its operations and cash flows from the year ended December 31,2003, and from June 25, 2002 to December 31, 2002, in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 13, 2004, on our consideration ofLakewood Apartments – Saranac Limited Partnership’s internal control overfinancial reporting and our tests of 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.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 14 through 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.

 

YEO & YEO

Lansing, Michigan

February 21, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Parkside Apartments – Coleman

LDHA Limited Partnership

Coleman, Michigan

 

We have audited the accompanying balance sheets of Parkside Apartments– Coleman LDHA Limited Partnership (a Michigan Limited Partnership), RuralDevelopment Project No. 26-056-383605131, as of December 31, 2003 and2002, and the related statements of income, partners’ equity and cash flowsfrom for the year ended December 31, 2003, and from July 30, 2002 toDecember 31, 2002.  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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Development Audit Program.. 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 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 reason ebasis for our opinion.

 

In our opinion, the financial statements referred to above presentlyfairly, in all material respects, the financial position of Parkside Apartments– Coleman LDHA Limited Partnership as of December 31, 2003 and 2002, andthe results of its operations and cash flows from the year endedDecember 31, 2003, and from July 30, 2002 to December 31, 2002,in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 24, 2004, on our consideration ofCloverlane Apartments – Lakeview Limited Partnership’s internal control overfinancial reporting and our tests of 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.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 15 through 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.

 

YEO & YEO

Lansing, Michigan

February 24, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Pyramid Seven Limited Partnership

 

We have audited the accompanying balance sheet of Pyramid Seven LimitedPartnership, (the Partnership), as of December 31, 2003 and the relatedstatements of profit (loss), changes in partners’ equity (deficit) 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 accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits 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 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 Pyramid SevenLimited Partnership as of December 31, 2003, and its results ofoperations, changes in partners’ equity (deficit), and cash flows for the yearthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued our report dated February 9, 2004 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.

 

LITTLE SHANEYFELT MARSHALL ROMINE & CO.

Little Rock, AR

February 9, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Riverview Apartments – Blissfield LDHA

Limited Partnership

Blissfield, Michigan

 

We have audited the accompanying balance sheets of Riverview Apartments– Blissfield LDHA Limited Partnership (a Michigan Limited Partnership), RuralDevelopment Project No. 26-046-383541828, as of December 31, 2003 and2002, and the related statements of income, partners’ equity and cash flowsfrom for the year ended December 31, 2003, and from July 31, 2002 toDecember 31, 2002.  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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Development Audit Program.. 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 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 reason ebasis for our opinion.

 

In our opinion, the financial statements referred to above presently fairly,in all material respects, the financial position of Riverview Apartments –Blissfield Limited Partnership as of December 31, 2003 and 2002, and theresults of its operations and cash flows from the year ended December 31,2003, and from July 31, 2002 to December 31, 2002, in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 13, 2004, on our consideration ofRiverview Apartments – Blissfield Limited Partnership’s internal control overfinancial reporting and our tests of 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.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 14 through 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.

 

YEO & YEO

Lansing, Michigan

February 21, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Strawberry Lake Apartments – Norway

Limited Dividend Housing Association

Limited Partnership

Norway, Michigan

 

We have audited the accompanying balance sheets of Strawberry LakeApartments – Norway Limited Dividend Housing Association Limited Partnership,Rural Development Project No. 26-022-383627208, as of December 31, 2003,and the related statements of income, partners’ equity and cash flows fromJuly 17, 2003 to December 31, 2003. 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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Rural Development Audit Program.. 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 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 reason ebasis for our opinion.

 

In our opinion, the financial statements referred to above presentlyfairly, in all material respects, the financial position of Strawberry LakeApartments – Norway Limited Dividend Housing Association Limited Partnership asof December 31, 2003, and the results of its operations and cash flowsfrom July 17, 2003 to December 31, 2003, in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 13, 2004, on our consideration ofStrawberry Lake Apartments – Norway 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 audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 14 through 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.

 

YEO & YEO

Lansing, Michigan

February 21, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

General Partners

Orchard River Associates, LP

Ukiah, California

 

We have audited the accompanying balance sheets of Orchard RiverAssociates, L.P (a California limited partnership), Federal Identification#68-0011197, as of December 31, 2003 and the related statements ofoperations, changes in partners’ capital and cash flows for the years thenended.  These financial statements arethe responsibility of the Partnership. Our responsibility is to express anopinion on these financial statements based on our audit.

 

We conducted our audit in accordance with auditing standards, generallyaccepted in the United States of America. 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 statements referred to above presentfairly, in all material respects, the financial position of Orchard RiverAssociates, L.P., as of December 31, 2003, and the results of itsoperations for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

ROBERTSON, CAHILL & ASSOCIATES, CPAs

Lakeport, California

March 11, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

June 11, 2004

 

To the Partners

North Forty Aspen Plus, L.P.

 

We have audited the accompanying balance sheet of North Forty AspenPlus, L.P., VHDA Project No. 03-1764-C, as of December 31, 2003, and therelated statements of profit and loss, partners’ equity, and cash flows for theperiod from August 1, 2003 through December 31, 2003.  These financial statement are the responsibilityof North Forty Aspen Plus, L.P.’s management. Our responsibility is to expressan opinion on these financial statements based on our audit.

 

We conducted our audit in accordance with U.S. generally acceptedauditing standards and the Virginia Housing Development Authority’sMortgagor/Grantee’s Audit Guide. 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 statements referred to above presentfairly, in all material respects, the financial position of North Forty AspenPlus, LP as of December 31, 2003 and the results of its operations and itscash flows for the period from August 1, 2003 through December 31,2003, in conformity with U.S. generally accepted accounting principles.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary information presented on pages 16 to 23 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements of North Forty Aspen Plus, L.P. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly financial. statementstaken, as a whole.

 

ZUCKERMAN & ASSOC.

June 11, 2004

 

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners of Aurora Village Associates, LLLP

Longmont, Colorado

 

We have audited the accompanying balance sheet of Aurora VillageAssociates, LLLP, FHA Project 101-98101, as of December 31, 2003, and therelated statement of profit and loss, changes in 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 accordance with auditing standards generallyaccepted in the United States of America 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 statements referred to above presentfairly, in all material respects, the financial position of Aurora VillageAssociates, LLLP, as of December 31, 2003, and the results of itsoperations and the changes in its partners’ equity and its cash flows for theyear then ended, in conformity with accounting principles generally accepted inthe United States..

 

In accordance with Government Auditing Standards, we have alsoissued a report dated February 14, 2004 on our consideration of AuroraVillage Associates, LLLP, internal controls and on our tests on its compliancewith certain provisions of laws, regulations, contract and grants. Thesereports are an integral part of the audit performed on accordance withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our audit.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The accompanying supplementalinformation (shown on pages 13 -15) is presented for the purposes of additionalanalysis and is not a required part of the basic financial statements of thePartnership. 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.

 

Z. A. ZUDYK

Denver, Colorado

February 14, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners of

New Oxford I Limited Partnership

DBA Oxford Manor Apartments

Rockville, Maryland

 

We have audited the accompanying balance sheet of New Oxford I LimitedPartnership (a limited partnership), DBA Oxford Manor Apartments, Case No.44-010-522301649, as of December 31, 2003, and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the periodNovember 14, 2002 through December 31, 2003. 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 with auditing standards generallyaccepted in the United States of America, the standards of applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program,” issued inDecember 1989. Those standards 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, theevidence 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 presentfairly, in all material respects, the financial position of New Oxford ILimited Partnership, DBA Oxford Manor Apartments, Case No. 44-010-522301649, atDecember 31, 2003, and the results of its operations, changes in partnersequity (deficit) and cash flows for the period then ended in conformity withaccounting principles generally accepted in the United States of America,

 

In accordance with *Government Auditing Standards*and the U.S.Department of Agriculture, Farmers Home Administration “Audit Program,” issued inDecember 1989, we have also issued a report dated January 9, 2004, onour consideration of New Oxford I Limited Partnership’s internal control and oncompliance with specific requirements applicable to Rural Housing ServicePrograms. Those reports are 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.

 

Fentress, Brown, CPAs & Associates, LLC

Columbus, Ohio

January 9, 2004

 

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**INDEPENDENTAUDITORS’REPORT**

 

General Partners

Orchard River Associates, L.P.

Ukiah, California

 

We have audited the accompanying balance sheets of Orchard RiverAssociates, L.P. (a California limited partnership), Federal Identification#68-0011197, as of December 31, 2003 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.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance with auditing standards, generallyaccepted in the United States of America. 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 -accounting—principles 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 presentlyfairly, in all material respects, the financial position of Orchard RiverAssociates, L.P., as of December 31, 2003, and the results of itsoperation for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

ROBERTSON, CAHILL & ASSOCIATES, CPAs

Lakeport, California

March 11, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners of

Brookside Square Limited Partnership

DBA Brookside Square Apartments

Rockville, Maryland

 

We have audited the accompanying balance sheet of Brookside SquareLimited Partnership (a limited partnership), DBA Brookside Square Apartments,as of December 31, 2003, and the related statements of income, changes inpartners’ equity (deficit) and cash flows for the period June 11, 2003through December 31 2003.  Thesefinancial 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 in accordance with auditing standards generallyaccepted in the United States of America, the standards of applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program,” issued inDecember 1989. Those standards 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, theevidence 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 auditprovides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above, presentfairly, in all material respects, the financial position of Brookside SquareLimited Partnership, DBA Brookside Square Apartments, at December 31,2003, and the results of its operations, and cash flows for the period thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *Government Auditing Standards*and the U.S.Department of Agriculture, Farmers Home Administration “Audit Program,” issuedin December 1989, we have also issued a report dated January 9, 2004,on our consideration of Brookside Square Limited Partnership’s internal controland on compliance with specific requirements applicable to Rural HousingService Programs. Those reports are 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.

 

Fentress, Brown, CPAs & Associates, LLC

Columbus, Ohio 2004

January 9, 2004

 

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**IndependentAuditors’ Report**

 

To the Partners

Ridge Crest Apartments, L.P.

Kansas City, Missouri

 

We have audited the accompanying balance sheet of Ridge CrestApartments, MHIDC Project #02-403-TE, as of December 31. 2003. Thisfinancial statement is the responsibility of the Project’s management Ourresponsibility is to express an opinion on the balance sheet based on our audit

 

We conducted our audit in accordance with U.S. generally acceptedauditing standards. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the balance sheet is free ofmaterial misstatement An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures 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 ouraudit provides a reasonable basis for our opinion.

 

In our opinion, the balance sheet referred to above present fairly, inall material respects, the financial position of Ridge Crest Apartments, MHDCProject # 02-403-TE as of December 31, 2003 in conformity with U.S.generally accepted accounting principles.

 

GOTTLIEB, FLEKIER & CO., P.A.

May 21, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners of

University Plaza Investment Group, LLLP

Greeley, Colorado

 

We have audited the accompanying balance sheet of University PlazaInvestment Group, LLLP, FHA Project No. 101 -98115, as of December 31,2003, and the related statement of operations, changes in partners’ equity andcash flows for the eight months 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 with auditing standards generallyaccepted in the United States of America 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 accounting principlesused and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of University PlazaInvestment Group, LLLP, as of December 31, 2003, and the results of itsoperations and the changes in its partners’ equity and its cash flows for theeight months then ended, in conformity with accounting principles generallyaccepted in the United States.

 

In accordance with Government Auditing Standards, we have alsoissued reports dated February 14, 2004 on our consideration of UniversityPlaza Investment Group, LLLP’s internal control and on our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.Those reports are an integral part of the audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our audit,

 

We conducted our audit to form an opinion on the basic financialstatements of University Plaza Investment Group, LLLP, taken as a whole. Thesupplementary data on pages thirteen and fourteen is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. This 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

 

Z.A. ZUDYK

Denver, Colorado

February 14, 2004

 

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**IndependentAuditors’ Report**

 

Partners

Mill Race Apartments – Plainwell

Limited Partnership

Plainwell, Michigan

 

We have audited the accompanying balance sheets of Mill Race Apartments– Plainwell Limited Partnership, Rural Development Project No.26-003-0010741754 as of December 31, 2003, and the related statements ofincome, partners’ equity and cash flows from June 26, 2003 toDecember 31, 2003.  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 audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and the U.S. Department of Agriculture,Rural Development Audit Program.. 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 statement presentation.We believe that our audits provide a reason e basis for our opinion.

 

In our opinion, the financial statements referred to above presentlyfairly, in all material respects, the financial position of Mill RaceApartments – Plainwell Limited Partnership as of December 31, 2003, andthe results of its operations and cash flows from June 26, 2003 toDecember 31, 2003, in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordance with *Government Auditing Standards,*we havealso issued a report dated February 13, 2004, on our consideration of MillRace Apartments – Plainwell Limited Partnership’s internal control overfinancial reporting and our tests of 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.

 

Our audit was conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The supplementary informationpresented on pages 14 through 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.

 

YEO & YEO

Lansing, Michigan

February 21, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

200 East Avenue Associates, L.P.

 

We have audited the accompanying balance sheet of 200 East AvenueAssociates, L.P. (a limited partnership) as of December 31, 2003 and 2002and the related statements of operations and partners’ capital (deficit) andcash flows for the years then ended. The 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 auditing standards generallyaccepted in the United States of America. Those standards require that we planand perform 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 referred to above presentfairly, in all material respects, the financial position of 200 East AvenueAssociates, L.P. as of December 31, 2003 and 2002, and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the Untied States of America.

 

SALMIN, CELONA, WEHRLE & FLAHERTY, LLP

Rochester, NY

February 2, 2004

 

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Independent Auditors Report

 

To the Partners of

Borger Fountainhead, L.P.

Borger, Texas

 

I have audited the accompanying balance sheet of Borger Fountainhead, L.P.as of December 31, 2003, and the accompanying statements of operations,partners’ capital and cash flows for the year then ended.  These statements are the responsibility ofthe partnership’s management.  Myresponsibility is to express an opinion on the financial statements based on myaudit.

 

I conducted my audit in accordance with auditing standards generallyaccepted 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 or myopinion. that my audit provides a reasonable basis for my opinion.

 

In my opinion, the financial statements referred to above presentfairly, in all material respect, the financial position of Borger Fountainhead,L.P. as of December 31, 2003 and the results of its operations, changes inpartners’ capital and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.  

 

My audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental information on pages1-16 and 1-17 is presented for purposes of additional analysis and is not arequired part of basic financial statements. Such information has beensubjected 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.

 

GWEN WARD, PC

Fort Worth, Texas

March 4, 2004

 

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REPORT OF INDEPENDENT AUDITORS

 

Partners

Brookstone Place II Limited Dividend

Housing Association Limited Partnership

(A Michigan Limited Partnership)

Port Huron, Michigan

 

We-have audited-the accompanying balance sheets of Brookstone Place IILimited Dividend Housing Association Limited Partnership (a Michigan LimitedPartnership) as of December 31, 2003 and 2002 and the related statementsof operations, partners’ capital and cash flows for the years then ended.  These statements are the responsibility ofthe Partnership’s management.  Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we plan and perform the audit to obtainreasonable 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 financial statements referred to above presentfairly, in all material respects, the financial position of Brookstone Place IILimited Dividend Housing Association Limited Partnership as ofDecember 31, 2003 and 2002 and the results of its operations, change inpartners’ capital and cash flows for the years then ended in conformity withaccounting principles generally accepted. in the United States of America.

 

CROWE CHIZEK AND COMPANY LLC

South Bend, Indiana

February 2, 2004

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Childress Apartments, Ltd.

 

We have audited the accompanying balance sheet of Childress Apartments,Ltd. (a limited partnership), RD Project No. 49-038-752927703, as ofDecember 31, 2003.  This financialstatement are the responsibility of the Company’s management. Ourresponsibility is to express an opinion on this financial statement based onour audit.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. 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 balance sheet referred to above present fairly, inall material respects, the financial position of Childress Apartments, Ltd asof December 31, 2003, in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordance with Government Auditing Standards, we have alsoissued a report dated June 14, 2004 on our consideration of ChildressApartment, Ltd’s internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts andgrants.  This report is an integral partof an audit performed in accordance with Government Auditing Standardsand should be read in conjunction with this report in considering the resultsof our audit.

 

MOORE, CAMP, PHILLIPS & CO., LLP

Wichita Falls, Texas

June 14, 2004

 

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**IndependentAuditors’ Report**

 

To The Partners

Farmington Associates I, LP

St. Louis, Missouri

 

We have audited the accompanying balance sheet of Farmington AssociatesI, LP, Project No. 03-099-HCT, a limited partnership, as of December 31,2003, and the related statements of profit and loss, partners’ equity and cashflows 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 with auditing standards- -generally accepted in the United States of America. 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 statements referred to above presentfairly, in all material respects, the financial position of FarmingtonAssociates I, LP as of December 31, 2003, and the results of itsoperations and its cash flows for the year then ended, in conformity withaccounting principles generally accepted in the United States, of America.

 

Our audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The accompanying supplementaryinformation (shown on pages 14 to 16) 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 financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the financial statements taken as a whole.

 

Rubin, Brown, Gornstein & Co. LLP

St. Louis, MO

March 10, 2004

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Harbor Pointe II/MHT Limited Dividend Housing

Association Limited Partnership

 

We have audited the accompanying balance sheet of Harbor Pointe II/MHTLimited Dividend Housing Association Limited Partnership (a Michigan LimitedPartnership) as of December 31, 2003, and the related statements ofincome, partners’ equity and cash flows for the year then ended.  These financial statements are theresponsibility of the Company’s management. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audit In accordance with auditing standards generallyaccepted In the United States of America. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are tee 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 Harbor PointeII/MHT Limited Dividend Housing Association Limited Partnership as ofDecember 31, 2003, 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 audit was made for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The supplemental Information on pages. 11 and 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 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.

 

HUNGERFORD & CO.

Southgate, Michigan

January 29, 2004

 

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**INDEPENDENTAUDITORS’REPORT**

 

To the Partners of

Kings Point Investment Group, LLLP

Denver, Colorado

 

We have audited the accompanying balance sheet of Kings PointInvestment Group, LLLP, Project No. 101-98116—PM-EX-PUR, as ofDecember 31, 2003, and the related statements of operations, changes inpartners’ equity and cash flows for the period August 19 throughDecember 31, 2003. 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 with auditing standards generallyaccepted in the United States of America 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 statements referred to above presentfairly, in all material respects, the financial position of King’s PointInvestment Group, LLLP Project No. 101-98116-PM-EX-PUR, as of December 31,2003, and the results of its operations and the changes in its partners’ equityand its cash flows for the period August 19 through December 31,2003, in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with Government Auditing Standards, we have alsoissued reports dated February 14, 2004 on our consideration of Kings PointInvestment Group, LLLP, internal control and on our tests of its compliancewith certain provisions of laws, regulations, contracts, and grants. Thosereports are an integral part of the audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our audit.

 

Our audits were conducted for the purpose of forming an opinion on thebasic financial statements taken as a whole. The accompanying supplementalinformation (shown on 13-15) is presented for the purposes of additionalanalysis and is not a required part of the basic financial statements of King’sPoint Associates. 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.

 

Z.A. ZUDYK

Denver, Colorado

February 14, 2004

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

PANOLA HOUSING, LTD.

 

We have audited the accompanying balance sheet of PANOLA HOUSING, LTD,.RHS Project No. 50-083-943427163 as of December 31 2003, and the relatedstatement of operations, partners! equity (deficit) and cash flows the yearthen ended. The 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 with auditing standards generallyaccepted in the United States of America 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 statements referred to above presentfairly. in all material respects, the financial position of PANOLA HOUSING,LTD. as of December 31, 2003, and the results of its operations, changesin partners! equity (deficit) and cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof 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 15 through 21 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.

 

In accordance with *Government Auditing Standards, we*havealso issued our report dated March 19, 2004, on our consideration ofPANOLA HOUSING, LTD.’s internal control over financial reporting and our testsof its 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 the reportin considering the results of our audit

 

BOND & TOUSIGNANT

Monroe, Louisiana

March 19, 2004

 

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INDEPENDENT AUDITORS REPORT

 

To the Partners

JACKSONVILLE SQUARE HOUSING, LTD.

 

We have audited the accompanying balance sheet of JACKSONVILLE SOUAREHOUSING, LTD. RHS Project No. 49-037-943427104 as of December 31, 2003,and the related statement of operations, partners! equity (deficit) and cashflows for the year then ended. Then financial statements am the responsibilityof the partnership’s management Our responsibility is to express an opinion onthese financial statements based on our audit

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America 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 the******financial statementsare five 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 financial statements referred to above presentfairly, in all material respects, the financial position of JACKSONVILLE SQUAREHOUSING, as of December 31, 2003, and the results of its operations,changes in partners’ equity (deficit) and cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof 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 14 through 20 is presented for purposes of additional analysis and isnot a required put 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.

 

In accordance with *Government Auditing Standards, we*havealso issued our report dated March 19, 2004, on our consideration ofJACKSONVILLE SQUARE HOUSING, LTD.’s internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations,contracts, and grants. That report is an integral part of an audit performed inaccordance with *Government Auditing Standards*and should be read inconjunction with the report in considering the results of our audit.

 

BOND & TOUSIGNANT

Monroe, Louisiana

March 19, 2004

 

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IndependentAuditor’s Report

 

To the Partners

Bennetts Pointe LimitedPartnership

 

I have audited theaccompanying balance sheets of Bennetts Pointe Limited Partnership as ofDecember 31, 2002 and 2001, and the related statements of operations,partners’ deficit 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bennetts Pointe Limited Partnership as ofDecember 31, 2002 and 2001 the results of its operations, changes inpartners’ deficit, and its cash flows for the years then ended in conformitywith generally accepted accounting principles.

 

In accordance withGovernment Auditing Standards, I have also issued my report datedFebruary 15, 2003 on my consideration of Bennetts Pointe LimitedPartnership’s internal control over financial reporting and on my tests of itscompliance with certain provisions of laws and regulations.

 

Thomas C. Cunningham, CPAPC

Bristol, VA 24201

February 1, 2003

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Virginia AvenueAffordable Housing Limited Partnership

 

I have audited theaccompanying balance sheets of Virginia Avenue Affordable Housing LimitedPartnership as of December 31, 2002 and 2001, 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. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basis formy opinion.

 

In my opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Virginia Avenue Affordable Housing LimitedPartnership as of December 31, 2002 and 2001, and the results of itsoperations, the changes in partners’ equity and cash flows1for-the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

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.

 

Martin A. Starr, CPA

Bakersfield, CA  93309

January 21, 2003

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Lookout Ridge LimitedPartnership

 

We have audited theaccompanying balance sheet of Lookout Ridge Limited Partnership as ofDecember 31, 2002, 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lookout Ridge Limited Partnership as ofDecember 31, 2002, and the results of its operations, the changes inpartners’ equity and cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

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.

 

RANKIN, RANKIN &COMPANY

Ft. Wright, Kentucky

February 7, 2003

 

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INDEPENDENTAUDITOR’S REPORT

 

February 15, 2003

 

 

To the Partners of

Elk Tower ApartmentsLimited Partnership

 

We have audited theaccompanying balance sheets of Elk Tower Apartments Limited Partnership as ofDecember 31, 2002 and 2001, and the related statements of operations,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 auditsin 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 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Elk Tower Apartments Limited Partnership as ofDecember 31, 2002 and 2001, and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

Our audits were made forthe purpose 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 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.

 

Kenneth e. Loy, CPA

Alton, IL

February 15, 2003

 

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INDEPENDENTAUDITORS’ 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, 2002, and the related statementsof operations, changes in 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Kimbark 1200 Associates, LimitedPartnership FHA Project No. 101-98011, as of December 31, 2002, and theresults of its operations and the changes in its partners’ equity and its cashflows for the year then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance withGovernment Auditing Standards, we have also issued our reports datedFebruary 10, 2003 on our consideration of Kimbark 1200 Associates, LimitedPartnership internal control and on our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. Those reports are anintegral part of the audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

We conducted our audit toform an opinion on the basic financial statements of Kimbark 1200 Associates,Limited Partnership taken as a whole. The accompanying supplemental information(shown on pages thirteen through fifteen) is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements of Kimbark 1200 Associates, Limited Partnership. 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.

 

Z. A. Zudyk

Denver, CO

February 10, 2003

 

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IndependentAuditors’ Report

 

To the Partners

Barlee Properties LimitedPartnership

Barling, Arkansas

 

We have audited theaccompanying balance sheets of Barlee Properties, An Arkansas LimitedPartnership (the Partnership) as of December 31, 2002 and 2001, and therelated statements of operations, changes in partners’ capital 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Barlee Properties, An Arkansas LimitedPartnership, as of December 31, 2002, an 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.

 

Lawrence, Schluterman& Schwartz

Fort Smith, Arkansas

February 28, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners of

Colonna RedevelopmentCompany L.P.:

 

We have audited theaccompanying balance sheet of Colonna Redevelopment Company, L.P (the “Partnership”)as of December 31, 2002, and the related statements of operations, cashflows and partners’ equity 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. Thefinancial statements of Colonna Redevelopment Company L.P. as ofDecember 31, 2001, were audited by other auditors whose report dated May13, 2002 expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Colonna Redevelopment Company, L.P. as ofDecember 31, 2002, 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.

 

Our audit was made forthe purpose of forming an opinion on the financial statements taken as a whole.The accompanying supplemental schedule is presented for purposes ofadditional analysis and is not a required part of the financial statements. Theinformation in this schedule 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.

 

Callaghan Nawrocki LLP

Melville NY

February 13, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

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, RHS Project No.:48-038-621467876, as of December 31, 2002 and 2001, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards, issued by the Comptroller Generalof the United States. 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 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, thefinancial statements referred to above present fairly, in all materialrespects, 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, 2002 and 2001, 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 accordance withGovernment Auditing Standards, we have also issued a report datedJanuary 23, 2003 on our consideration of Brownsville Associates, Limited’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts, and grants.

 

Our audits were made forthe purpose 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 audit procedures appliedin the audit of the basic financial statements and, in our opinion, is fairlystated in all material r9pects in relation to the basic financial statementstaken as a whole.

 

York, Dillingham &Company, P.L.L.C.

Columbia, Tennessee

January 23, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Century East ApartmentsIV Limited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Century East Apartments IV Limited Partnership,as of December 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Century East Apartments IV Limited Partnershipas of December 31, 2002 and 2001 and the results of its operations, thechanges in partners’ equity, and its cash flows for the years then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 24, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Century East Apartments VLimited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Century East Apartments V Limited Partnership,as of December 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Century East Apartments V LimitedPartnership as of December 31, 2002 and 2001 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 20, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Lake Apartments I LimitedPartnership

Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Lake Apartments I Limited Partnership, as ofDecember 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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, 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lake Apartments I Limited Partnership as ofDecember 31, 2002 and 2001 and the results of its operations, the changesin partners’ equity, and its cash flows for the years then ended, in conformitywith accounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 20, 2003

 

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**INDEPENDENTAUDITORS REPORT**

 

To the Partners

Los Lunas Apartments Limited Partnership dba Hillridge Apartments

Los Lunas, New Mexico

 

We have audited the accompanying balance sheet of Los Lunas ApartmentsLimited Partnership d/b/a Hillridge Apartments as of December 31, 2002,and the related statements of operations, partners’ equity, 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 audit.

 

We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we planand perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatements. 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 statements presentation. We believe that our audit provides areasonable basis for our opinion.

 

In our opinion the financial statements referred to above presentfairly, in all material respects, the financial position of Los LunasApartments Limited Partnership dba Hillridge Apartments as of December 31,2002, and the results of its operations and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

PALMER & CO., P.A.

Albuqueque, NM

April 25, 2003

 

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IndependentAuditors’ Report

 

To the Partners

Pahrump Valley Investors

A Wyoming LimitedPartnership

Pahrump, Nevada

 

We have audited theaccompanying balance sheet of Pahrump Valley Investors, A Wyoming LimitedPartnership, USDA, Rural Development Project Number 33-019-680204949, as ofDecember 31, 2002, 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. The financial statements of Pahrump Valley Investors as ofDecember 31, 2002, were audited by other auditors whose report, datedMarch 11, 2002 expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Pahrump Valley Investors, as ofDecember 31, 2002, 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.

 

In accordance withGovernment Auditing Standards, we have also issued a report datedJanuary 21, 2003 on our consideration of Pahrump Valley Investors’internal control structure and a report dated January 21, 2003 on itscompliance with laws and regulations. Those reports are an integral part of anaudit performed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of our audit.

 

Our audit was conductedfor the purpose of forming an opinion on the basic financial statements takenas a whole. The accompanying supplemental and other information is presentedfor purposes of additional analysis and is not a required part of the financialstatements of Pahrump, Valley Investors. Such information has been subjected toauditing procedures applied in our audit of the financial statements and, inour opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

SJ Gallina & Co., LLP

Sacramento, CA

January 21, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Stanton Associates,Limited

 

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, 2002 and 2001, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards, issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Stanton Associates, Limited (a Tennesseelimited partnership) d/b/a Stanton Village Apartments, RHS Project No.:48-038-621542356, as of December 31, 2002 and 2001, 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 accordance withGovernment Auditing Standards, we have also issued a report datedJanuary 25, 2003 on our consideration of Stanton Associates, Limited’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts, and grants.

 

Our audits were made forthe purpose 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 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.

 

York, Dillingham &Co., PLLC

Columbia, Tennessee

January 25, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Century East ApartmentsII Limited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Century East Apartments 11 Limited Partnership,as of December 31, 2002 and 2001 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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Century East Apartments 11 LimitedPartnership as of December 31, 2002 and 2001 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 31, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Ethel Housing, L.P.

Ethel, Mississippi

 

We have audited theaccompanying balance sheets of Ethel Housing, L.P., RD Case No.28-0040640823417 as of December 31, 2002 and 2001, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained inGovernment Auditing 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Ethel Housing, L.P., as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordance withGovernment Auditing Standards and the Audit Program issued by the United StatesDepartment of Agriculture, Rural Development, we have also issued a reportdated February 21, 2003, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audits were made forthe purpose of forming an opinion on the financial statements taken as a whole.The supporting data included on pages 12 through 19 are presented for purposesof additional analysis and are not a required part of the financial statementsof Ethel 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.

 

Corkern, Minter andChisolm, P.A.

Jackson, Mississippi

June 23, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the partners

Hurricane Hills I LC

 

I have audited theaccompanying balance sheets of Hurricane Hills LC as of December 31, 2002,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 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 includesexamination, on a test basis, evidence supporting the amounts and disclosuresin the 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 provided a reasonable basis for our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Hurricane Hills I LC as ofDecember 31, 2002, 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:    |   | The Partners                              |
|--------|--------|-------------------------------------------|
|   |   | Main Everett Housing  Limited Partnership |

 

We have audited theaccompanying balance sheets of Main Everett Housing Limited Partnership as ofDecember 31, 2002 and 2001, 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 audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the Unites States ofAmerica. 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 presentatl6n. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Main Everett Housing Limited Partnership asof December 31, 2002 and 2001, and the results of its operations, changesin partners’ equity, and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose 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 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.

 

Tobin & Company

Larchmont, NY

January 24, 2003

 

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INDEPENDENTAUDITOR’S REPORT

 
| To:    |   | The Partners                         |
|--------|--------|--------------------------------------|
|   |   | Osborne Housing Limited  Partnership |

 

We have audited theaccompanying balance sheets of Osborne Housing Limited Partnership as ofDecember 31, 2002 and 2001, 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 conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Osborne Housing Limited Partnership as ofDecember 31, 2002 and 2001, 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 audits were made forthe purpose 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 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.

 

Tobin & Company

Certified PublicAccountants, PC

January 24, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Shannon Housing, L.P.

Shannon, Mississippi

 

We have audited theaccompanying balance sheets of Shannon Housing, L.P., RD Case No. 28-041064835658, as of December 31, 2002 and 2001, 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 auditsin 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Shannon Housing, L.P., as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting 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 datedMarch 15, 2003, on its compliance with specific requirements applicable tomajor RD programs and nonmajor RD program transactions.

 

Our audits were made forthe purpose of forming an opinion on the financial statements taken as a whole.The supporting data included on pages 12 through 19 are presented for purposesof additional analysis and are not a required part of the financial statementsof Shannon 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.

 

Corkern, Minter &Chisolm, LP

Jackson, MS

March 15, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

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, 2002, and 2001, 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 audit inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment 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 included examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso included 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of West Point Housing, L.P., as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordance withGovernment Auditing Standards and the Audit Program issued by the United StatesDepartment of Agriculture, Rural Development, we have also issued a reportdated February 25, 2003, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audits were made forthe purpose of forming an opinion on the financial statements taken as a whole.The supporting data included on pages 12 through 19 are presented for purposesof additional analysis and are not a required part of the financial statementsof West Point 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.

 

Corkern, Minter andChisolm, P.A.

Jackson, Mississippi

June 23, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Calgory Apartments ILimited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Calgory Apartments I Limited Partnership, as ofDecember 31, 2002 and 2001 and the related statements of operations,partners’ equity 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Calgory Apartments I Limited Partnership asof December 31, 2002 and 2001 and the results of its operations, thechanges in partners’ equity, and its cash flows for the years then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 29, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Calgory Apartments IILimited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Calgory Apartments II Limited Partnership, as ofDecember 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Calgory Apartments II Limited Partnershipas of December 31, 2002 and 2001 and the results of its operations, thechanges in partners’ equity, and its cash flows for the years then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 is presented for purposes ofadditional analysis and is not a required part of the basic financial statements.Such information has been subjected to the auditing procedures applied in theaudit 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 31, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Calgory Apartments IIILimited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Calgory Apartments III Limited Partnership, asof December 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all material respectsthe financial position of Calgory III Limited Partnership as ofDecember 31, 2002 and 2001 and the results of its operations, the changesin partners’ equity, and its cash flows for the years, then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 31, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Country Edge Apartments ILimited Partnership

Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Country Edge Apartments I Limited Partnership,as of December 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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, 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Country Edge Apartments I LimitedPartnership as December 31, 2002 and 2001 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.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

February 4, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

East Park Apartments IILimited Partnership

Dilworth, Minnesota

 

We have audited theaccompanying balance sheets of East Park Apartments II Limited Partnership, asof December 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards 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 audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of East Park Apartments II Limited Partnershipas of December 31, 2002 and 2001 and the results of its operations, thechanges in partners’ equity, and its cash flows for the years then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

February 5, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Grandview LimitedPartnership Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Grandview Apartments Limited Partners as ofDecember 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Grandview Limited Partnership, as ofDecember, 31, 2002 and 2001 and the results of operations, changes in partners’equity and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

February 4, 2003

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Grayson Manor LimitedPartnership

 

We have audited theaccompanying balance sheet of Grayson Manor Limited Partnership as ofDecember 31, 2002, and the related statements of operations, and cashflows and changes in owners’ 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 audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States andGovernment Auditing Standards issued by the Comptroller General of the UnitedStates, and the U.S. Department of Agriculture, Farmers Home AdministrationAudit Program, Those standards 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Grayson Manor Limited Partnership as ofDecember 31, 2002, and the results of its operations, changes in partners’equity, and its cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States.

 

In accordance withGovernment Auditing Standards, we have also issued our report datedFebruary 7, 2003 on our consideration of Grayson Manor LimitedPartnership’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws and regulations.

 

Dooley & VicarsCertified Public Accountants, LLP

Richmond, VA

February 7, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Lake Apartments IVLimited Partnership

Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Lake Apartments IV Limited Partnership, as ofDecember 31, 2002 and 2001 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 conducted our auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lake Apartments IV Limited Partnership as ofDecember 31, 2002 and 2001 and the results of its operations, changes inpartners’ equity, and its cash flows for the years then ended, in conformitywith accounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 21, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Lake Apartments V LimitedPartnership

Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Lake Apartments V Limited Partnership, as ofDecember 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lake Apartments V Limited Partnership as ofDecember 31, 2002 and 2001 and the results of its operations, the changesin partners’ equity, and its cash flows for the years then ended, in conformitywith accounting principles generally accepted in the United States of America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 22, 2003

 

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IndependentAuditor’s Report

 

To the Partners

Powell Valley LimitedPartnership

 

I have audited theaccompanying balance sheets of Powell Valley Limited Partnership as ofDecember 31, 2002 and 2001, 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 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 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. I believe thatmy audits provide a reasonable basis for my opinion.

 

In my opinion, thefinancial statements referred to above present fairly, all material respects,the financial position of Powell Valley Limited Partnership as ofDecember 31, 2002 and 2001, 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 accordance withGovernment Auditing Standards, I have also issued my report datedFebruary 15, 2003 on my consideration of Powell Valley LimitedPartnership’s internal control over financial reporting and on my tests of itscompliance with certain provisions of laws and regulations.

 

Thomas C. Cunningham, CPAPC

Bristol, VA

February 15, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Angelou Associates, L.P.

New York, New York

 

We have audited theaccompanying balance sheet of Angelou Associates, L.P. (a New York State limitedpartnership) as of December 31, 2002 and 2001, and the related statementsof operations, cash flows, and partners’ capital, and the supplementaryinformation included for the years then ended. These financial statements arethe responsibility of the Company’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 in the United States ofAmerica. 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 audit provides a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Angelou Associates, L.P. as ofDecember 31, 2002 and 2001, 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 audit was made forthe purpose 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.

 

Kahn Boyd Levychin,

Certified PublicAccountants

New York, NY

February 20, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners of CRHousing Associates, L.P.

 

I have audited theaccompanying balance sheets of CR Housing Associates, L.P. (the “Partnership”)as of December 31, 2002 and 2001, 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 inaccordance with generally accepted auditing standards in the United States ofAmerica. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of CR Housing Associates, L.P. as ofDecember 31, 2002 and 2001, and the results of it operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples in the United States of America.

 

My audits were made forthe purpose 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 statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

Jose R. Barreras, CPA

Santurce, PR

January 31, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Lake Apartments II LimitedPartnership

Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Lake Apartments II Limited Partnership, as ofDecember 31, 2002 and 2001 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 auditsin accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we 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. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lake Apartments 11 Limited Partnership asof December 31, 2002 and 2001 and the results of its operations, thechanges in partners’ equity, and its cash flows for the years then ended, inconformity with accounting principles generally accepted in the United Statesof America.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 11 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.

 

Ludvigson, Braun &Co.

Valley City, North Dakota

January 20, 2003

 

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INDEPENDENTAUDITORS’REPORT

 

To the Partners

Terraceview LimitedPartnership

 

We have audited theaccompanying balance sheet of Terraceview Limited Partnership as ofDecember 31, 2002 and 2001, and the related statements or operations;changes in 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 these financialstatements based on our audit.

 

We conducted our auditin. 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 examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and the 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Terraceview Limited Partnership as ofDecember 31, 2002 and 2001 and the results of its operations, changes inpartners’ equity (deficit) and cash flows for the years 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 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.

 

Stangl & Jaskowiak,Ltd.

Sauk Rapids, MN

April 14, 2002

 

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INDEPENDENTAUDITORS’REPORT

 

The Partners

Collins Housing, L.P.

Collins, Mississippi

 

We have audited theaccompanying balance sheets of Collins Housing, L.P., RD Case No.28-0160640864674, as of December 31, 2002 and 2001, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained inGovernment 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 included examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso included 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 our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Collins Housing, L.P. as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordance withGovernment Auditing Standards and the Audit Program issued by the United StatesDepartment of Agriculture, Rural Development, we have also issued a reportdated February 20, 2003, on its compliance with specific requirementsapplicable to major RD programs and nonmajor RD program transactions.

 

Our audits were made forthe purpose of forming an opinion on the financial statements taken as a whole.The supporting data included on pages 12 through 19 are presented for purposesof additional analysis and are not a required part of the financial statementsof Collins 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.

 

Corkern, Minter andChisolm, P.A.

Jackson, MA

February 20, 2003

 

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IndependentAuditors’ Report

 

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, 2002 and 2001,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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards, issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Bowie Apartments, Ltd., RD Project No.50-069-0752627345-01-7, as of December 31, 2002 and 2001, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended in conformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 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 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 withGovernment Auditing Standards, we have also issued a report datedJanuary 24, 2003 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 Auditing Standardsand should be read in conjunction with this report in considering the resultsof our audit.

 

Moore, Camp, Phillips& Co., L.L.P.

Wichita Falls, TX

January 24, 2003

 

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IndependentAuditors’ Report

 

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, 2002 and 2001, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standard, issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all material respects,the financial position of Graham Apartments, Ltd., RD Project No.51-52-752663159-01-1, as of December 31, 2002 and 2001, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended in conformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose 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 auditprocedures 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 withGovernment Auditing Standard, we have also issued a report datedFebruary 11, 2003 on our consideration of Graham Apartments, Ltd’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

Moore, Camp, Phillips& Co., L.L.P.

Wichita Falls, Texas

February 11, 2003

 

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IndependentAuditors’ Report

 

To the Partners

Nocona Apartments, Ltd.

 

We have audited theaccompanying balance sheets of Nocona Apartment, Ltd. (a limited partnership),RD Project No: 50-069-0752685663-02-2 as of December 31, 2002 and 2001,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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards, issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Nocona Apartments, Ltd. RD Project No.:50-069-0752685663-02-2 as of December 31, 2002 and 2001, and the relatedstatements of operations, partners’ equity and cash flows for the years thenended in conformity with U.S. generally accepted accounting principles.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on Page 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 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 withGovernment Auditing Standards, we have also issued a report datedJanuary 30, 2003 on our consideration of Nocona Apartments, Ltd.’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering theresults of our audit.

 

Moore, Camp, Phillips& Co., L.L.P.

Wichita Falls, TX

January 30, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Canton Housing One, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Canton Housing One, L.P., a Mississippi limitedpartnership, Rural Development Agency U. S. Department of Agriculture (“RD”)Project No. 28- 045-0640886062 01-8, as of December 31, 2002 and 2001, andthe related statements of income (loss), partners’ capital, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards issued by the Comptroller Generalof the United States. 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 audits provide a reasonable basis for ouropinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Canton Housing One, L.P., RD Project No.28-045-0640886062 01-8, as of December 31, 2002 and 2001, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 5, 2003,on our consideration of the Partnership’s internal control and a report datedFebruary 5, 2003, on its compliance with specific requirements applicableto major RD programs.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 14 through 21is 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 Il- and the information in Part IVincluded on pages 14 through 18 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.

 

Eubanks & Betts, PLLC

Jackson, MA

February 5, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Canton Housing Two, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheet of Canton Housing Two, L.P., a Mississippi limitedpartnership, Rural Development Agency, U. S. Department of Agriculture (“RD”)Project No. 28-045-0640886061 01-5, as of December 31, 2002 and 2001, andthe related statements of income (loss), partners’ capital, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Canton Housing Two, L.P., RD Project No.28-045-0640886061 01-5, as of December 31, 2002 and 2001, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance withGovernment Auditing Standards, we have also issued a report datedFebruary 5, 2003, on our consideration of the Partnership’s internalcontrol and a report dated February 5, 2003, on its compliance withspecific requirements applicable to major Rural Development programs.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 13 through 20is 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 IVincluded on pages 13 through 18, 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.

 

Eubanks & Betts, PLLC

Jackson, MA

February 5, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Canton Housing Three,L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Canton Housing Three, L.P., a Mississippilimited partnership, Rural Development Agency, U. S. Department of Agriculture(“RD”) Project No. 28-045- 0640886063 04-2, as of December 31, 2002 and2001, and the related statements of income (loss), 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 audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards 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 audits provide a reasonable basis for ouropinion.

 

In our opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Canton Housing Three, L.P., RD Project No.28-045-0640886063 04-2, as of December 31, 2002 and 2001, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 5, 2003,on our consideration of the Partnership’s internal control and a report datedFebruary 5, 2003, on its compliance with specific requirements applicableto major RD programs.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 13 through 20is 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 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.

 

Eubanks & Betts, PLLC

Jackson, MA

February 5, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

The Partners

Canton Housing Four, L.P.

Jackson, Mississippi

 

We have audited theaccompanying balance sheets of Canton Housing Four, L.P., a Mississippi limitedpartnership, Rural Development Agency, U. S. Department of Agriculture (“RD”)Project No. 28-045-0640886064 02-0, as of December 31, 2002 and 2001, andthe related statements of income (loss), partners’ capital, 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 auditsin accordance with auditing standards generally accepted in the United Statesof America and Government Auditing Standards issued by the Comptroller Generalof the United States. 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Canton Housing Four, L.P., RD Project No.28-045-0640886064-02-0, as of December 31, 2002 and 2001, and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance withGovernment Auditing Standards, we have also issued a report datedFebruary 5, 2003, on our consideration of the Partnership’s internalcontrol and a report dated February 5, 2003, on its compliance withspecific requirements applicable to major RD programs.

 

Our audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying financial information included on pages 13 through 20is presented for purposes of additional analysis and is not a required part of thebasic financial 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 18, 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.

 

Eubanks & Betts, PLLC

Jackson, MA

February 5, 2003

 

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IndependentAuditor’s Report

 

To the Partners of

Eagles Ridge Terrace, L.P.

Decatur, Texas

 

I have audited theaccompanying balance sheets of Eagles Ridge Terrace, L P. as ofDecember 31, 2002 and 2001, and the related statements of operations,partners’ capital 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Eagles Ridge Terrace, L. P. as ofDecember 31, 2002 and 2001 and the results of its operations, changes inpartners’ capital and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

My audits were made forthe purpose 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.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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IndependentAuditor’s Report

 

To the Partners of

Henderson Terrace, L. P.

Bridgeport, Texas

 

I have audited theaccompanying balance sheets of Henderson Terrace, L. P. as of December 31,2002 and 2001 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Henderson Terrace, L. P. as ofDecember 31, 2002 and 2001 and the results of its operations, changes inpartners’ capital and cash flows for the years then ended in conformity withgenerally accepted accounting principles,

 

My audits were made forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages l- 16 and l- 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.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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INDEPENDENTAUDITORS’ REPORT

 

To the partners

Hurricane Hills II LC

 

I have audited theaccompanying balance sheets of Hurricane Hills II LC as of December 31,2002, and the related partners’ equity for the year 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.

 

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 includesexamination, on a test basis, evidence supporting the amounts and disclosuresin the 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 provided a reasonable basis for our opinion.

 

In my opinion, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Hurricane Hills II LC as ofDecember 31, 2002, and the results of its operations, changes in Partners,equity and cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

Morris Accounting Co.,Inc.

Cedar City, VT

 

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IndependentAuditor’s Report

 

To the Partners of

Lakeview Little Elm, L.P.

Little Elm, Texas

 

I have audited theaccompanying balance sheets of Lakeview Little Elm, L. P. as ofDecember 31, 2002 and 2001, and the related statements of operations,partners’ capital 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Lakeview Little Elm, L. P. as ofDecember 31, 2002 and 2001 and the results of its operations, changes inpartners’ capital and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

My audits were made forthe purpose 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.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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IndependentAuditor’s Report

 

To the Partners of

Mesquite Trails, L. P.

Jacksboro, Texas

 

I have audited theaccompanying balance sheets of Mesquite Trails, L.P. as of December 31,2002 and 2001, 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 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 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 Mesquite Trails, L, P. as of December 31, 2002 and2001 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 forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages l-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.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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Independent Auditor’sReport

 

To the Partners of

Pilot Point Apartments,L. P.

Pilot Point, Texas

 

I have audited theaccompanying balance sheets of Pilot Point Apartments, L. P. as ofDecember 31, 2002 and 2001, and the related statements of operations,partners’ capital 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 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, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Pilot Point Apartments, L. P. as ofDecember 31, 2002 and 2001 and the results of its operations, changes inpartners’ capital and cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

My audits were made forthe purpose 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.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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Independent Auditor’sReport

 

To the Partners of

Seagraves Apartments, L.P.

Ferris, Texas

 

I have audited the accompanying balance sheets ofSeagraves Apartments, L.P. as of December 31, 2002 and 2001, and theaccompanying statements of operations, partners’ capital and cash flows for theyears then ended. These statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on the financialstatements based on my audits.

 

I conducted my audits in accordance with generallyaccepted auditing standards. Those standards require that I 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. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statements referred toabove present fairly, in all material respects, the financial position ofSeagraves Apartments, L,P. as of December 31, 2002 and 2001 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 of forming anopinion on the basic financial statements taken as a whole. The supplementalinformation on pages 1-16 and 1-17 is presented for purposes of additionalanalysis and is not a required part of basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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Independent Auditor’sReport

 

To the Partners of

Granada Rose, L.P.

Edna, Texas

 

I have audited the accompanying balance sheets ofGranada Rose, L.P. as of December 31 2002 and 2001, and the accompanyingstatements of operations, partners’ capital and cash flows for the years thenended. These statements are the responsibility of the partnership’s management.My responsibility is to express an opinion on the financial statements based onmy audits,

 

I conducted my audits in accordance with generallyaccepted auditing standards. Those standards require that I 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. I believe that my audits provide a reasonable basis formy opinion.

 

In my opinion, the financial statements referred toabove present fairly, in all material respects, the financial position ofGranada Rose, L.P. as of December 31, 2002 and 2001 and the results of itsoperations, 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 of forming anopinion on the basic financial statements taken as a whole. The supplementalinformation on pages 1-16 and 1-17 is presented for purposes of additionalanalysis and is not a required part of 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.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners

Parkside Plaza Associates, L. P.

New York, New York

 

We have audited the accompanying balance sheets ofParkside Plaza Associates, L.P. (a New York State limited partnership) as ofDecember 31, 2002 and 2001, and the related statements of operations, cashflows, and partners’ capital, and the supplementary information included 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 audit.

 

We conducted our audit in accordance with generallyaccepted auditing standards in the United States of America. 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 toabove present fairly, in all material respects, the financial position ofParkside Plaza Associates, L.P. as of December 31, 2002 and 2001 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.

 

Our audit was made for the purpose of forming anopinion 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 materialrespects in relation to the basic financial statements taken as a whole.

 

Kahn Boyd Levychin,

New York, NY

February 8, 2003

 

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INDEPENDENT AUDITOR’SREPORT

 

To the Partners

Aloha Housing Limited Partnership

 

We have audited the accompanying Balance Sheets ofAloha Housing Limited Partnership (a limited partnership), as of December 31,2002 and 2001 and the related statements 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 conducted our audits in accordance with generallyaccepted auditing standards, and with Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that weplan and perform our 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 toabove present fairly, in all material respects, the financial position of AlohaHousing Limited Partnership as of December 31, 2002 and 2001, and the resultsof its operations and its cash flows for the years then ended, in conformitywith generally accepted accounting principles.

 

Our audits were made for the purpose of forming anopinion on the basic financial statements taken as a whole. The accompanyingschedules of supplementary information required by the Oregon Housing andCommunity Services Department are presented for purposes of additional analysisand are not a required part of the basic financial statements. Such informationhas been subjected to the procedures applied in our 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.

 

Henick & Ylvisaker

Portland, Oregon

February 20, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners of

Edna Vanderbilt, L.P.

Edna, Texas

 

I have audited the accompanying balance sheet of EdnaVanderbilt, L.P. as of December 31, 2002 and 2001, and the accompanyingstatements of operations, partners’ capital and cash flows for the years thenended. These statements are the responsibility of the partnership’s management.My responsibility is to express an opinion on the financial statements based onmy audits.

 

I conducted my audits in accordance with generallyaccepted auditing standards. Those standards require that I 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. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financial statements referred toabove present fairly, in all material respects, the financial position of EdnaVanderbilt L.P. as of December 31, 2002 and 2001 and the results of itsoperations, changes in partners’ capital and cash flows for the years thenended in with generally accepted accounting principles.

 

My audits were made for the purpose of forming anopinion on the basic financial statements taken as a whole. The supplementalinformation on pages 1-16 and 1-17 is presented for purposes of additionalanalysis and is not a required part of basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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Independent Auditor’sReport

 

To the Partners of

Azle Fountainhead, L.P.

Azle, Texas

 

I have audited the accompanying balance sheets ofDecember 31, 2002 and 2001, and the related statement of operations, partners’capital and cash flows for years 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 audits.

 

I conducted my audits in accordance with generallyaccepted auditing standards. Those standards require that I 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.

 

I believe that my audits provide a reasonable basisfor my opinion.

 

In my opinion, the financial statements referred toabove present fairly, in all material respects, the financial position of AzleFountainhead, L.P. as of December 31, 2002 and 2001 and the results of itsoperations, 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 of forming an opinionon the basic financial statements taken as a whole. The supplementalinformation on pages I-16 and I-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 auditof the basic financial statements and, in my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Gwen Ward, P.C.

Fort Worth, TX

March 11, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

General Partner

Cedar Grove Apartments Phase I, Ltd.

Shepherdsville, Kentucky 40165

 

We have audited the accompanying balance sheets ofCedar Grove Apartments Phase I, Ltd., (a Kentucky limited partnership, as ofDecember 31, 2002 and 2001, 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 with generallyaccepted auditing standards 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 ouraudits provides, reasonable basis for our opinion.

 

In accordance with Government Auditing Standards wehave also issued our report dated February 17, 2003, on our consideration ofCedar Grove Apartments Phase 1, Ltd. internal control, and reports (datedFebruary 17, 2003 on its compliance with specific requirements applicable toRural Housing Service and to Fair Housing and Non-discrimination. Those reportsare 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 audits were conducted for the purpose of formingan opinion on the basic financial statements taken as a whole. The accompanyingsupplementary information on pages 11-18 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements of Cedar Grove Apartments Phase I, Ltd. 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.

 

Fister, Routh & Freeman PSC

Louisville, KY

February 17, 2003

 

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Independent Auditors’Report

 

To the Partners

Dorchester Court LDHA, Limited Partnership

 

We have audited the accompanying balance sheet ofDorchester Court LDHA, Limited Partnership, as of December 31, 2002. Thisfinancial statement is the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on this financial statement based onour audit.

 

We conducted our audit in accordance with auditingstandards generally accepted in the United States of America. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the 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 audit of the balancesheet provides a reasonable basis for our opinion.

 

In our opinion, the balance sheet referred to abovepresents fairly, in all material respects, the financial position of DorchesterCourt LDHA Limited Partnership as of December 31, 2002, in conformity withaccounting principles generally accepted in United States of America.

 

J. L. Hoffman & Associates, P.A.

Coral Gables,F

April 17, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Members of

Strawberry Lane, LLC

 

We have audited the accompanying balance sheet ofStrawberry Lane, LLC as, of December 31, 2002, and the related statements ofoperations, changes in members’ capital and cash flows for the year then ended.These financial statements are the responsibility of the management ofStrawberry Lane, LLC. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conducted our audit in accordance with U.S.generally 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 as evaluatingthe overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred toabove present fairly, in all material respects, the financial position of StrawberryLane, LLC as of December 31, 2002, and the results of its operations and itscash flows for the year then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with Government Auditing Standards andthe Consolidated Audit Guide for Audits of HUD Programs issued by the U.S.Department of Housing and Urban Development, we have also issued a report datedFebruary 12, 2003, on our consideration of the entity’s internal control andreport dated February 12, 2003, on its compliance with specific requirementsapplicable to its major HUD program and specific requirements applicable toFair Housing and Non-Discrimination.

 

Our audit was conducted for the purpose of forming anopinion on the basic financial statements taken as a whole. The supplementalinformation is presented for the purpose of additional analysis and is not arequired part of the basic financial statements of Strawberry Lane, LLC.  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.

 

Davie Kaplan Chapman Braverman, P.C.

Rochester, NY

February 12, 2003

 

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Independent Auditors’Report

 

To the Partners

Dorchester Court LDHA, Limited Partnership

 

We have audited the accompanying balance sheet ofDorchester Court LDHA, Limited Partnership, as of December 31, 2002. Thisfinancial statement is the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on this financial statement based onour audit.

 

We conducted our audit in accordance with auditingstandards generally accepted in the United States of America. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the 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 audit of the balancesheet provides a reasonable basis for our opinion.

 

In our opinion, the balance sheet referred to abovepresents fairly, in ail material respects, the financial position of DorchesterCourt LDHA Limited Partnership as of December 31, 2002, in conformity withaccounting principles generally accepted in the United States of America.

 

J. L. Hoffman & Associates, P.A.

Coral Gables,F

April 17, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners of

Henderson Fountainhead, L.P.

Seven Points, Texas

 

I have audited the accompanying balance sheet ofHenderson Fountainhead, L.P. as of December 31, 2002, and the accompanyingstatements of operations, partners’ capital and cash flows for the year thenended. These 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 with generallyaccepted auditing standards. Those standards require that I 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. I believe that my audit provides a reasonablebasis for my opinion.

 

In my opinion, the financial statements referred toabove present fairly, in all material respects, the financial position ofHenderson Fountainhead, L.P. as of December 31, 2002 and the results of itsoperations, changes in partners’ capital and cash flows for the year then endedin conformity with generally accepted accounting principles.

 

My audit was made for the purpose of forming anopinion on the basic financial statements taken as a whole. The supplementalinformation on pages 1-16 and 1-17 is presented for purposes of additionalanalysis and is not a required part of basic financial statements. Such informationhas been 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.

 

Gwen Ward, P.C.

Fort Worth, Texas

March 11, 2003

 

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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, 2001 and 2000,and the related statements of operations, partners’ 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 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, 2001 and2000, 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 February 15, 2002 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.

 

Thomas C. Cunninghan, CPA P.C.

Bristol, VA

February 15, 2002

 

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**INDEPENDENT AUDITOR’SREPORT**

 

To the Partners

Virginia Avenue AffordableHousing Limited Partnership

 

I have audited the accompanyingbalance sheets of Virginia Avenue Affordable Housing 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 audit.

 

I conducted my audit inaccordance with auditing standards generally accepted in the United States ofAmerica. 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, believe that my audit provides a reasonable basis formy 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, 2001 and 2000, and the results of its operations, the changesin partners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

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.

 

MARTIN A. STARR

Bakersfield, CA

February 4, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Clarksville Estates

DBA Clarksville Estates

Clarkton, MO 63837

 

We have audited the accompanying balancesheet of Clarksville Estates (a limited partnership) DBA Clarksville Estates asof December 31, 2001 and the related statements of income, cash flow, andpartners’ 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 audit.

 

We conducted our audit in accordance withauditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in 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 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 Clarksville Estates (a limited partnership) DBA Clarksville Estatesas of December 31, 2001 and the results of its operations and its cash flow forthe year then ended in conformity with accounting principles generally acceptedin the United States of America.

 

Our audit was performed for the purpose offorming an opinion on the basic financial statements of Clarksville Estatestaken as a whole. The supplementary data included on pages 12-13 is notnecessary for a fair presentation of the financial statements, but is presentedfor purposes of additional analysis. This supplementary data has been subjectedto the same tests and other procedures applied in the audits of the statementsmentioned above, and in our opinion, is fairly presented in all materialrespects in relation to the financial statements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued our report dated February 1, 2002, on ourconsideration of Clarksville Estates internal control over financial reportingand our tests of its compliance with certain provisions of laws andregulations. The report is an integral part of an audit performed in accordancewith Government Auditing Standards and should be read in conjunctionwith this report in considering the results of our audit.

 

Coffman, Eads, Cupps, Summers & DuncanCPA’s PC

Poplar Bluff, Missouri

February 1, 2002

 

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INDEPENDENT AUDITOR’S REPORT

 

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, 2001 and 2000, and the related statements ofoperations, 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 auditing standards generally accepted in the United States ofAmerica. 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 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 31,2001 and 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

Rochester, NY

January 31, 2002

 

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IndependentAuditors’ Report

 

To the partners of

East Douglas Apartments Limited Partnership(An Illinois Limited Partnership)

 

We have audited the accompanying balancesheets of East Douglas Apartments Limited (IHDA Development NumberHFI/HTF-354), as of December 31, 2001 and 2000, and the related statements ofoperations, cash flows and changes in partners’ equity 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 withauditing standards generally accepted in the United States of America, *GovernmentAuditing Standards,*issued by the Comptroller General of the UnitedStates and the Illinois Housing Development Authority’s Financial Reporting andAudit Guidelines for Mortgagors of Multifamily Hosing Developments. 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 financial statementsreferred to above present fairly, in all material respects, the financialposition of East Douglas Apartments Limited Partnership 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.

 

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 datedJanuary 29, 2002, on our consideration of the Partnership’s internal controls,compliance with specific requirements applicable to major IHDA-assistedprograms and specific requirements applicable to affirmative fair housing.

 

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.

 

Dauby O’Connor & Zaleski, LLC

Carmel, Indiana

January 29, 2002

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Evergreen Hills Associates,L.P.

 

We have audited theaccompanying balance sheet of Evergreen Hills Associates, L.P. (a limitedpartnership) as of December 31, 2001 and 2000, and the related statements ofoperations 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 conducted our audits inaccordance with auditing standards generally accepted in the United States ofAmerica. 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 our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Evergreen Hills Associates, L.P. as of December 31, 2001and 2000, 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.

 

SALMIN, CELONA, WEHRLE &FLAHERTY, LLP

Rochester, NY

February 8, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

FLORAL ACRES APARTMENTS 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.

 

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.

 

Pailet, Meunier & LeBlanc, LLP

Metairie, Louisiana

February 18, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

HARRISONBURG SENIORS 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 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 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.

 

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

 

Pailet, Meunier & LeBlanc, LLP

Metairie, Louisiana

January 29, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

SHADY LANE SENIORS 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 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 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.

 

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

 

Pailet, Meunier & LeBlanc, LLP

Metairie, Louisiana

February 18, 2002

 

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IndependentAuditors’ Report

 

To the Partners of

Better Homes for Havelock Limited Partnership

(A North Carolina Limited Partnership)

 

We have audited the accompanyingbalance sheets of Better Homes for Havelock Limited Partnership (a NorthCarolina Limited Partnership) 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 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 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 accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 24,2002, on our consideration of the Partnership’s internal controls and a reportdated January 24, 2001, on its compliance with laws and regulations.

 

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.

 

Martin A. Star

Certified Public Accountant

Carmel, Indiana

January 24, 2002

 

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**Independent Auditor’s Report**

 

To the Partners

Liveoak Village Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of Liveoak Village Limited Partnership (an Alabama limited partnership)as 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 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. 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 Liveoak Village Limited Partnership as of December 31, 2001 and2000, and the results of its operations and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company LLP

Greensboro, NC

January 31, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To****the Partners

Lookout Ridge Limited Partnership

 

We have audited the accompanying balancesheet of Lookout Ridge Limited Partnership as of December 31, 2001, and therelated statements of operations, partners’ equity (deficit) 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 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 Lookout Ridge Limited Partnership as of December 31, 2001, and theresults of its operations, the changes in partners’ equity and cash flows forthe year then ended 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 9 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 statement and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

Rankin, Rankin & Company

Ft. Wright, Kentucky

February 22, 2002

 

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IndependentAuditor’s Report

 

To the Partners

Pinedale II Limited Partnership

 

We have audited the accompanying balancesheets of*Pinedale II Limited Partnership*as of December 31, 2001 and 2000,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 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 audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition *ofPinedale II Limited Partnership,*as of December 31, 2001 and 2000,and the results of its operations, changes in partners’ equity, and cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary 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.

 

Stienessen Schlegel & Co.

Eau Claire, WI

January 11, 2002

 

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IndependentAuditor’s Report

 

To****the Partners

Pumphouse Crossing II Limited Partnership

 

We have audited the accompanying balancesheets of *PumphouseCrossing II Limited Partnership*as of December 31, 2001 and 2000,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 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 audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition *ofPumphouse Crossing II Limited Partnership,*as of December 31, 2001and 2000, and the results of its operations, changes in partners’ equity, andcash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary 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.

 

Stienesson Schlegel & Co.

Eau Claire, WI

January 15, 2002

 

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IndependentAuditor’s Report

 

To the Partners

Black River Run Limited Partnership

 

We have audited the accompanying balance sheets*of BlackRiver Run Limited Partnership*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 conducted our audits 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 audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition *ofBlack River Run Limited Partnership,*as of December 31, 2001 and2000, and the results of its operations, changes in partners’ equity, and cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary 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.

 

Stienessen Schlegel & Co.

Eau Claire, WI

January 11, 2002

 

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INDEPENDENTAUDITORS’ REPORT 

 

February 15,2002

 

To the Partners

Elk Tower Apartments 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 amounts anddisclosures 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.

 

Kenneth E. Loy & Company, P.C.

Alton, IL

February 15, 2002

 

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INDEPENDENT AUDITOR’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, 2001 and2000, 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 withauditing standards generally accepted in the United States of America and *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 our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Philadelphia Housing II, Limited Partnership as of December 31,2001 and 2000, and the results of its operations and its cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States of America.

 

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 materialrespects in relation to the basic financial statements taken as a whole.

 

Matthew Cutrer & Lindsay, P.A.

Ridgeland, MS

January 24, 2002

 

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Independent’sAuditor’s Report

 

To the Partner’s of

Roxbury Veterans Housing Limited Partnership

 

I have audited the accompany statement offinancial position of Roxbury Veterans Housing Limited Partnership( aMassachusetts Limited Partnership) as of December 31, 2001, 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. My responsibility is to express an opinion on thesefinancial statements based on my audit.

 

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 financialsstatements are free of material misstatement. An audit includes examining, on atest bash, evidence supporting the amounts and disclosures in the financialstatements. An audit 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 presents fairly, in all material respects, the financialposition of Roxbury Veterans Housing Limited Partnership as of December 31,2001, and the results of its operations, changes in partners’ equity, and cash flowsand cash flows for the year ended in conformity with accounting principlesgenerally accepted in the United States.

 

My 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 my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole. Thefinancial statements for the year ended June 30, 2000 were audited by otheraccountants, and they expressed an unqualified opinion on them in their reportdated June 15, 2001.

 

Lewis & Associates, CPA

Boston, MA

March 20, 2002

 

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INDEPENDENT AUDITOR’S REPORT

 

To the partners of

Swedesboro Housing Limited Partnership

443 Congress Street, 7th Floor

Portland, Maine 04101

 

We have auditedthe accompanying Balance sheet of SWEDESBORO HOUSING LIMITED PARTNERSHIP, as ofDecember 31, 2001 and the related Statements of Income and Partners’ Capitaland Statement of 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, Thefinancial statements of SWEDESBORO HOUSING LIMITED PARTNERSHIP as of December31, 2000 were audited by other auditors whose report dated January 9, 2001expressed 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.  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 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 SWEDESBORO HOUSING LIMITEDPARTNERSHIP 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 States of 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.

 

Ragone,Raible, Lacateria & Beppel

Haddonfield,New Jersey

April 29, 2002

 

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IndependentAuditors’ Report

 

To the Partners

Barlee Properties,

An Arkansas Limited Partnership

Barling, Arkansas

 

We have audited the accompanying balancesheets of Barlee Properties, An Arkansas Limited Partnership, as of December31, 2001 and 2000, and the related statements of operations, 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 conducted our audits 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 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 Barlee Properties, An Arkansas Limited Partnership, as of December31, 2001 and 2000, and the results of its operations and its cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States of America.

 

Lawrence, Schluterman & Schwartz, Ltd.

Fort Smith, Arkansas

February 28, 2002

 

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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, 2001 and 2000 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 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 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 Colonna Redevelopment Company L.P. as of December 31, 2001 and2000, and the results of its operations and its cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

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.

 

Margolin, Winer & Evens LLP

Garden City, NY

May 13, 2002

 

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INDEPENDENTAUDITOR’ S REPORT

 

To the Partners

Halls Ferry Apartments, L.P.

 

We have audited the accompanying balancesheets of Halls Ferry Apartments, L.P. as of December 31, 2001 and 2000 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 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.  Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financial,statements 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 reasonableoasis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Halls Ferry Apartments, L.P. as of December 31, 2001 and 2000, andthe results of its operations, changes in partners’ equity and cash flows forthe years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

Our 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 our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

Mechsner & Cp., L.L.C.

Springfield, Missouri

February 4, 2002

 

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**Independent Auditors’ Report**

 

Partners

Ithaca I Limited Partnership

Ithaca, Michigan

 

We have audited the accompanying balancesheets of Ithaca I Limited Partnership Rural Housing Service Project No.26-029-383113117 as of December 31, 2001 and 2000, 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. 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, 2001 and 2000, andthe results of its operations, changes in partner’s equity and its cash flowsfor the years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 19, 2002 on our consideration ofIthaca I Limited Partnership’s internal control over financial reporting andour tests of compliance with certain provisions of laws and regulations,contracts and grants. That 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 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.

 

Yeo & Yeo, P.C.

Lansing, MI

February 19, 2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners of

Kimbark 1200 Associates, Limited Partnership

Longmont, Colorado

 

We have audited the accompanying balancesheet of Kimbark 1200 Associates, Limited Partnership, FHA Project No.101-98011, as of December 31, 2001, and the related statement 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 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 Kimbark 1200 Associates, Limited Partnership FHA Project No.101-98011, as of December 31, 2001, 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 13, 2002 on ourconsideration of Kimbark 1200 Associates, Limited partnership, internalcontrols and reports dated February 13, 2002 on its compliance with specificrequirements applicable to major HUD programs and Fair Housing andNon-Discrimination.

 

Z. A. Zudyk

Denver, Colorado

February 13, 2002

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Lost Tree Limited Partnership

 

We have audited the accompanying balance sheets of Lost Tree LimitedPartnership as of December 31, 2001 and 2000, and the related statements 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 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 financial statements referred to above presentfairly, in all material respects, the financial position of Lost Tree 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 accounting principles generally accepted in theUnited 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 on pages 15and 16 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.

 

MECHSNER & CO., LLC

Springfield, Missouri

February 26, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

MATHIS APARTMENTS, 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 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 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.

 

Pailet, Meunier & LeBlanc, L.L.P.

Metairie, Louisiana

February 13, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****the Partners

ORANGE GROVE SENIORS 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 to expressan 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.

 

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.

 

Pailet, Meunier & LeBlanc, L.L.P.

Metairie, Louisiana

February 18, 2002

 

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**Independent Auditor’s Report**

 

To The Partners

Sacramento SRO Limited Partnership

A California Limited Partnership

710 West Ivy

San Diego, CA 92101

 

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 Accountancy Corporation

San Diego, CA

January 31, 2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

South Hills Apartments, 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 financial statementstaken as a whole. The supplemental information on page 14 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.

 

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

Omaha, Nebraska

January 18, 2002

 

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IndependentAuditors’ Report

 

To the Partners:

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.

 

Paulus & company

Hamburg, NY

January 29, 2002

 

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IndependentAuditors’ Report

 

To the Partners

Woodland Hills Properties,

A Limited Partnership

Barling, Arkansas

 

We have audited the accompanying balancesheets of Woodland Hills Properties, A Limited Partnership, as of December 31,2001 and 2000, and the related statements of operations, changes in 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. 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 financial statementsreferred to above present fairly, in all material respects, the financialposition of Woodland Hills Properties, A Limited Partnership, as of December31, 2001 and 2000, and the results of its operations and its cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States of America.

 

Lawrence, Schlutennan & Schwartz, Ltd.

Certified Public Accountants

Fort Smith, Arkansas

February 28, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To The Partners

Autumn Ridge Associates

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.

 

Young & Prickitt, P.C.

Roanoke, VA

February 14, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Brownsville Associates, Limited

 

We have audited the accompanying balancesheets of Brownsville Associates, Limited (a Tennessee limited partnership) d/b/aBrownsville Village Apartments, RHS Project No.: 48-038-621467876, 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 conducted our audits in accordance withauditing standards generally accepted in the United States of America and *Government AuditingStandards,*issued by the Comptroller General of the United States.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 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, 2001 and 2000, and the results of its operations, the changes inpartners’ equity and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 30, 2002 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.

 

York, Dillingham & Company, P.L.L.C.

Columbia, TN

January 30, 2002

 

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**Independent Auditors’ 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, 2001, 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 withauditing standards generally accepted in the United States of America and *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 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 financial statementsreferred to above present fairly, in all material respects, the financialposition of Centenary Housing Limited Partnership as of December 31, 2001, andthe results of its operations and its cash flows for the year then ended in conformitywith accounting principles generally accepted in the United States of America.

 

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 January16, 2002 on our consideration of Centenary Housing Limited Partnership’sinternal control and reports dated January 16, 2002 on its compliance withspecific requirements applicable to major HUD programs and specificrequirements applicable to Fair Housing and Non-Discrimination. Those reportsare 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 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.

 

Rubin, Brown Gornstein & Co., LLP

St. Louis, MO

January 16, 2002

 

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INDEPENDENTACCOUNTANTS’ 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 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 conducted our audit in accordance withauditing standards generally accepted in the United States of America and *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 audit provides a reasonable basisfor 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 31,2001 and 2000, and the results of its operations and its cash flows for theyears then ended, in conformity with accounting principles generally acceptedin the United States of America.

 

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.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 24, 2002 on our consideration of NewHilltop Apartments, A Limited Partnership’s internal control over financialreporting and on 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.

 

DuRant, Schraibman & Lindsay

Columbia, SC

January 24, 2002

 

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IndependentAuditors’ Report

 

Partners

Shadowcreek Apartments

Elko, Nevada

 

We have audited the accompanying balancesheets of Shadowcreek Apartments (the Project), Rural Development Case No.33-002-0880283493, 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 conducted our audits in accordance withauditing standards generally accepted in the United States of America and 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.

 

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 the UnitedStates of America.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 10 through 12 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, 2001. 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 23, 2002, 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 Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

Child, Sullivan & Company

Kaysville, Utah

January 23, 2002

 

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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, 2001 and 2000, 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 withauditing standards generally accepted in the United States of America and *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.

 

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/a Stanton Village Apartments, RHS Project No.: 48-038-621542356, as ofDecember 31, 2001 and 2000, and the results of its operations, the changes inpartners’ equity and its cash flows for the years then ended, in conformitywith accounting principles generally accepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 30, 2002 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.

 

York, Dillingham & Company, P.L.L.C.

Columbia, Tennessee

January 30, 2002

 

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INDEPENDENTAUDITOR’ S REPORT

 

To the Partners

Pahrump Valley Investors

(A Wyoming Limited Partnership)

Cheyenne, WY

 

I have audited the accompanying balance sheetsof Pahrump Valley Investors (A Wyoming Limited Partnership), USDA RuralDevelopment Case No. 33-019-680204949, as of December 31, 2001 and 2000, andthe related statements of income, partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnerships 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, 2001 and 2000, and the results of its operations and its cashflows for the years then ended, in conformity with generally acceptedaccounting principles.

 

In accordance with G*overnment Auditing Standards,*Ihave also issued a report dated March 11, 2002 on my consideration of PahrumpValley Investors’ internal control structure and a report dated March 11, 2002on its compliance with laws and regulations.

 

Bernard E. Rea, CPA

Stockton, California

March 11, 2002

 

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IndependentAuditors’ Report

 

To the Partners

Woodlands Apartments

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 conducted our audits in accordance withauditing standards generally accepted in the United States of America and 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 basis forour 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 accordance with *Government Auditing Standards,*wehave issued a report dated January 23, 2002, on our consideration of theWoodlands Apartments’ internal control over financial reporting and over testsof its compliance with laws, regulations, contracts and grants. This report isan integral 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.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 11 through 13, is presented for the purposeof additional analysis and is not a required part of the basic financialstatements of the Project for the year ended December 31, 2001. 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.

 

Child, Sullivan & Company

Kaysville, Utah

January 23, 2002

 

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INDEPENDENTAUDITOR’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, 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.

 

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.

 

Pailet Meunier & LeBlanc L.L.P.

Metairie, Louisiana

February 18, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

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.

 

Lipsky, Godkin & Co., P.C.

New York, NY

February 13, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

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 31,2001, and 2000, 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 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. 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, 2001 and 2000, 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 February 22,2002, 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 ail material respects in relation to the financial statementstaken as a whole.

 

Corkern, Minter & Chisolm, LP

Jackson, MA

February 22, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the partners

Hurricane Hills I LC

 

I have audited the accompanying balancesheets of Hurricane Hills LC as of December 31, 2001, and the relatedstatements 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 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, 2001, and the results ofits operations, changes in Partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Robert Morris, CPA

Cedar City, UT

 

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INDEPENDENTAUDITOR’S REPORT

 

To: The Partners

Main EverettHousing Limited Partnership

 

We have audited the accompanying balancesheets of Main Everett Housing Limited Partnership as of December 31, 2001 and2000, 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, 2001and 2000, 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 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.

 

Tobin & Company, CPA’s

Larchmont, NY

January 18, 2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

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 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 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.

 

Boyd, Frinz & Stephans, LLP

St. Louis, Missouri

January 25, 2002

 

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**INDEPENDENT AUDITORS ’ REPORT**

 

To the Partners

Washington Arms Apartments

(A Limited Partnership)

Dayton, Ohio

 

We have audited the accompanying balance sheetof HUD Project #046-NI093 of Washington Arms Apartments (a limited partnership)as of December 31, 2001 and the related statements of profit and loss, changesin deficiency in partners’ capital and cash flows for the year ended December31, 2001. 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 in accordance withauditing standards generally accepted in the United States of America, *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates, and Consolidated Audit Guide for Audits of HUD Programs (the“Guide”) issued by the U. S. Department of Housing and Urban Development,Office of Inspector General in August 1997. Those standards and the Guide 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 HUD project #046-NI093 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 accordance with Government AuditingStandards, 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 withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our 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.

 

Waite, Schultz & Associates,Ltd.

Cincinnati, Ohio

January 23, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To: The Partners

OsborneHousing Limited Partnership

 

We have audited the accompanying balancesheets of Osborne Housing Limited Partnership as of December 31, 2001 and 2000,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, 2001 and2000, 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. 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.

 

Tobin & Company, CPA’s

Larchmont, NY

January 18, 2001

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Sandstone Village Limited Partnership

Great Falls, Montana

 

We have audited the accompanying balancesheets of Sandstone Village Limited Partnership 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 conducted our audits 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 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 Sandstone Village Limited Partnership as of December 31, 2001 and2000, and the results of its operations, changes in partners’ equity and cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

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.

 

Jankermier, Clark, Campanella, Stevens, PC

Great Falls, Montana

February 8, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

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 December31, 2001, and 2000, 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, 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 in thefinancial 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, 2001 and 2000, 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 16,2002, 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.

 

Corkern, Minter & Chisolm, LP

Jackson, MS

March 16, 2002

 

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**INDEPENDENT AUDITORS’ 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, 2001, 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 to expressan opinion on these financial statements based on our audit.

 

We conducted our audit in accordance withauditing standards generally accepted in the United States of America, *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates, and Consolidated Audit Guide for Audits of HUD Programs (the“Guide”) issued by the U. S. Department of Housing and Urban Development,Office of Inspector General in August 1997. Those standards and the Guide 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 HUD Project #073-55035, 073-55037, 073-55038, 073-55061 and073-55062 as of December 31, 2001 and the results of its operations and itscash flows and its changes in deficiency in partners’ capital for the year thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 23, 2002 on ourconsideration of Sutton Place Apartments’ internal control and a report datedJanuary 23, 2002 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.

 

Waite, Schultz & Associates,Ltd.

Cincinnati, Ohio

January 23, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

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, 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 conducted our audit 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. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit included examining,on a test basis, evidence supporting the amounts and disclosures in thefinancial 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 West Point Housing, L.P., as of December 31, 2001 and 2000, 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 February 25, 2002, 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 19 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.

 

Corkern, Minter & Chisolm, LP

Jackson, MS

February 25, 2002

 

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INDEPENDENTAUDITOR’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 31,2001 and 2000 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 withauditing standards generally accepted in the United 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 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, 2001 and 2000,and the results of its operations and its cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

Salmin, Celona, Wehrle & Flaherty, LLP

Rochester, NY

February 11, 2002

 

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IndependentAuditor’s Report

 

To****the Partners

A.V.A. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of A.V.A. Limited Partnership (a Virginia 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 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. 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 A.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 accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company L.L.P.

Greensboro, NC

January 31, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

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, 2001 and 2000 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 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. 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 Beckwood Manor One Limited Partnership as of December 31, 2001 and2000, and its results of operations, changes in partners’ equity (deficit), andcash 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 our report dated January 26, 2002 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.

 

LITTLE, SHANEYFELT, MARSHALL, ROMINE &CO.

Little Rock, Arkansas

JANUARY 26, 2002

 

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INDEPENDENTAUDITORS’ 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, 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 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. 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 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 accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company, LLP

Greensboro, NC

January 31, 2002

 

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**Independent Auditor’s Report**

 

To the Partners

Grayson Manor Limited Partnership

 

I have audited the accompanying balancesheets of Grayson Manor Limited Partnership 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. 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 Grayson Manor Limited Partnership as of December 31, 2001 and 2000,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 February 15, 2002 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.

 

Thomas C. Cunningham, CPA PC

Bristol, VA

February 15, 2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners of

SG – Hazeltine, L.P.

(A California Limited Partnership)

Fresno, California

 

We have audited the accompanying balancesheet of SO – Hazeltine, L.P., a California Limited Partnership, (the“Partnership”), as of December 31, 2001, and the related statements ofoperations, partners’ equity (deficit), and cash flows for the year then ended.These financial statements are the responsibility of he 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. 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 statementreferred to above present fairly, in all material respects, the financialposition of the Partnership as of December 31, 2001 and the results of itsoperations, changes in partners’ equity (deficit) and cash flows for the yearthen ended in conformity with generally accepted accounting principles.

 

Janzen, Tamberi & Wong AccountancyCorporation

Fresno, CA

February 28, 2002

 

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INDEPENDENTAUDITORS’ 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 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 conducted our audits 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 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 M.B. Apartments Associates, Ltd. (A 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 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.

 

Sharpton, Brunson & Company, P.A.

Miami, FL

February 15, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

# **To the Partners**

Meridian Housing, L.P.

Meridian, Mississippi

 

We have audited the accompanying balancesheets of Meridian Housing, L.P. (a Mississippi limited partnership), RHSProject No. 28-038-0640893892 as of December 31, 2001 and 2000, 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 withauditing standards generally accepted in the United States of America and *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 audit provides a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Meridian Housing, L.P. 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.

 

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.

 

Matthews, Cutrer

Ridgeland, MS

January 30, 2002

 

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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, 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 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 withthe auditing standards generally accepted in the United States of America, *GovernmentAuditing Standards,*issued by the Comptroller General of the UnitedStates, and the U.S. Department of Agriculture, Farmers Home Administration“Audit Program”. Those standards require that we 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. 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 New Devonshire II Limited Partnership as of December 31, 2001 and2000, and the results of its operations, the changes in partners’ deficit andcash 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 15, 2002, on our consideration of NewDevonshire II Limited Partnership’s internal control and a report datedFebruary 15, 2002, on its compliance with laws and regulations.

 

Our audits were conducted for the purpose of formingan opinion on the basic financial statements taken as a whole. The accompanyinginformation included in the report (shown on pages 11 to 18) is presented forthe purpose of additional analysis and is not a required part of the basicfinancial statements of New Devonshire II Limited Partnership. 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 financial statements taken as a whole.

 

Kline & London

Beachwood, Ohio

February 15, 2002

 

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**INDEPENDENT AUDITOR’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. 41-049-3l 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 conducted our audits in accordance withthe auditing standards generally accepted in the Unites States of America and *GovernmentAuditing Standards,*issued by the Comptroller General of the UnitedStates, and the U.S. Department of Agriculture, Farmers Home Administration“Audit Program”. Those standards require that we 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. 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 New Devonshire West Limited Partnership as of December 31, 2001 and2000, and the results of its operations, the changes in partners’ equity(deficit) and 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 15, 2002, on our consideration of NewDevonshire West Limited Partnership’s internal control and a report datedFebruary 15, 2002, 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.

 

Kline & London

Beachwood, Ohio

February 15, 2002

 

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IndependentAuditor’s Report

 

To the Partners

Powell Valley Limited Partnership

 

I have audited the accompanying balancesheets of Powell Valley Limited Partnership as of December 31, 2001 and 2000,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 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’ Powell Valley Limited Partnership as of December 31, 2001 and2000, and the results of its operations, changes in partners’ equity 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 February 15, 2002 on my consideration ofPowell Valley Limited Partnership’s internal control over financial reportingand on my tests of its compliance with certain provisions of laws andregulations.

 

Thomas C. Cunninghan, CPA PC

Bristol, VA

February 15, 2002

 

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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, 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 conducted our audits in accordance withauditing standards generally accepted in the United States of America arm thestandards applicable to financial 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 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, 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 accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company, L.L.P.

Greensboro, NC

January 31, 2002

 

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**Independent Auditor’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, 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. Our responsibilityis to express all 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 and thestandards applicable to financial 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 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 W. P. V. A. Limited Partnership as of December 31, 2001 and 2000,and the results of its operations and its cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company, LLP

Greensboro, NC

January 31, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

For the Partners

Angelou Associates, L. P,

New York, New York

 

We have audited the accompanying balancesheets of Angelou Associates, L. P. (a New York State limited partnership) asof December 31, 2001 and 2000, and the related statements of operations, cashflows, and partners’ capital, and the supplementary information included 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 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 Angelou Associates, L. P. as of December 31, 2001 and 2000, and theresults of its operations and its cash flows for the years 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 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 materialrespects in relation to the basic financial statements taken as a whole.

 

Kahn Boyd Levychin & Co.

New York, NJ

January 22, 2002

 

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**Report of 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 31,2001 and 2000, 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 audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards in the United States of America. 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 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 financial statementsreferred to above present fairly, in all material respects, the financialposition of CR Housing Associates, L.P. as of December 31, 2001 and 2000, andthe results of it operations and its cash flows for the years then ended inconformity with generally accepted accounting principles in the United Statesof America.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on page 10 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 my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Jose R. Barreras, CPA

Santurce, PR

February 21, 2002

 

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## **INDEPENDENTAUDITORS’ REPORT**

## ** **

To the Partners

Holly Heights Apartments, 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 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 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.

Omaha, Nebraska

January 18, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

TO THE PARTNERS OF 1374 BOSTON ROAD LIMITEDPARTNERSHIP

 

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.

 

Friedman Alpern & Green LLP

New York, NY

February 28, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****the Partners

BIENVILLE III APARTMENTS

 

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 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 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’ internal control and areport dated February 18, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Pailet, Meunier & LeBlanc, L.L.P.

Metairie, Louisiana

February 18, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****the Partners

BLANCHARD II APARTMENTS

 

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’ internal control and areport dated February 19, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Pailet, Meunier & LeBlanc L.L.P.

Metairie, Louisiana

February 19, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To****the Partners

COTTONWOOD APARTMENTS 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 audits weremade 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 January 31,2002 on our consideration of COTTONWOOD APARTMENTS’ internal control and areport dated January 31, 2002 on its compliance with laws and regulations applicableto the financial statements.

 

Pailet, Meunier & LeBlanc, L.L.P.

Metairie, Louisiana

January 31, 2002

 

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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. 26-074-383047638 as of December 31, 2001 and2000, 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. 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, 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.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 19, 2002 on our consideration of FairwayII Limited Dividend Housing Association Limited Partnership’s internal controlover financial reporting and our tests of 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.

 

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.

 

Yeo & Yeo, P.C.

CERTIFIED PUBLIC ACCOUNTANTS

Lansing, Michigan

February 19, 2002

 

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IndependentAuditor’s Report

 

To the Partners of

Fort Bend NHC L.P.

(A Virginia Limited 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 formingan opinion on the basic financial statements taken as a whole. Thesupplementary 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 audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the financial statements taken as a whole.

 

Dauby O’Connor & Zaleski, LLC

Carmel, Indiana

 

 

February 2, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

EVANGELINE PARTNERSHIP

 

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 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 basic financialstatements and, in our opinion, is fairly stated in all material respects inrelation 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.

 

Pailet, Meunier & LeBlanc, L.L.P.

Metairie, Louisiana

February 19, 2002

 

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INDEPENDENTAUDITOR’S 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, 2001 and 2000, and the relatedstatement 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 conducted our audits in accordance withauditing standards generally accepted in the United 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 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 Neighborhood Restorations Limited Partnership VII as of December31, 2001 and 2000, and the results of its operations and its cash flows for theyears then ended in conformity with accounting principles generally accepted inthe United States of America.

 

St. Clair CPA’s, P.C.

Bala Cynwyd, PA

January 18, 2002

 

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**Independent Auditor’s Report**

 

To the Partners

R.V.K.Y. Limited Partnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of R.V.K.Y. Limited Partnership (a Kentucky 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 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. 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 R.V.K.Y. 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 accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company, L.L.P.

Greensboro, NC

January 31, 2002

 

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### INDEPENDENTAUDITORS’ REPORT

 

To The Partners

Sumner House Limited Partnership

 

We have audited the accompanying balancesheets of Sumner House Limited Partnership as of December 31, 2001 and 2000,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 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 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 Sumner House 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.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on Pages 8 and 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 audits of the basic financial statements and is fairly stated inall material respects in relation to the basic financial statements taken as awhole.

 

Kostin, Ruffkess & Company, LLC

Farmington, Connecticut

February 22, 2002

 

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To the Partners

Terraceview Limited Partnership

 

We have audited the accompanying balance ofTerraceview Limited Partnership as of December 31, 2001 and 2000, and therelated statements of operations, partners’ equity (deficit) and cash flows forthe year then ended.  These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion these financial statements based on ouraudit.

 

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 a test basis, evidence supporting theamounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles usedand the significant estimates made by management, as well as evaluating theoverall financial 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 Terraceview Limited Partnership as of December 31, 2001 and. 2000and the results of its operations, changes in partners’ equity (deficit) andcash flows for the year then ended in conformity with generally acceptedaccounting principle.

 

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 materialrespects in relation to the basic financial statements taken as a whole.

 

Stangl & Jaskcowiak, Ltd

Sauk Rapids, MN

May 10, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Bryson Apartments, 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.

 

Moore, Camp, Phillips & Co., L.C.D.

Wichita Falls, Texas

February 6, 2002

 

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### INDEPENDENTAUDITORS’ REPORT

 

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, 2001 and 2000, 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 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. 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 Collins Housing, L.P. as of December 31, 2001 and 2000, 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 February 20, 2002, 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 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.

 

Corkern, Minter and Chisolm, P.A.

Jackson, MS

February 20, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Glenbrook Apartments, 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 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 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.

 

Moore, Camp, Phillips & Co. LLP

Wichita Falls, Texas

February 6, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Jacksboro Apartments, LTD.

 

We have audited the accompanying balancesheet of Jacksboro Apartments, Ltd. (a limited partnership), RD Project No.:50-0190-75-2-657-4-5’7 - 01 - 6 as of December 31, 2001 and the relatedstatements 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 in accordance withauditing standards generally accepted in the United States of America and GovernmentAuditing Standards, issued by the Comptroller General of the UnitedStates.  Those standards require that weplan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. 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 reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly in all material respects, the financialposition of Jacksboro Apartments, Ltd. RD Project No.: 50-0190752657457-01-6 asof December 31, 2001, and the results of its operations, changes in partners’equity and cash flows for the year then ended in conformity with U.S. generallyaccepted accounting principles.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on Page 1-19 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 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 5, 2002 on ourconsideration of Jacksboro Apartments, Ltd.’s internal control over financialreporting and on 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 should beread in conjunction with this report in considering the results of our audit.

 

Moore, Camp,Phillips & Co. LLP

Wichita Falls,Texas

February 5,2002

 

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### INDEPENDENTAUDITORS’ REPORT

 

To The Partners

Lincoln Hotel Partnership

A California Limited Partnership

710 West Ivy

San Diego, CA 92101

 

## **IndependentAuditor’s Report**

## ** **

We haveaudited the accompanying balance sheets of Lincoln Hotel Partnership, ACalifornia 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 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 a/so 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 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 Accountancy Corporation

San Diego, CA

January 31, 2002

 

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### INDEPENDENTAUDITORS’ 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, 2001 and 2000, 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 withauditing standards generally accepted in the United States of America and *GovernmentAuditing Standards*issued by the Comptroller General of the UnitedStates. Those standards 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 financial statements referredto above present fairly, in all material respects, the financial position ofLutkin Bayou Apartments, LP, as of December 31, 2001 and 2000 and the resultsof its operations and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

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.

 

Mathews Cutrer & Lindsay, P.A.

Drew, MS

February 6, 2002

 

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### INDEPENDENTAUDITORS’ REPORT

 

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, 2001 and 2000, and the related statements of income, partners’ equity andcash flows for the years ended December 31, 2001 and 2000. 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 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 LimitedPartnership) as of December 31, 2001 and 2000, in conformity with GenerallyAccepted Accounting Principles.

 

Louann Montey & Assoc. PC

Austin, Texas

March 8, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the Partners

Rhome Apartments, Ltd.

 

We have auditedthe 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 the UnitedStates 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 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 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 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.

 

Moore, Camp, Phillips & Co., L.L.P.

Wichita Falls, Texas

February 1, 2002

 

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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, 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 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. 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 Bellwood Four Limited Partnership as of December 31, 2001 and 2000,and its results of operations, changes in partners’ equity (deficit), and cashflows 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 our report dated February 4, 2002 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.

 

LITTLE, SHANEYFELT, MARSHALL, ROMINE & C0.

Little Rock, Arkansas

February 4, 2002

 

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### IndependentAuditors’ Report

 

To the Partners

Bowie Apartments, Ltd.

 

We have audited the accompanyingbalance sheets of Bowie Apartments, Ltd. (a limited partnership), RD ProjectNo. 50-069-0752627345-01-7, 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 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 financial statementstaken as a whole. The supplemental information on Page I~20 and 1-21 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 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.

 

Moore, Camp, Phillips & Co., L.L.P.

Wichita Falls,

Texas January 30, 2002

 

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## **IndependentAuditor’s Report**

## ** **

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, 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 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. 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 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 C.V.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 accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company, LLP

Greensboro, NC

January 31, 2002

 

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### IndependentAuditors’ Report

 

To the Partners

Graham Apartments, 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 Auditing Standardsand should be read in conjunction with this report in considering theresults of our audit.

 

Moore, Camp, Phillips & Co., L.L.P.

Wichita Falls, Texas

January 25, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Hillside Terrace Associates, L.P.

 

We have audited the accompanying balance sheetof Hillside Terrace Associates, L.P. (a limited partnership) as of December 31,2001 and 2000 and the related statements of operations and partners’ capital(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 onour audits.

 

We conducted our audits in accordance withauditing standards generally accepted in the United 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 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

Rochester, NY

January 31, 2002

 

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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) 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 all 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 and thestandards applicable to financial 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 auditsprovide 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, 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 accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson Company, L.L.P.

Greensboro, NC

January 31, 2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Members

Linden Partners II, LLC

 

We have audited the accompanying balancesheets of Linden Partners 11, LIC (a Nebraska Limited Liability Company) as ofDecember 3 I, 2001 and 2000, and the related statements of operations, members’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 in accordance withauditing standards generally accepted it the United 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 basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, is a all material respects, the financialposition of Linden Partners II, LLC as of December 31, 2001 and 2000, and theresults of its operations, and changes in members’ equity (deficit) and cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

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.

 

Monterth, Lacy & Sharkey, LLC

Omaha, Nebraska

February 11, 2002

 

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Independent Auditor’s Report

 

To the Partners

Mesa Grande Apartments, Limited Partnership

Irvine, California

 

I have audited the accompanying balance sheetof Mesa Grande Apartments, Limited Partnership as of December 31, 2001, 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 withauditing standards generally accepted in the United States of America. 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 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 financial positionof Mesa Grande Apartments, Limited Partnership at December 31, 2001, and theresults of its operations and cash flows for the year then ended in conformitywith accounting principles generally accepted in the United States of America

 

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.

 

Suarez Accountancy Corporation

San Pedro, CA

February 4, 2002

 

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IndependentAuditors’ Report

 

To the Partners

Nocona Apartments, 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 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 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.

 

Moore, Camp, Phillips & Co., L.L.P.

Wichita Falls, Texas

January 30, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Pyramid One Limited Partnership

 

We have audited the accompanying balancesheets of Pyramid One Limited Partnership, {the Partnership), as of December31, 2001 and 2000 and the related statements of profit (loss), changes inpartners’ equity (deficit) 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 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. 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. All 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 all material respects, the financial positionof Pyramid One Limited Partnership as of December 31, 2001 and 2000, and itsresults of operations, changes in partners’ equity {deficit), and cash flowsfor the year then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 20, 2002 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.

 

Little, Shaneyfelt, Marshall, Romine &Co.

Little Rock, AK

February 20, 2002

 

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Independent Auditor’s Report

 

To the Partners

Sunrise Homes Apartments, Limited Partnership

Irvine, California

 

I have audited the accompanying balance sheetof Sunrise Homes Apartments, Limited Partnership as of December 31, 2001, andthe related statements of operations, changes in partners’ capital, 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 in accordance withauditing standards generally accepted in the United States of America. 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 includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.I believe that nay 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 Sunrise Homes Apartments, Limited Partnership at December 31, 2001,and the results of its operations and cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

My 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 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.

 

Suarez Accountancy Corporation

San Pedro, CA

 

 

February 4, 2002

 

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**INDEPENDENT AUDITORS’REPORT**

 

The Partners

Canton Housing One, 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 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 Canton Housing One, L.P., FmHA Project No.28-045-0640886062 01-8, as of December 31, 2001 and 2000, and the results ofits operations 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 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 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 Housing Two, 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 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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**INDEPENDENT AUDITORS’REPORT**

 

The Partners

Canton Housing Three, 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 financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audit in accordance with auditing standards generally accepted in the UnitedStates 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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INDEPENDENT AUDITORS’ REPORT

 

The Partners

Canton Housing Four, 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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INDEPENDENT AUDITORS’ 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, 2001 and 2000, 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 withauditing standards generally accepted in the United States of America and *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 our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Ellisville Housing, L.P. 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.

 

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.

 

Matthews, Cutrer & Lindsay, P.A.

West Point, MS

February 18, 2002

 

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INDEPENDENTAUDITOR’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, 2001 and 2000, 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 withauditing standards generally accepted in the United States of America and *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 our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Hattiesburg Housing, LP 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.

 

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.

 

Matthews, Cutrer & Lindsay P.A.

Jackson, MS

February 14, 2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To the partners

Hurricane Hills II LC

 

I have audited the accompanying balancesheets of Hurricane Hills II LC as of December 31, 2001, and the relatedpartners’ equity for the year 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.

 

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, 2001, and the results ofits operations, changes in Partners’ equity and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

Morris Accounting Co., Inc.

Cedar City, VT

 

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**Independent Auditor’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, 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 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. Those standards require thatwe plan 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 our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of N. M. V. A. Limited Partnership as of December 31, 2001 and 2000,and the results of its operations and its cash flows for the years then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 31, 2002, 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.

 

Bernard Robinson & Company, LLP

Greensboro, NC

January 31, 2002

 

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INDEPENDENT AUDITOR’S REPORT

 

Partners

Sencit Hampden Associates, 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.

 

Fishbein & Company, P.C.

Elkins Park, Pennsylvania

January 25, 2002

 

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**INDEPENDENT AUDITOR’SREPORT**

** **

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, 2001, 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 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 Silver Creek/MHT Limited Dividend Housing Association LimitedPartnership as of December 31, 2001, and the results of its operations, changesin partners’ equity and cash flows for the year then ended, in conformity withaccounting principles 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. 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.

 

Hungerford & Co.

Southgate, Michigan

January 23, 2002

 

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Independent Auditor’s Report

 

February 1, 2002

 

To the Partners

Indiana Development Limited Partnership

Novi, Michigan

 

We have audited the accompanying balancesheets of Indiana Development Limited Partnership as of December 31, 2001 and2000 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 withauditing standards generally accepted in the United States of America. Thesestandards 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 statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, aswell as evaluating the overall financial statements 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 Indiana Development Limited Partnership as of December 31,2001 and2000 and the results of its operations and its cash flow for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 14, 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 our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as whole.

 

VanderPloeg Bergakker & Houtstra

Grand Rapids, MI

February 1, 2002

 

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**INDEPENDENT AUDITOR’SREPORT**

** **

To the Partners of

Martinsville-I, Ltd.

 

I have audited the accompanying balancesheets of Martinsville-I, Ltd. (a Kentucky limited partnership) as of December31, 2001 and 2000 and the related statements of operations, changes inpartners’ capital and cash flows for the years then ended. The financialstatements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy 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, 2001 and 2000, and itsoperations, changes in partners’ capital and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

H. Steven Plaut, P.S.C.

Louisville, KY

February 8, 2002

 

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**Auditors’ report**

** **

To the Partners

Parkside Plaza Associates, L. P.

New York, New York

 

We have audited the accompanying balancesheets of Parkside Plaza Associates, L. P. (a New York State limitedpartnership) as of December 31, 2001 and 2000, and the related statements ofoperations, cash flows, and partners’ capital, and the supplementaryinformation included for the years then ended. These financial statements arethe responsibility of the Company’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‘and 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 Parkside Plaza Associates, L. P. as of December 31, 2001 and 2000,and the results of its operations and its cash flows for the years then endedin 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. 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 materialrespects in relation to the basic financial statements taken as a whole.

 

Kahn Boyd Levychin,

Certified Public Accountants

New York, NJ

January 22, 2002

 

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**INDEPENDENT AUDITOR’SREPORT**

** **

To the Partners

Pyramid Four Limited Partnership

 

We have audited the accompanying balancesheets of Pyramid Four Limited Partnership, (the Partnership), as of December81, 2001 and 2000 and the related statements of profit (loss), changes inpartners’ equity (deficit) and cash flows fop 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 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. 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 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 Pyramid Four Limited Partnership as of December 31, 2001 and 2000,and its results of operations, changes in partners’ equity (deficit), and cashflows 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 our report dated January 29, 2002 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.

 

LITTLE, SHANEYFELT, MARSHALL, ROMINE &CO.

Little Rock, AK

JANUARY 29, 2002

 

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

CERTIFIEDPUBLIC ACCOUNTANTS

 

INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Bradford Group Partners of Jefferson County,L.P.

893 Forgety Road

Jefferson City, Tennessee

 

We have audited the accompanying balancesheet of Bradford Group Partners of Jefferson County, L.P. (a limitedpartnership) as of December 31, 2001, and the related statements of income(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 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 Bradford Group Partners of Jefferson County, L.P. as of December31, 2001, and the results of its operations, changes in partners’ equity and cashflows for the year then ended, in conformity with accounting principlesgenerally 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. 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.

 

McFarland and Gann, P.C.

Jefferson City, TN

March 15, 2002

 

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**INDEPENDENT AUDITOR’SREPORT**

** **

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, 2001, 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 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 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 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 Harbor Pointe/MHT Limited Dividend Housing Association LimitedPartnership as of December 31, 2001, and the results of its operations, changesin partners’ equity and its cash flows for the year then ended, in conformitywith accounting principles 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. 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.

 

Hungerford & Co.

Southgate, Michigan

January 22, 2002

 

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Independent Auditors’ Report

 

To the Partners of

NHC Partnership 5, L.P.

(A Virginia Limited 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. 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 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.

 

Dauby O’Connor & Zaleski, LLC

Carmel, Indiana

February 2, 2002

 

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**INDEPENDENT AUDITORS’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, 2001 and 2000, 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 withauditing standards generally accepted in the United 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 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 Belmont Affordable Housing II, L.P. as of December 31, 2001 and2000, and the results of its operations and its cash flows for the years thenended in conformity with U.S generally accepted accounting principles.

 

St. Clair CPA’s, P.C.

Bala Cynwyd, Pennsylvania

January 23, 2002

 

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**INDEPENDENT AUDITORS’REPORT**

 

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 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 Howard Park, Ltd. as of December 31, 2001, and the results of itsoperations and its cash flows for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

 

Our audit was conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theschedule of administrative, utilities, maintenance, taxes, insurance andinterest expense on page 10 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.

 

Sharpton, Bruston & Company, P.A.

Miami, FL

February 22, 2002

 

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Independent Auditor’s Report

 

February 1, 2002

 

Partners

RHP 96-1 Limited Partnership

Novi, Michigan

 

We have audited the accompanying balancesheets of RHP 96-1 Limited Partnership as of December 31, 2001 and 2000 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 withauditing standards generally accepted in the United States of America. Thesestandards 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 statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, aswell as evaluating the overall financial statements 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 RHP 96-1 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 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 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.

 

VanderPloeg, Bergakker & Houtstra

Novi, Michigan

February 1, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

June 18, 2002

 

To the Partners

New Caney Housing II, Ltd.

 

We have audited the accompanying balance sheetof New Caney Housing II, Ltd. as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity (deficit), and cash flow for theyears ended 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 oil our audits.

 

We conducted our audits in accordance withaccounting principles generally accepted in the United 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 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, 2001 and2000, and the results of its operation and its cash flows for the year endingDecember 31, 2001 and 2000, in conformity with accounting principles generallyaccepted in the United States of America.

 

Marshall, Shafer & Spalding, P.C.

Houston, TX

June 18, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Riverwalk Apartment 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 conducted our audits 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 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 Riverwalk Apartment Homes, Phase II LLC as of December 31, 2001 andthe results of its operations and cash flows for the year then ended--inconformity with accounting, principles generally accepted in the United Statesof America.

 

Virchow, Krause & Company, LLP

Madison, Wisconsin

January 9, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Aloha Housing Limited Partnership

Oregon Housing and

CommunityServices Department

Salem, Oregon

 

We have audited the accompanying BalanceSheets of Aloha Housing Limited Partnership *(a limited partnership),*as of December31, 2001 and 2000 and the related statements of operations, 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 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 our 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 Aloha Housing Limited Partnership, as of December 31, 2001 and2000, 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. Theaccompanying schedules of supplementary information required by the OregonHousing and Community Services Department are presented for purposes ofadditional analysis and are not a required part of the basic financialstatements. Such information has been subjected to the procedures applied inour 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

 

Henick & Ylvisaker

Portland, Oregon

January 30, 2002

 

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**Independent Auditors’ 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 31,2001, 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 withauditing standards generally accepted in the United States of America and *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 audit provides a reasonable basisfor 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, 2001, and theresults of its operations and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

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 January 16,2002 on our consideration of Riverview Bend Limited Partnership’s internalcontrol and reports dated January 16, 2002 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.

 

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.

 

Rubin, Brown, Gornstein & Co., L.L.P.

St. Louis, MO

January 16, 2002

 

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Independent Auditor’s Report

 

February 1, 2002

 

Partners

Baldwin Villas Limited Dividend

Housing Association Limited Partnership

Novi, Michigan

 

We have audited the accompanying balancesheets of Baldwin Villas Limited Dividend Housing Association LimitedPartnership as of December 31, 2001 and 2000 and the related statements ofoperations, partner capital and cash flows for the years then ended. Thesefinancial statements are the responsibility of Baldwin Villas Limited DividendHousing Association Limited Partnership’s management. Our responsibility is toexpress an opinion on the financial statement based upon our audits.

 

We conducted our audits in accordance withauditing standards generally accepted in the United States of America. Thesestandards 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 statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, aswell as evaluating the overall financial statements presentation. We believethat our audit provide a reasonable 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, 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 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 and/ting 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.

 

VanderPloeg, Bergakker & Houststra

Grand Rapids, MI

June 19, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

Gouverneur Senior Housing Associates, L.P.

 

We have audited the accompanying balance sheetof Gouverneur Senior Housing Associates, L.P, (a limited partnership) as ofDecember 31, 2001 and 2000, 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 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 Gouverneur Senior Housing 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

Rochester, NY

February 15, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

TALLY HO APARTMENTS 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 of thepartnership’s management, our responsibility is to express an opinion on thesefinancial 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 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 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.

 

Pailet, Meunier & LeBlanc, LLP

Metairie, Louisiana

March 12, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

TIMBER TRAILS I PARTNERSHIP

 

We haveaudited the accompanying balance sheet of TIMBER TRAILS I PARTNERSHIP, RHS PROJECTNO. 22-040-721457919 as of December 31, 2001 and the related statements ofoperations, changes in partners’ equity (deficit) 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 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 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 *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.

 

Pailet, Meunier& LeBlanc, L.L.P.

Metairie, Louisiana

February 28, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Capital Five Limited Partnership

 

We have audited the accompanying balancesheets of Capital Five Limited Partnership, (the Partnership), as of December31, 2001 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 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. 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 Capital Five Limited Partnership as of December 31, 2001 and theresults of its operations, changes in partners’ equity (deficit) and cash flowsfor the year then ended, in conformity with accounting, principles generallyaccepted in the United States of America.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 13, 2002 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 pant of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

LITTLE, SHANEYFELT, MARSHALL, ROMINE &CO.

Little Rock, Arkansas

February 13, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

CENTER PLACE APARTMENTS 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, in allmaterial respects, the financial position of CENTER PLACE APARTMENTS II, LTD asof 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 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.

 

Pailet, Meunier & LeBlanc, LLPV

Metair, LA

March 14, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Members

MA NO, 2 LLC

San Diego, California

 

We have audited the accompanying balancesheet of MA NO. 2 LLC, (a Nevada Limited Liability Company) as of December 31,2001, and the related statement of income, changes in members’ equity, and cashflows from March 1, 2001 (date of recapitalization) through December 31, 2001.These financial statements are the responsibility of the Company’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

We conducted our audit in accordance withU.S. 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 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 our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of MA NO. 2 LLC as of December 31, 2001 and the results of itsoperations and its cash flows from March 1, 2001 (date of recapitalization) toDecember 31, 2001, in conformity with U.S. generally accepted accountingprinciples.

 

Grice, Lurd and Tarkington, LLP

Escondido, California

March 15, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

OAKLAND PARTNERSHIP

 

We haveaudited the accompanying balance sheet of OAKLAND PARTNERSHIP, RHS PROJECTNO.  22-002-721457988 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 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.

 

Pailet, Meunier & LeBlanc, LLP

Metairie, LA

March 25, 2002

 

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INDEPENDENTAUDITOR’S REPORT

 

To the Partners

WESTERN GARDEN PARTNERSHIP

 

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.

 

Pailet, Meunier & LeBlanc, LLP

Metairie, LA

March 13, 2002

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Harbor Pointe II/MHT Limited Dividend Housing

Association Limited Partnership

 

We have audited the accompanying balancesheet of Harbor Pointe II/MHT Limited Dividend Housing Association LimitedPartnership (a Michigan limited partnership) as December 31, 2001.  This financial statement is theresponsibility of the Company’s management. Our responsibility is to express an opinion on this financial statementbased 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 statement is free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statement. 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 balance sheet referred toabove presents fairly, in all material respects, the financial position ofHarbor Pointe’ II/MHT Limited Dividend Housing Association Limited Partnershipas December 31, 2001 in conformity with accounting principles generallyaccepted in the United States of America.

 

Hungerford & Co.

Southgate, MI

April 4, 2002

 

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