REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
1950 Old Gallows Road, Suite 440
Vienna, VA 22182

# Independent Auditors Report

To the Partners of
Arrowhead Apartments Associates

We have audited the accompanying
balance sheets of Arrowhead Apartments Associates as of December 31, 2003 and 2002, and
the related statements of operations, partners deficit and cash flows for the years
then ended. These financial statements are the responsibility of the Partnerships
management. Our responsibility is to express an opinion on these financial statements
based on our audits.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Arrowhead Apartments Associates as of December 31, 2003 and 2002, and the
results of its operations and its cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary data included in the report on pages 14-20 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. 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 the basic financial statements taken as a whole.

In accordance with Government
Auditing Standardsand the Consolidated Audit Guide for Audits of HUD
Programs we have also prepared a report dated January 26, 2004, on our consideration
of the Partnerships compliance and on internal control over financial reporting
based on an audit of financial statements performed in accordance with government auditing
standards. Those reports are an integral part of the audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.

Reitberger, Pollekoff, and Kozak, P.C.
Vienna, Virginia
January 26, 2004

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REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
1950 Old Gallows Road, Suite 440
Vienna, VA 22182

# Independent Auditors Report

To the Partners of
Blackburn Limited Partnership

We have audited the accompanying
balance sheet of Blackburn Limited Partnership as of December 31, 2003, and the related
statements of profit and loss (on Form HUD-92410), partners deficit and cash flows
for the year then ended. These financial statements are the responsibility of the
Partnerships management. Our responsibility isto express an opinion on these
financial statements based on our audit.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Blackburn Limited Partnership as of December 31, 2003, and the results of its
operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary data included on pages 17 through 23 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. 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
the basic financial statements taken as a whole.

In accordance with Government
Auditing Standardsand the Consolidated Audit Guide for Audits of HUD
Programs, we also issued reports dated January 16, 2004, on our consideration of the
Partnerships internal controls and on its compliance with specific requirements
applicable to non-major HUD programs, affirmative fair housing and laws and regulations
applicable to the financial statements. Those reports are an integral part of the audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

Reitberger, Pollekoff, and Kozak, P.C.
Vienna, Virginia
January 16, 2004

Lead Auditor: Robert A. Kozak
EIN: 54-1639552

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REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
1950 Old Gallows Road, Suite 440
Vienna, VA 22182

# Independent Auditors Report

To the Partners of
Blackburn Limited Partnership

We have audited the accompanying
balance sheet of Blackburn Limited Partnership as of December 31, 2002, and the related
statements of profit and loss (on Form HUD-92410), partners deficit and cash flows
for the year then ended. These financial statements are the responsibility of the
Partnerships management. Our responsibility isto express an opinion on these
financial statements based on our audit.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Blackburn Limited Partnership as of December 31, 2002, and the results of its
operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary data included on pages 17 through 23 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. 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
the basic financial statements taken as a whole.

In accordance with Government
Auditing Standards,and the Consolidated Audit Guide for Audits of HUD
Programs, we also issued reports dated January 15, 2003, on our consideration of the
Partnerships internal controls and on its compliance with specific requirements
applicable to non-major HUD programs, affirmative fair housing and laws and regulations
applicable to the financial statements. Those reports are an integral part of the audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

Reitberger, Pollekoff, and Kozak, P.C.
Vienna, Virginia
January 15, 2003

Lead Auditor: Robert A. Kozak
EIN: 54-1639552

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|Dauby OConnor & Zaieski    
|----------------------------
|A Limited Liability Company 
|Certified Public Accountants

INDEPENDENT AUDITORS REPORT

To the Partners of
Chevy Chase Park, Ltd.
(An Ohio Limited Partnership)

We
have audited the accompanying balance sheet of Chevy Chase Park, Ltd. as of December 31,
2003. and the related statements of profit and (loss), changes in partners capital,
and cash flows for the year then ended. These financial statements are the responsibility
of the Partnerships management. Our responsibility is to express an opinion on these
financial statements based on our audit.

We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In
our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Chevy Chase Park, Ltd. as of December 31, 2003, and
the results of its operations and its cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

In
accordance with Government Auditing Standards, we have also issued reports dated
January 16, 2004. on our consideration of Chevy Chase Park, Ltd.s internal control
and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grants. Those reports are an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction
with this report in considering the results of our audit.

703 Pro Med Lane, Suite 300          
Carmel, Indiana 46032          
317-848-5700           Fax:317-815-6140

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Chevy Chase Park, Ltd.
Page Two

Our
audit was conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying supplementary information is presented for
purposes of additional analysis and is not a required part of the basic financial
statements 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 the basic financial statements
taken as a whole,

January 16, 2004
Carmel, Indiana
Dauby O'Connor & Zaieski, LLC
Certified Public Accountants

---

REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
8133 Leesburg Pike, Suite 550
Vienna, VA 22182

# Independent
Auditors Report

To the Partners
Chevy Chase Park Ltd.
(A Limited Partnership)
DBA Chevy Chase Apartments
Centreville, Ohio

We have audited the accompanying
balance sheet of Chevy Chase Park, Ltd. (a limited partnership), DBA Chevy Chase
Apartments, HUD Project No. 046-44115-LD as of December 31, 2002, and the related
statements of profit and loss, changes in partners equity (deficit), and cash flows
for the year then ended. These financial statements are the responsibility of the
projects management. Our responsibility is to express an opinion on these financial
statements based on our audit.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Chevy Chase Park, Ltd. (a limited partnership), DBA Chevy Chase Apartments,
HUD Project No. 046-44115-LD as of December 31, 2002, and the results of its operations,
changes in partners equity (deficit) and its cash flows for the year then ended, in
conformity with accounting principles generally accepted in the United States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary data on pages 17 through 19 is presented for purposes of additional analysis
and is not a required part of the basic financial statements. 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
the financial statements taken as a whole.

---

In accordance with Government
Auditing Standards and the Consolidated Audit Guide for Audits of HUD Programs,
we have also issued reports dated January 22, 2003, on our consideration of Chevy Chase
Park, Ltd.s internal controls and on its compliance with specific requirements
applicable to major HUD programs, laws and regulations applicable to the financial
statements and specific requirements applicable to affirmative fair housing. Those reports
are an integral part of the audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the
results of our audit.

Reitberger, Pollekoff, and Kozak, P.C.
Vienna, Virginia
January 22, 2003
Lead Auditor:  Robert A. Kozak
EIN: 54-1639552

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Jerold P. Logoluso
CERTIFIED PUBLIC ACCOUNTANT
770 East Shaw Avenue, Suite 102
Fresno, California 93710-7708
Telephone 559 229-6018
Facsimile 559 229-8641

# INDEPENDENT AUDITORS REPORT

To the Partners
Chowchilla Elderly Associates
Fresno, California

I have audited the accompanying
balance sheets of Chowchilla Elderly Associates, CHFA No. 81-103-N, (a limited 
partnership) as of December 31, 2003 and 2002 and the related statements of operations,
changes in partners deficit, and cash flows for the years then ended.  These
financial statements are the responsibility of the Projects management.  My
responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance
with auditing standards generally accepted in the United States of 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 I plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements.  An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statement presentation.  I believe that my audits provide a reasonable
basis for my opinion.

In my opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Chowchilla Elderly Associates as of December 31, 2003 and 2002, and the
results of its operations, changes in partners deficit, and cash flows for the years
then ended in conformity with accounting principles generally accepted in the United
States of America.

In accordance withGovernment
Auditing Standards, I have also issued reports dated February 5, 2004, on my
consideration of Chowchilla Elderly Associates internal control, and on my tests of
its compliance with certain provisions of laws, regulations, contracts and grants. Those
reports are an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in considering
the results of my audit.

/s/Jerold P. Logoluso
JEROLD P. LOGOLUSO

Fresno, California
February 5, 2004

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BROWDER & ASSOCIATES, P.C.CERTIFED PUBLIC ACCOUNTANTS
2320 HIGHLAND AVENUE SOUTH, SUITE 290
BIRMINGHAM, ALABAMA 35205-2900

_________________

TELEPHONE (205) 933-6855
FACSIMILE (205) 930-9486

Member of:
    Alabama Society of CPAs
    American Institute of CPAs
    Private Companies Practice Section
    SEC Practice Section

Independent Auditors Report

To the owners of Four Winds West Apartments

We have audited the accompanying
balance sheet of Four Winds West Apartments, Project No. 062-35157-PM-WAH-L8, as of , and
the related statements of profit and loss, changes in owners equity, and cash flows
for the year then ended. These financial statements are the responsibility of management.
Our responsibility is to express an opinion on these financial statements based on our
audit.

We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of the Project as of and the results of its operations and its cash flows for the
year then ended in conformity with accounting principles generally accepted in the United
States of America.

In accordance with Government
Auditing Standards,we have also issued reports dated January 12, 2004 on our
consideration of the Projects internal controls and on out tests of its compliance
with certain laws, regulations, contracts, and grants. Those reports are an integral part
of an audit performed in accordance with Government Auditing Standards and should
be read in conjunction with this report in considering the results of our audit

Our audit was conducted for the
purpose of forming an opinion on the financial statements taken as a whole. The
supplementary information included in the report is presented for the purpose of
additional analysis and is not a required part of the basic financial statements of the
Project. 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 the financial statements taken as a whole.

Browder & Associates,
P.C.

Birmingham, Alabama
January 12, 2004
Audit Principal:  E.O. Browder, Jr.
Federal Employer Identification Number:  63-0986156

Audit Principal: E.O.Browder, Jr.

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BROWDER & ASSOCIATES, P.C.CERTIFED PUBLIC ACCOUNTANTS
2320 HIGHLAND AVENUE SOUTH, SUITE 290
BIRMINGHAM, ALABAMA 35205-2900

_________________

TELEPHONE (205) 933-6855
FACSIMILE (205) 930-9486

Member of:
    Alabama Society of CPAs
    American Institute of CPAs
    Private Companies Practice Section
    SEC Practice Section

Independent Auditors Report

To the owners of Four Winds West Apartments

We have audited the accompanying
balance sheet of Four Winds West Apartments, Project No. 062-35157-PM-WAH-L8, as of , and
the related statements of profit and loss, changes in owners equity, and cash flows
for the year then ended. These financial statements are the responsibility of management.
Our responsibility is to express an opinion on these financial statements based on our
audit.

We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of the Project as of and the results of its operations and its cash flows for the
year then ended in conformity with accounting principles generally accepted in the United
States of America.

In accordance with Government
Auditing Standards,we have also issued reports dated January 10, 2003 on our
consideration of the Projects internal controls and on out tests of its compliance
with certain laws, regulations, contracts, and grants. Those reports are an integral part
of an audit performed in accordance with Government Auditing Standards and should
be read in conjunction with this report in considering the results of our audit

Our audit was conducted for the
purpose of forming an opinion on the financial statements taken as a whole. The
supplementary information included in the report is presented for the purpose of
additional analysis and is not a required part of the basic financial statements of the
Project. 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 the financial statements taken as a whole.

Browder & Associates,
P.C.

Birmingham, Alabama
January 10, 2003
Audit Principal:  E.O. Browder, Jr.
Federal Employer Identification Number:  63-0986156

Audit Principal: E.O.Browder, Jr.

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INDEPENDENT AUDITORSREPORT

To the Partners 
Mercy Terrace Associates, L.P.

We
have audited the accompanying balance sheets of Mercy Terrace Associates, L.P. (the
Partnership) 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 statements are the responsibility of the partnerships management. Our
responsibility is to express an opinion on these financial statements based on our audits.

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

In
our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Mercy Terrace Associates, L.P. as of December 31, 2003
and 2002, and the results of its operations and its cash flows for the years then ended,
in conformity with accounting principles generally accepted in the United States of
America.

The
accompanying financial statements have been prepared assuming that the partnership will
continue as a going concern. As discussed in Note K to the financial statements, the
partnership has defaulted on a substantial note payable due May 2003 which raises
substantial doubt about its ability to continue as a going concern. Managements
plans in regard to these matters are also described in Note K. The financial statements do
not include any adjustments that might result from the outcome of this uncertainty.

In
accordance with Government Auditing Standards and the
Consolidated Audit Guide for Audits of HUD Programs, we have also issued
reports dated January 14, 2004 on our consideration of Mercy Terrace Associates,
L.P.s internal control and on its compliance with specific requirements applicable
to major HUD programs and fair housing and nondiscrimination. Those reports are an
integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the
results of our audit.

---

Our
audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 28 through 43 is
presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as a
whole.

Charlotte, North Carolina
January 14, 2004

Taxpayer Identification Number:  52-1088612
Lead Auditor: Thomas A Fassett, CPA

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REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
1950 Old Gallows Road, Suite 440
Vienna, VA 22182

# Independent Auditors Report

To the Partners of
Moorings Apartments Associates

We have audited the accompanying
balance sheets of Moorings Apartments Associates as of December 31, 2003 and 2002, and the
related statements of operations, partners deficit and cash flows for the years then
ended. These financial statements are the responsibility of the Partnerships
management. Our responsibility is to express an opinion on these financial statements
based on our audits.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Moorings Apartments Associates as of December 31, 2003 and 2002, and the
results of its operations, changes in partners deficit and its cash flows for the
years then ended in conformity with accounting principles generally accepted in the United
States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplemental information included in the report on pages 14-20 is presented for purposes
of additional analysis and is not a required part of the basic financial statements. 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 the basic financial statements taken as a whole.

In accordance with Government
Auditing Standardsand the Consolidated Audit Guide for Audits of HUD
Programs we have also prepared a report dated January 27, 2004, on our consideration
of the Partnerships compliance and on internal control over financial reporting
based on an audit of financial statements performed in accordance with government auditing
standards. Those reports are an integral part of the audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.

Reitberger, Pollekoff and Kozak, P.C.
Vienna, Virginia
January 27, 2004

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William M. Sivick, CPA3455 W. Shaw, Suite 101
Fresno, CA 93711 
209-276-8400

To the Partners 
Orangewood, Plaza, A California Limited Partnership
Pinedale, California

# INDEPENDENT AUDITORS REPORT

We have audited the accompanying
balance sheets of Orangewood Plaza, A Limited Partnership, CHFA Project No. 82-007-N, as
of December 31, 2003 and 2002 and the related statements of operations, changes in
partners capital (deficit) and cash flows for each of the two years in the period
ended December 31, 2003. These financial statements are the responsibility of the
projects management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance
with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Orangewood Plaza, CHFA No. 82-007-N, as of December 31, 2003 and 2002, and the
results of its operations and the changes in partners capital (deficit) and cash
flows for each of the two years in the period ended December 31, 2003 in conformity with
accounting principles generally accepted in the United States of America.

Our audits were conducted for purpose
of forming an opinion on the basic financial statements taken as a whole. The supporting
information included in the report (shown on pages 18 to 25) is presented for additional
analysis and is not a required part of the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly stated, in all material respects, in relation to
the financial statements taken as a whole.

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Orangewood Plaza, A California Limited Partnership
Page 2

In accordance with Government
Auditing Standards, we have also issued a report dated January 28, 2004 on our
consideration of Orangewood Plaza, A Limited Partnerships internal controls and a
report dated January 28, 2004 on its compliance with laws and regulations. Those reports
are an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the
results of our audit.

/s/William M. Sivick, C.P.A.
William M. Sivick Accountancy Corporation

Fresno, California
January 28, 2004

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# RYND, CARNEAL & EWING, P.L.C.

INDEPENDENT AUDITORS REPORT

The Partners
Posada Associates Limited Partnership:

We have audited the accompanying
balance sheet of Posada Associates Limited Partnership as of December 31, 2003 and 2002,
and the related statements of operations, partners deficit, and cash flows for the
years then ended. These financial statements are the responsibility of the
Partnerships management. Our responsibility is to express an opinion on these
financial statements based on our audits.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Posada Associates Limited Partnership as of December 31, 2003 and 2002, and
the results of its operations and its cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose
of forming an opinion on the basic financial statements taken as a whole. The
supplementary information included in Schedules 1 and 2 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, is fairly stated in all material respects
in relation to the basic financial statements taken as a whole.

RYND, CARNEAL & EWING, PLC

Phoenix, Arizona
January 29, 2004

CERTIFIED PUBLIC ACCOUNTANTS
2813 EAST CAMELBACK ROAD . SUITE 425 . PHOENIX, ARIZONA 85016
TELEPHONE 602 957.8366         
                  
              FACSIMILE 602 957-4740

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REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
1950 Old Gallows Road, Suite 440
Vienna, VA 22182

# INDEPENDENT AUDITORS REPORT

To the Partners of
Second Blackburn Limited Partnership

We have audited the accompanying
balance sheet of Second Blackburn Limited Partnership, as of December 31, 2003, and the
related statements of profit and loss, partners deficit and cash flows for the year
then ended. These financial statements are the responsibility of the Partnerships
management. Our responsibility is to express an opinion on these financial statements
based on our audit.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Second Blackburn Limited Partnership as of December 31, 2003, and the results
of its operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary data included on pages 16 through 20 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. 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
the basic financial statements taken as a whole.

In accordance with Government
Auditing Standards,and the Consolidated Audit Guide for Audits of HUD
Programs, we have also issued reports dated January 16, 2004 on our consideration of
the Partnerships internal controls and on its compliance with laws and regulations
applicable to the financial statements and on its compliance with specific requirements
applicable to non-major HUD programs and on its compliance with specific requirements
applicable to fair housing and non-discrimination. Those reports are an integral part of
the audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

Reitberger, Pollekoff, and Kozak, P.C.
Vienna, Virginia
January 16, 2004

Lead Auditor: Robert A. Kozak
EIN: 54-1639552

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REITBERGER, POLLEKOFF AND KOZAK, P.C.
Certified Public Accountants
1950 Old Gallows Road, Suite 440
Vienna, VA 22182

# INDEPENDENT AUDITORS REPORT

To the Partners of
Second Blackburn Limited Partnership

We have audited the accompanying
balance sheet of Second Blackburn Limited Partnership, as of December 31, 2002, and the
related statements of profit and loss, partners deficit and cash flows for the year
then ended. These financial statements are the responsibility of the Partnerships
management. Our responsibility is to express an opinion on these financial statements
based on our audit.

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

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Second Blackburn Limited Partnership as of December 31, 2002, and the results
of its operations and its cash flows for the year then ended in conformity with generally
accepted in United States of America.

Our audit was conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary data included on pages 16 through 20 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. 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
the basic financial statements taken as a whole.

In accordance with Government
Auditing Standards,and the Consolidated Audit Guide for Audits of HUD
Programs, we have also issued reports dated January 15, 2003 on our consideration of
the Partnerships internal controls and on its compliance with laws and regulations
applicable to the financial statements and on its compliance with specific requirements
applicable to non-major HUD programs and on its compliance with specific requirements
applicable to fair housing and non-discrimination Those reports are an integral part of
the audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

Reitberger, Pollekoff, and Kozak, P.C.
Vienna, Virginia
January 15, 2003

Lead Auditor: Robert A. Kozak
EIN: 54-1639552

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BROWDER & ASSOCIATES, P.C.CERTIFED PUBLIC ACCOUNTANTS
2320 HIGHLAND AVENUE SOUTH, SUITE 290
BIRMINGHAM, ALABAMA 35205-2900

_________________

TELEPHONE (205) 933-6855
FACSIMILE (205) 930-9486

Member of:
    Alabama Society of CPAs
    American Institute of CPAs
    Private Companies Practice Section
    SEC Practice Section

Independent Auditors Report

To the Partners of
Troy Manor Apartments
Troy, Alabama

RECD State Director

We have audited the accompanying
balance sheet of Troy Manor Apartments (the Project), Project No. 01-55-133-2600, 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
are the responsibility of the Projects management. Our responsibility is to express
an opinion on these financial statements based on our audit.

We conducted our audit in accordance
with U.S. generally accepted auditing standards and Government Auditing Standards
issued by the Comptroller General of the United States, and the U. S. Department of
Agriculture, Farmers Home Administration Audit Program. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of the Project 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 U.S. generally accepted accounting principles.

In accordance with Government
Auditing Standards we have also issued our reports dated January 12, 2004 on our
consideration of the Projects internal controls and on its compliance with laws and
regulations applicable to the basic financial statements. Those reports are an integral
part of an audit performed in accordance with Government Auditing Standardsand
should be read in conjunction with this report in considering the results of our audit.

Our audit was conducted for the
purpose of forming an opinion on the financial statements taken as a whole. The
supplemental information included in the report are presented for the purpose of
additional analysis and are not a required part of the basic financial statements of the
Project. 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 the financial statements taken as a whole.

Browder & Associates, P.C.

Birmingham, Alabama
January 12, 2004
Federal Employer Identification Number:  63-0986156

Audit Principal:  E. O. Browder, Jr.

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KPFF L.L.C.

24500 Chagrin Boulevard, Suite 315
Cleveland, Ohio 44122-5627

Certified Public Accountants

Telephone: 216-292-6120
Fax: 216-292-5718Website: kpffcpa.com

INDEPENDENT AUDITORS REPORT

To the Partners of
Westgate Tower Limited Dividend Housing Association

We have audited the balance sheets of
Westgate Tower Limited Dividend Housing Association, a Michigan limited partnership, MSHDA
Development No. 256, as of December 31, 2003 and 2002, and the related statements of
operations, changes in accumulated earnings (losses) and cash flows for each of the two
years in the period ended December 31, 2003. These financial statements are the
responsibility of the projects management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance
with U.S. generally accepted auditing standards and Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial
position of Westgate Tower Limited Dividend Housing Association at December 31, 2003 and
2002 and the results of its operations and its cash flows for each of the two years in the
period ended December 31, 2003 in conformity with U.S. generally accepted accounting
principles.

Our audits were conducted for the
purpose of forming an opinion on the basic financial statements taken as a whole. The
supporting information included in the reports is presented for additional analysis and is
not a required part of the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audits of the basic financial statements and, in
our opinion, is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.

In accordance with Government
Auditing Standards, we have also issued a report dated February 4, 2004 on our
consideration of the partnerships internal control structure and on its compliance
with laws and regulations.

KPFF, L.L.C.

Cleveland, Ohio
February 4, 2004