UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-K


(Mark One)

[X]  ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT OF 1934


For the fiscal year ended March 31, 2006


                                       OR


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


                         COMMISSION FILE NUMBER 0-20638

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                       ----------------------------------
         (FORMERLY KNOWN AS PRUDENTIAL-BACHE TAX CREDIT PROPERTIES L.P.)
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


           Delaware                                              13-3519080
-------------------------------                             --------------------
(State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                              Identification No.)

 625 Madison Avenue, New York, New York                             10022
----------------------------------------                    --------------------
(Address of principal executive offices)                          (Zip Code)


Registrant's telephone number, including area code (212) 317-5700


Securities registered pursuant to Section 12(b) of the Act:
     None

Securities registered pursuant to Section 12(g) of the Act:
     Beneficial Unit Certificates
     (Title of Class)

     Indicate by check mark if the registrant is a well-known  seasoned  issuer,
as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

     Indicate by check mark if the  registrant  is not  required to file reports
pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation  S-K(ss.229.405 of this chapter) is not contained herein,  and
will not be  contained,  to the best of  registrant's  knowledge,  in definitive
proxy or information  statements  incorporated  by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]

     Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

Large accelerated filer [ ]   Accelerated filer [ ]    Non-accelerated filer [X]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Act). Yes [ ] No [X]

     The  approximate  aggregate book value of the voting and non-voting  common
equity held by  non-affiliates  of the  Registrant as of September 30, 2005, was
($7,777,000), based on Limited Partner equity (deficit) as of such date.

                       DOCUMENTS INCORPORATED BY REFERENCE
None


<PAGE>

                                     PART I


Item 1.  Business

General
-------

Patriot  Tax Credit  Properties  L.P.  (the  "Registrant"),  a Delaware  limited
partnership,  was formed on May 3, 1989 and will  terminate on December 31, 2029
unless  terminated  sooner  under the  provisions  of the Amended  and  Restated
Agreement of Limited Partnership (the "Partnership  Agreement").  The Registrant
was  formed  to  invest  in  low-income,   multi-family   residential  complexes
("Apartment  Complexes" or  "Properties")  and, to a lesser extent,  in historic
apartment  complexes   undergoing   rehabilitation   ("Historic   Complexes"  or
"Properties")  through the  acquisition  of  interests  (the "Local  Partnership
Interests") in local partnerships (the "Local Partnerships") that are the owners
of the Properties.  These  investments  were made with proceeds from the initial
sale of 38,125 Beneficial Unit Certificates  ("BUC$").  The Registrant's  fiscal
year for tax and financial  reporting purposes ends on December 31 and March 31,
respectively.

The primary  objectives of the  Registrant  are to provide the limited  partners
with  low-income  housing tax credits  allowed  under Section 42 of the Internal
Revenue Code of 1986, as amended ("Tax Credits") over the credit period for each
Property in which the Registrant  has invested and to a lesser  extent,  10-year
historic  rehabilitation tax credits allowed under Section 48(g) of the Internal
Revenue  Code of  1986,  as  amended.  The  Registrant  invested  only in  Local
Partnerships  that  owned  Properties  which  qualified  for  Tax  Credits.   No
properties were acquired from any entity in which  Prudential-Bache  Properties,
Inc.  (the  former  general  partner)  or any  affiliate  had an  interest.  The
Registrant's  investments are composed of limited partnership interests in Local
Partnerships  owning  then newly  constructed  or existing  structures  that had
undergone  substantial  rehabilitation.  The  Local  Partnerships  in which  the
Registrant  has  invested  must be operated in  accordance  with the  low-income
housing  rules and  regulations  to protect the related Tax  Credits.  It is not
expected that any of the Local Partnerships in which the Registrant has invested
will generate any significant cash flow from operations to provide distributions
to the holders of BUC$ ("BUC$ holders") or the limited partners. As of March 31,
2006, the Registrant has disposed of 3 of its 8 original Properties.

The  Registrant  expects that in order to avoid  recapture  of Tax Credits,  its
holding period with respect to each Local Partnership  Interest will be at least
as  long as the  15-year  compliance  period  ("Compliance  Period")  and may be
substantially longer.

The Tax Credits are  attached  to a Local  Partnership  for a period of 10 years
(the "Tax Credit  Period") and are  transferable  with the  Property  during the
entirety of such ten year period.  If trends in the real estate market warranted
the sale of a Property,  the  remaining  Tax Credits  would  transfer to the new
owner, thereby adding value to the Property on the market.  However,  such value
declines  each year and is not  included  in the  financial  statement  carrying
amount.

A loss on  impairment of assets is recorded when  management  estimates  amounts
recoverable   through  future   operations  and  sale  of  the  Property  on  an
undiscounted  basis  are  below  depreciated  cost.  At that  time the  Property
investments  themselves are reduced to estimated fair value (generally using the
discounted cash flow valuation method).  Through March 31, 2006, the Partnership
has  recorded  $2,700,000  as a loss on  impairment  of assets or  reduction  to
estimated fair value.

While the value of the  remaining Tax Credits are a factor in  calculating  fair
value,  the  expiration of the Tax Credit Period,  in and of itself,  is not the
only factor in determining whether there is an impairment and generally does not
have any adverse impact on the fair value of the Local Partnerships.

As of December 31, 2002, all the Local  Partnerships  completed their Tax Credit
Periods and the  Registrant  has met its primary  objective  of  generating  Tax
Credits  for  qualified  BUC$  holders.  However,  each Local  Partnership  must
continue  to  comply  with  the Tax  Credit  requirements  until  the end of the
Compliance Period in order to avoid recapture of the Tax Credits. The Compliance
Period will end at various dates  through  December 31, 2007 with respect to the
Properties depending upon when the Tax Credit Period commenced.

Each  Property  in which the  Registrant  invested is  substantially  mortgaged.
However,  the aggregate  indebtedness  did not exceed 85% of the appraised  fair
market  value of any  Property at the time of  acquisition.  The first  mortgage
financing  encumbering the Properties was arranged by the general partner of the
Local  Partnership (the "Local General  Partner") owning the Properties prior to
the time the Registrant became a limited partner therein.

The Registrant acquired its Local Partnership Interest in each Local Partnership
by purchasing it directly from the existing  limited and/or  general  partner of
the Local  Partnership.  In each of the  Registrant's  investments,  the general
partner  of the local  partnership  (the  "Local  General  Partner")  owning the
complex was  required  to provide  personal  guarantees  and/or  establish  cash
escrows,  financial  bonds  and/or  letters of credit to protect the  Registrant
against, among other things, the failure to meet certain operating criteria. All
of these guarantees and escrows have expired.

For more information regarding the Properties,  see Item 2, Properties. For more
information  regarding the  Registrant's  operations,  see Item 7,  Management's
Discussion and Analysis of Financial Condition and Results of Operations.

Two Properties had revenue which exceeded 15% of the Registrant's  total revenue
for the year ended March 31, 2006 and one  Property had revenue  which  exceeded
15% of the  Registrant's  total revenue in each of the two years ended March 31,
2005 and 2004.  Revenue from Palm Beach Apartments Ltd.  ("Summer Creek Villas")
as a percentage of the Registrant's total revenue was 41.04%,  56.03% and 55.31%
during the years ended March 31, 2006, 2005 and 2004, respectively. Revenue from
Cutler Canal II  Associates,  Ltd.  ("Cutler  Canal II") as a percentage  of the
Registrant's  total revenue was 19.17% for the year ended March 31, 2006. Cutler
Canal II and Summer Creek Villas were sold during the year ended March 31, 2006.

No single tenant accounted for 10% or more of the Registrant's total revenue for
any of the three years in the period ended March 31, 2006.


                                       2
<PAGE>

General Partner
---------------
The general  partner of the  Registrant is RCC Partners 96 L.L.C.  (the "General
Partner") and is an affiliate of CharterMac  Capital LLC ("CharterMac  Capital")
(formerly known as Related Capital Company LLC).  Independence SLP L.P. ("SLP"),
an affiliate of CharterMac  Capital, is the special limited partner. On November
17, 2003,  CharterMac acquired  CharterMac  Capital,  which is the parent of RCC
Manager  LLC,  the  managing  member of the  General  Partner.  Pursuant  to the
acquisition,  CharterMac acquired controlling  interests in the General Partner.
This acquisition did not affect the Registrant or its day-to-day operations,  as
the majority of the General Partner's management team remained unchanged.

On November 8, 2005,  CharterMac announced that Stuart J. Boesky would step down
as Chief  Executive  Officer and trustee of CharterMac.  Upon his stepping down,
which was  effective on November 15, 2005, he also resigned from his position as
Member,  Executive  Vice  President and Chief  Operating  Officer of the General
Partner. Mr. Boesky will stay on as a consultant to CharterMac for the next year
in order to ensure a smooth transition. On March 14, 2006, CharterMac's Board of
Trustees  named  Marc  D.  Schnitzer  the  Chief  Executive  Officer,  effective
immediately.  Mr. Schnitzer  replaced Stephen M. Ross, who had served as interim
Chief Executive Officer since Stuart J. Boesky resigned in November of 2005. Mr.
Schnitzer also replaced Mr. Boesky as Member, Executive Vice President and Chief
Operating Officer of the General Partner.

Sales of Underlying Properties
------------------------------
The Registrant is currently in the process of disposing of its  investments.  It
is  anticipated  that this process will take a number of years.  As of March 31,
2006, the Registrant sold the Property and the related assets and liabilities of
three Local Partnerships.  In addition, the Registrant entered into an agreement
for the sale of one Local  Partnership  (see Note 13 in Item 8). There can be no
assurance as to when the Registrant will dispose of its remaining investments or
the amount of proceeds which may be received.  However,  based on the historical
operating results of the Local Partnerships and the current economic conditions,
including  changes in tax laws, it is unlikely that the proceeds from such sales
received by the Registrant will be sufficient to return to the limited  partners
their original investment.

On March 28, 2006, the  Registrant  sold the Property and the related assets and
liabilities of Cutler Canal II to an affiliate of the Local General  Partner for
$9,000,000.  The sale resulted in a non-cash  contribution  by the Local General
Partner of  approximately  $1,948,000.  The sale resulted in the  liquidation of
Cutler  Canal  II.  As of the  sale  date,  Cutler  Canal  II had  property  and
equipment, at cost, of approximately  $11,540,000,  accumulated  depreciation of
approximately $4,279,000 and mortgage debt of approximately $5,538,000.

On January 18, 2006, the Registrant sold the Property and the related assets and
liabilities of RMB Limited Partnership  (Hubbard's Ridge) ("Hubbard's Ridge") to
a  third  party  purchaser  for  $4,950,000.  The  sale  resulted  in a gain  of
approximately  $2,101,000.  The sale  resulted in the  liquidation  of Hubbard's
Ridge. As of the sale date, Hubbard's Ridge had property and equipment, at cost,
of   approximately   $5,311,000,   accumulated   depreciation  of  approximately
$2,719,000 and mortgage debt of approximately $4,423,000.

On July 14, 2005,  the  Registrant  sold the Property and the related assets and
liabilities  of Summer Creek Villas to an unrelated  third party  purchaser  for
$45,500,000.  The sale resulted in a gain of approximately $12,784,000.  The net
proceeds  received  were  used  to  repay  the  mortgage  and  certain  advances
(including  accrued interest) made to Summer Creek Villas by the General Partner
and its affiliates,  as required by the limited partnership  agreement of Summer
Creek  Villas.  As of the sale  date,  Summer  Creek  Villas  had  property  and
equipment, at cost, of approximately  $40,833,000,  accumulated  depreciation of
approximately $14,611,000 and mortgage debt of approximately $22,884,000.

Segments
--------
The  Registrant  is  engaged  solely  in the  business  of  investing  in  Local
Partnerships  that own Properties;  therefore,  presentation of industry segment
information is not applicable.  The Registrant operates in one segment, which is
the investment in multi-family residential property. Financial information about
this segment is set forth in Item 8 hereto.

Competition
-----------
The General Partner and/or its affiliates have formed various entities to engage
in businesses that may be competitive with the Registrant.

The  Registrant's  business is affected  by  competition  to the extent that the
underlying  Properties  from  which it  derives  Tax  Credits  may be subject to
competition  relating to rental rates and amenities from comparable  neighboring
properties.

Employees
---------
The Registrant has no employees.  Management and administrative services for the
Registrant are performed by the General  Partner and its affiliates  pursuant to
the Partnership Agreement. See Part III and Notes 1, 3 and 6 to the consolidated
financial statements set forth in Item 8.

Inflation
---------
The Local  Partnerships  are impacted by inflation  in several  ways.  Inflation
allows for  increases in rental rates  generally to reflect the impact of higher
operating and  replacement  costs.  Furthermore,  inflation  generally  does not
impact the fixed long-term financing under which real property  investments were
purchased. Inflation also affects the Local Partnerships adversely by increasing
operating costs, such as fuel, utilities, and labor.

Item 1A.  Risk Factors

The  Registrant's  investment as a limited partner in the Local  Partnerships is
subject to the risks incident to the potential  losses  arising from  management
and ownership of improved real estate.  The Registrant's  investments also could
be  adversely  affected  by poor  economic  conditions,  generally,  which could
increase vacancy levels and rental payment defaults,  and by increased operating
expenses,  any or all of which could threaten the financial  viability of one or
more of the Local Partnerships.

There also are  substantial  risks  associated  with the operations of Apartment
Complexes   receiving   government   assistance.   These  include   governmental
regulations  concerning tenant eligibility,  which may make it more difficult to
rent apartments in the complexes;  difficulties in obtaining government approval
for rent  increases;  limitations  on the  percentage  of  income  which low and
moderate-income  tenants may pay as rent; the possibility  that Congress may not
appropriate  funds to enable the Department of Housing and Urban  Development to

                                       3
<PAGE>



make the rental assistance payments it has contracted to make; and that when the
rental assistance contracts expire there may not be market demand for apartments
at full market rents in a Local Partnership's Apartment Complex.


Item 1B.  Unresolved Staff Comments

Not applicable


Item 2.  Properties.

As of March 31, 2006, the  Registrant  holds  interests in five remaining  Local
Partnerships which own the following Properties which continue to be operated in
a manner to qualify for Tax Credits:

<TABLE>
<CAPTION>

                                                                                  Occupancy Rate
                                                                   Rents as of        as of
                  Property                      Number of Units    May 1, 2006     May 1, 2006
---------------------------------------------   ---------------   -------------   --------------
<S>                                                  <C>             <C>               <C>
Diamond Street Venture
  Philadelphia, PA                                    48             473-540           88%

Papillion Heights Apartments L.P.
  Papillion, NE                                       48                 495           73%

Hill Top Homes Apartments Limited Partnership
  Arlington, TX                                      171             565-770           81%

Brookland Park Plaza Limited Partnership
  Richmond, VA                                        77                 563           83%

Compton Townhouses Limited Partnership
  Cincinnati, OH                                      39                 765           97%

</TABLE>

(a) At March 31, 2006, the Registrant holds a 98% interest in Hill Top Homes and
    Compton  Townhouses  and a 98.99%  interest  in  Diamond  Street,  Papillion
    Heights and Brookland Park Plaza.


Diamond  Street  consists  of  48  units  in 16  buildings.  The  buildings  are
three-story brownstone row houses with historic features and similar layouts. Of
the  48  apartment  units,  46 are  two-bedroom  apartment  units  and  two  are
efficiency apartment units.

Papillion  Heights  consists of two  buildings,  each  containing 24 units.  The
buildings are 2 1/2 stories of wood frame and brick exterior with pitched roofs.
Of  the  total  48  apartment  units,  two  are  one-bedroom  units  and  46 are
two-bedroom units.

Hill Top Homes is comprised of a two-story  building  surrounded by 13 one-story
fourplexes which are brick with wood siding and pitched roofs. The buildings are
surrounded  by a security  gate of brick columns and wrought iron fencing with a
guard  house  at  the  entrance.  Of  the  total  171  apartment  units,  18 are
three-bedroom/one bath apartment units, each comprising approximately 925 square
feet; 52 are two-bedroom/two bath apartment units, each comprising approximately
1,100 square feet; 98 are two-bedroom/one  bath apartment units, each comprising
approximately  936 square feet;  and three are  one-bedroom/one  bath  apartment
units, each comprising approximately 1,000 square feet.

Brookland  Park  Plaza  is a  three-level  brick  building  and is a  registered
historic landmark.  The building is comprised of stucco and brick exterior and a
sloped  red  glazed  tile  roof.  It is a 77-unit  development  with  68,564 net
rentable  square  feet.  All 77  units  are  one-bedroom  apartment  units  each
comprising  approximately  890 square feet.  Each unit contains a  refrigerator,
range oven, carpeting and air-conditioning.  Brookland Park Plaza also maintains
a community room for tenants.  See Note 13 in Item 8 for agreement  subsequently
entered into for sale.

Compton Townhouses consists of six two-story buildings  containing a total of 39
townhouse units. Four of the buildings contain six units; one building has seven
units;   and  one  has  eight   units.   All  units  have  three   bedrooms  and
two-and-one-half  baths.  Total gross  building area is 52,595 square feet;  net
rentable area is 47,814  square feet.  The average net area of the subject units
is 1,226 square feet.

For  additional   information   describing  the   Registrant's   properties  and
encumbrances,  see Item 7,  Management's  Discussion  and  Analysis of Financial
Condition  and  Results  of  Operations  and  Schedule  III -  Real  Estate  and
Accumulated Depreciation.

Item 3.  Legal Proceedings

None

Item 4.  Submission  of  Matters to a Vote of
Security Holders

None


                                       4
<PAGE>



                                     PART II


Item 5. Market for Registrant's BUC$, Related Limited Partner Matters and Issuer
Purchases of Equity Securities

As of May 16, 2006,  there were 2,219 BUC$  holders of record  owning a total of
38,125 BUC$.  Additionally,  the General  Partner  holds one BUC$. A significant
secondary  market for BUC$ has not  developed,  and it is not expected  that one
will develop in the future. There are also certain restrictions set forth in the
Partnership  Agreement  limiting  the  ability of a limited  partner to transfer
BUC$.

There are no  material  restrictions  upon the  Registrant's  present  or future
ability  to  make  distributions  in  accordance  with  the  provisions  of  the
Partnership  Agreement;  however,  the Registrant has paid no distributions from
operations or otherwise since inception. No distributions are anticipated in the
foreseeable future.

Transfer Procedures
-------------------
The Registrant from time to time receives requests by unit holders and others to
transfer BUC$ and/or limited partnership  interests.  Such requests may occur in
connection  with  tender  offers  for  the  Registrant's  units.  Such  requests
implicate  the  Registrant's   policies  and  procedures   concerning  transfers
generally and tender offers in particular,  which were adopted by the Registrant
pursuant to the terms of its Registrant  Agreement,  to ensure  compliance  with
applicable  law,  avoid  adverse tax  consequences  for the  Registrant  and its
investors, and preserve the Registrant's advantageous tax status.

In prior  years,  the  Registrant  relied on the 5% safe harbor  established  by
Internal Revenue Service ("IRS")  regulations to avoid being  characterized as a
"publicly-traded  partnership"  that  is  taxed  as a  corporation.  The 5% safe
harbor,  however,  expired and is no longer  available  as of December 31, 2005.
Accordingly,  the  Registrant  now  relies on a 2% safe  harbor  established  by
another  IRS  regulation  to avoid  being  characterized  as a  "publicly-traded
partnership" that is taxed as a corporation.

A brief  summary of certain of the  Registrant's  key  policies,  practices  and
requirements with respect to transfers and tender offers is as follows:

o    No  transfer  (whether  for  substitution,   assignment  or  otherwise)  is
     effective or binding on the  Registrant  unless and until it is approved by
     the General Partner.

o    No transfer will be approved  unless the transferor  and transferee  submit
     complete  and  properly  executed  forms of the  Registrant's  own transfer
     documentation.   The   Registrant   does  not  accept   forms  of  transfer
     documentation  other  than its own and does not accept  signatures  made by
     power of attorney in lieu of original signatures by each of the transferors
     and transferees.

o    The Registrant will not approve transfers that in the cumulative  aggregate
     for any tax  year  exceed  the IRS 2% safe  harbor,  unless  a  financially
     responsible  person  provides the  Registrant  and its partners with (i) an
     indemnity  (in form and  substance  in all ways  acceptable  to the General
     Partner) for all liability (including,  without limitation, any adverse tax
     consequences)  arising from or relating to exceeding the 2% safe harbor and
     (ii) a legal opinion (in form and  substance in all ways  acceptable to the
     General  Partner)  that there will be no adverse  tax  consequences  to the
     Registrant and its partners from exceeding the 2% safe harbor.

o    It order to avoid the  undesirable  situation of one or more tender  offers
     consuming  the  entire  safe  harbor  limitation  early in the tax year and
     leaving the Registrant's  remaining investors with no liquidity opportunity
     for the rest of that tax year,  the  Registrant  restricts  the  cumulative
     aggregate  total of transfers made pursuant to all tender offers to 1.5% of
     its outstanding  units in each tax year,  unless a financially  responsible
     person  conducting  such  tender  offer  provides  the  Registrant  with an
     acceptable  indemnity and legal opinion of the type described above. At the
     end of each tax year, the General Partner, in its discretion, may allow the
     cumulative  total number of transfers  (including those by tender offer) to
     reach the 2% safe harbor limit.

o    The  Registrant  requires that all tender offers for its units be conducted
     in accordance with all applicable law including,  without  limitation,  the
     federal securities laws.

The foregoing is solely a summary of the Registrant's policies, requirements and
practices   with  respect  to  transfers  and  tender   offers.   More  complete
information,  including  a  copy  of  the  Registrant's  transfer  documentation
package, may be obtained from the Registrant.


                                       5
<PAGE>



Item 6.  Selected Financial Data

TThe following table presents  selected  financial data of the Registrant.  This
data should be read in conjunction with the consolidated financial statements of
the Registrant and the notes thereto set forth in Item 8.

<TABLE>
<CAPTION>
                                                                     Years Ended March 31,
                                         ----------------------------------------------------------------------------
              OPERATIONS                      2006           2005*           2004*           2003*           2002*
--------------------------------------   -------------   -------------   -------------   -------------   ------------
<S>                                      <C>             <C>             <C>             <C>             <C>
Rental and other income                  $   2,348,790   $   2,439,020   $   2,310,407   $   2,610,786   $  2,568,170
                                         =============   =============   =============   =============   ============

Interest income                          $       5,046   $       4,042   $       3,857   $       3,811   $     15,450
                                         =============   =============   =============   =============   ============

Interest expense                         $     638,884   $     666,439   $     697,321   $     723,067   $    740,882
                                         =============   =============   =============   =============   ============

Depreciation and amortization expenses   $     711,019   $     713,930   $     669,929   $     659,121   $    661,378
                                         =============   =============   =============   =============   ============

Loss before minority interest and
  discontinued operations                $  (1,230,822)  $  (1,116,458)  $  (1,188,211)  $    (917,814)  $   (969,549)
                                         =============   =============   =============   =============   ============

Minority interest in loss of local
  partnerships from operations           $       1,662   $       1,272   $       1,857   $       1,097   $      1,508
                                         =============   =============   =============   =============   ============

Loss before discontinued operations      $  (1,229,160)  $  (1,115,186)  $  (1,186,354)  $    (916,717)  $   (968,041)
                                         =============   =============   =============   =============   ============

Income (loss) from discontinued
  operations including gain (loss)
  on sale and minority interest          $  10,553,528   $  (2,983,781)  $  (2,613,484)  $  (2,720,282)  $ (2,640,062)
                                         =============   =============   =============   =============   ============

Net income (loss)                        $   9,324,368   $  (4,098,967)  $  (3,799,838)  $  (3,636,999)  $ (3,608,103)
                                         =============   =============   =============   =============   ============

Loss from operations per
  limited partner BUC$                   $      (32.08)  $      (29.11)  $      (30.96)  $      (23.92)  $     (25.27)

Income (loss) from discontinued
  operations per limited partner BUC$    $      275.43   $      (77.87)  $      (68.21)  $      (71.00)  $     (68.90)
                                         -------------   -------------   -------------   -------------   ------------

Net income (loss) per limited
  partner BUC$                           $      243.35   $     (106.98)  $      (99.17)  $      (94.92)  $     (94.17)
                                         =============   =============   =============   =============   ============

Total assets                             $  15,525,866   $  53,860,978   $  55,556,172   $  58,143,529   $ 60,492,083
                                         =============   =============   =============   =============   ============

Mortgage notes payable                   $  10,243,965   $  43,771,002   $  44,697,118   $  45,294,215   $ 46,015,770
                                         =============   =============   =============   =============   ============

</TABLE>

*  Reclassified for comparative purposes.


                                       6
<PAGE>



Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Liquidity and Capital Resources
-------------------------------

The Registrant  originally  invested in eight Local Partnerships that are owners
of affordable  multi-family  residential  complexes.  The Local Partnerships are
operated  in  accordance  with the rules and  regulations  of  Section 42 of the
Internal Revenue Code in order to protect the Tax Credits. As of March 31, 2006,
the  Partnership  sold the property and the related  assets and  liabilities  of
three  Local  Partnerships.  See Note 11 in Item 8 for a  discussion  of Sale of
Properties.  In addition, the Partnership subsequently entered into an agreement
for the sale of one Local Partnership. See Note 13 in Item 8 for a discussion of
Subsequent Events.

Short-Term
----------

The  Registrant's  primary source of funds is rental  revenues,  which are fully
utilized at the Property  level. As of March 31, 2006,  there was  approximately
$1,864,000  in working  capital  reserves  available  to fund  Registrant  level
expenses.  The Registrant is dependent  upon the support of the General  Partner
and certain of its affiliates in order to meet its obligations at the Registrant
level.  The General  Partner and these  affiliates  have agreed to continue such
support for the  foreseeable  future.  Without the General  Partner's  continued
allowance of accrual without payment of certain fees, expense reimbursements and
advances, the Registrant would not be in a position to meet its obligations.

For the year ended March 31, 2006,  cash and cash  equivalents of the Registrant
and its consolidated Local Partnerships increased approximately $1,272,000.  The
increase is attributable to net proceeds from sale of property ($45,500,000) and
a net  increase  in due to  Local  General  Partners  and  affiliates  of  Local
Partnerships, the General Partner and its affiliates ($2,015,000) which exceeded
net cash used in  operating  activities  ($6,831,000),  investment  in  property
($18,000),  costs paid  relating to sale of property  ($7,671,000),  payments of
mortgage notes ($23,565,000) and repayments to the General Partner ($8,157,000).
Included  in  adjustments  to  reconcile  the net  income  to net  cash  used in
operating   activities  is  depreciation   and   amortization  of  approximately
$1,884,000 and a gain on sale of property of approximately $14,825,000.

Other accrued  expenses and  liabilities  are short term  liabilities  which are
expected to be paid from operating cash flows,  working capital  balances at the
Local  Partnership  level,  Local  General  Partner  advances  and,  in  certain
circumstances,  advances  from the  Registrant.  Because the  provisions  of the
secondary  loans defer the payment of accrued  interest of the respective  Local
Partnerships, the Registrant believes it (and the applicable Local Partnerships)
has  sufficient  liquidity and ability to generate cash and to meet existing and
known or reasonably likely future cash requirements over both the short and long
term.

Long-Term
---------

Partnership   management  fees  owed  to  the  General   Partner   amounting  to
approximately  $1,292,000 and $1,138,000 were accrued and unpaid as of March 31,
2006 and 2005,  respectively.  Without the General Partner's continued allowance
of accrual without payment of certain fees, expense reimbursements and advances,
the Registrant would not be in a position to meet its obligations.

At the Local  Partnership  level,  certain Local General  Partners  and/or their
affiliates  have made  deficit  guaranty  agreements  with  respect to the Local
Partnerships  which,  under  certain  circumstances,  required the Local General
Partners  and/or their  affiliates to fund cash flow deficits.  These  operating
deficit   advances  do  not  bear  interest  and  are  repayable  by  the  Local
Partnerships in accordance with the respective deficit guaranty  agreements.  In
addition,  the Registrant's  financial  statements as of March 31, 2006 and 2005
also reflect  payables of $523,859 and $501,271,  respectively,  under operating
deficit guaranty  agreements at Hill Top Homes, which have expired.  As of March
31, 2006, all operating deficit guaranty agreements have expired.

The resolution of  contingencies,  if any,  affecting Local  Partnerships is not
anticipated  to impact  future  results of  operations,  liquidity  or financial
condition  in a material way because the maximum  loss the  Registrant  would be
liable for is its net investment in the respective Local Partnerships.  However,
the  Registrant's  loss of its investment in a Local  Partnership  may result in
recapture  of Tax Credits if the  investment  is lost before  expiration  of the
Compliance Period.

Management is not aware of any trends or events,  commitments  or  uncertainties
which  have not  otherwise  been  disclosed  that  will or are  likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws  that  have not yet been  adopted.  The  portfolio  is  diversified  by the
location of the  Properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  Properties in
the  portfolio  may  be   experiencing   upswings.   However,   the   geographic
diversification  of the portfolio may not protect against a general  downturn in
the national  economy.  The Registrant has invested the proceeds of its offering
in eight Local  Partnerships,  all of which have had their Tax Credits  fully in
place.  The Tax Credits are  attached to the Property for a period of ten years,
and are  transferable  with the  Property  during the  remainder of the ten-year
period.  If trends in the real estate  market  warranted the sale of a Property,
the remaining Tax Credits would transfer to the new owner,  thereby adding value
to the Property on the market. However, such value declines each year and is not
included in the financial  statement carrying amount. The Compliance Period will
end at various  dates through  December 31, 2007 with respect to the  Properties
depending upon when the Tax Credit period commenced.

Summer Creek Villas Local Partnership
-------------------------------------
On July 14, 2005, the Property and the related assets and  liabilities of Summer
Creek Villas were sold to an unrelated  third party purchaser (see Note 11). The
buyer  absorbed  any and all costs to the Property  caused by recent  hurricanes
(see  below)  that had been  unrepaired  at  closing.  At the date of sale,  the
insurance claim with respect to the hurricane damage was in the resolution stage
with the insurance company;  all insurance proceeds will be paid to Summer Creek
Villas,  rather than the buyer, with no further potential  liability on the part
of Summer Creek Villas.

For several years prior to its sale,  Summer Creek Villas had experienced  lower
than expected economic occupancy levels, which resulted in recurring losses from
operations and adversely affected the liquidity of Summer Creek Villas.  Despite
an increase in rent levels during 2004 and 2003, Summer Creek Villas' operations
were  impeded  by its  inability  to  raise  rents  sufficiently  to pay for its
operating and debt costs. Summer Creek Villas was unable to obtain maximum rents
as potential  residents  were  restricted  based on county median income levels,


                                       7
<PAGE>



which limit the maximum  income that a  prospective  resident  can earn.  Summer
Creek Villas had been  obligated,  since 1996, to repay  significant  amounts of
principal on its mortgage.

Effective  January 1, 1999, Summer Creek Villas entered into a funding agreement
with Palm Beach Investor,  L.P. (Summer Creek Villas' "Class C limited partner")
which  provided  for a series of loans to be made to Summer Creek Villas in each
of the years 1999,  2000 and 2001,  in amounts not to exceed  $2,000,000  in the
aggregate.  On  September 9, 2002,  Summer  Creek  Villas  entered into a second
funding  agreement with the Class C limited  partner which provided for a second
series of loans to Summer Creek Villas in each of the years 2002, 2003 and 2004,
in  amounts  not to  exceed  $1,500,000  in the  aggregate.  Although  no formal
agreements  were  reached  with the other  partners,  additional  loans from the
Registrant  (which is the Class A limited  partner)  were obtained in accordance
with the loans to be provided  under the funding  agreement.  Loans made through
July 14, 2005 to fund operating  deficits total $14,493,656 and are comprised of
$10,993,656  from the  Registrant  (which was eliminated in  consolidation)  and
$3,700,000  from the  Class C  limited  partner,  which  included  an  emergency
hurricane repair advance of $200,000.

On  September 3, 2004,  Summer  Creek  Villas was damaged by Hurricane  Frances.
Additional  damage was caused by  Hurricane  Jeanne on September  25, 2004.  The
hurricanes  caused  extensive  damage which  required  roofing to be replaced on
substantially all of the buildings of Summer Creek Villas.  In addition,  Summer
Creek Villas incurred costs to clean up after the hurricanes and costs to repair
damages to certain units. In total,  damages were estimated to be  approximately
$1,218,000.  As of July  14,  2005  the  insurance  claim  with  respect  to the
hurricane  damage had not been  settled and  repairs had not begun.  There was a
delay because the insurance  company was in the process of  determining  whether
the entire roof of each building  needs to be replaced.  Repairs,  which are now
the  responsibility  of the buyer, are expected to consist of removing  existing
roofing  material and  installing  new roofing  material.  Through July 14, 2005
Summer Creek Villas incurred $255,000 of costs associated with temporary repairs
and clean-up.

Results of Operations
---------------------

The operating results of the Local Partnerships  consolidated herein are for the
twelve-month periods ended December 31. Information disclosed below with respect
to each Local Partnership is consistent with this method.

Fiscal 2006 vs. Fiscal 2005
---------------------------

Rental income decreased  approximately $95,000 for the year ended March 31, 2006
as  compared to 2005,  primarily  due to  decreases  in  occupancy  at two Local
Partnerships  partially  offset  by rental  rate  increases  at the other  Local
Partnerships.

Other income increased approximately $5,000 for the year ended March 31, 2006 as
compared to 2005,  primarily  due to an increase in tenant  charges at one Local
Partnership offset by a decrease in laundry and vending income at a second Local
Partnership.

Total expenses, excluding taxes and insurance, remained fairly consistent with a
decrease of approximately 1%.

Taxes and insurance increased approximately $42,000 for the year ended March 31,
2006 as compared to 2005,  primarily due to a low real estate tax  assessment in
the prior year at one Local  Partnership and increased  insurance  premiums at a
second Local Partnership.

Fiscal 2005 vs. Fiscal 2004
---------------------------

Rental income increased approximately $147,000 for the year ended March 31, 2005
as compared to 2004,  primarily  due to  increases  in  occupancy at one Limited
Partnership.

Other income decreased  approximately  $18,000 for the year ended March 31, 2005
as compared to 2004, primarily due to an increase in tenant charges in the prior
year at one Local Partnership.

Total  expenses,  excluding  taxes and  insurance  and repairs  and  maintenance
remained fairly consistent with an increase of approximately 2%.

Taxes and insurance decreased approximately $52,000 for the year ended March 31,
2005 as compared to 2004, primarily due to a lower real estate tax assessment in
2005 at one Local Partnership.

Repairs and maintenance increased approximately $48,000 for the year ended March
31,  2005 as  compared to 2004,  primarily  due to an  increase  in  maintenance
contracts at one Local  Partnership and an increase in cleaning and maintenance,
salaries, decorating contracts and supplies at a second Local Partnership.

Tabular Disclosure of Contractual Obligations
---------------------------------------------

The following table summarizes the Registrant's commitments as of March 31, 2006
to make  future  payments  under  its  debt  agreements  and  other  contractual
obligations.

<TABLE>
<CAPTION>
                                           Less than        1 - 3         3 - 5       More than
                                Total        1 Year         Years         Years        5 Years
                             -----------   -----------   -----------   -----------   -----------
<S>                          <C>           <C>           <C>           <C>           <C>
Mortgage notes payable (a)   $10,243,965   $   262,461   $ 2,641,802   $   515,143   $ 6,824,559
                             ===========   ===========   ===========   ===========   ===========

</TABLE>

(a)  Mortgage notes are  collateralized by land,  buildings and improvements and
     leases related thereto.  Mortgage notes consist of both first mortgages and
     support loans (second and third mortgages).


                                       8
<PAGE>



Off Balance Sheet Arrangements
------------------------------

The Registrant has no off-balance sheet arrangements.

Critical Accounting Estimates
-----------------------------

The preparation of consolidated financial statements requires management to make
estimates and assumptions.  These estimates and assumptions  affect the reported
amounts  of assets and  liabilities  and  disclosure  of  contingent  assets and
liabilities  at the  date  of the  consolidated  financial  statements  and  the
reported  amounts of revenue and expenses  during the reporting  period.  Actual
results could differ from those estimates.

Critical Accounting Policies
----------------------------

Set forth below is a summary of the accounting policies that management believes
are critical to the preparation of the consolidated financial statements:

a)  Property and Equipment

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price,  acquisition fees and expenses, and any other costs incurred
in acquiring the  Properties.  The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and  straight-line  methods.
Expenditures  for repairs and  maintenance  are charged to expense as  incurred;
major  renewals  and  betterments  are  capitalized.  At the time  property  and
equipment  are  retired  or  otherwise  disposed  of,  the cost and  accumulated
depreciation  are  eliminated  from  the  assets  and  accumulated  depreciation
accounts  and the profit or loss on such  disposition  is reflected in earnings.
The Registrant complies with Statement of Financial Accounting Standards No. 144
"Accounting  for the  Impairment  or Disposal of Long-Lived  Assets".  A loss on
impairment of assets is recorded when management  estimates amounts  recoverable
through future operations and sale of the Property on an undiscounted  basis are
below depreciated cost. At that time Property investments themselves are reduced
to  estimated  fair value  (generally  using  discounted  cash  flows)  when the
Property is considered to be impaired and the depreciated cost exceeds estimated
fair value.

Through  March 31, 2006,  the  Registrant  has recorded  $2,700,000 as a loss on
impairment of assets or reductions to estimated fair value.

b)  Revenue Recognition

Rental income is earned  primarily under standard  residential  operating leases
and is typically  due the first day of each month,  but can vary by Property due
to the terms of the tenant leases.  Rental income is recognized  when earned and
charged to tenants' accounts  receivable if not received by the due date. Rental
payments  received in advance of the due date are deferred until earned.  Rental
subsidies  are  recognized  as  rental  income  during  the month in which it is
earned.

Other  revenues are  recorded  when earned and consist of the  following  items:
Interest  income  earned on cash and cash  equivalent  balances and cash held in
escrow balances,  income from forfeited security deposits, late charges, laundry
and vending income and other rental related items.

c) Income Taxes

The  Registrant  is not  required to provide  for, or pay,  any Federal or state
income taxes.  Income tax  attributes  that arise from its operations are passed
directly to the partners. The Registrant may be subject to other state and local
taxes in  jurisdictions  in which it  operates.  For  income tax  purposes,  the
Registrant's year ends on December 31.

Impairment of Long-Lived Assets
-------------------------------
The  Registrant is required to assess  potential  impairments  to its long-lived
assets,  which  consists  primarily of property  and  equipment.  If  impairment
indicators are present, the Registrant must measure the fair value of the assets
in accordance with Statement of Financial  Standards No. 144 "Accounting for the
Impairment or Disposal of Long-Lived  Assets" to determine if adjustments are to
be recorded.

New Accounting Pronouncements
-----------------------------

In June 2005, the Financial Accounting Standards Board ("FASB") issued Statement
of  Financial  Accounting  Standards  No.  154,  "Accounting  Changes  and Error
Corrections" ("FAS 154"). FAS 154 replaces  Accounting  Principles Board Opinion
No.  20,  "Accounting  Changes"  ("APB  No.  20")  and  Statement  of  Financial
Accounting  Standards No. 3, "Reporting  Accounting Changes in Interim Financial
Statements".  APB No. 20  previously  required  that most  voluntary  changes in
accounting  principle be  recognized  by  including in the current  period's net
income the  cumulative  effect of changing to the new accounting  principle.  In
contrast,  FAS 154 requires that a voluntary  change in accounting  principle be
applied  retrospectively  to prior periods'  financial  statements,  unless this
would  be  impracticable.  In  addition,  FAS 154  makes a  distinction  between
retrospective  application  of an accounting  principle and the  restatement  of
financial statements to reflect the correction of an error. FAS 154 is effective
for accounting  changes and correction of errors made in fiscal years  beginning
after December 15, 2005. The Registrant  does not expect the adoption of FAS 154
to have a material impact on its consolidated results of operations.

In June 2005, the FASB issued Emerging Issues Task Force No. 04-5,  "Determining
Whether a General  Partner,  or the  General  Partners  as a Group,  Controls  a
Limited  Partnership  or Similar  Entity When the Limited  Partners Have Certain
Rights" ("EITF No. 04-5").  EITF No. 04-5 replaces  counterpart  requirements in
the  Statement of Position  78-9,  which  provides  guidance on  accounting  for
investments  in real estate  ventures and limited  partnerships.  Under EITF No.
04-5, the general  partner's  control would be overcome if the limited  partners
have  either (i)  "kick-out  rights"-  the right to dissolve  or  liquidate  the
partnership  or otherwise  remove the general  partner  "without  cause" or (ii)
"participating  rights" - the right to  effectively  participate  in significant
decisions  made  in the  ordinary  course  of the  partnership's  business.  The
kick-out  rights and the  participating  rights must be  substantive in order to
overcome the general partner's  control.  EITF No. 04-5 is now effective.  Since
the Registrant's financial statements are presented on a consolidated basis, the
adoption  of EITF No.  04-5 has not had a  material  effect on the  Registrant's
consolidated results of operations.


                                       9
<PAGE>



Property Information
--------------------
The  Registrant  currently  holds  interests in five of its original eight Local
Partnerships.  The following  schedule gives specific  details about the related
Properties.

<TABLE>
<CAPTION>

                                                                       Gross Carrying
                                                                          Value of            Occupancy
                                                           Number        Property at           Rate at
                      Property (a)                        of Units     March 31, 2006    December 31, 2005 (c)
-----------------------------------------------------   ------------   ---------------   ---------------------
<S>                                                           <C>       <C>                      <C>
RMB Limited Partnership (Hubbard's Ridge) (d)                 0         $         0              84%
   Garland, TX
Cutler Canal II Associates, Ltd. (e)                          0                   0              98%
   Miami, FL
Diamond Street Venture (b)                                   48           2,930,103              92%
   Philadelphia, PA
Papillion Heights Apartments L.P.                            48           2,222,850              63%
   Papillion, NE
Hill Top Homes Apartments Limited Partnership               171           8,104,661              78%
   Arlington, TX
Palm Beach Apartments, Ltd. (Summer Creek Villas) (f)         0                   0               0%
   West Palm Beach, FL
Brookland Park Plaza Limited Partnership (g)                 77           6,449,682              86%
   Richmond, VA
Compton Townhouses Limited Partnership                       39           2,446,958              90%
   Cincinnati, OH                                                       -----------

                                                                        $22,154,254
                                                                        ===========

</TABLE>

(a)  At March 31, 2006, the  Registrant  holds, a 98% interest in Hill Top Homes
     and Compton  Townhouses and a 98.99% interest in Diamond Street,  Papillion
     Heights and Brookland Park Plaza.

(b)  The  investment  in property  relating to the  Diamond  Street  Venture was
     reduced  by  $2,700,000  as of  March  31,  1995  representing  a  loss  on
     impairment of assets.

(c)  Occupancies  are calculated by dividing  occupied units by total  available
     units.

(d)  The property and the related assets and liabilities of Hubbard's Ridge were
     sold on January 18, 2006.

(e)  The property and the related assets and liabilities of Cutler Canal II were
     sold on March 28, 2006.

(f)  The property and the related assets and  liabilities of Summer Creek Villas
     were sold on July 14, 2005.

(g)  The property  executed a purchase and sale agreement on April 22, 2006 (see
     Note 13 in Item 8).


Item 7A.  Quantitative and Qualitative Disclosure about Market Risk

The  Registrant  does not believe there is a material risk  associated  with the
various interest rates associated with the mortgage notes as the majority of the
Local  Partnership  mortgage notes have fixed rates.  The  Registrant  currently
discloses in Item 8, Note 5 to the  financial  statements  the fair value of the
mortgage  notes  payable.  The  Registrant  does not have any other  market risk
sensitive instruments.


                                       10
<PAGE>



Item 8.    Financial Statements and Supplementary Data

<TABLE>
<CAPTION>

                                                                                                          Sequential
                                                                                                             Page
                                                                                                          ----------

<S>        <C>                                                                                                <C>
(a) 1.     Consolidated Financial Statements

           Report of Independent Registered Public Accounting Firm                                            12

           Consolidated Balance Sheets at March 31, 2006 and 2005                                             21

           Consolidated Statements of Income for the Years Ended March 31, 2006, 2005 and 2004                22

           Consolidated Statements of Changes in Partners' Capital (Deficit) for the Years Ended
             March 31, 2006, 2005 and 2004                                                                    23

           Consolidated Statements of Cash Flows for the Years Ended March 31, 2006, 2005 and 2004            24

           Notes to Consolidated Financial Statements                                                         25

</TABLE>

                                       11
<PAGE>



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Partners of
Patriot Tax Credit Properties L.P. and Subsidiaries




We have  audited the  accompanying  consolidated  balance  sheets of Patriot Tax
Credit  Properties L.P. and  Subsidiaries as of March 31, 2006 and 2005, and the
related  consolidated  statements of  operations,  changes in partners'  capital
(deficit) and cash flows for the years ended March 31, 2006,  2005 and 2004. The
consolidated  financial  statements are the  responsibility of the Partnership's
management.  Our  responsibility is to express an opinion on these  consolidated
financial statements based on our audits. For the years ended March 31, 2006 and
2005, we did not audit the financial statements of certain investee partnerships
which  represent  $6,800,462 and $9,074,073,  respectively,  in total assets and
$1,495,773,  $(470,468), and $(915,112),  respectively, of the net income (loss)
as of and for the years ended March 31, 2006,  2005 and 2004.  Those  statements
were audited by other  auditors whose reports have been furnished to us, and our
opinion,  insofar as it relates to those investee partnerships,  is based solely
on the reports of the other auditors.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (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.  The  Partnership  has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  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,  and the reports of the other auditors,  provide a reasonable  basis for
our opinion.

In our opinion,  based on our audits and the reports of the other auditors,  the
consolidated  financial  statements  referred to above  present  fairly,  in all
material respects,  the financial position of Patriot Tax Credit Properties L.P.
and  Subsidiaries  as of March  31,  2006 and  2005,  and the  results  of their
operations, changes in Partners' capital (deficit), and their cash flows for the
years  ended  March 31,  2006,  2005 and 2004,  in  conformity  with  accounting
principles generally accepted in the United States of America.


/s/ REZNICK GROUP, P.C.


Bethesda, Maryland
June 23, 2006


                                       12
<PAGE>



[Letterhead of Dickey, Wolf & Humbard, LLC]

INDEPENDENT AUDITORS' REPORT

To The Partners
RMB Limited Partnership

We have audited the  accompanying  balance sheets of RMB LIMITED  PARTNERSHIP (a
Texas  Limited  Partnership)  as of December 31, 2005 and 2004,  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 the standards of the Public  Company
Accounting Oversight Board (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.  The  Partnership  has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  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 RMB LIMITED  PARTNERSHIP as of
December  31,  2005 and 2004,  and the  results  of its  operations,  changes in
partners'  equity/(deficit)  and its cash  flows for the years  then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

/s/ DICKEY, WOLF & HUMBARD, LLC
Certified Public Accountants

Harrisonville, MO
January 26, 2006


                                       13
<PAGE>



[Letterhead of Dickey, Wolf & Humbard, LLC]

INDEPENDENT AUDITORS' REPORT

To The Partners
RMB Limited Partnership

We have audited the  accompanying  balance sheets of RMB LIMITED  PARTNERSHIP (a
Texas  Limited  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.  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 RMB 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.

/s/ DICKEY, WOLF & HUMBARD, LLC
Certified Public Accountants
Harrisonville, MO
January 21, 2004


                                       14
<PAGE>



[Letterhead of Coffman and Company, P.C.]

INDEPENDENT AUDITOR'S REPORT

To the Partners
Papillion Heights Apartments, L.P.
Springfield, MO 65804

We have audited the accompanying  balance sheet of Papillion Heights Apartments,
L.P.  (a  limited  partnership),  as of  December  31,  2005,  and  the  related
statements of income,  changes in partners' equity,  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  standards  of the Public  Company
Accounting Oversight Board (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.  The  Partnership  has determined
that it is not required to have,  nor we were  engaged to perform,  and audit of
its internal  control over  financial  reporting as a basis for designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  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 Papillion Heights  Apartments,
L.P. (a limited  partnership)  as of December 31,  2005,  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.

/s/ Coffman and Company, P.C.

Springfield, Missouri
February 16, 2006


                                       15
<PAGE>



[Letterhead of Schultz, Durham & Rapp, P.C.]

INDEPENDENT AUDITOR'S REPORT

To the Partners
Papillion Heights Apartments, L.P.
(A Limited Partnership)
Springfield, Missouri

We have audited the balance  sheets of  Papillion  Heights  Apartments,  L.P. (a
limited  partnership),  as of  December  31,  2003  and  2002,  and the  related
statements of  operations,  partners'  capital 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 Papillion Heights  Apartments,
L.P. (a 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.

/s/ Schultz, Durham & Rapp, P.C.
Springfield, Missouri
February 11, 2004


                                       16
<PAGE>



[Letterhead of Dickey, Wolf & Humbard, LLC]

INDEPENDENT AUDITORS' REPORT

To the Partners
Hill Top Homes Apartments Limited Partnership

We have audited the  accompanying  balance  sheets of HILL TOP HOMES  APARTMENTS
LIMITED  PARTNERSHIP,  (a Texas Limited Partnership) as of December 31, 2005 and
2004, 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  standards  of the Pubic  Company
Accounting Oversight Board (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.  The  Partnership  has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audit included  consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over  financial  reporting.  Accordingly,  we express no such opinion.  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 HILL TOP HOMES  APARTMENTS
LIMITED  PARTNERSHIP  as of December  31, 2005 and 2004,  and the results of its
operations,  changes in  partners'  equity/(deficit)  and its cash flows for the
years then ended, in conformity with accounting principles generally accepted in
the United States of America.

/s/ Dickey, Wolf & Humbard, LLC
Certified Public Accountants

Harrisonville, MO
January 26, 2006


                                       17
<PAGE>



[Letterhead of Dickey, Wolf & Humbard, LLC]

INDEPENDENT AUDITORS' REPORT

To the Partners
Hill Top Homes Apartments Limited Partnership

We have audited the  accompanying  balance  sheets of HILL TOP HOMES  APARTMENTS
LIMITED  PARTNERSHIP,  (a Texas Limited 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.  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 HILL TOP HOMES  APARTMENTS
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.

/s/ Dickey, Wolf & Humbard, LLC
Certified Public Accountants
Harrisonville, MO
January 21, 2004


                                       18
<PAGE>



[Letterhead of Dickey, Wolf & Humbard, LLC]

INDEPENDENT AUDITORS' REPORT

To the Partners
Brookland Park Plaza Limited Partnership

We have audited the  accompanying  balance sheet of BROOKLAND PARK PLAZA LIMITED
PARTNERSHIP (a Maryland Limited Partnership),  HUD Project No. 051-36617,  as of
December  31,  2003,  and  the  related  statements  of  operations,   partners'
equity/(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 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 BROOKLAND PARK PLAZA LIMITED
PARTNERSHIP  as of December 31,  2003,  and the results of its  operations,  the
changes in partners' equity/(deficit), and 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 21, 2004,  on our  consideration  OF BROOKLAND  PARK PLAZA LIMITED
PARTNERSHIP'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.

Our audit was  conducted  for the  purpose  of  forming  an opinion on the basic
financial statements taken as a whole. The accompanying supplemental information
on pages 14 through 24 is presented for purposes of  additional  analysis and is
not a required part of the basic  financial  statements of BROOKLAND  PARK PLAZA
LIMITED  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.

/s/ Dickey, Wolf & Humbard, LLC
Certified Public Accountants
Harrisonville, MO
January 21, 2004


                                       19
<PAGE>



[Letterhead of Barnes, Dennig & Co., Ltd.]

Report of Independent Certified Public Accountants

To the Partners
Compton Townhouses Limited Partnership

We have audited the accompanying  balance sheets of Compton  Townhouses  Limited
Partnership (An Ohio Limited Partnership), as of December 31, 2003 and 2002, and
the related statements of operations, changes in partners' capital (deficit) and
cash  flows  for the  years  then  ended.  These  financial  statements  are the
responsibility of the Partnership'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 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 Compton  Townhouses  Limited
Partnership 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.

/s/ Barnes, Dennig & Co., Ltd.
Cincinnati, Ohio
January 16, 2004


                                       20
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>

                                                                                           March 31,
                                                                                 ----------------------------
                                                                                     2006            2005
                                                                                 ------------    ------------
<S>                                                                              <C>             <C>
Assets:

  Investment in property:

   Land                                                                          $    694,449    $  4,005,633
   Building and improvements                                                       21,459,805      75,814,413
   Accumulated depreciation                                                       (10,579,027)    (30,492,001)
                                                                                 ------------    ------------

  Net investment in property                                                       11,575,227      49,328,045
  Cash and cash equivalents                                                         2,214,692         942,431
  Cash and cash equivalents held in escrow                                            300,903       1,987,739
  Deferred financing costs, net                                                       191,129       1,009,427
  Due from General Partner and its affiliates                                       1,030,863               0
  Other assets                                                                        213,052         593,336
                                                                                 ------------    ------------

Total assets                                                                     $ 15,525,866    $ 53,860,978
                                                                                 ============    ============

                                   LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Liabilities:

  Mortgage notes payable                                                         $ 10,243,965    $ 43,771,002
  Accrued interest payable                                                             77,583       2,358,266
  Other accrued expenses and liabilities                                            1,084,916       2,818,326
  Due to local general partners and affiliates of local partnerships                2,776,738       8,017,084
  Development fees payable                                                          1,151,510       1,151,510
  Real estate taxes payable                                                            88,711         571,993
  Due to General Partner and its affiliates                                         3,314,677      11,784,402
                                                                                 ------------    ------------

Total liabilities                                                                  18,738,100      70,472,583
                                                                                 ------------    ------------

Minority interests in local partnerships                                              183,027      (3,891,976)
                                                                                 ------------    ------------

Partners' capital (deficit):

  Limited partners (38,125 BUC$ issued and outstanding)                            (4,127,006)    (13,404,752)
  General partner (1 BUC$ issued and outstanding)                                     731,745         685,123
                                                                                 ------------    ------------

Total partners' capital (deficit)                                                  (3,395,261)    (12,719,629)
                                                                                 ------------    ------------

Total liabilities and partners' capital (deficit)                                $ 15,525,866    $ 53,860,978
                                                                                 ============    ============

</TABLE>

          See accompanying notes to consolidated financial statements.


                                       21
<PAGE>



                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                                                                Year Ended March 31,
                                                                      -----------------------------------------
                                                                         2006           2005*           2004*
                                                                      -----------    -----------    -----------
<S>                                                                   <C>            <C>            <C>
Operations

Revenues
Rental income                                                         $ 2,316,289    $ 2,411,172    $ 2,264,291
Other income                                                               32,501         27,848         46,116
Interest income                                                             5,046          4,042          3,857
                                                                      -----------    -----------    -----------

Total revenues                                                          2,353,836      2,443,062      2,314,264
                                                                      -----------    -----------    -----------

Expenses
Interest                                                                  600,272        627,827        658,709
Interest-related parties (Note 6 and 7)                                    38,612         38,612         38,612
Depreciation and amortization                                             711,019        713,930        669,929
Operating and other                                                       353,502        338,032        326,760
Taxes and insurance                                                       389,960        347,576        399,966
Repairs and maintenance                                                   500,246        500,651        453,016
General and administrative                                                508,018        497,546        492,289
General and administrative-related parties (Note 6)                       483,029        495,346        463,194
                                                                      -----------    -----------    -----------

Total expenses                                                          3,584,658      3,559,520      3,502,475
                                                                      -----------    -----------    -----------

Loss from operations before minority interest                          (1,230,822)    (1,116,458)    (1,188,211)
Minority interest in loss of local partnerships from operations             1,662          1,272          1,857
                                                                      -----------    -----------    -----------

Loss from operations                                                   (1,229,160)    (1,115,186)    (1,186,354)
                                                                      -----------    -----------    -----------

Discontinued operations:
Income (loss) from discontinued operations (net of minority
  interest and gain on sale of $14,824,690, $0 and $0, respectively)   10,553,528     (2,983,781)    (2,613,484)
                                                                      -----------    -----------    -----------


Net income (loss)                                                     $ 9,324,368    $(4,098,967)   $(3,799,838)
                                                                      ===========    ===========    ===========

Loss from operations - limited partners                               $(1,223,014)   $(1,109,610)   $(1,180,422)
Income (loss) from discontinued operations - limited partners          10,500,760     (2,968,862)    (2,600,417)
                                                                      -----------    -----------    -----------

Net income (loss)-limited partners                                    $ 9,277,746    $(4,078,472)   $(3,780,839)
                                                                      ===========    ===========    ===========

Number of BUC$ outstanding - limited partners                              38,125         38,125         38,125
                                                                      ===========    ===========    ===========

Loss from operations per BUC$ - limited partners                      $    (32.08)   $    (29.11)   $    (30.96)
Income (loss) from discontinued operations per BUC$ - limited
  partners                                                                 275.43         (77.87)        (68.21)
                                                                      -----------    -----------    -----------

Net income (loss) per BUC$ - limited partners                         $    243.35    $   (106.98)   $    (99.17)
                                                                      ===========    ===========    ===========
</TABLE>

* Reclassified for comparative purposes.

See accompanying notes to consolidated financial statements.


                                       22
<PAGE>



                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
        CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

<TABLE>
<CAPTION>

                                                                     Limited         General
                                                       Total         Partners        Partner           BUC$
                                                   ------------    ------------    ------------    ------------
<S>                                                <C>             <C>             <C>             <C>
Partners' capital (deficit)
April 1, 2003                                      $ (4,820,824)   $ (5,545,441)   $    724,617    $     38,126

Net Loss                                             (3,799,838)     (3,780,839)        (18,999)              0
                                                   ------------    ------------    ------------    ------------

Partners' capital (deficit)
March 31, 2004                                       (8,620,662)     (9,326,280)        705,618          38,126

Net Loss                                             (4,098,967)     (4,078,472)        (20,495)              0
                                                   ------------    ------------    ------------    ------------

Partners' capital (deficit)

March 31, 2005                                      (12,719,629)    (13,404,752)        685,123          38,126

Net income                                            9,324,368       9,277,746          46,622               0
                                                   ------------    ------------    ------------    ------------

Partners' capital (deficit)
March 31, 2006                                     $ (3,395,261)   $ (4,127,006)   $    731,745    $     38,126
                                                   ============    ============    ============    ============
</TABLE>

          See accompanying notes to consolidated financial statements.


                                       23
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                   Year Ended March 31,
                                                                       --------------------------------------------
                                                                           2006            2005            2004
                                                                       ------------    ------------    ------------
<S>                                                                    <C>             <C>             <C>
Cash flows from operating activities:
Net income (loss)                                                      $  9,324,368    $ (4,098,967)   $ (3,799,838)
                                                                       ------------    ------------    ------------
Adjustments to reconcile net income (loss) to net cash used in
  operating activities:
Gain on sale of property                                                (14,824,690)              0               0
Depreciation and amortization                                             1,884,192       2,412,369       2,440,364
Minority interest in income (loss) of local partnerships                  2,126,807      (1,095,727)     (1,048,921)
(Increase) decrease in cash held in escrow                               (5,801,152)       (765,438)         96,043
Increase (decrease) in real estate taxes payable                              7,630         397,975          (5,858)
Increase in accrued interest payable                                        241,752         177,522          58,326
Increase in other assets                                                 (1,130,310)       (209,528)        (16,353)
Decrease (increase) in other accrued expenses and liabilities             1,340,015         863,352        (150,028)
                                                                       ------------    ------------    ------------
Total adjustments                                                       (16,155,756)      1,780,525       1,373,573
                                                                       ------------    ------------    ------------

Net cash used in operating activities                                    (6,831,388)     (2,318,442)     (2,426,265)
                                                                       ------------    ------------    ------------

Cash flows from investing activities:

Investments in property                                                     (18,162)        (15,831)        (52,236)
Proceeds from sale of property                                           45,500,000               0               0
Costs paid relating to sale of property                                  (7,671,272)              0               0
                                                                       ------------    ------------    ------------


Net cash provided by (used in) investing activities                      37,810,566         (15,831)        (52,236)
                                                                       ------------    ------------    ------------

Cash flows from financing activities
Proceeds from mortgage notes                                                      0               0       1,197,500
Payments on mortgage notes                                              (23,565,444)       (926,116)     (1,794,597)
Increase in deferred costs                                                        0               0          (9,362)
(Repayments) Advances from General Partner                               (8,156,642)      1,348,459       1,663,375
Increase in due to Local General Partners and affiliates of
  Local Partnerships,
  General Partner and its affiliates                                      2,015,169       1,074,974         847,278
Decrease in due to Local General Partners and affiliates of
  Local
  Partnerships, General Partner and its affiliates                                0               0         (59,353)
Advance from local limited partner                                                0         563,334         505,316
Decrease (increase) in capitalization of consolidated
  subsidiaries attributable
  to minority interest                                                            0               0            (557)
                                                                       ------------    ------------    ------------

Net cash used in (provided by) financing activities                     (29,706,917)      2,060,651       2,349,600
                                                                       ------------    ------------    ------------

Net increase (decrease) in cash and cash equivalents                      1,272,261        (273,622)       (128,901)

Cash and cash equivalents at beginning of year                              942,431       1,216,053       1,344,954
                                                                       ------------    ------------    ------------
Cash and cash equivalents at end of year                               $  2,214,692    $    942,431    $  1,216,053
                                                                       ============    ============    ============
Supplemental disclosures of cash flow information:
Interest paid                                                          $  5,677,068    $  4,626,705    $  4,696,764
                                                                       ============    ============    ============

Summarized below are the components of the gain on sale of property:

Decrease in investment in property, net of accumulated
  depreciation                                                         $ 36,075,214    $          0    $          0
Decrease in deferred costs                                                  629,872               0               0
Decrease in other assets                                                    479,731               0               0
Decrease in cash held in escrow                                           7,487,988               0               0
Increase in other liabilities                                             4,920,129               0               0
Decrease in real estate taxes payable                                      (490,912)              0               0
Decrease in accrued interest payable                                     (2,522,435)              0               0
Decrease in mortgage notes payable                                       (9,961,593)              0               0
Decrease in due to Local General Partners and affiliates of
  Local Partnerships,
  General Partner and its affiliates                                     (5,698,828)              0               0
Decrease in due to General Partner and affiliates                        (2,192,053)              0               0
Noncash contribution from sale to related party                           1,948,197               0               0
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       24
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


NOTE 1 - General

Patriot  Tax  Credit  Properties  L.P.,  a  Delaware  limited  partnership  (the
"Partnership"),  was formed on May 3, 1989,  and will  terminate on December 31,
2029,  unless terminated sooner under the provisions of the Amended and Restated
Agreement of Limited Partnership (the "Partnership Agreement").  The Partnership
was  formed  to  invest  as a  limited  partner  in other  partnerships  ("Local
Partnerships"  or  "subsidiaries")   owning  apartment   complexes   ("Apartment
Complexes" or  "Properties")  that are eligible for the  low-income  housing tax
credit or the historic  rehabilitation  tax credit ("Tax  Credit").  The general
partner of the  Partnership is RCC Partners 96, L.L.C.  (the "General  Partner")
and is an affiliate of CharterMac Capital LLC ("CharterMac  Capital")  (formerly
known as Related Capital Company LLC). On November 17, 2003, CharterMac acquired
CharterMac Capital,  which is the parent of RCC Manager LLC, the managing member
of the  General  Partner.  Pursuant  to  the  acquisition,  CharterMac  acquired
controlling  interests in the General  Partner.  This acquisition did not affect
the  Partnership  or its day-to-day  operations,  as the majority of the General
Partner's  management team remained unchanged.  On November 8, 2005,  CharterMac
announced that Stuart J. Boesky would step down as Chief  Executive  Officer and
trustee of CharterMac.  Upon his stepping down,  which was effective on November
15, 2005, he also resigned from his position as Member, Executive Vice President
and Chief Operating Officer of the General Partner. Mr. Boesky will stay on as a
consultant  to  CharterMac  for the  next  year in  order  to  ensure  a  smooth
transition.  On March 14,  2006,  CharterMac's  Board of Trustees  named Marc D.
Schnitzer the Chief Executive  Officer,  effective  immediately.  Mr.  Schnitzer
replaced  Stephen M. Ross,  who had served as interim  Chief  Executive  Officer
since Stuart J. Boesky resigned in November of 2005. Mr. Schnitzer also replaced
Mr. Boesky as Member,  Executive Vice President and Chief  Operating  Officer of
the General Partner.  Independence SLP L.P. ("SLP"),  an affiliate of CharterMac
Capital, is the special limited partner. The SLP acts as special limited partner
of each Local  Partnership  entitling  it to certain  rights with respect to the
operation  and  management  of each Local  Partnership.  At March 31, 2006,  the
Partnership has investments in five Local  Partnerships.  Through the year ended
March 31, 2006, the Partnership has sold the Property and the related assets and
liabilities of three Local Partnerships (see Note 11 for discussion of sales).


NOTE 2 - Summary of Significant Accounting Policies

a) Basis of Accounting and Principles of Consolidation

The books and records of the  Partnership are maintained on the accrual basis of
accounting in accordance with accounting  principles  generally  accepted in the
United States of America.  The preparation of financial statements in conformity
with accounting  principles  generally  accepted in the United States of America
requires the General Partner to make estimates and  assumptions  that affect the
reported  amounts of assets and  liabilities  and the  disclosure  of contingent
assets and  liabilities  at the date of the financial  statements as well as the
reported  amounts of revenues and expenses during the reporting  period.  Actual
results could differ from those estimates.

The consolidated  financial  statements  include the accounts of the Partnership
and 8 subsidiary  partnerships,  in which the Partnership is a limited  partner,
with an ownership  interest  ranging  from  approximately  66.5% to 98.99%.  All
intercompany  accounts and transactions  with the subsidiary  partnerships  have
been eliminated in consolidation.  All subsidiary partnerships have fiscal years
ending December 31. The Partnership has a controlling  financial interest in the
subsidiary  partnerships through its rights to remove the general partner of the
subsidiary  partnerships  and to approve  certain major  operating and financial
decisions.  These  rights  may  be  exercised  by  the  General  Partner  of the
Partnership and/or an affiliate, which affiliate has a contractual obligation to
act on behalf of the Partnership.

Minority interest in Local Partnerships relates to the general partner interests
in the  Local  Partnerships  (the  "Local  General  Partners")  not owned by the
Partnership. The Local General Partners and their affiliates have advanced funds
to the operating  partnerships  under the terms of various  deficit  guarantees,
which are  reported  as a liability  in the  accompanying  consolidated  balance
sheets.  Therefore, the Partnership continues to allocate losses to the minority
interests to the extent of the Local General Partners'  capital  investment plus
advances.  The  local  general  partner  advances  generally  carry a  repayment
priority from distributable cash flow generated by the local partnerships.

b)  Investment in Property

The  impairment  of  Properties  to be held and used is determined to exist when
estimated amounts recoverable through future operations on an undiscounted basis
are below the  Properties'  carrying  value.  If a Property is  determined to be
impaired,  it is recorded at the lower of its  carrying  value or its  estimated
fair value.

The  determination  of  estimated  fair value is based not only upon future cash
flows,  which rely upon  estimates and  assumptions  including  expense  growth,
occupancy and rental rates, and Tax Credits, but also upon market capitalization
and  discount  rates as well as other  market  indicators.  However,  changes in
market conditions and circumstances may occur in the near term which would cause
these  estimates and  assumptions  to change,  which,  in turn,  could cause the
amounts ultimately realized upon the sale or other disposition of the Properties
to differ  materially  from their  estimated  fair value.  Such changes may also
require write-downs in future years.

The cost of buildings and  improvements is depreciated  using the  straight-line
method over their estimated useful lives, which range from 27.5 to 40 years.

c)  Cash and Cash Equivalents

Cash and cash equivalents include money market funds with original maturities of
three months or less from the date of acquisition whose cost approximates market
value.


                                       25
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



d)  Cash and Cash Equivalents Held in Escrow

Cash and cash equivalents held in escrow include  restricted funds with original
maturities of three months or less from the date of acquisition held for payment
of real estate taxes and insurance,  tenant  security  deposits and  replacement
reserves.

e)  Revenue Recognition

Rental income is earned  primarily under standard  residential  operating leases
and is typically  due the first day of each month,  but can vary by property due
to the terms of the tenant leases.  Rental income is recognized  when earned and
charged to tenant's accounts  receivable if not received by the due date. Rental
payments  received in advance of the due date are deferred until earned.  Rental
subsidies  are  recognized  as  rental  income  during  the month in which it is
earned.

Other  revenues are  recorded  when earned and consist of the  following  items:
Interest  income  earned on cash and cash  equivalent  balances and cash held in
escrow balances,  income from forfeited security deposits, late charges, laundry
and vending income and other rental related items.

f)  Income Taxes

The  Partnership  is not  required to provide  for, or pay, any Federal or state
income taxes.  Income tax  attributes  that arise from its operations are passed
directly  to the  partners.  The  Partnership  may be subject to other state and
local taxes in jurisdictions in which it operates.  For income tax purposes, the
Partnership's year ends on December 31.

g) Profits and Loss Allocations/Distributions

Net income or loss is  allocated  99.5% to the limited  partners  and .5% to the
General Partner.

Distributions  of cash may be made in accordance with the Partnership  Agreement
and, if made, are allocated 99.5% to the limited partners and .5% to the General
Partner. As of March 31, 2006, no distributions have been paid.

h)  New Accounting Pronouncements

In June 2005, the Financial Accounting Standards Board ("FASB") issued Statement
of  Financial  Accounting  Standards  No.  154,  "Accounting  Changes  and Error
Corrections" ("FAS 154"). FAS 154 replaces  Accounting  Principles Board Opinion
No.  20,  "Accounting  Changes"  ("APB  No.  20")  and  Statement  of  Financial
Accounting  Standards No. 3, "Reporting  Accounting Changes in Interim Financial
Statements".  APB No. 20  previously  required  that most  voluntary  changes in
accounting  principle be  recognized  by  including in the current  period's net
income the  cumulative  effect of changing to the new accounting  principle.  In
contrast,  FAS 154 requires that a voluntary  change in accounting  principle be
applied  retrospectively  to prior periods'  financial  statements,  unless this
would  be  impracticable.  In  addition,  FAS 154  makes a  distinction  between
retrospective  application  of an accounting  principle and the  restatement  of
financial statements to reflect the correction of an error. FAS 154 is effective
for accounting  changes and correction of errors made in fiscal years  beginning
after December 15, 2005. The Partnership does not expect the adoption of FAS 154
to have a material impact on its consolidated results of operations.

In June 2005, the FASB issued Emerging Issues Task Force No. 04-5,  "Determining
Whether a General  Partner,  or the  General  Partners  as a Group,  Controls  a
Limited  Partnership  or Similar  Entity When the Limited  Partners Have Certain
Rights" ("EITF No. 04-5").  EITF No. 04-5 replaces  counterpart  requirements in
the  Statement of Position  78-9,  which  provides  guidance on  accounting  for
investments  in real estate  ventures and limited  partnerships.  Under EITF No.
04-5, the general  partner's  control would be overcome if the limited  partners
have  either (i)  "kick-out  rights"-  the right to dissolve  or  liquidate  the
partnership  or otherwise  remove the general  partner  "without  cause" or (ii)
"participating  rights" - the right to  effectively  participate  in significant
decisions  made  in the  ordinary  course  of the  partnership's  business.  The
kick-out  rights and the  participating  rights must be  substantive in order to
overcome the general partner's  control.  EITF No. 04-5 is now effective.  Since
the Partnership's  financial  statements are presented on a consolidated  basis,
the adoption of EITF No. 04-5 has not had a material effect on the Partnership's
consolidated results of operations.


                                       26
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


NOTE 3 - Costs, Fees and Expenses

a)  Deferred Financing Costs

Deferred financing costs include amounts paid for services rendered in arranging
the financing for the Local  Partnerships.  These costs were capitalized and are
being amortized over the lives of the related debt.

The components of deferred financing costs and their periods of amortization are
as follows:

<TABLE>
<CAPTION>

                                                      March 31,
                                            ----------------------------       Period
                                               2006             2005          (Months)
                                            ----------       -----------      --------
<S>                                         <C>              <C>                 <C>
Deferred financing costs                    $  421,989       $ 5,328,863         **
Less:  Accumulated amortization               (230,860)       (4,319,436)
                                            ----------       -----------

                                            $  191,129       $ 1,009,427
                                            ==========       ===========

</TABLE>

** Over the life of the respective mortgages.

Amortization  of deferred  financing  costs from  operations for the years ended
March  31,  2006,  2005 and 2004  amounted  to  $14,498,  $14,499  and  $27,537,
respectively.

During the years  ended  March 31, 2006 and 2005,  there were net  decreases  in
deferred   costs  of  $4,906,874   and  $0  and  net  decreases  in  accumulated
amortization  of  $4,277,002  and  $0,  respectively,  due  to  write-offs  from
discontinued operations.

b)  Management Fees

Each  individual  Property  has a  managing  agent who  performs  the  necessary
functions in operating the Property.  The property  management fee is equal to a
percentage of the annual gross revenues of a Property paid in  consideration  of
the property management services provided (See Note 6).

The General Partner is entitled to receive a partnership management fee, payable
from operations and reserves,  in an amount not to exceed the difference between
..375% per annum of Invested Assets (as defined in the Partnership Agreement) and
the local administrative fee payable to the SLP. This partnership management fee
is for  administering  the  affairs  of the  Partnership  (See  Note 6).  Unpaid
portions of the management fee for any year accrue without interest.

c)  General and Administrative

The  Partnership  reimburses  the General  Partner and its affiliates for actual
Partnership  operating  expenses payable by or allocable to the Partnership (See
Note 6). The Partnership  also pays amounts  directly to unrelated third parties
for certain operating expenses.


                                       27
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


NOTE 4 - Investment in Property

The Partnership's Properties and related debt from operations at March 31 were:

<TABLE>
<CAPTION>

                                                        Net Investment in Property    Mortgage Notes Payable
                                                        --------------------------   -------------------------
              Description (a)                               2006          2005          2006          2005
---------------------------------------------           ------------   -----------   -----------   -----------
<S>                                                     <C>           <C>           <C>           <C>
Apartment Complexes:

RMB Limited Partnership (Hubbard's Ridge) (c)           $         0   $ 2,762,678   $         0   $ 4,473,400
 Garland, TX
Cutler Canal II Associates, Ltd. (c)                              0     7,568,352             0     5,610,221
 Miami, FL
Diamond Street Venture (b)                                1,264,341     1,386,121     2,841,492     2,866,414
 Philadelphia, PA
Papillion Heights Apartments L.P.                         1,346,855     1,400,163     1,137,316     1,160,969
 Papillion, NE
Hill Top Homes Apartments Limited Partnership             5,161,645     5,346,661     2,883,887     3,001,742
 Arlington, TX
Palm Beach Apartments, Ltd. (Summer Creed Villas) (c)             0    26,743,429             0    23,202,835
 West Palm Beach, FL
Brookland Park Plaza Limited Partnership                  2,892,474     3,117,193     2,249,935     2,285,018
 Richmond, VA
Compton Townhouses Limited Partnership                      909,912     1,003,448     1,131,335     1,170,403
 Cincinnati, OH                                         -----------   -----------   -----------   -----------


                                                        $11,575,227   $49,328,045   $10,243,965   $43,771,002
                                                        ===========   ===========   ===========   ===========

</TABLE>

(a) The  Partnership  holds  a 98%  interest  in  Hill  Top  Homes  and  Compton
    Townhouses  and a 98.99%  interest  in  Cutler  Canal  II,  Diamond  Street,
    Papillion Heights and Brookland Park Plaza.

(b) The  investment  in  property  relating to the  Diamond  Street  Venture was
    reduced by $2,700,000 as of March 31, 1995 representing a loss on impairment
    of assets.

(c) The property  and the related  assets and  liabilities  were sold during the
    year ended March 31, 2006.


NOTE 5 - Mortgage Notes Payable

Mortgage notes are collateralized by land, buildings and improvements and leases
related thereto. Annual principal payment requirements for each of the next five
years  ending  December  31,  the  date at  which  the  Local  Partnerships  are
reporting, and thereafter are as follows:

                                              Amount
                                           ------------

2006                                       $    262,461
2007                                          1,327,644
2008                                          1,314,158
2009                                            247,147
2010                                            267,996
Thereafter                                    6,824,559
                                           ------------
                                           $ 10,243,965
                                           ============

Mortgage  notes  consist of both first  mortgages  and support loans (second and
third mortgages). First mortgages amounting to $7,803,965 bear interest at rates
ranging  from 5.83% to 9.05% and have final  maturities  ranging  from August 1,
2007 to May 1, 2031.  The support  loans include two loans  totaling  $2,440,000
maturing  on  December  15,  2014 and March 1, 2031,  the latter of which  bears
interest at 1%, and the former being non-interest bearing.

In April 2003,  Papillion  Heights  refinanced  its  outstanding  mortgage  note
payable in the amount of $958,143.  The new mortgage in the amount of $1,197,500
is payable in monthly  installments of $7,679 including  interest at the rate of
5.95% per annum through March 17, 2008 with a balloon  payment of  approximately
$1,085,500 due April 17, 2008.

At March 31, 2006 and 2005,  the  estimated  fair values of the  mortgage  notes
payable were  $7,402,473 and  $38,405,367,  respectively.  These  estimates were
based  upon the  present  value  of  expected  cash  flows  discounted  at rates
currently  available to the Local  Partnerships  for similar  loans.  Fair value
estimates  are  made at a  specific  point in time,  based  on  relevant  market
information,  and are subjective in nature and involve uncertainties and matters


                                       28
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


of significant  judgment.  Accordingly,  the estimates  presented herein are not
necessarily indicative of the amounts that the Local Partnerships would pay upon
maturity or disposition of the loans.


NOTE 6 - Related Parties

An affiliate  of the General  Partner has a .01%  interest as a special  limited
partner in each of the  subsidiary  partnerships.  An  affiliate  of the General
Partner also has a minority interest in certain Local Partnerships.

A)  General and Administrative Related Party Expenses

The costs incurred to related  parties from operations for the years ended March
31, 2006, 2005 and 2004 were as follows:

<TABLE>
<CAPTION>

                                                            Years Ended March 31,
                                                       ------------------------------
                                                         2006       2005*      2004*
                                                       --------   --------   --------
<S>                                                    <C>        <C>        <C>
Partnership management fees (a)                        $153,911   $236,760   $252,986
Expense reimbursement (b)                               211,161    134,454     95,165
Local administrative fees (d)                            10,000     12,500     12,500
                                                       --------   --------   --------
Total general and administrative - General Partner      375,072    383,714    360,651
                                                       --------   --------   --------
Property management fees incurred to affiliates of
   the subsidiary partnerships' general partners (c)    107,957    111,632    102,543
                                                       --------   --------   --------
Total general and administrative - related parties     $483,029   $495,346   $463,194
                                                       ========   ========   ========

</TABLE>

* Reclassified for comparative purposes.

The costs incurred to related parties from discontinued operations for the years
ended March 31, 2006, 2005 and 2004 were as follows:

<TABLE>
<CAPTION>

                                                            Years Ended March 31,
                                                       ------------------------------
                                                         2006       2005       2004
                                                       --------   --------   --------
<S>                                                    <C>        <C>        <C>
Local administrative fees (d)                          $  6,709   $  7,750   $  7,750
                                                       --------   --------   --------
Total general and administrative - general partner        6,709      7,750      7,750
                                                       --------   --------   --------
Property management fees incurred to affiliates of
   the subsidiary partnerships' general partners (c)    208,022    272,824    290,776
                                                       --------   --------   --------
Total general and administrative - related parties     $214,731   $280,574   $298,526
                                                       ========   ========   ========

</TABLE>

(a) A  Partnership  management  fee for managing the affairs of the  Partnership
equal to 0.375% of invested  assets is payable from  operations  and reserves to
the General Partner and its affiliates.  Partnership management fees owed to the
General  Partner  amounting to  approximately  $1,292,000  and  $1,138,000  were
accrued and unpaid as of March 31, 2006 and 2005, respectively.

(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership   operating  expenses  incurred  by  the  General  Partner  and  its
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partner  performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary
partnerships' performance. Expense reimbursements and asset monitoring fees owed
to the General Partner and its affiliates  amounting to  approximately  $273,000
and  $105,000   were  accrued  and  unpaid  as  of  March  31,  2006  and  2005,
respectively.

(c) As of  December  31,  2005,  the  properties  owned  by  six  of  the  Local
Partnerships  were managed by a Local General  Partner or its affiliates and one
Local Partnership  (which was sold July 14, 2005) was managed by an affiliate of
the General Partner and Local General Partner. Property management fees incurred
by subsidiary  partnerships amounted to $338,637,  $410,854 and $431,166 for the
years ended March 31, 2006, 2005 and 2004, respectively. Of these fees $315,979,
$384,456 and $393,319 were earned by  affiliates of the Local General  Partners,
(which  includes  $208,022,  $272,824  and  $290,776  relating  to  discontinued
operations)  of which  $97,956,  $167,238  and  $159,865  were  also  earned  by
affiliates of the Partnership.

(d)  Independence  SLP  L.P.,  a  special  limited  partner  of  the  subsidiary
partnerships,  is entitled to receive a local administrative fee of up to $5,000
per year from each subsidiary partnership.

Substantially all of the existing  liabilities of the Partnership are payable to
the General  Partner and/or its  affiliates.  Though the amounts  payable to the
General Partner and/or its affiliates are contractually  currently payable,  the
Partnership  anticipates that the General Partner and/or its affiliates will not
require the payment of these contractual  obligations until capital reserves are
in excess of the aggregate of then  existing  contractual  obligations  and then
anticipated future foreseeable  obligations of the Partnership.  The Partnership
is  dependent  upon the  support  of the  General  Partner  and  certain  of its
affiliates  in order to meet  its  obligations  at the  Partnership  level.  The
General  Partner and these  affiliates  have agreed to continue such support for
the foreseeable future.


                                       29
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


B)  Interest Related Party Expenses

Interest expense incurred to related parties from operations for the years ended
March 31, 2006, 2005 and 2004 were as follows:

<TABLE>
<CAPTION>

                                                 Years Ended March 31,
                                         ------------------------------------
                                           2006           2005         2004
                                         --------       --------     --------
<S>                                      <C>            <C>          <C>
Hill Top (a)                             $ 38,612       $ 38,612     $ 38,612
                                         ========       ========     ========

</TABLE>

a) In  connection  with  the  construction,  financing  and  development  of the
apartment  complex,  one of  the  Local  General  Partners  of  Hill  Top  Homes
Apartments Limited Partnership ("Hill Top") made a loan with a principal balance
at March 31,  2006 of $426,647  bearing  interest at 9.05%.  The  principal  and
accrued  interest  are due at the  earlier  of the  sale or  refinancing  of the
property or December 31,  2007.  Interest  expense  incurred to Hill Top's Local
General  Partners and their  affiliates for the years ended March 31, 2006, 2005
and 2004  are  included  in the  line  item  "Interest-related  parties"  in the
financial statements.

Interest  expense incurred to related parties from  discontinued  operations for
the years ended March 31, 2006, 2005 and 2004 was as follows:

<TABLE>
<CAPTION>

                                                 Years Ended March 31,
                                         ------------------------------------
                                           2006           2005         2004
                                         --------       --------     --------
<S>                                      <C>            <C>          <C>
Summer Creek Villas (b)                  $658,327       $811,153     $668,373
                                         ========       ========     ========

</TABLE>

b) During the year ended March 31, 2006, the General  Partner and its affiliates
advanced $550,000 to the Partnership to make operating  advances to Summer Creek
Villas Local Partnership ("Summer Creek Villas"). As of March 31, 2006 and 2005,
total  advances   outstanding  to  Summer  Creek  Villas  were   $1,618,835  and
$10,743,656,  respectively.  The advances were  unsecured,  bearing  interest at
prime +2%, and were payable from cash flow as defined by the limited partnership
agreement of Summer Creek Villas. In addition, the Local General Partners made a
loan to Summer Creek Villas in connection  with the  construction  financing and
development  of the Property in the amount of  $3,700,000,  bearing  interest at
prime + 2%,  with  repayments  to be made from  available  cash  flows or out of
available net sale or refinancing  proceeds of Summer Creek Villas.  As of March
31,  2006 and 2005,  the  outstanding  balance of this loan was  $1,519,567  and
$3,700,000,  respectively.  Interest  expense  recorded by Summer  Creek  Villas
relating to such advances and loans for the years ended March 31, 2006, 2005 and
2004 is included in the line item  "Interest-related  parties" in the  financial
statements (see Note 12).

On July 14, 2005, the Property and the related assets and  liabilities of Summer
Creek  Villas were sold to an  unrelated  third party  purchaser  (see Note 11).
Certain  advances and loans  (including  accrued  interest) made to Summer Creek
Villas were repaid from  available  net sale  proceeds as defined by the limited
partnership agreement of Summer Creek Villas.


NOTE 7 - Local General Partners and Affiliates of Local Partnerships

Due to Local  General  Partners and  affiliates of Local  Partnerships  includes
amounts payable for accrued  interest,  advances,  property  management fees and
operating loans made in accordance with operating deficit guaranty agreements.

The  Partnership  had negotiated  operating  deficit  guaranty  agreements  with
certain  Local  General  Partners  and/or their  affiliates by which the general
partners and/or their affiliates of the Local  Partnerships  have agreed to fund
operating  deficits for a specified  period of time.  The terms of the operating
deficit  guaranty  agreements  varied for each Local  Partnership,  with maximum
dollar  amounts to be funded for a  specified  period of time,  generally  three
years,  commencing on the  break-even  date. As of March 31, 2006, all operating
deficit guaranty agreements have expired.

The Local General Partner of Summer Creek Villas was obligated to fund operating
deficits  pursuant to two separate  operating deficit guaranty  agreements.  All
operating  deficit  guaranty  agreements  have either been fully  funded or have
expired.  In prior years the General  Partner had elected to treat all  advances
made under the operating deficit guaranty agreements as non-repayable.

At both March 31, 2006 and 2005,  development fees of $1,151,510 were payable to
various Local General Partners.


                                       30
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


NOTE 8 - Quarterly Financial Information (Unaudited)
<TABLE>
<CAPTION>
                                                    First Quarter    Second Quarter  Third Quarter   Fourth Quarter
                                                    -------------    --------------  -------------   --------------
<S>                                                  <C>              <C>             <C>              <C>
              Fiscal Year 2006
------------------------------------------------
Operations:
Total Revenue                                        $   575,985      $   582,537     $   557,053      $   638,261
                                                     ===========      ===========     ===========      ===========
Loss from operations                                 $  (308,496)     $  (269,822)    $  (290,536)     $  (360,306)
                                                     ===========      ===========     ===========      ===========
Loss from operations per BUC$ - limited partners     $     (8.05)     $     (7.04)    $     (7.58)     $     (9.41)
                                                     ===========      ===========     ===========      ===========

Discontinued Operations:
Total Revenue                                        $ 2,031,415      $ 2,153,973     $   911,893      $   913,613
                                                     ===========      ===========     ===========      ===========
(Loss) income from discontinued operations           $  (501,358)     $10,336,609**   $   (62,185)     $   780,462
                                                     ===========      ===========     ===========      ===========
(Loss) income from discontinued operations per
   BUC$ - limited partners                           $    (13.08)     $    269.77     $     (1.62)     $     20.36
                                                     ===========      ===========     ===========      ===========

Net (loss) income                                    $  (809,854)     $10,066,787     $  (352,721)     $   420,156
                                                     ===========      ===========     ===========      ===========
Net (loss) income per BUC$                           $    (21.13)     $    262.73     $     (9.20)     $     10.95
                                                     ===========      ===========     ===========      ===========

              Fiscal Year 2005*
------------------------------------------------
Operations:
Total Revenue                                        $   612,729      $   635,605     $   611,043      $   583,685
                                                     ===========      ===========     ===========      ===========
Loss from operations                                 $  (273,478)     $  (245,393)    $  (255,920)     $  (340,395)
                                                     ===========      ===========     ===========      ===========
Loss from operations per BUC$ - limited partners     $     (7.14)     $     (6.40)    $     (6.68)     $     (8.89)
                                                     ===========      ===========     ===========      ===========

Discontinued Operations:
Total Revenue                                        $ 1,977,119      $ 2,034,537     $ 1,932,903      $ 2,568,163
                                                     ===========      ===========     ===========      ===========
Loss from discontinued operations                    $  (587,984)     $  (637,166)    $  (693,476)     $(1,065,155)
                                                     ===========      ===========     ===========      ===========
Loss from discontinued operations per BUC$ -
  limited partners                                   $    (15.34)     $    (16.63)    $    (18.10)     $    (27.80)
                                                     ===========      ===========     ===========      ===========

Net loss                                             $  (861,462)     $  (882,559)    $  (949,396)     $(1,405,550)
                                                     ===========      ===========     ===========      ===========
Net loss per BUC$                                    $    (22.48)     $    (23.03)    $    (24.78)     $    (36.69)
                                                     ===========      ===========     ===========      ===========
</TABLE>

*    Reclassified for comparative purposes.
**   The second  quarter  income  from  discontinued  operations  and net income
     previously  reported on the 10-Q have been  adjusted to reflect a change in
     estimate  of  forgiveness  of debt  associated  with the  sale of  property
     totaling  approximately $3.6 million which had been reflected as a non-cash
     contribution by the general partner


NOTE 9 - Concentration of Credit Risk

The  Partnership  maintains  its cash in several  banks which are insured by the
Federal Deposit Insurance  Corporation  (FDIC) for a balance up to $100,000.  At
times during 2005, the account balances exceeded the FDIC limit.


NOTE 10 - Commitments and Contingencies

Subsidiary Partnership - Other

Summer Creek Villas Local Partnership
-------------------------------------
On July 14, 2005, the Property and the related assets and  liabilities of Summer
Creek Villas were sold to an unrelated  third party purchaser (see Note 11). The
buyer  absorbed  any and all costs to the Property  caused by recent  hurricanes
(see  below)  that had been  unrepaired  at  closing.  At the date of sale,  the
insurance claim with respect to the hurricane damage was in the resolution stage
with the insurance company;  all insurance proceeds will be paid to Summer Creek
Villas,  rather than the buyer, with no further potential  liability on the part
of Summer Creek Villas.

For several years prior to its sale,  Summer Creek Villas had experienced  lower
than expected economic occupancy levels, which resulted in recurring losses from
operations and adversely affected the liquidity of Summer Creek Villas.  Despite
an increase in rent levels during 2004 and 2003, Summer Creek Villas' operations
were  impeded  by its  inability  to  raise  rents  sufficiently  to pay for its
operating and debt costs. Summer Creek Villas was unable to obtain maximum rents
as potential  residents  were  restricted  based on county median income levels,


                                       31
<PAGE>


                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


which limit the maximum  income that a  prospective  resident  can earn.  Summer
Creek Villas had been  obligated,  since 1996, to repay  significant  amounts of
principal on its mortgage.

Effective  January 1, 1999, Summer Creek Villas entered into a funding agreement
with Palm Beach Investor,  L.P. (Summer Creek Villas' "Class C limited partner")
which  provided  for a series of loans to be made to Summer Creek Villas in each
of the years 1999,  2000 and 2001,  in amounts not to exceed  $2,000,000  in the
aggregate.  On  September 9, 2002,  Summer  Creek  Villas  entered into a second
funding  agreement with the Class C limited  partner which provided for a second
series of loans to Summer Creek Villas in each of the years 2002, 2003 and 2004,
in  amounts  not to  exceed  $1,500,000  in the  aggregate.  Although  no formal
agreements  were  reached  with the other  partners,  additional  loans from the
Partnership  (which is the Class A limited  partner) were obtained in accordance
with the loans to be provided  under the funding  agreement.  Loans made through
July 14, 2005 to fund operating  deficits total $14,493,656 and are comprised of
$10,993,656  from the Partnership  (which was eliminated in  consolidation)  and
$3,700,000  from the  Class C  limited  partner,  which  included  an  emergency
hurricane repair advance of $200,000.

On  September 3, 2004,  Summer  Creek  Villas was damaged by Hurricane  Frances.
Additional  damage was caused by  Hurricane  Jeanne on September  25, 2004.  The
hurricanes  caused  extensive  damage which  required  roofing to be replaced on
substantially all of the buildings of Summer Creek Villas.  In addition,  Summer
Creek Villas incurred costs to clean up after the hurricanes and costs to repair
damages to certain units. In total,  damages were estimated to be  approximately
$1,218,000.  As of July  14,  2005  the  insurance  claim  with  respect  to the
hurricane  damage had not been  settled and  repairs had not begun.  There was a
delay because the insurance  company was in the process of  determining  whether
the entire roof of each building  needs to be replaced.  Repairs,  which are now
the  responsibility  of the buyer, are expected to consist of removing  existing
roofing  material and  installing  new roofing  material.  Through July 14, 2005
Summer Creek Villas incurred $255,000 of costs associated with temporary repairs
and clean-up.


NOTE 11 - Sale of Properties

The Partnership is currently in the process of disposing of its investments.  It
is  anticipated  that this process will take a number of years.  As of March 31,
2006, the  Partnership  sold the Property and the related assets and liabilities
of three Local Partnerships.  In addition, the Partnership  subsequently entered
into an agreement for the sale of one Local Partnership (see Note 13). There can
be no  assurance  as to when  the  Partnership  will  dispose  of its  remaining
investments or the amount of proceeds which may be received.  However,  based on
the  historical  operating  results of the Local  Partnerships  and the  current
economic  conditions,  including  changes in tax laws,  it is unlikely  that the
proceeds  from such sales  received by the  Partnership  will be  sufficient  to
return to the limited partners their original investment.

On March 28, 2006, the Partnership  sold the Property and the related assets and
liabilities of Cutler Canal II to an affiliate of the Local General  Partner for
$9,000,000.  The sale resulted in a non-cash  contribution  by the Local General
Partner of  approximately  $1,948,000.  The sale resulted in the  liquidation of
Cutler  Canal  II.  As of the  sale  date,  Cutler  Canal  II had  property  and
equipment, at cost, of approximately  $11,540,000,  accumulated  depreciation of
approximately $4,279,000 and mortgage debt of approximately $5,538,000.


On January 18, 2006,  the  Partnership  sold the Property and the related assets
and liabilities of RMB Limited Partnership (Hubbard's Ridge) ("Hubbard's Ridge")
to a third  party  purchaser  for  $4,950,000.  The sale  resulted  in a gain of
approximately  $2,101,000.  The sale  resulted in the  liquidation  of Hubbard's
Ridge. As of the sale date, Hubbard's Ridge had property and equipment, at cost,
of   approximately   $5,311,000,   accumulated   depreciation  of  approximately
$2,719,000 and mortgage debt of approximately $4,423,000.

On July 14, 2005, the  Partnership  sold the Property and the related assets and
liabilities  of Summer Creek Villas to an unrelated  third party  purchaser  for
$45,500,000.  The sale resulted in a gain of approximately $12,784,000.  The net
proceeds  received  were  used  to  repay  the  mortgage  and  certain  advances
(including  accrued interest) made to Summer Creek Villas by the General Partner
and its affiliates,  as required by the limited partnership  agreement of Summer
Creek  Villas.  As of the sale  date,  Summer  Creek  Villas  had  property  and
equipment, at cost, of approximately  $40,833,000,  accumulated  depreciation of
approximately  $14,611,000 and mortgage debt of  approximately  $22,884,000.  On
March 31, 2006,  Summer Creek Villas had  receivables of $1,030,000 due from the
management company related to sales proceeds which is included in other assets.



                                       32
<PAGE>



                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006



NOTE 12 - Discontinued Operations

The  following  table   summarizes  the  results  of  operations  of  the  Local
Partnerships that are classified as discontinued operations.  For the year ended
March 31, 2006,  Summer Creek Villas,  Hubbard's  Ridge and Cutler Canal II were
classified  as  discontinued   operations  on  the  Consolidated  Statements  of
Operations. For the years ended March 31, 2005 and 2004, and in order to present
comparable  results to the year  ended  March 31,  2006,  Summer  Creek  Villas,
Hubbard's Ridge and Cutler Canal II were classified as discontinued operations.

Consolidated Statements of Discontinued Operations:
<TABLE>
<CAPTION>
                                                                       Years Ended March 31,
                                                           --------------------------------------------
                                                               2006            2005            2004
                                                           ------------    ------------    ------------
<S>                                                        <C>             <C>             <C>
Revenues

Rental income                                             $  5,601,466    $  7,739,511    $  7,612,343
Other                                                          407,011         767,079         824,612
Interest                                                         2,417           6,132           8,236
                                                          ------------    ------------    ------------
Total revenue                                                6,010,894       8,512,722       8,445,191
                                                          ------------    ------------    ------------

Expenses

Interest                                                     2,099,174       3,326,635       3,389,396
Interest-related parties (Note 6)                              658,327         811,153         668,373
Depreciation and amortization                                1,173,173       1,698,439       1,770,435
Operating and other                                            461,195         658,398         594,874
Taxes and insurance                                            873,192       1,207,681       1,101,850
Repairs and maintenance                                      1,258,352       2,195,475       2,030,184
General and administrative                                   1,415,443       2,412,603       2,252,101
General and administrative - related parties (Note 6)          214,731         280,574         298,526
                                                          ------------    ------------    ------------

Total expenses                                               8,153,587      12,590,958      12,105,739
                                                          ------------    ------------    ------------

(Loss) income before minority interest and gain on sale
  of property                                               (2,142,693)     (4,078,236)     (3,660,548)
Gain on sale of property                                    14,824,690               0               0
Minority interest in income (loss) of subsidiaries from
  discontinued operations                                   (2,128,469)      1,094,455       1,047,064
                                                          ------------    ------------    ------------
Total income (loss) from discontinued operations          $ 10,553,528    $ (2,983,781)   $ (2,613,484)
                                                          ============    ============    ============

Income (loss) - limited partners from discontinued
  operations                                              $ 10,500,760    $ (2,968,862)   $ (2,600,417)
                                                          ============    ============    ============

Number of BUC$ units outstanding                                38,125          38,125          38,125
                                                          ============    ============    ============

Income (loss) discontinued operations per BUC$            $     275.43    $     (77.87)   $     (68.21)
                                                          ============    ============    ============
</TABLE>

Cash flows from Discontinued Operations:
<TABLE>
<CAPTION>
                                                                       Years Ended March 31,
                                                           --------------------------------------------
                                                               2006            2005            2004
                                                           ------------    ------------    ------------
<S>                                                        <C>             <C>             <C>


Net cash used in operating activities                     $(17,466,785)   $ (2,150,461)   $ (2,225,135)

Net cash provided by(used in) investing activities        $ 54,679,811    $          0    $    (50,909)

Net cash (used in) provided by financing activities       $(32,692,293)   $  2,130,178    $  2,203,275
</TABLE>

                                       33
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006


NOTE 13 - Subsequent Event

On April 22, 2006, the Partnership entered into a purchase and sale agreement to
sell the property and the related assets and liabilities of Brookland Park Plaza
Limited Partnership ("Brookland") to an unaffiliated third party purchaser for a
purchase  price of  $2,800,000.  The sales  documents have been executed and the
initial  deposit funds are being held in escrow.  No assurance can be given that
the sale will actually occur.  The closing is expected to occur in July 2006. At
March 31, 2006,  Brookland  was not  classified as an asset held for sale, as it
did not meet the  criteria  under FAS 144,  "Accounting  for the  Impairment  or
Disposal of Long-Lived Assets". As of March 31, 2006, Brookland had property and
equipment,  at cost, of approximately  $6,418,000,  accumulated  depreciation of
approximately $3,557,000 and mortgage debt of approximately $2,250,000.


                                       34
<PAGE>

Item  9.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure

None

Item 9A.  Controls and Procedures

(a)  EVALUATION  OF  DISCLOSURE  CONTROLS AND  PROCEDURES.  The Chief  Executive
Officer and Chief  Financial  Officer of RCC  Partners 96,  L.L.C.,  the General
Partner of the Registrant,  has evaluated the  effectiveness of the Registrant's
disclosure  controls and procedures (as such term is defined in Rules  13a-15(e)
and 15d-15(e) under the Securities  Exchange Act of 1934, as amended  ("Exchange
Act")  as of the  end of the  period  covered  by  this  report.  Based  on such
evaluation,  such officer has concluded that, as of the end of such period,  the
Registrant's disclosure controls and procedures are effective.

(b) INTERNAL CONTROL OVER FINANCIAL  REPORTING.  There have not been any changes
in Registrant's internal control over financial reporting during the fiscal year
to which this report relates that have  materially  affected,  or are reasonably
likely to materially  affect,  the Registrant's  internal control over financial
reporting.

Item 9B.  Other Information

None.


                                    PART III


Item 10.  Directors and Executive Officers of the Registrant

There are no directors or executive  officers of the Registrant.  The Registrant
is managed by the General Partner.

The Registrant,  the Registrant's  General Partner and its members and executive
officers, and any persons holding more than ten percent of the Registrant's BUC$
are required to report their initial  ownership of such BUC$ and any  subsequent
changes in that ownership to the Securities and Exchange  Commission on Forms 3,
4 and 5. Such executive  officers,  directors,  and persons who own greater than
ten percent of the  Registrant's  BUC$ are required by  Securities  and Exchange
Commission  regulations to furnish the Registrant  with copies of all Forms 3, 4
and 5 they file.  All of these filing  requirements  were  satisfied on a timely
basis.  In making these  disclosures,  the  Registrant  relied solely on written
representations of the General Partner, and its members and certain officers, if
any, or copies of the reports they have filed with the  Securities  and Exchange
Commission  during  and  with  respect  to its  most  recent  fiscal  year.  The
Partnership  has not adopted a separate code of ethics  because the  Partnership
has  no  directors  or  executive  officers.  However,  the  parent  company  of
CharterMac Capital LLC ("CharterMac Capital') (formerly known as Related Capital
Company  LLC) which  controls  the General  Partner has adopted a code of ethics
(see http://www.chartermac.com).

The general  partner of the  Registrant is RCC Partners 96 L.L.C.  (the "General
Partner")  and is an  affiliate of  CharterMac  Capital.  Independence  SLP L.P.
("SLP"),  an affiliate of CharterMac Capital, is the special limited partner. On
November 17, 2003,  CharterMac acquired CharterMac Capital,  which is the parent
of RCC Manager LLC, the managing member of the General Partner.  Pursuant to the
acquisition,  CharterMac acquired controlling  interests in the General Partner.
This acquisition did not affect the Registrant or its day-to-day operations,  as
the majority of the General Partner's management team remained unchanged.

On November 8, 2005,  CharterMac announced that Stuart J. Boesky would step down
as Chief  Executive  Officer and trustee of CharterMac.  Upon his stepping down,
which was  effective on November 15, 2005, he also resigned from his position as
Member,  Executive  Vice  President and Chief  Operating  Officer of the General
Partner. Mr. Boesky will stay on as a consultant to CharterMac for the next year
in order to ensure a smooth transition. On March 14, 2006, CharterMac's Board of
Trustees  named  Marc  D.  Schnitzer  the  Chief  Executive  Officer,  effective
immediately.  Mr. Schnitzer  replaced Stephen M. Ross, who had served as interim
Chief Executive Officer since Stuart J. Boesky resigned in November of 2005. Mr.
Schnitzer also replaced Mr. Boesky as Member, Executive Vice President and Chief
Operating Officer of the General Partner.

The members and executive  officers of the General  Partner and their  positions
with regard to managing the Registrant are as follows:

     Name                                              Position
-----------------                           --------------------------------

Alan P. Hirmes                              Member, President and Chief
                                            Executive and Financial Officer

Marc Schnitzer                              Member, Executive Vice President
                                            and Chief Operating Officer

Glenn F. Hopps                              Treasurer

ALAN P. HIRMES,  51, has been a Certified  Public  Accountant  in New York since
1978.  Prior to  joining  CharterMac  Capital in October  1983,  Mr.  Hirmes was
employed by Wiener & Co.,  certified  public  accountants.  Mr. Hirmes is also a
Vice  President  of  CharterMac  Capital.  Mr.  Hirmes  graduated  from  Hofstra
University  with a Bachelor of Arts degree.  Mr. Hirmes also serves on the Board
of Trustees of CharterMac and American Mortgage Acceptance Company ("AMAC").

MARC D. SCHNITZER,  45, is responsible both for financial restructurings of real
estate properties and directing CharterMac Capital's  acquisitions of properties
generating  Housing Tax Credits.  Mr.  Schnitzer  received a Masters of Business
Administration  from The Wharton  School of the  University of  Pennsylvania  in
December 1987 before joining  CharterMac  Capital in January 1988.  From 1983 to


                                       35
<PAGE>

January 1986, he was a financial analyst for the First Boston Corporation in New
York.  Mr.  Schnitzer  graduated  summa cum laude with a Bachelor  of Science in
Business  Administration  from the School of Management at Boston  University in
May 1983. In March 2006, Mr. Schnitzer was appointed Chief Executive Officer and
President  of  CharterMac  Capital.  Mr.  Schnitzer  also serves on the Board of
Trustees of CharterMac Capital.

GLENN F. HOPPS, 43, joined  CharterMac  Capital in December,  1990, and prior to
that date was  employed  by Marks  Shron & Company  and  Weissbarth,  Altman and
Michaelson,  certified  public  accountants.  Mr. Hopps  graduated from New York
State University at Albany with a Bachelor of Science degree in Accounting.

Item 11.  Executive Compensation

The  Registrant  does not pay or accrue any fees,  salaries or any other form of
compensation  to directors and officers of the General Partner for its services.
Certain  executive  officers  and  directors  of  the  General  Partner  receive
compensation  from affiliates of the General  Partner,  not from the Registrant,
for  services  performed  for  various  affiliated  entities,  which may include
services  performed for the Registrant;  however,  the General Partner  believes
that any compensation  attributable to services  performed for the Registrant is
immaterial.  See Item 13, Certain  Relationships and Related  Transactions,  for
information regarding compensation to the General Partner.

Tabular information concerning salaries, bonuses and other types of compensation
payable to executive  officers has not been included in this annual  report.  As
noted  above,  the  Registrant  has  no  executive   officers.   The  levels  of
compensation  payable to the General Partners and/or their affiliates is limited
by the terms of the Partnership  Agreement and may not be increased therefrom on
a discretionary basis.

Item 12.  Security  Ownership of Certain  Beneficial  Owners and  Management and
Related Limited Partner Matters

As of June 2,  2006,  Mr.  Hirmes  owns  directly  or  beneficially  6.8% of the
economic  interest in the General  Partner.  100% of the voting  securities  are
owned by RCC Manager LLC, which is wholly owned by CharterMac Capital.

As of June 2, 2006, no director or executive officer of the General Partner owns
directly or beneficially any of the BUC$ issued by the Registrant.

As of June 2, 2006, no limited partner  beneficially owns more than five percent
(5%) of the BUC$ issued by the Registrant.

Item 13.  Certain Relationships and Related Transactions

The  Registrant  has and will  continue to have certain  relationships  with the
General Partner and its affiliates. However, there have been no direct financial
transactions  between the Registrant and the directors or executive  officers of
the General Partner.

Reference  is  made  to  Notes  1,  3, 6 and 7,  to the  consolidated  financial
statements in the Registrant's financial statements,  which identify the related
parties and discuss the services  provided by these parties and the amounts paid
or payable for their services.

Item 14.  Principal Accounting Fees and Services

Audit Fees
----------
The  aggregate   fees  billed  by  Reznick   Group,   P.C.  and  its  affiliates
(collectively,  "Reznick") for professional  services  rendered for the audit of
the Registrant's  annual  financial  statements for the years ended December 31,
2005 and 2004 and for the reviews of the  financial  statements  included in the
Registrant's  Quarterly  Reports on Form 10-Q for those  years were  $27,500 for
both years.

Audit Related Fees
------------------
None

Tax Fees
--------
The  aggregate  fees billed by Weiser LLP and its  affiliates  for  professional
services rendered for the preparation of the Registrant's annual tax returns for
the years ended December 31, 2005 and 2004 were $27,000 for both years.

All Other Fees
--------------
The aggregate fee billed by Reznick for consulting  services for the years ended
March 31, 2006 and 2005 was $0 and $8,717, respectively.

The  Registrant is not required to have,  and does not have, a stand alone audit
committee.


                                       36
<PAGE>

                                     PART IV


Item 15.  Exhibits, Financial Statement Schedules

<TABLE>
<CAPTION>

                                                                                      Sequential
                                                                                         Page
                                                                                      ----------
<S>       <C>                                                                             <C>
(a) 1.    Financial Statements
          --------------------

          Report of Independent Registered Public Accounting Firm                         12

          Consolidated Balance Sheets at March 31, 2006 and 2005                          21

          Consolidated  Statements of Income for the Years Ended March 31, 2006,
          2005 and 2004                                                                   22

          Consolidated  Statements of Changes in Partners' Capital (Deficit) for
          the Years Ended March 31, 2006, 2005 and 2004                                   23

          Consolidated  Statements  of Cash Flows for the Years  Ended March 31,
          2006, 2005 and 2004                                                             24

          Notes to Consolidated Financial Statements                                      25

(a) 2.    Financial Statement  Schedules  and Report of  Independent  Registered
          ----------------------------------------------------------------------
          Public Accounting Firm on Schedules
          -----------------------------------

          Report of Independent  Registered  Public Accounting Firm on Schedules          43

          Schedule III - Real Estate and Accumulated Depreciation                         44

          All other schedules have been omitted because they are not required or
          because  the  required  information  is  contained  in  the  financial
          statements or notes thereto.

(a) 3.    Exhibits
          --------

(3.1)     The  Partnership's  Agreement of Limited Partnership as adopted on May
          3, 1989 and Amendments thereto dated May 25, 1989 and June 21, 1989*

(3.2)     Amendment  Number 1  to  Prudential-Bache  Tax Credit  Properties L.P.
          Amended and Restated Agreement of Limited  Partnership,  dated October
          1, 1997***

(3.3)     Form  of   Amended  and  Restated  Agreement  of  Limited  Partnership
          (included in Prospectus as Exhibit A)**

(3.4)     Certificate  of  Limited  Partnership  as  filed  on May 3,  1989  and
          Amendments thereto dated May 25, 1989 and June 21, 1989*

(3.5)     Amendment  to  Certificate  of Limited  Partnership  dated  October 1,
          1997***

(10.1)    Form  of Purchase and Sale Agreement  pertaining to the Partnership's
          acquisition of Local Partnership Interests**

(10.2)    Form  of Amended and Restated Agreement of Local Limited  Partnership
          of Local Partnerships**

(21)      Subsidiaries  of the Registrant - the Local  Partnerships  set forth in
          Item 2 may be considered subsidiaries of the Registrant                         38

(31.1)    Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)                      41

(32.1)    Certification  Pursuant  to  Rule  13a-14(b)  or  Rule  15d-14(b)  and
          Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350)             42

(99.1)    Balance  Sheet  and Report of Independent Registered Public Accounting
          Firm, RCC Partners 96, LLC, March 31, 2006                                      46

</TABLE>

                                       37
<PAGE>

Item 15.  Exhibits, Financial Statement Schedules (continued)

<TABLE>
<CAPTION>

                                                                 Jurisdiction
Subsidiaries of the Registrant (Exhibit 21)                    of Organization
------------------------------                                 ---------------
<S>                                                                  <C>
Diamond Street Venture                                               PA
Papillion Heights Apartments L.P.                                    MO
Hill Top Homes Apartments Limited Partnership                        TX
Brookland Park Plaza Limited Partnership                             MD
Compton Townhouses Limited Partnership                               OH

</TABLE>


                                       38
<PAGE>

                                   SIGNATURES
                                   ----------



Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.



                       PATRIOT TAX CREDIT PROPERTIES L.P.
                       ----------------------------------
                                  (Registrant)



                                          By:  RCC PARTNERS 96, L.L.C.,
                                               General Partner



Date: June 27, 2006                            By:  /s/ Alan P. Hirmes
      -------------                                 ------------------
                                                    Alan P. Hirmes
                                                    Member, President and
                                                    Chief Executive Officer and
                                                    Chief Financial Officer


                                       39
<PAGE>

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

<TABLE>
<CAPTION>

      Signature                                     Title                                     Date
---------------------       -------------------------------------------------------       -------------
<S>                         <C>                                                           <C>
/s/ Alan P. Hirmes          Member and President (Chief Executive Officer and Chief
------------------          Financial Officer) of RCC Partners 96, L.L.C.                 June 27, 2006
Alan P. Hirmes                                                                            -------------



/s/ Glenn F. Hopps          Treasurer (Principal Accounting Officer) of RCC Partners
------------------          96, L.L.C.                                                    June 27, 2006
Glenn F. Hopps                                                                            -------------

</TABLE>

                                       40
<PAGE>

                                                                    Exhibit 31.1


                         CERTIFICATION PURSUANT TO RULE
                           13A-14(A) OR RULE 15D-14(A)


I, Alan P. Hirmes,  Chief Executive  Officer and Chief Financial  Officer of RCC
Partners 96, L.L.C. (the "General Partner"),  the General Partner of Patriot Tax
Credit Plus L.P. (the "Partnership"), hereby certify that:

     1.  I have  reviewed  this report on Form 10-K for the period  ending March
         31, 2006 of the Partnership;

     2.  Based  on my  knowledge,  this  report  does  not  contain  any  untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this report;

     3.  Based on my knowledge,  the financial  statements,  and other financial
         information  included in this  report,  fairly  present in all material
         respects the financial condition,  results of operations and cash flows
         of the  Partnership  as of,  and for,  the  periods  presented  in this
         report;

     4.  I am responsible for establishing and maintaining  disclosure  controls
         and  procedures  (as  defined  in  Exchange  Act  Rules  13a-15(e)  and
         15d-15(e)) and internal control over financial reporting (as defined in
         Exchange Act Rules  13a-15(f) and  15d-15(f)) for the  Partnership  and
         have:

         a) designed such  disclosure  controls and  procedures,  or caused such
         disclosure controls and procedures to be designed under my supervision,
         to  ensure  that  material  information  relating  to the  Partnership,
         including its consolidated subsidiaries,  is made known to me by others
         within  those  entities,  particularly  during the period in which this
         report is being prepared;

         b) designed such internal control over financial  reporting,  or caused
         such internal control over financial  reporting to be designed under my
         supervision,  to provide reasonable assurance regarding the reliability
         of financial reporting and the preparation of financial  statements for
         external  purposes in accordance  with  generally  accepted  accounting
         principles;

         c) evaluated the effectiveness of the Partnership's disclosure controls
         and procedures and presented in this report our  conclusions  about the
         effectiveness of the disclosure controls and procedures,  as of the end
         of the period covered by this report based on such evaluation; and

         d)  disclosed in this report any change in the  Partnership's  internal
         control over financial reporting that occurred during the Partnership's
         fourth fiscal  quarter that has materially  affected,  or is reasonably
         likely to materially  affect,  the Partnership's  internal control over
         financial reporting; and

     5.  I have  disclosed,  based  on my most  recent  evaluation  of  internal
         control over financial reporting,  to the Partnership's auditors and to
         the controlling entities of the General Partner:

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect the  Partnership's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in the  Partnership's
         internal control over financial reporting.



         Date: June 27, 2006                    By:  /s/ Alan P. Hirmes
               -------------                         ------------------
                                                     Alan P. Hirmes
                                                     Chief Executive Officer and
                                                     Chief Financial Officer


                                       41
<PAGE>

                                                                    Exhibit 32.1

                            CERTIFICATION PURSUANT TO
                      RULE 13A-14(B) OR RULE 15D-14(B) AND
                                  SECTION 1350
                        OF TITLE 18 OF THE UNITED STATES
                              CODE (18 U.S.C. 1350)


In  connection  with the Annual  Report of Patriot  Tax  Credit  Plus L.P.  (the
"Partnership")  on Form 10-K for the period  ending March 31, 2006 as filed with
the  Securities  and  Exchange  Commission  ("SEC")  on  the  date  hereof  (the
"Report"),  I, Alan P.  Hirmes,  Chief  Executive  Officer  and Chief  Financial
Officer of RCC  Partners 96,  L.L.C.,  the General  Partner of the  Partnership,
certify,  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:


       (1) The Report fully complies with the  requirements  of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


       (2) The  information  contained  in the Report  fairly  presents,  in all
material  respects,  the  financial  condition  and result of  operations of the
Partnership.


A signed  original of this  written  statement  required by Section 906 has been
provided  to the  Partnership  and  will  be  retained  by the  Partnership  and
furnished to the SEC or its staff upon request.



By:  /s/ Alan P. Hirmes
     ------------------
     Alan P. Hirmes
     Chief Executive Officer and Chief Financial Officer
     June 27, 2006


                                       42
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
             -------------------------------------------------------


To the Partners of
Patriot Tax Credit Properties L.P. and Subsidiaries


In  connection  with our  audits of the  consolidated  financial  statements  of
Patriot Tax Credit Properties L.P. and Subsidiaries  included in this Form 10-K,
we have also audited supporting  Schedule III for the year ended March 31, 2006.
In our opinion,  based on our audit and the reports of the other  auditors,  the
consolidated  schedule presents fairly, in all material  respects,  when read in
conjunction with the related consolidated  financial  statements,  the financial
data required to be set forth therein.


/s/ REZNICK GROUP, P.C.


Bethesda, Maryland
June 23, 2006


                                       43
<PAGE>
                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                 MARCH 31, 2006

<TABLE>
<CAPTION>

                                                                                                          Cost Capitalized
                                                                Initial Cost to Partnership          Subsequent to Acquisition (7)
                                                               ------------------------------      --------------------------------
                                                                                Buildings and
          Description (4)(6)                 Encumbrances          Land          Improvements      Improvements      Carrying Costs
---------------------------------------      ------------      ------------     -------------      ------------      --------------
<S>                                          <C>               <C>               <C>               <C>                <C>
Apartment Complexes:

RMB Limited Partnership
   (Hubbard's Ridge) (1)(8)
   Garland, TX                               $          0      $    107,237      $    965,136      $ (1,257,553)      $    185,180
Cutler Canal II Associates, Ltd. (2)(8)
   Miami, FL                                            0           807,071         1,388,350        (2,263,149)            67,728
Diamond Street Venture (3)
   Philadelphia, PA                             2,841,492             9,729           234,465         2,412,690            273,218
Papillion Heights Apartments L.P. (1)
   Papillion, NE                                1,137,316            63,329         1,816,598           276,371             66,552
Hill Top Homes Apartments L.P. (1)
   Arlington, TX                                2,883,887           553,841         3,690,150         3,544,302            316,368
Palm Beach Apartments Ltd, (1)(8)
   (Summer Creek Villas)
   West Palm Beach, FL                                  0         2,396,876        10,578,563       (14,852,234)         1,876,795
Brookland Park Plaza L.P. (1)
   Richmond, VA                                 2,249,935            50,000           109,850         5,913,667            376,165
Compton Townhouses L.P. (1)
   Cincinnati, OH                               1,131,335            17,550           476,708         1,924,498             28,203
Less Discontinued Operations:                           0        (3,311,184)      (12,932,049)       18,372,936         (2,129,703)
                                             ------------      ------------      ------------      ------------       ------------

                                             $ 10,243,965      $    694,449      $  6,327,771      $ 14,071,528       $  1,060,506
                                             ============      ============      ============      ============       ============

<CAPTION>

                                                              Gross Amounts
                                                  at which Carried at Close of Period (5)
                                             ------------------------------------------------
                                                              Buildings and
          Description (4)(6)                     Land          Improvements          Total
---------------------------------------      ------------     -------------      ------------
<S>                                          <C>               <C>               <C>
Apartment Complexes:

RMB Limited Partnership
   (Hubbard's Ridge) (1)(8)
   Garland, TX                               $          0      $          0      $          0
Cutler Canal II Associates, Ltd. (2)(8)
   Miami, FL                                            0                 0                 0
Diamond Street Venture (3)
   Philadelphia, PA                                 9,729         2,920,373         2,930,102
Papillion Heights Apartments L.P. (1)
   Papillion, NE                                   63,329         2,159,521         2,222,850
Hill Top Homes Apartments L.P. (1)
   Arlington, TX                                  553,841         7,550,820         8,104,661
Palm Beach Apartments Ltd, (1)(8)
   (Summer Creek Villas)
   West Palm Beach, FL                                  0                 0                 0
Brookland Park Plaza L.P. (1)
   Richmond, VA                                    50,000         6,399,682         6,449,682
Compton Townhouses L.P. (1)
   Cincinnati, OH                                  17,550         2,429,409         2,446,959
Less Discontinued Operations:                           0                 0                 0
                                             ------------      ------------      ------------

                                             $    694,449      $ 21,459,805      $ 22,154,254
                                             ============      ============      ============

<CAPTION>

                                                                                                 Life on which
                                                                                                Depreciation in
                                                                                                 Latest Income
                                             Accumulated       Construction         Date         Statements are
          Description (4)(6)                 Depreciation       Completed         Acquired          Computed
---------------------------------------      ------------      ------------      -----------    ---------------
<S>                                          <C>                   <C>              <C>             <C>
Apartment Complexes:

RMB Limited Partnership
   (Hubbard's Ridge) (1)(8)
   Garland, TX                               $          0          5/90             12/89             30
Cutler Canal II Associates, Ltd. (2)(8)
   Miami, FL                                            0          1/91              1/90             40
Diamond Street Venture (3)
   Philadelphia, PA                             1,665,761         12/90              1/90             40
Papillion Heights Apartments L.P. (1)
   Papillion, NE                                  875,995         12/90              4/90             40
Hill Top Homes Apartments L.P. (1)
   Arlington, TX                                2,943,016         12/90              6/90             40
Palm Beach Apartments Ltd, (1)(8)
   (Summer Creek Villas)
   West Palm Beach, FL                                  0          8/91              6/90             40
Brookland Park Plaza L.P. (1)
   Richmond, VA                                 3,557,208         12/90              7/90           27.5
Compton Townhouses L.P. (1)
   Cincinnati, OH                               1,537,047          6/92              1/92             40
Less Discontinued Operations:                           0
                                             ------------

                                             $ 10,579,027
                                             ============
</TABLE>

(1)  First mortgage
(2)  Includes first and second mortgages
(3)  Includes first, second and third mortgages
(4)  At March 31, 2006, the  Partnership  holds a 98% interest in Hill Top Homes
     and Compton  Townhouses and a 98.99% interest in Diamond Street,  Papillion
     Heights and Brookland Park Plaza.
(5)  The cost basis of Land and Buildings and  Improvements  for federal  income
     tax purposes as of December 31, 2002 is $80,614,671.
(6)  The Partnership believes the properties are adequately insured.
(7)  Costs  Capitalized  Subsequent  to  Acquisition  included a  write-down  of
     $2,700,000 for Diamond Street Venture recorded as of March 31, 1995.
(8)  The property and the related  assets and  liabilities  were sold during the
     fiscal year ended March 31, 2006.

                                       44
<PAGE>
                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                 MARCH 31, 2006
                                   (continued)
<TABLE>
<CAPTION>
                                        Cost of Property and Equipment                      Accumulated Depreciation
                                ---------------------------------------------    ---------------------------------------------
                                                                     Years Ended March 31,
                                ----------------------------------------------------------------------------------------------
  Note A - Reconciliation           2006             2005            2004            2006             2005            2004
----------------------------    ------------     ------------    ------------    ------------     ------------    ------------
<S>                             <C>              <C>             <C>             <C>              <C>             <C>
Balance at beginning of year    $ 79,820,046     $ 79,804,215    $ 79,751,979    $ 30,492,001     $ 28,372,375    $ 26,237,792
Additions during year:
Improvements                          18,162           15,831          52,236
Discontinued operations          (57,683,954)               0               0     (21,608,740)               0               0
                                ------------     ------------    ------------
Depreciation expense (1)                                                            1,695,766        2,119,626       2,134,583
                                                                                 ------------     ------------    ------------

Balance at close of year        $  22,154,254    $ 79,820,046    $ 79,804,215    $ 10,579,027     $ 30,492,001    $ 28,372,375
                                =============    ============    ============    ============     ============    ============
</TABLE>

(1)  Refer  to  Notes  2 and 4 to  the  consolidated  financial  statements  for
     additional information.

                                       45
<PAGE>

                                                                    Exhibit 99.1






                                BALANCE SHEET AND
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

                             RCC PARTNERS 96, L.L.C.

                                 MARCH 31, 2006


                                       46
<PAGE>

                             RCC Partners 96, L.L.C.


                                TABLE OF CONTENTS

                                                                           PAGE
                                                                           ----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                     48


FINANCIAL STATEMENTS


    BALANCE SHEET                                                           49


    NOTES TO BALANCE SHEET                                                  50

                                       47
<PAGE>



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Members of
RCC Partners 96, L.L.C.

We have audited the accompanying  balance sheet of RCC Partners 96, L.L.C. as of
March 31,  2006.  This  balance  sheet is the  responsibility  of the  Company's
management.  Our  responsibility  is to express an opinion on this balance sheet
based on our audit.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain  reasonable  assurance about whether the balance
sheet is free of material  misstatement.  The Company has determined  that it is
not required to have,  nor were we engaged to perform,  an audit of its internal
control over financial reporting.  Our audit included  consideration of internal
control over financial  reporting as a basis for designing audit procedures that
are appropriate in the  circumstances,  but not for the purpose of expressing an
opinion on the  effectiveness  of the Company's  internal control over financial
reporting.  Accordingly,  we  expressed  no  such  opinion.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the balance sheet.  An audit also includes  assessing the accounting  principles
used and  significant  estimates made by  management,  as well as evaluating the
overall  balance  sheet  presentation.  We  believe  that our audit  provides  a
reasonable basis for our opinion.

In our opinion,  the balance sheet  referred to above  presents  fairly,  in all
material respects, the financial position of RCC Partners 96, L.L.C. as of March
31, 2006, in conformity with  accounting  principles  generally  accepted in the
United States of America.


/s/ Reznick Group, P.C.
Bethesda, Maryland
June 23, 2006

                                       48
<PAGE>



                             RCC Partners 96, L.L.C.

                                  BALANCE SHEET

                                 March 31, 2006




                                     ASSETS



Due from limited partnership                                        $1,305,107
                                                                     ---------

                                                                    $1,305,107
                                                                    ==========

                         LIABILITIES AND MEMBERS' EQUITY



Due to affiliate                                                    $1,305,107
Members' equity                                                              0
                                                                    ----------

                                                                    $1,305,107
                                                                    ==========


        The accompanying notes are an integral part of this balance sheet


                                       49
<PAGE>



                             RCC Partners 96, L.L.C.

                             NOTES TO BALANCE SHEET

                                 March 31, 2006


NOTE A -   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RCC Partners 96, L.L.C.  (the  "Company")  was  organized  under the laws of the
State of Delaware as of July 23, 1996, to act as the general  partner of, and to
acquire  and  hold  a  general  partnership   interest  in  Patriot  Tax  Credit
Properties, L.P. ("Patriot").

On  October  1,  1997,  as part of a  settlement  of class  litigation  known as
Prudential  Securities  Inc.  Limited  Partnership  Litigation,  MDL  No.  1005,
Prudential-Bache  Properties,  Inc.  ("PBP") withdrew as the general partner and
transferred its General Partner  interest in the Partnership to the Company,  an
affiliate of CharterMac Capital LLC,  ("CharterMac  Capital") (formerly known as
Related  Capital  Company  LLC)  pursuant  to a purchase  agreement  dated as of
December 19, 1996 among PBP and its affiliates and CharterMac Capital.

On November 17,  2003,  CharterMac  acquired  CharterMac  Capital,  which is the
parent of RCC Manager LLC, the sole shareholder of the Company.  Pursuant to the
acquisition,  CharterMac  acquired  controlling  interests in the Company.  This
acquisition did not affect Patriot or its day-to-day operations, as the majority
of the Company's management team remained unchanged.

Affiliates  of  the  Company  and  CharterMac   Capital  have  had   significant
involvement with Patriot and the Local Partnerships,  of which five are owned by
CharterMac Capital affiliates. CharterMac Capital in the past provided, and will
continue to provide  ongoing  monitoring  services  with  respect to the Limited
Partnership's   investments  pursuant  to  the  Property  Investment  Monitoring
Agreement.

Investment in Limited Partnership
---------------------------------

The Company  accounts for its  investment  in Patriot  using the equity  method,
whereby  the  Company  adjusts the  investment  cost for its share of  Patriot's
results of operations and for any distributions received or accrued.

The Company regularly  assesses the carrying value of its investment in Patriot.
If the carrying  value is considered  to exceed the  estimated  value derived by
management (which  contemplates  remaining  Low-income Tax Credits and potential
residual  value,  among other  things),  the Company  reduces its  investment in
Patriot.

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.


                                       50
<PAGE>

                             RCC Partners 96, L.L.C.

                       NOTES TO BALANCE SHEET - CONTINUED

                                 March 31, 2006


NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Income Taxes
------------

The Company is not a taxpaying entity for income tax purposes and,  accordingly,
no provision has been made for income taxes.  The member's  allocable  shares of
the Company's taxable income or loss are reportable on their income tax returns.

NOTE B - RELATED PARTY TRANSACTIONS

Due to/from affiliates
----------------------

As of March 31,  2006,  Patriot  owes the  Company  $1,305,107  for  partnership
management fees pursuant to the Limited Partnership Agreement.  The Company owes
$1,305,107 to their affiliates as of March 31, 2006.

NOTE C -   INVESTMENT IN LIMITED PARTNERSHIP

On October 1, 1997,  the Company was admitted as the general  partner in Patriot
Tax Credit  Properties,  L.P. which was formed to invest as a limited partner in
other  partnerships  owning  apartment  complexes  that  are  eligible  for  the
low-income housing tax credit or the rehabilitation tax credit.

The investment in Limited Partnership is as follows:

General Partner capital at March 31, 2006                           $   731,745

Less: Adjustment to estimated realizable value                         (731,745)
                                                                    -----------

Balance - March 31, 2006                                            $         0
                                                                    ===========


                                       51
<PAGE>

                             RCC Partners 96, L.L.C.

                       NOTES TO BALANCE SHEET - CONTINUED

                                 March 31, 2006


NOTE C -  INVESTMENT IN LIMITED PARTNERSHIP (continued)

          The  summarized  consolidated  balance sheet at March 31, 2006 and the
          summarized  consolidated  statement  of  operations  for the year then
          ended for Patriot Tax Credit Properties, L.P. are as follows:

                           CONSOLIDATED BALANCE SHEET

                                     ASSETS

<TABLE>
<CAPTION>

<S>                                                                 <C>
INVESTMENT IN PROPERTY                                              $ 11,575,227

OTHER ASSETS
  Cash and cash equivalents                                            2,214,692
  Cash and cash equivalents, held in escrow                              300,903
  Deferred financing costs, net                                          191,129
  Other assets                                                         1,243,915
                                                                    ------------

Total assets                                                        $ 15,525,866
                                                                    ============

                   LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

LIABILITIES
  Mortgage notes payable                                            $ 10,243,965
  Accrued interest payable                                                77,583
  Other accrued expenses and liabilities                               1,084,916
  Due to general partners and affiliates of local partnerships         2,776,738
  Development fees payable                                             1,151,510
  Real estate taxes payable                                               88,711
  Due to general partners and its affiliates                           3,314,677
                                                                    ------------

Total liabilities                                                     18,738,100
                                                                    ------------

Minority interest in local partnerships                                  183,027
                                                                    ------------

Partners' capital (deficit)
  Limited partners (38,125 BUC$ issued and outstanding)               (4,127,006)
  General partner (1 BUC$ issued and outstanding)                        731,745
                                                                    ------------

Total partners' capital (deficit)                                     (3,395,261)
                                                                    ------------

Total liabilities and partners' capital (deficit)                   $ 15,525,866
                                                                    ============
</TABLE>


                                       52
<PAGE>

                             RCC Partners 96, L.L.C.

                       NOTES TO BALANCE SHEET - CONTINUED

                                 March 31, 2006


NOTE C -   INVESTMENT IN LIMITED PARTNERSHIP (continued)

                      CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>

<S>                                                                 <C>
Revenues
  Rental income                                                     $ 2,316,289
  Other income                                                           32,501
  Interest income                                                         5,046
                                                                    -----------

                                                                      2,353,836
                                                                    -----------

Expenses
  Interest                                                              638,884
  Depreciation and amortization                                         711,019
  Operating and other                                                   353,502
  Taxes and insurance                                                   389,960
  Repairs and maintenance                                               500,246
  General and administrative                                            706,521
  Property management fees                                              130,615
  Partnership management fees                                           153,911
                                                                    -----------

  Total expenses                                                      3,584,658
                                                                    -----------

Loss from operations before minority interest                        (1,230,822)
Minority interest in loss of local partnership from operations            1,662
Income from discontinued operations (net of minority interest and
gain on sale of $14,824,690)                                         10,553,528
                                                                    -----------

Net income                                                          $ 9,324,368
                                                                    ===========
</TABLE>

NOTE D -  CONTINGENCIES

          The  Company is  contingently  liable for all debts,  liabilities  and
          other  obligations of Patriot Tax Credit Properties L.P. to the extent
          not paid by the partnership.


                                       53