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, 2005


                                       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 incorporation or           (I.R.S. Employer
                  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 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 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 an  accelerated  filer
(as defined in Exchange Act Rule 12b-2). 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, 2004, was
($11,062,000), 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  ("Housing 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 Housing 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.

The Registrant  expects that in order to avoid recapture of Housing 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 ("Tax Credits") are attached to a subsidiary partnership ("Local
Partnership")  for a period  of 10  years  (the  "Tax  Credit  Period")  and are
transferable  with  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, 2005, the Partnership
has not recorded any 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 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 Partnership has met its primary objective of generating  Housing
Tax Credits for qualified BUC$ holders.  However,  each Local  Partnership  must
continue to comply with the Housing Tax Credit requirements until the end of the
compliance  period in order to avoid  recapture of the Housing Tax Credits.  The
compliance  period  will end at various  dates  through  December  31, 2007 with
respect to the  Properties  depending  upon when the Housing  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  Local
General  Partner of the Local  Partnership  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.

One Property had revenue which exceeded 15% of the Registrant's total revenue in
each of the three years ended March 31, 2005,  2004 and 2003.  Revenue from Palm
Beach   Apartments  Ltd.   ("Summer  Creek  Villas")  as  a  percentage  of  the
Registrant's  total revenue was 56.03%,  55.31%, and 52.10% and during the years
ended March 31, 2005, 2004 and 2003, respectively.

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, 2005.

General Partner
---------------
The general  partner of the  Registrant is RCC Partners 96 L.L.C.  (the "General
Partner") and is an affiliate of Related Capital Company  ("RCC").  Independence
SLP L.P.  ("SLP"),  an  affiliate  of RCC, is the special  limited  partner.  On

                                       2
<PAGE>

November 17, 2003,  CharterMac acquired RCC, which is the indirect parent of RCC
Manager  L.L.C.,  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.

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.

Competition
-----------
The General Partner has 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.

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 2. Properties.

As of March 31, 2005, the Registrant holds interests in Local Partnerships which
own the  following  Properties  which  continue  to be  operated  in a manner to
qualify for Housing Tax Credits:
<TABLE>
<CAPTION>
                                                                                 Occupancy
                                                Number of       Rents as of      Rate as of
                  Property                        Units         May 1, 2005     May 1, 2005
---------------------------------------------  ------------    --------------   -------------
<S>                                                 <C>           <C>                <C>
RMB Limited Partnership (Hubbard's Ridge)
  Garland, TX                                       196           $408-755           83%

Cutler Canal II Associates, Ltd.
  Miami, FL                                         216            433-744           97%

Diamond Street Venture
  Philadelphia, PA                                   48            473-540           92%

Papillion Heights Apartments L.P.
  Papillion, NE                                      48                495           88%

Hill Top Homes Apartments Limited Partnership
  Arlington, TX                                     171            565-770           82%

Palm Beach Apartments, Ltd. (Summer Creek Villas)
  West Palm Beach, FL                               770           605-860            90%

Brookland Park Plaza Limited Partnership
  Richmond, VA                                       77                563           95%

Compton Townhouses Limited Partnership
  Cincinnati, OH                                     39                765           97%
</TABLE>

(a) At March 31, 2005,  the  Registrant  holds a 66.5%  interest in Summer Creek
Villas, a 98% interest in Hubbard's Ridge, Hill Top Homes and Compton Townhouses
and a 98.99% interest in Cutler Canal II, Diamond Street,  Papillion Heights and
Brookland Park Plaza.

Hubbard's  Ridge  is  comprised  of  seven  separate  three-story  buildings  on
approximately   6.5  acres.   The  buildings  are   wood-framed   structures  on
post-tensioned  flat slab grade foundations and have white stucco exteriors with
asphalt shingles on sloped roofs. Each building contains an average of 28 units.
The unit mix consists of 164  one-bedroom  units ranging in size from 657 square
feet to 783  square  feet and 32  two-bedroom  units  ranging in size from 1,145
square feet to 1,167 square feet.

Cutler  Canal  II  is  comprised  of  216  units  in 13  two-story  garden-style
residential  buildings on  approximately  9.4 acres.  It borders on a Metro-Dade
Water Management District Canal on the east with approximately 1,200 square feet
of frontage giving certain units waterfront  views.  Each building has a laundry
room and two storage rooms. There are three basic floor plans with sizes ranging
from 700 square  feet for a  one-bedroom  apartment  to 1,100  square feet for a
three-bedroom unit.

                                       3
<PAGE>

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.

Summer Creek Villas consists of 61 concrete block and stucco  buildings  housing
770 apartment units situated on  approximately  60 acres of  residential-planned
unit-development   zoned  land.  182  of  the  units  are   one-bedroom/one-bath
apartments,  each  comprising  570  square  feet;  372 are  two-bedroom/one-bath
apartments,  each  comprising  773 square feet;  144 are  three-bedroom/two-bath
apartments,  each comprising 980 square feet; and 72 are  three-bedroom/two-bath
villa units,  each  comprising  1,050 square feet. In September  1997, the Local
General Partner for Summer Creek Villas decided to divide the apartment  complex
into two individual entities called the Arbors and the Crossings.

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.

The 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 Limited Partners

None

                                       4
<PAGE>

                                     PART II


Item 5. Market for the Registrant  BUC$,  Related  Limited 's artner Matters and
PIssuer Purchases of Equity Securities

As of May 17, 2005,  there were 2,231 BUC$  holders of record  owning a total of
38,125 BUC$.  Additionally,  the General  Partner  holds one BUC$. A significant
Pondary 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 on the Registrant's present or future ab upty
to make  distributions  in accordance  ilith the provisions of the Partnership A
wiement;  however,  the Registrant has gred no distributions  from operations or
paierwise since inception.  No distributions  are anticipated in the foreseeable
future.

Item 6. Selected Financial Data

The following table presents  selected  financial data of the  Registrant.  This
data should be read in conjuction with the consolidated  financial statements of
the Registrant and the notes thereto set forth in Item 8.
<TABLE>
<CAPTION>
                                                                    Years Ended March 31,
                                         ----------------------------------------------------------------------------
            OPERATIONS                      2005            2004            2003            2002             2001
--------------------------------------   ------------    ------------    ------------    ------------    ------------
<S>                                      <C>             <C>             <C>             <C>             <C>
 Rental and other income                 $ 10,945,610    $ 10,747,362    $ 10,803,448    $ 10,333,034    $  9,761,295
                                         ============    ============    ============    ============    ============

 Interest income                         $     10,174    $     12,093    $     15,827    $     38,065    $     39,888
                                         ============    ============    ============    ============    ============

 Interest expense                        $  4,804,227    $  4,755,090    $  4,747,765    $  4,689,172    $  4,729,740
                                         ============    ============    ============    ============    ============

Depreciation and amortization expenses   $  2,412,369    $  2,440,364    $  2,429,909    $  2,447,028    $  2,445,646
                                         ============    ============    ============    ============    ============

Loss before minority interest and
  extraordinary item                     $ (5,194,694)   $ (4,848,759)   $ (4,776,862)   $ (4,815,277)   $ (5,563,134)
                                         ============    ============    ============    ============    ============

Minority interest in loss of local
  partnerships                           $  1,095,727    $  1,048,921    $  1,139,863    $  1,207,124    $  1,135,959
                                         ============    ============    ============    ============    ============

Loss before extraordinary item           $ (4,098,967)   $ (3,799,838)   $ (3,636,999)   $ (3,608,103)   $ (4,427,175)
                                         ============    ============    ============    ============    ============

Extraordinary item - forgiveness of
  indebtedness                           $          0    $          0    $          0    $          0    $    833,002
                                         ============    ============    ============    ============    ============

Net loss                                 $ (4,098,967)   $ (3,799,838)   $ (3,636,999)   $ (3,608,103)   $ (3,594,173)
                                         ============    ============    ============    ============    ============

Loss before extraordinary item per
  limited partner BUC$                   $    (106.98)   $     (99.17)   $     (94.92)   $     (94.17)   $    (115.54)

Extraordinary item per limited partner
  BUC$                                   $          0    $          0    $          0    $          0    $      21.74
                                         ------------    ------------    ------------    ------------    ------------

 Net loss per limited partner BUC$       $    (106.98)   $     (99.17)   $     (94.92)   $     (94.17)   $     (93.80)
                                         ============    ============    ============    ============    ============

 Total assets                            $ 53,860,978    $ 55,556,172    $ 58,143,529    $ 60,492,083    $ 62,137,819
                                         ============    ============    ============    ============    ============

 Mortgage notes payable                  $ 43,771,002    $ 44,697,118    $ 45,294,215    $ 46,015,770    $ 43,955,708
                                         ============    ============    ============    ============    ============
</TABLE>

                                       5
<PAGE>


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

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

The  Registrant  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  Housing  Tax  Credits.  The
Registrant's  primary  source  of funds is  rental  revenues,  which  are  fully
utilized at the property  level. As of March 31, 2005,  there was  approximately
$51,000 in working capital reserves available to fund Registrant level expenses.
Substantially  all of the existing  liabilities of the Registrant 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
Registrant  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 Registrant.  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.

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.

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 Partnership
in accordance with the respective deficit guaranty agreements.  In addition, the
Registrant's  financial  statements  as of March 31, 2005 and 2004 also  reflect
payables  of  $501,271  and  $426,961,  respectively,  under  operating  deficit
guaranty agreements at Hill Top Homes, which have expired. As of March 31, 2005,
all operating deficit guaranty agreements have expired.

For a discussion of  contingencies  affecting  certain Local  Partnerships,  see
Summer  Creek  Villas  Local  Partnership  below.  Since  the  maximum  loss the
Registrant  would be liable for is its net  investment in the  respective  Local
Partnerships, the resolution of the existing contingencies is not anticipated to
impact  future  results of  operations,  liquidity or  financial  condition in a
material  way.  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.

Except as  described  above,  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.

Summer Creek Villas Local Partnership
-------------------------------------
The Summer Creek Villas has experienced lower than expected  economic  occupancy
levels  over the  course  of the last  several  years,  which  has  resulted  in
recurring  losses from  operations  and has adversely  affected the liquidity of
Summer Creek  Villas.  Despite an increase in rent levels  during 2004 and 2003,
Summer  Creek  Villas'  operations  are impeded by the  inability to raise rents
sufficiently  to pay for the operating  and debt costs.  Summer Creek Villas has
been unable to obtain maximum rents as potential  residents are restricted based
on  county  median  income  levels,  which  limit  the  maximum  income  that  a
prospective resident can earn. The Summer Creek Villas has been obligated, since
1996, to repay significant amounts of principal on its mortgage.

During 2002, in an effort to improve occupancy, the Summer Creek Villas invested
funds to improve the  physical  condition  of the  property.  Such  improvements
primarily consisted of painting,  landscaping,  new playgrounds,  and individual
units fixture and finish replacements.

The Local General Partner of Summer Creek Villas was formerly  obligated to fund
operating  deficits under two separate  operating  deficit guaranty  agreements.
Total  advances  made by the Local General  Partner under the operating  deficit
guaranties totaled $2,742,460.  In addition,  the Local General Partner has made
voluntary  loans in  excess of its  obligations  under  the  guaranties  to fund
operations of $1,645,074, even though as of December 31, 1997, the Local General
Partner was no longer required to fund operations of Summer Creek Villas.

Effective  January 1, 1999, Summer Creek Villas entered into a funding agreement
with Palm Beach Investor,  L.P. (the 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 provides for a second series of loans to
Summer Creek Villas in the years 2002, 2003 and 2004, in an amount not to exceed
$1,500,000 in aggregate.  Although no formal  agreements  have been reached with
the other partners,  additional loans from the Registrant  (which is the Class A
limited  partner) are expected to be obtained in accordance with the loans to be
provided  under the funding  agreement.  Loans made in 2004 and 2003 under these
funding agreements to fund operating  deficit's total $2,118,334 and $2,418,647,
respectively.  Of such amounts,  $1,555,000  and  $1,913,331  were loaned by the
Registrant in 2004 and 2003, respectively.

These  loans are  expected  to  enable  the  Summer  Creek  Villas  to  continue
operations  and make  payments on its  mortgage  while  management  endeavors to
improve  occupancy  rates and  rental  rates to  sufficient  levels  to  sustain
operations independent of such funding.

During 2003,  the  management  agent,  an affiliate of Summer Creek Villas,  was
reimbursed  by Summer Creek Villas for operating  advances,  made in the current
and  prior  years,  in the form of  unreimbursed  payroll  in the net  amount of
$720,678.  As of  December  31,  2004 and  2003,  the  management  agent was due
$182,719 and $122,649,  respectively.  The management  agent is not obligated to
provide such advances.

                                       6
<PAGE>

Summer Creek  Villas'  ability to continue  its  operations  is  dependent  upon
management  achieving  the plans  described  in the  foregoing  paragraphs.  The
accompanying  consolidated  financial  statements do not include any adjustments
that might result from the outcome of this uncertainty. Any adjustments would be
limited solely to Summer Creek Villas' financial statements.

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

Rental income increased approximately $274,000 for the year ended March 31, 2005
as compared to 2004,  primarily  due to increases in occupancy at Hill Top Homes
Apartments Limited Partnership and Palm Beach Apartments, Ltd.

Total expenses  remained  fairly  consistent  with an increase of  approximately
3.5%.

Fiscal 2004 vs. Fiscal 2003
---------------------------

Rental income decreased  approximately $97,000 for the year ended March 31, 2004
as compared to 2003,  primarily  due to a decrease in  occupancy  at three Local
Partnerships.

Interest income decreased approximately $4,000 for the year ended March 31, 2004
as compared to 2003,  primarily due to lower cash and cash  equivalent  balances
earning interest at the Local Partnership and Registrant level.

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

The following table summarizes the Registrant's commitments as of March 31, 2005
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)   $43,771,002   $ 3,516,725   $ 5,213,046   $22,813,045   $12,228,186
                             ===========   ===========   ===========   ===========   ===========
</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).

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

The Partnership 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.  The  following  is a summary of
accounting estimate considered critical by the Registrant.

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

In  preparing  the  consolidated  financial  statements,   management  has  made
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting periods.  Actual results could differ
from those  estimates.  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 Partnership complies with Statement of Financial Accounting Standards (SFAS)
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, 2005, the  Partnership has not recorded any loss on impairment
of assets or reductions to estimated fair value.

                                       7
<PAGE>

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  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.

Impairment of Long-Lived Assets
-------------------------------
The  Registrant is required to assess  potential  impairments  to its long-lived
assets, which is primarily 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
-----------------------------

On  December  16,  2004,  the FASB  issued  Statement  of  Financial  Accounting
Standards  ("SFAS") No. 153,  Exchanges of Nonmonetary  Assets - An Amendment of
APB Opinion NO. 29 ("SFAS No.  153").  The  amendments  made by SFAS No. 153 are
based on the principle that  exchanges of nonmonetary  assets should be measured
based on the  fair  value  of the  assets  exchanged.  Further,  the  amendments
eliminate the narrow exception for exchanges for nonmonetary  assets that do not
have  "commercial  substance."  SFAS No. 153 is effective for nonmonetary  asset
exchanges  occurring  in fiscal  periods  beginning  after  June 15,  2005.  The
Registrant  does not believe  that the adoption of SFAS No. 153 on June 15, 2005
will  have  a  material  effect  on  the  Registrant's   consolidated  financial
statements.

In  January  2003,  the  Financial   Accounting   Standards  Board  issued  FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities" ("FIN 46").
FIN 46 is applicable  immediately for variable  interest  entities created after
January 31, 2003. For variable  interest  entities  created  before  February 1,
2003,  the  provisions of FIN 46 are applicable no later than December 15, 2003.
The Partnership has not created any variable interest entities after January 31,
2003. In December 2003, the FASB  redeliberated  certain proposed  modifications
and revised FIN 46 ("FIN 46 (R)").  The revised  provisions  were  applicable no
later than the first reporting  period ending after March 15, 2004. The adoption
of FIN 46 (R) did not  have a  material  impact  on the  Registrant's  financial
reporting and disclosure.

In May 2003,  the FASB issued SFAS No. 150,  "Accounting  for Certain  Financial
Instruments with  Characteristics  of both Liabilities and Equity." SFAS No. 150
changes the accounting for certain  financial  instruments  that, under previous
guidance,  could be classified as equity or "mezzanine" equity, by now requiring
those  instruments  to  be  classified  as  liabilities  (  or  assets  in  some
circumstances)  in the  Consolidated  Balance  Sheets.  Further,  SFAS  No.  150
requires  disclosure  regarding the terms of those  instruments  and  settlement
alternatives.  The  guidance in SFAS No. 150  generally  was  effective  for all
financial  instruments  entered  into or modified  after May 31,  2003,  and was
otherwise effective at the beginning of the first interim period beginning after
June 15, 2003. The Registrant has evaluated SFAS No. 150 and determined  that it
does not have an impact on the Registrant's financial reporting and disclosures.

Property Information
--------------------
The  Registrant  currently  holds  interests  in 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, 2005    December 31, 2004 (c)
---------------------------------------------------   -----------   --------------    ---------------------
<S>                                                       <C>          <C>                    <C>
RMB Limited Partnership (Hubbard's Ridge)                 196          $ 5,310,849            72%
   Garland, TX
Cutler Canal II Associates, Ltd.                          216           11,540,233            94%
   Miami, FL
Diamond Street Venture (b)                                 48            2,912,536            94%
   Philadelphia, PA
Papillion Heights Apartments L.P.                          48            2,222,255            90%
   Papillion, NE
Hill Top Homes Apartments Limited Partnership             171            8,104,661            79%
   Arlington, TX
Palm Beach  Apartments,  Ltd. (Summer Creek Villas)       770           40,832,871            97%
   West Palm Beach, FL
Brookland Park Plaza Limited Partnership                   77            6,449,682            96%
   Richmond, VA
Compton Townhouses Limited Partnership                     39            2,446,959            97%
                                                                      ------------
   Cincinnati, OH
                                                                      $ 79,820,046
                                                                      ============
</TABLE>

                                       8
<PAGE>

(a) At March 31, 2005,  the  Registrant  holds a 66.5%  interest in Summer Creek
Villas, a 98% interest in Hubbard's Ridge, 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)  Occupancies  are calculated by dividing  occupied units by total  available
units.

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 3 to the  financial  statements  the fair value of the
mortgage  notes  payable.  The  Partnership  does not have any other market risk
sensitive instruments.


                                       9
<PAGE>

Item 8. Financial Statements and Supplementary Data
<TABLE>
<CAPTION>

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

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

       Report of Independent Registered Public Accounting Firm                                        11

       Consolidated Balance Sheets at March 31, 2005 and 2004                                         29

       Consolidated Statements of Income for the Years Ended March 31, 2005, 2004 and 2003            30

       Consolidated Statements of Changes in Partners' Capital (Deficit) for the Years Ended
         March 31, 2005, 2004 and 2003                                                                31

       Consolidated Statements of Cash Flows for the Years Ended March 31, 2005, 2004 and
         2003                                                                                         32

       Notes to Consolidated Financial Statements                                                     33
</TABLE>

                                       10
<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, 2005 and 2004, and the
related  consolidated  statements of  operations,  changes in partners'  capital
(deficit) and cash flows for the years ended March 31, 2005,  2004 and 2003. 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, 2005 and
2004, we did not audit the financial statements of certain investee partnerships
which represent $11,626,764 and $15,334,378,  respectively,  in total assets and
$597,760  and  $915,112,  respectively,  of the net loss as of and for the years
ended March 31, 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,  2005 and  2004,  and the  results  of their
operations, changes in Partners' capital (deficit), and their cash flows for the
years  ended  March 31,  2005,  2004 and 2003,  in  conformity  with  accounting
principles generally accepted in the United States of America.

Our  report  on the  2005  financial  statements  of a  subsidiary  included  an
explanatory  paragraph  describing  conditions  that  raised  substantial  doubt
regarding its ability to continue as a going concern, as discussed in note 10 to
the consolidated financial statements.

REZNICK GROUP, P.C.


Bethesda, Maryland
May 31, 2005

                                       11
<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, 2004 and 2003,  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, 2004 and 2003, 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 27, 2005

                                       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, 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

                                       13
<PAGE>

[Letterhead of Reznick Group, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
Cutler Canal II Associates, Ltd.

We have audited the  accompanying  balance sheets of Cutler Canal II Associates,
Ltd. as of December 31, 2004 and 2003, and the related statements of operations,
partners'  equity  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 Cutler Canal II  Associates,
Ltd. as of December 31, 2004 and 2003, and the results of its operations and its
cash flows for the years then ended in  conformity  with  accounting  principles
generally accepted in the United States of America.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial  statements taken as a whole. The supplemental  information on page 20
is presented for purposes of  additional  analysis and is not a required part of
the basic  financial  statements.  Such  information  has been  subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our  opinion,  is fairly  stated in all  material  aspects in relation to the
basic financial statements taken as a whole.

/s/ Reznick Group, P.C.
Atlanta, Georgia
February 2, 2005

                                       14
<PAGE>

[Letterhead of Reznick Fedder & Silverman]

INDEPENDENT AUDITORS' REPORT

To the Partners
Cutler Canal II Associates, Ltd.

We have audited the  accompanying  balance sheet of Cutler Canal II  Associates,
Ltd. as of December 31, 2003 and 2002, and the related statements of operations,
partners'  equity  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 Cutler Canal II  Associates,
Ltd. 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/ Reznick Fedder & Silverman
Atlanta, Georgia
January 28, 2004

                                       15
<PAGE>

[Letterhead of Reznick Group, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
Diamond Street Venture

We have audited the accompanying  balance sheets of Diamond Street Venture as of
December  31,  2004 and 2003,  and the  related  statements  of profit and loss,
changes in partners'  equity  (deficit) and cash flows for the years then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the 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  Diamond  Street  Venture as of
December 31, 2004 and 2003,  and the results of its  operations,  the 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.

In accordance with Government  Auditing Standards we have also issued our report
for  the  year  ended  December  31,  2004,  dated  January  28,  2005,  on  our
consideration  of Diamond  Street  Venture's  internal  control  over  financial
reporting and on our tests of its  compliance  with certain  provisions of laws,
regulations,  contracts and grant  agreements and other matters.  The purpose of
that report is to describe  the scope of our  testing of internal  control  over
financial  reporting and compliance and the results of that testing,  and not to
provide  an opinion on the  internal  control  over  financial  reporting  or on
compliance.  That report is an integral part of an audit performed in accordance
with  Government  Auditing  Standards  and should be considered in assessing the
results of our audit.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basis
financial  statements  taken as a whole.  The 2004  supplemental  information on
pages 27 through 30 is presented for purposes of additional  analysis and is not
a required part of the basic  financial  statements.  Such  information has been
subjected to the auditing procedures applied in the audit of the basic financial
statements  and, in our opinion,  is fairly  stated in all material  respects in
relation to the basic financial statements taken as a whole.

/s/ Reznick Group, P.C.
Baltimore, Maryland
January 28, 2005

                                       16
<PAGE>

[Letterhead of Reznick Fedder & Silverman]

INDEPENDENT AUDITORS' REPORT

To the Partners
Diamond Street Venture

We have audited the  accompanying  balance sheet of Diamond Street Venture as of
December  31,  2003 and 2002,  and the  related  statements  of profit and loss,
changes in partners'  equity  (deficit) and cash flows for the years then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the 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  Diamond  Street  Venture as of
December 31, 2003 and 2002,  and the results of its  operations,  the 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.

In accordance with Government  Auditing Standards we have also issued our report
for  the  year  ended  December  31,  2003,  dated  January  23,  2004,  on  our
consideration  of Diamond  Street  Venture's  internal  control  over  financial
reporting and on our tests of its  compliance  with certain  provisions of laws,
regulations,  contracts and grants.  That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basis
financial statements taken as a whole. The supplemental  information on pages 29
through  32 is  presented  for  purposes  of  additional  analysis  and is not a
required  part of the basic  financial  statements.  Such  information  has been
subjected to the auditing procedures applied in the audit of the basic financial
statements  and, in our opinion,  is fairly  stated in all material  respects in
relation to the basic financial statements taken as a whole.

/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 23, 2004

                                       17
<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,  2004  and  2003,  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, 2004 and 2003, 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 8, 2005

                                       18
<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

                                       19
<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, 2004 and
2003, 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, 2004 and 2003,  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 27, 2005

                                       20
<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

                                       21
<PAGE>

[Letterhead of Reznick Group, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
Palm Beach Apartments, Ltd.

We have audited the accompanying  balance sheets of Palm Beach Apartments,  Ltd.
as of December  31, 2004 and 2003,  and the related  statements  of  operations,
partners'  equity,  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 Palm Beach Apartments, Ltd., as
of December 31, 2004 and 2003,  and the results of its  operations  and its cash
flows  for the  years  then  ended  in  conformity  with  accounting  principles
generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Partnership  will  continue as a going  concern.  As discussed in Note 14 to the
financial  statements,  the  Partnership  has  suffered  recurring  losses  from
operations and has a capital  deficiency that raises substantial doubt regarding
its ability to continue as a going  concern.  Management's  plans in  connection
with these matters are also  described in Note 14. The  financial  statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial  statements taken as a whole. The supplemental  information on page 22
is presented for purposes of  additional  analysis and is not a required part of
the basic  financial  statements.  Such  information  has been  subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion,  is fairly  stated in all  material  respects in relation to the
basic financial statements taken as a whole.

/s/ Reznick Group, P.C.
Atlanta, Georgia
February 8, 2005

                                       22
<PAGE>

[Letterhead of Reznick Fedder & Silverman]

INDEPENDENT AUDITORS' REPORT

To the Partners
Palm Beach Apartments, Ltd.

We have audited the accompanying  balance sheets of Palm Beach Apartments,  Ltd.
as of December  31, 2003 and 2002,  and the related  statements  of  operations,
partners'  equity,  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 Palm Beach Apartments, Ltd., as
of December 31, 2003 and 2002,  and the results of its  operations  and its cash
flows  for the  years  then  ended  in  conformity  with  accounting  principles
generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Partnership  will  continue as a going  concern.  As discussed in Note 14 to the
financial  statements,  the  Partnership  has  suffered  recurring  losses  from
operations and has a capital  deficiency that raises substantial doubt regarding
its ability to continue as a going  concern.  Management's  plans in  connection
with these matters are also  described in Note 14. The  financial  statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
financial  statements taken as a whole. The supplemental  information on page 23
is presented for purposes of  additional  analysis and is not a required part of
the basic  financial  statements.  Such  information  has been  subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion,  is fairly  stated in all  material  respects in relation to the
basic financial statements taken as a whole.

/s/ Reznick Fedder & Silverman
Atlanta, Georgia
February 13, 2004

                                       23
<PAGE>

[Letterhead of Reznick Group, P.C.]

INDEPENDENT AUDITORS' REPORT

To the Partners
Brookland Park Plaza Limited Partnership

We have audited the  accompanying  balance sheet of Brookland Park Plaza Limited
Partnership as of December 31, 2004,  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,  2004,  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.

The  accompanying  financial  statements  have been  prepared  assuming that the
Partnership  will  continue as a going  concern.  As  discussed in Note J to the
financial  statements,  the Partnership  has not generated  sufficient cash flow
from operations to cover its debt service requirements and there is surplus cash
(deficiency) as of December 31, 2004. These conditions raise  substantial  doubt
about its ability to continue as a going concern.  Management's  plans in regard
to these matters are also described in Note J. The ultimate outcome of the above
matters  cannot  presently be  determined,  and the financial  statements do not
include any adjustments that might result from the outcome of this uncertainty.

In accordance with Government  Auditing  Standards and the  "Consolidated  Audit
Guide for Audits for HUD Programs"  (the  "Guide"),  we have also issued reports
dated  February 26, 2005 on our  consideration  of Brookland  Park Plaza Limited
Partnership's  internal control over financial reporting and on our tests of its
compliance with specific requirements  applicable to major HUD programs and fair
housing and  non-discrimination.  Those reports are an integral part of an audit
performed in accordance  with  Government  Auditing  Standards and the Guide and
should be considered in assessing 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 20 through 32 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/ Reznick Group, P.C.
Baltimore, Maryland
Taxpayer Identification Number:  52-1088612
February 26, 2005
Lead Auditor: Richard G. Schaefer

                                       24
<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

                                       25
<PAGE>

[Letterhead of Reznick Fedder & Silverman]

INDEPENDENT AUDITORS' REPORT

To the Partners
Brookland Park Plaza Limited Partnership

We have audited the  accompanying  balance sheet of Brookland Park Plaza Limited
Partnership as of December 31, 2002,  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,  2002,  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 and the  "Consolidated  Audit
Guide for Audits of HUD Programs," we have also issued reports dated January 27,
2003 on our consideration of Brookland Park Plaza Limited Partnership's internal
control and on its compliance with specific requirements applicable to major HUD
programs and fair housing and non-discrimination.  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 21 through 26 is presented for purposes of  additional  analysis and is
not a required part of the basic financial  statements of the partnership.  Such
information has been subjected to the auditing  procedures  applied in the audit
of the basic financial  statements and, in our opinion, is fairly stated, in all
material  respects,  in relation to the basic  financial  statements  taken as a
whole.

/s/ Reznick Fedder & Silverman
Bethesda, Maryland
Taxpayer Identification Number: 52-1088612
January 27, 2003

Lead Auditor: Renee G. Scruggs

                                       26
<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  (Ohio Limited  Partnership),  as of December 31, 2004 and 2003, 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, 2004 and 2003, 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 14, 2005

                                       27
<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

                                       28
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                     ASSETS


                                                                                     March 31,
                                                                           ----------------------------
                                                                               2005            2004
                                                                           ------------    ------------
<S>                                                                        <C>             <C>
Investment in property:

Land                                                                       $  4,005,633    $  4,005,633
Building and improvements                                                    75,814,413      75,798,582
Accumulated depreciation                                                    (30,492,001)    (28,372,375)
                                                                           ------------    ------------

Net investment in property                                                   49,328,045      51,431,840
Cash and cash equivalents                                                       942,431       1,216,053
Cash and cash equivalents held in escrow                                      1,987,739       1,222,301
Deferred financing costs, net                                                 1,009,427       1,302,170
Other assets                                                                    593,336         383,808
                                                                           ------------    ------------

Total assets                                                               $ 53,860,978    $ 55,556,172
                                                                           ============    ============


                         LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)


Liabilities:

  Mortgage notes payable                                                   $ 43,771,002    $ 44,697,118
  Accrued interest payable                                                    2,358,266       2,180,744
  Other accrued expenses and liabilities                                      2,818,326       2,200,263
  Due to local  general  partners and  affiliates  of local partnerships      8,017,084       6,378,776
  Development fees payable                                                    1,151,510       1,151,510
  Real estate taxes payable                                                     571,993         174,018
  Due to General Partner and its affiliates                                  11,784,402      10,190,654
                                                                           ------------    ------------

Total liabilities                                                            70,472,583      66,973,083
                                                                           ------------    ------------

Minority interests in local partnerships                                     (3,891,976)     (2,796,249)
                                                                           ------------    ------------

Partners' capital (deficit):

  Limited partners (38,125 BUC$ issued and outstanding)                     (13,404,752)     (9,326,280)
  General partner (1 BUC$ issued and outstanding)                               685,123         705,618
                                                                           ------------    ------------

Total partners' capital (deficit)                                           (12,719,629)     (8,620,662)
                                                                           ------------    ------------

Total liabilities and partners' capital (deficit)                          $ 53,860,978    $ 55,556,172
                                                                           ============    ============
</TABLE>



          See accompanying notes to consolidated financial statements.

                                       29
<PAGE>

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

                                                               Year Ended March 31,
                                                     -----------------------------------------
                                                         2005          2004*           2003*
                                                     -----------   ------------   ------------
<S>                                                  <C>           <C>            <C>
Revenues
Rental income                                        $10,150,683   $  9,876,634   $  9,973,773
Other income                                             794,927        870,728        829,675

Interest income                                           10,174         12,093         15,827
                                                     -----------   ------------   ------------

                                                      10,955,784     10,759,455     10,819,275
                                                     -----------   ------------   ------------

Expenses
Interest                                               3,954,462      4,048,105      4,170,172
Interest-related parties (Note 6 and 7)                  849,765        706,985        577,593
Depreciation and amortization                          2,412,369      2,440,364      2,429,909
Operating and other                                      996,430        921,634        914,339
Taxes and insurance                                    1,555,257      1,501,816      1,374,659
Repairs and maintenance                                2,696,126      2,483,200      2,749,023
General and administrative                             2,910,149      2,744,390      2,618,709

General and administrative-related parties (Note 6)      775,920        761,720        761,733
                                                     -----------   ------------   ------------

Total expenses                                        16,150,478     15,608,214     15,596,137
                                                     -----------   ------------   ------------

Loss before minority interest                         (5,194,694)   (4,848,759)    (4,776,862)

Minority interest in loss of local partnerships        1,095,727      1,048,921      1,139,863
                                                     -----------   ------------   ------------

Net loss                                             $(4,098,967)  $ (3,799,838)  $ (3,636,999)
                                                     ===========   ============   ============

Net loss-limited partners                            $(4,078,472)  $ (3,780,839)  $ (3,618,814)
                                                     ===========   ============   ============

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

Net loss per BUC$ - limited partners                 $   (106.98)  $     (99.17)  $     (94.92)
                                                     ===========   ============   ============
</TABLE>

*  Reclassified for comparative purposes.

          See accompanying notes to consolidated financial statements.

                                       30
<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, 2002                 $ (1,183,825)   $ (1,926,627)   $    742,802    $     38,126

Net Loss                        (3,636,999)     (3,618,814)        (18,185)              0
                              ------------    ------------    ------------    ------------

Partners' capital (deficit)
March 31, 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
                              ============    ============    ============    ============
</TABLE>



                See accompanying notes to consolidated financial statements.

                                       31
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                         Year Ended March 31,
                                                              -----------------------------------------
                                                                 2005           2004           2003
                                                              -----------    -----------    -----------
<S>                                                           <C>            <C>            <C>
Cash flows from operating activities:
Net loss                                                      $(4,098,967)   $(3,799,838)   $(3,636,999)
                                                              -----------    -----------    -----------
Adjustments to reconcile net loss to net cash used in
  operating activities:
Depreciation and amortization                                   2,412,369      2,440,364      2,429,909
Minority interest in loss of local partnerships                (1,095,727)    (1,048,921)    (1,139,863)
(Increase) decrease in cash held in escrow                       (765,438)        96,043        363,167
Increase (decrease) in real estate taxes
  payable                                                         397,975         (5,858)        97,998
Increase in accrued interest payable                              177,522         58,326         81,510
Increase in other assets                                         (209,528)       (16,353)       (66,008)
Increase (decrease) in other accrued expenses
  and liabilities                                                 863,352       (150,028)     1,084,764
                                                              -----------    -----------    -----------
Total adjustments                                               1,780,525      1,373,573      2,851,477
                                                              -----------    -----------    -----------

Net cash used in operating activities                          (2,318,442)    (2,426,265)      (785,522)
                                                              -----------    -----------    -----------

Cash flows from investing activities:

Investments in property                                           (15,831)       (52,236)       (39,188)
                                                              -----------    -----------    -----------


Net cash used in investing activities                             (15,831)       (52,236)       (39,188)
                                                              -----------    -----------    -----------

Cash flows from financing activities
Proceeds from mortgage notes                                            0      1,197,500              0
Payments on mortgage notes                                       (926,116)    (1,794,597)      (721,555)
Increase in deferred costs                                              0         (9,362)             0
Advances from General Partner                                   1,348,459      1,663,375      1,452,201
Increase in due to Local General Partners and affiliates of
  Local Partnerships, General Partner and its affiliates        1,074,974        847,278         61,202
Decrease in due to Local General Partners and affiliates of
  Local Partnerships, General Partner and its affiliates                0        (59,353)      (355,920)
Advance from local limited partner                                563,334        505,316        728,415

Distribution to minority interest                                       0           (557)          (307)
                                                              -----------    -----------    -----------

Net cash provided by financing activities                       2,060,651      2,349,600      1,164,036
                                                              -----------    -----------    -----------

Net (decrease) increase in cash and cash
  equivalents                                                    (273,622)      (128,901)       339,326

Cash and cash equivalents at beginning of year                  1,216,053      1,344,954      1,005,628
                                                              -----------    -----------    -----------
Cash and cash equivalents at end of year                      $   942,431    $ 1,216,053    $ 1,344,954
                                                              ===========    ===========    ===========
Supplemental disclosures of cash flow information:
Interest paid                                                 $ 4,626,705    $ 4,696,764    $ 4,666,255
                                                              ===========    ===========    ===========
</TABLE>



          See accompanying notes to consolidated financial statements.

                                       32
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


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 Related  Capital Company  ("RCC").  On November 17, 2003,
CharterMac acquired RCC, which is the indirect parent of RCC Manager L.L.C., 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.  Independence  SLP L.P.
("SLP"),  an affiliate of RCC, 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, 2005, the Partnership has investments in eight Local Partnerships.


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 date of  acquisition  whose cost  approximates  market
value.

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 date of acquisition  held for payment of
real estate  taxes and  insurance,  tenant  security  deposits  and  replacement
reserves.

                                       33
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


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, 2005, no distributions have been paid.

h)  New Accounting Pronouncements

On  December  16,  2004,  the FASB  issued  Statement  of  Financial  Accounting
Standards  ("SFAS") No. 153,  Exchanges of Nonmonetary  Assets - An Amendment of
APB Opinion No. 29 ("SFAS No.  153").  The  amendments  made by SFAS No. 153 are
based on the principle that  exchanges of nonmonetary  assets should be measured
based on the  fair  value  of the  assets  exchanged.  Further,  the  amendments
eliminate the narrow exception for exchanges for nonmonetary  assets that do not
have  "commercial  substance."  SFAS No. 153 is effective for nonmonetary  asset
exchanges  occurring  in fiscal  periods  beginning  after  June 15,  2005.  The
Partnership  does not believe that the adoption of SFAS No. 153 on June 15, 2005
will  have  a  material  effect  on  the  Partnership's  consolidated  financial
statements.

In  January  2003,  the  Financial   Accounting   Standards  Board  issued  FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities" ("FIN 46").
FIN 46 is applicable  immediately for variable  interest  entities created after
January 31, 2003. For variable  interest  entities  created  before  February 1,
2003,  the  provisions of FIN 46 are applicable no later than December 15, 2003.
The Partnership has not created any variable interest entities after January 31,
2003. In December 2003, the FASB  redeliberated  certain proposed  modifications
and revised FIN 46 ("FIN 46 (R)").  The revised  provisions  were  applicable no
later than the first reporting  period ending after March 15, 2004. The adoption
of FIN 46 (R) did not have a  material  impact  on the  Partnership's  financial
reporting and disclosure.

In May 2003,  the FASB issued SFAS No. 150,  "Accounting  for Certain  Financial
Instruments with  Characteristics  of both Liabilities and Equity." SFAS No. 150
changes the accounting for certain  financial  instruments  that, under previous
guidance,  could be classified as equity or "mezzanine" equity, by now requiring
those  instruments  to  be  classified  as  liabilities  (  or  assets  in  some
circumstances)  in the  Consolidated  Balance  Sheets.  Further,  SFAS  No.  150
requires  disclosure  regarding the terms of those  instruments  and  settlement
alternatives.  The  guidance in SFAS No. 150  generally  was  effective  for all
financial  instruments  entered  into or modified  after May 31,  2003,  and was
otherwise effective at the beginning of the first interim period beginning after
June 15, 2003. The Partnership has evaluated SFAS No. 150 and determined that it
does  not  have  an  impact  on  the  Partnership's   financial   reporting  and
disclosures.


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 accumulated amortization
as of March 31, 2005 and 2004 is $4,319,436 and $4,019,979, respectively.

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 7).

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

                                       34
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


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.


NOTE 4 - Investment in Property

The Partnership's Properties and related debt at March 31 were:
<TABLE>
<CAPTION>

                                            Net Investment in Property    Mortgage Notes Payable
                                            --------------------------   -------------------------
              Description (a)                  2005            2004          2005          2004
------------------------------------------  -----------    -----------   -----------   -----------
<S>                                         <C>            <C>           <C>           <C>
Apartment Complexes:

RMB Limited Partnership (Hubbard's Ridge)   $ 2,762,678    $ 2,933,334   $ 4,473,400   $ 4,519,054
 Garland, TX
Cutler Canal II Associates, Ltd.              7,568,352      7,875,271     5,610,221     5,675,068
 Miami, FL
Diamond Street Venture (b)                    1,386,121      1,526,094     2,866,414     2,891,356
 Philadelphia, PA
Papillion Heights Apartments L.P.             1,400,163      1,437,773     1,160,969     1,183,317
 Papillion, NE
Hill Top Homes Apartments Limited
  Partnership                                 5,346,661      5,531,851     3,001,742     3,109,436
 Arlington, TX
Palm Beach Apartments, Ltd. (Summer Creek
  Villas)                                    26,743,429     27,686,049    23,202,835    23,793,641
 West Palm Beach, FL
Brookland Park Plaza Limited Partnership      3,117,193      3,344,485     2,285,018     2,317,981
 Richmond, VA
Compton Townhouses Limited Partnership        1,003,448      1,096,983     1,170,403     1,207,265
                                            -----------    -----------   -----------   -----------
 Cincinnati, OH
                                            $49,328,045    $51,431,840   $43,771,002   $44,697,118
                                            ===========    ===========   ===========   ===========
</TABLE>


(a) The  Partnership  holds a 66.5%  interest  in  Summer  Creek  Villas,  a 98%
interest in Hubbard's Ridge, 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.

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:
<TABLE>
<CAPTION>

                                              Amount
                                           ------------
<C>                                        <C>
2005                                       $  3,516,725
2006                                          4,074,760
2007                                          1,138,286
2008                                         22,450,105
2009                                            362,940
Thereafter                                   12,228,186
                                           ------------
                                           $ 43,771,002
                                           ============
</TABLE>

Mortgage  notes  consist of both first  mortgages  and support loans (second and
third  mortgages).  First  mortgages  amounting to $38,831,002  bear interest at
rates  ranging  from  5.83% to 10.5%  and have  final  maturities  ranging  from
September 1, 2006 to May 1, 2031.  First  mortgages  include  $23,202,835 in the
form of a guaranteed bond bearing interest at 10.451% (including a .125% service
fee payable to an affiliate of the Local General  Partner)  maturing on June 20,
2008.  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,  and a  $2,500,000  loan  bearing
interest  at a  maximum  rate  of 9% and  maturing  on  January  16,  2005.  The
$2,500,000  loan includes a base interest rate of 3% and an additional  interest

                                       35
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


rate of 6%. The base interest rate is payable  annually from Project Income,  as
defined  in the  loan  agreement,  and can be  deferred  if  Project  Income  is
inadequate.   The  additional  interest  is  payable  from  Project  Income,  if
available,  and only after payment of a cumulative  annual 12% return on capital
to the  limited  partners  of the Local  Partnership.  Currently,  only the base
interest rate is being paid; however, the additional interest of 6% continues to
be accrued in the accompanying consolidated financial statements.

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
$1,078,500 due April 17, 2008.

At March 31, 2005 and 2004,  the  estimated  fair values of the  mortgage  notes
payable were  approximately  $38,405,367 and  $39,307,053,  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
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 for the years ended March 31, 2005,  2004
and 2003 were as follows:
<TABLE>
<CAPTION>

                                                              Years Ended March 31,
                                                         ------------------------------
                                                           2005       2004       2003
                                                         --------   --------   --------
<S>                                                      <C>        <C>        <C>
Partnership management fees (a)                          $236,760   $252,986   $240,656
Expense reimbursement (b)                                 134,454     95,165     85,781
Local administrative fees (d)                              20,250     20,250     20,250
                                                         --------   --------   --------
Total general and administrative - General Partner        391,464    368,401    346,687
                                                         --------   --------   --------
Property management fees incurred to affiliates of the
   subsidiary partnerships' general partners (c)          384,456    393,319    415,046
                                                         --------   --------   --------
Total general and administrative - related parties       $775,920   $761,720   $761,733
                                                         ========   ========   ========
</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  $1,138,000 and $901,000 were accrued
and unpaid as of March 31, 2005 and 2004, 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  $105,000
and $96,000 were accrued and unpaid as of March 31, 2005 and 2004, respectively.

(c) As of  December  31,  2004,  the  properties  owned  by  six  of  the  Local
Partnerships  are managed by a Local General  Partner or its  affiliates and one
Local  Partnership  is managed by an affiliate of the General  Partner and Local
General Partner.  Property  management fees incurred by subsidiary  partnerships
amounted to $410,854,  $431,166 and $440,564 for the years ended March 31, 2005,
2004 and 2003, respectively.  Of these fees $384,456, $393,319 and $415,046 were
earned by affiliates of the Local General Partners, of which $167,238,  $159,865
and $157,983 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.



                                       36
<PAGE>


                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


B)  Interest Related Party Expenses

During the year ended March 31,  2005,  the General  Partner and its  affiliates
advanced  $1,593,748 to the Partnership and as of March 31, 2005 and 2004, total
advances outstanding are $11,784,402 and $10,190,654, respectively. The advances
are  unsecured,  and bear interest at prime +2% and are due on demand.  Interest
expense  incurred at the  Partnership  level for the years ended March 31, 2005,
2004 and 2003  totaled  $595,442,  $475,640  and  $378,534,  respectively.  Such
interest expense was eliminated in consolidation. The Partnership, in turn, used
these funds to make operating  advances to Summer Creek Villas (see Note 9). The
advances are  unsecured,  bear  interest at prime +2%, and are payable from cash
flow as defined by the local partnership agreement. Interest expense recorded by
Summer  Creek  Villas  relating to such  advances  for the years ended March 31,
2005, 2004 and 2003 totaled $811,153, $668,373 and $538,981,  respectively. Such
interest expense is included in the line item "Interest-related  parties" in the
financial statements.


NOTE 7 - Local General Partners and Affiliates of Local Partnerships

Certain  Local  General  Partners  and their  affiliates  provided  services  in
connection  with the  construction,  financing and  development of the Apartment
Complexes. Interest is accrued on certain loans made by two of the Local General
Partners during the years ended March 31, 2005, 2004 and 2003, respectively. One
of the loans is by one of the Local  General  Partners in Summer  Creek  Villas,
Ltd. with a principal  balance at March 31, 2005 of $3,500,000  bearing interest
at prime + 2%, with  repayments to be made from  available  cash flows or out of
available net sale or refinancing  proceeds of the Local Partnership.  The other
loan is by one of the  Local  General  Partners  of Hill  Top  Homes  Apartments
Limited  Partnership  ("Hill Top") with a principal balance at March 31, 2004 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 the Local General Partners and their affiliates for
the years ended March 31,  2005,  2004,  and 2003 are  included in the line item
"Interest-related parties" in the financial statements and are summarized below:

<TABLE>
<CAPTION>

                                       Year Ended March 31,
                                 ------------------------------
                                   2005       2004       2003
                                 --------   --------   --------
<S>                              <C>        <C>        <C>
Summer Creek Villas (1)          $214,442   $175,022   $160,446
Hill Tops                          38,612     38,612     38,612
                                 --------   --------   --------

                                 $253,054   $213,634   $199,058
                                 ========   ========   ========
</TABLE>

(1)  This interest  expense is included in the total  interest  expense  amounts
     disclosed in Note 6.

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  has 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 vary 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, 2005, all Operating  Deficit
Guaranty Agreements have expired.

The Local General Partner of Summer Creek Villas was formerly  obligated to fund
operating  deficits under two separate  operating  deficit guaranty  agreements.
Total  advances  made by the Local General  Partner under the operating  deficit
guaranties totaled $2,742,460.  In addition,  the Local General Partner has made
voluntary  loans in  excess of its  obligations  under  the  guaranties  to fund
operations of $1,645,074, even though as of December 31, 1997, the Local General
Partner was no longer  required to fund  operations  of the Summer Creek Villas.
Additional  voluntary  loans  during the year ended  March 31,  2005 and 2004 of
$2,118,334 and $2,418,647, respectively, have been received from the Partnership
and Palm Beach Investors, L.P. (Washington Mutual).

At both March 31, 2005 and 2004,  development fees of $1,151,510 were payable to
various Local General Partners.

                                       37
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005



NOTE 8 - Quarterly Financial Information (Unaudited)
<TABLE>
<CAPTION>

                           First Quarter    Second Quarter     Third Quarter    Fourth Quarter
                          ---------------   ---------------   ---------------   ---------------

Fiscal Year 2005
----------------------

<S>                       <C>               <C>               <C>               <C>
Total Revenue             $    2,589,848    $    2,670,142    $    2,543,946    $    3,151,848
                          ==============    ==============    ==============    ==============
Net loss                  $     (861,462)   $     (882,559)   $     (949,396)   $   (1,405,550)
                          ==============    ==============    ==============    ==============
Net loss per BUC$ -
  limited partners        $       (22.48)   $       (23.03)   $       (24.78)   $       (36.69)
                          ==============    ==============    ==============    ==============
<CAPTION>

Fiscal Year 2004
----------------------
<S>                       <C>               <C>               <C>               <C>
Total Revenue             $    2,499,145    $    2,545,149    $    2,596,534    $    3,118,627
                          ==============    ==============    ==============    ==============
Net loss                  $     (799,405)   $     (832,173)   $     (904,421)   $   (1,263,839)
                          ==============    ==============    ==============    ==============
Net loss per BUC$ -
  limited partners        $       (20.86)   $       (21.72)   $       (23.60)   $       (32.99)
                          ==============    ==============    ==============    ==============
</TABLE>


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 2004, the account balances exceeded the FDIC limit.


NOTE 10 - Commitments and Contingencies

Subsidiary Partnership - Going Concern

Summer Creek Villas Local Partnership
-------------------------------------
Summer Creek  Villas has  experienced  lower than  expected  economic  occupancy
levels  over the  course  of the last  several  years,  which  has  resulted  in
recurring  losses from  operations  and has adversely  affected the liquidity of
Summer Creek  Villas.  Despite an increase in rent levels  during 2004 and 2003,
Summer  Creek  Villas'  operations  are impeded by the  inability to raise rents
sufficiently  to pay for the operating  and debt costs.  Summer Creek Villas has
been unable to obtain maximum rents as potential  residents are restricted based
on  county  median  income  levels,  which  limit  the  maximum  income  that  a
prospective resident can earn. The Summer Creek Villas has been obligated, since
1996, to repay significant amounts of principal on its mortgage.

During 2002,  in an effort to improve  occupancy,  Summer Creek Villas  invested
funds to improve the  physical  condition  of the  property.  Such  improvements
primarily consisted of painting,  landscaping,  new playgrounds,  and individual
units fixture and finish replacements.

The Local General Partner of Summer Creek Villas was formerly  obligated to fund
operating  deficits under two separate  operating  deficit guaranty  agreements.
Total  advances  made by the Local General  Partner under the operating  deficit
guaranties totaled $2,742,460.  In addition,  the Local General Partner has made
voluntary  loans in  excess of its  obligations  under  the  guaranties  to fund
operations of $1,645,074, even though as of December 31, 1997, the Local General
Partner was no longer required to fund operations of Summer Creek Villas.

Effective  January 1, 1999, Summer Creek Villas entered into a funding agreement
with Palm Beach Investor,  L.P. (the 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 provides for a second series of loans to
Summer  Creek Villas in the years 2002,  2003 and 2004,  in amount not to exceed
$1,500,000 in aggregate.  Although no formal  agreements  have been reached with
the other partners,  additional loans from the Partnership (which is the Class A
limited  partner) are expected to be obtained in accordance with the loans to be
provided  under the funding  agreement.  Loans made in 2004 and 2003 under these
funding agreements to fund operating  deficit's total $2,118,334 and $2,418,647,
respectively.  Of such amounts,  $1,555,000  and  $1,913,331  were loaned by the
Partnership in 2004 and 2003, respectively.

These  loans are  expected  to  enable  the  Summer  Creek  Villas  to  continue
operations  and make  payments on its  mortgage  while  management  endeavors to
improve  occupancy  rates and  rental  rates to  sufficient  levels  to  sustain
operations independent of such funding.

During 2003,  the  management  agent,  an affiliate of Summer Creek Villas,  was
reimbursed  by Summer Creek Villas for operating  advances,  made in the current
and  prior  years,  in the form of  unreimbursed  payroll  in the net  amount of
$720,678.  As of  December  31,  2004 and  2003,  the  management  agent was due
$182,719 and $122,649,  respectively.  The management  agent is not obligated to
provide such advances.

                                       38
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


As of March 31, 2005 and 2004, the  consolidated  financial  statements  include
total assets of $28,892,115 and $29,513,452,  respectively, total liabilities of
$43,016,433 and $40,265,248, respectively, and a minority interest of $4,076,665
and $2,982,210, respectively, attributable to this subsidiary.

Summer Creek  Villas'  ability to continue  its  operations  is  dependent  upon
management  achieving  the plans  described  in the  foregoing  paragraphs.  The
accompanying  consolidated  financial  statements do not include any adjustments
that might result from the outcome of this uncertainty. Any adjustments would be
limited solely to Summer Creek Villas' financial statements.

Subsidiary Partnership - Other

Summer Creek Villas
-------------------
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 will require roofing to be replaced on
substantially all of the buildings of Summer Creek Villas.  In addition,  Summer
Creek Villas has incurred  costs to clean up after the  hurricanes  and costs to
repair  damages  to  certain  units.  In  total,  damages  are  estimated  to be
approximately $1,218,000. As of December 31, 2004 the claim had not been settled
and repairs have not begun. The delay is because the insurance company is in the
process of determining  whether the entire roof of each building is needed to be
replaced.  Repairs are expected to consist of removing existing roofing material
and installing new roofing  material.  Through December 31, 2004 the Partnership
incurred $188,000 of costs associated with temporary repairs and clean-up. These
costs have been deferred pending  resolution of the insurance  claim.  Insurance
proceeds are expected to cover the cost of all expenses related to the hurricane
damage.

                                       39
<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.

                                       40
<PAGE>

                                    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 Related
Capital Company ("RCC") which controls the General Partner has adopted a code of
ethics. See http://www.chartermac.com

On November 17, 2003,  CharterMac  acquired RCC, which is the indirect parent of
RCC Manager L.L.C., 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
a majority of the General Partner's management team remained unchanged.

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

Stuart J. Boesky                        Member, Executive Vice President and
                                        Chief Operating Officer


Denise L. Kiley (1)                     Vice President

Marc D. Schnitzer                       Vice President

Glenn F. Hopps                          Treasurer

Teresa Wicelinski                       Secretary

(1) On February 25, 2005,  Ms. Kiley  announced  her  retirement as Chief Credit
    Officer and trustee of CharterMac,  the indirect  parent of RCC Manager LLC,
    the managing member of the General  Partner.  Upon her retirement,  she will
    also resign from her position as Vice President of the General Partner.

ALAN P. HIRMES,  50, is the sole  stockholder of one of the general  partners of
RCC, the real estate finance affiliate of The Related Companies, L.P. ("TRCLP").
Mr. Hirmes has been a Certified Public  Accountant in New York since 1978. Prior
to joining  Related in October  1983,  Mr.  Hirmes was employed by Wiener & Co.,
certified public accountants.  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").

STUART J. BOESKY,  49, is the sole stockholder of one of the general partners of
RCC, the real estate  finance  affiliate of TRCLP.  Mr.  Boesky  practiced  real
estate  and tax law in New York  City with the law firm of  Shipley &  Rothstein
from 1984  until  February  1986 when he joined  Related.  From 1983 to 1984 Mr.
Boesky  practiced  law with the  Boston  law firm of Kaye,  Fialkow,  Richmond &
Rothstein (which subsequently merged with Strook & Strook & Lavan) and from 1978
to 1980 was a consultant  specializing  in real estate at the accounting firm of
Laventhol & Horwath.  Mr. Boesky graduated from Michigan State University with a
Bachelor of Arts degree and from Wayne State  School of Law with a Juris  Doctor
degree.  He then  received  a Master of Laws  degree  in  Taxation  from  Boston
University  School of Law.  Mr.  Boesky  also serves on the Board of Trustees of
CharterMac and AMAC.

DENISE L. KILEY,  45, is an Executive Vice President and Chief  Underwriter  for
RCC, responsible for overseeing the investment  underwriting and approval of all
multifamily residential properties invested in RCC-sponsored  corporate,  public
and  private  equity  and debt  funds.  Ms.  Kiley is also  responsible  for the
strategic planning and implementation of the firm's mortgage financing programs.
Prior to joining Related in 1990, Ms. Kiley had experience acquiring, financing,
and managing the assets of multifamily residential properties. From 1981 through
1985 she was an auditor  with a national  accounting  firm.  Ms.  Kiley  holds a
Bachelor of Science degree in Accounting  from Boston College and is a Member of
the  Affordable  Housing  Roundtable.  Ms.  Kiley  also  serves  on the Board of
Trustees of CharterMac. As noted above, Ms. Kiley is retiring from CharterMac.

MARK D. SCHNITZER, 44, is an Executive Vice President of RCC and Director of the
firm's  Tax  Credit  Acquisitions  Group.  Mr.  Schnitzer  received  a Master of
Business  Administration  degree from The Wharton  School of the  University  of
Pennsylvania  in December 1987, and joined Related in January 1988. From 1983 to
1986,  Mr.  Schnitzer  was a  Financial  Analyst  in the Fixed  Income  Research
department of The First Boston Corporation in New York. Mr. Schnitzer received a
Bachelor of Science degree, summa cum laude, in Business Administration from the
School of  Management at Boston  University.  Mr.  Schnitzer  also serves on the
Board of Trustees of CharterMac.

                                       41
<PAGE>

GLENN F. HOPPS,  42,  joined RCC 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.

TERESA  WICELINSKI,  39,  joined  RCC in June  1992,  and prior to that date was
employed  by  Friedman,  Alpren  &  Green,  certified  public  accountants.  Ms.
Wicelinski  graduated  from Pace  University  with a Bachelor  of Arts 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, 2005, Messrs.  Boesky and Hirmes each own 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 RCC.

As of June 2, 2005, 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, 2005, 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 Accountant Fees and Services

Audit Fees
----------
The aggregate fees billed by Reznick Group, P.C. (formerly  Reznick,  Fedder and
Silverman,  CPAs) and their respective affiliates (collectively,  "Reznick") for
professional  services rendered for the audit of our annual financial statements
for the  years  ended  December  31,  2004 and 2003 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 and $25,000, respectively.

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

Tax Fees
--------
The aggregate fees billed by Weiser LLP (formerly, Rubin and Katz LLP) and their
respective  affiliates   (collectively,   "Weiser")  for  professional  services
rendered  for the  preparation  of our annual tax  returns  for the years  ended
December 31, 2004 and 2003 were $27,000 and $27,500, respectively.

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

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


                                       42
<PAGE>

                                     PART IV


Item 15. Exhibits and Financial Statement Schedules
<TABLE>
<CAPTION>
                                                                                                        Sequential
                                                                                                           Page
                                                                                                        -----------
<S>                                                                                                          <C>
(a) 1.   Financial Statements
         --------------------

         Report of Independent Registered Public Accounting Firm                                             11

         Consolidated Balance Sheets at March 31, 2005 and 2004                                              29

         Consolidated Statements of Income for the Years Ended March 31, 2005, 2004 and 2003                 30

         Consolidated Statements of Changes in Partners' Capital (Deficit) for the Years Ended
         March 31, 2005, 2004 and 2003                                                                       31

         Consolidated Statements of Cash Flows for the Years Ended March 31, 2005, 2004 and 2003             32

         Notes to Consolidated Financial Statements                                                          33

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

         Report of Independent Registered Public Accounting Firm on Schedules                                49

         Schedule III - Real Estate and Accumulated Depreciation                                             50

         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                                                           44

(31.1)   Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)                                          47

(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)                                                       48

(99.1)   Balance Sheet and Report of Independent Registered Public Accounting Firm                           54
</TABLE>

                                       43
<PAGE>

Item 15. Exhibits and Financial Statement Schedules (continued)
<TABLE>
<CAPTION>

                                                                                                        Jurisdiction
         Subsidiaries of the Registrant (Exhibit 21)                                                  of  Organization
         ------------------------------                                                               ----------------
         <S>                                                                                                 <C>
         RMB Limited Partnership                                                                             TX
         Culter Canal II Associates, Ltd.                                                                    FL
         Diamond Street Venture                                                                              PA
         Papillion Heights Apartments L.P.                                                                   MO
         Hill Top Homes Apartments Limited Partnership                                                       TX
         Palm Beach Apartments, Ltd.                                                                         FL
         Brookland Park Plaza Limited Partnership                                                            MD
         Compton Townhouses Limited Partnership                                                              OH
</TABLE>

                                       44
<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 17, 2005                   By:  /s/ Alan P. Hirmes
      -------------                        ------------------
                                           Alan P. Hirmes
                                           Member, President and
                                           Chief Executive and Financial Officer



<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:



      Signature                       Title                            Date
--------------------   ------------------------------------       --------------



/s/ Alan P. Hirmes     Member and President
------------------     (Chief Executive and Financial             June 17, 2005
Alan P. Hirmes         Officer) of RCC Partners 96., L.L.C.       -------------



/s/ Stuart J. Boesky   Member and Executive Vice President
--------------------   (Chief Operating Officer) of               June 17, 2005
Stuart J. Boesky       RCC Partners 96., L.L.C.                   -------------



/s/ Glenn F. Hopps
------------------     Treasurer (Chief Accounting Officer)       June 17, 2005
Glenn F. Hopps         of RCC Partners 96., L.L.C.                -------------

                                       45
<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, 2005 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 boards of directors of the General Partners:

         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 17, 2005                    By:  /s/ Alan P. Hirmes
               -------------                         ------------------
                                                     Alan P. Hirmes
                                                     Chief Executive Officer and
                                                     Chief Financial Officer


<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, 2005 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 17, 2005



<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, 2005.
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.


REZNICK GROUP, P.C.


Bethesda, Maryland
May 31, 2005

                                       49
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                 MARCH 31, 2005
<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)
   Garland, TX                           $ 4,473,400    $   107,237    $   965,136     $ 4,053,296    $   185,180
Cutler Canal II Associates, Ltd. (2)
   Miami, FL                               5,610,221        807,071      1,388,350       9,277,084         67,728
Diamond Street Venture (3)
   Philadelphia, PA                        2,866,414          9,729        234,465       2,395,124        273,218
Papillion Heights Apartments L.P. (1)
   Papillion, NE                           1,160,969         63,329      1,816,598         275,776         66,552
Hill Top Homes Apartments L.P. (1)
   Arlington, TX                           3,001,742        553,841      3,690,150       3,544,302        316,368
Palm Beach Apartments Ltd, (1)
   (Summer Creek Villas)
   West Palm Beach, FL                    23,202,835      2,396,876     10,578,563      25,980,637      1,876,795
Brookland Park Plaza L.P. (1)
   Richmond, VA                            2,285,018         50,000        109,850       5,913,667        376,165
Compton Townhouses L.P. (1)
   Cincinnati, OH                          1,170,403         17,550        476,708       1,924,498         28,203
                                         -----------    -----------    -----------     -----------    -----------

                                         $43,771,002    $ 4,005,633    $19,259,820     $53,364,384    $ 3,190,209
                                         ===========    ===========    ===========     ===========    ===========


<CAPTION>


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

RMB Limited Partnership
   (Hubbard's Ridge) (1)
   Garland, TX                          $   107,237     $ 5,203,612    $ 5,310,849    $ 2,548,172
Cutler Canal II Associates, Ltd. (2)
   Miami, FL                                807,071      10,733,162     11,540,233      3,971,881
Diamond Street Venture (3)
   Philadelphia, PA                           9,729       2,902,807      2,912,536      1,526,414
Papillion Heights Apartments L.P. (1)
   Papillion, NE                             63,329       2,158,926      2,222,255        822,092
Hill Top Homes Apartments L.P. (1)
   Arlington, TX                            553,841       7,550,820      8,104,661      2,758,000
Palm Beach Apartments Ltd, (1)
   (Summer Creek Villas)
   West Palm Beach, FL                    2,396,876      38,435,995     40,832,871     14,089,442
Brookland Park Plaza L.P. (1)
   Richmond, VA                              50,000       6,399,682      6,449,682      3,332,489
Compton Townhouses L.P. (1)
   Cincinnati, OH                            17,550       2,429,409      2,446,959      1,443,511
                                        -----------     -----------    -----------    -----------

                                        $ 4,005,633     $75,814,413    $79,820,046    $30,492,001
                                        ===========     ===========    ===========    ===========

<CAPTION>


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

RMB Limited Partnership
   (Hubbard's Ridge) (1)
   Garland, TX                                  5/90      12/89             30
Cutler Canal II Associates, Ltd. (2)
   Miami, FL                                    1/91       1/90             40
Diamond Street Venture (3)
   Philadelphia, PA                            12/90       1/90             40
Papillion Heights Apartments L.P. (1)
   Papillion, NE                               12/90       4/90             40
Hill Top Homes Apartments L.P. (1)
   Arlington, TX                               12/90       6/90             40
Palm Beach Apartments Ltd, (1)
   (Summer Creek Villas)
   West Palm Beach, FL                          8/91       6/90             40
Brookland Park Plaza L.P. (1)
   Richmond, VA                                12/90       7/90           27.5
Compton Townhouses L.P. (1)
   Cincinnati, OH                               6/92       1/92             40
</TABLE>


(1)  First mortgage
(2)  Includes first and second mortgages
(3)  Includes first, second and third mortgages
(4)  At March 31,  2005,  the  Partnership  holds a 66.5%  interest in the Local
     Partnerships  of Summer Creek  Villas,  a 98% interest in Hubbard's  Ridge,
     Hill Top Homes and Compton Townhouses and a 98.99% interest in Cutler Canal
     II, 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. 50


                                       50
<PAGE>

                       PATRIOT TAX CREDIT PROPERTIES L.P.
                             (a limited partnership)
                                AND SUBSIDIARIES
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                 MARCH 31, 2005
                                   (continued)
<TABLE>
<CAPTION>

                                          Cost of Property and Equipment                   Accumulated Depreciation
                                    ------------------------------------------   ------------------------------------------

                                                                     Years Ended March 31,
                                    ---------------------------------------------------------------------------------------

  Note A - Reconciliation               2005           2004           2003           2005           2004            2003
----------------------------        ------------   ------------   ------------   ------------   ------------   ------------
<S>                                 <C>            <C>            <C>            <C>            <C>            <C>
Balance at beginning of year        $ 79,804,215   $ 79,751,979   $ 79,712,791   $ 28,372,375   $ 26,237,792   $ 24,091,263
Additions during year:
Improvements                              15,831         52,236         39,188
                                    ------------   ------------   ------------
Depreciation expense (1)                                                            2,119,626      2,134,583      2,146,529
                                                                                 ------------   ------------   ------------

Balance at close of year            $ 79,820,046   $ 79,804,215   $ 79,751,979   $ 30,492,001   $ 28,372,375   $ 26,237,792
                                    ============   ============   ============   ============   ============   ============
</TABLE>

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

                                       51
<PAGE>

                                                                    Exhibit 99.1

















                                BALANCE SHEET AND
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

                             RCC PARTNERS 96, L.L.C.

                                 MARCH 31, 2005


                                       52
<PAGE>

                             RCC Partners 96, L.L.C.


                                TABLE OF CONTENTS




                                                                           PAGE
                                                                           ----

    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                 54


    FINANCIAL STATEMENTS


        BALANCE SHEET                                                       55


        NOTES TO BALANCE SHEET                                              56

                                       53
<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,  2005.  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 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 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, 2005, in conformity with  accounting  principles  generally  accepted in the
United States of America.


Reznick Group, P.C.
Bethesda, Maryland
May 31, 2005

                                       54
<PAGE>

                             RCC Partners 96, L.L.C.

                                  BALANCE SHEET

                                 March 31, 2005
<TABLE>
<CAPTION>

                                     ASSETS



     <S>                                                             <C>
     Due from limited partnership                                    $1,151,196
                                                                     ----------

                                                                     $1,151,196
                                                                     ==========

                         LIABILITIES AND MEMBERS' EQUITY



     Due to affiliate                                                $1,151,196
     Members' equity                                                          0
                                                                     ----------

                                                                     $ 1,151,196
                                                                     ===========
</TABLE>



        The accompanying notes are an integral part of this balance sheet

                                       55
<PAGE>

                             RCC Partners 96, L.L.C.

                             NOTES TO BALANCE SHEET

                                 March 31, 2005


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 Related Capital Company  ("RCC")  pursuant to a purchase  agreement
dated as of December 19, 1996 among PBP and its affiliates and RCC.

On November 17, 2003,  CharterMac  acquired RCC, which is the indirect 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 RCC have had significant  involvement with Patriot
and the Local  Partnerships,  of which five are owned by RCC affiliates.  RCC 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.

                                       56
<PAGE>

                             RCC Partners 96, L.L.C.

                       NOTES TO BALANCE SHEET - CONTINUED

                                 March 31, 2005


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,  2005,  Patriot  owes the  Company  $1,151,196  for  partnership
management fees pursuant to the Limited Partnership Agreement.  The Company owes
$1,151,196 to their affiliates as of March 31, 2005.

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:
<TABLE>
<CAPTION>

<S>                                                                  <C>
General Partner capital at March 31, 2005                            $ 685,123

Less: Adjustment to estimated realizable value                        (685,123)
                                                                     ---------

Balance - March 31, 2005                                             $       0
                                                                     =========
</TABLE>

                                       57
<PAGE>

                             RCC Partners 96, L.L.C.

                       NOTES TO BALANCE SHEET - CONTINUED

                                 March 31, 2005


NOTE C -   INVESTMENT IN LIMITED PARTNERSHIP (continued)

The summarized  consolidated  balance sheet at March 31, 2005 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
<TABLE>
<CAPTION>

                                     ASSETS

<S>                                                                 <C>
INVESTMENT IN PROPERTY                                              $ 49,328,045

OTHER ASSETS
     Cash and cash equivalents                                           942,431
     Cash and cash equivalents, held in escrow                         1,987,739
     Deferred financing costs, net                                     1,009,427
     Other assets                                                        593,336
                                                                    ------------

Total assets                                                        $ 53,860,978
                                                                    ============


                   LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

LIABILITIES
     Mortgage notes payable                                         $ 43,771,002
     Accrued interest payable                                          2,358,266
     Other accrued expenses and liabilities                            2,818,326
     Due to general partners and affiliates of local partnerships      8,017,084
     Development fees payable                                          1,151,510
     Real estate taxes payable                                           571,993
     Due to general partners and its affiliates                       11,784,402
                                                                    ------------

Total liabilities                                                     70,472,583
                                                                    ------------

Minority interest in local partnerships                               (3,891,976)
                                                                    ------------

Partners' capital (deficit)
     Limited partners (38,125 BUC$ issued and outstanding)           (13,404,752)
     General partner (1 BUC$ issued and outstanding)                     685,123
                                                                    ------------

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

Total liabilities and partners' capital (deficit)                   $ 53,860,978
                                                                    ============
</TABLE>

                                       58
<PAGE>

                             RCC Partners 96, L.L.C.

                       NOTES TO BALANCE SHEET - CONTINUED

                                 March 31, 2005


NOTE C -   INVESTMENT IN LIMITED PARTNERSHIP (continued)

                      CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>

<S>                                              <C>
Revenues
     Rental income                               $ 10,150,683
     Other income                                     794,927
     Interest income                                   10,174
                                                 ------------

                                                   10,955,784

Expenses
     Interest                                       4,804,227
     Depreciation and amortization                  2,412,369
     Operating and other                              996,430
     Taxes and insurance                            1,555,257
     Repairs and maintenance                        2,696,126
     General and administrative                     3,038,455
     Property management fees                         410,854
     Partnership management fees                      236,760
                                                 ------------

     Total expenses                                16,150,478
                                                 ------------

Loss before minority interest                      (5,194,694)
Minority interest in loss of local partnership      1,095,727
                                                 ------------

Net loss                                         $ (4,098,967)
                                                 ============
</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.