**Exhibit 99.3**

 

Metropole ApartmentsAssociates, Ltd.

Boston, Massachusetts

 

INDEPENDENT AUDITORS’ REPORT

 

We have audited theaccompanying Balance Sheets of Metropole Apartments Associates, Ltd. (a FloridaLimited Partnership), as of December 31, 2002 and 2001, and the relatedStatements of Income, Partners’ Equity and Cash Flows for the years then ended.These financial statements are the responsibility of Metropole ApartmentsAssociates, Ltd.’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

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

 

In our opinion, the financialstatements referred to above present fairly,  in all material respects, the financial position of Metropole ApartmentsAssociates, Ltd, as of December 31, 2002 and 2001, and the results of itsoperations, the changes in partners’ deficit and cash flaws for the years thenended in conformity with accounting principles generally accepted in the UnitedStates of America.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. SuchInformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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To the Partners of

Beaver Brook Housing AssociatesLimited Partnership

 

Independent Auditors’ Report

 

We have audited theaccompanying balance sheets of Beaver Brook Housing Associates Limited Partnership(Case No. 34-06-020424443) as of December 31, 2002 and 2001 and the relatedstatements of income and expense, partners’ deficit, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audits to obtainreasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financialstatements referred to above present fair y, in all material respects, thefinancial position of Beaver Brook Housing Associates Limited Partnership atDecember 31, 2002 and 2001 and the results of its operations, its partners’deficit and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated January 21, 2003 onour consideration of Beaver Brook Housing Associates’ internal control and onits compliance with laws and regulations. That report is an integral part of anaudit performed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of our audit.

 

Our audits were conducted forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental data included in Schedules 1, 2 3 and 4 is presentedfor the purposes of additional analysis and is not a required part of the basicfinancial statements. The supplemental data has been subjected to the auditingprocedures applied in the audits of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

January 21, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

February 8, 2003

To the Partners

Hacienda Villa Associates, aLimited Partnership

 

We have audited theaccompanying balance sheet of Hacienda Villa Associates, a Limited Partnership,as of December 31, 2002, and the related statements of operations, partners’equity and cash flows for the year then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audits inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as wall as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly in all material respects, thefinancial position of Hacienda Villa Associates, a Limited Partnership, as ofDecember 31, 2002, and the results of its operations, changes in partners’equity and cash flows for the year then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 12 and 13 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To the Partners

Maywood Associates, Ltd.

A California LimitedPartnership

Corning, California

 

Independent Auditors’ Report

 

We have audited theaccompanying balance sheet of Maywood Associates, Ltd., A California LimitedPartnership, USDA, Rural Development Project Number 04-052-680184284, as ofDecember 31, 2002, and the related statements of operations, changes inpartners’ equity (deficit), and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit. The financial statements of Maywood Associates, Ltd. as ofDecember 31, 2001 were audited by other auditors whose report dated March 11,2002 expressed an unqualified opinion on those statements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Maywood Associates, Ltd., as of December 31, 2002, andthe results of its operations, changes in partners’ equity (deficit), and cashflows for the year then ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated January 22, 2003 on ourconsideration of Maywood Associates, Ltd.’s internal control structure and areport dated January 22, 2003 on its compliance with laws and regulations.Those reports are an integral part of an audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our audit.

 

Our audit was conducted for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplemental and other information is presented forpurposes of additional analysis and is not a required part of the financialstatements of Maywood Associates, Ltd. Such information has been subjected toauditing procedures applied in our audit of the financial statements and, inour opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Raitt Street Apartments, ACalifornia Limited Partnership

 

I have audited the accompanyingbalance sheets of, Raitt Street Apartments, A California Limited Partnership,as of December 31, 2002 and 2001, and the related statements of operations,partners’ equity, and cash flows for the years then ended.  These financial statements are theresponsibility of the partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with auditing standards generally accepted in the United States.Those standards require that I plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements.     An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. I believe that myaudits provide a reasonable basis for my opinion.

 

In my opinion the accompanyingfinancial statements referred to above present fairly, in all materialrespects, the financial position of Raitt Street Apartments, A CaliforniaLimited Partnership as of December 31, 2002 and 2001, and the results of itsoperations, the changes in partners’ equity, and cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 13 is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners

Springfield Housing Associates,L.P.

Springfield, Illinois

 

We have audited the accompanyingbalance sheet of Springfield Housing Associates, L.P., (a limited partnership),as of December 31, 2002 and the related statements of operations, partners’capital, and cash flows for the year then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Springfield Housing Associates, L.P., (a limitedpartnership) as of December 31, 2002, and the results of its operations,changes in partners’ capital and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Mueller, Walla & Albertson,P.C.

January 25, 2003

 

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Independent Auditor’s Report

 

To the Partners

 

Tappahannock Greens LimitedPartnership

 

I have audited the accompanyingbalance sheets of Tappahannock Greens Limited Partnership as of December 3l,2002 and 2001, and the related statements of operations, partners’ deficit andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

I conducted my audits inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States, and the U.S.Department of Agriculture, Farmers Home Administration Audit Program. Those standardsrequire that I plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. I believe thatmy audits provide a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Tappahannock Greens Limited Partnership as of December31, 2002 and 2001, and the results of its operations, changes in partners’deficit, and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued my report dated February 15, 2003 on myconsideration of Tappahannock Greens Limited Partnership’s internal controlover financial reporting and on my tests of its compliance with certainprovisions of laws and regulations.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Maidu Properties

(A California LimitedPartnership)

Rocklin, California

 

I have audited the accompanyingbalance sheets of Maidu Properties (A California Limited Partnership, as ofDecember 31, 2002 and 2001, and the related statements of income, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

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

 

In my opinion, the financialstatements referred to above present fairly, in all, material respects, thefinancial position of Maidu Properties (A California Limited Partnership) as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information for the years ended December 31, 2002 and2001, on pages 12 and 13, is presented for purposes of additional analysis andis not a required part of the basic financial statements. Such information hasbeen subjected to the audit procedures applied in the audits of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

Stockton, California

February 8, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners

Washington Heights IV, ALimited Partnership

Bismarck, North Dakota

 

We have audited theaccompanying balance sheets of Washington Heights IV, A Limited Partnership, asof December 31, 2002 and 2001 and the related statements of operations,partners’ equity and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 10 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

Valley City, North Dakota

January 30, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

The Partners

Woodside Housing Associates

 

We have audited the balancesheets of Woodside Housing Associates (a limited Partnership), RD Case No.23-01-010439878, as of December 31, 2002 and 2001, and the related statementsof operations, changes in partners’ equity (deficit), and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Woodside Housing Associates (a limited Partnership) as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended in conformity with U.S. generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated April 3, 2003, on ourconsideration of Woodside Housing Associates’ internal control over financialreporting and on our tests of its compliance with certain provisions of laws,regulations, and contracts. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be readin conjunction with this report in considering the results of our audit.

 

Our audits were conducted forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplementary information on pages 12 through 14 ispresented solely for the use of the Department of Agriculture, RuralDevelopment (USDA-RD) and is not a required part of the basic financialstatements. The supplementary information has been subjected to the auditprocedures applied in the audits of the basic financial statements and in ouropinion is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

Portland, Maine

April 3, 2003

 

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Independent Auditor’s Report

 

To the Partners

Franklin School Associates

Great Falls, Montana

 

We have audited theaccompanying balance sheets of Franklin School Associates, Franklin SchoolApartments (Project) as of December 31, 2002 and 2001, and the restatedstatements of income, changes in partners’ equity (deficit) and cash flows forthe years then ended. These financial statements are the responsibility of theProject’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

We conducted our audits inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of the Project as of December 31, 2002 and 2001, and theresults in its operations, changes in partners’ equity (deficit), and cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

Our audits were conducted forthe purpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplemental information on pages 13 to 15 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements of the Project. Such information has been subjected to theauditing procedures applied in the audits of the basic financial statementsand, in our opinion, is fairly stated in all material respects, in relation tothe basic financial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated February 5, 2003, on ourconsideration of the Project’s internal control over financial reporting and onour tests of its compliance with certain provisions of laws, regulations,contract, and grants. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be read in conjunctionwith this report in considering the results of our audit.

 

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To the Partners

London Arms/Lyn Mar LimitedPartnership

Boston, Massachusetts

 

INDEPENDENT AUDITORS’ REPORT

 

We have audited theaccompanying Balance Sheets of London Arms/Lyn Mar, Ltd. (a Florida LimitedPartnership of December 31, 2002 and 2001 and the related Statements of Income,Partners’ Equity and Cash Flows for the years then ended, These financialstatements are the responsibility of the management of London Arms/Lyn MarLimited Partnership. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of London Arms/Lyn Mar Limited Partnership as of December31, 2002 and 2001, and the results of its operations, the changes in partners’deficit and cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. SuchInformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Maidu Properties

(A California LimitedPartnership)

Rocklin, California

 

I have audited the accompanyingbalance sheets of Maidu Properties (A California Limited Partnership), as ofDecember 31, 2002 and 2001 related statements of income, partners’ equity, andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

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

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Maidu Properties (A California Limited Partnership) as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information for the years ended December 31, 2002 and2001, on pages 12 and 13, is presented for purposes of additional analysis andis not a required part of the basic financial statements. Such information hasbeen subjected to the audit procedures applied in the audits of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

Stockton, California

February 8, 2003

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

South Fork Heights LimitedPartnership

 

We have audited theaccompanying balance sheets of South Fork Heights Limited Partnership (a Texaslimited partnership), USDA Project No.: 05-53-742476220, as of December 31,2002 and 2001, and the related statements of operations, partners’ equity(deficit) and cash flows for the years then ended. These financial statementsare the responsibility of the partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of South Fork Heights Limited Partnership as of December 31,2002 and 2001, and the results of its operations and the cash flows for theyears then ended in conformity with U.S. generally accepted accountingprinciples.

 

Our audits were performed forthe purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 11 - 21 is presented for purposesof additional analysis required by the United States Department of Agricultureand is not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated, in all materialrespects, in relation to the basic financial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, we have also issued our report dated February 11, 2003, onour consideration of South Fork Heights Limited Partnership’s internal controlover financial reporting and our tests of its compliance with certain,provisions of laws, regulations, contracts and grants. This report is anintegral part of an audit performed in accordance with Government AuditingStandards and should, be read in conjunction with this report in consideringthe results of our audit.

 

Thompson, Derrig & Craig,P.C.

February 11, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners of

Briarwick Apartments, Ltd.

 

We have audited theaccompanying balance sheet of Briarwick Apartments, Ltd. (a Kentucky limitedpartnership) as of December 31, 2002, and the related statements of results ofoperations, changes in partners’ capital and cash flows for the year thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit. The financial statements of BriarwickApartments, Ltd. as of December 31, 2001 and 2000, were audited by otherauditors whose report dated March 28, 2002, expressed an unqualified opinion onthose statements.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Briarwick Apartments, Ltd. as of December 31, 2002, andthe results of its operations, changes in partners’ capital and its cash flowsfor the years then ended in conformity with accounting principles generallyaccepted, in the United States of America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated March 6, 2003, on ourconsideration of Briarwick Apartments, Ltd.’s internal control over financialreporting and tests of its compliance with certain provisions of laws andregulations. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be read in conjunctionwith this report in considering the results of our audit.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Franklin II Limited Partnership

 

I have audited the accompanyingbalance sheets of Franklin II Limited Partnership, RHS Project No.:55-009-541462949, as of December 31, 2002 and 2001, and the related statementsof operations, partners’ deficit and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted my audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial presentation. I believethat my audit provided a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Franklin II Limited Partnership, RHS Project No.:55-009-541462949, as of December 31, 2002, and the results of its operations,the changes in partners’ deficit and cash flows for the year the ended, inconformity with generally accepted accounting principles.

 

My audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 16 through 23 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, I have also issued reports dated January 10, 2003 on myconsideration of Franklin II Limited Partnership’s internal control and itscompliance with laws and regulation applicable to the financial statements.

 

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To the Partners

Nye County Associates

(A California LimitedPartnership)

DBA Spring Mountain Apartments

Cheyenne, Wyoming

 

Independent Auditors’ Report

 

We have audited theaccompanying balance sheet of Nye County Associates (A California LimitedPartnership) DBA Spring Mountain Apartments, USDA, Rural Development ProjectNumber 33-019-680192750, as of December 31, 2002, and the related statements ofoperations, changes in partners’ equity (deficit), and cash flows for the yearthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit. The financial statements of Nye CountyAssociates as of December 31, 2002, were audited by other auditors whosereport, dated March 11, 2002, expressed an unqualified opinion on thosestatements.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for ouropinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Nye County Associates, as of December 31, 2002, and theresults of its operations, changes in partners’ equity (deficit), and cashflows for the year the ended, in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated January 17, 2003 on ourconsideration of Nye County Associates’ internal control structure and a reportdated January 17, 2003 on its compliance with laws and regulations. Thosereports are an integral part of an audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with thisreport in considering the results of our audit.

 

Our audit was conducted for thepurpose of forming an opinion on the basic financial statements taken as awhole. The accompanying supplemental and other information is presented forpurposes of additional analysis and is not a required part of the financialstatements of Nye County Associates. Such information has been subjected toauditing procedures applied in our audit of the financial statements and, inour opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

Sacramento, California

January 17, 2003

 

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INDEPENDENT AUDITORS’REPORT

 

To the Partners

Prairie West Apartments III, ALimited Partnership

West Fargo, North Dakota

 

We have audited theaccompanying balance sheets of Prairie West Apartments III, A LimitedPartnership, as of December 31, 2002 and 2001 and the related statements ofoperations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Prairie West Apartments 111, A Limited Partnership as ofDecember 31, 2002 and 2001 and the results of its operations, the changes inpartners’ equity, and its cash flows for the years then ended, in conformitywith accounting principles generally accepted in the United States of America.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information on page 10 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Springfield Housing Associates,L.P.

Springfield, Illinois

 

We have audited theaccompanying balance sheet of Springfield Housing Associates, L.P., (a limitedpartnership), as of December 31, 2002 and the related statements of operations,partners’ capital, and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit inaccordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Springfield Housing Associates, L.P., (a limitedpartnership) as of December 31, 2002, and the results of its operations,changes in partners’ capital and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Mueller, Walla & Albertson,P.C.

January 25, 2003

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Waynesboro Associates, Limited

 

 

We have audited theaccompanying balance sheets of Waynesboro Associates, Limited (a Tennesseelimited partnership) d/b/a Waynesboro Village Apartments, RHS Project No.:48-091-621385326, as of December 31, 2002 and 2001, and the related statementsof operations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

We conducted our audits inaccordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the auditsto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Waynesboro Associates, Limited (a Tennessee limited partnership)d/b/a Waynesboro Village Apartments, RHS Project No.: 48-091-621385326, as ofDecember 31, 2002 and 2001, and the results of its operations, the changes inpartners’ equity and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America

 

In accordance with GovernmentAuditing Standards, we have also issued a report dated January 27, 2003 on ourconsideration of Waynesboro Associates, Limited’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts, and grants.

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the audit procedures appliedin the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statementstaken as a whole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Windsor II Limited Partnership

 

 

I have audited the accompanyingbalance sheets of Windsor II Limited Partnership, RHS Project No.:54-057-541440877, as of December 31, 2002 and 2001, and the related statementsof operations, partners’ deficit and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted my audit inaccordance with generally accepted auditing standards and Government AuditingStandards issued by the Comptroller General of the United States. Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial presentation. I believethat my audit provided a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects thefinancial position of Windsor II Limited Partnership, RHS Project No.: 54-057-541440877,as of December 31, 2002 and 2001, and the results of its operations, thechanges in partners’ deficit and cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

My audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 17 through 24 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, I have also issued reports dated January 10, 2003 on myconsideration of Windsor II Limited Partnership’s internal control and itscompliance with laws and regulations applicable to the financial statements.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Amherst Limited Partnership

 

I have audited the accompanyingbalance sheets of Amherst Limited Partnership, RHS Project No.:54-007-541486870, as of December 11, 2002 and 2001 and the related statementsof operations, partners’ deficit and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

I conducted my audit inaccordance with generally accepted auditing standards and Government AuditingStandards, issued by the Comptroller General of the United States. Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also-includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial presentation. I believethat my audit provided a reasonable basis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects thefinancial position of Amherst Limited Partnership, RHS Project No.:54-007-541486870, as of December 31, 2002 and 2001, and the results of itsoperations, the changes in partners’ deficit and cash flows for the years thenended, in conformity with generally accepted accounting principles.

 

My audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on pages 16 through 23 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordance with GovernmentAuditing Standards, I have also issued reports dated January 10, 2003 on myconsideration of Amherst Limited Partnership’s internal control and its compliancewith laws and regulation applicable to the financial statements.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of ChaparralAssociates:

 

 

I have audited the accompanyingbalance sheets of Chaparral Associates, a Limited Partnership (the“Partnership”) as of December 31, 2002 and 2001, and the related statements ofoperations, partners’ capital, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audits.

 

I conducted my audits inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment Auditing Standards issued by the Comptroller General of the UnitedStates, and contained in the U.S. Department of Agriculture, Farmers HomeAdministration Audit Program. Those standards require that I plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of the Partnership as of December 31, 2002 and 2001, and theresults of its operations and its cash flows for the years then ended inconformity, with generally ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued my report dated February 4, 2003 on myconsideration of the Partnership’s internal control over financial reportingand on my tests of its compliance with certain provisions of laws andregulations, contracts, and grants. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be readin conjunction with this report in considering the results of my audit.

 

The accompanying supplementaryinformation (beginning on page 10) is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in my opinion, is fairly stated, in allmaterial respects, in relation to the financial statements taken as a whole.

 

23

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

La Gema Del Barrio, ACalifornia Limited Partnership

 

 

I have audited the accompanyingbalance sheets of La Gema Del Barrio, A California Limited Partnership, as ofDecember 31, 2002 and 2001, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

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

 

In my opinion the accompanyingfinancial statements referred to above present fairly, in all materialrespects, the financial position of La Gema Del Barrio, A California LimitedPartnership as of December 31, 2002 and 2001, and the results of itsoperations, the changes in partners’ equity, and cash flows for the years thenended in conformity accounting principles generally accepted in the UnitedStates.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 13 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financial statementstaken as a whole.

 

 

Schonwit & Associates

January 24, 2003

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Maidu Properties

(A California LimitedPartnership)

Rocklin, California

 

I have audited the accompanyingbalance sheets of Maidu Properties (A California Limited Partnership), as ofDecember 31, 2002 and 2001, and the related statements of income, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

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

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Maidu Properties (A California Limited Partnership) as ofDecember 31, 2002 and 2001, and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

My audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplementary information for the years ended December 31, 2002 and2001, on pages 12 and 13, is presented for purposes of additional analysis andis not a required part of the basic financial statements such information hasbeen subjected to the audit procedures applied in the audits of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

Stockton, California

February 8, 2003

 

25

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of NavapaiAssociates:

 

I have audited the accompanyingbalance sheets of Navapai Associates, a Limited Partnership (the “Partnership”)as of December 31, 2002 and 2001, and the related statements of operations,partners’ capital, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audits.

 

I conducted my audits inaccordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained inGovernment Auditing Standards issued by the Comptroller General of the UnitedStates, and contained in the U.S. Department of Agriculture, Farmers HomeAdministration Audit Program. Those standards require that I plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. I believe that my audits provide a reasonablebasis for my opinion.

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of the Partnership as of December 31, 2002 and 2001 and theresults of its operations and its cash flows for the years then ended inconformity with generally ended in conformity with generally acceptedaccounting principles.

 

In accordance with GovernmentAuditing Standards, I have also issued my report dated February 4, 2003 on myconsideration of the Partnership’s internal control over financial reportingand on my tests of its compliance with certain provisions of laws andregulations, contracts, and grants. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be readin conjunction with this report in considering the results of my audit.

 

The accompanying supplementaryinformation (beginning on page 10) is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in my opinion, is fairly stated, in allmaterial respects, in relation to the financial statements taken as a whole.

 

 

February 4, 2003

 

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**INDEPENDENT AUDITOR’SREPORT**

 

To****thePartners

Deer Hill IILimited Partnership

Winston-Salem,North Carolina

 

We haveaudited the accompanying balance sheets of Deer Hill II Limited Partnership asof December 31, 2001 and 2000, and the related statements of income, partners’equity (deficit), and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 15,2002 on our consideration of Deer Hill II Limited Partnership’s internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

Greensboro,North Carolina

January 15,2002

 

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

King CityElderly Housing Associates

 

We haveaudited the accompanying balance sheet of the *King City Elderly Housing Associates (aCalifornia Limited Partnership)*as of December 31, 2001, and therelated statement of operations, partners’ equity, and cash flows for the yearthen ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits. The financial statements *of King CityElderly Housing Associates*for the year ended December 31, 2000 wereaudited by other auditors whose report, dated January 26, 2001 expressed anunqualified opinion on those statements.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of the *King City Elderly Housing Associates*asof December 31, 2001, and the results of its operations, changes in partners’ equityand cash flows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

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

 

28

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To thePartners

MetropoleApartments Associates, Ltd.

Boston,Massachusetts

 

INDEPENDENT AUDITORS’ REPORT

 

We haveaudited the accompanying Balance Sheets of Metropole Apartments Associates,Ltd. (a Florida Limited Partnership), as of December 31, 2001 and 2000, and therelated Statements of Income, Partners’ Equity and Cash Flows for the yearsthen ended. These financial statements are the responsibility of MetropoleApartments Associates, Ltd.’s management. Our responsibility is to express anopinion on these financial statements based on our audit.

 

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

 

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

 

Our audit was made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners of

OakviewLimited (A Limited Partnership)

Corunna, IN

 

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

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditcontained in Government Auditing Standards, issued by the Comptroller General ofthe United States, and the U.S. Department of Agriculture, Farmers HomeAdministration “Audit Program.” Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the mounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmater/al respects, the financial position of Oakview Limited (A LimitedPartnership) as of December 31, 2001 and 2000 and the results of its operationsand its cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 9 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 1, 2002 on our consideration of Oakview Limited’s (A LimitedPartnership) internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

30

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To thePartners of

Beaver BrookHousing Associates Limited Partnership

 

Independent Auditors’ Report

 

We haveaudited the accompanying balance sheets of Beaver Brook Housing AssociatesLimited Partnership (Case No. 34-06-020424443) as of December 31, 2001 and 2000and the related statements of income and expense, partners’ deficit, and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Beaver Brook Housing AssociatesLimited Partnership at December 31, 2001 and 2000 and the results of itsoperations, its partners’ equity and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 24,2002 on our consideration of Beaver Brook Housing Associates’ internal controland on its compliance with laws and regulations. That report is an integralpart of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

January 24,2002

 

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners of

BrooklynLimited (An Indiana Limited Partnership)

Corunna, IN

 

We haveaudited the accompanying balance sheets of Brooklyn Limited (An Indiana LimitedPartnership) as of December 31, 2001 and 2000, and the related statements of income,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

We conductedour audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States, and the U.S. Department of Agriculture, FarmersHome Administration “Audit Program.” Those standards require that we plan andperform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the mounts and disclosures in the financialstatements. Art audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide areasonable basis for our opinion.

 

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

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on page 9 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, we have also issued a report datedFebruary 1, 2002 on our consideration of Brooklyn Limited’s (An Indiana LimitedPartnership) internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

 

Fort Wayne,Indiana

February 1,2002

 

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**INDEPENDENTAUDITORS’REPORT**

 

To thePartners

CorinthHousing Redevelopment Company

 

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

 

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

 

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

 

In accordancewith Government Auditing Standards, we have also issued reports datedJanuary 30, 2002, on our consideration of the Corinth Housing RedevelopmentCompany’s internal control structure and its compliance with laws andregulations.

 

January 30, 2002

Albany, New York

 

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

Fawn RiverApartment Company Limited Partnership

d/b/a FawnRiver Apartments

 

We haveaudited the accompanying balance sheet of Fawn River Apartment Company LimitedPartnership d/b/a Fawn River Apartments (a partnership) Project#26-078-382856293 as of December 31, 2001 and 2000 and related statement ofoperations, partners’ deficit, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Fawn River Apartment CompanyLimited Partnership d/b/a Fawn River Apartments Project #26-078-382856293 as ofDecember 31, 2001 and 2000, and its operations, changes in partners’ equity,and cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

In accordancewith Government Auditing Standards, we have also issued a report dated January22, 2002, on our consideration of Fawn River Apartment Company LimitedPartnership d/b/a Fawn River Apartments Project #26-078-382856293 internalcontrol and a report dated January 22, 2002, on its compliance with laws and regulationsapplicable to the financial statements.

 

 

January 22,2002

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

Fountain GreenApartments, Ltd.

Panama City,Florida

 

We haveaudited the accompanying balance sheets of Fountain Green Apartments, Ltd., alimited partnership, USDA, Rural Development Project No: 09-46-592948719, as ofDecember 31, 2001 and 2000 and the related statements of operations, changes inpartners’ deficit and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Fountain Green Apartments, Ltd.,at December 31, 2001 and 2000, and the results of its operations and changes inpartners’ deficit and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

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

 

Panama City,Florida

February 15,2002

 

35

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

GlennwoodHotel Investors

**(**A****CaliforniaLimited Partnership**)**

Sacramento, California

 

We haveaudited the accompanying balance sheets of Glennwood Hotel Investors (ACalifornia Limited Partnership) as of December 31, 2001 and 2000, and therelated statements of income, partners’ equity (deficit), and cash flows forthe years then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Glennwood Hotel Investors (ACalifornia Limited Partnership) as of December 31, 2001 and 2000, and theresults of its operations and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

36

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**INDEPENDENT AUDITORS’REPORT**

 

To ThePartners

GreenwichHousing Redevelopment Company

 

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

 

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

 

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

 

In accordancewith Government Auditing Standards, we have also issued reports datedJanuary 30, 2002, on our consideration of Greenwich Housing RedevelopmentCompany’s internal control structure and its compliance with laws andregulations.

 

 

January 30,2002

Albany, NewYork

 

37

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**Independent Auditor’s Report**

 

To thePartners

GriftonHousing Associates

Charlotte,North Carolina

 

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

 

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

 

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

 

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

 

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

 

January 31, 2002

 

38

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**INDEPENDENT AUDITORS’ REPORT**

 

February 8, 2002

 

To thePartners

Haines CityApartments, Ltd.

 

We haveaudited the accompanying basic financial statements of Haines City Apartments,Ltd., as of and for the years ended December 31, 2001 and 2000, as listed inthe table of contents. These basic financial statements are the responsibilityof the partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

In ouropinion, the basic financial statements referred to above present fairly, inall material respects, the financial position of Haines City Apartments, Ltd.as of December 31, 2001 and 2000 and the results of its operations and its cashflows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated February 8,2002 on our consideration of Haines City Apartments, Ltd.’s internal controlover financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants. That report is anintegral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The additional information presented on pages 9 to14 is presented for the purposes of additional analysis and is not a requiredpart of the basic financial statements. The information on pages 9 to 13 hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole. Theinformation on page 14, which is of a nonaccounting nature, has not beensubjected to the auditing procedures applied in the audit of the basicfinancial statements, and we express no opinion on it.

 

39

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Independent Auditors’ Report

 

To thePartners

Kristin ParkApartments, Ltd.

and USDA RuralDevelopment

 

We haveaudited the accompanying balance sheets of Kristin Park Apartments, Ltd. (alimited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity (deficit) and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Kristin Park Apartments, Ltd. asof December 31, 2001 and 2000, and the results of its operations and thechanges in partners’ equity and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 29, 2002, on our consideration of Kristin Park Apartments, Ltd.’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with GovernmentAuditing Standards, and should be read in conjunction with this report inunderstanding the results of our audit.

 

Our auditswere conducted for the purpose of forming an opinion on the financial statementstaken as a whole. The supplemental information included in the report ispresented for purposes of additional analysis and is not a required part of thefinancial statements of Kristin Park Apartments, Ltd. Such information has beensubjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

January 29,2002

Farmington,New Mexico

 

40

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**INDEPENDENT AUDITOR’SREPORT**

 

To thePartners

MaywoodAssociates, Ltd.

(A CaliforniaLimited Partnership}

Cheyenne, WY

 

I have auditedthe accompanying balance sheet of Maywood Associates (A California LimitedPartnership), USDA Rural Development Case NO. 04-052-680184284, am of December31, 2001 and 2000, and the related statement of income, partners’ equity, andcash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

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

 

In my opinion,the financial statement referred to above present fairly, in all materialrespects, the financial position of Maywood Associates (A California LimitedPartnership) as of December 31, 2001 and 2000 and the results of its operationsand its cash flows for the years then ended, in conformity with generallyaccepted accounting principles.

 

In accordancewith *GovernmentAuditing Standards,*I have also issued a report dated March 11, 2002on my consideration of Maywood Associates’ internal control structure and areport dated March 11, 2002 on its compliance with laws and regulations.

 

Stockton,California

March 11, 2002

 

41

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Independent Auditors’ Report

 

To thePartners of

PedcorInvestments - 1989 - VIII, L.P.

(An IndianaLimited Partnership)

 

We haveaudited the accompanying balance sheet of Pedcor Investments - 1989 - VIII,L.P. (an Indiana Limited Partnership) as of December 31, 2001, and the relatedstatements of profit and loss and changes in partners’ equity (deficit) andcash flows for the year then ended. These financial statements are theresponsibility of management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

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

 

In ouropinion, the financial statements referred to above present fairly in allmaterial respects the financial position of Pedcor Investments - 1989 - VIII,L.P. as of December 31, 2001, and the results of its operations and changes inpartners’ equity (deficit) and cash flows for the year then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 25,2002, on our consideration of the Partnership’s internal controls and a reportdated January 25, 2002, on its compliance with laws and regulations.

 

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

 

42

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IndependentAuditors’ Report

 

To thePartners of

Quail Hollowof Warsaw Limited Partnership

(A NorthCarolina Limited Partnership)

 

We haveaudited the accompanying balance sheets of Quail Hollow of Warsaw Limited Partnership(a North Carolina Limited Partnership) as of December 31, 2001 and 2000, andthe related statements of operations, changes in partners’ equity (deficit),and cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 24,2002, on our consideration of the Partnership’s internal controls and a reportdated January 24, 2002, on its compliance with laws and regulations.

 

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

 

43

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

Raitt StreetApartments, A California Limited Partnership

 

I have auditedthe accompanying balance sheets of Raitt Street Apartments, A CaliforniaLimited Partnership, as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audits.

 

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

 

In my opinionthe accompanying financial statements referred to above present fairly, in all****materialrespects, the financial position of Raitt Street Apartments, A CaliforniaLimited Partnership as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ equity, and cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates.

 

My audits weremade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on page 13 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

January 25,2002

 

44

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

South ParisHeights Associates

(A LimitedPartnership)

 

We haveaudited the accompanying balance sheets of South Paris Heights Associates (ALimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statementsarethe responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of South Paris Heights Associates (ALimited Partnership) at December 31, 2001 and 2000, and the results of itsoperations and its cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our reports dated February1, 2002 on our consideration of the internal control over financial reportingof South Paris Heights Associates (A Limited Partnership) and our tests of itscompliance with certain provisions of laws, regulations, contracts and grants.Those reports are an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying additional information ispresented solely for the use of the U.S. Department of Agriculture RuralDevelopment and is not a required part of the basic financial statements. PartI of the Multiple Family Housing Borrower Balance Sheet, Form RD 1930-8,including the related supplement, and Column 2 (Actual), Parts I, II and III ofthe Multiple Family Housing Project Budget, Form RD 1930-7, have been subjectedto the auditing procedures applied in our audits of the basic financialstatements and, in our opinion, are fairly stated in all material respects inrelation to the basic financial statements taken as a whole. We have notaudited Parts IV, V and VI, and Columns 1 and 3 (Current Budget and ProposedBudget) of Parts I, II and III of Form RD 1930-7, and, accordingly, express noopinion thereon.

 

45

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INDEPENDENTAUDITORS’ REPORT

 

To thePartners

SpringfieldHousing Associates, L.P.

Springfield,Illinois

 

We haveaudited the accompanying balance sheet of Springfield Housing Associates, L.P.,(a limited partnership), as of December 31, 2001 and the related statements ofoperations, partners’ capital, and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audit.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Springfield Housing Associates, L.P., (a limitedpartnership) as of December 31, 2001, and the results of its operations,changes in partners’ capital and its cash flows for the year then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

Mueller, Walla& Albertson, P.C.

January 21,2002

 

46

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**Independent Auditor’sReport**

 

To thePartners

TappahannockGreens Limited Partnership

 

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

 

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

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Tappahannock Greens Limited Partnership as of December 31,2001 and 2000, and the results of its operations, changes in partners’ deficit,and its cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

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

 

February 15,2002

 

47

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

Village OaksApartments II, Ltd.

Panama City,Florida

 

We haveaudited the accompanying balance sheets of Village Oaks Apartments II, Ltd., alimited partnership, USDA, Rural Development Project No: 09-061-0592884971, asof December 31, 2001 and 2000 and the related statements of operations, changesin partners’ deficit and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

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

 

Panama City, Florida

February 15,2002

 

48

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**INDEPENDENT AUDITOR’SREPORT**

 

To thePartners

WestwoodSquare Limited Partnership

Winston-Salem,North Carolina

 

We haveaudited the accompanying balance sheets of Westwood Square Limited Partnershipas of December 31, 2001 and 2000, and the related statements of income,partners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 15,2002 on our consideration of Westwood Square Limited Partnership’s internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

Greensboro,North Carolina

January 15,2002

 

49

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

WilmingtonHousing Redevelopment Company

 

We haveaudited the accompanying balance sheets of Wilmington Housing RedevelopmentCompany as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ deficit, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on the financial statements basedon our audits.

 

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

 

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

 

In accordancewith Government Auditing Standards, we have also issued reports datedJanuary 30, 2002, on our consideration of Wilmington Housing RedevelopmentCompany’s internal control structure and its compliance with laws andregulations.

 

 

January 30,2002

Albany, NewYork

 

50

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Independent Auditor’s Report

 

To thePartners

HousingInvestors, Athens II, LTD.

Decatur,Alabama

 

We haveaudited the accompanying balance sheet of Housing Investors Athens II, Ltd. (apartnership) as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ capital, and cash flows for the year then ended and theaccompanying supplementary information which is presented only forsupplementary analysis purposes. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Housing Investors Athens II, Ltd.,as of December 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 09,2002 on our consideration of the Housing Investors Athens II, Ltd.’s internalcontrol and tests of its compliance with certain provisions of laws,regulations, contracts and grants.

 

February 9,2002

 

51

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners

MaiduProperties

(A CaliforniaLimited Partnership)

Rocklin,California

 

I have audited the accompanyingbalance sheets of Maidu Properties (A California Limited Partnership), as ofDecember 31, 2001 and 2000,  and therelated statements of  income,..partners’ equity, and cash flows for the years then ended.  These financial statements are theresponsibility of the Partnership’s management.  My responsibility is to express an opinion on these financialstatements based on my audits.

 

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

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Maidu Properties (A California Limited Partnership) as ofDecember 31, 2001 and 2000, and the results of its operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

My audits weremade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplementary information for the years ended December31, 2001 and 2000, on pages 12 and 13, is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the audit procedures applied in the audits ofthe basic financial statements and, in my opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Stockton,California

March 8, 2002

 

52

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IndependentAuditors’ Report

 

To thePartners of

PedcorInvestments - 1989 - X, L.P.

(An IndianaLimited Partnership)

 

We haveaudited the accompanying balance sheet of Pedcor Investments - 1989 - X, L.P.(an Indiana Limited Partnership) as of December 31, 2001, and the relatedstatements of profit and loss and changes in partners’ equity (deficit) andcash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

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

 

In ouropinion, the financial statements referred to above present fairly in allmaterial respects the financial position of Pedcor Investments - 1989 - X, L.P.as of December 31, 2001, and the results of its operations and changes inpartners’ equity (deficit) and cash flows for the year then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 25,2002, on our consideration of the Partnership’s internal controls and a reportdated January 25, 2002, on its compliance with laws and regulations.

 

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

 

January 25,2002

Carmel,Indiana

 

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners

Academy HillLimited Partnership

Winston-Salem,North Carolina

 

We haveaudited the accompanying balance sheets of Academy Hill Limited Partnership asof December 31, 2001 and 2000, and the related statements of income, partners’equity (deficit), and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 15,2002 on our consideration of Academy Hill Limited Partnership’s internalcontrol over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with that report in considering the results ofour audit.

 

Greensboro,North Carolina

January 15,2002

 

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Independent Auditors’ Report

 

To thePartners

BuckeyeSenior, Ltd.

and USDA RuralDevelopment

 

We haveaudited the accompanying balance sheets of Buckeye Senior, Ltd. (a limitedpartnership) as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ equity (deficit) and cash flows for the years then ended.These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Buckeye Senior, Ltd. as ofDecember 31, 2001 and 2000, and the results of its operations and the changesin partners’ equity (deficit) and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 26, 2002, on our consideration of Buckeye Senior, Ltd.’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is anintegral part of an audit performed in accordance with Government AuditingStandards, and should be read in conjunction with this report inunderstanding the results of our audit.

 

Our audits were conducted forthe purpose of forming an opinion on the financial statements taken as a whole.The supplemental information included in the report is presented for purposesof additional analysis and is not a required part of the financial statementsof Buckeye Senior, Ltd. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

January 26,2002

Farmington,New Mexico

 

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INDEPENDENT AUDITORS’ REPORT

 

CoronadoHousing Limited Partnership

c/o PimaCouncil on Aging

5055 EastBroadway, C-104

Tucson,Arizona 85711

 

We haveaudited the accompanying balance sheet of Coronado Housing Limited Partnershipas of December 31, 2001, and the related statements of operations, partners’equity, and cash flows for the year then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

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

 

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

 

March 7, 2002

 

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**Independent Auditor’sReport**

 

To thePartners

FranklinSchool Associates

Great Falls,Montana

 

We haveaudited the accompanying balance sheets of Franklin School Associates, FranklinSchool Apartments (Project) as of December 31, 2001 and 2000, and the relatedstatements of income, changes in partners’ equity (deficit) and cash flows forthe years then ended. These financial statements are the responsibility of theProject’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying supplemental information on pages13 to 15 is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements of the Project. Such information hasbeen subjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects, in relation to the basic financial statements taken as a whole.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 8,2002, on our consideration of the Project’s internal control over financialreporting and on our tests of its compliance with certain provisions of laws,regulations, contract, and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Kay L. Bowen& Associates, P.C.

February 8,2002

 

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HILLTOP APARTMENTS LTD.

Corinth, MS

 

We havecompiled the accompanying balance sheets of HILLTOP APARTMENTS LTD. as of December31, 2001 and 2000, and the related statements of income and changes inpartner’s equity for the years then ended, in accordance with Statements onStandards for Accounting and Review Services issued by the American Instituteof Certified Public Accountants.

 

A compilationis limited to presenting in the form of financial statements information thatis the representation of management. We have not audited or reviewed theaccompanying financial statements and, accordingly, do not express an opinionor any other form of assurance on them.

 

Management haselected to omit substantially all of the disclosures and the statement of cashflows required by generally accepted accounting principles. If the omitteddisclosures and statement of cash flows were included in the financialstatements, they might influence the user’s conclusions about the Company’sfinancial position, results of operations, and cash flows. Accordingly, thesefinancial statements are not designed for those who are not informed about suchmatters.

 

Metairie,Louisiana

January 17,2002

 

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To thePartners

LondonArms/Lyn Mar Limited Partnership

Boston,Massachusetts

 

INDEPENDENT AUDITORS’ REPORT

 

We haveaudited the accompanying Balance Sheets of London Arms/Lyn Mar, Ltd. (a FloridaLimited Partnership), as of December 31, 2001 and 2000 and the relatedStatements of Income, Partners’ Equity and Cash Flows for the years then ended.These financial statements are the responsibility of the management of LondonArms/Lyn Mar Limited Partnership. Our responsibility is to express an opinionon these financial statements based on our audit.

 

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

 

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

 

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

 

February 18,2002

 

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

South ForkHeights Limited Partnership

 

We haveaudited the accompanying balance sheets of South Fork Heights LimitedPartnership (a Texas limited partnership), USDA Project No.: 05z53-742476220,as of December 31, 2001 and 2000, and the related statements of operations,partners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of South Fork Heights LimitedPartnership as of December 31, 2001 and 2000, and the results of its operationsand the cash flows for the years then ended in conformity with generallyaccepted accounting principles.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated March 25,2002, on our consideration of South Fork Heights Limited Partnership’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants.

 

Our auditswere performed for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information on pages 12 - 23 ispresented for purposes of additional analysis required by the United StatesDepartment of Agriculture and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated, in all material respects, in relation to the basic financialstatements taken as a whole.

 

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**INDEPENDENT AUDITORS’REPORT**

To thePartners

WildridgeApartments, Ltd.

Panama City,Florida

 

We haveaudited the accompanying balance sheets of Wildridge Apartments, Ltd., alimited partnership, USDA, Rural Development Project No: 11-51-592863964, as ofDecember 31, 2001 and 2000 and the related statements of operations, changes inpartners’ deficit and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Wildridge Apartments, Ltd., atDecember 31, 2001 and 2000, and the results of its operations and changes inpartners’ deficit and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

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

 

Panama City,Florida

February 15,2002

 

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INDEPENDENTAUDITORS’REPORT

 

BrandywoodLimited Partnership

Madison,Wisconsin

 

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

 

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

 

In our opinionthe financial statements referred to above present fairly, in all materialrespects, the financial position of Brandywood Limited Partnership as ofDecember 31, 2001 and 2000 and the results of its operations and cash flows forthe years then ended in conformity with accounting principles generallyaccepted in the United States of America.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplemental information provided, asidentified in the table of contents, is presented for purposes of additionalanalysis and is not a required part of the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

Madison,Wisconsin

January 11,2001

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners of

BriarwickApartments, Ltd.

 

We haveaudited the accompanying balance sheets of Briarwick Apartments, Ltd. (aKentucky limited partnership) as of December 31, 2001, 2000, and 1999, and therelated statements of results of operations, changes in partners’ capital andcash flows for the years then ended. These financial Statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

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

 

In Ouropinion, the financial statements referred to above present fairly, in all materialrespects, tine financial position of Briarwick Apartments, Ltd. as of December31, 2001, 2000, and 1999, and the results of its operations, changes inpartners’ capital and its cash flows for the years then ended in conformitywith accounting principles generally accepted in the United States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated March 28,2002, on our consideration of Briarwick Apartments, Ltd.’s internal controlover financial reporting and tests of its compliance with certain provisions oflaws and regulations. This report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be read in conjunctionwith this report in considering the results of our audit.

 

West Liberty,Kentucky

March 28, 2002

 

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IndependentAuditors’ Report

 

To thePartners of

Bucksport ParkAssociates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Bucksport Park Associates (a MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit), and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

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

 

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IndependentAuditors’ Report

 

To thePartners of

Clymer HouseAssociates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Clymer House Associates (A MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit), and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

The accompanyingsupplementary information is presented for purposes of additional analysis andis not a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To thePartners of

Cornish ParkAssociates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Cornish Park Associates (a MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit), and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

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

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Franklin IILimited Partnership

 

I have auditedthe accompanying balance sheets of Franklin II Limited Partnership, RHS ProjectNo.: 55-009-541462949, as of December 31, 2001 and 2000 and the relatedstatements of operations, partners’ deficit and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

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

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Franklin II Limited Partnership, RHSProject No.: 55-009-541462949, as of December 31, 2001, and the results of itsoperations, the changes in partners’ deficit and cash flows for the year thenended, in conformity with generally accepted accounting principles.

 

My audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on pages 16 through 19 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, I have also issued reports datedJanuary 3, 2002 on my consideration of Franklin II Limited Partnership’sinternal control and its compliance with laws and regulations applicable to thefinancial statements.

 

Bethesda,Maryland

January 3,2002

 

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# **INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

Hunters ParkLimited Partnership

 

We haveaudited the accompanying balance sheets of Hunters Park Limited Partnership asof December 31, 2001 and 2000, and the related statements of operations,partners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of Hunters Park Limited Partnershipmanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

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

 

In accordancewith Government Auditing Standards, we have also issued our report datedJanuary 24, 2002 on our consideration of Hunters Park Limited Partnership’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report isan integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

 

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

 

Henderson,North Carolina

January 24,2002

 

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Partners

Ivan WoodsLimited Partnership

Okemos,Michigan

 

Independent Auditors’ Report

 

We haveaudited the accompanying balance sheets of Ivan Woods Limited Partnership as ofDecember 31, 2001 and 2000, and the related statements of revenue, expenses andpartners’ capital and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The schedules of renting, administrative,operating, maintenance, taxes and insurance expenses on page 9 are presentedfor the purpose of additional analysis and are not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements, and in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

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To thePartners

LakeridgeApartments of Eufaula, Ltd.

Panama City,Florida

 

#### Independent Auditors’ Report

 

We haveaudited the accompanying balance sheets of Lakeridge Apartments of Eufaula,Ltd., a limited partnership, USDA, Rural Development Project No:01-0030592933800, as of December 31, 2001 and 2000 and the related statementsof operations, changes in partners’ deficit and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financial statementsbased on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Lakeridge Apartments of Eufaula,Ltd., at December 31, 2001 and 2000, and the results of its operations andchanges in partners’ deficit and cash flows for the years then ended inconformity with accounting principles generally accepted in the United Statesof America.

 

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

 

Panama City,Florida

February 15,2002

 

70

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Independent Auditors’ Report

 

To thePartners

Los Caballos II, Ltd.

and USDA RuralDevelopment

 

We haveaudited the accompanying balance sheets of Los Caballos II, Ltd. (a limitedpartnership) as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 26, 2002, on our consideration of Los Caballos II, Ltd.’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is anintegral part of an audit performed in accordance with Government AuditingStandards, and should be read in conjunction with this report inunderstanding the results of our audits.

 

Our auditswere conducted for the purpose of forming an opinion on the financialstatements taken as a whole. The supplemental information included in thereport is presented for purposes of additional analysis and is not a requiredpart of the financial statements of Los Caballos II, Ltd. Such information hasbeen subjected to the auditing procedures applied in the audit of the financialstatements and, in our opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

January 26,2002

Farmington,New Mexico

 

71

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IndependentAuditors’ Report

 

To thePartners of

Nanty GloHouse Associates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Nanty Glo House Associates (a MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

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

 

72

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To ThePartners

Nye CountyAssociates

(A CaliforniaLimited Partnership)

Cheyenne, WY

 

I have auditedthe accompanying balance sheets of Nye County Association (A California LimitedPartnership), USDA Rural Development Case No. 33-019-680192750, as of December31, 2001 and 2000, and the related statements of income, partners’ equity, andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. My responsibility is to obtainan opinion on these financial statements based on my audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing standards,*I**have also issued a report dated March 11,2002 on my consideration of Nye County Associates’ internal control structureand a report dated March 1l, 2002 on its compliance with laws and regulations.

 

Stockton,California

March 11, 2002

 

73

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

Villas ofLakeridge, Ltd.

Panama City,Florida

 

We haveaudited the accompanying balance sheets of Villas of Lakeridge, Ltd., a limitedpartnership, USDA, Rural Development Project No: 01-0030592930819, as ofDecember 31, 2001 and 2000 and the related statements of operations, changes inpartners’ deficit and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Villas of Lakeridge, Ltd., atDecember 31, 2001 and 2000, and the results of its operations and changes inpartners’ deficit and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

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

 

74

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INDEPENDENT AUDITORS’ REPORT

 

To thePartners

WaynesboroAssociates, Limited

 

We haveaudited the accompanying balance sheets of Waynesboro Associates, Limited (aTennessee limited partnership) d/b/a Waynesboro Village Apartments, RHS ProjectNo.: 48-091-621385326, as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ equity, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Waynesboro Associates, Limited (aTennessee limited partnership) d/b/a Waynesboro Village Apartments, RHS ProjectNo.: 48-091-621385326, as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ equity and its cash flows for the yearsthen ended in conformity with accounting principles generally accepted in theUnited States of America.

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 11,2002 on our consideration of Waynesboro Associates, Limited’s internal controlover financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and grants.

 

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

 

 

Columbia,Tennessee

February 11,2002

 

75

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To thePartners

Windsor IILimited Partnership

 

I have auditedthe accompanying balance sheets of Windsor II Limited Partnership, *RHS Project*No.:54-057-541440877, as of December 31, 2001 and 2000, and the related statementsof’ operations, partners’ deficit and cash flows for the years then ended.These financial statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

I conducted myaudit in accordance with generally accepted auditing standards and GovernmentAuditing Standards, issued by the Comptroller General of the United States.Those standards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, aswell as evaluating the overall financial presentation. I believe that my auditprovided a reasonable basis for my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Windsor II Limited Partnership, RHS ProjectNo.: 54-057-541440877, as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ deficit and cash flows for the years thenended, in conformity with generally accepted accounting principles.

 

My audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on pages 17 through 20 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, I have also issued reports datedJanuary 3, 2002 on my consideration of Windsor II Limited Partnership’sinternal control and its compliance with laws and regulations applicable to thefinancial statements.

 

Bethesda,Maryland

January 3,2002

 

76

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To****thePartners

AmherstLimited Partnership

 

I have auditedthe accompanying balance sheets of Amherst Limited Partnership, RHS ProjectNo.: 54-007-541486870, as of December 31, 2001 and 2000 and the relatedstatements of operations, partners’ deficit and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

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

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Amherst Limited Partnership, RHS ProjectNo.: 54-007-541486870, as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ deficit and cash flows for the years thenended, in conformity with generally accepted accounting principles.

 

My audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplemental information on pages 16 through 19 ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

In accordancewith Government Auditing Standards, I have also issued reports datedJanuary 3, 2002 on my consideration of Amherst Limited Partnership’s internalcontrol and its compliance with laws and regulations applicable to thefinancial statements.

 

Bethesda,Maryland

January 3,2002

 

77

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**INDEPENDENT AUDITOR’S REPORT**

 

To thePartners

Beckwood ManorSix Limited Partnership

 

We haveaudited the accompanying balance sheets of Beckwood Manor Six LimitedPartnership, RD Project No. 03-048-0710677265 (the Partnership), as of December31, 2001 and 2000, and the related statements of profit (loss), changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 31,2002 on our consideration of the Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

January 31,2002

 

78

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IndependentAuditors’ Report

 

To thePartners of

Bethel ParkAssociates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Bethel Park Associates (a MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit), and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

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

 

79

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners

BLANCHARDSENIORS APARTMENTS II

 

We haveaudited the accompanying balance sheets of BLANCHARD SENIORS APARTMENTS II, RHSPROJECT NO. 22-009-721116881 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 10,2002 on our consideration of BLANCHARD SENIORS APARTMENTS II’s internal controland a report dated February 10, 2002 on its compliance with laws andregulations applicable to the financial statements.

 

Metairie,Louisiana

February 10,2002

 

80

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To thePartners

Brantwood LaneLimited Partnership

Charlotte,North Carolina

 

We haveaudited the accompanying balance sheets of Brantwood Lane Limited Partnership(a Georgia limited partnership) as of December 31, 2001 and 2000, and therelated statements of operations, partners’ deficit, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

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

 

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

 

January 31,2002

 

81

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**Independent Auditors’ Report**

 

To thePartners

BridgeCoalition Limited Partnership

New York, NewYork

 

We haveaudited the accompanying balance sheet of Bridge Coalition Limited Partnershipas of December 31, 2001 and the related statements of operations, changes inpartners’ equity and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Bridge Coalition LimitedPartnership as of December 31, 2001 and the results of its operations and cashflows for the year then ended, in conformity with generally accepted accountingprinciples.

 

New York, NewYork

February 5,2002

 

82

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**INDEPENDENT AUDITOR’S REPORT**

 

To thePartners

Carriage RunLimited Partnership

 

I have auditedthe accompanying balance sheets of Carriage Run Limited Partnership, as ofDecember 31, 2001 and 2000 and the related statements of operations, partners’equity (deficit), and cash flows for the years then ended. These financialstatements are the responsibility of management. My responsibility is toexpress an opinion on these financial statements based on my audit.

 

I conducted myaudit in accordance with generally accepted auditing standards and GovernmentAuditing Standards issued by the Comptroller General of the United States,and the U.S. Department of Agriculture, Farmers Home Administration AuditProgram, Those standards require that I plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatements presentation. I believe that my audit provides a reasonable basisfor my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Carriage Run Limited Partnership, as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity (deficit), and its cash flow for the years then ended inconformity with generally accepted accounting principles.

 

In accordancewith government auditing standards, I have also issued reports dated February15, 2002 on my consideration of Carriage Run Limited Partnership’s internalcontrol and on its compliance with laws and regulations.

 

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

 

Patterson& Company, P.C.

February 15,2002

 

83

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

CedarwoodApartments Limited Partnership

Raleigh, NorthCarolina

 

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

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Cedarwood Apartments LimitedPartnership as of December 31, 2001 and 2000 and the results of its operationsand its cash flows for the years then ended in conformity with U.S. generallyaccepted accounting principles,

 

In accordancewith *GovernmentAuditing Standards,*we have also issued our report dated January 17,2002 on our consideration of Cedarwood Apartments Limited Partnership’sinternal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. This report isan integral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

Our auditswere conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying supplementary information onSchedules 1 and 2 is presented for purposes of additional analysis and is not arequired part of the basic financial statements of Cedarwood Apartments LimitedPartnership. Such information has been subjected to the audit proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

January 17,2002

 

84

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INDEPENDENTAUDITOR’S REPORT

 

To thePartners of Chaparral Associates:

 

I have auditedthe accompanying balance sheets of Chaparral Associates,a LimitedPartnerships (the “Partnership”) as of December 31, 2001 and 2000, and therelated statements of operations, partners’ capital, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and thestandards applicable to financial audits contained in *Government Auditing Standards*issuedby the Comptroller General of the United States, and contained in the U.S.Department of Agriculture, Farmers Home Administration *Audit Program.*Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.I believe that my audits provide a reasonable basis for my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects the financial position of the Partnership as of December 31, 2001 and2000, and the results of its operations and its cash flows for the years thenended in conformity with generally ended in conformity with generally acceptedaccounting principles.

 

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

 

Theaccompanying supplementary information (beginning on page 10) is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated, in all material respects, in relation to thefinancial statements taken as a whole.

 

85

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners

College GreeneRental Associates, L.P.

 

We haveaudited the accompanying balance sheet of College Greene Rental Associates,L.P. (a limited partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ capital (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of College Greene Rental Associates,L.P. as of December 31, 2001 and 2000, and the results of its operations andits cash flows for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.

 

Salmin,Celona, Wehrle & Flaherty, LLP

 

January 31,2002

 

86

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INDEPENDENT AUDITOR’S REPORT

 

To****thePartners

COLORADO CITYSENIORS

 

We have audited theaccompanying balance sheets of COLORADO CITY SENIORS, RHS PROJECT NO.50-068-721125815 as of December 31, 2001 and 2000 and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 21,2002 on our consideration of COLORADO CITY SENIORS’ internal control and areport dated February 21, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 21,2002

 

87

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners

COTTONWOODAPARTMENTS II

 

We haveaudited the accompanying balance sheets of COTTONWOOD APARTMENTS II, RHSPROJECT NO. 22-005-721173468 as of December 31, 2001 and 2000 and the relatedstatements of operations, changes in partners’ equity (deficit) and cash flowsfor the years then ended. These financial statements are the responsibility ofthe partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

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

 

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

 

Metairie,Louisiana

January 31,2002

 

88

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**Independent Auditors’Report**

 

To ThePartners

DevenwoodApartments, A Limited Partnership

 

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

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated January 29,2002 on our consideration of Devenwood Apartments, A Limited Partnership’sinternal control over financial reporting and our consideration of itscompliance with certain provisions of laws, regulations, contracts, and grants.That report is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

89

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Independent Auditors’ Report

 

To thePartners

Franklin Vista III, Ltd.

and USDA RuralDevelopment

 

We haveaudited the accompanying balance sheets of Franklin Vista III, Ltd. (a limitedpartnership) as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ equity and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Franklin Vista III, Ltd. as ofDecember 31, 2001 and 2000, and the results of its operations and the changesin partners’ equity and cash flows for the years then ended in conformity withaccounting principles generally accepted in the United States of America.

 

In accordancewith Government Auditing Standards, we have also issued a report datedJanuary 19, 2001, on our consideration of Franklin Vista III, Ltd.’s internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. That report is anintegral part of an audit performed in accordance with Government AuditingStandards, and should be read in conjunction with this report inunderstanding the results of our audit.

 

Our auditswere conducted for the purpose of forming an opinion on the financialstatements taken as a whole. The supplemental information included in thereport is presented for purposes of additional analysis and is not a requiredpart of the financial statements of Franklin Vista III, Ltd. Such informationhas been subjected to the auditing procedures applied in the audit of thefinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the financial statements taken as a whole.

 

January 19,2002

Farmington,New Mexico

 

90

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INDEPENDENT AUDITOR’S REPORT

 

To thePartners

FriendshipVillage, LLLP

Bethesda,Maryland

 

We haveaudited the accompanying balance sheets of Friendship Village, LLLP as ofDecember 31, 2001 and 2000, and the related statements of income, changes inpartners capital and cash flows for the years then ended. These financialstatements are the responsibility of the Partnerships management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

In accordancewith Government Auditing Standards, we have also issued our reports datedFebruary 27, 2002 on our consideration of Friendship Village, LLLP’s internalcontrol and on its compliance with laws and regulations.

 

91

----

 

To thePartners

HUGHES SPRINGSSENIORS APARTMENTS, LTD,

 

We haveaudited the accompanying balance sheets of HUGHES SPRINGS SENIORS APARTMENTS,LTD., RHS PROJECT NO. 49-034-721156758 as of December 31, 2001 and 2000 and therelated statements of operations, changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 6,2002 on our consideration of HUGHES SPRINGS SENIORS APARTMENTS, LTD.’s internalcontrol and a report dated February 6, 2002 on its compliance with laws and regulationsapplicable to the financial statements.

 

Metairie,Louisiana

February 6,2002

 

92

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IN DEPENDENTAUDITOR’ S REPORT

 

To thePartners

La Gema DelBarrio, A California Limited Partnership

 

I have auditedthe accompanying balance sheets of La Gema Del Barrio, A California LimitedPartnership, as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ equity, and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’smanagement.  My responsibility is toexpress an opinion on these financial statements based on my audits.

 

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

 

In my opinionthe accompanying financial statements referred to above present fairly, in allmaterial respects, the financial position of La Gema Del Barrio, A CaliforniaLimited Partnership as of December 31, 2001 and 2000, and the results of itsoperations, the changes in partners’ equity, and cash flows for the years thenended in conformity with accounting principles generally accepted in the UnitedStates.

 

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

 

SCHONWIT &ASSOCIATES

 

January 25,2002

 

93

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

Montague PlaceLimited Partnership

Lansing,Michigan

 

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

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 18,2002 on our consideration of the Partnership’s internal control over financialreporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

94

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of NavapaiAssociates:

 

I have auditedthe accompanying balance sheets of Navapai Associates, a Limited Partnership(the “Partnership”) as of December 31, 2001 and 2000, and the relatedstatements of operations, partners’ capital, and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and thestandards applicable to financial audits contained in *Govenment Auditing Standards*issuedby the Comptroller General of the United States, and contained in the U.S.Department of Agriculture, Farmers Home Administration *Audit Program.*Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.I believe that my audits provide a reasonable basis for my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of the Partnership as of December 31, 2001 and2000, and the results of its operations and its cash flows for the years thenended in conformity with generally ended in conformity with generally acceptedaccounting principles.

 

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

 

Theaccompanying supplementary information (beginning on page 10) is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in myopinion, is fairly stated, in all material respects, in relation to thefinancial statements taken as a whole.

 

February 4,2002

 

95

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

One NorthridgeLimited Partnership

 

We haveaudited the accompanying balance sheets of One Northridge Limited Partnershipas of December 31, 2001 and 2000, and the related statements of operations,partners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

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

 

Omaha,Nebraska

February 14,2002

 

96

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**INDEPENDENT AUDITORS’ REPORT**

 

To thePartners

Pine RidgeElderly Apartments Limited Partnership

Raleigh, NorthCarolina

 

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

 

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

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Pine Ridge Elderly ApartmentsLimited Partnership as of December 31, 2001 and 2000 and the results of itsoperations and its cash flows for the years then ended in conformity with U.S.generally accepted accounting principles.

 

Our auditswere made for the purpose of forming an opinion on the basic financialstatements taken as a whole. The accompanying supplementary information on Schedule1 is presented for purposes of additional analysis and is not a required partof the basic financial statements of Pine Ridge Elderly Apartments LimitedPartnership. Such information has been subjected to the audit proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

 January 17, 2002

 

97

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IndependentAuditors’ Report

 

To thePartners of

PittsfieldPark Associates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Pittsfield Park Associates (a MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit), and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

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

 

98

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**INDEPENDENT AUDITORS’REPORT**

 

To thePartners

Schroon LakeHousing Redevelopment Company

 

We haveaudited the accompanying balance sheets of Schroon Lake Housing RedevelopmentCompany as of December 31, 2001 and 2000, and the related statements ofoperations, partners’ equity (deficit), and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on the financialstatements based on our audits.

 

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

 

In our opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Schroon Lake Housing Redevelopment Companyas of December 31, 2001 and 2000, and the results of its operations and itscash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

 

In accordancewith Government Auditing Standards, we have also issued reports datedJanuary 30, 2002, on our consideration of Schroon Lake Housing RedevelopmentCompany’s internal control structure and its compliance with laws andregulations.

 

99

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**INDEPENDENT AUDITOR’SREPORT**

 

To thePartners

StandardsvilleVillage Limited Partnership

RHS No.54-48-541523939

North MainStreet

Standardsville,Virginia 22973

 

We haveaudited the accompanying balance sheet of Standardsville Village LimitedPartnership, RHS No. 54-48-541523939 as of December 31, 2001, and the relatedstatements of operations, partners’ capital (deficiency), and cash flows forthe year then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

 

We conductedour audit in accordance with generally accepted auditing standards and GovernmentAuditing Standards issued by the Comptroller General of the United States,and the U.S. Department of Agriculture, Farmers Home Administration AuditProgram. Those standards and the Audit Program require that we plan and performthe audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.

 

In ouropinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Standardsville Village LimitedPartnership, RHS No. 54-48-541523939 as of December 31, 2001, and the resultsof its operations and its cash flows for the year then ended in conformity withgenerally accepted accounting principles.

 

Our audit wasmade for the purpose of forming an opinion on the basic financial statementstaken as a whole. The supplementary information on pages 10 and 11 is presentedfor purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

The financialstatements and supplementary information of Standardsville Village LimitedPartnership for the year ended December 31, 2000 were audited by other auditorswhose report, dated February 2, 2001, expressed an unqualified opinion on thosestatements.

 

100

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IndependentAuditors’ Report

 

To thePartners of

Tyrone HouseAssociates

(A MaineLimited Partnership)

 

We haveaudited the accompanying balance sheets of Tyrone House Associates (a MaineLimited Partnership) as of December 31, 2001 and 2000, and the relatedstatements of operations, changes in partners’ equity (deficit), and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordancewith *GovernmentAuditing Standards,*we have also issued a report dated February 28,2002, on our consideration of the Partnership’s internal controls and a reportdated February 28, 2002, on its compliance with laws and regulations.

 

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

 

101

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**INDEPENDENT AUDITOR’SREPORT**

 

To thepartners

VictoriaLimited Partnership

 

I have auditedthe accompanying balance sheets of Victoria Limited Partnership as of December31, 2001 and 2000 and the related statements of operations, partners’ equity(deficit), and cash flows for the years then ended. These financial statementsare the responsibility of management. My responsibility is to express anopinion on these financial statements based on my audits.

 

I conducted myaudits in accordance with generally accepted auditing standards and GovernmentAuditing Standards issued by the Comptroller General of the United States,and the U.S. Department of Agriculture, Farmers Home Administration AuditProgram. Those standards require that I plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatements presentation. I believe that my audit provides a reasonable basisfor my opinion.

 

In my opinion,the financial statements referred to above present fairly, in all materialrespects, the financial position of Victoria Limited Partnership, as ofDecember 31, 2001 and 2000 and the results of its operations, changes inpartners’ equity (deficit), and its cash flow for the years then ended inconformity with generally accepted accounting principles.

 

In accordancewith government auditing standards, I have also issued reports dated February15, 2002 on my consideration of Victoria Limited Partnership’s internal controland on its compliance with laws and regulations.

 

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

 

Patterson & Company

February 15, 2002

 

102

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To thePartners of

VillageTerrace Limited Partnership

(A NorthCarolina Limited Partnership)

 

We haveaudited the accompanying balance sheets of Village Terrace Limited Partnership(a North Carolina Limited Partnership) as of December 31, 2001 and 2000, andthe related statements of operations, changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

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

 

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

 

103

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Independent Auditor’s Report

 

To thePartners

WoodfieldCommons Limited Partnership

 

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

 

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

 

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

 

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

 

104

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Deer Hill II Limited Partnership

Winston-Salem, North Carolina

 

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

 

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

 

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

 

In accordance with *Government Auditing Standards*wehave also issued a report dated January 22, 2001 on our consideration of DeerHill I1 Limited Partnership’s internal control over financial reporting and onour tests of its compliance with certain provisions of laws, regulations,contracts and grants. That report is an integral part of an audit performed inaccordance with *Government Auditing Standards*and should be read inconjunction with this report in considering the results of our audit.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

King City Elderly Housing Associates

(a California Limited Partnership)

Salinas, California

 

I have audited the accompanying balancesheets of the King City Elderly Housing Associates (a California LimitedPartnership) as of December 31, 2000 and 1999, and the related statements ofoperations, partners’ equity (deficit), and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. My responsibility is to express an opinion on these financialstatements based on my audit.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of the King City Elderly Housing Associates (a California LimitedPartnership) as of December 31, 2000 and 1999, and the results of itsoperations, changes in partner’s equity (deficit) and cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

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

 

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To the Partners

Metropole Apartments Associates, Ltd.

Boston, Massachusetts

 

INDEPENDENT AUDITORS’ REPORT

 

We have audited the accompanying BalanceSheets of Metropole Apartments Associates, Ltd. (a Florida LimitedPartnership), as of December 31, 2000 and 1999, and the related Statements ofIncome, Partners’ Equity and Cash Flows for the years then ended. Thesefinancial statements are the responsibility of the Metropole ApartmentsAssociates, Ltd.’s management. Our responsibility is to express an opinion onthese financial statements based on our audit.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Metropole Apartments Associates, Ltd. as of December 31, 2000 and1999, and the results of its operations, the changes in partners’ equity andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

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

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of’

Oakview Limited (A Limited Partnership)

Corunna, IN

 

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

 

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

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued a report dated January 26, 2001 on ourconsideration of Oakview Limited’s (A Limited Partnership) internal controlover financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. This report is anintegral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in consideringthe results of our audit.

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Westwood Square Limited Partnership

Winston-Salem, North Carolina

 

We have audited the accompanying balancesheets of Westwood Square Limited Partnership as of December 31, 2000 and 1999,and the related statements of income, partners’ deficit, and cash flows for theyears then ended. These financial statements are tile responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 22, 2001 on our consideration ofWestwood Square Limited Partnership’s internal control over financial reportingand on our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

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To the Partners of

Beaver Brook Housing Associates LimitedPartnership

 

Independent Auditors’ Report

 

We have audited the accompanying balance sheets of Beaver Brook HousingAssociates (a Limited Partnership) (Case No. 34-06-020424443) as of December31, 2000 and 1999 and the related statements of income and expense, partners’equity (deficit), and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of Beaver BrookHousing Associates (a Limited Partnership) at December 31, 2000 and 1999 andthe results of its operations, its partners’ equity (deficit) and its cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 24, 2001 on our consideration ofBeaver Brook Housing Associates’ internal control over financial reporting andour tests of its compliance with laws and regulations. That report is anintegral part of an audit performed in accordance with *Government Auditing Standards*andshould be read in conjunction with this report in considering the results ofour audit.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of

Brooklyn Limited (An Indiana LimitedPartnership)

Corunna, IN

 

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

 

We conducted our audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in Government Auditing Standards, issued by theComptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program.” Those standardsrequire that we plan and perform the audits to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Brooklyn Limited (An Indiana Limited Partnership) as of December31, 2000 and 1999, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

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

 

In accordance with Government AuditingStandards, we have also issued a report dated January 26, 2001 on ourconsideration of Brooklyn Limited’s (An Indiana Limited Partnership) internalcontrol over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grants. This report is anintegral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in consideringthe results of our audit.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

**Tothe Partners**

Corinth Housing Redevelopment Company

 

We have audited the accompanying balancesheets of Corinth Housing Redevelopment Company as of December 31, 2000 and1999, and the related statements of operations, partners’ deficit, and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued reports dated January 31, 2001, on ourconsideration of the Corinth Housing Redevelopment Company’s internal controlstructure and its compliance with laws and regulations.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Fawn River Apartment Company LimitedPartnership

d/b/a Fawn River Apartments

 

We have audited the accompanying balancesheet of Fawn River Apartment Company Limited Partnership d/b/a Fawn RiverApartments (a partnership) Project #26-078-382856293 as of December 31,  2000 and 1999 and related statement of operations,partners’ equity and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Fawn River Apartment Company Limited Partnership d/b/a Fawn RiverApartments Project #26-078-382856293 as of December 31, 2000 and 1999, and itsoperations, changes in partners’ equity, and cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 24, 2001, on ourconsideration of Fawn River Apartment Company Limited Partnership d/b/a FawnRiver Apartments Project #26-078-382856293 internal control and a report datedJanuary 24, 2001, on its compliance with laws and regulations applicable to thefinancial statements.

 

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To the Partners

Fountain Green Apartments, Ltd.

Panama City, Florida

 

We have audited the accompanying balancesheets of Fountain Green Apartments, Ltd., USDA, Rural Development Project No:09-46-592948719, as of December 31, 2000 and 1999, and the related statementsof operations, partners’ deficit and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Fountain Green Apartments, Ltd., as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

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

 

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# **INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

**GlennwoodHotel Investors**

**(ACalifornia Limited Partnership)**

Sacramento, California

 

We have audited the accompanying balancesheets of Glennwood Hotel Investors (A California Limited Partnership) as ofDecember 31, 2000 and 1999, and thc related statements of income, partners’equity (deficit), and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Glennwood Hotel Investors (A California Limited Partnership) as ofDecember 31,2000 and 1999, and the results of its operations and its cash flowsfor the years then ended in conformity with generally accepted accountingprinciples.

 

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**INDEPENDENTAUDITORS’REPORT**

 

To the Partners

Greenwich Housing Redevelopment Company

 

We have audited the accompanying balancesheets of Greenwich Housing Redevelopment Company as of December 31, 2000 and1999, and the related statements of operations, partners’ equity (deficit), andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is to expressan opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Greenwich Housing Redevelopment Company as of December31, 2000 and 1999, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued reports dated February 2, 2001, on ourconsideration of Greenwich Housing Redevelopment Company’s internal controlstructure and its compliance with laws and regulations.

 

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**Independent Auditor’s Report**

 

To the Partners

Grifton Housing Associates

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of Grifton Housing Associates (a North Carolina limited partnership) asof December 31, 2000 and 1999, and the related statements of operations,partners’ equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

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

 

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

 

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## **INDEPENDENT AUDITORS’REPORT**

 

To the Partners

Haines City Apartments, Ltd.

 

We have audited the accompanying basicfinancial statements of Haines City Apartments, Ltd., as of and for the yearsended December 31, 2000 and 1999, as listed in the table of contents. Thesebasic financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

In our opinion, the basic financialstatements referred to above present fairly, in all material respects, thefinancial position of Haines City Apartments, Ltd. as of December 31, 2000 and1999 and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 9, 2001 on our consideration ofHaines City Apartments, Ltd.’s internal control over financial reporting andour tests of its compliance with certain provisions of laws, regulations,contracts, and grants. That report is an integral part of an audit performed inaccordance with *Government Auditing Standards*and should be read inconjunction with this report in considering the results of our audit.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theadditional information presented on pages 9 to 15 is presented for the purposesof additional analysis and is not a required part of the basic financialstatements. The information on pages 9 to 14 has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to tile basicfinancial statements taken as a whole. The information on page 15, which is ofa nonaccounting nature, has not been subjected to the auditing proceduresapplied in the audit of the basic financial statements, and we express noopinion on it.

 

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Independent Auditors’ Report

 

To the Partners

Kristin Park Apartments, Ltd.

and USDA Rural Development

 

We have audited the accompanying balancesheets of Kristin Park Apartments, Ltd. (a limited partnership) as of December31, 2000 and 1999, and the related statements of operations, partners’ equityand cash flows for the years then ended. These financial statements are the responsibilityof the Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Kristin Park Apartments, Ltd. as of December 31, 2000 and 1999, andthe results of its operations and the changes in partners’ equity and cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 28, 2001, on ourconsideration of Kristin Park Apartments, Ltd.’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of anaudit performed in accordance with Government Auditing Standards, andshould be read in conjunction with this report in understanding the results ofour audit.

 

Our audits were conducted for the purpose offorming an opinion on the financial statements taken as a whole. Thesupplemental information included in the report is presented for purposes ofadditional analysis and is not a required part of the financial statements ofKristin Park Apartments, Ltd. Such information has been subjected to theauditing procedures applied in the audit of the financial statements and, inour opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

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**INDEPENDENT AUDITOR’ S REPORT**

 

To the Partners

Maywood Associates, Ltd.

(A California Limited Partnership)

Cheyenne, WY

 

I have audited the accompanying balancesheets of Maywood Associates (A California Limited Partnership), USDA RuralDevelopment Case No. 04-052-680184284, as of December 31, 2000 and 1999, andthe related statements of income, partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

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

 

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

 

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

 

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Independent Auditors’ Report

 

To the Partners of

Pedcor Investments - 1989 - VIII, L.P.

(An Indiana Limited Partnership)

 

We have audited the accompanying balancesheet of Pedcor Investments - 1989 - VIII, L.P. (an Indiana LimitedPartnership) as of December 31, 2000, and the related statements of profit andloss and changes in partners’ equity (deficit) and cash flows for the year thenended. These financial statements are the responsibility of management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

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

 

In our opinion, the financial statementsreferred to above present fairly in all material respects the financial positionof Pedcor Investments - 1989 - VIII, L.P. as of December 31, 2000, and theresults of its operations and changes in partners’ equity (deficit) and cashflows for the year then ended in conformity with generally accepted accountingprinciples.

 

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

 

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

 

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Independent Auditors’ Report

 

To the Partners of

Quail Hollow of Warsaw Limited Partnership

(A North Carolina Limited Partnership)

 

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

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Quail Hollow of Warsaw Limited Partnership as of December 31, 2000and 1999, and the results of its operations and its cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

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

 

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

 

This report is intended solely for theinformation of the Partners, management of Quail Hollow of Warsaw LimitedPartnership and for filing with RD and should not be used for any otherpurpose.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Raitt Street Apartments, A California LimitedPartnership

 

I have audited the accompanying balancesheets of Raitt Street Apartments, A California Limited Partnership, as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management, My responsibility is toexpress an opinion on these financial statements based on my audits.

 

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

 

In my opinion the accompanying financialstatements referred to above present fairly, in all material respects, thefinancial position of Raitt Street Apartments, A California Limited Partnershipas of December 31, 2000 and 1999, and the results of its operations, thechanges in partners’ equity, and cash flows for the years then ended inconformity with generally accepted accounting principles of the United States.

 

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

 

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##### **INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

South Paris Heights Associates

(A Limited Partnership)

 

We have audited the accompanying balancesheets of South Paris Heights Associates (A Limited Partnership) as of December31, 2000 and 1999*,*and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of South Paris Heights Associates (A Limited Partnership) at December31, 2000 and 1999, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our reports dated February 6, 2001 on our consideration of theinternal control over financial reporting of South Paris Heights Associates (ALimited Partnership) and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. Those reports are an integral part ofan audit performed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying additional information is presented solely for thc use of the U.S.Department of Agriculture - Rural Development and is not a required part of thebasic financial statements. Part I of the Multiple Family Housing BorrowerBalance Sheet, Form RD 1930-8, including the related supplement, and Column 2(Actual), Parts I, II and III of the Multiple Family Housing Project Budget,Form RD 1930-7, have been subjected to the auditing procedures applied in ouraudits of the basic financial statements and, in our opinion, are fairly statedin all material respects in relation to the basic financial statements taken asa whole. We have not audited Parts IV, V and VI, and Columns 1 and 3 (CurrentBudget and Proposed Budget) of Parts I, II and III of Form RD 1930-7, and,accordingly, express no opinion thereon.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Springfield Housing Associates, L.P.

Springfield, Illinois

 

We have audited thc accompanying balancesheet of Springfield Housing Associates, L.P., (a limited partnership), as ofDecember 31, 2000 and the related statements of operations, partners’ capital,and cash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Springfield Housing Associates, L.P., (a limited partnership) as ofDecember 31, 2000, and the results of its operations and its cash flows for theyear then ended in conformity with generally accepted accounting principles.

 

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**Independent Auditor’s Report**

 

To the Partners

Tappahannock Greens Limited Partnership

 

I have audited the accompanying balance sheetsof Tappahannock Greens Limited Partnership as of December 31,2000 and 1999, andthe related statements of operations, partners’ deficit and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Tappahannock Greens Limited Partnership as of December 3 I, 2000and 1999, and the results of its operations, changes in partners’ deficit, andits cash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with *Government Auditing Standards,*Ihave also issued my report dated March 19,2001 on my consideration ofTappahannock Greens Limited Partnership’s internal control over financialreporting and on my tests of its compliance with certain provisions of laws andregulations.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Village Oaks Apartments II, Ltd.

Panama City, Florida

 

We have audited the accompanying balancesheets of Village Oaks Apartments, II, Ltd., USDA, Rural Development ProjectNo: 09-061-0592884971, as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ deficit and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Village Oaks Apartments II, Ltd., as of December 31, 2000 and 1999,and the results of its operations and its cash flows for the years then endedin conformity with generally accepted accounting principles.

 

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

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Wilmington Housing Redevelopment Company

 

We have audited the accompanying balancesheets of Wilmington Housing Redevelopment Company as of December 31, 2000 and1999, and the related statements of operations, partners’ deficit, and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on the financial statements based on our audits.

 

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

 

In our opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Wilmington Housing Redevelopment Company as of December31, 2000 and 1999, and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued reports dated January 30, 2001, on ourconsideration of Wilmington Housing Redevelopment Company’s internal controlstructure and its compliance with laws and regulations.

 

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Independent Auditor’s Report

 

To the Partners

Housing Investors, Athens II, LTD.

Decatur, Alabama

 

We have audited the accompanying balancesheet of Housing Investors Athens II, Ltd. (a partnership) as of December 31,2000 and 1999, and the related statements of operations, partners’ capital, andcash flows for the year then ended and the accompanying supplementaryinformation which is presented only for supplementary analysis purposes. Thesefinancial statements are the responsibility of the partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Housing Investors Athens II, Ltd., as of December 31, 2000 and1999, and the results of its operations and its cash flows for the years thenended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 12, 2001 on our consideration of theHousing Investors Athens II, Ltd.’s internal control and tests of itscompliance with certain provisions of laws, regulations, contracts and grants.

 

As discussed in Note 11 to the financialstatements the partnership changed its method of computing depreciation forfinancial statement purposes in order to conform to generally acceptedaccounting principles.

 

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Maidu Properties

(A California Limited Partnership)

Rocklin, California

 

I have audited the accompanying balancesheets of Maidu Properties (A California Limited Partnership), as of December31, 2000 and 1999, and the related statements of income, partners’ equity, andcash flows for the years then ended. These financial statements are the responsibilityof the Partnership’s management. My responsibility is to express an opinion onthese financial statements based on my audits.

 

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

 

In my opinion, the financialstatements referred to above present fairly, in all material respects, thefinancial position of Maidu Properties (A California Limited Partnership) as ofDecember 31, 2000 and 1999, and the results of its operations and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

My audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplementary information for the years ended December 31, 2000 and 1999, onpages 12 and 13, is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the audit procedures applied in the audits of the basic financialstatements and, in my opinion, is fairly stated An all material respects inrelation to the basic financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners of

Pedcor Investments - 1989 - X, L.P.

(An Indiana Limited Partnership)

 

We have audited the accompanying balancesheet of Pedcor Investments - 1989 - X, L.P. (an Indiana Limited Partnership)as of December 31, 2000, and the related statements of profit and loss andchanges in partners’ equity (deficit) and cash flows for the year then ended.These financial statements are the responsibility of management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

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

 

In our opinion, the financial statementsreferred to above present fairly in all material respects the financialposition of Pedcor Investments - 1989 - X, L.P. as of December 31, 2000, andthe results of its operations and changes in partners’ equity (deficit) andcash flows for the year then ended in conformity with generally accepted accountingprinciples.

 

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

 

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

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To****the Partners

Academy Hill Limited Partnership

Winston-Salem, North Carolina

 

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

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 22, 2001 on our consideration ofAcademy Hill Limited Partnership’s internal control over financial reportingand on our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with *Government Auditing Standard*and should beread in conjunction with that report in considering the results of our audit.

 

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Independent Auditors’ Repod

 

To the Partners

Buckeye Senior, Ltd.

and USDA Rural Development

 

We have audited the accompanying balancesheets of Buckeye Senior, Ltd. (a limited partnership) as of December 31, 2000and 1999, and the related statements of operations, partners’ equity (deficit)and cash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is to expressan opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Buckeye Senior, Ltd. as of December 31, 2000 and 1999, and theresults of its operations and the changes in partners’ equity (deficit) andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 15, 2001, on ourconsideration of Buckeye Senior, Ltd.’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with Government Auditing Standards, and shouldbe read in conjunction with this report in understanding the results of ouraudit.

 

Our audits were conducted for the purpose offorming an opinion on the financial statements taken as a whole. Thesupplemental information included in the report is presented for purposes ofadditional analysis and is not a required part of the financial statements ofBuckeye Senior, Ltd. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in our opinion,is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

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Independent Auditor’s Report

 

To the Partners

Coronado Housing Limited Partnership

 

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

 

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

 

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

 

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

 

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Independent Auditors’ Repod

 

To the Partners

Hilltop Apartments Limited Partnership

and USDA Rural Development

 

We have audited the accompanying balancesheets of Hilltop Apartments Limited Partnership as of December 31, 2000, and1999, and the related statements of operations, partners’ deficit and cashflows for the years then ended. These financial statements are the responsibilityof the Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued a report dated January 18, 2001, on ourconsideration of Hilltop Apartments Limited Partnership’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of anaudit performed in accordance with Government Auditing Standards, andshould be read in conjunction with this report in understanding the results ofour audit.

 

Our audit was conducted for the purpose offorming an opinion on the financial statements taken as a whole. Thesupplemental information included in the report is presented for purposes ofadditional analysis and is not a required part of the financial statements ofHilltop Apartments Limited Partnership. Such information has been subjected tothe auditing procedures applied in the audit of the financial statements and,in our opinion, is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

 

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Partners

Ivan Woods Limited Partnership

Okemos, Michigan

 

Independent Auditor’s Report

 

We have audited the accompanying balancesheets of Ivan Woods Limited Partnership as of December 31, 2000 and 1999, andthe related statements of revenue, expenses and partners’ capital and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

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

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theschedules of renting, administrative, operating, maintenance, taxes andinsurance expenses on page 9 are presented for the purpose of additionalanalysis and are not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basicfinancial statements, and in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

The Partners

Licking Associates II, L.P.

Licking, Missouri

 

We have audited the accompanying balancesheets of Licking Associates II, L.P. (a limited partnership) as of December31, 2000 and 1999, and the related statements of operations, partners’ capitaland cash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financial positionof Licking Associates II, L.P. as of December 31, 2000 and 1999, and theresults of its operations, changes in partners’ capital and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

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

 

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To the Partners

London Arms/Lyn Mar Limited Partnership

Boston, Massachusetts

 

INDEPENDENT AUDITORS’ REPORT

 

We have audited the accompanying BalanceSheets of London Arms/Lyn Mar, Ltd. (a Florida Limited Partnership), as ofDecember 31, 2000 and 1999 and the related Statements of Income, Partners’Equity and Cash Flows for the years then ended. These financial statements arethe responsibility of the management of London Arms/Lyn Mar LimitedPartnership. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of London Arms/Lyn Mar Limited Partnership as of December 31, 2000 and1999, and the results of its operations, the changes in partners’ equity andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

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

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

South Fork Heights Limited Partnership

 

We have audited the accompanying balancesheets of South Fork Heights Limited Partnership (a Texas limited partnership),USDA Project No.: 05-53-742476220, as of December 31, 2000 and 1999, and therelated statements of operations, partners’ equity (deficit) and cash flows forthe years then ended. These financial statements are the responsibility of thepartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

In accordance with Government Auditing Standards,we have also issued our report dated February 27, 2001, on our consideration ofSouth Fork Heights Limited Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants.

 

Our audits were performed for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information on pages 13 - 24 is presented for purposes ofadditional analysis required by the United States Department of Agriculture andis not a required part of the basic financial statements. Such information hasbeen subjected to thc auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated, in all materialrespects, in relation to the basic financial statements taken as a whole.

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Wildridge Apartments, Ltd.

Panama City, Florida

 

We have audited the accompanying balancesheets of Wildridge Apartments, Ltd., USDA, Rural Development Project No:11-51-592863964, as of December 31, 2000 and 1999, and the related statementsof operations, partners’ deficit and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

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

 

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Brandywood Limited Partnership Madison,Wisconsin

 

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

 

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

 

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

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Thesupplemental information provided, as identified in the table of contents, ispresented for purposes of additional analysis and is not a required part of thebasic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

 

141

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners of

Briarwick Apartments, Ltd.

 

We have audited the accompanying balancesheets of Briarwick Apartments, Ltd. (a Kentucky limited partnership) as ofDecember 31, 2000, 1999, and 1998, and the related statements of results ofoperations, changes in partners’ capital and cash flows for the years thenended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audit.

 

We conducted our audits in accordance withgenerally accepted auditing standards, *Government Auditing Standards,*issued bythe Comptroller General of the United States, and the provisions of the UnitedStates Department of Agriculture, Rural Economic and Community Developmentaudit program. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Briarwick Apartments, Ltd. as of December 31, 2000, 1999, and 1998,and the results of its operations, changes in partners’ capital and its cashflows for the years then ended in conformity with generally accepted accountingprinciples.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 19, 2001, on our consideration ofBriarwick Apartments, Ltd.’s internal control over financial reporting andtests of its compliance with certain provisions of laws and regulations.

 

142

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### Independent Auditors’ Report

 

To the Partners of

Bucksport Park Associates

(A Maine Limited Partnership)

 

We have audited the accompanying balancesheets of Bucksport Park Associates (a Maine Limited Partnership) as of December31, 2000 and 1999, and the related statements of operations, changes inpartners, equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

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

 

143

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### Independent Auditors’ Report

 

To the Partners of

Clymer House Associates

(A Pennsylvania Limited Partnership)

 

We have audited the accompanying balancesheets of Clymer House Associates (a Pennsylvania Limited Partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, changesin partners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

The accompanying supplementary information is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements.  Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in our opinion, is fairly stated in all materialrespects in relation to the financial statements taken as a whole.

 

144

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Independent Auditors’ Report

 

To the Partners of

Cornish Park Associates

(A Maine Limited Partnership)

 

We have audited the accompanying balancesheets of Cornish Park Associates (a Maine Limited Partnership) as of December31, 2000 and 1999, and the related statements of operations, changes inpartners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In our opinion, the financial statements referredto above present fairly, in all material respects, the financial position ofCornish Park Associates as of December 31, 2000 and 1999, and the results ofits operations and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

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

 

145

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To the Partners

Franklin II Limited Partnership

 

I have audited the accompanying balancesheets of Franklin II Limited Partnership, RHS Project No.: 55-009-541462949,as of December 31, 2000 and 1999 and the related statements of operations,partners’ deficit and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Franklin II Limited Partnership, RHS Project No.: 55-009-541462949,as of December 31, 2000, and the results of its operations, the changes inpartners’ deficit and cash flows for the year then ended, in conformity withgenerally accepted accounting principles.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 16 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with Government Auditing Standards, I have alsoissued reports dated January 24, 2001 on my consideration of Franklin IILimited Partnership’s internal control and its compliance with laws andregulations applicable to the financial statements.

 

146

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Hunters Park Limited Partnership

 

We have audited the accompanying balancesheets of Hunters Park Limited Partnership as of December 31, 2000 and 1999,and the related statements of operations, partners’ equity (deficit), and cashflows for the years then ended. These financial statements are theresponsibility of Hunters Park Limited Partnership management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued our report dated January 24, 2001 on ourconsideration of Hunters Park Limited Partnership’s internal control overfinancial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of anaudit performed in accordance with Government Auditing Standards andshould be read in conjunction with this report in considering the results ofour audit.

 

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

 

147

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

Lakeridge Apartments of Eufaula, Ltd.

Panama City, Florida

 

We have audited the accompanying balancesheets of Lakeridge Apartments of Eufaula, Ltd., USDA, Rural DevelopmentProject No: 01-0030592933800, as of December 31, 2000 and 1999, and the relatedstatements of operations, partners’ deficit and cash flows for the years thenended. These financial statements are the responsibility of the partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

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

 

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

 

148

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Independent Auditors’ Report

 

To the Partners

Los CaballosII, Ltd.

and USDA Rural Development

 

We have audited the accompanying balancesheets of Los Caballos II, Ltd. (a limited partnership) as of December 31, 2000and 1999, and the related statements of operations, partners’ equity and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance withgenerally accepted auditing standards and

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

 

In our opinion, the financial statements referredto above present fairly, in all material respects, the financial position ofLos Caballos II, Ltd. as of December 31, 2000 and 1999, and the results of itsoperations and the changes in partners’ equity and cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued a report dated January 24, 2001, on ourconsideration of Los Caballos II, Ltd.’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with Government Auditing Standards, and shouldbe read in conjunction with this report in understanding the results of ouraudits.

 

Our audits were conducted for the purpose offorming an opinion on the financial statements taken as a whole. Thesupplemental information included in the report is presented for purposes ofadditional analysis and is not a required part of the financial statements ofLos Caballos II, Ltd. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in ouropinion, is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

149

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### Independent Auditors’ Report

 

To the Partners of

Nanty Glo House Associates

(A Pennsylvania Limited Partnership)

 

We have audited the accompanying balancesheets of Nanty Glo House Associates (a Pennsylvania Limited Partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, changesin partners, equity, and cash flows for the years then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

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

 

150

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**INDEPENDENT AUDITOR’ S REPORT**

 

To the Partners

Nye County Associates

(A California Limited Partnership)

Cheyenne, WY

 

I have audited the accompanying balancesheets of Nye County Associates (A California Limited Partnership), USDA RuralDevelopment Case No. 33-019-680192750, as of December 31, 2000 and 1999, andthe related statements of income, partners’ equity, and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. My responsibility is to express an opinion on thesefinancial statements based on my audits.

 

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

 

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

 

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

 

151

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INDEPENDENT AUDITOR’ S REPORT

 

The Partners

Scott City Associates III, L.P.

Scott City, Missouri

 

We have audited the accompanying balancesheets of Scott City Associates III, L.P. (a limited partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’capital and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects,thefinancial position of Scott City Associates III, L.P. as of December 31, 2000and 1999, and the results of its operations, changes in partners’ capital andcash flows for the years then ended in conformity with generally acceptedaccounting principles.

 

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

 

152

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Villas of Lakeridge, Ltd.

Panama City, Florida

 

We have audited the accompanying balancesheets of Villas of Lakeridge, Ltd., USDA, Rural Development Project No:01-0030592930819, as of December 31, 2000 and 1 999, and the related statementsof operations, partners’ deficit and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

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

 

153

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Waynesboro Associates, Limited

 

We have audited the accompanying balancesheets of Waynesboro Associates, Limited (a Tennessee limited partnership)d/b/a Waynesboro Village Apartments, RHS Project No.: 48-091-621385326, as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’equity, and cash flows for the years then ended. These financial statements arethe responsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financial, statementsreferred to above present fairly, in all material respects, the financialposition of Waynesboro Associates, Limited (a Tennessee limited partnership)d/b/a Waynesboro Village Apartments, RHS Project No.: 48-091-621385326, as ofDecember 31, 2000 and 1999, and the results of its operations, the changes inpartners’ equity and its cash flows for the years then ended in conformity withgenerally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated February 5, 2000 on our consideration ofWaynesboro Associates, Limited’s internal control over financial reporting andour tests of its compliance with certain provisions of laws, regulations,contracts, and grants.

 

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

 

154

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Windsor II Limited Partnership

 

I have audited the accompanying balancesheets of Windsor II Limited Partnership, RHS Project No.: 54-057-541440877, asof December 31, 2000 and 1999, and the related statements of operations,partners’ deficit and cash flows for the years then ended. These financialstatements are the responsibility of the partnership’s management. Myresponsibility is to express an opinion on these financial statements based onmy audit.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Windsor II Limited Partnership, RHS Project No.: 54-057-541440877,as of December 31, 2000 and 1999, and the results of its operations, thechanges in partners’ deficit and cash flows for the years then ended, inconformity with generally accepted accounting principles.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 17 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with Government AuditingStandards, I have also issued reports dated January 24, 2001 on myconsideration of Windsor II Limited Partnership’s internal control and itscompliance with laws and regulations applicable to the financial statements.

 

155

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

Amherst Limited Partnership

 

I have audited the accompanying balancesheets of Amherst Limited Partnership, RHS Project No.: 54-007-541486870, as ofDecember 31, 2000 and 1999 and the related statements of operations, partners’deficit and cash flows for the years then ended. These financial statements arethe responsibility of the partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audit.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, thc financialposition of Amherst Limited Partnership, RHS Project No.: 54-007-541486870, asof December 31, 2000 and 1999, and the results of its operations, the changesin partners’ deficit and cash flows For the years then ended, in conformitywith generally accepted accounting principles.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation on page 16 is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

 

In accordance with Government AuditingStandards, I have also issued reports dated January 24, 2001 on myconsideration of Amherst Limited Partnership’s internal control and itscompliance with laws and regulations applicable to the financial statements.

 

156

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INDEPENDENT AUDITOR’ S REPORT

 

To the Partners

Beckwood Manor Six Limited Partnership

 

We have audited the accompanying balancesheets of Beckwood Manor Six Limited Partnership, RD Project No.03-048-0710677265 (the Partnership), as of December 31, 2000 and 1999, and therelated statements of profit (loss), changes in partners’ equity (deficit) andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management, our responsibility is toexpress an opinion on these financial statements based on our audits.

 

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

 

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

 

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

 

157

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Independent Auditors’ Report

 

To the Partners of

Bethel Park Associates

(A Maine Limited Partnership)

 

We have audited the accompanying balancesheets of Bethel Park Associates (a Maine Limited Partnership) as of December31, 2000 and 1999, and the related statements of operations, changes inpartners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

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

 

158

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Independent Auditors’ Report

 

To the Partners

Brantwood Lane LimitedPartnership

Charlotte, North Carolina

 

We have audited the accompanying balancesheets of Brantwood Lane Limited Partnership (a Georgia limited partnership) asof December 31, 2000 and 1999, and the related statements of operations,partners’ deficit, and cash flows for the years then ended.  These financial statements are theresponsibility of the Partnership’s management.  Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

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

 

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

 

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

 

159

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**IndependentAuditors’ Report**

 

To****the Partners

Bridge Coalition Limited Partnership

Now York, New York

 

We haveaudited the accompanying balance sheet of Bridge Coalition Limited Partnershipas of December 31, 2000 and the related statements of operations, changes inpartners’ equity and cash flows for the year then ended. These financialstatements are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

 

We conducted our audit in accordance with generally accepted auditingstandards. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement.  An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.

 

160

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Carriage Run Limited Partnership

 

I have audited the accompanying balancesheets of Carriage Run Limited Partnership, as of December 31, 2000 and 1999and the related statements of operations, partners’ equity (deficit), and cashflows for the years then ended. These financial statements are theresponsibility of management. My responsibility is to express an opinion onthese financial statements based on my audit.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, thc financialposition of Carriage Run Limited Partnership, as of December 31, 2000 and 1999and the results of its operations, changes in partners’ equity (deficit), andits cash flow for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with government auditingstandards, I have also issued report dated March 6, 2001 on my consideration ofCarriage Run Limited Partnership’s internal control and on its compliance withlaws and regulations.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audits of the basicfinancial statements and, in my opinion, is fairly stated in all materialrespects in relation to the financial statements taken as a whole.

 

161

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Cedarwood Apartments Limited Partnership

Raleigh, North Carolina

 

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

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated January 19, 2001 on our consideration ofCedarwood Apartments Limited Partnership’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. This report is an integral part of an auditperformed in accordance with *Government Auditing Standards*and shouldbe read in conjunction with this report in considering the results of ouraudit.

 

Our audits were conducted for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying supplementary information on Schedules 1 and 2 is presented forpurposes of additional analysis and is not a required part of the basicfinancial statements of Cedarwood Apartments Limited Partnership. Suchinformation has been subjected to the audit procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

162

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of Chaparral Associates:

 

I have audited the accompanying balancesheets of Chaparral Associates, a Limited Partnership (the “Partnership”) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’capital, and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and contained in the U.S.Department of Agriculture, Farmers Home Administration *Audit Program.*Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. Awl audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. I believe that my audits provide a reasonable basis formy opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of the Partnership as of December 31, 2000 and 1999, and the resultsof its operations and its cash flows for the years then ended in conformitywith generally ended in conformity with generally accepted accountingprinciples.

 

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

 

The accompanying supplementary information(beginning on page 10) is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated, in all materialrespects, in relation to the financial statements taken as a whole.

 

163

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INDEPENDENT AUDITOR’S REPORT

 

To The Partners

College Greene Rental Associates, L.P.

 

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

 

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

 

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

 

164

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INDEPENDENT AUDITOR’S REPORT

 

To****the Partners

COLORADO CITY SENIORS

 

We have audited the accompanying balancesheets of COLORADO CITY SENIORS, RHS PROJECT NO. 50-068-721125815 as ofDecember 31, 2000 and 1999 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

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

 

In accordance with Government Auditing Standards, we have alsoissued a report dated February 9, 2001 on our consideration of COLORADO CITYSENIORS’s internal control and a report dated February 9, 2001 on itscompliance with laws and regulations applicable to the financial statements.

 

165

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

COTTONWOOD APARTMENTS II

 

We have audited the accompanying balancesheets of COTTONWOOD APARTMENTS II, RHS PROJECT NO. 22-005-721173468 as ofDecember 31, 2000 and 1999 and the related statements of operations, changes inpartners’ equity (deficit) and cash flows for the years then ended. Thesefinancial statements are the responsibility of the partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of COTTONWOOD APARTMENTS II as of December31, 2000 and 1999 and theresults of its operations, changes in partners’ equity and cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation presented on pages 16 through 24, is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

In accordance with Government AuditingStandards, we have also issued a report dated February 1, 2001 on ourconsideration of COTTONWOOD APARTMENTS II’s internal control and a report datedFebruary 1, 2001 on its compliance with laws and regulations applicable to thefinancial statements.

 

166

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Independent Auditors’ Report

 

To the Partners

FranklinVista III, Ltd.

and USDA Rural Development

 

We have audited the accompanying balancesheets of Franklin Vista III, Ltd. (a limited partnership) as of December 31,2000 and 1999, and the related statements of operations, partners’ equity andcash flows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is to expressan opinion on these financial statements based on our audits.

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued a report dated January 19, 2001, on ourconsideration of Franklin Vista III, Ltd.’s internal control over financialreporting and our tests of its compliance with certain provisions of laws,regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with Government Auditing Standards, and shouldbe read in conjunction with this report in understanding the results of ouraudit.

 

Our audits were conducted for the purpose offorming an opinion on the financial statements taken as a whole. Thesupplemental information included in the report is presented for purposes ofadditional analysis and is not a required part of the financial statements ofFranklin Vista III, Ltd. Such information has been subjected to the auditingprocedures applied in the audit of the financial statements and, in our opinion,is fairly stated in all material respects in relation to the financialstatements taken as a whole.

 

167

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners,

Friendship Village, LLLP

Bethesda, Maryland

 

We have audited the accompanying balancesheets of Friendship Village, LLLP as of December 31, 2000 and 1999*,*andthe related statements of income, changes in partners’ capital and cash flowsfor the years then ended. These financial statements are the responsibility ofthe Partnership’s management. Our responsibility is to express an opinion onthese financial statements based on our audits.

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued our reports dated February 23, 2001 on ourconsideration of Friendship Village, LLLP’s internal control and on itscompliance with laws and regulations.

 

168

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

HUGHES SPRINGS SENIORS APRTMENTS, LTD.

 

We have audited the accompanying balancesheets of HUGHES SPRINGS SENIORS APARTMENTS, LTD., RHS PROJECT NO.49-034-721156758 as of December 31, 2000 and 1999 and the realted statements ofoperations changes in partners’ equity (deficit) and cash flows for the yearsthen ended.  These financial statementsare the responsibility of the partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

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

 

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

 

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

 

In accordance with Government AuditingStandards, we have also issued a report dated February 2, 2061 on ourconsideration of HUGHES SPRINGS SENIORS APARTMENTS, LTD.’s internal control anda report dated February 2, 2001 on its compliance with laws and regulationsapplicable to the financial statements.

 

169

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners

La Gema Del Barrio, A California LimitedPartnership

 

I have audited the accompanying balancesheets of La Gema Del Barrio, A California Limited Partnership, as of December31, 2000 and 1999, and the related statements of operations, partners’ equity,and cash flows for the years then ended. These financial statements are theresponsibility of the partnership’s management. My responsibility is to expressan opinion on these financial statements based on my audits.

 

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

 

In my opinion the accompanying financialstatements referred to above present fairly, in all material respects, thefinancial position of La Gema Del Barrio, A California Limited Partnership asof December 31, 2000 and 1999, and the results of its operations, the changesin partners’ equity, and cash flows for the years then ended in conformity withgenerally accepted accounting principles of the United States.

 

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

 

170

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Independent Auditor’s Report

 

To the Partners

Lakeview Meadows Limited Dividend

Housing Association Limited Partnership

 

We have audited the accompanying balancesheet of Lakeview Meadows Limited Dividend Housing Association LimitedPartnership (a Michigan limited partnership) MSHDA Development No. 874, as ofDecember 31, 2000 and 1999, and the related statements of profit and loss,partners’ equity, and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Lakeview Meadows Limited Dividend Housing Association LimitedPartnership, MSHDA Development No. 874, as of December 31, 2000 and 1999, andits profit and loss, partners’ equity, and its cash flows for the years thenended, in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued our report dated February 9, 2001 on our consideration ofLakeview Meadows Limited Dividend Housing Association Limited Partnership’sinternal control over financial reporting and on our tests of its compliancewith certain provisions of laws, regulations, contracts, and grants. The reportis an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report in consideringthe results of our audits.

 

171

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**Independent Auditors’ Report**

 

To the Partners of

Lonaconing Associates Limited Partnership

DBA Lana Lu Apartments

Gaithersburg, Maryland

 

We have audited the accompanying balancesheet of Lonaconing Associates Limited Partnership (a limited partnership), DBALana Lu Apartments, Case No. 24-001-521702607, as of December 31, 2000, and therelated income statement, changes in partners’ equity (deficit) and cash flowsfor the year then ended. These financial statements are the responsibility ofthe project’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit. The financial statements of LonaconingAssociates Limited Partnership as of December 31, 1999, were audited by otherauditors whose report dated March 5, 2000, expressed an unqualified opinion onthose statements.

 

We conducted our audit in accordance withgenerally accepted auditing standards, *Government Auditing Standards,*issued bythc Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program” issued in December1989. Those standards require that we plan and perform our audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, theevidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Lonaconing Associates Limited Partnership, DBA Lana Lu Apartments,Case No. 24-001-521702607, at December 31, 2000, and the results of itsoperations, changes in partners’ equity (deficit) and cash flows for the yearthen ended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 10, 2001, on our consideration ofLonaconing Associates Limited Partnership’s internal control and a report datedJanuary 10, 2001, on its compliance with specific requirements applicable toRural Housing Service Programs.

 

172

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Montague Place Limited Partnership

Lansing, Michigan

 

We have audited the accompanying balancesheets of Montague Place Limited Partnership as of December 31, 2000 and 1999,and the related statements of net loss, partners’ equity and cash flows for theyears then ended. These financial statements are the responsibility of thePartnership’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001 on our consideration of thePartnership’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants.That report is an integral part of an audit performed in accordance with *GovernmentAuditing Standards*and should be read in conjunction with thisreport in considering the results of our audit.

 

173

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INDEPENDENT AUDITOR’S REPORT

 

To the Partners of Navapai Associates:

 

I have audited the accompanying balancesheets of Navapai Associates, a Limited Partnership (the “Partnership”) as ofDecember 31, 2000 and 1999, and the related statements of operations, partners’capital, and cash flows for the years then ended. These financial statementsare the responsibility of the Partnership’s management. My responsibility is toexpress an opinion on these financial statements based on my audits.

 

I conducted my audits in accordance withgenerally accepted auditing standards and the standards applicable to financialaudits contained in *Government Auditing Standards*issued bythe Comptroller General of the United States, and contained in the U.S.Department of Agriculture, Farmers Home Administration *Audit Program.*Thosestandards require that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.I believe that my audits provide a reasonable basis for my opinion.

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of the Partnership as of December 31, 2000 and 1999, and the resultsof its operations and its cash flows for the years then ended in conformitywith generally ended in conformity with generally accepted accountingprinciples.

 

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

 

The accompanying supplementary information(beginning on page 10) is presented for purposes of additional analysis and isnot a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in my opinion, is fairly stated, in all materialrespects, in relation to the financial statements taken as a whole.

 

174

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**INDEPENDENTAUDITORS’ REPORT**

 

To the Partners

One Northridge Limited Partnership

 

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

 

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

 

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

 

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

 

175

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INDEPENDENT AUDITORS’ REPORT

 

To the Partners

Pine Ridge Elderly Apartments LimitedPartnership

Raleigh, North Carolina

 

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

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Pine Ridge Elderly Apartments Limited Partnership as of December31, 2000 and 1999 and the results of its operations and its cash flows for theyears then ended in conformity with generally accepted accounting principles.

 

Our audits were made for the purpose offorming an opinion on the basic financial statements taken as a whole. Theaccompanying supplementary information on Schedule I is presented for purposesof additional analysis and is not a required part of the basic financialstatements of Pine Ridge Elderly Apartments Limited Partnership. Suchinformation has been subjected to the audit procedures applied in the audits ofthe basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as awhole.

 

176

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Independent Auditors’ Report

 

To the Partners of

Pittsfield Park Associates

(A Maine Limited Partnership)

 

We have audited the accompanying balancesheets of Pittsfield Park Associates (a Maine Limited Partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, changesin partners’ equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

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

 

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**INDEPENDENT AUDITORS’ REPORT**

 

To the Partners

Schroon Lake Housing Redevelopment Company

 

We have audited the accompanying balancesheets of Schroon Lake Housing Redevelopment Company as of December 31, 2000and 1999, and the related statements of operations, partners’ equity, and cashflows for the years then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on the financial statements based on our audits.

 

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

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Schroon Lake Housing Redevelopment Company as of December 31, 2000and 1999, and the results of its operations and its cash flows for the yearsthen ended in conformity with generally accepted accounting principles.

 

In accordance with Government AuditingStandards, we have also issued reports dated January 30, 2001, on ourconsideration of Schroon Lake Housing Redevelopment Company’s internal controlstructure and its compliance with laws and regulations.

 

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**INDEPENDENT AUDITOR’S REPORT**

 

To the Partners

Stanardsville Village Limited Partnership

RHS No. 54-48-541523939

North Main Street

Stanardsville, Virginia 22973

 

We have audited the accompanying balancesheet of Stanardsville Village Limited Partnership, RHS No. 54-48-541523939 asof December 31, 2000, and the related statements of operations, partners’capital (deficiency), and cash flows for the year then ended. These financial statementsare the responsibility of the Partnership’s management. Our responsibility isto express an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance withgenerally accepted auditing standards and Government Auditing Standards issuedby the Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration Audit Program. Those standards and theAudit Program require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Stanardsville Village Limited Partnership, RHS No. 54-48-541523939as of December 31, 2000, and the results of its operations and its cash flowsfor the year then ended in conformity with generally accepted accountingprinciples.

 

Our audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. Thesupplementary information on pages 10 and 11 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

The financial statements and supplementaryinformation of Stanardsville Village Limited Partnership for the year endedDecember 31, 1999 were audited by other auditors whose report, dated February4, 2000, expressed an unqualified opinion on those statements.

 

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**Independent Auditors’ Report**

 

To the Partners of

Titusville Apartments Limited Partnership

DBA Titusville Apartments

Gaithersburg, Maryland

 

We have audited the accompanying balancesheet of Titusville Apartments Limited Partnership (a limited partnership), DBATitusville Apartments, Case No. 44-020-521618663, as of December 31, 2000, andthe related income statement, changes in partners’ equity (deficit) and cashflows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit. Thefinancial statements of Titusville Apartments Limited Partnership as ofDecember 31, 1999, were audited by other auditors whose report dated March 1,2000, expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance withgenerally accepted auditing standards, *Government Auditing Standards,*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program” issued in December1989. Those standards require that we plan and perform our audit to obtainreasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, theevidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Titusville Apartments Limited Partnership, DBA TitusvilleApartments, Case No. 44-020-521618663, at December 31, 2000, and the results ofits operations, changes in partners’ equity (deficit) and cash flows for theyear then ended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 10, 2001, on our consideration ofTitusville Apartments Limited Partnership’s internal control and a report datedJanuary 10, 2001, on its compliance with specific requirements applicable toRural Housing Service Programs.

 

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Independent Auditors’ Report

 

To the Partners of

Tyrone House Associates

(A Pennsylvania Limited Partnership)

 

We have audited the accompanying balancesheets of Tyrone House Associates (a Pennsylvania Limited Partnership) as ofDecember 31, 2000 and 1999, and the related statements of operations, changesin partners, equity (deficit), and cash flows for the years then ended. Thesefinancial statements are the responsibility of the Partnership’s management.Our responsibility is to express an opinion on these financial statements basedon our audits.

 

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

 

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

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated March 9, 2001, on our consideration of thePartnership’s internal controls and a report dated March 9, 2001, on itscompliance with laws and regulations.

 

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

 

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**INDEPENDENTAUDITOR’S REPORT**

 

To the Partners

Victoria Limited Partnership

 

I have audited the accompanying balancesheets of Victoria Limited Partnership as of December 31, 2000 and 1999 and therelated statements of operations, partners’ equity (deficit), and cash flows forthe years then ended. These financial statements are the responsibility ofmanagement. My responsibility is to express an opinion on these financialstatements based on my audits.

 

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

 

In my opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Victoria Limited Partnership, as of December 31, 2000 and 1999 andthc results of its operations, changes in partners’ equity (deficit), and itscash flow for the years then ended in conformity with generally acceptedaccounting principles.

 

In accordance with government auditingstandards, I have also issued reports dated March 6, 2001 on my considerationof Victoria Limited Partnership’s internal control and on its compliance withlaws and regulations.

 

My audit was made for the purpose of formingan opinion on the basic financial statements taken as a whole. The supplementalinformation is presented for purposes of additional analysis and is not arequired part of the basic financial statements. Such information has beensubjected to the auditing procedures applied in the audits of basic financialstatements and, in my opinion, is fairly stated in all material respects inrelation to the financial statements taken as a whole.

 

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Independent Auditors’ Report

 

To the Partners of

Village Terrace Limited Partnership

(A North Carolina Limited Partnership)

 

We have audited the accompanying balancesheets of Village Terrace Limited Partnership (a North Carolina LimitedPartnership) as of December 31, 2000 and 1999, and the related statements ofoperations, changes in partners’ equity (deficit) and cash flows for the yearsthen ended. These financial statements are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financialstatements based on our audits.

 

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

 

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

 

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

 

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**Independent Auditors’ Report**

 

To the Partners of

Wesley Village Associates Limited Partnership

DBA Wesley Village Apartments

Gaithersburg, Maryland

 

We have audited the accompanying balancesheet of Wesley Village Associates Limited Partnership (a limited partnership),DBA Wesley Village Apartments, Case No. 57-002-521397397, as of December 31,2000, and the related income statement, changes in partners’ equity (deficit)and cash flows for the year then ended. These financial statements are theresponsibility of the Partnership’s management. Our responsibility is toexpress an opinion on these financial statements based on our audit. Thefinancial statements of Wesley Village Associates Limited Partnership as ofDecember 31, 1999, were audited by other auditors whose report dated February3, 2000, expressed an unqualified opinion on those statements.

 

We conducted our audit in accordance withgenerally accepted auditing standards, *Government Auditing Standards,*issued bythe Comptroller General of the United States, and the U.S. Department ofAgriculture, Farmers Home Administration “Audit Program” issued in December1989. Those standards require that we plan and perform our audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, the evidencesupporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basisfor our opinion.

 

In our opinion, the financial statementsreferred to above present fairly, in all material respects, the financialposition of Wesley Village Associates Limited Partnership, DBA Wesley VillageApartments, Case No. 57-002-521397397, at December 31,2000, and the results ofits operations, changes in partners’ equity (deficit) and cash flows for theyear then ended in conformity with generally accepted accounting principles.

 

In accordance with *Government Auditing Standards,*wehave also issued a report dated January 29, 2001, on our consideration ofWesley Village Associates Limited Partnership’s internal control and a report datedJanuary 29, 2001, on its compliance with specific requirements applicable toRural Housing Service Programs.

 

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Independent Auditor’s Report

 

To the Partners

Woodfield Commons Limited Partnership

 

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

 

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

 

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

 

Our audits were made for thepurpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information on page 12 is presented for purposes ofadditional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing proceduresapplied in the audits of the basic financial statements and, in our opinion, isfairly stated in all material respects in relation to the basic financialstatements taken as a whole.

 

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