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Blackman Limited Dividend HousingAssociation Limited Partnership

(a Michigan limited partnership)

MSHDA Development No. 3047

Financial Report

with Additional Information

December 31, 2013

Blackman Limited Dividend Housing AssociationLimited Partnership MSHDA Development No. 3047

Partnership Certification

I hereby certify that I have examined the accompanying financial statements and supplementaldata of Blackman Limited Dividend Housing Association Limited Partnership, MSHDA ProjectNo. 3047, and, to the best of my knowledge and belief, they represent a true statement of thedata set forth therein for the year ended December 31, 2013.

Brian W. CarnaghiGeneral Partner RepresentativePV West LLC

ID# 20-5161332

Partnership Employer IdentificationNumber

February 20, 2014

Date


Contents

Report Letter 1-2

Financial Statements

Balance Sheet 3

Statement of Operations 4

Statement of Partners' Equity 5

Statement of Cash Flows 6

Notes to Financial Statements 7-14

Additional Information 15

Report Letter 16

Schedule of Unadjusted Items 17

Schedules I & II - Funds Available for Distribution 18-21

Report on Internal Control Over Financial Reporting on Compliance andOther Matters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards 22-25

Independent Auditor's Report

To the PartnersBlackman Limited Dividend Housing

Association Limited Partnership

Report on the Financial Statements

We have audited the accompanying financial statements of Blackman Limited Dividend HousingAssociation Limited Partnership (the "Partnership"), MSHDA Development No. 3047, whichcomprise the balance sheet as of December 31, 2013 and 2012 and the related statements ofoperations, partners' equity, and cash flows for the years then ended, and the related notes tothe financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financialstatements in accordance with accounting principles generally accepted in the United States ofAmerica; this includes the design, implementation, and maintenance of internal control relevantto the preparation and fair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audits. Weconducted our 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 United States. Those standardsrequire that we plan and perform the audits to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal control. Accordingly, we express no such opinion. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of significantaccounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.

1

amanda.omalley

A Hills

amanda.omalley

Praxity



We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinions.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects,the financial position of Blackman Limited Dividend Housing Association Limited Partnership,MSHDA Development No. 3047, as of December 31, 2013 and 2012 and the results of itsoperations and its cash flows for the years then ended in accordance with accounting principlesgenerally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report datedFebruary 20, 2014 on our consideration of Blackman Limited Dividend Housing AssociationLimited Partnership's internal control over financial reporting and on our tests of its compliancewith certain provisions of laws, regulations, contracts, grant agreements, and other matters. Thepurpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the results of that testing, and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of anaudit performed in accordance with Government Auditing Standards in considering BlackmanLimited Dividend Housing Association Limited Partnership's internal control over financialreporting and compliance.

February 20, 2014

2


Balance Sheet

December 31,2013

December 31,2012

Assets

Cash:Cash $ 2,644 $ 3,340Operating reserve cash 9,176 20

Resident accounts receivable - Net 9,170 6,354Prepaid expenses 25,547 13,850Escrows and reserves (Note 2):

Replacement reserve 130,419 101,564Real estate taxes 12,146 11,772Insurance 1,178 8,167Operating assurance 259,417 246,371

Tenant security deposit accounts - Savings 3,262 2,540Deferred mortgage costs - Net of accumulated amortization 71,100 72,923Monitoring fees - Net of accumulated amortization 25,111 28,008Investment in rental property - At cost:

Land 357,857 357,857Building and land improvements 7,693,698 7,693,698Equipment and fixtures 46,856 41,393Less accumulated depreciation (1,544,223) (1,272,961)

Total assets $ 7,103,358 $ 7,314,896

Liabilities and Partners' Equity

LiabilitiesAdvances from affiliate - Operating (Note 3) $ 116,592 $ 110,594Developer fee payable (Note 3) 468,708 468,708Accrued liabilities and other:

Payment in lieu of taxes 37,772 36,454Mortgage interest (Note 4) 244,455 211,801Payroll 5,125 4,553Prepaid resident rent 10,624 4,895Other accrued liabilities - Operating 392 348

Accrued liabilities - Partnership 40,525 40,525Tenant security deposits 722 -Mortgage note payable (Note 4) 3,901,032 3,946,154

HOME loan (Note 4) 1,095,988 1,095,988

Total liabilities 5,921,935 5,920,020

Partners' Equity 1,181,423 1,394,876

Total liabilities and partners' equity $ 7,103,358 $ 7,314,896

See Notes to Financial Statements. 3


Statement of Operations

Year Ended

December 31,

2013

December 31,

2012

RevenueRental income $ 648,004 $ 635,252

Vacancy loss (7,216) (8,039)

Net rental income 640,788 627,213Other income:

Interest income 29,910 32,150Laundry income 83 250Bad debt recovery - 3,687

Tenant charges 1,554 1,859

Total other income 31,547 37,946

Total revenue 672,335 665,159

ExpensesAdministrative 11,972 13,626Management fee - Development's operating account

(Note 3) 39,285 38,718Salaries and wages (Note 3) 72,676 67,661Audit fee 11,070 10,870Operating and maintenance 59,474 55,666Utilities 60,933 67,374Depreciation and amortization 275,983 275,666Property taxes 37,523 35,772Payroll taxes (Note 3) 5,305 4,934Insurance 37,831 34,879Interest 268,196 270,830Marketing 4,514 387

Other 1,026 2,454

Total expenses 885,788 878,837

Net Loss $ (213,453) $ (213,678)



Statement of Partners' Equity

General Partner Limited Partner Total

Balance - January 1, 2012 $ 434,346 $ 1,174,208 $ 1,608,554

Net loss (21) (213,657) (213,678)

Balance - December 31, 2012 434,325 960,551 1,394,876

Net loss (21) (213,432) (213,453)

Balance - December 31, 2013 $ 434,304 $ 747,119 $ 1,181,423



Statement of Cash Flows

Year Ended

December 31,2013

December 31,2012

Cash Flows from Operating ActivitiesNet loss $ (213,453) $ (213,678)Adjustments to reconcile net loss to net cash from

operating activities:Depreciation 271,263 270,946Deferred interest 32,654 32,667Amortization 4,720 4,720Changes in operating assets and liabilities which

(used) provided cash:Accounts receivable (2,816) (3,956)Funded residents' security deposits (722) (1)Prepaid expenses (11,697) (1,751)Operating reserves (13,046) (21,744)Security deposit liability 722 (953)Unearned rental income 5,729 3,100Payment in lieu of taxes 1,318 754Other accrued liabilities 615 733

Accounts payable - (252)

Net cash provided by operating activities 75,287 70,585

Cash Flows from Investing ActivitiesEscrow funding (31,396) (19,403)

Investment in building and land improvements (5,463) (1,524)

Net cash used in investing activities (36,859) (20,927)

Cash Flows from Financing ActivitiesPayments on mortgage note payable (45,122) (42,501)

Advances from affiliates 5,998 (4,273)

Net cash used in financing activities (39,124) (46,774)

Net (Decrease) Increase in Cash (696) 2,884

Cash - Beginning of year 3,340 456

Cash - End of year $ 2,644 $ 3,340

Supplemental Cash Flow Information - Cash paid for interest $ 235,542 $ 240,633


Blackman Limited Dividend Housing AssociationLimited Partnership

Notes to Financial StatementsDecember 31, 2013 and 2012

Note 1 - Organization and Summary of Significant Accounting Policies

Blackman Limited Dividend Housing Association Limited Partnership (the "Partnership")was formed as a limited partnership in April 2006 under the laws of the MichiganUniform Partnership Act as regulated by the Michigan State Housing DevelopmentAuthority (MSHDA) for the purpose of constructing and operating a rental housingproject. The project consists of 81 units located in Blackman Township, Michigan and iscurrently operating under the name of The Village of Spring Meadows. Operationsbegan in September 2007.

Under the terms of the Regulatory Agreement executed in connection with obtainingthe mortgage loan, MSHDA regulates rental rates and distributions to owners. TheRegulatory Agreement contains requirements including operating policies, maintaining areserve fund for replacement, maintaining an operating assurance escrow, and limitingdistributions to partners.

Each building of the project has qualified for and been allocated low-income housing taxcredits pursuant to Internal Revenue Code Section 42, which regulates the use of theproject as to occupant eligibility and unit gross rent, among other requirements. Eachbuilding of the project must meet the provisions of these regulations during each of 15consecutive years in order to remain qualified to receive the credits. In addition,Blackman Limited Dividend Housing Association Limited Partnership has executed anextended low-income housing agreement which requires the utilization of the projectpursuant to Section 42 for a minimum of 30 years, even if the Partnership disposes ofthe project.

Significant accounting policies are as follows:

Basis of Accounting - The Partnership maintains its accounting records and preparesits financial statements on an accrual basis, which is in accordance with accountingprinciples generally accepted in the United States of America.

Classification - The financial affairs of the Partnership do not generally involve abusiness cycle. Accordingly, the classification of assets and liabilities between current andlong term is not used.

As required by MSHDA, certain items in the financial statements have been designatedas operating items as they relate to the operation of the housing project, and certainitems have been designated as partnership items as they relate to the operation of thepartnership that owns the housing project.

7



Note 1 - Organization and Summary of Significant Accounting Policies(Continued)

Resident Accounts Receivable - The resident accounts receivable are stated at netrent amounts. An allowance for doubtful accounts is established based on specificassessments of all invoices that remain unpaid following normal resident paymentperiods. All amounts deemed uncollectible are charged against the allowance fordoubtful accounts in the period the determination is made. There were no allowancefor doubtful accounts for the years ended December 31, 2013 and 2012.

Investment in Rental Property - Rental property is recorded at cost. Depreciation iscalculated using the straight-line basis for financial reporting purposes. Buildings aredepreciated over 40 years, land improvements are depreciated over 15 years, andfurniture, fixtures, and equipment are depreciated over seven years.

Depreciation expense was $271,263 and $270,946 for the years ended December 31,2013 and 2012, respectively. For income tax purposes, accelerated lives and methodsare used. Maintenance, repairs, and renewals that do not involve any substantialbetterments are charged to expense when incurred. Expenditures that increase theuseful life of the property are capitalized.

Impairment of Assets - The Partnership recognizes impairment of long-lived assetsused in operations when indicators of impairment are present and the undiscountedcash flows estimated to be generated by those assets are less than the assets' carryingamount. No impairment of the Partnership's rental property has occurred.

Deferred Costs - Mortgage costs of $82,038 are amortized over the term of themortgage loan using the straight-line method. Total accumulated amortization related tothese costs is $10,938 and $9,115 at December 31, 2013 and 2012, respectively.

Tax credit monitoring fees of $43,461 are amortized over 15 years using the straight-line method. Total accumulated amortization related to these costs is $18,350 and$15,453 at December 31, 2013 and 2012, respectively.

Partnership Interests and Contributions - The Partnership has one general partner,PV West LLC, which has .01 percent interest. The Partnership has one limited partner,Michigan Capital Fund for Housing Limited Partnership XV, which has 99.99 percentinterest.

According to the partnership agreement, the limited partner is required to make capitalcontributions of $2,555,290 in installments and the general partner is required tocontribute $333,968 in installments. The capital contributions are subject to adjustmentdepending on certain conditions being met, primarily related to the amount and timingof low-income housing tax credits the Partnership is able to obtain. As of December 31,2013 and 2012, the limited partner had contributed $2,536,147. As of December 31,2013 and 2012, the general partner had contributed $434,480.

8




Allocation of Profits and Losses - Generally, profits and losses are allocated.01 percent to the general partner and 99.99 percent to the limited partner. Profits andlosses arising from the sale, refinancing, or other disposition of all or substantially all ofthe Partnership's assets will be specially allocated as prioritized in the partnershipagreement. Additionally, the partnership agreement provides for other instances inwhich special allocation of profits, losses, and distributions may be required. Cash flow,as defined by the partnership agreement, is distributed as follows:

1. First, to the limited partner to the extent of any amount to which the limitedpartner is entitled to receive from cash flow as payment to satisfy any tax creditreduction payment

2. Second, to Great Lakes Capital Fund, an investor service fee pursuant to theinvestor services agreement in an amount not to exceed $3,000, which shall be paidannually but is noncumulative

3. Third, to the developers to pay any unpaid and deferred development fee payablepursuant to the development agreement

4. Fourth, to the general partner, a partnership management fee pursuant to thepartnership management services agreement in an annual, noncumulative amountnot to exceed $30,000

5. Fifth, 90 percent of the balance to the general partner as an incentive managementfee pursuant to the incentive management fee agreement in an annual,noncumulative amount not to exceed $30,000

6. The remainder shall be distributed to the partners in accordance with the followingpercentages: general partner, 90 percent, and limited partner, 10 percent.

Syndication Costs - Limited partner equity is presented net of syndication costs of$14,173.

Rental Income - The Partnership records apartment rentals at gross potential rent asadjusted for vacancy loss. Rental income is recognized as rentals become due. Rentalpayments received in advance are deferred until earned. All leases between thePartnership and the tenants of the project are operating leases.

Income Taxes - No provision has been made in the financial statements for incometaxes because, as a partnership, all income and expenses are allocated to the partnersfor inclusion on their respective income tax returns.

9




Payment in Lieu of Taxes - The Partnership is a participant in a tax abatementprogram providing for an assessed service charge in lieu of property taxes. The servicecharge of 4 percent is assessed based on net shelter rents. Net shelter rents are thetotal collections during the year from all occupants of the development representingrent or occupancy charges excluding charges for utilities. The estimated service chargein lieu of taxes is recorded in the year paid. In addition, the Partnership is required tofund the Public Safety Improvement Fund of the Charter Township of Blackman at afixed rate of $12,292 in the initial year and an increase at a rate of 3 percent each yearthereafter.

Use of Estimates - The preparation of financial statements in conformity withaccounting principles generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenue and expenses during thereporting period. Actual results could differ from those estimates.

Subsequent Events - The financial statements and related disclosures includeevaluation of events up through and including February 20, 2014, which is the date thefinancial statements were available to be issued.

Note 2 - Escrows and Reserves

Escrows for real estate taxes, insurance, other escrows, and replacement reserves aremaintained under the control of the mortgagee for the benefit of the project.

According to the Regulatory Agreement, the Partnership will fund the operating reservecash account annually from available surplus cash. No amounts have been funded to dateunder this provision.

Under the Regulatory Agreement, the Partnership's replacement reserve fundingrequirement shall be equal to 1/12 of 3.4 percent of the gross annual potential rent. Thebalance in this reserve at December 31, 2013 and 2012 was $130,419 and $101,564,respectively.

10



Note 2 - Escrows and Reserves (Continued)

The Partnership established an operating assurance reserve equal to $188,943 at thetime of the initial disbursement of the mortgage proceeds in accordance with theRegulatory Agreement. The funds are to assist in the payment of operating expensesduring the first 10 years of operations, upon consent of MSHDA. The reserve wasfunded as required. The balance is $259,417 and $246,371 at December 31, 2013 and2012, respectively.

Insurance and tax escrows are maintained as required for payment of expenditures inaccordance with the Regulatory Agreement. The balance in the insurance and taxescrows was $13,324 and $19,939 at December 31, 2013 and 2012, respectively.

It is MSHDA's position, under Michigan statute, that project cash surplus cannot be usedto pay off the MSHDA mortgage, and upon such payoff from other funds, MSHDA isentitled to any surplus cash, including reserves and escrows remaining at such time as isin excess of the maximum cash return allowable to the property owners set forth in theRegulatory Agreement at such time as the loan was consummated. The potentialamount to be returned upon such an event cannot be determined and, as such, norelated amounts have been reflected in the financial statements.

Note 3 - Related Party Transactions

Affiliate Advances - Affiliate advances consist of advances made by PresbyterianVillages of Michigan (PVM), an affiliate of the general partner, to cover operatingdisbursements of the Partnership when the need arises due to lags in cash receipts. Theamount outstanding at December 31, 2013 and 2012 was $116,592 and $110,594,respectively, which is due upon demand and noninterest-bearing. In addition, during2013 and 2012, the Partnership paid Presbyterian Villages of Michigan $77,409 and$71,922, respectively, for reimbursable payroll costs.

Developer Fees - Developer fees are payable to an affiliate of the general partner forservices rendered in negotiating, coordinating, and supervising the planning,architectural, engineering, and construction services necessary for construction of theproject and other related development activities. According to the developmentagreement, the Partnership will pay the developer, PV West, an affiliate of the generalpartner, developer fees in the amount of $1,112,833. The developer fees are capitalizedas part of the building and improvements and have been earned and recognized inaccordance with the development fee agreement. As of December 31, 2009, the fullamount of the developer fee had been earned. At December 31, 2013 and 2012,$468,708 remains payable.

11



Note 3 - Related Party Transactions (Continued)

Partnership Management Fees - According to the partnership management serviceagreement, the Partnership shall pay the general partner an annual partnershipmanagement fee of $30,000. This fee is paid out of cash flow and is noncumulative. Asthere were no funds available from cash flow in 2013 or 2012, no amounts wereincurred or accrued at December 31, 2013 and 2012.

Property Management Fee - According to the partnership management agreement,the Partnership shall pay Presbyterian Villages of Michigan, an affiliate of the generalpartner, a property management fee of $485 and $478 per unit annually for 2013 and2012, respectively. For the years ended December 31, 2013 and 2012, totalmanagement fees incurred and paid were $39,285 and $38,718, respectively.

Incentive Partnership Management Fee - The Partnership incurs an annual incentivemanagement fee in an amount equal to the lesser of (i) 90 percent of the Partnership'scash flow, as defined in the partnership agreement or (ii) $30,000. In accordance withprovisions in the partnership agreement, unpaid incentive management fees at the endof each year may only be paid to the extent funds are available from the current year'scash flow after payment of the annual partnership management fee detailed above. Asthere were no funds available from cash flow in 2013 and 2012, no amounts wereincurred or accrued at December 31, 2013 and 2012.

Investor Service Fees - According to the partnership agreement, the Partnership shallpay Great Lakes Capital Fund an annual noncumulative asset management fee of $3,000,payable from cash flow as defined in the partnership agreement. As there were nofunds available from cash flow in 2013 and 2012, no amounts were incurred or accruedat December 31, 2013 and 2012.

Operating Deficit Guaranty - As provided for in the partnership agreement, thegeneral partner will provide loans to the Partnership for operating deficits incurred inthe 15 years after breakeven operations have occurred if such deficits are not paid fromthe operating assurance reserve. Such loans shall not exceed $167,000. At December31, 2013 and 2012, no such loans have been made.

12



Note 3 - Related Party Transactions (Continued)

Following is a summary of fees paid or accrued to related parties:

Name of RelatedParty Relationship

Brief Descriptionof Work/Services

Performed

GeneralLedger

Account

Partnershipor Operating

AccountTransaction

AmountTerms of

Settlement

2013

PVM Affiliate of the

general partner

Advances to

affiliate

Accountspayable

Operating $ 116,592 Currentpayable

PVM Affiliate of thegeneral partner

Developer fee Developerpayable

Partnership 468,708 Outstandingportion ofdeferreddeveloperfee


general partnerManagement fee Management

fee expenseOperating 39,285 Expensed

2012


general partner

Advances to

affiliate

Accountspayable

Operating 110,594 Currentpayable


Developer fee Developerpayable

Partnership 468,708 Outstandingportion ofdeferreddeveloperfee


Management fee Managementfee expense

Operating 38,718 Expensed

Note 4 - Mortgage Note Payable - MSHDA

The Partnership has a mortgage that bears an annual effective interest rate of 6 percent.Monthly principal and interest payments totaling $23,389 began in January 2009. Theloan matures on August 1, 2042. The loan is collateralized by real and personal propertyof the project. At December 31, 2013 and 2012, the balance payable was $3,901,032and $3,946,154, respectively. Accrued interest on this loan was $19,505 and $19,731 atDecember 31, 2013 and 2012, respectively.

13



Note 4 - Mortgage Note Payable - MSHDA (Continued)

The second mortgage is a HOME loan held by MSHDA in the amount of $1,095,988.The mortgage bears interest at 3 percent per annum. Annual payments of principal andinterest will commence once the deferred developer fee is paid in full or on November1, 2018, whichever comes first; annual payments of principal and interest will be paidfrom available cash flow. Once the first mortgage is paid in full, annual principal andinterest payments required on the HOME loan will equal the payments required underthe first mortgage. Deferred interest accrued on the loan totaled $224,950 and$192,070 at December 31, 2013 and 2012, respectively. The loan is expected to be paidin full by October 1, 2056.

Minimum principal payments to maturity on the debt as of December 31, 2013 are asfollows:

2014 $ 47,9052015 50,8602016 53,9972017 57,3272018 60,863

Thereafter 4,726,068

Total $ 4,997,020

Note 5 - Contingency

The project's low-income housing tax credits are contingent on its ability to maintaincompliance with applicable sections of Section 42. Failure to maintain compliance withoccupant eligibility, and/or unit gross rent, or to correct noncompliance within aspecified time period could result in recapture of previously taken tax credits plusinterest. In addition, such potential noncompliance may require an adjustment to thecontributed capital by the investor limited partner.

14

Additional Information

15

Independent Auditor's Report on Additional Information



We have audited the financial statements of Blackman Limited Dividend Housing AssociationLimited Partnership (a Michigan limited partnership), MSHDA Development No. 3047, as of andfor the year ended December 31, 2013. Our audit was made for the purpose of forming anopinion on the basic financial statements taken as a whole. The additional information andMSHDA schedules on pages 17 through 21 are presented for the purpose of additional analysisand are not a required part of the basic financial statements. Such information is theresponsibility of management and was derived from and relates directly to the underlyingaccounting and other records used to prepare the financial statements. The information hasbeen subjected to the auditing procedures applied in the audit of the financial statements andcertain additional procedures, including comparing and reconciling such information directly tothe underlying accounting and other records used to prepare the financial statements or to thefinancial statements themselves, and other additional procedures in accordance with auditingstandards generally accepted in the United States of America. In our opinion, the information isfairly stated in all material respects in relation to the financial statements as a whole.

February 20, 2014

16

amanda.omalley

A Hills

amanda.omalley

Praxity


Schedule of Unadjusted ItemsDecember 31, 2013

Description of Variances

Amount of

Overstatement

(Understatement)

None $ -

17

1 Operating Cash $ 2,644

2 MSHDA-Held Operating Reserve Account 9,176

3 Other Non-Restricted Cash Reserve Accounts -0-

4

TOTAL AVAILABLE CASH (PER AUDIT) (ADD Lines 1 through

Line 3) 11,820$

ADD:

5 Resident Rent Receivable $ 9,170

6 Other Resident Charges -0-

7 Non-Resident Receivable -0-

8 Unadjusted Items-Accounts Receivable -0-

9 Subsidy Receivable -0-

10 Tax/Insurance Escrow Surplus (Deficit) 12,641

11 Escrow Draws Receivable -0-

12 TOTAL ADDITIONS (ADD Lines 5 through 11) 21,811$

13 TOTAL CASH AND ADDITIONS (Line 4 PLUS Line 12) 33,631

DEDUCT:

14

15 Subsidy Payable -0-

16 Unadjusted Items-Liabilities -0-

17 Approved Undisbursed Limited Dividend (L.D.) Payments -0-

18 Prepaid Rent/Unearned Rental Income 10,624

19

20 Delinquent Interest Payment -0-

21 R/R Deferrals, Delinquent MSHDA Loans/ Grants -0-

22 Security Deposit Not Funded (Over Funded) (2,540)

23 One Month’s Gross Rent Potential 54,000

24 TOTAL DEDUCTIONS (ADD Lines 14 through Line 23) 184,193$

25

26 Replacement Reserve Needs $ -0-

27 Subtotal (Line 25 minus Line 26) (150,562)

28 Amenity Improvement/Deferred Maintenance Loan -0-

29 Subtotal (Line 27 Minus Line 28) (150,562)

30 Amount of Workout Repayment Obligations -0-

31

SURPLUS FUNDS (LINE 13 MINUS LINE 24). Insert the actual

amount even if it is negative. $ (150,562)

SECTION 4

SURPLUS FUNDS AVAILABLE FOR DISTRIBUTION (LINE 29

MINUS LINE 30). Insert the actual amount even if it is negative. $ (150,562)

SECTION 2

SECTION 3

Trade Accounts And Surcharges Payable, Accrued

Expenses Liabilities And and Other Short-term Operating $ 122,109

Delinquent Mortgage Principal Payments -0-

VILLAGE OF SPRING MEADOWS MSHDA NO. 3047

SCHEDULE I-JDEVELOPMENTS WITH MODIFICATIONS FOR DEFERRED DEVELOPER FEES

FUNDS AVAILABLE FOR DISTRIBUTION

December 31, 2013

SECTION 1

18

32 Deferred Developer Fee beginning Balance $ 468,000

33 Deferred Developer Fee Payments or amounts waived in

current year. -0-

34 Deferred Developer Fee Ending Balance 468,000

35 Deferred Developer Fee Payment Available From Surplus Cash -0-$

36 SURPLUS FUNDS (Line 31 Minus Line 35) (150,562)$

402 - River Village 25%

527 - McCoy Townhomes 25%

534 - Elmwood Park 50%

608 - Riverside Townhomes 25%

612 - Deerpath 25%

632 - Mari-Dan Miller Farms 25%

856 - Carrington (amortized prin bal.)

3091 - The Village at the Pines 25%

3119 - Braidwood Manor 25%

3166 - Bay Pointe 25%

3196 - Lincolnshire 25%

3361 - East Side Manor 50%

3486 - St George Tower 50%

3490 - Serenity Place 50%37 Total Surplus Cash Repayment ( If Development is listed

above enter 25% or 50% of Line 36 if Line 36 is positive) -0-$

38 Deferred Interest on Preservation Loan -0-

39 Deferred Interest Repayment: Lesser of Line 37 or Line 38 -0-

40 Balance of Surplus Cash Repayment to be Paid to Preservation

Loan (Line 37 Minus Line 39) -0-

41 Balance of Preservation Fund Loan $ -0-

42

Preservation Fund Loan Repayment: Lesser of Line 40 or Line 41. -0-

43 Carrington Place ONLY: Amount to amortize Principal Balance

of the Preservation Fund Loan over 50 years at the Stated Interest

Rate -0-

44 Carrington Place ONLY: Preservation Fund Loan Repayment

Obligation (Lesser of Line 36 or Line 43) -0-

45

Deferred Interest and Preservation Fund Loan Payment

Available From Surplus Cash (Line 39, Line 42, and Line 44) -0-$


47 Park Terrace ONLY: Deferred Principal -0-$


1046 - Park Terrace - 100%

3047 - Village of Spring Meadows - 100%

3098 - Emerald Woods Senior - 100%

3110 - Heron Manor - 25%

3124 - Piquette Square - 25%

3164 - Crystal View - 25%

49 Total Surplus Cash Repayment ( If Development is listed

above enter 25% or 100% of Line 48 if Line 48 is positive) -0-$

50 Deferred Interest on HOME Loan 224,950

51 Deferred Interest Repayment: Lesser of Line 49 Line 50 -0-

SECTION 5

SECTION 6

Line 49 thru 55 is applicable only to the following developments with HOME loans. All others go to

Line 56.

PRESERVATION FUND LOANS - Line 37 thru 45 is applicable only to the following developments with

Preservation loans. All others go to Line 46.

19

52 Balance of Surplus Cash Repayment to be Paid to Preservation

Loan (Line 49 Minus Line 51) -0-

53 Balance of HOME Loan -0-

54 HOME Loan Repayment: Lesser of Line 52 or Line 53. -0-

55 Deferred Interest and HOME Fund Loan Payment Available

From Surplus Cash (Line 51 and Line 54) -0-$

56 SURPLUS FUNDS (LINE 48 MINUS LINE 55). (150,562)$

57 Deferred Developer Fee Payment Available From Surplus Cash -0-

58 SURPLUS FUNDS AVAILABLE FOR OWNER DISTRIBUTION

(SUM OF LINE 55 AND LINE 56). (150,562)

59 Current Years Maximum Potential Limited Dividend

Payment 434,399

60 Subtotal (Line 51 Minus Line 52). (584,961)

61 Total of Line 2 $ 9,176

62

-0-$

63 The amount from Line 10, if a deficit (Tax/Insurance Escrow) $ -0-

64

65 The lesser of Line 29 or Line 30-Workout Repayment Obligations

(If Line 29 is negative, insert "0") $ -0-

67 The amount from Line 42 and 44 (Preservation Fund Loan) $ -0-

68 The amount from Line 42 (HOME Loan) $ -0-

69 The amount from Line 39 and Line 51 (Deferred Mortgage

Interest) $ -0-

70 The lesser of Line 46 or Line 47-Deferred Mortgage Principal (If

Line 46 is negative, insert "0") $ -0-

71 The amount from Line 62 (Operating Reserve Cash) $ -0-

A SEPARATE CHECK AND/OR MSHDA-HELD RESERVE TRANSFER REQUEST MUST BE SUBMITTED

FOR EACH AMOUNT REPORTED ON LINES 63 THROUGH 71 WITHIN 120 DAYS AFTER THE

DEVELOPMENT’S YEAR-END. PLEASE INDICATE THE PURPOSE ON EACH CHECK OR MSHDA-HELD

RESERVE TRANSFER REQUEST. FAILURE TO COMPLY WITH THIS REQUEST WILL AFFECT THE

MANAGEMENT AGENT’S ELIGIBILIGY FOR PREMIUM MANAGEMENT FEES.

The lesser of Line 27 or Line 28-Amenity Improvement/Deferred

Maintenance Loan (If Line 27 is negative, insert "0") $ -0-

OPERATING RESERVE CASH TO BE SUBMITTED TO

MSHDA: DEDUCT LINE 61 FROM LINE 60. If LINE 60 is

negative, insert “0”.

66 The lesser of Line 25 or Line 26-Replacement Reserve Needs (If

Line 25 is negative, insert “0”). $ -0-

SECTION 7

SUMMARY OF CHECKS AND/OR MSHDA-HELD RESERVE TRANSFERS DUE:

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1. $ 2,555,290

1a. $ -0-

2. $ 434,399

3. CUMULATIVE % 17% $ 434,399

4. NON-CUMULATIVE % 0% $ -0-

CUT-OFF DATE:

5.

CLOSING DATE:

IV. V.

CUMULATIVE L.D.

CARRY FORWARD

0 26,810

0 358,998

0 716,739

0 1,100,033

0 1,508,879

0 1,943,278

OWNER INITIAL EQUITY

SECTION 8/236 PRESERVATION

MAXIMUM L.D. PAYMENT:

November 29, 2008

SALE/PRESERVATION TRANSACTION

I. II.

VILLAGE OF SPRING MEADOWS MSHDA NO.3047SCHEDULE II

FUNDS AVAILABLE FOR DISTRIBUTION

December 31, 2013

III.

POTENTIAL L.D.

YEAR OF AVAILABLE FOR

OPERATION DISTRIBUTION

2008 0 26,810

2009 (27,081) 332,188

2010 (127,543) 357,741

2011 (164,385) 383,294

2012 (169,223) 408,846

L.D. PAID

2013 (150,562) 434,399

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Report on Internal Control Over FinancialReporting on Compliance and Other MattersBased on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

22

Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards

Independent Auditor's Report



We have audited the financial statements of Blackman Limited Dividend Housing AssociationLimited Partnership (the "Partnership"), MSHDA Development No. 3047, as of and for the yearended December 31, 2013 and have issued our report thereon dated February 20, 2014.

We have conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and Government Auditing Standards, issued by the Comptroller Generalof the United States.

Compliance

Compliance with laws, regulations, contracts, and grants applicable to Blackman LimitedDividend Housing Association Limited Partnership is the responsibility of Blackman LimitedDividend Housing Association Limited Partnership's management. As part of obtainingreasonable assurance about whether the financial statements are free of material misstatement,we performed tests of the Partnership's compliance with certain provisions of laws, regulations,contracts, and grants, including compliance with specific provisions of the MSHDA RegulatoryAgreement, MSHDA Directives, HOME requirements, and MSHDA Multifamily AuditGuidelines. However, our objective was not to provide an opinion on compliance or theeffectiveness of the entity’s internal control over compliance with such provisions. Accordingly,we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance that are required to bereported herein under Government Auditing Standards referred to in the preceding paragraph.

We have compared the December 31, 2013 monthly income and expense (MIE) reportsubmitted to MSHDA with balances in the financial statements for the year ended December 31,2013, audited by us and covered by our report dated February 20, 2014. The account balancesset forth therein are in material agreement (defined by MSHDA as differences not exceeding 10percent and $3,000), except as noted below.

23

amanda.omalley

A Hills

amanda.omalley

Praxity



Other Administrative Miscellaneous Expenses (7k) Reconciliation

Classification only: Various operating and maintenance expenses are separately categorized onthe financial statements while they are grouped together on the MIE report.

Balance per the MIE $ 21,889Reconciling items:

Included in operating and maintenance expenses on the financial statements (18,578)Included in administrative expenses on the financial statements (3,120)Other fees reported in auditing expense on MIE 840Unreconciled difference (5)

Balance per the statement of operations $ 1,026

Marketing Rent (1e) Concessions

Classification only: Marketing rent concessions are netted into rental income on the financialstatements.

Balance per the MIE $ 4,496Reconciling item - Included in rental income on the financial statements (4,496)

Balance per the statement of operations $ -

Internal Control Over Financial Reporting

Management of Blackman Limited Dividend Housing Assocation Limited Partnership isresponsible for establishing and maintaining effective internal control over financial reporting. Inplanning and performing our audit of the financial statements, we considered Blackman LimitedDividend Housing Association Limited Partnership's internal control over financial reporting as abasis for designing our auditing procedures for the purpose of expressing our opinion on thefinancial statements but not for the purpose of expressing an opinion on the effectiveness ofBlackman Limited Dividend Housing Association Limited Partnership's internal control overfinancial reporting. Accordingly, we do not express an opinion on the effectiveness of BlackmanLimited Dividend Housing Association Limited Partnership's internal control over financialreporting.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent or detect and correct misstatements of the entity’s financial statements on a timelybasis.

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A material weakness is a deficiency, or a combination of deficiencies, in internal control such thatthere is a reasonable possibility that a material misstatement of the entity’s financial statementswill not be prevented or detected and corrected on a timely basis.

Our consideration of the internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and was not designed to identify all deficiencies ininternal control that might be material weaknesses. Given these limitations, during our audit wedid not identify any deficiencies in internal control over financial reporting that we consider to bematerial weaknesses, as defined above. However, material weaknesses may exist that have notbeen identified.

Additionally, no management letter was issued in relation to our audit of the financial statementsof Blackman Limited Dividend Housing Association Limited Partnership as of and for the yearended December 31, 2013.

The purpose of this communication is solely to describe the scope of our testing of internalcontrol over financial reporting and on compliance and other matters based on an audit offinancial statements performed in accordance with Government Auditing Standards, and theresults of that testing. This communication is an integral part of an audit performed inaccordance with Government Auditing Standards in considering the entity's internal control overfinancial reporting and compliance. Accordingly, this communication is not suitable for any otherpurpose.

February 20, 2014

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