UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------- EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2002
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------- EXCHANGE ACT OF 1934
Commission File Number 33-37704-03
INDEPENDENCE TAX CREDIT PLUS L.P. II
------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3646846
- --------------------------- -----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
No.)
625 Madison Avenue, New York, New York 10022
- -------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
PART 1 - Financial Information
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
=========== ===========
December 31, March 31,
2002 2002
----------- -----------
ASSETS
Property and equipment at cost,
net of accumulated depreciation
of $25,837,005 and $23,242,116,
respectively $83,292,317 $85,521,083
Cash and cash equivalents 1,363,141 1,294,481
Cash held in escrow 3,194,388 3,075,317
Deferred costs, net of accumulated
amortization of $161,979 and
$149,434, respectively 233,133 245,678
Other assets 831,308 659,945
----------- -----------
Total assets $88,914,287 $90,796,504
=========== ===========
2
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(continued)
============ =============
December 31, March 31,
2002 2002
------------ -------------
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Liabilities:
Mortgage notes payable $ 57,722,100 $ 58,083,474
Accounts payable and other
liabilities 1,322,265 1,377,788
Accrued interest 11,475,919 10,577,930
Due to local general partners and
affiliates 1,853,127 1,750,401
Due to general partner and
affiliates 3,316,795 2,815,108
------------ ------------
Total liabilities 75,690,206 74,604,701
------------ ------------
Minority interest (103,887) (96,595)
------------ ------------
Commitments and contingencies (Note 3)
Partners' capital (deficit):
Limited partners (58,928 BACs
issued and outstanding) 13,718,638 16,649,464
General partner (390,670) (361,066)
------------ ------------
Total partners' capital (deficit) 13,327,968 16,288,398
------------ ------------
Total liabilities and partners'
capital (deficit) $ 88,914,287 $ 90,796,504
============ ============
See Accompanying Notes to Consolidated Financial Statements.
3
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
========================== ==========================
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------- --------------------------
2002 2001 2002 2001
-------------------------- --------------------------
Revenues
Rental income $ 2,210,730 $ 2,109,637 $ 6,550,673 $ 6,312,655
Other income 47,962 75,912 136,654 192,170
----------- ----------- ----------- -----------
Total revenues 2,258,692 2,185,549 6,687,327 6,504,825
----------- ----------- ----------- -----------
Expenses
General and
administrative 517,705 479,278 1,561,936 1,581,826
General and
administrative-
related parties
(Note 2) 244,626 237,445 738,338 717,402
Repairs and
maintenance 516,023 456,882 1,376,042 1,300,761
Operating 214,316 286,652 663,825 938,242
Taxes 167,693 150,241 523,907 523,592
Insurance 103,838 107,999 341,677 333,465
Financial 806,228 810,511 1,841,890 1,844,150
Depreciation
and amortization 865,596 845,080 2,607,434 2,572,481
----------- ----------- ----------- -----------
Total expenses 3,436,025 3,374,088 9,655,049 9,811,919
----------- ----------- ----------- -----------
Loss before
minority interest (1,177,333) (1,188,539) (2,967,722) (3,307,094)
Minority interest
in loss of subsidiary
partnerships 1,946 2,417 7,292 8,763
----------- ----------- ----------- -----------
Net loss $(1,175,387) $(1,186,122) $(2,960,430) $(3,298,331)
=========== =========== =========== ===========
Net loss-limited
partners $(1,163,633) $(1,174,261) $(2,930,826) $(3,265,348)
=========== =========== =========== ===========
Number of BACs
outstanding 58,928 58,928 58,928 58,928
=========== =========== =========== ===========
Net loss per BAC $ (19.75) $ (19.92) $ (49.74) $ (55.41)
=========== =========== =========== ===========
See Accompanying Notes to Consolidated Financial Statements.
4
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Consolidated Statement of Changes in
Partners' Capital (Deficit)
(Unaudited)
=================================================
Limited General
Total Partners Partner
-------------------------------------------------
Partners' capital
(deficit) -
April 1, 2002 $ 16,288,398 $ 16,649,464 $ (361,066)
Net loss (2,960,430) (2,930,826) (29,604)
------------ ------------ ------------
Partners' capital
(deficit) -
December 31, 2002 $ 13,327,968 $ 13,718,638 $ (390,670)
============ ============ ============
See Accompanying Notes to Consolidated Financial Statements.
5
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Decrease) Increase in Cash and Cash Equivalents
(Unaudited)
=============================
Nine Months Ended
December 31,
-----------------------------
2002 2001
-----------------------------
Cash flows from operating activities:
Net loss $(2,960,430) $(3,298,331)
----------- -----------
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation and amortization 2,607,434 2,572,481
Minority interest in loss of subsidiaries (7,292) (8,763)
Decrease in cash held in
escrow 292,523 146,256
Increase in other assets (171,363) (17,596)
(Decrease) increase in accounts
payable and other liabilities (55,523) 275,416
Increase in accrued interest 897,989 772,516
Increase in due to local general
partners and affiliates 35,787 36,538
Decrease in due to local general
partners and affiliates (21,349) (114,257)
Increase in due to
general partner and affiliates 501,687 421,200
----------- -----------
Total adjustments 4,079,893 4,083,791
----------- -----------
Net cash provided by operating
activities 1,119,463 785,460
----------- -----------
Cash flows from investing activities:
Improvements to property and
equipment (366,123) (200,492)
Increase in cash held
in escrow (411,594) (174,499)
Increase in due to local general
partners and affiliates 207,760 120,000
Decrease in due to local general
partners and affiliates 0 (97,878)
----------- -----------
Net cash used in investing activities (569,957) (352,869)
----------- -----------
6
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Decrease) Increase in Cash and Cash Equivalents
(Unaudited)
(continued)
=============================
Nine Months Ended
December 31,
-----------------------------
2002 2001
-----------------------------
Cash flows from financing activities:
Principal payments of mortgage notes (361,374) (250,252)
Decrease in due to local general
partner and affiliates (119,472) (21,619)
Decrease in capitalization of
consolidated subsidiaries attributable
to minority interest 0 (20)
----------- -----------
Net cash used in financing activities (480,846) (271,891)
----------- -----------
Net increase in cash and
cash equivalents 68,660 160,700
Cash and cash equivalents at
beginning of period 1,294,481 955,245
----------- -----------
Cash and cash equivalents at
end of period $ 1,363,141 $ 1,115,945
=========== ===========
See Accompanying Notes to Consolidated Financial Statements.
7
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002
(Unaudited)
Note 1 - General
The consolidated financial statements include the accounts of Independence Tax
Credit Plus L.P. II (the "Partnership") and 15 other limited partnerships
("subsidiary partnerships", "subsidiaries" or "Local Partnerships") owning
leveraged apartment complexes that are eligible for the low-income housing tax
credit. The general partner of the Partnership is Related Independence
Associates L.P., a Delaware limited partnership (the "General Partner"). Through
the rights of the Partnership and/or an affiliate of the General Partner, which
affiliate has a contractual obligation to act on behalf of the Partnership, to
remove the general partner of the subsidiary local partnerships and to approve
certain major operating and financial decisions, the Partnership has a
controlling financial interest in the subsidiary partnerships.
For financial reporting purposes, the Partnership's fiscal quarter ends December
31, 2002. All subsidiaries have fiscal quarters ending September 30, 2002.
Accounts of the subsidiaries have been adjusted for intercompany transactions
from October 1 through December 31. The Partnership's fiscal quarter ends
December 31 in order to allow adequate time for the subsidiaries financial
statements to be prepared and consolidated.
All intercompany accounts and transactions with the subsidiary partnerships have
been eliminated in consolidation.
Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary partnership have been charged to the Partnership.
Such losses aggregated approximately $8,000 and $8,000 and $17,000 and $19,000
for the three and nine months ended December 31, 2002 and 2001, respectively.
The Partnership's investment in each subsidiary is equal to the respective
subsidiary's partners' equity less minority interest capital, if any. Losses
attributable to minority interests which exceed the minority interests'
8
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002
(Unaudited)
investment in a subsidiary partnership have been charged to the Partnership. In
consolidation, all subsidiary partnership losses are included in the
Partnership's capital account except for losses allocated to minority interest
capital.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the year ended March 31, 2002.
The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of December 31, 2002, the results of operations for the three and
nine months ended December 31, 2002 and 2001 and cash flows for the nine months
ended December 31, 2002 and 2001, respectively. However, the operating results
for the nine months ended December 31, 2002 may not be indicative of the results
for the year.
9
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002
(Unaudited)
Note 2 - Related Party Transactions
An affiliate of the General Partner has a .01% interest as a special limited
partner in each of the Local Partnerships.
The costs incurred to related parties for the three and nine months ended
December 31, 2002 and 2001 were as follows:
Three Months Ended Nine Months Ended
December 31, December 31,
------------------- -------------------
2002 2001 2002 2001
------------------- -------------------
Partnership management
fees (a) $136,500 $136,500 $409,500 $409,500
Expense reimbursement (b) 26,842 23,500 84,985 72,924
Local administrative fee (c) 8,000 8,000 24,000 24,000
-------- -------- -------- --------
Total general and admini-
strative-General Partner 171,342 168,000 518,485 506,424
-------- -------- -------- --------
Property management fees
incurred to affiliates of
the subsidiary partner-
ships' general partners (d) 73,284 69,445 219,853 210,978
-------- -------- -------- --------
Total general and admini-
strative-related parties $244,626 $237,445 $738,338 $717,402
======== ======== ======== ========
(a) The General Partner is entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. Subject to the foregoing limitation, the partnership
management fee will be determined by the General Partner in its sole discretion
based upon its review of the Partnership's investments. Unpaid partnership
management fees for any year will be accrued without interest and will be
payable from working capital reserves or to the extent of available funds after
the Partnership has made distributions to the limited partners of sale or
refinancing proceeds equal to their original capital contributions plus a 10%
priority return thereon (to the extent not theretofore paid out of cash flow).
Partnership management fees owed to the General Partner amounting to
approximately $2,656,000 and $2,247,000 were accrued and unpaid as of December
31, 2002 and March 31, 2002, respectively. Without the General Partner's
10
INDEPENDENCE TAX CREDIT PLUS L.P. II
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002
(Unaudited)
advances and continued accrual without payment of certain fees and expense
reimbursements, the Partnership will not be in a position to meet its
obligations. The General Partner has continued to advance and allow the accrual
without payment of these amounts but is under no obligation to continue to do
so.
(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses incurred by the General Partner and its
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the General Partner performs asset monitoring for the Partnership.
These services include site visits and evaluations of the subsidiary
partnerships' performance.
(c) Independence SLP L.P., a special limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of up to $5,000
per year from each subsidiary partnership.
(d) Property management fees incurred by the Local Partnerships amounted to
$160,495 and $153,444 and $475,654 and $457,571 for the three and nine months
ended December 31, 2002 and 2001, respectively. Of these fees, $73,284 and
$69,445 and $219,853 and $210,978 were incurred to affiliates of the subsidiary
partnerships' general partners.
Note 3 - Commitments and Contingencies
There were no material changes and/or additions to disclosures regarding the
subsidiary partnerships which were included in the Partnership's Annual Report
on Form 10-K for the year ended March 31, 2002.
11
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
- -------------------------------
The Partnership's primary source of funds include working capital reserves,
interest earned on working capital reserves and distributions received from the
Local Partnerships. However, none of these sources provides a material amount of
funds.
As of December 31, 2002, the Partnership has invested all of its net proceeds in
fifteen Local Partnerships. Approximately $282,000 of the purchase price remains
to be paid to the Local Partnerships (including approximately $24,000 being held
in escrow).
For the nine months ended December 31, 2002, cash and cash equivalents of the
Partnership and its fifteen consolidated Local Partnerships increased
approximately $69,000. This increase is primarily due to cash provided by
operating activities ($1,119,000) and a net increase in due to local general
partners and affiliates relating to investing and financing activities ($88,000)
which exceeded improvements to property and equipment ($366,000), principal
payments of mortgage notes ($361,000) and an increase in cash held in escrow
relating to investing activities ($412,000). Included in the adjustments to
reconcile the net loss to cash provided by operating activities is depreciation
and amortization ($2,607,000).
At December 31, 2002, there was approximately $85,000 in the working capital
reserves. For the nine months ended December 31, 2002, the Partnership did not
receive any distributions from the Local Partnerships. Management anticipates
receiving distributions in the future, although not to a level sufficient to
permit providing cash distributions to the BACs holders.
Partnership management fees owed to the General Partners amounting to
approximately $2,656,000 and $2,247,000 were accrued and unpaid as of December
31, 2002 and March 31, 2002, respectively. Without the General Partner's
advances and continued accrual without payment of certain fees and expense
reimbursements, the Partnership will not be in a position to meet its
obligations. The General Partner has continued to advance and allow the accrual
without payment of these amounts but are under no obligation to continue to do
so (see Note 2).
12
For a discussion of contingencies affecting certain Local Partnerships, see Note
3 to the financial statements. Since the maximum loss the Partnership would be
liable for is its net investment in the respective Local Partnerships, the
resolution of the existing contingencies is not anticipated to impact future
results of operations, liquidity or financial condition in a material way.
However, the Partnership's loss of its investment in a Local Partnership will
eliminate the ability to generate future Tax Credits from such Local Partnership
and may also result in recapture of Tax Credits, if the investment is lost
before the expiration of the compliance period.
Management is not aware of any trends or events, commitments or uncertainties
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio is diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy. The Partnership has fully invested the proceeds of its
offering in fifteen Local Partnerships, all of which fully have their Tax
Credits in place. The Tax Credits are attached to the project for a period of
ten years, and are transferable with the property during the remainder of such
ten-year period. If the General Partner determined that a sale of a property is
warranted, the remaining Tax Credits would transfer to the new owner, thereby
adding value to the property on the market, which are not included in the
financial statement carrying amount.
Results of Operations
- ---------------------
The Partnership's results of operations for the three and nine months ended
December 31, 2002 and 2001 consisted primarily of the results of the
Partnership's investment in fifteen consolidated Local Partnerships. The
majority of Local Partnership income continues to be in the form of rental
income with the corresponding expenses being divided among operations,
depreciation and mortgage interest.
Rental income increased approximately 5% and 4% for the three and nine months
ended December 31, 2002 as compared to the corresponding periods in 2001,
primarily due to rental rate increases.
13
Other income decreased approximately $28,000 and $56,000 for the three and nine
months ended December 31, 2002 as compared to the corresponding periods in 2001,
primarily due to decreases in interest rates earned on cash balances at the
Local Partnerships and Partnership level in 2002.
Repairs and maintenance increased approximately $59,000 for the three months
ended December 31, 2002, as compared to the corresponding period in 2001,
primarily due to interior painting at two Local Partnerships and carpet and
plumbing repairs at a third Local Partnership.
Operating expenses decreased approximately $72,000 and $274,000 for the three
and nine months ended December 31, 2002 as compared to the corresponding periods
in 2001, primarily due to a decrease in utility charges at one Local Partnership
as well as an utility company refund received at another Local Partnership in
2002.
Taxes increased approximately $17,000 for the three months ended December 31,
2002 as compared to the corresponding period in 2001, primarily due to a refund
of property taxes of taxes at one Local Partnership in the third quarter of 2001
and an underaccrual of taxes at a second Local Partnership for the first two
quarters of 2002.
Item 4. Controls and Procedures
The Chief Executive Officer and Chief Financial Officer of Related Independence
Associates, Inc. the general partner of Related Independence Associates L.P.
which is the General Partner of the Partnership, have evaluated the
Partnership's disclosure controls and procedures relating to the Partnership's
quarterly report on Form 10-Q for the period ending December 31, 2002 as filed
with the Securities and Exchange Commission and have judged such controls and
procedures to be effective as of December 31, 2002 (the "Evaluation Date").
14
There have been no significant changes in the internal controls or in other
factors that could significantly affect internal controls relating to the
Partnership since the Evaluation Date.
15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities and Use of Proceeds - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
(3A) Agreement of Limited Partnership of Independence Tax Credit
Plus L.P. II as adopted on February 11, 1992*
(3B) Form of Amended and Restated Agreement of Limited
Partnership of Independence Tax Credit Plus L.P. II, attached to the Prospectus
as Exhibit A**
(3C) Certificate of Limited Partnership of Independence Tax
Credit Plus L.P. II as filed on February 11, 1992*
(10A) Form of Subscription Agreement attached to the Prospectus
as Exhibit B**
(10B) Escrow Agreement between Independence Tax Credit Plus L.P.
II and Bankers Trust Company*
(10C) Form of Purchase and Sales Agreement pertaining to the
Partnership's acquisition of Local Partnership Interests*
(10D) Form of Amended and Restated Agreement of Limited
Partnership of Local Partnerships*
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
16
*Incorporated herein as an exhibit by reference to exhibits filed
with Post-Effective Amendment No. 4 to the Registration Statement on Form S-11
(Registration No. 33-37704)
**Incorporated herein as an exhibit by reference to exhibits
filed with Post-Effective Amendment No. 8 to the Registration Statement on Form
S-11 (Registration No. 33-37704)
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter.
17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INDEPENDENCE TAX CREDIT PLUS L.P. II
------------------------------------
(Registrant)
By: RELATED INDEPENDENCE
ASSOCIATES L.P., General Partner
By: RELATED INDEPENDENCE
ASSOCIATES INC., General Partner
Date: January 29, 2003
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
Senior Vice President
(principal financial officer)
Date: January 29, 2003
By: /s/ Glenn F. Hopps
------------------
Glenn F. Hopps,
Treasurer
(principal accounting officer)
CERTIFICATION
I, Michael Brenner, Chief Executive Officer of Related Independence Associates
Inc. ("RIAI") the general partner of Related Independence Associates L.P. the
General Partner of Independence Tax Credit Plus L.P. II (the "Partnership"),
hereby certify that:
1. I have reviewed this quarterly report on Form 10-Q for the period
ending December 31, 2002 of the Partnership;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the Partnership as of, and for, the periods presented in
this quarterly report;
4. I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15-d-14)
for the Partnership and I have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the Partnership is made known to me,
particularly during the period in which this quarterly report was
being prepared;
b) evaluated the effectiveness of the Partnership's disclosure
controls and procedures as of December 31, 2002 (the "Evaluation
Date"); and
c) presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my
evaluation as of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the
Partnership's auditors and to the board of directors of RIAI:
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the Partnership's ability to
record, process, summarize and report financial data and have
identified for the Partnership's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Partnership's
internal controls; and
6. I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
By: /s/ Michael Brenner
-------------------
Michael Brenner
Chief Executive Officer
January 29, 2003
CERTIFICATION
I, Alan P. Hirmes, Chief Financial Officer of Related Independence Associates
Inc. ("RIAI") the general partner of Related Independence Associates L.P. the
General Partner of Independence Tax Credit Plus L.P. II (the "Partnership"),
hereby certify that:
1. I have reviewed this quarterly report on Form 10-Q for the period
ending December 31, 2002 of the Partnership;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the Partnership as of, and for, the periods presented in
this quarterly report;
4. I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15-d-14)
for the Partnership and I have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the Partnership is made known to me,
particularly during the period in which this quarterly report was
being prepared;
b) evaluated the effectiveness of the Partnership's disclosure
controls and procedures as of December 31, 2002 (the "Evaluation
Date"); and
c) presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my
evaluation as of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the
Partnership's auditors and to the board of directors of RIAI:
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the Partnership's ability to
record, process, summarize and report financial data and have
identified for the Partnership's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Partnership's
internal controls; and
6. I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Chief Financial Officer
January 29, 2003
Exhibit 99.1
CERTIFICATION PURSUANT TO
18.U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Independence Tax Credit Plus L.P. II
(the "Partnership") on Form 10-Q for the period ending December 31, 2002 as
filed with the Securities and Exchange Commission on the date hereof (the
"Report"), I, Michael Brenner, Chief Executive Officer of Related Independence
Associates Inc. the general partner of Related Independence Associates L.P., the
General Partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
By: /s/ Michael Brenner
-------------------
Michael Brenner
Chief Executive Officer
January 29, 2003
Exhibit 99.2
CERTIFICATION PURSUANT TO
18.U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Independence Tax Credit Plus L.P. II
(the "Partnership") on Form 10-Q for the period ending December 31, 2002 as
filed with the Securities and Exchange Commission on the date hereof (the
"Report"), I, Alan P. Hirmes, Chief Financial Officer of Related Independence
Associates Inc. the general partner of Related Independence Associates L.P., the
General Partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
By: /s/ Alan P. Hirmes
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Alan P. Hirmes
Chief Financial Officer
January 29, 2003