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 June 30, 2004
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------- EXCHANGE ACT OF 1934
Commission File Number 0-20476
INDEPENDENCE TAX CREDIT PLUS L.P.
---------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3589920
- ------------------------------- -------------------
(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
------- -------
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2).
Yes No X
------- -------
PART I - Financial Information
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
============= =============
June 30, March 31,
2004 2004
------------- -------------
ASSETS
Property and equipment at cost,
net of accumulated depreciation
of $61,540,449 and $60,170,732,
respectively $ 122,418,344 $ 123,764,004
Cash and cash equivalents 1,498,632 1,650,586
Cash held in escrow 10,175,779 10,283,626
Deferred costs, net of accumulated
amortization of $1,605,221
and $1,562,588, respectively 1,578,089 1,620,722
Other assets 1,852,492 1,723,505
------------- -------------
Total assets $ 137,523,336 $ 139,042,443
============= =============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Liabilities:
Mortgage notes payable $ 91,935,110 $ 92,838,355
Accounts payable and
other liabilities 15,419,567 14,658,235
Due to local general partners and
affiliates 5,231,021 5,181,321
Due to general partner and affiliates 10,467,474 9,909,085
------------- -------------
Total liabilities 123,053,172 122,586,996
------------- -------------
Minority interest 4,943,179 4,952,014
------------- -------------
Partners' capital (deficit):
Limited partners (76,786 BACs
issued and outstanding) 10,114,589 12,071,273
General partner (587,604) (567,840)
------------- -------------
Total partners' capital (deficit) 9,526,985 11,503,433
------------- -------------
Total liabilities and partners'
capital (deficit) $ 137,523,336 $ 139,042,443
============= =============
See accompanying notes to consolidated financial statements.
2
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
==========================
Three Months Ended
June 30,
--------------------------
2004 2003*
--------------------------
Revenues
Rental income $ 5,199,784 $ 5,118,082
Other income 159,517 155,895
----------- -----------
5,359,301 5,273,977
----------- -----------
Expenses
General and administrative 966,028 932,632
General and administrative-
related parties (Note 2) 531,186 506,754
Repairs and maintenance 1,605,012 1,167,005
Operating 890,478 868,448
Taxes 346,409 362,701
Insurance 335,760 302,836
Financial, principally interest 1,257,147 1,152,022
Depreciation and amortization 1,412,350 1,399,530
----------- -----------
Total expenses 7,344,370 6,691,928
----------- -----------
Net loss before minority interest (1,985,069) (1,417,951)
Minority interest in loss of
subsidiaries 8,621 7,301
----------- -----------
Net loss $(1,976,448) $(1,410,650)
=========== ===========
Net loss - limited partners $(1,956,684) $(1,396,544)
=========== ===========
Number of BACs outstanding 76,786 76,786
=========== ===========
Net loss per BAC $ (25.48) $ (18.19)
=========== ===========
* Reclassified for comparative purposes
See accompanying notes to consolidated financial statements.
3
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Statement of Changes in Partners' Capital (Deficit)
(Unaudited)
================================================
Limited General
Total Partners Partner
------------------------------------------------
Partners' capital
(deficit)
April 1, 2004 $ 11,503,433 $ 12,071,273 $ (567,840)
Net loss (1,976,448) (1,956,684) (19,764)
------------ ------------ ------------
Partners' capital
(deficit)
June 30, 2004 $ 9,526,985 $ 10,114,589 $ (587,604)
============ ============ ============
See accompanying notes to consolidated financial statements.
4
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
============================
Three Months Ended
June 30,
----------------------------
2004 2003
----------------------------
Cash flows from operating activities:
Net loss $(1,976,448) $(1,410,650)
----------- -----------
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation and amortization 1,412,350 1,399,530
Minority interest in loss of
subsidiaries (8,621) (7,301)
Increase in due to general
partner and affiliates 558,389 416,387
Increase in accounts payable and
other liabilities 761,332 560,468
Increase in other assets (128,987) (37,978)
Decrease in cash held in escrow 107,847 314,471
----------- -----------
Total adjustments 2,702,310 2,645,577
----------- -----------
Net cash provided by
operating activities 725,862 1,234,927
----------- -----------
Cash flows from investing activities:
Increase in property and
equipment (24,057) (56,885)
Increase (decrease) in due to
local general partners and affiliates 49,700 (132,420)
----------- -----------
Net cash provided by (used in)
investing activities 25,643 (189,305)
----------- -----------
Cash flows from financing activities:
Repayment of mortgage notes (903,245) (1,024,073)
Decrease in capitalization of
consolidated subsidiaries
attributable to minority interest (214) (41,500)
----------- -----------
Net cash used in financing activities (903,459) (1,065,573)
----------- -----------
5
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
(continued)
============================
Three Months Ended
June 30,
----------------------------
2004 2003
----------------------------
Net decrease in cash and
cash equivalents (151,954) (19,951)
Cash and cash equivalents at
beginning of period 1,650,586 1,445,745
----------- -----------
Cash and cash equivalents at
end of period $ 1,498,632 $ 1,425,794
=========== ===========
See accompanying notes to consolidated financial statements.
6
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 2004
(Unaudited)
Note 1 - General
The consolidated financial statements include the accounts of Independence Tax
Credit Plus L.P. (the "Partnership") and 28 other limited partnerships
("subsidiary partnerships", "subsidiaries" or "Local Partnerships") owning
affordable 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 June 30.
All subsidiaries have fiscal quarters ending March 31. Accounts of the
subsidiaries have been adjusted for intercompany transactions from April 1
through June 30. The Partnership's fiscal quarter ends June 30, 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 and cash
distributions to the minority interest partners.
Losses attributable to minority interest which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $14,000 and $10,000 for the three months ended June 30,
2004 and 2003, respectively. The Partnership's investment in each subsidiary is
equal to the respective subsidiary's partners' equity less minority interest
capital, if any. 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 disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
has been omitted or condensed. These condensed financial statements should be
7
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 2004
(Unaudited)
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the period ended March 31,
2004.
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, 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 June
30, 2004 and the results of operations and its cash flows for the three months
ended June 30, 2004 and 2003. However, the operating results for the three
months ended June 30, 2004 may not be indicative of the results for the year.
Note 2 - Related Party Transactions
An affiliate of the General Partner, Independence SLP L.P., has either a 0.1% or
1% interest as a special limited partner in each of the Local Partnerships. An
affiliate of the General Partner also has a minority interest in certain Local
Partnerships.
The General Partner and its affiliates perform services for the Partnership. The
costs incurred to related parties for the three months ended June 30, 2004 and
2003 were as follows:
Three Months Ended
June 30,
-----------------------
2004 2003*
-----------------------
Partnership management fees (a) $220,000 $220,000
Expense reimbursement (b) 39,552 31,176
Property management fees incurred to
affiliates of the General Partner (d) 34,968 37,659
Local administrative fee (c) 24,000 19,000
-------- --------
Total general and administrative-
General Partner 318,520 307,835
-------- --------
Property management fees incurred
to affiliates of the subsidiary
partnerships' general partners (d) 212,666 198,919
-------- --------
Total general and administrative-
related parties $531,186 $506,754
======== ========
* Reclassified for comparative purposes
8
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 2004
(Unaudited)
(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 have been, and will continue to be, accrued without
interest and will be payable only 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 $5,939,000 and $5,719,000 were accrued and unpaid as of June 30,
2004 and March 31, 2004.
(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. is entitled to receive a local administrative fee of
up to $2,500 per year from each subsidiary partnership.
(d) Property management fees incurred by subsidiary partnerships amounted
$319,038 and $315,036 for the periods ended June 30, 2004 and 2003,
respectively. Of these fees $212,666 and $198,919 were incurred to affiliates of
the Local General Partners. In addition $34,968 and $37,659 were incurred to
affiliates of the Partnership.
Pursuant to the Partnership Agreement and the Local Partnership Agreements, the
General Partner and Independence SLP L.P. received their prorata share of
profits, losses and tax credits.
9
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 2004
(Unaudited)
Note 3 - Commitments and Contingencies
The Partnership is subject to the risks incident to potential losses arising
from the management and ownership of improved real estate. The Partnership can
also be affected by poor economic conditions generally, however no more than 21%
of the properties are located in any single state. There are also substantial
risks associated with owning properties receiving government assistance; for
example, the possibility that Congress may not appropriate funds to enable the
U.S. Department of Housing and Urban Development ("HUD") to make rental
assistance payments. HUD also restricts annual cash distributions to partners
based on operating results and a percentage of the owner's equity contribution.
The Partnership cannot sell or substantially liquidate its investments in
subsidiary partnerships during the period that the subsidy agreements are in
existence, without HUD's approval. Furthermore, there may not be market demand
for apartments at full market rents when the rental assistance contracts expire.
10
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 is the cash distributions from the
operations of the Local Partnerships. These cash distributions, which remain
relatively immaterial, are available to meet obligations of the Partnership.
As of June 30, 2004, the Partnership has invested all of its net proceeds in
twenty-eight Local Partnerships. Approximately $28,000 of the purchase price
remains to be paid to the Local Partnerships (all of which is held in escrow).
Cash and cash equivalents of the Partnership and its twenty-eight consolidated
subsidiary partnerships decreased approximately $152,000 during the three months
ended June 30, 2004 due to acquisition of property and equipment ($24,000) and
repayments of mortgage notes ($903,000) which exceeded cash provided by
operating activities ($726,000) and an increase in due to local general partners
and affiliates ($50,000). Included in the adjustments to reconcile the net loss
to cash flow provided by operating activities is depreciation and amortization
($1,412,000).
The working capital reserve at June 30, 2004 was approximately $6,000.
Cash distributions received from the Local Partnerships remain relatively
immaterial. Distributions of approximately $0 and $43,000 were received during
the three months ended June 30, 2004 and 2003, respectively. However, management
expects that the distributions received from the Local Partnerships will
increase, although not to a level sufficient to permit providing cash
distributions to BACs holders. These distributions as well as the working
capital reserves referred to in the above paragraph and the deferral of fees by
the General Partner referred to below, will be used to meet the operating
expenses of the Partnership.
Partnership management fees owed to the General Partner amounting to
approximately $5,939,000 and $5,719,000 were accrued and unpaid as of June 30,
2004 and March 31, 2004, respectively (see Note 2). 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 is under no obligation to continue to do
so.
For a discussion of contingencies affecting certain Local Partnerships, see Note
3 to the financial statements. Since the maximum loss the Partnership would be
11
liable for is its net investment in the Local Partnership, the resolution of any
existing contingency 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 28 local partnerships, all of which fully have their tax credits in
place. The tax credits are attached to the property for a period of ten years,
and are transferable with the property during the remainder of the ten year
period. If trends in the real estate market warranted the sale of a property,
the remaining tax credits would transfer to the new owner, thereby adding value
to the property on the market. However, such value declines each year and is not
included in the financial statement carrying amount.
Critical Accounting Policies
- ----------------------------
In preparing the consolidated financial statements, management has made
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting periods. Actual results could differ
from those estimates. Set forth below is a summary of the accounting policies
that management believes are critical to the preparation of the consolidated
financial statements. The summary should be read in conjunction with the more
complete discussion of the Partnership's accounting policies included in Note 2
to the consolidated financial statements in the annual report of Form 10-K.
Property and Equipment
- ----------------------
Property and equipment to be held and used are carried at cost which includes
the purchase price, acquisition fees and expenses, construction period interest
and any other costs incurred in acquiring the properties. The cost of property
and equipment is depreciated over their estimated useful lives using accelerated
and straight-line methods. Expenditures for repairs and maintenance are charged
to expense as incurred; major renewals and betterments are capitalized. At the
time property and equipment are retired or otherwise disposed of, the cost and
accumulated depreciation are eliminated from the assets and accumulated
depreciation accounts and the profit or loss on such disposition is reflected in
earnings. The Partnership complies with Statement of Financial Accounting
12
Standards (SFAS) No. 144 "Accounting for the Impairment or Disposal of
Long-Lived Assets". A loss on impairment of assets is recorded when management
estimates amounts recoverable through future operations and sale of the property
on an undiscounted basis is below depreciated cost. At that time, property
investments themselves are reduced to estimated fair value (generally using
discounted cash flows) when the property is considered to be impaired and the
depreciated cost exceeds estimated fair value.
At the time management commits to a plan to dispose of assets, said assets are
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets are classified as property and equipment-held for sale and are not
depreciated.
Income Taxes
- ------------
The Partnership is not required to provide for, or pay, any federal income
taxes. Net income or loss generated by the Partnership is passed through to the
partners and is required to be reported by them. The Partnership may be subject
to state and local taxes in jurisdictions in which it operates. For income tax
purposes, the Partnership has a fiscal year ending December 31.
Results of Operations
- ---------------------
The Partnership's results of operations for the three months ended June 30, 2004
and 2003 consisted primarily of the results of the Partnership's investment in
twenty-eight 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 remained fairly consistent with an increase of approximately 2%
for the three months ended June 30, 2004 as compared to the corresponding period
in 2003, primarily due to rental rate increases.
Total expenses, excluding repairs and maintenance and insurance, remained fairly
consistent with an increase of approximately 3% for the three months ended June
30, 2004 as compared to the corresponding period in 2003.
Repairs and maintenance increased approximately $438,000 for the three months
ended June 30, 2004 as compared to the corresponding period in 2003 due to the
installment of a new security system at one Local Partnership.
Insurance expense increased approximately $33,000 for the three months ended
June 30, 2004 as compared to the corresponding period in 2003 primarily due to
13
an increase in insurance premiums at the Local Partnerships.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
None
Item 4. Controls and Procedures
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Chief Executive
Officer and Chief Financial Officer of Related Independence Associates Inc., the
general partner of the General Partner of the Partnership, has evaluated the
effectiveness of the Partnership's disclosure controls and procedures (as such
term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934, as amended ("Exchange Act") as of the end of the period covered by
this report. Based on such evaluation, such officer has concluded that, as of
the end of such period, the Partnership's disclosure controls and procedures are
effective.
(b) INTERNAL CONTROL OVER FINANCIAL REPORTING. There have not been any changes
in the Partnership's internal control over financial reporting during the fiscal
quarter to which this report relates that have materially affected, or are
reasonably likely to materially affect, the Partnership's internal control over
financial reporting.
14
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) Form of Amended and Restated Agreement of Limited
Partnership of Independence Tax Credit Plus L.P., attached to the Prospectus as
Exhibit A*
(3B) Amended and Restated Certificate of Limited Partnership of
Independence Tax Credit Plus L.P.*
(10A) Form of Subscription Agreement attached to the Prospectus
as Exhibit B*
(10B) Form of Purchase and Sales Agreement pertaining to the
Partnership's acquisition of Local Partnership Interests*
(10C) Form of Amended and Restated Agreement of Limited
Partnership of Local Partnerships*
(31.1) Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)
(32.1) Certification Pursuant to Rule 13a-14(b) or Rule 15d-14(b)
and Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350).
*Incorporated herein as an exhibit by reference to exhibits filed with
Pre-Effective Amendment No. 1 to the Independence Tax Credit Plus L.P.
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.
15
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.
---------------------------------
(Registrant)
By: RELATED INDEPENDENCE
ASSOCIATES L.P., General Partner
By: RELATED INDEPENDENCE
ASSOCIATES INC., General Partner
Date: August 3, 2004
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
Director and President
(Chief Executive Officer and
Chief Financial Officer)
Date: August 3, 2004
By: /s/ Glenn F. Hopps
------------------
Glenn F. Hopps,
Treasurer
(Chief Accounting Officer)
Exhibit 31.1
CERTIFICATION PURSUANT TO RULE
13a-14(a) OR RULE 15d-14(a)
I, Alan P. Hirmes, Chief Executive Officer and Chief Financial Officer of
Related Independence Associates Inc. a general partner of Related Independence
Associates L.P. the General Partner of Independence Tax Credit Plus L.P. (the
"Partnership"), hereby certify that:
1) I have reviewed this quarterly report on Form 10-Q for the period
ending June 30, 2004 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-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in
Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Partnership and I
have:
a) designed such disclosure controls and procedures or caused such
disclosure controls and procedures to be designed under my supervision,
to ensure that material information relating to the Partnership
including its consolidated subsidiaries, is made known to me by others
within those entities, particularly during the period in which this
quarterly report was being prepared;
b) designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under my
supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles; and
c) evaluated the effectiveness of the Partnership's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures as of the end
of the period covered by this quarterly report based on such
evaluation; and
d) disclosed in this quarterly report any change in the Partnership's
internal control over financial reporting that occurred during the
period ending June 30, 2004 that has materially affected, or is
reasonably likely to materially affect, the Partnership's internal
control over financial reporting; and
5) I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the Partnership's auditors and to
the boards of directors of the General Partners:
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to adversely affect the Partnership's ability to
record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Partnership's
internal control over financial reporting.
Date: August 3, 2004
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Chief Executive Officer and
Chief Financial Officer
Exhibit 32.1
CERTIFICATION PURSUANT
TO RULE 13a-14(b) OR RULE 15d-14(b)
AND SECTION 1350 OF TITLE 18
OF THE UNITED STATES CODE (18 U.S.C. 1350)
In connection with the Quarterly Report of Independence Tax Credit Plus L.P.
(the "Partnership") on Form 10-Q for the period ending June 30, 2004 as filed
with the Securities and Exchange Commission ("SEC") on the date hereof (the
"Report"), I, Alan P. Hirmes, Chief Executive Officer and Chief Financial
Officer of Related Independence Associates Inc. a 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.
A signed original of this written statement required by Section 906 has been
provided to the Partnership and will be retained by the Partnership and
furnished to the SEC or its staff upon request.
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Chief Executive Officer
and Chief Financial Officer
August 3, 2004