-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E9bRfIcJDfNPUk1YQrqHFmanxJIEDiuZQPki+11TmEN3PQN+9ELriQsWkMSO4pM/ oQrVPpbyDBybxhpX3D3jOA== 0000810663-96-000007.txt : 19961210 0000810663-96-000007.hdr.sgml : 19961210 ACCESSION NUMBER: 0000810663-96-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L P V CENTRAL INDEX KEY: 0000852953 STANDARD INDUSTRIAL CLASSIFICATION: 6513 IRS NUMBER: 043054464 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19706 FILM NUMBER: 96660502 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10-Q 1 QH5 Q2 November 13, 1996 Securities and Exchange Commission Filer Support, Edgar Operation Center, Stop 0-7 6432 General Green Way Alexandria, VA 22312 Re: Boston Financial Qualified Housing Tax Credits L.P. V Report on Form 10-Q Edgar for Quarter Ended September 30, 1996 File No. 0-19706 Dear Sir/Madam: Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one copy of subject report. Very truly yours, /s/Marie D. Reynolds Marie D. Reynolds Assistant Controller QH5-10Q2.DOC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1996 ----------------------------------------------- OR [ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to For Quarter Ended September 30, 1996 Commission file number 0-19706 ---------------------------------- Boston Financial Qualified Housing Tax Credits L.P. V (Exact name of registrant as specified in its charter) Massachusetts 04-3054464 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 101 Arch Street, Boston, MA 02110-1106 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (617) 439-3911 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 . BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) TABLE OF CONTENTS PART I - FINANCIAL INFORMATION Page No. - - ------------------------------ Item 1. Financial Statements Balance Sheets - September 30, 1996 (Unaudited) and March 31, 1996 1 Statements of Operations (Unaudited) - For the Three and Six Months Ended September 30, 1996 and 1995 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Six Months Ended September 30, 1996 3 Statements of Cash Flows (Unaudited) - For the Six Months Ended September 30, 1996 and 1995 4 Notes to Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II - OTHER INFORMATION Items 1-6 10 SIGNATURE 11 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) BALANCE SHEETS
September 30, March 31, 1996 1996 (Unaudited) Assets Current assets: Cash and cash equivalents $ 321,906 $ 243,644 Other current assets 23,355 25,408 ---------------- --------------- Total current assets 345,261 269,052 Investments in Local Limited Partnerships (Note 2) 32,663,481 34,878,562 Marketable securities, at fair value (Note 1) 2,903,812 3,099,255 ---------------- --------------- Total Assets $ 35,912,554 $ 38,246,869 ================ =============== Liabilities and Partners' Equity (Deficiency) Current liabilities: Accounts payable to affiliates $ 66,735 $ 71,527 Accounts payable and accrued expenses 55,319 67,883 ---------------- --------------- Total current liabilities 122,054 139,410 ---------------- --------------- Other liabilities: Deferred revenue (Note 3) 179,318 179,318 ---------------- --------------- General, Initial and Investor Limited Partners' Equity 35,646,539 37,953,300 Net unrealized losses on marketable securities (35,357) (25,159) ---------------- --------------- Total Partners' Equity 35,611,182 37,928,141 ---------------- --------------- Total Liabilities and Partners' Equity $ 35,912,554 $ 38,246,869 ================ ===============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) STATEMENTS OF OPERATIONS (Unaudited) For the Three and Six Months Ended September 30, 1996 and 1995
Three Months Ended Six Months Ended September 30, September 30, September 30, September 30, 1996 1995 1996 1995 ------------- ------------- ------------ --------- Revenue: Investment $ 48,440 $ 47,161 $ 96,834 $ 87,052 Other 100 2,600 8,926 30,750 ------------ ------------ ------------ ------------ Total Revenue 48,540 49,761 105,760 117,802 ------------ ------------ ------------ ------------ Expenses: Asset management fees, related party 57,286 55,889 114,572 111,778 General and administrative (includes reimbursements to an affiliate in the amounts of $61,237 and $45,054 in 1996 and 1995, respectively) 60,184 57,309 129,364 111,109 Amortization 7,551 7,633 15,180 15,264 ------------ ------------ ------------ ------------ Total Expenses 125,021 120,831 259,116 238,151 ------------ ------------ ------------ ------------ Loss before equity in losses of Local Limited Partnerships (76,481) (71,070) (153,356) (120,349) Equity in losses of Local Limited Partnerships (1,121,964) (1,071,164) (2,153,405) (2,153,792) ------------ ------------ ------------ ------------ Net Loss $ (1,198,445) $ (1,142,234) $ (2,306,761) $ (2,274,141) ============ ============ ============ ============ Net Loss allocated: To General Partners $ (11,985) $ (11,422) $ (23,068) $ (22,741) To Limited Partners (1,186,460) (1,130,812) (2,283,693) (2,251,400) ------------ ------------ ------------ ------------ $ (1,198,445) $ (1,142,234) $ (2,306,761) $ (2,274,141) ============ ============ ============ ============ Net Loss per Limited Partnership Unit (68,929 Units) $ (17.21) $ (16.40) $ (33.13) $ (32.66) ============ ============ ============ =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY) (Unaudited) For the Six Months Ended September 30, 1996
Initial Investor Net General Limited Limited Unrealized Partners Partners Partners Losses Total Balance at March 31, 1996 $ (212,573) $5,000 $ 38,160,873 $ (25,159) $ 37,928,141 Net change in net unrealized losses on marketable securities available for sale - - - (10,198) (10,198) Net Loss (23,068) - (2,283,693) - (2,306,761) ----------- ------ ------------ --------- ------------- Balance at September 30, 1996 $ (235,641) $5,000 $ 35,877,180 $ (35,357) $ 35,611,182 =========== ====== ============ ========= =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended September 30, 1996 and 1995
1996 1995 --------------- --------- Net cash used for operating activities $ (171,901) $ (132,113) ------------ ----------- Cash flows from investing activities: Purchases of marketable securities (455,427) (1,955,138) Proceeds from sales and maturities of marketable securities 659,094 1,976,892 Cash distributions received from Local Limited Partnerships 46,496 52,296 ------------ ----------- Net cash provided by investing activities 250,163 74,050 ------------ ----------- Net increase (decrease) in cash and cash equivalents 78,262 (58,063) Cash and cash equivalents, beginning of period 243,644 72,535 ------------ ----------- Cash and cash equivalents, end of period $ 321,906 $ 14,472 ============ =========== The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Financial Statements (Unaudited) The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included with the Partnership's 10-K for the year ended March 31, 1996. In the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Partnership's financial position and results of operations. The results of operations for the periods may not be indicative of the results to be expected for the year. 1. Marketable Securities A summary of marketable securities is as follows:
Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Debt securities issued by the US Treasury $ 2,646,647 $ 1,594 $ (39,153) $ 2,609,088 Mortgage backed securities 275,419 3,160 (685) 277,894 Other debt securities 17,103 - (273) 16,830 ----------- -------- --------- ----------- Marketable securities at September 30, 1996 $ 2,939,169 $ 4,754 $ (40,111) $ 2,903,812 =========== ======== ========= =========== Debt securities issued by the US Treasury and other US government corporations and agencies $ 2,941,472 $ 3,462 $ (31,743) $ 2,913,191 Mortgage backed securities 139,230 3,428 - 142,658 Other debt securities 43,712 - (306) 43,406 ----------- -------- --------- ----------- Marketable securities at March 31, 1996 $ 3,124,414 $ 6,890 $ (32,049) $ 3,099,255 =========== ======== ========= ===========
The contractual maturities at September 30, 1996 are as follows:
Fair Cost Value Due in one year or less $ 397,052 $ 396,413 Due in one year to five years 2,266,698 2,229,505 Mortgage backed securities 275,419 277,894 ----------- ----------- $ 2,939,169 $ 2,903,812 =========== ===========
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Financial Statements (continued) (Unaudited) 1. Marketable Securities (continued) Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations. Proceeds from sales and maturities were approximately $659,000 and $1,977,000 for the six months ended September 30, 1996 and 1995. Included in investment income are gross gains of $19,307 and $8,601 and gross losses of $885 and $12,099 which were realized on these sales during the six months ended September 30, 1996 and 1995, respectively. 2. Investments in Local Limited Partnerships The Partnership has acquired interests in twenty-seven Local Limited Partnerships which own and operate multi-family housing complexes, most of which are government-assisted. The Partnership, as Investor Limited Partner pursuant to the various Local Limited Partnership Agreements, has generally acquired a 99% interest in the profits, losses, tax credits, and cash flows from operations of each of the Local Limited Partnerships, with the exception of Strathern Park/Lorne Park Apartments and Huguenot Park which are 95% and 88.6%, respectively. Upon dissolution, proceeds will be distributed according to each respective partnership agreement. The following is a summary of Investments in Local Limited Partnerships at September 30, 1996 (Unaudited):
Capital contributions paid to Local Limited Partnerships and purchase price paid to withdrawing partners of Local Limited Partnerships $ 55,491,515 Cumulative equity in losses of Local Limited Partnerships (23,250,473) Cumulative cash distributions received from Local Limited Partnerships (504,729) Investments in Local Limited Partnerships before adjustment 31,736,313 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,068,278 Accumulated amortization of acquisition fees and expenses (141,110) Investments in Local Limited Partnerships $ 32,663,481 =============
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Financial Statements (continued) (Unaudited) 2. Investments in Local Limited Partnerships (continued) Summarized financial information from the combined financial statements of all Local Limited Partnerships in which the Partnership has invested is as follows: Summarized Balance Sheets - as of June 30, 1996 (Unaudited)
Assets: Investment property, net $ 121,712,415 Current assets 3,989,538 Other assets 5,316,107 -------------- Total Assets $ 131,018,060 ============== Liabilities and Partners' Equity: Current liabilities $ 6,678,414 Long-term debt 86,616,253 Other liabilities 1,109,908 -------------- Total Liabilities 94,404,575 Partners' Equity 36,613,485 -------------- Total Liabilities and Partners' Equity $ 131,018,060 ============== Summarized Income Statements - for the six months ended June 30, 1996 (Unaudited) Rental and other income: $ 7,224,658 -------------- Expenses: Operating 3,577,039 Interest 3,287,485 Depreciation and amortization 2,564,894 -------------- Total Expenses 9,429,418 Net Loss $ (2,204,760) ============== Partnership's share of Net Loss $ (2,157,258) ============== Other Partners' share of Net Loss $ (47,502) ==============
For the six months ended September 30, 1996, the Partnership has not recognized $3,853 of equity in losses relating to one Local Limited Partnership where cumulative equity in losses and cumulative distributions exceeded its total investment. 3. Deferred Revenue Under the terms of a Local Limited Partnership Agreement, the Partnership was required to fund a Supplemental Reserve in the amount of $196,000. The original purpose of the contribution was to fund the development expenses of a Local Limited Partnership. Since the funds were not needed, the Local Limited Partnership Agreement allows that the established Supplemental Reserve along with the interest earned, are available to pay the Partnership its annual priority distribution. As of September 30, 1996, $22,000 has been released to the Partnership. The balance of the Supplemental Reserve is included in cash and cash equivalents. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Financial Statements (continued) (Unaudited) 4. Transactions with Affiliates Lansing Management Company ("LMC"), an affiliate of the Managing General Partner is the management agent for three Local Limited Partnerships in which the Partnership has invested, St. Croix II, Limited Partnership ("Carib Villas II"), Christiansted Limited Partnership ("Carib Villas III") and Historic New Center Limited Partnership ("Historic New Center"). Included in operating expenses of the summarized income statements in Note 2 to the Financial Statements is $19,228 of fees earned by LMC for the six months ended June 30, 1996. Boston Financial Property Management ("BFPM") is the management agent for Woodlake Hills, a Local Limited Partnership in which the Partnership has invested. Included in operating expenses of the summarized income statements in Note 2 to the Financial Statements is $22,358 of fees earned by BFPM for the six months ended June 30, 1996. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources At September 30, 1996, the Partnership had cash and cash equivalents of $321,906 as compared with $243,644 at March 31, 1996. The increase is attributable to proceeds from sales and maturities of marketable securities in excess of purchases of marketable securities and cash distributions received from Local Limited Partnerships. These increases are offset by net cash used for operations. Approximately $2,751,000 of marketable securities has been designated as reserves by the Managing General Partner. The reserves were established to be used for working capital of the Partnership and contingencies related to the ownership of Local Limited Partnership interests. Management believes that the investment income earned on the reserves, along with cash distributions received from Local Limited Partnerships, to the extent available, will be sufficient to fund the Partnership's ongoing operations and any contingencies that may arise. Reserves may be used to fund Partnership operating deficits, if the Managing General Partner deems funding appropriate. Since the Partnership invests as a limited partner, the Partnership has no contractual duty to provide additional funds to Local Limited Partnerships beyond its specified investment. Thus, at September 30, 1996 , the Partnership had no contractual or other obligation to any Local Limited Partnership which had not been paid or provided for. In the event a Local Limited Partnership encounters operating difficulties requiring additional funds, the Partnership might deem it in its best interest to provide such funds, voluntarily, in order to protect its investment. No such event has occurred to date. Cash Distributions No cash distributions were made during the six months ended September 30, 1996. Results of Operations The Partnership's results of operations for the three and six months ended September 30, 1996 resulted in a net loss of $1,198,445 and $2,306,761 as compared to net losses of $1,142,234 and $2,274,141 for the same period in 1995. These results reflect the Partnership's stabilized operations during these comparable periods. Property Discussions Limited Partnership interests have been acquired in twenty-seven Local Limited Partnerships which are located in ten states and the virgin islands. Five of the properties, totaling 612 units, are existing and underwent rehabilitation; Twenty-two properties, consisting of 1,762 units, are new construction. All properties have completed construction or rehabilitation and initial lease-up. All but one of the Local Limited Partnerships are operating satisfactorily. Historic New Center, a property located in Detroit, Michigan, had previously been operating at a deficit as occupancy had been affected by the downturn in the local economy. In August 1994, an affiliate of the Managing General Partner assumed property management responsibilities. The property has recently reached breakeven operations and continues to focus on stabilizing the tenancy and collecting delinquent rental payments. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) PART II OTHER INFORMATION Items 1-5 Not applicable Item 6 Exhibits and reports on Form 8-K (a) Exhibits - None (b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended September 30, 1996. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) SIGNATURE 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. DATED: November 13, 1996 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V By: Arch Street V, Inc., its Managing General Partner /s/Georgia Murray Georgia Murray A Managing Director, Treasurer and Chief Financial Officer EX-27 2 QH5 FINANCIAL DATA SCHEDULE FOR Q2 FY 97
5 6-MOS MAR-31-1997 SEP-30-1996 321,906 2,903,812 000 000 000 23,355 000 000 35,912,554 122,054 000 000 000 000 35,611,182 35,912,554 000 105,760 000 000 259,116 000 000 000 000 000 000 000 000 (2,306,761) (33.13) 000 Included in Current Assets: Prepaid insurance $7,738 and Interest receivable $15,617 Included in Total Assets: Investments in Local Limited Partnerships $32,663,481 Included in Current Liabilities: Accounts payable to affiliates $66,735 and accounts payable and accrued expenses $55,319. Included in Total Liabilities and Equity: Deferred revenue $179,318 Total Revenue includes: Investment $96,834, Other $8,926 Included in Other Expenses: General and Administrative $129,364, Asset management fees $114,572, Amortization $15,180. Net Loss includes: Equity in losses of Local Limited Partnerships of $2,153,405
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