-----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, PWN2eJBGnxoxfzO98dfech30WIlMUJ6gcB18+ywwJTjV73+RSds22+wedUPMp6ib bsxBw1bfK4AIcTN/QYkwOw== 0000810663-97-000045.txt : 19970815 0000810663-97-000045.hdr.sgml : 19970815 ACCESSION NUMBER: 0000810663-97-000045 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L P V CENTRAL INDEX KEY: 0000852953 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [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: 97660776 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10-Q 1 QH5 Q1 August 13, 1997 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 for Quarter Ended June 30, 1997 File No. 0-19706 Gentlemen: Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of 1934, there is filed herewith one one copy of the subject report. Very truly yours, /s/Veronica J. Curioso Veronica J. Curioso Assistant Controller QH5-Q1.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 June 30, 1997 ---------------------------- 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 June 30, 1997 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 Combined Balance Sheets - June 30, 1997 (Unaudited) and March 31, 1997 1 Combined Statements of Operations (Unaudited) - For the Three Months Ended June 30, 1997 and 1996 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Three Months Ended June 30, 1997 3 Combined Statements of Cash Flows (Unaudited) - For the Three Months Ended June 30, 1997 and 1996 4 Notes to Combined Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II - OTHER INFORMATION Items 1-6 12 SIGNATURE 13 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED BALANCE SHEETS
June 30, March 31, 1997 1997 (Unaudited) Assets (Note 1) Cash and cash equivalents $ 756,660 $ 449,567 Mortgagee escrow deposits 4,766 - Tenant security deposit escrow 2,886 - Investments in Local Limited Partnerships (Note 2) 29,249,060 30,531,768 Marketable securities, at fair value 2,644,840 2,840,127 Rental property at cost, net of accumulated depreciation (Note 3) 970,693 - Replacement reserve escrow 2,242 - Other assets 49,758 50,033 -------------- -------------- Total Assets $ 33,680,905 $ 33,871,495 ============== ============== Liabilities and Partners' Equity Accounts payable to affiliates $ 143,149 $ 88,227 Accounts payable and accrued expenses 55,034 35,692 Mortgage notes payable (Note 4) 712,774 - Tenant security deposits payable 2,886 - Deferred revenue 175,133 174,357 -------------- -------------- Total liabilities 1,088,976 298,276 -------------- -------------- Minority interest in Local Limited Partnership 118,962 - -------------- -------------- General, Initial and Investor Limited Partners' Equity 32,498,387 33,615,539 Net unrealized losses on marketable securities (25,420) (42,320) -------------- -------------- Total Partners' Equity 32,472,967 33,573,219 -------------- -------------- Total Liabilities and Partners' Equity $ 33,680,905 $ 33,871,495 ============== ==============
The accompanying notes are an integral part of these combined financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended June 30, 1997 and 1996
1997 1996 --------------- --------- (Note 1) Revenue: Rental $ 9,801 $ - Investment 44,428 48,394 Other 1,943 8,826 ------------ ------------ Total Revenue 56,172 57,220 ------------ ------------ Expenses: General and administrative (includes reimbursements to an affiliate in the amounts of $40,069 and $32,885, respectively) 68,165 69,180 Asset management fees, related party 59,177 57,286 Rental operations, exclusive of depreciation 1,975 - Property Management fee, related party 590 - Interest 6,837 - Depreciation 3,530 - Amortization 7,323 7,629 ------------ ------------ Total Expenses 147,597 134,095 ------------ ------------ Loss before equity in losses of Local Limited Partnerships (91,425) (76,875) Minority interest in losses of Local Limited Partnership 31 - Equity in losses of Local Limited Partnerships (1,025,758) (1,031,441) ------------ ------------ Net Loss $ (1,117,152) $ (1,108,316) ============ ============ Net Loss allocated: To General Partners $ (11,172) $ (11,083) To Limited Partners (1,105,980) (1,097,233) ------------ ------------ $ (1,117,152) $ (1,108,316) ============ ============ Net Loss per Limited Partnership Unit (68,929 Units) $ (16.05) $ (15.92) =========== ============
The accompanying notes are an integral part of these combined financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY) (Unaudited) For the Three Months Ended June 30, 1997
Initial Investor Net General Limited Limited Unrealized Partners Partners Partners Losses Total Balance at March 31, 1997 $ (255,951) $5,000 $ 33,866,490 $ (42,320) $33,573,219 Net change in net unrealized losses on marketable securities available for sale - - - 16,900 16,900 Net Loss (11,172) - (1,105,980) - (1,117,152) ---------- ------ ------------ --------- ------------- Balance at June 30, 1997 $ (267,123) $5,000 $ 32,760,510 $ (25,420) $32,472,967 ========== ====== ============ ========= ===========
The accompanying notes are an integral part of these combined financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended June 30, 1997 and 1996
1997 1996 ----------- -------- (Note 1) Net cash used for operating activities $ (35,895) $ (81,865) --------- ---------- Cash flows from investing activities: Purchases of marketable securities (396,596) (455,427) Proceeds from sales and maturities of marketable securities 606,512 613,175 Cash distributions received from Local Limited Partnerships 132,468 30,259 --------- ---------- Net cash provided by investing activities 342,384 188,007 --------- ---------- Cash flows from financing activities: Payment of mortgage principal (333) - --------- ---------- Net cash used for financing activities (333) - --------- ---------- Net increase in cash and cash equivalents 306,156 106,142 Cash and cash equivalents, beginning 450,504 243,644 --------- ---------- Cash and cash equivalents, ending $ 756,660 $ 349,786 ========= ==========
The accompanying notes are an integral part of these combined financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to the Combined 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, 1997. 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. Significant Accounting Policies Basis of Presentation and Combination On March 1, 1997, an affiliate of the Partnership's Managing General Partner, Boston Financial GP1-LLC, became the Local General Partner of Burbank Limited Partnership I ("Burbank"), a Local Limited Partnership in which the Partnership has invested. Since the Local General Partner of Burbank is an affiliate of the Partnership, these combined financial statements include all activity of Burbank beginning on March 1, 1997. All significant intercompany balances and transactions have been eliminated. Rental Property Rental property of Burbank is recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Rental Income Rental income, principally from short-term leases on apartment units, is recognized as income under the operating method as the rentals become due. 2. Investments in Local Limited Partnerships The Partnership has acquired interests in twenty-six Local Limited Partnerships, excluding Burbank, 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. Upon dissolution, proceeds will be distributed according to each respective partnership agreement. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to the Combined Financial Statements (continued) (Unaudited) 2. Investments in Local Limited Partnerships (continued) The following is a summary of Investments in Local Limited Partnerships, excluding Burbank, at June 30, 1997:
Capital contributions paid to Local Limited Partnerships and purchase price paid to withdrawing partners of Local Limited Partnerships $ 55,219,511 Cumulative equity in losses of Local Limited Partnerships (excluding cumulative unrecognized losses of $20,617) (25,983,867) Cumulative cash distributions received from Local Limited Partnerships (863,631) Investments in Local Limited Partnerships before adjustment 28,372,013 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,039,751 Accumulated amortization of acquisition fees and expenses (162,704) Investments in Local Limited Partnerships $ 29,249,060 =============
The Partnership's share of the net losses of the Local Limited Partnership's for the three months ended June 30, 1997 is $1,044,232. For the three months ended June 30, 1997, the Partnership has not recognized $18,474 of equity in losses relating to two Local Limited Partnerships where cumulative equity in losses and cumulative distributions from Local Limited Partnerships exceeded its total investments in these Local Limited Partnerships. 3. Rental Property Real estate and personal property belonging to Burbank are recorded at cost, the components of which are as follows at March 31, 1997:
Buildings and Improvements $ 1,164,939 Land 42,000 ----------- 1,206,939 Less: accumulated depreciation 236,246 ----------- Total $ 970,693 ===========
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to the Combined Financial Statements (continued) (Unaudited) 4. Mortgage Notes Payable Long-term debt for Burbank consists of a primary mortgage note for $750,000 amortized over a 30 year payment schedule, at a rate of 11.5%. Monthly payments of principal and interest began in September, 1991 for $7,427, with a ballon payment due in year 2005. The mortgage note payable as of March 31, 1997, is $712,774. On February 26, 1994, the Mortgage Holder reduced the interest rate to 8% for a period of two years. The monthly payment was changed to $5,564 plus a tax escrow for $2,000. The prior monthly payment amount and interest rate was reinstated at February 26, 1996. Approximate principal payments to be made on the mortgage note for each of the next five years and thereafter are as follows: Year ended December 31: 1997 $ 4,672 1998 5,240 1999 5,875 2000 6,587 2001 7,385 Thereafter 683,015 ------------- $ 712,774 It is not practical to estimate the fair value of this mortgage because programs with similar characteristics are not currently available. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Combined Financial Statements (continued) (Unaudited) 5. Supplemental Combining Schedules Balance Sheets
Boston Financial Qualified Housing Wheeler Tax Credits House L.P V (A) (Burbank) (B) Eliminations Combined (A) Assets Cash and cash equivalents $ 756,647 $ 13 $ - $ 756,660 Mortgagee escrow deposits - 4,766 - 4,766 Tenant security deposit escrow - 2,886 - 2,886 Investments in Local Limited Partnerships, net 29,363,159 - (114,099) 29,249,060 Marketable securities, at fair value 2,644,840 - - 2,644,840 Rental property at cost, net of accumulated depreciation - 970,693 - 970,693 Replacement reserve escrow - 2,242 - 2,242 Other assets 49,758 - - 49,758 ------------ --------------- ------------- ------------ Total Assets $ 32,814,404 $ 980,600 $ (114,099) $ 33,680,905 ============ =============== ============= ============ Liabilities and Partners' Equity (Deficiency) Accounts payable to affiliates $ 127,104 $ 16,045 $ - $ 143,149 Accounts payable and accrued expenses 39,200 15,834 - 55,034 Mortgage notes payable - 712,774 - 712,774 Tenant security deposits payable - 2,886 - 2,886 Deferred revenue 175,133 - - 175,133 ------------ --------------- ------------- ------------ Total Liabilities 341,437 747,539 - 1,088,976 ------------ --------------- ------------- ------------ Minority interest in Local Limited Partnership - - 118,962 118,962 ------------ --------------- ------------- ------------ General, Initial, and Investor Limited Partners' Equity 32,498,387 233,061 (233,061) 32,498,387 Net unrealized losses on marketable securities (25,420) - - (25,420) ------------ --------------- ------------- ------------ Total Partners' Equity 32,472,967 233,061 (233,061) 32,472,967 ------------ --------------- ------------- ------------ Total Liabilities and Partners' Equity $ 32,814,404 $ 980,600 $ _(114,099) $ 33,680,905 ============ =============== ============= ============
(A) As of June 30, 1997. (B) As of March 31, 1997. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Combined Financial Statements (continued) (Unaudited) 5. Supplemental Combining Schedules (continued) Statements of Operations
Boston Financial Qualified Housing Wheeler Tax Credits House L.P. V (A) (Burbank) (B) Eliminations Combined (A) Revenue: Rental $ - $ 9,801 $ - $ 9,801 Investment 44,428 - - 44,428 Other 1,903 40 - 1,943 --------------- --------------- ------------- ------------ Total Revenue 46,331 9,841 - 56,172 --------------- --------------- ------------- ------------ Expenses: General and administrative 68,165 - - 68,165 Asset management fees, related party 59,177 - - 59,177 Rental operations, exclusive of depreciation - 1,975 - 1,975 Property management fee, related party - 590 - 590 Interest - 6,837 - 6,837 Depreciation - 3,530 - 3,530 Amortization 7,323 - - 7,323 --------------- --------------- ------------- ------------ Total Expenses 134,665 12,932 - 147,597 --------------- --------------- ------------- ------------ Loss before equity in losses of Local Limited Partnerships (88,334) (3,091) - (91,425) Minority interest in losses of Local Limited Partnership - - 31 31 Equity in losses of Local Limited Partnerships (1,028,818) - 3,060 (1,025,758) --------------- --------------- ------------- ------------ Net Loss $ (1,117,152) $ (3,091) $ 3,091 $ (1,117,152) =============== =============== ============= ============
(A) For the three months ended June 30, 1997. (B) For the three months ended March 31, 1997. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to Combined Financial Statements (continued) (Unaudited) 5. Supplemental Combining Schedules (continued) Statements of Cash Flows
Boston Financial Qualified Housing Wheeler Tax Credits House L.P. V (A) (Burbank) (B) Eliminations Combined (A) Net cash used for operating activities $ (35,304) $ (591) $ - $ (35,895) ----------- ------------ ------------ ------------ Cash flows from investing activities: Purchases of marketable securities (396,596) - - (396,596) Proceeds from sales and maturities of marketable securities 606,512 - - 606,512 Cash distributions received from Local Limited Partnerships 132,468 - - 132,468 ----------- ------------ ------------ ------------ Net cash provided by investing activities 342,384 - - 342,384 ----------- ------------ ------------ ------------ Cash flows from financing activities: Payment of mortgage principal - (333) - (333) ----------- ------------ ------------ ------------ Net cash used for financing activities - (333) - (333) ----------- ------------ ------------ ------------ Net increase (decrease) in cash and cash equivalents 307,080 (924) - 306,156 Cash and cash equivalents, beginning 449,567 937 - 450,504 ----------- ------------ ------------ ------------ Cash and cash equivalents, ending $ 756,647 $ 13 $ - $ 756,660 =========== ============ ============ ============
(A) For the three months ended June 30, 1997. (B) For the three months ended March 31, 1997. 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 June 30, 1997, the Partnership, including the combined entity, had cash and cash equivalents of $756,660, compared with $449,567 at March 31, 1997. The increase is attributable to proceeds from sales and maturities of marketable securities and cash distributions received from Local Limited Partnerships, partially offset by net cash used for operations and purchases of marketable securities. Approximately $2,735,000 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 June 30, 1997 , 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 interests to provide such funds, voluntarily, in order to protect its investment. Cash Distributions No cash distributions were made during the three months ended June 30, 1997. Results of Operations The Partnership's results of operations for the three months ended June 30, 1997 resulted in a net loss of $1,117,152 as compared to a net loss of $1,108,316 for the same period in 1996. 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. The Local General Partner for Wheeler House in Nashua, New Hampshire was replaced by an affiliate of the Managing General Partner with the approval of the lender after the Local General Partner filed for protection under the provisions of the Chapter 7 bankruptcy laws. The Managing General Partner is also seeking to replace the Local General Partner as management agent of the property as well. The Local General Partner's bankruptcy status has not affected the property. Operations remain stable at 100% occupancy. 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 June 30, 1997. 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: August 13, 1997 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V By: Arch Street V, Inc., its Managing General Partner /s/Vincent J. Costantini Vincent J. Costantini Treasurer and Chief Financial Officer EX-27 2 QH5 FINANCIAL DATA SCHEDULE FOR Q1 FY 98
5 3-MOS MAR-31-1998 JUN-30-1997 756,660 2,644,840 000 000 000 000 000 000 33,680,905 000 000 000 000 000 32,472,967 33,680,905 000 56,172 000 000 140,760 000 6,837 000 000 000 000 000 000 (1,117,152) (16.05) 000 Included in total assets is mortgagee escrow deposits of $4,766, tenant security deposit escrow of $2,886, Investments in Local Limited Partnerships of $29,249,060, rental property of $970,693, a replacement reserve escrow of $2,242 and other assets of $49,758. Included in Total Liability and Equity is accounts payable to affiliates of $143,149, accounts payable and accrued expenses of $55,034, mortgage notes payable of $712,774, tenant security deposits payable of $2,886, deferred revenue of $175,133 and minority interest in Local Limited Partnership of $118,962 Total revenue includes investment of $44,428, rental of $9,801 and other of $1,943. Included in Other Expenses is general and administrative of $68,165, asset management fees $59,177, rental operations of $1,975, property management fee of $590, depreciation of $3,530 and amortization $7,323. Net loss includes minority interest in losses of Local Limited Partnerships of $31 and equity in losses of Local Limited Partnerships of $1,025,758.
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