-----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, OQNWyHLj9MCmPtk7cjNmHDhf78lgQ6yxJBx1o4GOdwfh4LfpYMDWJmJ5tewqN/p4 Id7pSusPAQd58Bnhn3RfpQ== 0000810663-98-000074.txt : 19981110 0000810663-98-000074.hdr.sgml : 19981110 ACCESSION NUMBER: 0000810663-98-000074 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981109 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: SEC FILE NUMBER: 000-19706 FILM NUMBER: 98740515 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10-Q 1 QH5 9/98 10-Q November 9, 1998 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 September 30, 1998 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 copy of the subject report. Very truly yours, /s/Stephen Guilmette Stephen Guilmette Assistant Controller QH5-Q1.DOC 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 September 30, 1998 ----------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------------ --------------------- 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 - September 30, 1998 (Unaudited) and March 31, 1998 1 Combined Statements of Operations (Unaudited) - For the Three and Six Months Ended September 30, 1998 and 1997 2 Combined Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Six Months Ended September 30, 1998 3 Combined Statements of Cash Flows (Unaudited) - For the Six Months Ended September 30, 1998 and 1997 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 13 SIGNATURE 14 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED BALANCE SHEETS September 30, 1998 and March 31, 1998
September 30, March 31, 1998 1998 (Unaudited) Assets Cash and cash equivalents $ 840,957 $ 239,932 Mortgagee escrow deposits 1,325 382 Tenant security deposit escrow 3,512 3,017 Investments in Local Limited Partnerships, net of reserve for valuation of $590,197 (Note 1) 22,948,281 24,775,767 Marketable securities, at fair value 2,637,557 3,064,717 Rental property at cost, net of accumulated depreciation 784,878 778,924 Replacement reserve escrow 3,421 2,888 Other assets 35,609 40,041 -------------- ------------- Total Assets $ 27,255,540 $ 28,905,668 ============== ============= Liabilities and Partners' Equity Accounts payable to affiliates $ 8,746 $ 79,210 Accounts payable and accrued expenses 45,572 72,983 Mortgage note payable 707,165 707,659 Tenant security deposits payable 3,512 3,017 Deferred revenue 143,278 139,461 -------------- ------------- Total Liabilities 908,273 1,002,330 -------------- ------------- Minority interest in Local Limited Partnership 140,369 140,554 -------------- ------------- General, Initial and Investor Limited Partners' Equity 26,168,733 27,777,237 Net unrealized gains (losses) on marketable securities 38,165 (14,453) -------------- ------------- Total Partners' Equity 26,206,898 27,762,784 -------------- ------------- Total Liabilities and Partners' Equity $ 27,255,540 $ 28,905,668 ============== ============= 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 and Six Months Ended September 30, 1998 and 1997
Three Months Ended Six Months Ended September 30, September 30, September 30, September 30, 1998 1997 1998 1997 ------------- ------------- ------------- ------------- Revenue: Rental $ 28,988 $ 29,508 $ 58,463 $ 39,309 Investment 30,293 46,708 74,558 91,136 Other 71,084 1,828 73,548 3,771 ------------- ------------- ------------- ------------- Total Revenue 130,365 78,044 206,569 134,216 ------------- ------------- ------------- ------------- Expenses: General and administrative (includes reimbursements to an affiliate in the amounts of $51,090 and $66,880 in 1998 and 1997, respectively) 47,927 50,474 107,066 118,639 Asset management fees, related party 60,556 59,177 121,112 118,354 Rental operations, exclusive of depreciation 9,935 7,543 20,017 9,518 Property management fee, related party - 1,801 - 2,391 Interest 16,865 20,482 36,365 27,319 Depreciation 11,177 10,589 21,177 14,119 Amortization 5,193 7,322 12,409 14,645 ------------- ------------- ------------- ------------- Total Expenses 151,653 157,388 318,146 304,985 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (21,288) (79,344) (111,577) (170,769) Minority interest in losses of Local Limited Partnership 84 104 185 135 Equity in losses of Local Limited Partnerships (Note 1) (694,070) (866,762) (1,497,112) (1,892,520) ------------- ------------- ------------- ------------- Net Loss $ (715,274) $ (946,002) $ (1,608,504) $ (2,063,154) ============= ============= ============= ============= Net Loss allocated: To General Partners $ (7,153) $ (9,460) $ (16,085) $ (20,632) To Limited Partners (708,121) (936,542) (1,592,419) (2,042,522) ------------- ------------- ------------- ------------- $ (715,274) $ (946,002) $ (1,608,504) $ (2,063,154) ============= ============= ============= ============= Net Loss per Limited Partnership Unit (68,929 Units) $ (10.27) $ (13.58) $ (23.10) $ (29.63) ============= ============= ============= ============== 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 STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY) (Unaudited) For the Six Months Ended September 30, 1998
Net Initial Investor Unrealized General Limited Limited Gain Partners Partner Partners (Losses) Total Balance at March 31, 1998 $ (314,334) $ 5,000 $ 28,086,571 $ (14,453) $ 27,762,784 ----------- --------- ------------- ----------- ------------- Comprehensive Loss: Net Loss (16,085) - (1,592,419) - (1,608,504) Change in net unrealized losses on marketable securities available for sale - - - 52,618 52,618 ----------- --------- ------------- ----------- ------------- Comprehensive Loss (16,085) - (1,592,419) 52,618 (1,555,886) ----------- --------- ------------- ----------- ------------- Balance at September 30, 1998 $ (330,419) $ 5,000 $ 26,494,152 $ 38,165 $ 26,206,898 =========== ========= ============= ========== ============= 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 Six Months Ended September 30, 1998 and 1997
1998 1997 ---------- ----------- Net cash used for operating activities $ (185,993) $ (187,655) ---------- ----------- Cash flows from investing activities: Purchases of marketable securities (1,625,326) (1,693,360) Proceeds from sales and maturities of marketable securities 2,088,579 1,750,431 Cash distributions received from Local Limited Partnerships 323,584 208,309 Additions to rental property (325) - Cash received upon assumption of General Partner interest in a Combined Entity - 937 ---------- ----------- Net cash provided by investing activities 786,512 266,317 ---------- ----------- Cash flows from financing activities: General Partner Contribution - 16,045 Payment of mortgage principal (494) (1,360) Advance from affiliate 1,000 - ---------- ----------- Net cash provided by financing activities 506 14,685 ---------- ----------- Net increase in cash and cash equivalents 601,025 93,347 Cash and cash equivalents, beginning 239,932 449,567 ---------- ----------- Cash and cash equivalents, ending $ 840,957 $ 542,914 ========== =========== Supplemental disclosure: Cash paid for interest $ 36,365 $ 40,994 ========== =========== 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, 1998. 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. Certain amounts in prior year's financial statements have been reclassified herein to conform to the current year presentation. The General Partners have elected to report results of the Local Limited Partnerships on a 90 day lag basis, because the Local Limited Partnerships report their results on a calendar year basis. Accordingly, the financial information of the Local Limited Partnerships included in the accompanying combined financial statements is as of June 30, 1998. 1. 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 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 interests 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, excluding Burbank, at September 30, 1998:
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 $467,408) (31,200,257) Cumulative cash distributions received from Local Limited Partnerships (1,296,640) Investments in Local Limited Partnerships before adjustment 22,722,614 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,006,357 Accumulated amortization of acquisition fees and expenses (190,493) Investments in Local Limited Partnerships 23,538,478 Reserve for valuation of investment in Local Limited Partnership (590,197) -------------- $ 22,948,281
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued) (Unaudited) 1. Investments in Local Limited Partnerships (continued) The Partnership's share of net losses of the Local Limited Partnerships, excluding Burbank, for the six months ended September 30, 1998 is $1,798,528. For the six months ended September 30, 1998, the Partnership has not recognized $333,841 of equity in losses relating to five Local Limited Partnerships where cumulative equity in losses and cumulative distributions from Local Limited Partnerships exceeded its total investments in these Local Limited Partnerships. 2. Effect of Recently Issued Accounting Standard In June, 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income." The Statement, which is effective for fiscal years beginning after December 15, 1997, requires that the Partnership display an amount representing total comprehensive income for the period in its financial statements. The Partnership adopted the new standard effective April 1, 1998. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO COMBINED FINANCIAL STATEMENTS (continued) (Unaudited) 3. Supplemental Combining Schedules
Balance Sheets Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Assets Cash and cash equivalents $ 839,929 $ 1,028 $ - $ 840,957 Mortgagee escrow deposits - 1,325 - 1,325 Tenant security deposit escrow - 3,512 - 3,512 Investments in Local Limited Partnerships, net 22,885,643 - 62,638 22,948,281 Marketable securities, at fair value 2,637,557 - - 2,637,557 Rental property at cost, net of accumulated depreciation - 758,072 26,806 784,878 Replacement reserve escrow - 3,421 - 3,421 Accounts receivable 1,000 - (1,000) - Other assets 35,609 - - 35,609 ------------- ---------------- --------------- -------------- Total Assets $ 26,399,738 $ 767,358 $ 88,444 $ 27,255,540 ============= ================ =============== ============== Liabilities and Partners' Equity (Deficiency) Accounts payable to affiliates $ 8,746 $ 1,000 $ (1,000) $ 8,746 Accounts payable and accrued expenses 40,816 4,756 - 45,572 Mortgage note payable - 707,165 - 707,165 Tenant security deposits payable - 3,512 - 3,512 Deferred revenue 143,278 - - 143,278 ------------- ---------------- --------------- -------------- Total Liabilities 192,840 716,433 (1,000) 908,273 ------------- ---------------- --------------- -------------- Minority interest in Local Limited Partnership - - 140,369 140,369 ------------- ---------------- --------------- -------------- General, Initial and Investor Limited Partners' Equity 26,168,733 50,925 (50,925) 26,168,733 Net unrealized gains on marketable securities 38,165 - - 38,165 ------------- ---------------- --------------- -------------- Total Partners' Equity 26,206,898 50,925 (50,925) 26,206,898 ------------- ---------------- --------------- -------------- Total Liabilities and Partners' Equity $ 26,399,738 $ 767,358 $ 88,444 $ 27,255,540 ============= ================ =============== ==============
(A) As of September 30, 1998. (B) As of June 30, 1998. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO COMBINED FINANCIAL STATEMENTS (continued) (Unaudited) 3. Supplemental Combining Schedules (continued) Statements of Operations For the Three Months Ended September 30, 1998
Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Revenue: Rental $ - $ 28,988 $ - $ 28,988 Investment 30,293 - - 30,293 Other 70,579 505 - 71,084 ------------- ------------- ------------- ------------- Total Revenue 100,872 29,493 - 130,365 ------------- ------------- ------------- ------------- Expenses: General and administrative 47,927 - - 47,927 Asset management fees, related party 60,556 - - 60,556 Rental operations, exclusive of depreciation - 9,935 - 9,935 Interest - 16,865 - 16,865 Depreciation - 11,177 - 11,177 Amortization 5,193 - - 5,193 ------------- ------------- ------------- ------------- Total Expenses 113,676 37,977 - 151,653 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (12,804) (8,484) - (21,288) Minority interest in losses of Local Limited Partnership - - 84 84 Equity in losses of Local Limited Partnership (702,470) - 8,400 (694,070) ------------- ------------- ------------- ------------- Net Loss $ (715,274) $ (8,484) $ 8,484 $ 715,274 ============= ============= ============= =============
(A) For the three months ended September 30, 1998. (B) For the three months ended June 30, 1998. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued) (Unaudited) 4. Supplemental Combining Schedules (continued) Statements of Operations For the Six Months Ended September 30, 1998
Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Revenue: Rental $ - $ 58,463 $ - $ 58,463 Investment 74,558 - - 74,558 Other 72,994 554 - 73,548 ------------- ------------- ------------- ------------- Total Revenue 147,552 59,017 - 206,569 ------------- ------------- ------------- ------------- Expenses: General and administrative 107,066 - - 107,066 Asset management fees, related party 121,112 - - 121,112 Rental operations, exclusive of depreciation - 20,017 - 20,017 Interest - 36,365 - 36,365 Depreciation - 21,177 - 21,177 Amortization 12,409 - - 12,409 ------------- ------------- ------------- ------------- Total Expenses 240,587 77,559 - 318,146 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (93,035) (18,542) - (111,577) Minority interest in losses of Local Limited Partnership - - 185 185 Equity in losses of Local Limited Partnerships (1,515,469) - 18,357 (1,497,112) ------------- ------------- ------------- ------------- Net Loss $ (1,608,504) $ (18,542) $ 18,542 $ (1,608,504) ============= ============= ============= =============
(A) For the six months ended September 30, 1998. (B) For the six months ended June 30, 1998. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO COMBINED FINANCIAL STATEMENTS (continued) (Unaudited) 3. Supplemental Combining Schedules (continued)
Statements of Cash Flows Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Net cash provided by (used for) operating activities $ (186,616) $ 623 $ - $ (185,993) ------------- -------------- --------------- -------------- Cash flows from investing activities: Purchases of marketable securities (1,625,326) - - (1,625,326) Proceeds from sales and maturities of marketable securities 2,088,579 - - 2,088,579 Additions to rental property - (325) - (325) Cash distributions received from Local Limited Partnerships 323,584 - - 323,584 ------------- -------------- --------------- -------------- Net cash provided by (used for ) by investing activities 786,837 (325) - 786,512 ------------- -------------- --------------- -------------- Cash flows from financing activities: Payment of mortgage principal - (494) - (494) Advance from affiliate - 1,000 - 1,000 ------------- -------------- --------------- -------------- Net cash provided by financing activities - 506 - 506 ------------- -------------- --------------- -------------- Net increase in cash and cash equivalents 600,221 804 - 601,025 Cash and cash equivalents, beginning 239,708 224 - 239,932 ------------- -------------- --------------- -------------- Cash and cash equivalents, ending $ 839,929 $ 1,028 $ - $ 840,957 ============= ============== =============== ==============
(A) For the six months ended September 30, 1998. (B) For the six months ended June 30, 1998. 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, 1998, the Partnership (including Burbank) had cash and cash equivalents of $840,957, as compared with $239,932 at March 31, 1998. The increase is primarily attributable to proceeds from sales and maturities of marketable securities in excess of purchases of marketable securities. The increase is also attributable to distributions received from Local Limited Partnerships and is partially offset by cash used in the Partnership's operating activities. Approximately $2,731,000 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, will be sufficient to fund the Partnership's ongoing operations and any contingencies that may arise. Reserves may be used to fund Local Limited Partnership operating deficits if the Managing General Partner deems such 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, 1998, 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 may 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, 1998. Results of Operations The Partnership's results of operations for the three and six months ended September 30, 1998 resulted in net losses of $715,274 and $1,608,504, respectively, as compared to net losses of $946,002 and $2,063,154 for the same respective periods in 1997. The decrease in net loss is primarily attributable to a decrease in equity in losses of Local Limited Partnerships. Equity in losses of Local Limited Partnerships decreased due to losses not recognized by the Partnership for Local Limited Partnerships whose cumulative equity in losses and cumulative distributions exceeded its total investment in those partnerships. In addition, rental income, rental operations, interest and depreciation expenses increased due to a full six months of operations in 1998 as compared to four months of operations in 1997 for Burbank, since this entity was combined as of March 1, 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 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, were existing properties that underwent rehabilitation and twenty-two properties, consisting of 1,762 units, were new construction. Most of the twenty-seven Local Limited Partnerships have stabilized operations. The majority of these stabilized properties are operating at break-even or generating positive operating cash flow. Historic New Center in Detroit, Michigan is generating operating deficits due to low occupancy and collection problems. The Managing General Partner, Local General Partner and property manager are working to improve collections. In October 1998, a new site manager was hired to focus on marketing and collections as well as improvements to the appearance of the property. As previously reported, the Managing General Partner and the Local General Partner have been in negotiations with the lender to obtain debt service relief through a loan modification. In April 1998, an agreement was reached in order to restructure the mortgage with a reduction in debt service accomplished by a paydown of the mortgage and an interest rate reduction. This restructuring should enable the property to cover the debt service and provide capital for physical improvements. Occupancy continues to fluctuate due to volatility of the tenant profile. However, occupancy as of September 30, 1998 was 91%. The Managing General Partner will continue to closely monitor property operations. Westgate, located in North Dakota, has been experiencing declining occupancy. Occupancy as of September 30, 1998 was 82%. Affiliates of the Managing General Partner have been working with the Local General Partner who has raised some concerns over the long-term financial health of the property. In an effort to reduce possible future risk, the Managing General Partner consummated the transfer of 50% of the Partnership's interest in capital and profits in Westgate to the Local General Partner. The Managing General Partner has the right to transfer the Partnership's remaining interest to the Local General Partner any time after one year has elapsed. The Partnership will retain its full share of tax credits until such time as the remaining interest is put to the Local General Partner. In addition, the Local General Partner has the right to call the remaining interest after the tax credit period has expired. Impact of Year 2000 The Managing General Partner has assessed the Partnership's exposure to date sensitive computer software programs that may not be operative subsequent to 1999 and has executed a requisite course of action to minimize Year 2000 risk and ensure that neither significant costs nor disruption of normal business operations are encountered. However, due to the inherent uncertainty that all systems of outside vendors or other companies on which the Partnership and/or Local Limited Partnerships rely will be compliant, the Partnership remains susceptible to consequences of the Year 2000 issue. 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, 1998. 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 9, 1998 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V By: Arch Street V, Inc., its Managing General Partner /s/Randolph G. Hawthorne Randolph G. Hawthorne Managing Director, Vice President and Chief Operating Officer EX-27 2 QH5 FINANCIAL DATA SCHEDULE FOR Q2 FY 99
5 6-MOS MAR-31-1999 SEP-30-1998 840,957 2,637,557 000 000 000 000 784,878 000 27,255,540 000 000 000 000 000 26,206,898 27,255,540 000 206,569 000 000 281,781 000 36,365 000 000 000 000 000 000 (1,608,504) (23.10) 000 Included in Total assets is Mortgagee escrow deposits of $1,325, Tenant security deposit escrow of $3,512, Investments in Local Limited Partnerships, net of $22,948,281, Replacement reserve escrow of $3,421 and Other assets of $35,609. Included in Total liability and equity is Accounts payable to affiliates of $8,746, Accounts payable and accrued expenses of $45,572, Mortgage note payable of $707,165, Tenant security deposits payable of $3,512, Deferred revenue of $143,278 and Minority interest in Local Limited Partnership of $140,369. Total revenue includes Rental of $58,463, Investment of $74,558 and Other of $73,548. Included in Other expenses is General and administrative of $107,066, Asset management fees of $121,112, Rental operations, exclusive of depreciation of $20,017, Depreciation of $21,177 and Amortization of $12,409. Net loss includes Minority interest in losses of Local Limited Partnership of $185 and Equity in losses of Local Limited Partnerships of $(1,497,112).
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