-----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, RUr28TSR2OAONfsdGLQKv/W9h3B2nRN8e38DJlvJOUlZazWQT+GKasYpiNLPyxGL DsUW6Krxebb98dTh67L0zQ== 0000810663-99-000006.txt : 19990212 0000810663-99-000006.hdr.sgml : 19990212 ACCESSION NUMBER: 0000810663-99-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990211 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: 99531432 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10-Q 1 QH5 12/98 10-Q February 11, 1999 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 December 31, 1998 File No. 0-19706 Gentlemen: Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of 1934, filed herewith is a copy of subject report. Very truly yours, /s/Stephen Guilmette Stephen Guilmette Assistant Controller QH5-Q3.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 December 31, 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 - December 31, 1998 (Unaudited) and March 31, 1998 1 Combined Statements of Operations (Unaudited) - For the Three and Nine Months Ended December 31, 1998 and 1997 2 Combined Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Nine Months Ended December 31, 1998 3 Combined Statements of Cash Flows (Unaudited) - For the Nine Months Ended December 31, 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 - December 31, 1998 and March 31, 1998
December 31, March 31, 1998 1998 (Unaudited) Assets Cash and cash equivalents $ 536,706 $ 239,932 Mortgagee escrow deposits 3,596 382 Tenant security deposit escrow 3,532 3,017 Investments in Local Limited Partnerships, net of reserve for valuation of $590,197 (Note 1) 21,668,955 24,775,767 Marketable securities, at fair value 2,751,525 3,064,717 Rental property at cost, net of accumulated depreciation 775,205 778,924 Replacement reserve escrow 4,207 2,888 Accounts receivable 14 - Other assets 38,286 40,041 ------------- ------------- Total Assets $ 25,782,026 $ 28,905,668 ============= ============= Liabilities and Partners' Equity Accounts payable to affiliates $ 69,912 $ 79,210 Accounts payable and accrued expenses 55,167 72,983 Mortgage note payable 707,165 707,659 Tenant security deposits payable 3,532 3,017 Deferred revenue 145,125 139,461 ------------- ------------- Total Liabilities 980,901 1,002,330 ------------- ------------- Minority interest in Local Limited Partnership 140,295 140,554 ------------- ------------- General, Initial and Investor Limited Partners' Equity 24,638,843 27,777,237 Net unrealized losses on marketable securities 21,987 (14,453) ------------- ------------- Total Partners' Equity 24,660,830 27,762,784 ------------- ------------- Total Liabilities and Partners' Equity $ 25,782,026 $ 28,905,668 ============= =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED STATEMENTS OF OPERATIONS (Unaudited) For the Three and Nine Months Ended December 31, 1998 and 1997
Three Months Ended Nine Months Ended December 31, December 31, December 31, December 31, 1998 1997 1998 1997 ------------- ------------- ------------- ------------ Revenue: Rental $ 29,740 $ 28,733 $ 88,203 $ 68,042 Investment 44,397 45,856 118,955 136,992 Other 14,572 19,076 88,120 22,847 ------------ ------------ ------------ ------------ Total Revenue 88,709 93,665 295,278 227,881 ------------ ------------ ------------ ------------ Expenses: General and administrative (includes reimbursements to an affiliate in the amounts of $78,611 and $92,550 in 1998 and 1997, respectively) 236,498 52,038 343,564 170,677 Asset management fees, related party 60,556 59,177 181,668 177,531 Rental operations, exclusive of depreciation 8,484 4,728 28,501 14,246 Property management fee, related party - 1,731 - 4,122 Interest 18,429 20,453 54,794 47,772 Depreciation 10,590 10,589 31,767 24,708 Amortization 5,487 7,323 17,896 21,968 ------------ ------------ ------------ ------------ Total Expenses 340,044 156,039 658,190 461,024 ------------ ------------ ------------ ------------ Loss before minority interest in losses of Local Limited Partnerships and equity in losses of Local Limited Partnerships (251,335) (62,374) (362,912) (233,143) Minority interest in losses of Local Limited Partnership 74 86 259 221 Equity in losses of Local Limited Partnerships (1,278,629) (1,106,680) (2,775,741) (2,999,200) ------------ ------------ ------------ ------------ Net Loss $ (1,529,890) $ (1,168,968) $ (3,138,394) $ (3,232,122) ============ ============ ============ ============ Net Loss allocated: To General Partners $ (15,299) $ (11,689) $ (31,384) $ (32,321) To Limited Partners (1,514,591) (1,157,279) (3,107,010) (3,199,801) ------------ ------------ ------------ ------------ $ (1,529,890) $ (1,168,968) $ (3,138,394) $ (3,232,122) ============ ============ ============ ============ Net Loss per Limited Partnership Unit (68,929 Units) $ (21.98) $ (16.79) $ (45.08) $ (46.42) ============ ============ ============ ============
The accompanying notes are an integral part of these 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 Nine Months Ended December 31, 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 Income (Loss): Net Loss (31,384) - (3,107,010) - (3,138,394) Change in net unrealized losses on marketable securities available for sale - - - 36,440 36,440 ----------- --------- ------------- ----------- ------------- Comprehensive Income (Loss) (31,384) - (3,107,010) 36,440 (3,101,954) ----------- --------- ------------- ----------- ------------- Balance at December 31, 1998 $ (345,718) $ 5,000 $ 24,979,561 $ 21,987 $ 24,660,830 =========== ========= ============= =========== =============
The accompanying notes are an integral part of these financial statements. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED STATEMENTS OF CASH FLOWS (Unaudited) For the Nine Months Ended December 31, 1998 and 1997
1998 1997 --------------- ------------- Net cash used for operating activities $ (356,003) $ (280,420) --------------- ------------- Cash flows from investing activities: Purchases of marketable securities (2,125,108) (2,190,434) Proceeds from sales and maturities of marketable securities 2,459,825 2,183,015 Cash distributions received from Local Limited Partnerships 318,319 208,309 Addition to rental properties (765) - Replacement reserve deposits - (196) Cash received upon assumption of General Partner interestin a Combined Entity - 937 --------------- ------------- Net cash provided by investing activities 652,271 201,631 --------------- ------------- Cash flows from financing activities: General Partner Contribution - 16,045 Advance from affiliate 1,000 - Payment of mortgage principal (494) (2,416) --------------- ------------- Net cash provided by financing activities 506 13,629 --------------- ------------- Net increase (decrease) in cash and cash equivalents 296,774 (65,160) Cash and cash equivalents, beginning 239,932 449,567 --------------- ------------- Cash and cash equivalents, ending $ 536,706 $ 384,407 =============== ============= Supplemental disclosure: Cash paid for interest $ 54,794 $ 47,772 =============== =============
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 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 September 30, 1998 and 1997. 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 December 31, 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 $790,557) (32,478,884) Cumulative cash distributions received from Local Limited Partnerships (1,291,375) -------------- Investments in Local Limited Partnerships before adjustment 21,449,252 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,006,357 Accumulated amortization of acquisition fees and expenses (196,457) --------------- Investments in Local Limited Partnerships 22,259,152 Reserve for valuation of investment in Local Limited Partnership (590,197) --------------- $ 21,668,955 =============== 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 nine months ended December 31, 1998 is $3,400,304. For the nine months ended December 31, 1998, the Partnership has not recognized $656,990 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 $ 535,740 $ 966 $ - $ 536,706 Mortgagee escrow deposits - 3,596 - 3,596 Tenant security deposit escrow - 3,532 - 3,532 Investments in Local Limited Partnerships, net 21,599,556 - 69,399 21,668,955 Marketable securities, at fair value 2,751,525 - - 2,751,525 Rental property at cost, net of accumulated depreciation - 747,922 27,283 775,205 Replacement reserve escrow - 4,207 - 4,207 Accounts receivable 1,000 14 (1,000) 14 Other assets 38,286 - - 38,286 ------------- ---------------- --------------- -------------- Total Assets $ 24,926,107 $ 760,237 $ 95,682 $ 25,782,026 ============= ================ =============== ============== Liabilities and Partners' Equity (Deficiency) Accounts payable to affiliates $ 69,912 $ 1,000 $ (1,000) $ 69,912 Accounts payable and accrued expenses 50,240 4,927 - 55,167 Mortgage note payable - 707,165 - 707,165 Tenant security deposits payable - 3,532 - 3,532 Deferred revenue 145,125 - - 145,125 ------------- ---------------- --------------- -------------- Total Liabilities 265,277 716,624 (1,000) 980,901 ------------- ---------------- --------------- -------------- Minority interest in Local Limited Partnership - - 140,295 140,295 ------------- ---------------- --------------- -------------- General, Initial and Investor Limited Partners' Equity 24,638,843 43,613 (43,613) 24,638,843 Net unrealized gains on marketable securities 21,987 - - 21,987 ------------- ---------------- --------------- -------------- Total Partners' Equity 24,660,830 43,613 (43,613) 24,660,830 ------------- ---------------- --------------- -------------- Total Liabilities and Partners' Equity $ 24,926,107 $ 760,237 $ 95,682 $ 25,782,026 ============= ================ =============== ============== (A) As of December 31, 1998. (B) As of September 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 December 31, 1998
Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Revenue: Rental $ - $ 29,740 $ - $ 29,740 Investment 44,397 - - 44,397 Other 14,121 451 - 14,572 ------------- ------------- ------------- ------------- Total Revenue 58,518 30,191 - 88,709 ------------- ------------- ------------- ------------- Expenses: General and administrative 236,498 - - 236,498 Asset management fees, related party 60,556 - - 60,556 Rental operations, exclusive of depreciation - 8,484 - 8,484 Interest - 18,429 - 18,429 Depreciation - 10,590 - 10,590 Amortization 5,487 - - 5,487 ------------- ------------- ------------- ------------- Total Expenses 302,541 37,503 - 340,044 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (244,023) (7,312) - (251,335) Minority interest in losses of Local Limited Partnership - - 74 74 Equity in losses of Local Limited Partnership (1,285,867) - 7,238 (1,278,629) ------------- ------------- ------------- ------------- Net Loss $ (1,529,890) $ (7,312) $ 7,312 $ (1,529,890) ============= ============= ============= =============
(A) For the three months ended December 31, 1998. (B) For the three months ended September 30, 1998. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued) (Unaudited) 3. Supplemental Combining Schedules (continued) Statements of Operations For the Nine Months Ended December 31, 1998
Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Revenue: Rental $ - $ 88,203 $ - $ 88,203 Investment 118,955 - - 118,955 Other 87,115 1,005 - 88,120 ------------- ------------- ------------- ------------- Total Revenue 206,070 89,208 - 295,278 ------------- ------------- ------------- ------------- Expenses: General and administrative 343,564 - - 343,564 Asset management fees, related party 181,668 - - 181,668 Rental operations, exclusive of depreciation - 28,501 - 28,501 Interest - 54,794 - 54,794 Depreciation - 31,767 - 31,767 Amortization 17,896 - - 17,896 ------------- ------------- ------------- ------------- Total Expenses 543,128 115,062 - 658,190 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (337,058) (25,854) - (362,912) Minority interest in losses of Local Limited Partnership - - 259 259 Equity in losses of Local Limited Partnerships (2,801,336) - 25,595 (2,775,741) ------------- ------------- ------------- ------------- Net Loss $ (3,138,394) $ (25,854) $ 25,854 $ (3,138,394) ============= ============= ============= =============
(A) For the nine months ended December 31, 1998. (B) For the nine months ended September 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 Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Net cash provided by (used for) operating activities $ (357,004) $ 1,001 $ - $ (356,003) ------------- -------------- --------------- -------------- Cash flows from investing activities: Purchases of marketable securities (2,125,108) - - (2,125,108) Proceeds from sales and maturities of marketable securities 2,459,825 - - 2,459,825 Additions to rental property - (765) - (765) Cash distributions received from Local Limited Partnerships 318,319 - - 318,319 ------------- -------------- --------------- -------------- Net cash provided by (used for ) by investing activities 653,036 (765) - 652,271 ------------- -------------- --------------- -------------- 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 296,032 742 - 296,774 Cash and cash equivalents, beginning 239,708 224 - 239,932 ------------- -------------- --------------- -------------- Cash and cash equivalents, ending $ 535,740 $ 966 $ - $ 536,706 ============= ============== =============== ==============
(A) For the nine months ended December 31, 1998. (B) For the nine months ended September 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 December 31, 1998, the Partnership (including Burbank) had cash and cash equivalents of $536,706, 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 $2,553,000 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 December 31, 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 nine months ended December 31, 1998. Results of Operations The Partnership's results of operations for the three and nine months ended December 31, 1998 resulted in net losses of $1,529,890 and $3,138,394, respectively, as compared to net losses of $1,168,968 and $3,232,122 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 nine months of operations in 1998 as compared to seven 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 78%. 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 December 31, 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: February 11,1999 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 Q3 FY 99
5 9-MOS MAR-31-1999 DEC-31-1998 536,706 2,751,525 000 000 000 000 775,205 000 25,782,026 000 000 000 000 000 24,660,830 25,782,026 000 295,278 000 000 603,396 000 54,794 000 000 000 000 000 000 (3,138,394) (45.08) 000 Included in Total assets is Mortgagee escrow deposits of $3,596, Tenant security deposit escrow of $3,532, Net Investments in Local Limited Partnerships of $21,668,955, Replacement reserve escrow of $4,207, Accounts Receivable $14, and Other assets of $38,286 Included in Total liability and equity is Accounts payable to affiliates of $69,912, Accounts payable and accrued expenses of $55,167, Mortgage note payable of $707,165, Tenant security deposits payable of $3,532, Deferred revenue of $145,125 and Minority interest in Local Limited Partnership of $140,295. Total revenue includes Rental of $88,203, Investment of $118,955 and Other of $88,120. Included in Other expenses is General and administrative of $343,564, Asset management fees of $181,668, Rental operations, exclusive of depreciation of $28,501, Depreciation of $31,767 and Amortization of $17,896 Net loss includes Minority interest in losses of Local Limited Partnership of $259 and Equity in losses of Local Limited Partnerships of $(2,775,741)
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