-----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, VmRuPUobsAqWAb2GQv6063S00kWW/nt+OQnVO+/7dAQTsyz0WLYjM/qNXkAhGYHJ PzpOFViMWMYnZd6Dgfrvew== 0000810663-01-000008.txt : 20010223 0000810663-01-000008.hdr.sgml : 20010223 ACCESSION NUMBER: 0000810663-01-000008 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010214 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: 10QSB SEC ACT: SEC FILE NUMBER: 000-19706 FILM NUMBER: 1539673 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10QSB 1 0001.txt QH5 12/00 10Q SB February 14 , 2001 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 RE: Boston Financial Qualified Housing Tax Credits L.P. V Report on Form 10-Q for the Quarter Ended December 31, 2000 File Number 0-19706 Dear Sir/Madam: 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-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, 2000 ---------------------------------------------- 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 Balance Sheets - December 31, 2000 (Unaudited) and March 31, 2000 1 Statements of Operations (Unaudited) - For the Three and Nine Months Ended December 31, 2000 and 1999 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Nine Months Ended December 31, 2000 3 Statements of Cash Flows (Unaudited) - For the Nine Months Ended December 31, 2000 and 1999 4 Notes to the Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II - OTHER INFORMATION Items 1-6 9 SIGNATURE 10 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) BALANCE SHEETS
December 31, March 31, 2000 2000 ------------- ------------- (Unaudited) Assets Cash and cash equivalents $ 135,748 $ 392,154 Restricted cash 137,257 131,198 Investments in Local Limited Partnerships, net (Note 1) 17,019,151 18,818,290 Marketable securities, at fair value 2,666,578 2,332,268 Other assets 42,864 29,074 ------------- ------------- Total Assets $ 20,001,598 $ 21,702,984 ============= ============= Liabilities and Partners' Equity Accounts payable to affiliates $ 33,313 $ 121,184 Accounts payable and accrued expenses 53,655 43,605 Deferred revenue 137,257 131,198 ------------- ------------- Total Liabilities 224,225 295,987 ------------- ------------- General, Initial and Investor Limited Partners' Equity 19,763,996 21,443,142 Net unrealized gains (losses) on marketable securities 13,377 (36,145) ------------- ------------- Total Partners' Equity 19,777,373 21,406,997 ------------- ------------- Total Liabilities and Partners' Equity $ 20,001,598 $ 21,702,984 ============= =============
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 For the Three and Nine Months Ended December 31, 2000 and 1999 (Unaudited)
Three Months Ended Nine Months Ended December 31, December 31, December 31, December 31, 2000 1999 2000 1999 ------------- ------------- ------------- --------------- Revenue: Investment $ 45,420 $ 39,748 $ 132,157 $ 118,289 Other 6,072 6,417 154,510 49,804 ------------- ------------ ------------ --------------- Total Revenue 51,492 46,165 286,667 168,093 ------------- ------------ ------------ --------------- Expenses: General and administrative (includes reimbursements to an affiliate in the amounts of $179,434 and $81,414 in 2000 and 1999, respectively) 130,856 62,464 258,032 257,039 Asset management fees, related party 62,834 61,493 188,516 184,490 Provision for valuation of investment in Local Limited Partnership - - - 174,739 Amortization 5,899 5,964 17,697 17,898 ------------- ------------ ------------ --------------- Total Expenses 199,589 129,921 464,245 634,166 ------------- ------------ ------------ --------------- Loss before equity in losses of Local Limited Partnerships (148,097) (83,756) (177,578) (466,073) Equity in losses of Local Limited Partnerships (Note 1) (635,044) (761,707) (1,501,568) (1,788,466) ------------- ------------ ------------ --------------- Net Loss $ (783,141) $ (845,463) $ (1,679,146) $ (2,254,539) ============= ============ ============ =============== Net Loss allocated: To General Partners $ (7,831) $ (8,455) $ (16,791) $ (22,545) To Limited Partners (775,310) (837,008) (1,662,355) (2,231,994) ------------- ------------ ------------ --------------- $ (783,141) $ (845,463) $ (1,679,146) $ (2,254,539) ============= ============ ============ =============== Net Loss per Limited Partnership Unit (68,929 Units) $ (11.25) $ (12.14) $ (24.12) $ (32.38) ============= ============ =========== ===============
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) For the Nine Months Ended December 31, 2000 (Unaudited)
Net Initial Investor Unrealized General Limited Limited Gain Partners Partner Partners (Losses) Total Balance at March 31, 2000 $ (377,675) $ 5,000 $ 21,815,817 $ (36,145) $ 21,406,997 ----------- --------- -------------- ----------- ------------- Comprehensive Income (Loss): Change in net unrealized losses on marketable securities available for sale - - - 49,522 49,522 Net Loss (16,791) - (1,662,355) - (1,679,146) ----------- --------- -------------- ----------- ------------- Comprehensive Income (Loss) (16,791) - (1,662,355) 49,522 (1,629,624) ----------- --------- -------------- ----------- ------------- Balance at December 31, 2000 $ (394,466) $ 5,000 $ 20,153,462 $ 13,377 $ 19,777,373 =========== ========= ============== =========== =============
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 For the Nine Months Ended December 31, 2000 and 1999 (Unaudited)
1999 2000 (Restated) --------------- ------------ Net cash used for operating activities $ (289,939) $ (476,952) --------------- ------------- Cash flows from investing activities: Purchases of marketable securities (1,027,402) (768,983) Proceeds from sales and maturities of marketable securities 745,088 1,100,921 Cash distributions received from Local Limited Partnerships 315,847 192,084 Advances to Local Limited Partnerships - (188,700) Repayment of advances to Local Limited Partnerships - 188,700 --------------- ------------- Net cash provided by investing activities 33,533 524,022 --------------- ------------- Net increase (decrease) in cash and cash equivalents (256,406) 47,070 Cash and cash equivalents, beginning 392,154 449,931 --------------- ------------- Cash and cash equivalents, ending $ 135,748 $ 497,001 =============== =============
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 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 Form 10-K for the year ended March 31, 2000. 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 reclassifications have been made to prior year's financial statements 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 financial statements is as of September 30, 2000 and 1999. 1. Investments in Local Limited Partnerships The Partnership uses the equity method to account for its limited partner interest in twenty-six Local Limited Partnerships. Each of these Local Limited Partnerships owns and operates multi-family housing complexes, most of which are government-assisted. The Partnership, as Investor Limited Partner pursuant to the various Local Limited Partnership Agreements which contain certain operating and distribution restrictions, 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, Westgate and Huguenot Park, which are 95%, 49.5% and 88.55%, 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 December 31, 2000:
Capital contributions and advances paid to Local Limited Partnerships and purchase price paid to withdrawing partners of Local Limited Partnerships $ 55,571,437 Cumulative equity in losses of Local Limited Partnerships (excluding cumulative unrecognized losses of $3,469,369) (36,640,824) Cumulative cash distributions received from Local Limited Partnerships (1,910,170) --------------- Investments in Local Limited Partnerships before adjustment 17,020,443 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,006,357 Accumulated amortization of acquisition fees and expenses (243,713) --------------- Investments in Local Limited Partnerships before reserve for valuation 17,783,087 Reserve for valuation of investment in Local Limited Partnership (763,936) --------------- Investments in Local Limited Partnership $ 17,019,151 ===============
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) Notes to the Financial Statements (Continued) (Unaudited) 1. Investments in Local Limited Partnerships (continued) The Partnership's share of net losses of the Local Limited Partnerships for the nine months ended December 31, 2000 is $2,368,322. For the nine months ended December 31, 2000, the Partnership has not recognized $866,754 of equity in losses relating to several Local Limited Partnerships where cumulative equity in losses and cumulative distributions from Local Limited Partnerships exceeded its total investments in these Local Limited Partnerships. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Certain matters discussed herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Partnership intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements and is including this statement for purposes of complying with these safe harbor provisions. Although the Partnership believes the forward-looking statements are based on reasonable assumptions, the Partnership can give no assurance that their expectations will be attained. Actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, general economic and real estate conditions and interest rates. Liquidity and Capital Resources At December 31, 2000, the Partnership had cash and cash equivalents of $135,748, compared with $392,154 at March 31, 2000. The decrease is attributable to cash used for operations and purchases of marketable securities in excess of proceeds from sales and maturities of marketable securities, partially offset by cash distributions received from Local Limited Partnerships. Approximately $2,286,000 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. 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. To date, the Partnership has advanced approximately $303,000 to Local Limited Partnerships to fund operating deficits. 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, 2000, the Partnership had no contractual or other obligation to any Local Limited Partnership which had not been paid or provided for. Cash Distributions No cash distributions were made during the nine months ended December 31, 2000. Results of Operations The Partnership's results of operations for the three and nine months ended December 31, 2000 resulted in a net loss of $783,141 and $1,679,146, respectively, as compared to a net loss of $845,463 and 2,254,539 for the same periods in 1999. The decrease in net loss is primarily attributable to decreases in equity in losses of Local Limited Partnerships from 1999 to 2000, as well as a valuation provision recorded in 1999 related to the Partnership's investment in a Local Limited Partnership. Equity in losses of Local Limited Partnerships decreased primarily due to an increase in unrecognized losses for Local Limited Partnerships whose carrying values have been reduced to zero. In addition, other revenue increased in 2000 as a result of a refund of legal costs related to one Local Limited Partnership. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Property Discussions Historic New Center in Detroit, Michigan operated at a deficit during the first nine months of 2000 due to low occupancy and collection problems. Occupancy declined during the third and fourth quarters of 2000 due to a lack of qualified applicants, the property's poor curb appeal and as a result of site management efforts to improve the tenant profile through a tighter tenant screening process. Management is working to increase curb appeal and implement new marketing programs to increase qualified tenant traffic. The Managing General Partner continues to closely monitor the site manager's efforts to improve property operations. As previously reported regarding Westgate (Bismarck, North Dakota), in order to protect the remaining tax credits generated by the property, the Managing General Partner consummated the transfer of 50% of the Partnership's capital and profits in the property to an affiliate of the Local General Partner in November 1997. The Managing General Partner also has the right to transfer the Partnership's remaining interest to the Local General Partner any time after one year from the initial transfer. Subsequently, the Local General Partner transferred both its general partner interest and 48.5% of the local partnership interest in Westgate to a non-profit general partner effective June 17, 1999. As a result, the date when the Managing General Partner has the right to transfer the Partnership's remaining interest to the new Local General Partner was amended to reflect the June 17, 1999 effective date. Further, the new Local General Partner has the right to call the remaining interest after the tax credit period has expired, which is 2001. As previously reported on Wheeler House, debt-restructuring negotiations with the lender ended unsuccessfully in the beginning of November 1999. Consequently, the lender foreclosed on the property in early January 2000. The foreclosure will result in recapture of credits of approximately $3.70 per unit which will be on your 2000 Schedule K-1 that will be filed in April of 2001. In addition, the foreclosure will result in the allocation of taxable income to the Partnership and loss of future benefits associated with this property. The Partnership has implemented policies and practices for assessing potential impairment of its investments in Local Limited Partnerships. Real estate experts analyze the investments to determine if impairment indicators exist. If so, the carrying value is compared to the undiscounted future cash flows expected to be derived from the asset. If a significant impairment in carrying value exists, a provision to write down the asset to fair value will be recorded in the Partnership's financial statements. 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, 2000. 9 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 14, 2001 BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V By: Arch Street V, Inc., its Managing General Partner /s/Jenny Netzer ---------------------------------- Jenny Netzer Managing Director and President EX-27 2 0002.txt QH5 FINANCIAL DATA SCHEDULE FOR Q3 FY 2001
5 9-MOS MAR-31-2001 DEC-31-2000 135,748 2,666,578 000 000 000 000 000 000 20,001,598 000 000 000 000 000 19,777,373 20,001,598 000 286,667 000 000 464,245 000 000 000 000 000 000 000 000 (1,679,146) (24.12) 000 Included in Total Assets: Investments in Local Limited Partnerships, net of $17,019,151, Restricted cash of $137,257 and Other assets of $42,864 Included in Total Liabilities and Equity: Accounts payable to affiliates of $33,313, Accounts payable and accrued expenses of $53,655 and Deferred revenue of $137,257 Included in Total Revenue: Investment of $132,157 and Other of $154,510 Included in Other Expenses: General and administrative of $258,032, Asset management fees of $188,516 and Amortization of $17,697 Included in Net Loss: Equity in losses of Local Limited Partnerships of $1,501,568
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