-----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, K+sm1ff3FmnLPeFTgkZBIlJggvlVdl0oxmZuGLQqrIR7wyi6ty6TaYAZrClNKHeK eImdiulh8p2W+u4wZmUH0w== 0000810663-01-500049.txt : 20020410 0000810663-01-500049.hdr.sgml : 20020410 ACCESSION NUMBER: 0000810663-01-500049 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011113 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: 1934 Act SEC FILE NUMBER: 000-19706 FILM NUMBER: 1782022 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10QSB 1 qh5q202.txt QH 5 Q2 2002 November 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-QSB for the Quarter Ended September 30, 2001 File Number 0-19706 Dear Sir/Madam: Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of 1934, filed herewith one copy of subject report. Very truly yours, /s/Stephen Guilmette Stephen Guilmette Assistant Controller QH5-Q2.DOC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (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, 2001 ------------------------------------------------- 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 Sheet (Unaudited) - September 30, 2001 1 Statements of Operations (Unaudited) - For the Three and Six Months Ended September 30, 2001 and 2000 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Six Months Ended September 30, 2001 3 Statements of Cash Flows (Unaudited) - For the Six Months Ended September 30, 2001 and 2000 4 Notes to the Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 PART II - OTHER INFORMATION Items 1-6 9 SIGNATURE 10
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) BALANCE SHEET September 30, 2001 (Unaudited)
Assets Cash and cash equivalents $ 685,172 Marketable securities, at fair value 2,244,854 Investments in Local Limited Partnerships, net (Note 1) 15,362,709 Restricted cash 120,189 Other assets 33,165 ------------- Total Assets $ 18,446,089 ============== Liabilities and Partners' Equity Accounts payable to affiliate $ 176,562 Accrued expenses 44,483 Deferred revenue 120,189 ------------- Total Liabilities 341,234 ------------- General, Initial and Investor Limited Partners' Equity 18,044,351 Net unrealized gains on marketable securities 60,504 ------------- Total Partners' Equity 18,104,855 ------------- Total Liabilities and Partners' Equity $ 18,446,089 =============
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 Six Months Ended September 30, 2001 and 2000 (Unaudited)
Three Months Ended Six Months Ended September 30, September 30, September 30, September 30, 2001 2000 2001 2000 ------------- ------------- ------------- --------------- Revenue: Investment $ 38,375 $ 44,250 $ 80,377 $ 86,737 Other 30,073 32,309 52,873 148,438 ------------- ------------- ------------- ------------- Total Revenue 68,448 76,559 133,250 235,175 ------------- ------------- ------------- ------------- Expenses: General and administrative (includes reimbursements to an affiliate in the amounts of $112,741 and $77,828 in 2001 and 2000, respectively) 72,233 59,917 169,884 127,176 Asset management fees, affiliate 64,572 62,841 129,144 125,682 Amortization 5,899 5,899 11,798 11,798 ------------- ------------- ------------- ------------- Total Expenses 142,704 128,657 310,826 264,656 ------------- ------------- ------------- ------------- Loss before equity in losses of Local Limited Partnerships (74,256) (52,098) (177,576) (29,481) Equity in losses of Local Limited Partnerships (Note 1) (484,574) (416,592) (886,756) (866,524) ------------- ------------- ------------- ------------- Net Loss $ (558,830) $ (468,690) $ (1,064,332) $ (896,005) ============= ============= ============= ============= Net Loss allocated: General Partners $ (5,588) $ (4,687) $ (10,643) $ (8,960) Limited Partners (553,242) (464,003) (1,053,689) (887,045) ------------- ------------- ------------- ------------- $ (558,830) $ (468,690) $ (1,064,332) $ (896,005) ============= ============= ============= ============= Net Loss per Limited Partnership Unit (68,929 Units) $ (8.03) $ (6.73) $ (15.29) $ (12.87) ============= ============= ============= ==============
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 Six Months Ended September 30, 2001 (Unaudited)
Initial Investor Net General Limited Limited Unrealized Partners Partner Partners Gains Total ----------- ------------- ----------- ---------- --------- Balance at March 31, 2001 $ (401,020) $ 5,000 $ 19,504,703 $ 40,502 $ 19,149,185 ----------- --------- -------------- ----------- ------------- Comprehensive Income (Loss): Change in net unrealized gains on marketable securities available for sale - - - 20,002 20,002 Net Loss (10,643) - (1,053,689) - (1,064,332) ----------- --------- -------------- ----------- ------------- Comprehensive Income (Loss) (10,643) - (1,053,689) 20,002 (1,044,330) ----------- --------- -------------- ----------- ------------- Balance at September 30, 2001 $ (411,663) $ 5,000 $ 18,451,014 $ 60,504 $ 18,104,855 =========== ========= ============== =========== =============
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 Six Months Ended September 30, 2001 and 2000 (Unaudited)
2001 2000 ------------ ----------- Net cash provided by (used for) operating activities $ (207,700) $ 19,180 Net cash provided by investing activities 319,273 5,481 ------------ ----------- Net increase in cash and cash equivalents 111,573 24,661 Cash and cash equivalents, beginning 573,599 392,154 ------------ ----------- Cash and cash equivalents, ending $ 685,172 $ 416,815 ============ ===========
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-QSB and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States. 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, 2001. 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. The Managing General Partner of the Partnership has elected to report results of the Local Limited Partnerships in which the Partnership has a limited partnership interest, 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 that is included in the accompanying financial statements is as of June 30, 2001 and 2000. 1. Investments in Local Limited Partnerships The Partnership uses the equity method to account for its limited partner interests 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. Upon dissolution of the Local Limited Partnerships, proceeds will be distributed according to each respective partnership agreement. The following is a summary of investments in Local Limited Partnerships at September 30, 2001:
Capital contributions and advances paid to Local Limited Partnerships and purchase price paid to withdrawing partners of Local Limited Partnerships $ 55,637,228 Cumulative equity in losses of Local Limited Partnerships (excluding cumulative unrecognized losses of $4,553,478) (38,121,369) Cumulative cash distributions received from Local Limited Partnerships (2,068,369) ------------- Investments in Local Limited Partnerships before adjustment 15,447,490 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,006,357 Accumulated amortization of acquisition fees and expenses (261,411) ------------- Investments in Local Limited Partnerships prior to reserve for valuation 16,192,436 Reserve for valuation of investments in Local Limited Partnerships (829,727) ------------- Investments in Local Limited Partnerships $ 15,362,709 =============
The Partnership has provided a reserve for valuation for its investments in Local Limited Partnerships because there is evidence of non-temporary declines in the recoverable amounts of the investments. The Partnership's share of the net losses of the Local Limited Partnerships for the six months ended September 30, 2001 is $1,457,700. For the six months ended September 30, 2001, the Partnership has not recognized $570,944 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 its 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 September 30, 2001, the Partnership had cash and cash equivalents of $685,172, compared with $573,599 at March 31, 2001. The increase is attributable to proceeds from sales and maturities of marketable securities and cash distributions received from Local Limited Partnerships, partially offset by purchases of marketable securities and cash used for operating activities. Approximately $2,252,000 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. The Managing General Partner 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 $328,000 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 September 30, 2001, 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 six months ended September 30, 2001. Results of Operations Three Month Period The Partnership's results of operations for the three months ended September 30, 2001 resulted in a net loss of $558,830, as compared to a net loss of $468,690 for the same period in 2000. The increase in net loss is primarily attributable to an increase in equity in losses of Local Limited Partnerships and an increase in general and administrative expenses. The increase in general and administrative expense is primarily due to increased charges from an affiliate of the General Partner for operational and administrative expenses necessary for the operation of the Partnership. The increased charges pertained to higher levels of staffing and salary levels at the affiliate in addition to changes in the affiliate's allocation of operational and administrative expenses to more accurately reflect the actual cost of services provided to the 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) Results of Operations (continued) - -------------------------------- Six Month Period The Partnership's results of operations for the six months ended September 30, 2001 resulted in a net loss of $1,064,332, as compared to a net loss of $896,005 for the same period in 2000. The increase in net loss is primarily attributable to a decrease in other revenue and an increase in general and administrative expenses. The decrease in other revenue is due to a refund of legal costs in 2000 related to one Local Limited Partnership and the timing of distributions from Local Limited Partnerships. The increase in general and administrative expense is primarily due to increased charges from an affiliate of the General Partner for operational and administrative expenses necessary for the operation of the Partnership. The increased charges pertained to higher levels of staffing and salary levels at the affiliate in addition to changes in the affiliate's allocation of operational and administrative expenses to more accurately reflect the actual cost of services provided to the Partnership. Property Discussions The Partnership's investment portfolio consists of limited partnership interests in 26 Local Limited Partnerships, each of which owns and operates a multi-family apartment complex. A majority of the Properties have stabilized operations and operate above break-even. A few Properties generate cash flow deficits that the Local General Partners of those Properties fund through project expenses loans, subordinated loans or operating escrows. However, some Properties have persistent operating difficulties that could either: i) have an adverse impact on the Partnership's liquidity; ii) result in their foreclosure or iii) result in the Managing General Partner deeming it appropriate for the Partnership to dispose of its interest in the Property. Also, the Managing General Partner, in the normal course of the Partnership's business, may desire to dispose of certain Local Limited Partnerships. The following Property discussions focus only on such Properties. Operations at Historic New Center, located in Detroit, Michigan, continue to struggle. The Property suffers from poor location and security issues. Vandalism has caused an increase in maintenance and repair expenses and has negatively affected the Property's occupancy levels and tenant profile. A new site management company began operating the Property on January 1, 2001 but subsequently resigned, as they believed they were not suited to manage the Property. An affiliate of the Local General Partner began managing the Property in May 2001 and is working to increase curb appeal and implement new marketing programs to increase qualified tenant traffic. The Managing General Partner will continue to closely monitor the site manager's efforts to improve Property operations; however, due to the Property's continuing struggles, the Managing General Partner is concerned about its long-term viability. As previously reported regarding Westgate, located in 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 Local Limited Partnership to an affiliate of the Local General Partner in November 1997. The Managing General Partner also had the right to transfer the Partnership's remaining interest to the Local General Partner any time after one year from the initial transfer. However, due to subsequent transfers by the Local General Partner of its interest in the Property, the date when the Managing General Partner had the right to transfer the remaining interest did not occur until September 1, 2001. The Partnership will retain its full share of the Property's tax credits, which expire in 2001, until such time as the remaining interest is put to the new Local General Partner. Further, the new Local General Partner has the right to call the remaining interest after the tax credit period has expired. Carib Villas II and Carib Villas III, located in St. Croix, Virgin Islands, have been unable to maintain occupancy. The Properties have both family and elderly units, and while the family units have a waiting list, the elderly units have proven difficult to lease. Also, due to the Properties' proximity to the ocean, weather conditions erode their physical condition quickly, and therefore, maintenance issues are a concern. In April 2000, a replacement site 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 (continued) - ------------------------------- management company was brought in to manage the Properties' operations. This replacement site management company recently stated its desire to purchase the General and Limited Partner interests in the Properties. Currently, the Managing General Partner is negotiating a plan that will ultimately transfer the Partnership's interests in the Properties. The plan includes provisions to minimize the risk of recapture. 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 exits, 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 September 30, 2001. 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 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 Principal, Head of Housing and Community Investment -----END PRIVACY-ENHANCED MESSAGE-----