-----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, FeYcVcvU/BXSNtJK6yDXba83CMtT8qJoo8/bVj1yBIpDDhEWKQDXlc8i9RI00R3s eyUtgxCWJbEXHe5RQT0nnw== 0000810663-99-000058.txt : 19991115 0000810663-99-000058.hdr.sgml : 19991115 ACCESSION NUMBER: 0000810663-99-000058 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991112 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: 99747689 BUSINESS ADDRESS: STREET 1: 101 ARCH ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174393911 10-Q 1 QH5 9/99 10-Q November 12, 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 September 30, 1999 File Number 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-Q2.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, 1999 ----------------------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to For Quarter Ended September 30, 1999 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, 1999 (Unaudited) and March 31, 1999 1 Combined Statements of Operations (Unaudited) - For the Three and Six Months Ended September 30, 1999 and 1998 2 Statement of Changes in Partners' Equity (Deficiency) (Unaudited) - For the Six Months Ended September 30, 1999 3 Combined Statements of Cash Flows (Unaudited) - For the Six Months Ended September 30, 1999 and 1998 4 Notes to Combined Financial Statements (Unaudited) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II - OTHER INFORMATION Items 1-6 12 SIGNATURE 13
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) COMBINED BALANCE SHEETS - September 30, 1999 and March 31, 1999
September 30, March 31, 1999 1999 (Unaudited) Assets Cash and cash equivalents $ 291,040 $ 450,450 Accounts receivable from affiliates, net - 173,739 Tenant security deposit escrow 3,788 3,758 Investments in Local Limited Partnerships, net of reserve for valuation of $590,197 (Note 1) 20,308,991 21,538,791 Marketable securities, at fair value 2,574,918 2,666,281 Prepaid assets 1,489 1,489 Rental property at cost, net of accumulated depreciation 766,376 778,843 Replacement reserve escrow 9,246 7,425 Other assets 28,372 32,658 ------------- ------------- Total Assets $ 23,984,220 $ 25,653,434 ============= ============= Liabilities and Partners' Equity Accounts payable to affiliates $ 16,795 $ 143,443 Accounts payable and accrued expenses 57,207 133,838 Mortgage note payable 705,329 706,873 Tenant security deposits payable 3,742 3,803 Deferred revenue 127,686 146,818 ------------- ------------- Total Liabilities 910,759 1,134,775 ------------- ------------- Minority interest in Local Limited Partnership 116,888 116,986 General, Initial and Investor Limited Partners' Equity 22,975,977 24,394,204 Net unrealized gains (losses) on marketable securities (19,404) 7,469 ------------- ------------- Total Partners' Equity 22,956,573 24,401,673 ------------- ------------- Total Liabilities and Partners' Equity $ 23,984,220 $ 25,653,434 ============= ============= 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, 1999 and 1998
Three Months Ended Six Months Ended September 30, September 30, September 30, September 30, 1999 1998 1999 1998 ------------- ------------- ------------- ------------- Revenue: Rental $ 30,194 $ 28,988 $ 60,116 $ 58,463 Investment 37,918 30,293 78,655 74,558 Other 24,096 71,084 44,302 73,548 ------------- ------------- ------------- ------------- Total Revenue 92,208 130,365 183,073 206,569 ------------- ------------- ------------- ------------- Expenses: General and administrative (includes reimbursements to an affiliate in the amounts of $52,382 and $51,090 in 1999 and 1998, respectively) 127,226 47,927 194,575 107,066 Asset management fees, related party 61,496 60,556 122,997 121,112 Rental operations, exclusive of depreciation 8,805 9,935 22,052 20,017 Bad debt expense 173,739 - 173,739 - Interest 29,171 16,865 35,314 36,365 Depreciation 6,776 11,177 13,551 21,177 Amortization 6,446 5,193 12,411 12,409 ------------- ------------- ------------- ------------- Total Expenses 413,659 151,653 574,639 318,146 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (321,451) (21,288) (391,566) (111,577) Minority interest in losses of Local Limited Partnership 142 84 98 185 Equity in losses of Local Limited Partnerships (Note 1) (373,001) (694,070) (1,026,759) (1,497,112) ------------- ------------- ------------- ------------- Net Loss $ (694,310) $ (715,274) $ (1,418,227) $ (1,608,504) ============= ============= ============= ============= Net Loss allocated: To General Partners $ (6,943) $ (7,153) $ (14,182) $ (16,085) To Limited Partners (687,367) (708,121) (1,404,045) (1,592,419) ------------- ------------- ------------- ------------- $ (694,310) $ (715,274) $ (1,418,227) $ (1,608,504) ============= ============= ============= ============= Net Loss per Limited Partnership Unit (68,929 Units) $ (9.97) $ (10.27) $ (20.37) $ (23.10) ============= ============= ============= ============== 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, 1999
Net Initial Investor Unrealized General Limited Limited Gains Partners Partner Partners (Losses) Total Balance at March 31, 1999 $ (348,164) $ 5,000 $ 24,737,368 $ 7,469 $ 24,401,673 ----------- --------- ------------ ----------- ------------- Comprehensive Loss: Net change in net unrealized gains on marketable securities available for sale - - - (26,873) (26,873) Net Loss (14,182) - (1,404,045) - (1,418,227) ----------- --------- ------------ ----------- ------------- Comprehensive Loss (14,182) - (1,404,045) (26,873) (1,445,100) ----------- --------- ------------ ----------- ------------- Balance at September 30, 1999 $ (362,346) $ 5,000 $ 23,333,323 $ (19,404) $ 22,956,573 =========== ========= ============ =========== ============ 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, 1999 and 1998
1999 1998 ---------- ----------- Net cash used for operating activities $ (422,794) $ (185,993) ---------- ----------- Cash flows from investing activities: Purchases of marketable securities (768,983) (1,625,326) Proceeds from sales and maturities of marketable securities 835,665 2,088,579 Additions to rental property (1,561) (325) Cash distributions received from Local Limited Partnerships 191,107 323,584 Advance to Local Limited Partnership (180,000) - Repayment of advance to Local Limited Partnership 180,000 - ---------- ----------- Net cash provided by investing activities 256,228 786,512 ---------- ----------- Cash flows from financing activities: Payment of mortgage principal (1,544) (494) Advance from affiliate 8,700 1,000 ---------- ----------- Net cash provided by financing activities 7,156 506 ---------- ----------- Net increase (decrease) in cash and cash equivalents (159,410) 601,025 Cash and cash equivalents, beginning 450,450 239,932 ---------- ----------- Cash and cash equivalents, ending $ 291,040 $ 840,957 ========== =========== Supplemental disclosure: Cash paid for interest $ 35,314 $ 36,365 ========== =========== 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 Form 10-K for the year ended March 31, 1999. 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 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, 1999. 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, 1999:
Capital contributions paid to Local Limited Partnerships and purchase price paid to withdrawing partners of Local Limited Partnerships $ 55,269,931 Cumulative equity in losses of Local Limited Partnerships (excluding cumulative unrecognized losses of $1,881,764) (33,629,787) Cumulative cash distributions received from Local Limited Partnerships (1,532,961) -------------- Investments in Local Limited Partnerships before adjustment 20,107,183 Excess of investment cost over the underlying net assets acquired: Acquisition fees and expenses 1,006,357 Accumulated amortization of acquisition fees and expenses (214,352) -------------- Investments in Local Limited Partnerships 20,899,188 Reserve for valuation of investment in Local Limited Partnership (590,197) -------------- $ 20,308,991
The Partnership's share of net losses of the Local Limited Partnerships, excluding Burbank, for the six months ended September 30, 1999 totaled $1,672,083. For the six months ended September 30, 1999, the Partnership has not recognized $645,324 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. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO COMBINED FINANCIAL STATEMENTS (continued) (Unaudited)
2. 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 $ 284,647 $ 6,393 $ - $ 291,040 Tenant security deposit escrow - 3,788 - 3,788 Investments in Local Limited Partnerships, net 20,243,592 - 65,399 20,308,991 Marketable securities, at fair value 2,574,918 - - 2,574,918 Prepaid assets - 1,489 - 1,489 Rental property at cost, net of accumulated depreciation - 740,524 25,852 766,376 Replacement reserve escrow - 9,246 - 9,246 Other assets 28,372 - - 28,372 ------------- ---------------- --------------- -------------- Total Assets $ 23,131,529 $ 761,440 $ 91,251 $ 23,984,220 ============= ================ =============== ============== Liabilities and Partners' Equity Accounts payable to affiliates $ 8,095 $ 9,700 $ (1,000) $ 16,795 Accounts payable and accrued expenses 40,175 17,032 - 57,207 Mortgage note payable - 705,329 - 705,329 Tenant security deposits payable - 3,742 - 3,742 Deferred revenue 127,686 - - 127,686 ------------- ---------------- --------------- -------------- Total Liabilities 175,956 735,803 (1,000) 910,759 ------------- ---------------- --------------- -------------- Minority interest in Local Limited Partnership - - 116,888 116,888 ------------- ---------------- --------------- -------------- General, Initial and Investor Limited Partners' Equity 22,974,977 25,637 (24,637) 22,975,977 Net unrealized losses on marketable securities (19,404) - - (19,404) ------------- ---------------- --------------- -------------- Total Partners' Equity 22,955,573 25,637 (24,637) 22,956,573 ------------- ---------------- --------------- -------------- Total Liabilities and Partners' Equity $ 23,131,529 $ 761,440 $ 91,251 $ 23,984,220 ============= ================ =============== ==============
(A) As of September 30, 1999. (B) As of June 30, 1999. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO COMBINED FINANCIAL STATEMENTS (continued) (Unaudited)
2. Supplemental Combining Schedules (continued) Statements of Operations For the Six Months Ended September 30, 1999 Boston Financial Qualified Housing Tax Credits Burbank Combined L.P. V (A) (B) Eliminations (A) Revenue: Rental $ - $ 60,116 $ - $ 60,116 Investment 78,541 114 - 78,655 Other 43,387 915 - 44,302 ------------- ------------- ------------- ------------- Total Revenue 121,928 61,145 - 183,073 ------------- ------------- ------------- ------------- Expenses: General and administrative 194,575 - - 194,575 Asset management fees, related party 122,997 - - 122,997 Rental operations, exclusive of depreciation - 22,052 - 22,052 Bad debt expense 174,739 - (1,000) 173,739 Interest - 35,314 - 35,314 Depreciation - 13,551 - 13,551 Amortization 12,411 - - 12,411 ------------- ------------- ------------- ------------- Total Expenses 504,722 70,917 (1,000) 574,639 ------------- ------------- ------------- ------------- Loss before minority interest in losses of Local Limited Partnership and equity in losses of Local Limited Partnerships (382,794) (9,772) 1,000 (391,566) Minority interest in losses of Local Limited Partnership - - 98 98 Equity in losses of Local Limited Partnerships (1,036,433) - 9,674 (1,026,759) ------------- ------------- ------------- ------------- Net Loss $ (1,419,227) $ (9,772) $ 10,772 $ (1,418,227) ============= ============= ============= =============
(A) For the six months ended September 30, 1999. (B) For the six months ended June 30, 1999. BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V (A Limited Partnership) NOTES TO COMBINED FINANCIAL STATEMENTS (continued) (Unaudited)
2. 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 $ (423,073) $ 279 $ - $ (422,794) ------------- -------------- --------------- -------------- Cash flows from investing activities: Purchases of marketable securities (768,983) - - (768,983) Proceeds from sales and maturities of marketable securities 835,665 - - 835,665 Additions to rental property - (1,561) - (1,561) Cash distributions received from Local Limited Partnerships 191,107 - - 191,107 Advance to Local Limited Partnership (180,000) - - (180,000) Repayment of advance to Local Limited Partnership 180,000 - - 180,000 ------------- -------------- --------------- -------------- Net cash provided by (used for) investing activities 257,789 (1,561) - 256,228 ------------- -------------- --------------- -------------- Cash flows from financing activities: Payment of mortgage principal - (1,544) - (1,544) Advance from affiliate - 8,700 - 8,700 ------------- -------------- --------------- -------------- Net cash provided by financing activities - 7,156 - 7,156 ------------- -------------- --------------- -------------- Net increase (decrease) in cash and cash equivalents (165,284) 5,874 - (159,410) Cash and cash equivalents, beginning 449,931 519 - 450,450 ------------- -------------- --------------- -------------- Cash and cash equivalents, ending $ 284,647 $ 6,393 $ - $ 291,040 ============= ============== =============== ==============
(A) For the six months ended September 30, 1999. (B) For the six months ended June 30, 1999. 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 are 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, interest rates and unanticipated delays or expenses on the part of the Partnership and their suppliers in achieving year 2000 compliance. Liquidity and Capital Resources At September 30, 1999, the Partnership (including Burbank) had cash and cash equivalents of $291,040, as compared with $450,450 at March 31, 1999. The decrease is primarily attributable to the use of cash for operating activities. This decrease was partially offset by proceeds from sales and maturities of marketable securities in excess of purchases of marketable securities, as well as cash distributions received from Local Limited Partnerships. Approximately $2,239,000 of marketable securities has been designated as Reserves by the Managing General Partner. The Reserves, as defined in the Partnership Agreement, 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, 1999, the Partnership had no contractual or other obligation to any Local Limited Partnership, which had not been paid or provided for. In the event a Local Limited Partnership encounters operating difficulties requiring additional funds, the Partnership might deem it in its best 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, 1999. Results of Operations The Partnership's results of operations for the three and six months ended September 30, 1999 resulted in net losses of $694,310 and $1,418,227, respectively, as compared to net losses of $715,274 and $1,608,504 for the same respective periods in 1998. The decrease in net loss is primarily attributable to a decrease in equity in losses of Local Limited Partnerships, partially offset by an increase in bad debts and legal expenses. Equity in losses of Local Limited Partnerships improved due to an increase in 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. 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 Most of the 27 Local Limited Partnerships have stabilized operations. The majority of these stabilized properties are operating at break-even or are generating positive operating cash flow. Historic New Center in Detroit, Michigan has been generating operating deficits due to low occupancy and collection problems. However, as previously reported, the Managing General Partner was successful in finalizing the negotiations with the lenders for a loan modification. This loan modification should allow the property to meet debt service coverage and provide capital for the physical improvements. In addition, a new property manager was hired in October 1998. The new property manager will focus on implementing a new marketing strategy and improving rent collections. As of June 30, 1999, occupancy for Historic New Center improved slightly to 95%. Further, the property is operating just above break-even. However, bad debt expense continues to be high as a result of poor collections. The Managing General Partner continues to meet with property management on a monthly basis to work on this issue. Westgate, located in North Dakota, has been experiencing declining occupancy. Occupancy as of March 31, 1999 was 85%. 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 response to these concerns and to reduce possible future risk, the Managing General Partner consummated the transfer of 50% of the Partnership's capital and profits in the properties to an affiliate of the Local General Partner in November 1997. Subsequently, the Local General Partner transferred both its general partner interest and 48.5% of the partnership interest in Westgate to a non-profit general partner effective June 17, 1999. As a result of this change, the date when the Managing General Partner has the right to transfer the remaining interest to the new Local General Partner was amended to reflect the June 17, 1999 effective date. Accordingly, the Managing General Partner has the right to transfer the Partnership's remaining interest to the new Local General Partner any time after one year from June 17, 1999. Further, the new Local General Partner has the right to call the remaining interest after the tax credit period has expired. As previously reported, in 1997, the Local General Partner of Wheeler House, located in Nashua, New Hampshire was removed due to financial insolvency and an affiliate of the Managing General Partner stepped in as temporary Local General Partner. As the new Local General Partner, the affiliate of the Managing General Partner proceeded to negotiate with the lender on temporary debt restructuring to reduce interest rates and extend the due date of the loan to 1998. At the same time, the Managing General Partner began exploring refinancing opportunities. A potential lender was identified and performed an appraisal in March. The appraisal showed inadequate loan to value coverage. The Managing General Partner is currently negotiating with the lender and is exploring measures to protect the Partnership's investment and the remaining tax credits generated by the property. However, it is possible that the Partnership will not be able to retain its interest in Wheeler House through 1999. A foreclosure would result in recapture of credits, the allocation of taxable income to the Partnership, and loss of future benefits associated with this property. Impact of Year 2000 The Managing General Partner's plan to resolve year 2000 issues involves the following four phases: assessment, remediation, testing and implementation. To date, the Managing General Partner has fully completed an assessment of all information systems that may not be operative subsequent to 1999 and has begun the remediation, testing and 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) Impact of Year 2000 (continued) implementation phase on both hardware and software systems. Because the hardware and software systems of both the Partnership and Local Limited Partnerships are generally the responsibility of obligated third parties, the plan primarily involves ongoing discussions with and obtaining written assurances from these third parties that pertinent systems will be 2000 compliant. In addition, neither the Partnership nor the Local Limited Partnerships are incurring significant additional costs since such expenses are principally covered under service contracts with vendors. As of November 1999, the General Partner is in the final stages of its Year 2000 remediation plan and believes all major systems are compliant; any systems still being updated are not considered significant to the Partnership's operations. However, despite the likelihood that all significant year 2000 issues are expected to be resolved in a timely manner, the Managing General Partner has no means of ensuring that all systems of outside vendors or other entities that impact operations will be 2000 compliant. The Managing General Partner does not believe that the inability of third parties to address their year 2000 issues in a timely manner will have a material impact on the Partnership. However, the effect of non-compliance by third parties is not readily determinable. Management has also evaluated a worst case scenario projection with respect to the year 2000 and expects any resulting disruption of either the Managing General Partner's activities or any Local Limited Partnership's operations to be short-term inconveniences. Such problems, however, are not likely to fully impede the ability to carry out necessary duties of the Partnership. Moreover, because expected problems under a worst case scenario are not extensively detrimental, and because the likelihood that all systems affecting the Partnership will be compliant before 2000, the Managing General Partner has determined that a formal contingency plan that responds to material system failures is not necessary. Other Development Lend Lease Real Estate Investments, Inc., ("Lend Lease") the U.S. subsidiary of Lend Lease Corporation and the leading U.S. institutional real estate advisor, as ranked by assets under management, announced on July 29, 1999 it had reached a memorandum of understanding to acquire The Boston Financial Group Limited Partnership ("Boston Financial"). Lend Lease closed the acquisition of Boston Financial on November 3, 1999. Headquartered in New York and Atlanta, Lend Lease Corporation has regional offices in 12 cities nationwide. The company ranks as the leading U.S. manager of tax-exempt assets invested in real estate. Lend Lease is a subsidiary of Lend Lease Corporation, an international real estate and financial services group listed on the Australian Stock Exchange. Worldwide, Lend Lease Corporation operates from more than 30 cities on five continents: North America, Europe, Asia, Australia and South America. In addition to real estate investments, the Lend Lease Group operates in the areas of property development, project management and construction, and capital services (infrastructure). Financial services activities include funds management, life insurance, and wealth protection 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, 1999. 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 12, 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 Q2 FY 2000
5 6-MOS MAR-31-2000 SEP-30-1999 291,040 2,574,918 000 000 000 000 766,376 000 23,984,220 000 000 000 000 000 22,956,573 23,984,220 000 183,073 000 000 539,325 000 35,314 000 000 000 000 000 000 (1,418,227) (20.37) 000 Included in Total assets is Tenant security deposit escrow of $3,788, Investments in Local Limited Partnerships, of $20,308,991, Prepaid assets of $1,489, Replacement reserve escrow of $9,246 and Other assets of $28,372. Included in Total liability and equity is Accounts payable to affiliates of $16,795, Accounts payable and accrued expenses of $57,207, Mortgage note payable of $705,329, Tenant security deposits payable of $3,742, Deferred revenue of $127,686 and Minority interest in Local Limited Partnerships of $116,888. Included in Total revenue is Rental of $60,116, and Investment of $78,655 and Other of $44,302. Included in Other expenses is General and administrative of $194,575, Bad debt expense of $173,739, Asset management fees of $122,997, Rental operations, exclusive of depreciation of $22,052, Depreciation of $13,551 and Amortization of $12,411. Included in Net loss is Minority interest in losses of Local Limited Partnership of $(98) and Equity in losses of Local Limited Partnerships of $1,026,759.
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