WNC HOUSING TAX CREDIT FUND VI, L.P.,
SERIES 5
Supplement Dated April 30, 1998
To Prospectus Dated June 23, 1997
This Supplement is part of, and should be read in conjunction with, the
Prospectus of WNC Housing Tax Credit Fund VI, L.P., Series 5 ("Series 5") dated
June 23, 1997 (the "Prospectus"), the Supplement to Prospectus dated January 21,
1998 and the Supplement to Prospectus dated March 31, 1998. Capitalized terms
used but not defined in this Supplement have the meanings given to them in the
Prospectus.
STATUS OF THE SERIES 5 OFFERING
As of the date hereof, Series 5 has received subscriptions in the
amount of $16,919,405 (16,974 Units), of which $541,150 currently is represented
by Promissory Notes.
LOCAL LIMITED PARTNERSHIP INVESTMENTS
Series 5 has acquired a Local Limited Partnership Interest in United
Development Corp., L.P. - 97.1, a Tennessee limited partnership ("UNITED 97.1");
and United Development Corp., L.P. - 97.2, a Tennessee limited partnership
("UNITED 97.2"). Each of the Local Limited Partnerships own a single-family
housing development in Memphis, Tennessee (together the "Properties").
The following tables contain information concerning the homes and the
Local Limited Partnerships identified herein:
<TABLE>
LOCAL
ACTUAL OR LIMITED
ESTIMATED ESTIMATED PERMANENT PARTNER-
PROJECT CONSTRUC- DEVELOP- MORTGAGE SHIP'S YEAR
LOCAL NAME AND TION MENT COST NUMBER OF BASIC LOAN ANTICIPATED CREDITS
LIMITED NUMBER LOCATION COMPLETION (INCLUDING APARTMENT MONTHLY PRINCIPAL TAX CREDITS TO BE FIRST
PARTNERSHIP OF BUILDINGS OF PROPERTY DATE LAND COST) UNITS RENTS AMOUNT (1) AVAILABLE
<S> <C> <C> <C> <C> <C> <C> <C> <C>
UNITED Forty Homes Memphis December $2,759,571 40 3BR $450-504 $1,065,834 $2,693,230 1998
97.1 for the (Shelby 1998 Homes STB (3)
Greater County),
Lemoyne Tennessee
Garden's
Community
40 homes
(2)
UNITED Mallory Memphis May 1998 $1,140,543 20 2BR $396-444 $380,392 $1,061,547 1998
97.2 Heights (Shelby Homes STB (3)
Homes County),
Tennessee
20 homes
(4)
<FN>
(1) Low Income Housing Credits are available over a 10-year period. For the
year in which the credit first becomes available, Series 5 will receive
only that percentage of the annual credit which corresponds to the
number of months during which Series 5 was a limited partner of the
Local Limited Partnership, and during which the Properties were
completed and in service. See the discussion under "The Low Income
Housing Credit" in the Prospectus.
(2) Property designed for senior citizens and families.
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<PAGE>
(3) South Trust Bank. ("STB") will provide the mortgage loan for a term
of 15 years at an annual interest rate of 9.5%. Principal and
interest will be payable monthly, based on a 30-year amortization
schedule. Outstanding principal will be due upon maturity.
(4) Property designed for senior citizens.
</FN>
</TABLE>
Memphis (UNITED 97.1 and UNITED 97.2): Memphis (population 610,000) is in
Shelby County, at the southwest corner of Tennessee, at the intersection of
Interstate Highways 40, 55, and 240. The major employers for Memphis residents
are Federal Express Corporation, the U.S. Government, and the Memphis City Board
of Education
<TABLE>
LOCAL ESTIMATED
GENERAL SHARING RATIOS: ACQUISITION
LOCAL LOCAL PARTNER(S) SHARING RATIOS: ALLOCATIONS (4) AND FEES PAYABLE
LIMITED GENERAL PROPERTY DEVELOPMENT CASH SALE OR REFINANCING SERIES 5's CAPITAL TO FUND
PARTNER PARTNERS MANAGER (1) FEE (2) FLOW (3) PROCEEDS (5) CONTRIBUTION (6) MANAGER
<S> <C> <C> <C> <C> <C> <C>
UNITED Harold E. Buehler $142,000 WNC: Greater 99.98/.01/.01 $1,844,678 $171,000
97.1 Buehler, Enterprises, of 20/80
Sr. and Jo Inc. (8) 15% or $5,000
Ellen LGP: 70%
Schaffer The balance:
Buehler (7) 20/80
UNITED Harold E. Buehler $60,000 WNC: Greater 99.98/.01/.01 $743,008 $69,000
97.2 Buehler, Enterprises, of 20/80
Sr., and Inc. (8) 15% or $5,000
Jo Ellen LGP: 70%
Schaffer The balance:
Buehler (7) 20/80
<FN>
(1) The maximum annual management fee payable to the property manager generally
is determined pursuant to lender regulations. Each Local General Partner is
authorized to employ either itself or one of its Affiliates, or a third party,
as property manager for leasing and management of the Properties so long as the
fee therefore does not exceed the amount authorized and approved by the lender
for the Properties.
(2) Each Local Limited Partnership will pay its Local General Partner(s) or an
Affiliate of its Local General Partner(s) a development fee in the amount set
forth, for services incident to the development and construction of the
Properties, which services include: negotiating the financing commitments for
the Properties; securing necessary approvals and permits for the development and
construction of the Properties; and obtaining allocations of Low Income Housing
Credits. This payment will be made in installments after receipt of each
installment of the capital contributions made by Series 5.
(3) Reflects the amount of the net cash flow from operations, if any, to be
distributed to Series 5 ("WNC") and the Local General Partner(s) ("LGP") of the
Local Limited Partnership for each year of operations. Generally, to the extent
that the specific dollar amounts which are to be paid to WNC are not paid
annually, they will accrue and be paid from sale or refinancing proceeds as an
obligation of the Local Limited Partnership.
(4) Subject to certain special allocations, reflects the respective percentage
interests in profits, losses and Low Income Housing Credits of (i) Series 5,
(ii) WNC Housing, L.P., an Affiliate of the Sponsor which is the special limited
partner, and (iii) the Local General Partner(s).
(5) Reflects the percentage interests of (i) Series 5 and (ii) the Local General
Partner(s), in any net cash proceeds from sale or refinancing of the Properties,
after payment of the mortgage loan and other Local Limited Partnership
obligations (see, e.g., note 3), and the following, in the order set forth: the
capital contributions of Series 5; and the capital contribution of the Local
General Partner(s).
(6) Series 5 will make its capital contributions to the Local Limited
Partnership in stages, with each contribution due when certain conditions
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<PAGE>
regarding construction or operations of the Properties have been fulfilled. See
"Investment Policies" and "Terms of the Local Limited Partnership Agreements"
under "Investment Objectives and Policies" in the Prospectus.
(7) Construction completion and operating deficit guarantees will be
provided by Harold E. Buehler, Sr. and Jo Ellen Schaffer Buehler. Mr. and Mrs.
Buehler (both age 49) have represented to Series 5 that, as of March 15, 1998,
they had a net worth in excess of $9,000,000.
(8) Buehler Enterprises, Inc. is a Tennessee corporation which was formed
in 1984 by Harold E. Buehler, Sr. Buehler Enterprises, Inc. currently manages
approximately 200 units consisting primarily of single family homes and duplexes
in Memphis.
</FN>
</TABLE>
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