WNC HOUSING TAX CREDIT FUND VI, L.P.,
SERIES 6
Supplement Dated August 20, 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 6 ("Series 6") dated
June 23, 1997 (the "Prospectus"), and the Supplement to Prospectus dated July 9,
1998. Capitalized terms used but not defined in this Supplement have the
meanings given to them in the Prospectus.
STATUS OF SERIES 6 OFFERING
As of the date hereof, Series 6 has received subscriptions in the
amount of $1,566,000 (1,566 Units), of which $97,500 currently is represented by
Promissory Notes.
LOCAL LIMITED PARTNERSHIP INVESTMENTS
Included herein is a discussion of five Local Limited Partnership
Interests acquired or identified for acquisition by Series 6. The seven
Apartment Complexes owned by these Local Limited Partnerships are located in
four states and are being developed and constructed by four different
development teams. Each of the Apartment Complexes has received a reservation of
Low Income Housing Credits. While the Fund Manager believes that Series 6 is
reasonably likely to retain or acquire an interest in each of these Local
Limited Partnerships, Series 6 may not do so as a result of the failure by a
Local Limited Partnership to satisfy one or more conditions precedent to the
payment of each installment payment, the inability of Series 6 to raise
additional capital necessary to complete the purchase of the Local Limited
Partnership Interests identified herein, the purchase of Local Limited
Partnership Interests other than those identified herein, or other factors.
Moreover, the terms of any acquisition may differ from those as described.
Accordingly, investors should not rely on the ability of Series 6 to acquire an
investment in all these Local Limited Partnerships on the indicated terms in
deciding whether to invest in Series 6.
Series 6 has acquired a Local Limited Partnership Interest in Trenton
Village Apts., L.P., a Missouri limited partnership ("TRENTON"). Series 6
expects to acquire a Local Limited Partnership Interest in Ottawa I, L.P., an
Illinois limited partnership ("OTTAWA"); Preservation Partners I, L.P., an
Illinois limited partnership ("PRESERVATION"); United Development Co., L.P. -
97.0, a Tennessee limited partnership ("UNITED 97.0"); and West Mobile County
Housing, Ltd., an Alabama limited partnership ("WEST MOBILE").
OTTAWA owns the Highland Apartments in Oglesby, Illinois; PRESERVATION
owns the Autumn Ridge I Apartments in Pontiac, Illinois ("PRESERVATION AUTUMN"),
the Pontiac "A" Apartments in Pontiac, Illinois ("PRESERVATION PONTIAC"), and
the Shumway Apartments in Taylorville, Illinois ("PRESERVATION SHUMWAY");
TRENTON owns the Trenton Village Apartments in Trenton, Missouri; UNITED 97.0
owns the Sixty Homes for Memphis (single-family houses) in Memphis, Tennessee;
and WEST MOBILE owns the Peppertree Apartments in Theodore, Alabama.
The following tables contain information concerning the Properties and
the Local Limited Partnerships identified herein:
1
<PAGE>
<TABLE>
LOCAL
ACTUAL OR LIMITED
ESTIMATED ESTIMATED PERMANENT PARTNER-
PROPERTY CONSTRUC- DEVELOP- MORTGAGE SHIP'S YEAR
LOCAL NAME AND COMPLETION 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>
OTTAWA Highland Oglesby June 1999 $1,733,549 16 1BR units $230-372 $1,192,341 $592,540 1999
Apartments (La Salle $275-445 RD (3)
County), 15 2BR units
8 Buildings Illinois
(2)
- ----------- -------------- ------------ ------------- ------------ ------------ ----------- ------------- ------------- -----------
PRESERVATION Autumn Ridge Pontiac June 1999 $790,000 8 1BR units $229-376 $631,000 $244,630 1999
(AUTUMN) I (Livingston 8 2BR units $271-449 RD (3)
Apartments County),
Illinois
2 Buildings
(2)
(PONTIAC) Pontiac "A" Pontiac June 1999 $747,361 10 1BR units $221-368 $564,000 $244,290 1999
Apartments (Livingston $273-451 RD (3)
County), 10 2BR units
5 Buildings Illinois
(2)
(SHUMWAY) Shumway Taylorville June 1999 $818,618 13 1BR units $208-345 $623,100 $268,140 1999
Apartments (Christian $425 RD (3)
County), 11 2BR units
5 Buildings Illinois
(2)
- ----------- -------------- ------------ ------------- ------------ ------------ ----------- ------------- ------------- -----------
TRENTON Trenton Trenton October 1999 $2,075,016 24 2BR units $280 $730,000 $1,507,270 2000
Village (Grundy $335 MHDC (4)
Apartments County), 8 3BR units
Missouri
8 Buildings
- ----------- -------------- ------------ ------------- ------------ ------------ ----------- ------------- ------------- -----------
UNITED Sixty Homes Memphis June 1999 $3,655,250 60 4BR homes $470-586 $1,311,517 $3,921,441 1999
97.0 for Memphis (Shelby STB (6)
County),
60 Homes Tennessee
(5)
- ----------- -------------- ------------ ------------- ------------ ------------ ----------- ------------- ------------- -----------
WEST Peppertree Theodore August 1999 $3,245,436 8 1BR units $247 $565,000 $2,754,975 1999
MOBILE Apartments (Mobile 33 2BR units $295 CB (7)
County), $331
6 Buildings Alabama 14 3BR units $791,000
AHFA (8)
<FN>
(1) Low Income Housing Credits are available over a 10-year period. For the year
in which the credit first becomes available, Series 6 will receive only that
percentage of the annual credit which corresponds to the number of months during
which Series 6 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) Rehabilitation property.
(3) Rural Development ("RD") will provide the mortgage loan for a term of 40
years at a market rate of interest prior to reduction thereof by a mortgage
interest subsidy to an annual rate of 1%. Principal and interest will be payable
monthly, based on a 40-year amortization schedule.
(4) Missouri Housing Development Commission ("MHDC") will provide the mortgage
loan for a term of 40 years at an annual interest rate of 1%. Principal and
interest will be payable monthly, based on a 40-year amortization schedule.
(5) Property designed for senior citizens and families. The Property consists of
60 single-family homes, interspersed throughout Memphis.
2
<PAGE>
(6) Southtrust Bank, National Association ("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.
(7) Colonial Bank ("CB") will provide the first mortgage loan for a term of 20
years at an annual interest rate of 9.5%. Principal and interest will be payable
monthly, based on a 20-year amortization schedule.
(8) Alabama Housing Finance Authority ("AHFA"), using HOME funds, will provide
the second mortgage loan for a term of 20 years at an annual interest rate of
0.5%. Principal and interest will be payable monthly, based on a 20-year
amortization schedule.
</FN>
</TABLE>
Oglesby (OTTAWA): Oglesby (population 3,600) is in La Salle County,
Illinois, on U. S. Highway 51, approximately 100 miles southwest of Chicago. The
major employers for Oglesby residents are Peru Mall, LTV Steel, and St.
Margaret's Hospital.
Pontiac (PRESERVATION AUTUMN) & (PRESERVATION PONTIAC): Pontiac (population
11,400) is the county seat of Livingston County, Illinois, and is located on
Interstate Highway 55, approximately 40 miles northeast of Bloomington. The
major employers for Pontiac residents are Caterpillar Inc. (engine components),
Pontiac Correctional Facility, R. R. Donnelley & Sons, Inc. (financial printer),
Interlake, Inc. (storage racks and systems) and OSF Saint James Hosptial.
Taylorville (PRESERVATION SHUMWAY): Taylorville (population 11,000) is the
county seat of Christian County, Illinois, and is located at the intersection of
State Highways 48 and 29, approximately 20 miles southeast of Springfield. The
major employers for Taylorville residents are St. Vincent Memorial Hospital,
Taylorville CUSUD #3 (school district), and Christian County Mental Health
Association.
Trenton (TRENTON): Trenton (population 6,000) is the county seat of Grundy
County, Missouri, and is located at the intersection of U.S. Highway 65 and
State Highway 6, approximately 100 miles northeast of Kansas City. The major
employers for Trenton residents are Nestles, USA (processed foods), Modine
Manufacturing (radiators), and Wright Memorial (hospital).
Memphis (UNITED 97.0): Memphis (population 610,000) is in Shelby County, in
the southwest corner of Tennessee, at the intersection of Interstate Highways 40
and 55. The major employers for Memphis residents are Federal Express
Corporation, the U.S. Government, and the Memphis City Board of Education.
Theodore (WEST MOBILE): Theodore (population 6,500) is in Mobile County, in
southern Alabama near the Gulf of Mexico, near the intersection of Interstate
Highway 10 and U.S. Highway 90, approximately 20 miles southwest of Mobile. The
major employers for Theodore residents are Mobile County School System,
University of South Alabama, and University of South Alabama Medical Facilities.
3
<PAGE>
<TABLE>
LOCAL ESTIMATED
GENERAL SHARING RATIOS: ACQUISITION
LOCAL LOCAL PARTNER(S) SHARING ALLOCATIONS (4) AND FEES PAYABLE
LIMITED GENERAL PROPERTY DEVELOPMENT RATIOS: SALE OR REFINANCING SERIES 6's CAPITAL TO FUND
PARTNERS PARTNERS MANAGER (1) FEE (2) CASH FLOW (3) PROCEEDS(5) CONTRIBUTION (6) MANAGER
- ------- ------------ ------------ -------------- --------------- ------------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
OTTAWA Michael Professional $225,116 WNC: $750 99.98/.01/.01 $402,887 $37,400
K. Moore Property LGP: 70% of 40/60
(7) Management, the balance
Inc. (7) The balance:
50/50
Affordable
Housing
Development
Fund,
Inc.
(8)
- ------- ------------ ------------ -------------- --------------- ------------------- ------------------- ---------------
PRESERVAT Michael Professional $103,044 WNC: $750 99.98/.01/.01 $166,332 $15,400
(AUTUMN) K. Moore Property LGP: 70% of 40/60
(7) Management, the balance
Inc. (7) The balance:
50/50
Affordable
Housing
Development
Fund,
Inc.
(8)
(PONTIAC) $93,568 $166,101 $15,400
(SHUMWAY) $106,776 $173,469 $16,100
- ------- ------------ ------------ -------------- --------------- ------------------- ------------------- ---------------
TRENTON MBL Invesco $245,610 WNC: Greater 98.98/.01/.01/1(11) $1,024,738 $95,000
Development Properties, of 40/60
Co. (9) Inc. (10) 15% or $500
LGP: 70% of
the balance
The balance:
15/85
- ------- ------------ ------------ -------------- --------------- ------------------- ------------------- ---------------
UNITED Harold E. Buehler $139,000 WNC: Greater 99.98/.01/.01 $2,812,904 $260,800
97.0 Buehler, Enterprises, of 20/80
Sr. Inc. (13) 15% or $5,000
and Jo LGP: 70% of
Ellen the balance
Buehler The balance:
(12) 20/80
- ------- ------------ ------------ -------------- --------------- ------------------- ------------------- ---------------
WEST Thomas H. Apartment $408,500 WNC: Greater 99.98/.01/.01 $1,873,008 $173,700
MOBILE Cooksey Services of 20% or 40/60
(14) and $3,000
Management, LGP: 70% of
Inc. (15) the balance
The balance:
50/50
<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 6.
(3) Reflects the amount of the net cash flow from operations, if any, to be
distributed to Series 6 ("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 (a) except in the
case of TRENTON (i) Series 6, (ii) WNC Housing, L.P., an Affiliate of the
4
<PAGE>
Sponsor which is the special limited partner, and (iii) the Local General
Partner(s); and (b) in the case of TRENTON (i) Series 6, (ii) WNC Housing, L.P.,
(iii) D. Kim Lingle, the original limited partner and president of the Local
General Partner, and (iv) the Local General Partner.
(5) Reflects the percentage interests of (i) Series 6 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 6; the capital contribution of the special
limited partner; and the capital contribution of the Local General Partner(s)
(and, in the case of TRENTON, the original limited partner).
(6) Series 6 will make its capital contributions to the Local Limited
Partnership in stages, with each contribution due when certain conditions
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) Michael K. Moore is the president of Professional Property Management, Inc.
("PPM"). The corporation was formed to develop, acquire and manage apartment
complexes receiving Government Assistance. PPM currently manages more than 100
low-income apartment complexes, 40 of which are receiving Low Income Housing
Credits. Mr. Moore, age 36, has represented to Series 6 that, as of September
30, 1996, he had a net worth in excess of $1,000,000.
(8) The Fund Manager does not yet have any information respecting Affordable
Housing Development Fund, Inc.
(9) D. Kim Lingle is the president and owner of MBL Development, Co., which has
the primary goal of developing and constructing affordable housing. Mr. Lingle
has a background in banking and development. MBL Development, Co. has
represented to Series 6 that, as of March 31, 1998, its total shareholder's
equity was in excess of $1,000,000. Construction completion and operating
deficit guarantees are being provided by Mr. Lingle. Mr. Lingle, age 41, has
represented to Series 6 that, as of June 30, 1997, he had a net worth in excess
of $1,000,000.
(10) Invesco Properties, Inc. was formed in May 1998 by D. Kim Lingle.
Currently, Invesco Properties, Inc. manages seven properties consisting of 250
units in Missouri and Iowa, all of which are Tax Credit properties.
(11) TRENTON is expected to generate Missouri Tax Credits in the amount of
approximately $580,000, all of which will be allocated to the original limited
partner.
(12) Harold E. Buehler, Sr. and Jo Ellen Buehler, both age 49, have represented
to Series 6 that, as of March 15, 1998, they had a net worth in excess of
$6,000,000.
(13) 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.
(14) Thomas H. Cooksey has been involved in real estate development and
apartment management since 1980 and, currently, is the general partner of
partnerships that own apartment complexes located in 65 towns, principally in
Alabama. Mr. Cooksey, age 57, has represented to Series 6 that, as of June 1998,
he had a net worth in excess of $10,000,000
(15) Apartment Services and Management Co. was formed in 1986. Thomas H.
Cooksey is president and owner of 50% of the corporation. Apartment Services and
Management Co. manages in excess of 2,700 apartment units, more than 1,750 of
which are Tax Credit units.
</FN>
</TABLE>
5
