SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 2, 2000
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(Exact name of registrant as specified in its charter)
California 333-76435 33-0761517
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
3158 Redhill Avenue, Suite 120, Costa Mesa, California 92626
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (714) 662-5565
N/A
Former name or former address, if changed since last report)
024.edg
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Item 2. Acquisition or Disposition of Assets
WNC Housing Tax Credit Fund VI, L.P., Series 7 ("Series 7") has
acquired an interest in Pierce Street Partners, L.P., an Iowa limited
partnership (the "local limited partnership" or "PIERCE"). PIERCE owns the
Martin Tower Apartments in Sioux City, Iowa.
The following table contains information concerning the apartment
complex and the local limited partnership identified herein:
<TABLE>
ACTUAL OR
ESTIMATED ESTIMATED PERMANENT
LOCAL PROJECT CONSTRUC- DEVELOP- MORTGAGE ANTICIPATED
LIMITED NAME AND TION MENT COST NUMBER OF BASIC LOAN AAGGREGATE
PARTNER- NUMBER LOCATION COMPLETION (INCLUDING APARTMENT MONTHLY PRINCIPAL TAX CREDITS
SHIP OF BUILDINGS OF PROPERTY DATE LAND COST) UNITS RENTS AMOUNT (1)
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------- ------------- ------------ ------------ -------------- ------------- ------------- ------------ ------------
----------- ------------- ------------ ------------ -------------- ------------- ------------- ------------ ------------
PIERCE Martin Tower Sioux City December $5,131,500 80 1BR $702 $2,600,000 $1,726,570
Apartments (Woodbury 2000 units SNB (5) LIHTC
County),
1 building Iowa HAP on 80 $248,455
(2)(3) units (4) FHTC (6)
---------------- ------------- ------------ ----------- ----------- ----------- ---------------- ------------ ------------
<FN>
(1) Low income housing tax credits are available over a 10-year period. In the
first credit year, Series 7 will receive only that percentage of the annual
credit which corresponds to the number of months during which Series 7 was a
limited partner of the local limited partnership, and during which the apartment
complex was completed and in service.
(2) The apartment complex is designed for senior citizens.
(3) The apartment complex is a rehabilitation property.
(4) The U.S. Department of Housing & Urban Development provides rent subsidies
known as Housing Assistance Payments (HAP) and the U.S. Department of
Agriculture, Rural Development provides rent subsidies known as Rental
Assistance Payments (RAP) to certain projects. Funds from such payments are
applied to cover any difference between rents required to be paid by tenants and
the basic rent established for the applicable project.
(5) Security National Bank will provide the mortgage loan for a term of 15 years
at an annual interest rate of 7.75% initially, with the rate adjusted every 60
months based on the average 5-year Treasury rate plus 2.75%. Principal and
interest will be payable monthly based on a 30-year amortization schedule.
Outstanding principal and interest will be due on maturity of the loan.
(6) The apartment complex will also generate Federal historic tax credits.
</FN>
</TABLE>
Sioux City is in Woodbury County, Iowa at the intersection of Interstate
Highway 29 and U.S. Highway 20, approximately 95 miles north of Omaha, Nebraska,
and 90 miles south of Sioux Falls, South Dakota. The population is approximately
83,000, and the major employers for Sioux City residents are Gateway
(computers), MCI WorldCom (communications), and Mercy Medical Center (medical).
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<TABLE>
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
SHARING
RATIOS:
ALLOCATIONS
LOCAL LOCAL LOCAL GENERAL SHARING RATIOS: (4) SERIES 7's
LIMITED GENERAL PROPERTY PARTNER CASH FLOW (3) AND SALE OR CAPITAL
PARTNERSHIP PARTNER(S) MANAGER (1) DEVELOPMENT REFINANCING CONTRIBUTION
FEE (2) PROCEEDS (5)
<S> <C> <C> <C> <C> <C> <C>
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
PIERCE Lewis F. Oakleaf Real $605,000 Series 7: 99.98/.01/.01 $1,525,709
Weinberg Estate 15% but 30/70
Management not greater
than
Weinberg $7,500
Investments, LGP: 70% of
Inc. the
balance
The balance:
Sioux Falls 30/70
Environmental
Access, Inc.
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
<FN>
(1) The local limited partnership will employ either its local general
partners or an affiliate of its local general partners, or a third party, as a
property manager for leasing and management of the apartment complex. The
maximum fee payable is determined pursuant to lender regulations.
(2) The local limited partnership will pay its local general partners or an
affiliate of its local general partners a development fee in the amount set
forth, for services incident to the development and construction of the
apartment complex. Services include: negotiating the financing commitments for
the apartment complex, securing necessary approvals and permits for the
development and construction of the apartment complex, and obtaining allocations
of low income housing tax credits.
(3) Reflects the amount of the net cash flow from operations, if any, to be
distributed to Series 7 (WNC) and the local general partners (LGP) of the
local limited partnership for each year of operations. Net cash flow generally
is equal to the excess of revenues over expenses, including the property
manager's fee.
(4) Subject to certain special allocations, reflects the respective percentage
interests in profits, losses and low income housing tax credits of (i) Series 7,
(ii) WNC Housing, L.P., an affiliate of WNC & Associates, Inc. which is the
special limited partner, and (iii) the local general partners.
(5) Reflects the percentage interests in any net cash proceeds from sale or
refinancing of the apartment complex of (i) Series 7, and (ii) the local general
partners. Net cash proceeds from sale or refinancing of the apartment complex is
equal to the sale proceeds less payment of the mortgage loan and other local
limited partnership obligations.
</FN>
</TABLE>
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Item 7. Financial Statements and Exhibits
a. Financial Statements of Businesses Acquired
Not Applicable
b. Proforma Financial Information*
c. Exhibits
10.1 Second Amended and Restated Agreement of Limited Partnership of
Pierce Street Partners Limited Partnership
----------
*To be filed upon availability.
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<PAGE>
SIGNATURES
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 hereunto duly authorized.
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
Date: October 11, 2000 By: WNC & Associates, Inc.,
General Partner
By: /s/ MICHAEL L. DICKENSON
Michael L. Dickenson,
Vice President - Chief Financial
Officer
5
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EXHIBIT INDEX
Exhibit
Number Description
10.1 Second Amended and Restated Agreement of Limited Partnership of
Pierce Street Partners Limited Partnership
