WNC HOUSING TAX CREDIT FUND VI, L.P.,
SERIES 7
[GRAPHIC OMITTED]
Supplement Dated August 14, 2000
To Prospectus Dated September 3, 1999
This supplement is part of, and should be read in conjunction with, the
prospectus of WNC Housing Tax Credit Fund VI, L.P., Series 7 dated September 3,
1999 and the supplements to prospectus dated September 3, 1999 and April 15,
2000. The supplement dated September 3, 1999 is not for use in all states.
TABLE OF CONTENTS
Page
Status of Series 7 Offering....................................................1
Local Limited Partnership Investments..........................................1
STATUS OF SERIES 7 OFFERING
As of the date hereof, Series 7 has received subscriptions in the amount of
$12,281,955 (12,282 Units), of which $549,000 currently is represented by
investor promissory notes.
LOCAL LIMITED PARTNERSHIP INVESTMENTS
Series 7 has identified for acquisition or acquired an interest in: Hickory
Lane Partners, L.P., an Iowa limited partnership ("Hickory"); and Pierce Street
Partners, L.P., an Iowa limited partnership ("Pierce"). These entities are
referred to herein as local limited partnerships.
Hickory owns the Shire Apartments in Sioux City, Iowa; and Pierce owns the
Martin Tower Apartments in Sioux City, Iowa.
WNC & Associates, Inc. believes that Series 7 is reasonably likely to
acquire or retain an interest in the local limited partnerships identified
herein. However, Series 7 may not do so as a result of one or more factors. For
example, a local limited partnership identified herein may fail to satisfy one
or more conditions precedent to the investment of Series 7. Moreover, the terms
of an acquisition may differ from those as described. Accordingly, investors
should not rely on the ability of Series 7 to acquire or retain an investment in
the local limited partnerships identified herein on the indicated terms in
deciding whether to invest in Series 7.
The following tables contain information concerning the local limited
partnerships identified herein and their respective properties:
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ACTUAL OR
ESTIMATED ESTIMATED PERMANENT
LOCAL PROJECT CONSTRUC- DEVELOP- MORTGAGE ANTICIPATED
LIMITED NAME AND TION MENT COST NUMBER OF BASIC LOAN AGGREGATE
PARTNER- NUMBER LOCATION COMPLETION (INCLUDING APARTMENT MONTHLY PRINCIPAL TAX CREDITS
SHIP OF BUILDINGS OF PROPERTY DATE LAND COST) UNITS RENTS AMOUNT (1)
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
---------------- ------------- ------------ ----------- ----------- ----------- ---------------- ------------ ------------
HICKORY Shire Sioux City December $2,369,600 40 1BR $576 $1,950,000 $844,400
Apartments (Woodbury 2000 units IFA (4) LIHTC
County),
1 building Iowa RAP on 40
(2) units (3)
---------------- ------------- ------------ ----------- ----------- ----------- ---------------- ------------ ------------
---------------- ------------- ------------ ----------- ----------- ----------- ---------------- ------------ ------------
PIERCE Martin Tower Sioux City December $5,131,500 80 1BR $702 $2,680,000 $1,674,675
Apartments (Woodbury 2000 units IFA (4) LIHTC
County),
1 building Iowa RAP on 80 $248,455
(2) units (3) FHTC (5)
---------------- ------------- ------------ ----------- ----------- ----------- ---------------- ------------ ------------
<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. See the discussion under "The Low Income
Housing Tax Credit - Utilization of the Low Income Housing Tax Credit" in the
prospectus.
(2) The apartment complex is designed for senior citizens and is a
rehabilitation property.
(3) The United States Department of Agriculture, Rural Development provides rent
subsidies known as Rental Assistance Payments 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. See
"Other Government Assistance Programs" in the prospectus.
(4) Iowa Finance Authority will provide the mortgage loan for a term of 30 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.
(5) The apartment complex will also generate Federal historic tax credits.
See "Federal Income Tax Considerations - Historic Tax Credits" in the
prospectus.
</FN>
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Sioux City (Hickory and Pierce): 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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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 PARTNERS MANAGER (1) DEVELOPMENT REFINANCING CONTRIBUTION
FEE (2) PROCEEDS (5) (6)
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<S> <C> <C> <C> <C> <C> <C>
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
HICKORY Lewis F. Oakleaf Real $250,000 Series 7: 15% 99.98/.01/.01 $663,473
Weinberg Estate but not 30/70
(7) Management greater than
(9) $3000
Weinberg LGP: 70%
Investments, The balance:
Inc. (7) 30/70
Sioux Falls
Environmental
Access, Inc.
(8)
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
PIERCE Lewis F. Oakleaf Real $605,000 Series 7: 15% 99.98/.01/.01 $1,486,795
Weinberg Estate but not 30/70
(7) Management (9) greater than
$7,500
Weinberg LGP: 70%
Investments, The balance:
Inc. (7) 30/70
Sioux Falls
Environmental
Access, Inc.
(8)
---------------- --------------- ---------------- --------------- ---------------- --------------- ----------------
<FN>
(1) Each 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) Each 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. This payment will be made in installments
after receipt of each installment of the capital contributions made by Series 7.
(3) Reflects the amount of the net cash flow from operations, if any, to be
distributed to Series 7 and the local general partners of each 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.
(6) Series 7 normally will make its capital contributions to a local limited
partnership in stages, with each contribution due when certain conditions
regarding construction or operations of the apartment complex have been
fulfilled. In the case of a completed apartment complex, Series 7 may pay its
capital contributions in full at the time of its acquisition of the local
limited partnership. Series 7 expects to negotiate adjuster provisions providing
for a reduction in the capital contributions in the event the tax credits are
less than originally anticipated. See "Investment Policies" and "Terms of the
Local Limited Partnership Agreements" under "Investment Objectives and Policies"
in the prospectus.
(7) Lewis F. Weinberg is president of Weinberg Investments, Inc. Since
1970, Weinberg Investments, Inc. has developed 20 affordable housing properties.
Mr. Weinberg has represented to Series 7 that he had a net worth in excess of
$3,500,000 as of May 31, 2000.
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(8) Sioux Falls Environmental Access, Inc. is a South Dakota non-profit
corporation which was formed in 1975. It has developed one affordable housing
property.
(9) Weinberg Investments, Inc. is the majority owner of Oakleaf Real Estate
Management, a South Dakota corporation, which currently manages 15 affordable
housing properties consisting of 568 units.
</FN>
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