FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________ to ___________
Commission file number: 333-76435
WNC HOUSING TAX CREDIT FUND VI, L.P., Series 7
WNC HOUSING TAX CREDIT FUND VI, L.P., Series 8
California 33-0761517 - Series 7
33-0761519 - Series 8
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3158 Redhill Avenue, Suite 120
Costa Mesa, CA 92626
(Address of principal executive offices)
(714) 662-5565
(Telephone number)
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 .
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
INDEX TO FORM 10-Q
For the Quarter Ended June 30, 2000
PART I. FINANCIAL INFORMATION
Series 7
Item 1. Financial Statements
Balance Sheets
June 30, 2000 and March 31, 2000 ....................................3
Statement of Operations
For the three months ended June 30, 2000.............................4
Statement of Partners' Equity (Deficit)
For the three months ended June 30, 2000.............................5
Statement of Cash Flows
For the three months ended June 30, 2000.............................6
Notes to Financial Statements...........................................7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...............................13
Item 3. Quantitative and Qualitative Disclosures About Market Risks.......15
Series 8
Series 8 currently has no assets or liabilities and has had no operations.
Accordingly, no financial information is included herein for Series 8.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings...............................................15
Item 6. Exhibits and Reports on Form 8-K................................15
Signatures...............................................................16
2
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, 2000 March 31, 2000
----------------------- ----------------------
(unaudited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 6,929,346 $ 4,295,471
Funds held in escrow disbursement account 142,786 142,815
Subscriptions receivable 696,538 583,635
Investments in limited partnerships (Note 2) 1,798,648 1,284,221
Loans receivable 154,000 154,000
Other assets 514 810
----------------------- ----------------------
$ 9,721,832 $ 6,460,952
======================= ======================
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities:
Due to limited partnerships $ 265,389 $ 502,601
Accrued fees and expenses due to General
Partner and affiliates (Note 3) 654,834 145,659
----------------------- ----------------------
Total liabilities 920,223 648,260
----------------------- ----------------------
Partners' equity (deficit):
General Partner (599) (301)
Limited Partners (25,000 units authorized and
10,611 and 7,147 units issued and outstanding at
June 30, 2000 and March 31, 2000) 8,802,208 5,812,993
----------------------- ----------------------
Total partners' equity 8,801,609 5,812,692
----------------------- ----------------------
$ 9,721,832 $ 6,460,952
======================= ======================
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2000
(unaudited)
Interest income $ 66,709
-----------------
66,709
-----------------
Operating expenses:
Amortization (Note 2) 5,362
Asset management fees (Note 3) 1,744
Other 7,190
-----------------
Total operating expenses 14,296
-----------------
Income from operations 52,413
-----------------
Equity in losses of limited partnerships (Note 2) (37,176)
-----------------
Net income $ 15,237
=================
Net income allocated to:
General Partner $ 152
=================
Limited Partners $ 15,085
=================
Net income per limited partnership unit $ 1
=================
See accompanying notes to financial statements
4
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
For the Three Months Ended June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
General Limited
Partner Partner Total
------------------ ------------------- -----------------
<S> <C> <C> <C>
Partners' equity (deficit) at March 31, 2000 $ (301) $ 5,812,993 $ 5,812,692
Sale of Limited Partnership units,
net of discounts of $715 - 3,463,285 3,463,285
Sale of limited partnership units issued for
promissory notes receivable - (40,000) (40,000)
Offering expenses (450) (449,155) (449,605)
Net income 152 15,085 15,237
------------------ ------------------- -----------------
Partners' equity (deficit) at June 30, 2000 $ (599) $ 8,802,208 $ 8,801,609
================== =================== =================
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
STATEMENT OF CASH FLOWS
For the Three Months Ended June 30, 2000
(unaudited)
Cash flows from operating activities:
Net income $ 15,237
Adjustments to reconcile net income to net cash
provided by operating activities:
Equity in losses of limited partnerships 37,176
Amortization 5,362
Change in other assets (5,607)
Change in accrued fees and expenses due to
General Partner and affiliates 1,399
------------------
Net cash provided by operating activities 53,567
------------------
Cash flows from investing activities:
Investments in limited partnerships, net (482,471)
Funds held in escrow disbursement account 29
Capitalized acquisition costs and fees (1,005)
------------------
Net cash used in investing activities (483,393)
------------------
Cash flows from financing activities:
Capital contributions 3,316,285
Offering expenses (252,584)
------------------
Net cash provided by financing activities 3,063,701
------------------
Net increase in cash and cash equivalents 2,633,875
------------------
Cash and cash equivalents, beginning of period 4,295,471
------------------
Cash and cash equivalents, end of period $ 6,929,346
==================
See accompanying notes to financial statements
6
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(unaudited)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
The accompanying condensed consolidated unaudited financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q for quarterly
reports under Section 13 or 15(d) of the Securities Exchange Act of 1934.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three months ended June 30, 2000 are not necessarily
indicative of the results that may be expected for the fiscal year ending March
31, 2001. For further information, refer to the financial statements and
footnotes thereto included in the Partnership's annual report on Form 10-K for
the fiscal year ended March 31, 2000.
Organization
WNC Housing Tax Credit Fund VI, L.P., Series 7, (a California Limited
Partnership) (the "Partnership") was formed on June 16, 1997 under the laws of
the state of California. The Partnership began operations on September 3, 1999,
the effective date of its public offering pursuant to Security and Exchange
approval of the Partnership's Pre-Effective Amendment No. 3 to Form S-11 filed
with the Securities and Exchange Commission on July 16, 1999. The Partnership
was formed to invest primarily in other limited partnerships (the "Local Limited
Partnerships") which own and operate multi-family housing complexes (the
"Housing Complexes") that are eligible for low income housing tax credits. The
local general partners (the "Local General Partners") of each Local Limited
Partnership will retain responsibility for maintaining, operating and managing
the Housing Complex.
WNC Housing Tax Credit Fund, VI, L.P., Series 8 ("Series 8") currently has no
assets or liabilities and has had no operations. Accordingly, no financial
information is included herein for Series 8
The general partner is WNC & Associates, Inc. (the "General Partner"). Wilfred
N. Cooper, Sr., through the Cooper Revocable Trust, owns just less than 66.8% of
the outstanding stock of WNC & Associates, Inc. John B. Lester, Jr. is the
initial limited partner of the Partnership and owns, through the Lester Family
Trust, just less than 28.6% of the outstanding stock of WNC & Associates, Inc.
Wilfred N. Cooper, Jr., President of WNC & Associates, Inc., owns 2.1% of the
outstanding stock of Associates. The business of the Partnership is conducted
primarily through WNC & Associates, Inc., as the Partnership has no employees of
its own.
The Partnership shall continue in full force and effect until December 31, 2060,
unless terminated prior to that date, pursuant to the partnership agreement or
law.
The financial statements include only activity relating to the business of the
Partnership, and do not give effect to any assets that the partners may have
outside of their interests in the Partnership, or to any obligations, including
income taxes, of the partners.
7
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(unaudited)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The Partnership agreement authorized the sale of up to 25,000 units at $1,000
per Unit ("Units"). As of June 30, 2000, 10,611 Units in the amount of
$10,603,060 had been sold, net of volume discounts of $30 and $7,910 of dealer
discounts, had been accepted. The General Partner has a 0.1% interest in
operating profits and losses, taxable income and losses, cash available for
distribution from the Partnership and tax credits of the Partnership. The
limited partners will be allocated the remaining 99.9% of these items in
proportion to their respective investments.
After the limited partners have received proceeds from a sale or refinancing
equal to their capital contributions and their return on investment (as defined
in the Partnership Agreement) and the General Partner has received proceeds
equal to its capital contribution and a subordinated disposition fee (as
described in Note 3) from the remainder, any additional sale or refinancing
proceeds will be distributed 90% to the limited partners (in proportion to their
respective investments) and 10% to the General Partner.
Risks and Uncertainties
The Partnership's investments in Local Limited Partnerships are subject to the
risks incident to the management and ownership of low-income housing and to the
management and ownership of multi-unit residential real estate. Some of these
risks are that the low income housing credit could be recaptured and that
neither the Partnership's investments nor the Housing Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes receive government financing or operating subsidies, they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes: difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests: limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations. The Housing Complexes are or will be subject
to mortgage indebtedness. If a Local Limited Partnership does not makes its
mortgage payments, the lender could foreclose resulting in a loss of the Housing
Complex and low income housing credits. As a limited partner of the Local
Limited Partnerships, the Partnership will have very limited rights with respect
to management of the Local Limited Partnerships, and will rely totally on the
Local General Partners of the Local Limited Partnerships for management of the
Local Limited Partnerships. The value of the Partnership's investments will be
subject to changes in national and local economic conditions, including
unemployment conditions, which could adversely impact vacancy levels, rental
payment defaults and operating expenses. This, in turn, could substantially
increase the risk of operating losses for the Housing Complexes and the
Partnership. In addition, each Local Limited Partnership is subject to risks
relating to environmental hazards and natural disasters which might be
uninsurable. Because the Partnership's operations will depend on these and other
factors beyond the control of the General Partner and the Local General
Partners, there can be no assurance that the anticipated low income housing
credits will be available to Limited Partners.
In addition Limited Partners are subject to risks in that the rules governing
the low income housing credit are complicated, and the use of credits can be
limited. The only material benefit from an investment in Units may be the low
income housing credits. There are limits in the transferability of Units, and it
is unlikely that a market for Units will develop. All management decisions will
be made by the General Partner.
8
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(unaudited)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Method of Accounting for Investments in Limited Partnerships
The Partnership intends to account for its investments in limited partnerships
using the equity method of accounting, whereby the Partnership will adjust its
investment balance for its share of the Local Limited Partnership's results of
operations and for any distributions received. The accounting policies of the
Local Limited Partnerships are expected to be consistent with those of the
Partnership. Costs incurred by the Partnership in acquiring the investments will
be capitalized as part of the investment and amortized over 15 years (see Note
2).
Offering Expenses
Offering expenses are expected to consist of underwriting commissions, legal
fees, printing, filing and recordation fees, and other costs incurred in
connection with the selling of limited partnership interests in the Partnership.
The General Partner is obligated to pay all offering and organization costs
inclusive of selling commissions and dealer manager fees, in excess of 4% of the
total offering proceeds. Offering expenses are reflected as a reduction of
limited partners' capital and amounted to $1,371,490 and $921,885 as of June 30,
2000 and March 31, 2000, respectively.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period.
Actual results could materially differ from those estimates.
Cash and Cash Equivalents
The Partnership considers all highly liquid investments with remaining
maturities of three months or less when purchased to be cash equivalents. As of
June 30, 2000 and March 31, 2000 the Partnership had cash equivalents of
$3,910,746 and $3,866,941, respectively. These amounts consist primarily tax
exempt instruments collateralized by tax exempt municipal bonds from various
municipalities throughout the United States. These instruments generate tax
exempt yields and generally have 35 day or less maturities.
Concentration of Credit Risk
At June 30, 2000, the Partnership maintained cash balances at certain financial
institutions in excess of the federally insured maximum.
Net Income Per Limited Partner Unit
Net income per limited partnership unit is calculated pursuant to Statement of
Financial Accounting Standards No. 128, Earnings Per Share. Net income per unit
includes no dilution and is computed by dividing income available to limited
partners by the weighted average number of units outstanding during the period.
Calculation of diluted net income per unit is not required.
9
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(unaudited)
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
Following is a summary of the equity method activity of the investments in
limited partnerships for the periods presented:
<TABLE>
<CAPTION>
June 30, 2000 March 31, 2000
------------------------- --------------------------
<S> <C> <C>
Investments in limited partnerships,
beginning of period $ 1,284,221 $ -
Capital contributions paid, net - 142,788
Capital contributions payable 245,205 502,601
Capitalized acquisition fees and costs 311,760 643,230
Equity in losses of limited partnerships (37,176) -
Amortization of capitalized
acquisition fees and costs (5,362) (4,398)
------------------------- --------------------------
Investments in limited partnerships, end of
period $ 1,798,648 $ 1,284,221
========================= ==========================
</TABLE>
Selected financial information for the three months ended June 30, 2000 from the
unaudited combined financial statements of the limited partnerships in which the
Partnership has invested as follows:
Total revenue $ 45,000
----------------------
Interest expense 15,000
Depreciation 28,000
Operating expenses 39,000
----------------------
Total expenses 82,000
----------------------
Net loss $ (37,000)
======================
Net loss allocable to the
Partnership $ (37,000)
======================
Net loss recorded by the
Partnership $ (37,000)
======================
10
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(unaudited)
NOTE 3 - RELATED PARTY TRANSACTIONS
The Partnership has no officers, employees, or directors. However, under the
terms of the Partnership Agreement the Partnership is obligated to the General
Partner or its affiliates for the following fees:
(a) Acquisition fees of 7% of the gross proceeds from the sale of Units as
compensation for services rendered in connection with the acquisition
of Local Limited Partnerships. As of June 30, 2000 and March 31, 2000,
the Partnership incurred acquisition fees of $742,770 and $500,290,
respectively. Accumulated amortization of these capitalized costs were
$7,590 and $3,420 as of June 30, 2000 and March 31, 2000,
respectively.
(b) Acquisition costs of 2% of the gross proceeds from the sale of Units as
full reimbursement of costs incurred by the General Partner in
connection with the acquisition of Local Limited Partnerships. As of
June 30, 2000 and March 31, 2000, the Partnership incurred acquisition
costs of $212,220 and $142,940, respectively, which have been included
in investments in limited partnerships. Accumulated amortization were
$2,170 and $978 as of June 30, 2000 and March 31, 2000, respectively.
(c) An annual asset management fee not to exceed 0.2% of the invested
assets (defined as the Partnership's capital contributions plus
reserves of the Partnership of up to 5% of gross proceeds plus its
allocable percentage of the mortgage debt encumbering the housing
complexes) of the Local Limited Partnerships. Management fees of $1,744
were incurred during the three months ended June 30, 2000.
(d) A subordinated disposition fee in an amount equal to 1% of the sales
price of real estate sold. Payment of this fee is subordinated to the
limited partners receiving a return on investment (as defined in the
Partnership Agreement) and is payable only if the General Partner or
its affiliates render services in the sales effort.
The accrued fees and expenses due to the General Partner and affiliates consist
of the following:
<TABLE>
<CAPTION>
June 30, 2000 March 31, 2000
------------------- ---------------------
<S> <C> <C>
Acquisition fees payable $ 278,110 $ 35,630
Acquisition costs payable 78,455 10,180
Organizational, offering and selling costs payable 296,101 99,080
Asset management fee payable 2,168 424
Reimbursement for expenses paid by the General Partner or
an affiliate - 345
------------------- ---------------------
$ 654,834 $ 145,659
=================== =====================
</TABLE>
11
<PAGE>
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(unaudited)
NOTE 4 - SUBSCRIPTIONS AND NOTES RECEIVABLE
As of June 30, 2000, the Partnership had received subscriptions for 10,611 units
which included subscriptions receivable of $686,000 and promissory notes of
$474,000, of which all of the subscription receivables were collected and $0 of
the promissory notes were collected after June 30, 2000 and prior to the
issuance of these financial statements, leaving an unpaid balance of $474,000.
Limited partners who subscribed for ten or more units of limited partnerships
interest ($10,000) could elect to pay 50% of the purchase price in cash upon
subscription and the remaining 50% by the delivery of a promissory note payable,
together with interest at a rate equal to the three month treasury bill rate as
of the date of execution of the promissory note, due no later than 13 months
after the subscription date.
NOTE 5 - INCOME TAXES
No provision for income taxes has been recorded in the financial statements as
any liability for income taxes is the obligation of the partners of the
Partnership.
12
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This Quarterly Report contains forward-looking statements concerning the
Partnership's anticipated future revenues and earnings, adequacy of future cash
flow and related matters. These forward-looking statements include, but are not
limited to, statements containing the words "expect", "believe", "will", "may",
"should", "project", "estimate", and like expressions, and the negative thereof.
These statements are subject to risks and uncertainties that could cause actual
results to differ materially from the statements, including competition, as well
as those risks described in the Partnership's SEC reports, including the
Partnership's Form 10-K filed pursuant to the Securities and Exchange Act of
1934 on June 29, 2000.
The following discussion and analysis compares the results of operations for the
fiscal quarter ended June 30, 2000 and 1999, and should be read in conjunction
with the condensed consolidated financial statements and accompanying notes
included within this report.
Financial Condition
The Partnership's assets at June 30, 2000 consisted primarily of $6,929,000 in
cash, $143,000 in cash in escrow, $697,000 in subscriptions receivable,
aggregate investments in the three Local Limited Partnerships of $1,798,000, and
$154,000 in loans receivable. Liabilities at June 30, 2000 primarily consisted
of $265,000 due to limited partnerships and $655,000 in advances and other
payables due to the General Partner or affiliates.
Results of Operations
The Partnership commenced operations on September 3, 1999. As a result, there
are no comparative results of operations or financial condition from prior
periods to report. Net income for the period ended June 30, 2000 was principally
composed of interest income, offset by amortization and other operating
expenses.
Cash Flows
Cash flows provided by operating activities for the period ended June 30, 2000
included interest income from cash investments less miscellaneous costs of
operations. Cash flows provided by financing activities for the period ended
June 30, 2000 primarily consisted of proceeds from the sale of Units of
$3,316,000 (net of promissory notes of $474,000, subscriptions receivable of
$686,000, and dealer and volume discounts of $8,000), less offering expenses
paid of $253,000. Cash flows used in investing activities consisted of capital
contributions paid to Local Limited Partnerships of $482,000 and capitalized
acquisition fees and costs totaling $1,000.
Since June 30, 2000, the Partnership has raised equity capital sufficient to
satisfy all of its identified obligations. In this regard, the Partnership
expects its future cash flows, together with its net available assets at June
30, 2000, to be sufficient to meet all currently foreseeable future cash
requirements.
13
<PAGE>
Impact of Year 2000
WNC & Associates, Inc.
Status of Readiness
Information Technology (IT) Systems. The Partnership relies on the IT systems of
WNC, its general partner. IT systems include computer hardware and software used
to produce financial reports and tax return information. This information is
then used to generate reports to investors and regulatory agencies, including
the Internal Revenue Service and the Securities and Exchange Commission. The IT
systems of WNC are year 2000 compliant.
Non-IT Systems. The Partnership also relies on the non-IT systems of WNC. Non-IT
systems include machinery and equipment such as telephones, voice mail and
electronic postage equipment. The non-IT systems of WNC are year 2000 compliant.
Service Providers. WNC also relies on the IT and non-IT systems of service
providers. Service providers include utility companies, financial institutions,
telecommunications carriers, municipalities, and other outside vendors. WNC has
obtained verbal assurances from its material service providers (electrical power
provider, financial institutions and telecommunications carriers) that their IT
and non-IT systems are year 2000 compliant. To date, WNC has not encountered
significant year 2000 issues or business disruptions from its service providers.
Costs to Address Year 2000 Issues
The cost to address year 2000 issues for WNC has been less than $25,000.
Risk of Year 2000 Issues
Although WNC has encountered no significant year 2000 issue to date, the most
reasonable and likely result from non-year 2000 compliance of systems of the
service providers noted above would be the disruption of normal business
operations for WNC. This disruption could, in turn, lead to delays in performing
reporting and fiduciary responsibilities on behalf of the Partnership. The worst
case scenario would be the replacement of a service provider. These delays would
likely be temporary and would likely not have a material effect on the
Partnership or WNC.
Local Limited Partnerships
Status of Readiness
To date, WNC and the Partnership have encountered no significant year 2000
issues with respect to the Local Limited Partnerships.
Costs to Address Year 2000 Issues
There has been and will be no cost to the Partnership as a result of assessing
year 2000 issues for the Local Limited Partnerships. Although no significant
year 2000 issues have been encountered to date, the cost to deal with potential
year 2000 issues of the Local Limited Partnerships cannot be estimated at this
time.
14
<PAGE>
Risk of Year 2000 Issues
Although no significant year 2000 issues have been encountered to date, there
can be no assurance that the Partnership will be unaffected by year 2000 issues.
The most reasonable and likely result from non-year 2000 compliance will be the
disruption of normal business operations for the Local Limited Partnerships,
including but not limited to the possible failure to properly collect rents and
meet their obligations in a timely manner. This disruption would, in turn, lead
to delays by the Local Limited Partnerships in performing reporting and
fiduciary responsibilities on behalf of the Partnership. The worst-case scenario
would include the initiation of foreclosure proceedings on the property by
mortgage debt holders. Under these circumstances, WNC or its affiliates will
take actions necessary to minimize the risk of foreclosure, including the
removal and replacement of a Local General Partner by the Partnership. These
delays would likely be temporary and would likely not have a material effect on
the Partnership or WNC.
Item 3: Quantitative and Qualitative Disclosures Above Market Risks
NOT APPLICABLE
Part II. Other Information
Item 1. Legal Proceedings
NONE
Item 6. Exhibits and Reports on Form 8-K
NONE
15
<PAGE>
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.
WNC HOUSING TAX CREDIT FUND VI, L.P., Series 7 and Series 8
(Registrant)
By: WNC & Associates, Inc., General Partner of the Registrant
By: /s/ Wilfred N. Cooper, Jr.
Wilfred N. Cooper, Jr.,
President - Chief Operating Officer of WNC & Associates, Inc.
Date: August 15, 2000
By: /s/ Michael L. Dickenson
Michael L. Dickenson,
Vice President - Chief Financial Officer of WNC & Associates, Inc.
Date: August 15, 2000
16
