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): December 18, 2000
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WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 7
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(Exact name of registrant as specified in its charter)
California 333-76435 33-0761517
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
3158 Redhill Avenue, Suite 120, Costa Mesa, California 92626
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (714) 662-5565
N/A
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Former name or former address, if changed since last report)
<PAGE>
Item 2. Acquisition or Disposition of Assets
WNC Housing Tax Credit Fund VI, L.P., Series 7 ("Series 7") has
acquired a Local Limited Partnership Interest in Lake Village Apartments, L.P.,
an Illinois limited partnership (the "Local Limited Partnership" or "LAKE
VILLAGE"). LAKE VILLAGE owns the Lake Village Apartments in Kewanee, Illinois
(the "Apartment Complex").
The following table contains information concerning the Apartment
Complex and the Local Limited Partnership identified herein:
<TABLE>
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LOCAL
ACTUAL OR LIMITED
ESTIMATED ESTIMATED PERMANENT PARTNER-
PROJECT CONSTRUC- DEVELOPMENT MORTGAGE SHIP'S YEAR CREDITS
LOCAL NAME AND TION COST NUMBER OF BASIC LOAN ANTICIPATED TO BE FIRST
LIMITED NUMBER LOCATION COMPLETION (INCLUDING APARTMENT MONTHLY PRINCIPAL TAX CREDITS AVAILABLE
PARTNERSHIP OF BUILDINGS OF PROPERTY DATE LAND COST) UNITS RENTS AMOUNT (1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------- ------------- ------------ ------------ ------------ ------------- ----------- ------------ ------------ -------------
LAKE Lake Kewanee January $4,498,523 20 2BR units $352-550 $1,300,000 $1,128,760 2002
VILLAGE Village (Henry 2002 30 3BR units $404-600 IHDA (2)
Apartments County),
Illinois $750,000
3 buildings IHDA (3)
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<FN>
(1) Low Income Housing Credits are available over a 10-year period. For the
year in which the credit first becomes available, 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) Illinois Housing Development Authority ("IHDA") will provide the first
mortgage loan for a term of 40 years at an annual interest rate of
8.05%. Principal and interest will be payable monthly, based on a
40-year amortization schedule.
(3) IHDA will provide the second mortgage loan for a term of 30 years at an
annual interest rate of 1%. Principal and interest will be payable
monthly, based on a 30-year amortization schedule.
</FN>
</TABLE>
Kewanee (LAKE VILLAGE): Kewanee (population 22,500) is in Henry County,
Illinois at the intersection of U.S. Highway 34 and State Highway 78. The major
employers for Kenawee residents are Apac Teleservices, City of Kenawee, and
Compaction America.
<TABLE>
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ESTIMATED
LOCAL SHARING RATIOS: ACQUISITION
LOCAL LOCAL GENERAL SHARING ALLOCATIONS (4) AND FEES PAYABLE
LIMITED GENERAL PROPERTY PARTNERS' RATIOS: SALE OR REFINANCING SERIES 7's CAPITAL TO FUND
PARTNERSHIP PARTNERS MANAGER (1) FEES (2) CASH FLOW (3) PROCEEDS (5) CONTRIBUTION (6) MANAGER
<S> <C> <C> <C> <C> <C> <C> <C>
--------------- ------------ ------------ -------------- --------------- -------------------- ------------------- ---------------
LAKE Quad Cities Heartland $528,368 WNC: $1,000 99.98/.01/.01 $2,978,352 $278,000
VILLAGE RedevelopmentManagement, LGP: 70% of 30/70
Resources, Inc. the balance
Inc. and The balance:
Elderly 30/70
Living
Development,
Inc.
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<FN>
(1) The Local General Partners are authorized to employ either themselves or one
of their affiliates, or a third party, as property manager for leasing and
management of the Apartment Complex. Although in some instances the maximum
annual management fee payable to the property manager is determined pursuant to
lender regulations, in most cases the fee is equal to market rate.
(2) The Local Limited Partnership will pay its Local General Partners or an
affiliate of its Local General Partners fees in the amount set forth, for, among
other services, services incident to the organization of the Local Limited
Partnership, the acquisition of its land, and the development and construction
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<PAGE>
of its Apartment Complex, which latter 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 Credits. These fees will be paid 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 ("WNC") and the Local General Partners ("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 7,
(ii) WNC Housing, L.P., an affiliate of the sponsor 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, after payment of the mortgage loan and
other Local Limited Partnership obligations, of (i) Series 7 and (ii) the Local
General Partners.
(6) Series 7 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 Apartment Complex have been
fulfilled.
</FN>
</TABLE>
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<PAGE>
Item 7. Financial Statements and Exhibits
a. Financial Statements of Businesses Acquired
Inapplicable.
b. Proforma Financial Information*
c. Exhibits
10.1 Amended and Restated Agreement of Limited Partnership of Lake
Village Apartments, L.P.*
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*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: December 29, 2000 By: WNC & Associates, Inc.,
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General Partner
By: /s/ DAVID N. SHAFER
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David N. Shafer,
Executive Vice President
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