November 13, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: Boston Financial Qualified Housing Tax Credits L.P. V
Report on Form 10-Q Edgar for Quarter Ended September 30, 1996
File No. 0-19706
Dear Sir/Madam:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
/s/Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
QH5-10Q2.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
-----------------------------------------------
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1996 Commission file number 0-19706
----------------------------------
Boston Financial Qualified Housing Tax Credits L.P. V
(Exact name of registrant as specified in its charter)
Massachusetts 04-3054464
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
101 Arch Street, Boston, MA 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-3911
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>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page No.
- - ------------------------------
Item 1. Financial Statements
Balance Sheets - September 30, 1996 (Unaudited) and
March 31, 1996 1
Statements of Operations (Unaudited) - For the Three and
Six Months Ended September 30, 1996 and 1995 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Six Months Ended September 30,
1996 3
Statements of Cash Flows (Unaudited) - For the Six
Months Ended September 30, 1996 and 1995 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II - OTHER INFORMATION
Items 1-6 10
SIGNATURE 11
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, March 31,
1996 1996
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 321,906 $ 243,644
Other current assets 23,355 25,408
---------------- ---------------
Total current assets 345,261 269,052
Investments in Local Limited Partnerships (Note 2) 32,663,481 34,878,562
Marketable securities, at fair value (Note 1) 2,903,812 3,099,255
---------------- ---------------
Total Assets $ 35,912,554 $ 38,246,869
================ ===============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 66,735 $ 71,527
Accounts payable and accrued expenses 55,319 67,883
---------------- ---------------
Total current liabilities 122,054 139,410
---------------- ---------------
Other liabilities:
Deferred revenue (Note 3) 179,318 179,318
---------------- ---------------
General, Initial and Investor Limited Partners' Equity 35,646,539 37,953,300
Net unrealized losses on marketable securities (35,357) (25,159)
---------------- ---------------
Total Partners' Equity 35,611,182 37,928,141
---------------- ---------------
Total Liabilities and Partners' Equity $ 35,912,554 $ 38,246,869
================ ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Six Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------------- ------------- ------------ ---------
<S> <C> <C> <C> <C>
Revenue:
Investment $ 48,440 $ 47,161 $ 96,834 $ 87,052
Other 100 2,600 8,926 30,750
------------ ------------ ------------ ------------
Total Revenue 48,540 49,761 105,760 117,802
------------ ------------ ------------ ------------
Expenses:
Asset management fees,
related party 57,286 55,889 114,572 111,778
General and administrative
(includes reimbursements
to an affiliate in the amounts
of $61,237 and $45,054
in 1996 and 1995, respectively) 60,184 57,309 129,364 111,109
Amortization 7,551 7,633 15,180 15,264
------------ ------------ ------------ ------------
Total Expenses 125,021 120,831 259,116 238,151
------------ ------------ ------------ ------------
Loss before equity in
losses of Local Limited
Partnerships (76,481) (71,070) (153,356) (120,349)
Equity in losses of Local
Limited Partnerships (1,121,964) (1,071,164) (2,153,405) (2,153,792)
------------ ------------ ------------ ------------
Net Loss $ (1,198,445) $ (1,142,234) $ (2,306,761) $ (2,274,141)
============ ============ ============ ============
Net Loss allocated:
To General Partners $ (11,985) $ (11,422) $ (23,068) $ (22,741)
To Limited Partners (1,186,460) (1,130,812) (2,283,693) (2,251,400)
------------ ------------ ------------ ------------
$ (1,198,445) $ (1,142,234) $ (2,306,761) $ (2,274,141)
============ ============ ============ ============
Net Loss per Limited Partnership
Unit (68,929 Units) $ (17.21) $ (16.40) $ (33.13) $ (32.66)
============ ============ ============ =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Six Months Ended September 30, 1996
<TABLE>
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1996 $ (212,573) $5,000 $ 38,160,873 $ (25,159) $ 37,928,141
Net change in net unrealized
losses on marketable
securities available for sale - - - (10,198) (10,198)
Net Loss (23,068) - (2,283,693) - (2,306,761)
----------- ------ ------------ --------- -------------
Balance at
September 30, 1996 $ (235,641) $5,000 $ 35,877,180 $ (35,357) $ 35,611,182
=========== ====== ============ ========= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------------- ---------
<S> <C> <C>
Net cash used for operating activities $ (171,901) $ (132,113)
------------ -----------
Cash flows from investing activities:
Purchases of marketable securities (455,427) (1,955,138)
Proceeds from sales and maturities of marketable securities 659,094 1,976,892
Cash distributions received from Local
Limited Partnerships 46,496 52,296
------------ -----------
Net cash provided by investing activities 250,163 74,050
------------ -----------
Net increase (decrease) in cash and cash equivalents 78,262 (58,063)
Cash and cash equivalents, beginning of period 243,644 72,535
------------ -----------
Cash and cash equivalents, end of period $ 321,906 $ 14,472
============ ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Financial Statements
(Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's 10-K for the year
ended March 31, 1996. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Partnership's financial position and results of
operations. The results of operations for the periods may not be indicative of
the results to be expected for the year.
1. Marketable Securities
A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Debt securities issued by the US
Treasury $ 2,646,647 $ 1,594 $ (39,153) $ 2,609,088
Mortgage backed securities 275,419 3,160 (685) 277,894
Other debt securities 17,103 - (273) 16,830
----------- -------- --------- -----------
Marketable securities at
September 30, 1996 $ 2,939,169 $ 4,754 $ (40,111) $ 2,903,812
=========== ======== ========= ===========
Debt securities issued by the US
Treasury and other US
government corporations and agencies $ 2,941,472 $ 3,462 $ (31,743) $ 2,913,191
Mortgage backed securities 139,230 3,428 - 142,658
Other debt securities 43,712 - (306) 43,406
----------- -------- --------- -----------
Marketable securities at March 31, 1996 $ 3,124,414 $ 6,890 $ (32,049) $ 3,099,255
=========== ======== ========= ===========
</TABLE>
The contractual maturities at September 30, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one year or less $ 397,052 $ 396,413
Due in one year to five years 2,266,698 2,229,505
Mortgage backed securities 275,419 277,894
----------- -----------
$ 2,939,169 $ 2,903,812
=========== ===========
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Financial Statements (continued)
(Unaudited)
1. Marketable Securities (continued)
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
were approximately $659,000 and $1,977,000 for the six months ended September
30, 1996 and 1995. Included in investment income are gross gains of $19,307 and
$8,601 and gross losses of $885 and $12,099 which were realized on these sales
during the six months ended September 30, 1996 and 1995, respectively.
2. Investments in Local Limited Partnerships
The Partnership has acquired interests in twenty-seven Local Limited
Partnerships which own and operate multi-family housing complexes, most of which
are government-assisted. The Partnership, as Investor Limited Partner pursuant
to the various Local Limited Partnership Agreements, has generally acquired a
99% interest in the profits, losses, tax credits, and cash flows from operations
of each of the Local Limited Partnerships, with the exception of Strathern
Park/Lorne Park Apartments and Huguenot Park which are 95% and 88.6%,
respectively. Upon dissolution, proceeds will be distributed according to each
respective partnership agreement.
The following is a summary of Investments in Local Limited Partnerships at
September 30, 1996 (Unaudited):
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 55,491,515
Cumulative equity in losses of Local Limited Partnerships (23,250,473)
Cumulative cash distributions received
from Local Limited Partnerships (504,729)
Investments in Local Limited Partnerships
before adjustment 31,736,313
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,068,278
Accumulated amortization of acquisition
fees and expenses (141,110)
Investments in Local Limited Partnerships $ 32,663,481
=============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Financial Statements (continued)
(Unaudited)
2. Investments in Local Limited Partnerships (continued)
Summarized financial information from the combined financial statements of all
Local Limited Partnerships in which the Partnership has invested is as follows:
Summarized Balance Sheets - as of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investment property, net $ 121,712,415
Current assets 3,989,538
Other assets 5,316,107
--------------
Total Assets $ 131,018,060
==============
Liabilities and Partners' Equity:
Current liabilities $ 6,678,414
Long-term debt 86,616,253
Other liabilities 1,109,908
--------------
Total Liabilities 94,404,575
Partners' Equity 36,613,485
--------------
Total Liabilities and Partners' Equity $ 131,018,060
==============
Summarized Income Statements - for the
six months ended June 30, 1996 (Unaudited)
Rental and other income: $ 7,224,658
--------------
Expenses:
Operating 3,577,039
Interest 3,287,485
Depreciation and amortization 2,564,894
--------------
Total Expenses 9,429,418
Net Loss $ (2,204,760)
==============
Partnership's share of Net Loss $ (2,157,258)
==============
Other Partners' share of Net Loss $ (47,502)
==============
</TABLE>
For the six months ended September 30, 1996, the Partnership has not recognized
$3,853 of equity in losses relating to one Local Limited Partnership where
cumulative equity in losses and cumulative distributions exceeded its total
investment.
3. Deferred Revenue
Under the terms of a Local Limited Partnership Agreement, the Partnership was
required to fund a Supplemental Reserve in the amount of $196,000. The original
purpose of the contribution was to fund the development expenses of a Local
Limited Partnership. Since the funds were not needed, the Local Limited
Partnership Agreement allows that the established Supplemental Reserve along
with the interest earned, are available to pay the Partnership its annual
priority distribution. As of September 30, 1996, $22,000 has been released to
the Partnership. The balance of the Supplemental Reserve is included in cash and
cash equivalents.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Financial Statements (continued)
(Unaudited)
4. Transactions with Affiliates
Lansing Management Company ("LMC"), an affiliate of the Managing General Partner
is the management agent for three Local Limited Partnerships in which the
Partnership has invested, St. Croix II, Limited Partnership ("Carib Villas II"),
Christiansted Limited Partnership ("Carib Villas III") and Historic New Center
Limited Partnership ("Historic New Center"). Included in operating expenses of
the summarized income statements in Note 2 to the Financial Statements is
$19,228 of fees earned by LMC for the six months ended June 30, 1996.
Boston Financial Property Management ("BFPM") is the management agent for
Woodlake Hills, a Local Limited Partnership in which the Partnership has
invested. Included in operating expenses of the summarized income statements in
Note 2 to the Financial Statements is $22,358 of fees earned by BFPM for the six
months ended June 30, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At September 30, 1996, the Partnership had cash and cash equivalents of $321,906
as compared with $243,644 at March 31, 1996. The increase is attributable to
proceeds from sales and maturities of marketable securities in excess of
purchases of marketable securities and cash distributions received from Local
Limited Partnerships.
These increases are offset by net cash used for operations.
Approximately $2,751,000 of marketable securities has been designated as
reserves by the Managing General Partner. The reserves were established to be
used for working capital of the Partnership and contingencies related to the
ownership of Local Limited Partnership interests. Management believes that the
investment income earned on the reserves, along with cash distributions received
from Local Limited Partnerships, to the extent available, will be sufficient to
fund the Partnership's ongoing operations and any contingencies that may arise.
Reserves may be used to fund Partnership operating deficits, if the Managing
General Partner deems funding appropriate.
Since the Partnership invests as a limited partner, the Partnership has no
contractual duty to provide additional funds to Local Limited Partnerships
beyond its specified investment. Thus, at September 30, 1996 , the Partnership
had no contractual or other obligation to any Local Limited Partnership which
had not been paid or provided for.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Partnership might deem it in its best interest
to provide such funds, voluntarily, in order to protect its investment. No such
event has occurred to date.
Cash Distributions
No cash distributions were made during the six months ended September 30, 1996.
Results of Operations
The Partnership's results of operations for the three and six months ended
September 30, 1996 resulted in a net loss of $1,198,445 and $2,306,761 as
compared to net losses of $1,142,234 and $2,274,141 for the same period in 1995.
These results reflect the Partnership's stabilized operations during these
comparable periods.
Property Discussions
Limited Partnership interests have been acquired in twenty-seven Local Limited
Partnerships which are located in ten states and the virgin islands. Five of the
properties, totaling 612 units, are existing and underwent rehabilitation;
Twenty-two properties, consisting of 1,762 units, are new construction. All
properties have completed construction or rehabilitation and initial lease-up.
All but one of the Local Limited Partnerships are operating satisfactorily.
Historic New Center, a property located in Detroit, Michigan, had previously
been operating at a deficit as occupancy had been affected by the downturn in
the local economy. In August 1994, an affiliate of the Managing General Partner
assumed property management responsibilities. The property has recently reached
breakeven operations and continues to focus on stabilizing the tenancy and
collecting delinquent rental payments.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended September 30, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
SIGNATURE
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.
DATED: November 13, 1996 BOSTON FINANCIAL QUALIFIED HOUSING
TAX CREDITS L.P. V
By: Arch Street V, Inc.,
its Managing General Partner
/s/Georgia Murray
Georgia Murray
A Managing Director, Treasurer
and Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<CASH> 321,906
<SECURITIES> 2,903,812
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 23,355<F1>
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 35,912,554<F2>
<CURRENT-LIABILITIES> 122,054<F3>
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 35,611,182
<TOTAL-LIABILITY-AND-EQUITY> 35,912,554<F4>
<SALES> 000
<TOTAL-REVENUES> 105,760<F5>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 259,116<F6>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (2,306,761)<F7>
<EPS-PRIMARY> (33.13)
<EPS-DILUTED> 000
<FN>
<F1>Included in Current Assets: Prepaid insurance $7,738 and Interest receivable $15,617
<F2>Included in Total Assets: Investments in Local Limited Partnerships $32,663,481
<F3>Included in Current Liabilities: Accounts payable to affiliates $66,735 and accounts payable and accrued
expenses $55,319.
<F4>Included in Total Liabilities and Equity: Deferred revenue $179,318
<F5>Total Revenue includes: Investment $96,834, Other $8,926
<F6>Included in Other Expenses: General and Administrative $129,364, Asset management fees $114,572,
Amortization $15,180.
<F7>Net Loss includes: Equity in losses of Local Limited Partnerships of $2,153,405
</FN>
</TABLE>
