August 13, 1997
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 for Quarter Ended June 30, 1997
File No. 0-19706
Gentlemen:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, there is filed herewith one one copy of the subject report.
Very truly yours,
/s/Veronica J. Curioso
Veronica J. Curioso
Assistant Controller
QH5-Q1.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 June 30, 1997
----------------------------
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 June 30, 1997 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
Combined Balance Sheets - June 30, 1997 (Unaudited) and
March 31, 1997 1
Combined Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 1997 and 1996 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Three Months Ended June 30,
1997 3
Combined Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 1997 and 1996 4
Notes to Combined Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
PART II - OTHER INFORMATION
Items 1-6 12
SIGNATURE 13
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
<TABLE>
COMBINED BALANCE SHEETS
<CAPTION>
June 30, March 31,
1997 1997
(Unaudited)
Assets (Note 1)
<S> <C> <C>
Cash and cash equivalents $ 756,660 $ 449,567
Mortgagee escrow deposits 4,766 -
Tenant security deposit escrow 2,886 -
Investments in Local Limited Partnerships (Note 2) 29,249,060 30,531,768
Marketable securities, at fair value 2,644,840 2,840,127
Rental property at cost, net of
accumulated depreciation (Note 3) 970,693 -
Replacement reserve escrow 2,242 -
Other assets 49,758 50,033
-------------- --------------
Total Assets $ 33,680,905 $ 33,871,495
============== ==============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 143,149 $ 88,227
Accounts payable and accrued expenses 55,034 35,692
Mortgage notes payable (Note 4) 712,774 -
Tenant security deposits payable 2,886 -
Deferred revenue 175,133 174,357
-------------- --------------
Total liabilities 1,088,976 298,276
-------------- --------------
Minority interest in Local Limited Partnership 118,962 -
-------------- --------------
General, Initial and Investor Limited Partners' Equity 32,498,387 33,615,539
Net unrealized losses on marketable securities (25,420) (42,320)
-------------- --------------
Total Partners' Equity 32,472,967 33,573,219
-------------- --------------
Total Liabilities and Partners' Equity $ 33,680,905 $ 33,871,495
============== ==============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
<TABLE>
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended June 30, 1997 and 1996
<CAPTION>
1997 1996
--------------- ---------
(Note 1)
Revenue:
<S> <C> <C>
Rental $ 9,801 $ -
Investment 44,428 48,394
Other 1,943 8,826
------------ ------------
Total Revenue 56,172 57,220
------------ ------------
Expenses:
General and administrative (includes
reimbursements to an affiliate in the
amounts of $40,069 and $32,885, respectively) 68,165 69,180
Asset management fees, related party 59,177 57,286
Rental operations, exclusive of depreciation 1,975 -
Property Management fee, related party 590 -
Interest 6,837 -
Depreciation 3,530 -
Amortization 7,323 7,629
------------ ------------
Total Expenses 147,597 134,095
------------ ------------
Loss before equity in losses of
Local Limited Partnerships (91,425) (76,875)
Minority interest in losses of
Local Limited Partnership 31 -
Equity in losses of Local Limited
Partnerships (1,025,758) (1,031,441)
------------ ------------
Net Loss $ (1,117,152) $ (1,108,316)
============ ============
Net Loss allocated:
To General Partners $ (11,172) $ (11,083)
To Limited Partners (1,105,980) (1,097,233)
------------ ------------
$ (1,117,152) $ (1,108,316)
============ ============
Net Loss per Limited Partnership Unit
(68,929 Units) $ (16.05) $ (15.92)
=========== ============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
<TABLE>
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Three Months Ended June 30, 1997
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1997 $ (255,951) $5,000 $ 33,866,490 $ (42,320) $33,573,219
Net change in net unrealized
losses on marketable
securities available for sale - - - 16,900 16,900
Net Loss (11,172) - (1,105,980) - (1,117,152)
---------- ------ ------------ --------- -------------
Balance at June 30, 1997 $ (267,123) $5,000 $ 32,760,510 $ (25,420) $32,472,967
========== ====== ============ ========= ===========
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
<TABLE>
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended June 30, 1997 and 1996
<CAPTION>
1997 1996
----------- --------
(Note 1)
<S> <C> <C>
Net cash used for operating activities $ (35,895) $ (81,865)
--------- ----------
Cash flows from investing activities:
Purchases of marketable securities (396,596) (455,427)
Proceeds from sales and maturities of marketable securities 606,512 613,175
Cash distributions received from Local
Limited Partnerships 132,468 30,259
--------- ----------
Net cash provided by investing activities 342,384 188,007
--------- ----------
Cash flows from financing activities:
Payment of mortgage principal (333) -
--------- ----------
Net cash used for financing activities (333) -
--------- ----------
Net increase in cash and cash equivalents 306,156 106,142
Cash and cash equivalents, beginning 450,504 243,644
--------- ----------
Cash and cash equivalents, ending $ 756,660 $ 349,786
========= ==========
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined 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, 1997. 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. Significant Accounting Policies
Basis of Presentation and Combination
On March 1, 1997, an affiliate of the Partnership's Managing General Partner,
Boston Financial GP1-LLC, became the Local General Partner of Burbank Limited
Partnership I ("Burbank"), a Local Limited Partnership in which the Partnership
has invested. Since the Local General Partner of Burbank is an affiliate of the
Partnership, these combined financial statements include all activity of Burbank
beginning on March 1, 1997. All significant intercompany balances and
transactions have been eliminated.
Rental Property
Rental property of Burbank is recorded at cost. Depreciation is computed using
the straight-line method over the estimated useful lives of the assets.
Rental Income
Rental income, principally from short-term leases on apartment units, is
recognized as income under the operating method as the rentals become due.
2. Investments in Local Limited Partnerships
The Partnership has acquired interests in twenty-six Local Limited Partnerships,
excluding Burbank, 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. Upon dissolution, proceeds
will be distributed according to each respective partnership agreement.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
(Unaudited)
2. Investments in Local Limited Partnerships (continued)
The following is a summary of Investments in Local Limited Partnerships,
excluding Burbank, at June 30, 1997:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 55,219,511
Cumulative equity in losses of Local Limited
Partnerships (excluding cumulative unrecognized
losses of $20,617) (25,983,867)
Cumulative cash distributions received
from Local Limited Partnerships (863,631)
Investments in Local Limited Partnerships
before adjustment 28,372,013
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,039,751
Accumulated amortization of acquisition
fees and expenses (162,704)
Investments in Local Limited Partnerships $ 29,249,060
=============
</TABLE>
The Partnership's share of the net losses of the Local Limited Partnership's for
the three months ended June 30, 1997 is $1,044,232. For the three months ended
June 30, 1997, the Partnership has not recognized $18,474 of equity in losses
relating to two Local Limited Partnerships where cumulative equity in losses and
cumulative distributions from Local Limited Partnerships exceeded its total
investments in these Local Limited Partnerships.
3. Rental Property
Real estate and personal property belonging to Burbank are recorded at cost, the
components of which are as follows at March 31, 1997:
<TABLE>
<CAPTION>
<S> <C>
Buildings and Improvements $ 1,164,939
Land 42,000
-----------
1,206,939
Less: accumulated depreciation 236,246
-----------
Total $ 970,693
===========
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
(Unaudited)
4. Mortgage Notes Payable
Long-term debt for Burbank consists of a primary mortgage note for $750,000
amortized over a 30 year payment schedule, at a rate of 11.5%. Monthly payments
of principal and interest began in September, 1991 for $7,427, with a ballon
payment due in year 2005. The mortgage note payable as of March 31, 1997, is
$712,774.
On February 26, 1994, the Mortgage Holder reduced the interest rate to 8% for a
period of two years. The monthly payment was changed to $5,564 plus a tax escrow
for $2,000. The prior monthly payment amount and interest rate was reinstated at
February 26, 1996.
Approximate principal payments to be made on the mortgage note for each of the
next five years and thereafter are as follows:
Year ended December 31:
1997 $ 4,672
1998 5,240
1999 5,875
2000 6,587
2001 7,385
Thereafter 683,015
-------------
$ 712,774
It is not practical to estimate the fair value of this mortgage because programs
with similar characteristics are not currently available.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules
<TABLE>
Balance Sheets
<CAPTION>
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P V (A) (Burbank) (B) Eliminations Combined (A)
Assets
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 756,647 $ 13 $ - $ 756,660
Mortgagee escrow deposits - 4,766 - 4,766
Tenant security deposit escrow - 2,886 - 2,886
Investments in Local
Limited Partnerships, net 29,363,159 - (114,099) 29,249,060
Marketable securities, at fair value 2,644,840 - - 2,644,840
Rental property at cost, net of
accumulated depreciation - 970,693 - 970,693
Replacement reserve escrow - 2,242 - 2,242
Other assets 49,758 - - 49,758
------------ --------------- ------------- ------------
Total Assets $ 32,814,404 $ 980,600 $ (114,099) $ 33,680,905
============ =============== ============= ============
Liabilities and Partners' Equity (Deficiency)
Accounts payable to affiliates $ 127,104 $ 16,045 $ - $ 143,149
Accounts payable and accrued expenses 39,200 15,834 - 55,034
Mortgage notes payable - 712,774 - 712,774
Tenant security deposits payable - 2,886 - 2,886
Deferred revenue 175,133 - - 175,133
------------ --------------- ------------- ------------
Total Liabilities 341,437 747,539 - 1,088,976
------------ --------------- ------------- ------------
Minority interest in Local Limited
Partnership - - 118,962 118,962
------------ --------------- ------------- ------------
General, Initial, and Investor
Limited Partners' Equity 32,498,387 233,061 (233,061) 32,498,387
Net unrealized losses on
marketable securities (25,420) - - (25,420)
------------ --------------- ------------- ------------
Total Partners' Equity 32,472,967 233,061 (233,061) 32,472,967
------------ --------------- ------------- ------------
Total Liabilities and Partners' Equity $ 32,814,404 $ 980,600 $ _(114,099) $ 33,680,905
============ =============== ============= ============
</TABLE>
(A) As of June 30, 1997.
(B) As of March 31, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
<CAPTION>
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined (A)
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 9,801 $ - $ 9,801
Investment 44,428 - - 44,428
Other 1,903 40 - 1,943
--------------- --------------- ------------- ------------
Total Revenue 46,331 9,841 - 56,172
--------------- --------------- ------------- ------------
Expenses:
General and administrative 68,165 - - 68,165
Asset management fees, related party 59,177 - - 59,177
Rental operations, exclusive of depreciation - 1,975 - 1,975
Property management fee,
related party - 590 - 590
Interest - 6,837 - 6,837
Depreciation - 3,530 - 3,530
Amortization 7,323 - - 7,323
--------------- --------------- ------------- ------------
Total Expenses 134,665 12,932 - 147,597
--------------- --------------- ------------- ------------
Loss before equity in losses of Local
Limited Partnerships (88,334) (3,091) - (91,425)
Minority interest in losses of
Local Limited Partnership - - 31 31
Equity in losses of Local Limited
Partnerships (1,028,818) - 3,060 (1,025,758)
--------------- --------------- ------------- ------------
Net Loss $ (1,117,152) $ (3,091) $ 3,091 $ (1,117,152)
=============== =============== ============= ============
</TABLE>
(A) For the three months ended June 30, 1997.
(B) For the three months ended March 31, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Cash Flows
<CAPTION>
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined (A)
<S> <C> <C> <C> <C>
Net cash used for
operating activities $ (35,304) $ (591) $ - $ (35,895)
----------- ------------ ------------ ------------
Cash flows from investing activities:
Purchases of marketable securities (396,596) - - (396,596)
Proceeds from sales and maturities
of marketable securities 606,512 - - 606,512
Cash distributions received from
Local Limited Partnerships 132,468 - - 132,468
----------- ------------ ------------ ------------
Net cash provided by
investing activities 342,384 - - 342,384
----------- ------------ ------------ ------------
Cash flows from financing activities:
Payment of mortgage principal - (333) - (333)
----------- ------------ ------------ ------------
Net cash used for financing activities - (333) - (333)
----------- ------------ ------------ ------------
Net increase (decrease) in cash
and cash equivalents 307,080 (924) - 306,156
Cash and cash equivalents, beginning 449,567 937 - 450,504
----------- ------------ ------------ ------------
Cash and cash equivalents, ending $ 756,647 $ 13 $ - $ 756,660
=========== ============ ============ ============
</TABLE>
(A) For the three months ended June 30, 1997.
(B) For the three months ended March 31, 1997.
<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 June 30, 1997, the Partnership, including the combined entity, had cash and
cash equivalents of $756,660, compared with $449,567 at March 31, 1997. The
increase is attributable to proceeds from sales and maturities of marketable
securities and cash distributions received from Local Limited Partnerships,
partially offset by net cash used for operations and purchases of marketable
securities.
Approximately $2,735,000 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 June 30, 1997 , 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 interests
to provide such funds, voluntarily, in order to protect its investment.
Cash Distributions
No cash distributions were made during the three months ended June 30, 1997.
Results of Operations
The Partnership's results of operations for the three months ended June 30, 1997
resulted in a net loss of $1,117,152 as compared to a net loss of $1,108,316 for
the same period in 1996. 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.
The Local General Partner for Wheeler House in Nashua, New Hampshire was
replaced by an affiliate of the Managing General Partner with the approval of
the lender after the Local General Partner filed for protection under the
provisions of the Chapter 7 bankruptcy laws. The Managing General Partner is
also seeking to replace the Local General Partner as management agent of the
property as well. The Local General Partner's bankruptcy status has not affected
the property. Operations remain stable at 100% occupancy.
<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 June 30, 1997.
<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: August 13, 1997 BOSTON FINANCIAL QUALIFIED HOUSING
TAX CREDITS L.P. V
By: Arch Street V, Inc.,
its Managing General Partner
/s/Vincent J. Costantini
Vincent J. Costantini
Treasurer and Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> JUN-30-1997
<CASH> 756,660
<SECURITIES> 2,644,840
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 33,680,905<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 32,472,967
<TOTAL-LIABILITY-AND-EQUITY> 33,680,905<F2>
<SALES> 000
<TOTAL-REVENUES> 56,172<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 140,760<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 6,837
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,117,152)<F5>
<EPS-PRIMARY> (16.05)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is mortgagee escrow deposits of $4,766, tenant
security deposit escrow of $2,886, Investments in Local Limited Partnerships of
$29,249,060, rental property of $970,693, a replacement reserve escrow of $2,242
and other assets of $49,758. <F2>Included in Total Liability and Equity is
accounts payable to affiliates of $143,149, accounts payable and accrued
expenses of $55,034, mortgage notes payable of $712,774, tenant security
deposits payable of $2,886, deferred revenue of $175,133 and minority interest
in Local Limited Partnership of $118,962 <F3>Total revenue includes investment
of $44,428, rental of $9,801 and other of $1,943. <F4>Included in Other Expenses
is general and administrative of $68,165, asset management fees $59,177, rental
operations of $1,975, property management fee of $590, depreciation of $3,530
and amortization $7,323. <F5>Net loss includes minority interest in losses of
Local Limited Partnerships of $31 and equity in losses of Local Limited
Partnerships of $1,025,758.
</FN>
</TABLE>
