February 12, 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 Edgar for Quarter Ended December 31, 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/Veronica J. Curioso
Veronica J. Curioso
Assistant Controller
QH5-10Q3.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 December 31, 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 December 31, 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 - December 31, 1996 (Unaudited) and
March 31, 1996 1
Statements of Operations (Unaudited) - For the Three and
Nine Months Ended December 31, 1996 and 1995 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Nine Months Ended December 31,
1996 3
Statements of Cash Flows (Unaudited) - For the Nine
Months Ended December 31, 1996 and 1995 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II - OTHER INFORMATION
Items 1-6 9
SIGNATURE 10
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, March 31,
1996 1996
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 501,380 $ 243,644
Other current assets 22,263 25,408
---------------- ---------------
Total current assets 523,643 269,052
Investments in Local Limited Partnerships (Note 2) 31,742,802 34,878,562
Marketable securities, at fair value (Note 1) 2,789,137 3,099,255
---------------- ---------------
Total Assets $ 35,055,582 $ 38,246,869
================ ===============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 114,572 $ 71,527
Accounts payable and accrued expenses 55,848 67,883
---------------- ---------------
Total current liabilities 170,420 139,410
---------------- ---------------
Other liabilities:
Deferred revenue (Note 3) 171,216 179,318
---------------- ---------------
General, Initial and Investor Limited Partners' Equity 34,738,065 37,953,300
Net unrealized losses on marketable securities (24,119) (25,159)
---------------- ---------------
Total Partners' Equity 34,713,946 37,928,141
---------------- ---------------
Total Liabilities and Partners' Equity $ 35,055,582 $ 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 Nine Months Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
1996 1995 1996 1995
------------- ------------- ------------ ---------
<S> <C> <C> <C> <C>
Revenues:
Investment $ 21,135 $ 40,791 $ 117,969 $ 127,843
Other (15,015) 23,650 (6,089) 54,400
------------- ------------- ------------ ------------
Total Revenue 6,120 64,441 111,880 182,243
------------- ------------- ------------ ------------
Expenses:
Asset management fees,
related party 57,286 55,889 171,858 167,667
General and administrative
(includes reimbursements
to affiliates in the amounts
of $80,029 and $72,480 in 1996
and 1995, respectively) 42,468 50,948 171,832 162,057
Amortization 7,018 7,622 22,198 22,886
------------- ------------- ------------ ------------
Total Expenses 106,772 114,459 365,888 352,610
------------- ------------- ------------ ------------
Loss before equity in
losses of Local Limited
Partnerships (100,652) (50,018) (254,008) (170,367)
Equity in losses of Local
Limited Partnerships (807,822) (1,038,962) (2,961,227) (3,192,754)
------------- ------------- ------------ ------------
Net Loss $ (908,474) $ (1,088,980) $ (3,215,235) $ (3,363,121)
============= ============= ============= ============
Net Loss allocated:
To General Partners $ (9,084) $ (10,890) $ (32,152) $ (33,631)
To Limited Partners (899,390) (1,078,090) (3,183,083) (3,329,490)
------------- ------------- ------------ ------------
$ (908,474) $ (1,088,980) $ (3,215,235) $ (3,363,121)
============= ============= ============ ============
Net Loss per Limited Partnership
Unit (68,929 Units) $ (13.05) $ (15.64) $ (46.18) $ (48.30)
============= ============= ============ =============
</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 Nine Months December 31, 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 - - - 1,040 1,040
Net Loss (32,152) - (3,183,083) - (3,215,235)
----------- ------ ------------ --------- -------------
Balance at
December 31, 1996 $ (244,725) $5,000 $ 34,977,790 $ (24,119) $ 34,713,946
=========== ====== ============ ========= =============
</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 Nine Months Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------------- ---------
<S> <C> <C>
Net cash used for operating activities $ (231,987) $ (5,878)
------------- -----------
Cash flows from investing activities:
Investments in Local Limited Partnerships - (213,500)
Purchases of marketable securities (455,427) (2,462,314)
Proceeds from sales and maturities of marketable securities 792,815 2,584,643
Cash distributions received from Local
Limited Partnerships 152,335 142,018
------------ -----------
Net cash provided by investing activities 489,723 50,847
------------ -----------
Net increase in cash and cash equivalents 257,736 44,969
Cash and cash equivalents, beginning of period 243,644 72,535
------------ -----------
Cash and cash equivalents, end of period $ 501,380 $ 117,504
============ ===========
</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)
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 $ 2,547,123 $ 1,945 $ (29,899) $ 2,519,169
Mortgage backed securities 266,133 3,835 - 269,968
----------- -------- --------- -----------
Marketable securities at
December 31, 1996 $ 2,813,256 $ 5,780 $ (29,899) $ 2,789,137
=========== ======== ========= ===========
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 December 31, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one year or less $ 396,973 $ 396,200
Due in one year to five years 2,150,150 2,122,969
Mortgage backed securities 266,133 269,968
----------- -----------
$ 2,813,256 $ 2,789,137
=========== ===========
</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 $793,000 and $2,585,000 for the nine months ended December
31, 1996 and 1995. Included in investment income are gross gains of $27,176 and
$13,194 and gross losses of $946 and $12,177 which were realized on these sales
during the nine months ended December 31, 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
December 31, 1996 (Unaudited):
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 55,520,042
Cumulative equity in losses of Local Limited Partnerships (24,058,295)
Cumulative cash distributions received
from Local Limited Partnerships (610,568)
Investments in Local Limited Partnerships
before adjustment 30,851,179
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,039,751
Accumulated amortization of acquisition
fees and expenses (148,128)
Investments in Local Limited Partnerships $ 31,742,802
=============
</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 September 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investment property, net $ 120,557,035
Current assets 3,290,051
Other assets 6,120,823
--------------
Total Assets $ 129,967,909
==============
Liabilities and Partners' Equity:
Current liabilities $ 7,671,371
Long-term debt 84,966,910
Other liabilities 1,703,669
--------------
Total Liabilities 94,341,950
Partners' Equity 35,625,959
--------------
Total Liabilities and Partners' Equity $ 129,967,909
==============
Summarized Income Statements - for the
nine months ended September 30, 1996 (Unaudited)
Rental and other income: $ 10,958,084
--------------
Expenses:
Operating 5,305,180
Interest 4,941,548
Depreciation and amortization 3,738,871
--------------
Total Expenses 13,985,599
Net Loss $ (3,027,515)
==============
Partnership's share of Net Loss $ (2,961,227)
==============
Other Partners' share of Net Loss $ (66,288)
==============
</TABLE>
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 December 31, 1996, $55,000 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)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At December 31, 1996, the Partnership had cash and cash equivalents of $501,380
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 $2,735,000 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 December 31, 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 nine months ended December 31, 1996.
Results of Operations
The Partnership's results of operations for the three and nine months ended
December 31, 1996 resulted in a net loss of $908,474 and $3,215,235 as compared
to net losses of $1,088,980 and $3,363,121 for the same periods in 1995. The
decrease in net losses is primarily attributable to a decrease in equity in
losses of Local Limited Partnerships, offset by a decrease in revenue. The
decrease in equity in losses of Local Limited Partnerships is due to improved
operations which has resulted from an increase in occupancy and rental revenue
of certain Local Limited Partnships. The decrease in revenue is due to
reclassification of a prior year distribution which decreased investments in
Local Limited Partnerships.
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.
<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 December 31, 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: February 12, 1997 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> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1996
<CASH> 501,380
<SECURITIES> 2,789,137
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 22,263<F1>
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 35,055,582<F2>
<CURRENT-LIABILITIES> 170,420<F3>
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 34,713,946
<TOTAL-LIABILITY-AND-EQUITY> 35,055,582<F4>
<SALES> 000
<TOTAL-REVENUES> 111,880<F5>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 365,888<F6>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (3,215,235)<F7>
<EPS-PRIMARY> (46.18)
<EPS-DILUTED> 000
<FN>
<F1> Current Assets includes Prepaid insurance of $6,771 and Interest receivable of $15,492.
<F2>Total Assets includes Investments in Local Limited Partnerships of $31,742,802.
<F3>Included in Current Liabilities are Accounts payable to affiliates of $114,572 and accounts payable and
accrued expenses of $55,848.
<F4>Included in Total Liabilities and Equity is Deferred revenue of $171,216.
<F5>Total Revenue includes Investment of $117,969 and Other revenue of $(6,089).
<F6>Included in Other Expenses are General and Administrative of $171,832, Asset management fees of $171,858 and
Amortization of $22,198.
<F7>Net Loss includes Equity in losses of Local Limited Partnerships of $2,961,227.
</FN>
</TABLE>
