February 13, 1998
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 December 31, 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 copy of the subject report.
Very truly yours,
/s/George Fondulis
George Fondulis
Assistant Controller
QH5-Q3.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, 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 December 31, 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 - December 31, 1997 (Unaudited) and
March 31, 1997 1
Combined Statements of Operations (Unaudited) - For the Three and
Nine Months Ended December 31, 1997 and 1996 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Nine Months Ended December 31,
1997 3
Combined Statements of Cash Flows (Unaudited) - For the Nine
Months Ended December 31, 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 12
PART II - OTHER INFORMATION
Items 1-6 14
SIGNATURE 15
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, March 31,
1997 1997
(Unaudited)
(Note 1)
Assets
<S> <C> <C>
Cash and cash equivalents $ 384,407 $ 449,567
Mortgagee escrow deposits 7,130 -
Tenant security deposit escrow 2,886 -
Investments in Local Limited Partnerships, net (Note 2) 27,185,132 30,531,768
Marketable securities, at fair value 2,876,887 2,840,127
Rental property at cost, net of
accumulated depreciation (Note 3) 949,515 -
Replacement reserve escrow 2,345 -
Other assets 46,010 50,033
-------------- --------------
Total Assets $ 31,454,312 $ 33,871,495
============== ==============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 9,245 $ 88,227
Accounts payable and accrued expenses 67,853 35,692
Mortgage note payable (Note 4) 710,691 -
Tenant security deposits payable 2,886 -
Deferred revenue 158,724 174,357
-------------- --------------
Total Liabilities 949,399 298,276
-------------- --------------
Minority interest in Local Limited Partnership 134,817 -
-------------- --------------
General, Initial and Investor Limited Partners' Equity 30,383,417 33,615,539
Net unrealized losses on marketable securities (13,321) (42,320)
-------------- --------------
Total Partners' Equity 30,370,096 33,573,219
-------------- --------------
Total Liabilities and Partners' Equity $ 31,454,312 $ 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)
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Nine Months Ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
1997 1996 1997 1996
------------- ------------- ------------ ---------
<S> <C> <C> <C> <C>
Revenue:
Rental $ 28,733 $ - $ 68,042 $ -
Investment 45,856 21,135 136,992 117,969
Other 19,076 (15,015) 22,847 (6,089)
------------ ------------ ------------ ------------
Total Revenue 93,665 6,120 227,881 111,880
------------ ------------ ------------ ------------
Expenses:
General and administrative
(includes reimbursements
to an affiliate in the amounts
of $92,550 and $80,029
in 1997 and 1996, respectively) 52,038 42,468 170,677 171,832
Asset management fees,
related party 59,177 57,286 177,531 171,858
Rental operations, exclusive
of depreciation 4,728 - 14,246 -
Property management fee, related
party 1,731 - 4,122 -
Interest 20,453 - 47,772 -
Depreciation 10,589 - 24,708 -
Amortization 7,323 7,018 21,968 22,198
------------ ------------ ------------ ------------
Total Expenses 156,039 106,772 461,024 365,888
------------ ------------ ------------ ------------
Loss before equity in
losses of Local Limited
Partnerships (62,374) (100,652) (233,143) (254,008)
Minority interest in losses of
Local Limited Partnership 86 - 221 -
Equity in losses of Local
Limited Partnerships (1,106,680) (807,822) (2,999,200) (2,961,227)
------------ ------------ ------------ ------------
Net Loss $ (1,168,968) $ (908,474) $ (3,232,122) $ (3,215,235)
============ ============ ============ ============
Net Loss allocated:
To General Partners $ (11,689) $ (9,084) $ (32,321) $ (32,152)
To Limited Partners (1,157,279) (899,390) (3,199,801) (3,183,083)
------------ ------------ ------------ ------------
$ (1,168,968) $ (908,474) $ (3,232,122) $ (3,215,235)
============ ============ ============ ============
Net Loss per Limited Partnership
Unit (68,929 Units) $ (16.80) $ (13.05) $ (46.43) $ (46.18)
=========== =========== =========== ============
</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)
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Nine Months Ended December 31, 1997
<TABLE>
<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 - - - 28,999 28,999
Net Loss (32,321) - (3,199,801) - (3,232,122)
---------- ------ ------------ --------- -------------
Balance at December 31, 1997 $ (288,272) $5,000 $ 30,666,689 $ (13,321) $ 30,370,096
========== ====== ============ ========= =============
</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)
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
--------------- ----------
(Note 1)
<S> <C> <C>
Net cash used for operating activities $ (280,420) $ (206,708)
--------------- -------------
Cash flows from investing activities:
Purchases of marketable securities (2,190,434) (455,427)
Proceeds from sales and maturities of marketable securities 2,183,015 767,536
Cash distributions received from Local
Limited Partnerships 208,309 152,335
Replacement reserve deposits (196) -
Cash received upon assumption of
General Partner interest in a Combined Entity 937 -
--------------- -------------
Net cash provided by investing activities 201,631 464,444
--------------- -------------
Cash flows from financing activities:
General Partner contribution 16,045 -
Payment of mortgage principal (2,416) -
--------------- -------------
Net cash provided by financing activities 13,629 -
--------------- -------------
Net increase (decrease) in cash and cash equivalents (65,160) 257,736
Cash and cash equivalents, beginning 449,567 243,644
--------------- -------------
Cash and cash equivalents, ending $ 384,407 $ 501,380
=============== =============
Supplemental disclosure:
Cash paid for interest $ 47,772 $ -
=============== =============
</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. Certain reclassifications have been
made to prior year financial statements to conform to current year
classifications.
The General Partners have elected to report results of the Local Limited
Partnerships on a 90 day lag basis, because the Local Limited Partnerships
report their results on a calendar year basis. Accordingly, the financial
information about the Local Limited Partnerships that is included in the
accompanying combined financial statements is as of September 30, 1997 and 1996.
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 ("Wheeler House"), a Local Limited Partnership in which the
Partnership has invested. Since the Local General Partner of Wheeler House is an
affiliate of the Partnership, these combined financial statements include all
activity of Wheeler House beginning on March 1, 1997. All significant
intercompany balances and transactions have been eliminated.
Rental Property
Rental property of Wheeler House 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 Wheeler House, 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 December 31, 1997:
<TABLE>
<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 $64,077) (27,957,309)
Cumulative cash distributions received
from Local Limited Partnerships (939,472)
------------
Investments in Local Limited Partnerships
before adjustment 26,322,730
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,039,751
Accumulated amortization of acquisition
fees and expenses (177,349)
------------
Investments in Local Limited Partnerships $ 27,185,132
=============
</TABLE>
The Partnership's share of the net losses of the Local Limited Partnership's for
the nine months ended December 31, 1997 is $3,061,134. For the nine months ended
December 31, 1997, the Partnership has not recognized $61,934 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 Wheeler House are recorded at
cost, the components of which are as follows at December 31, 1997:
<TABLE>
<S> <C>
Buildings and Improvements $ 1,164,939
Land 42,000
-----------
1,206,939
Less: accumulated depreciation (257,424)
-----------
Total $ 949,515
===========
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
(Unaudited)
4. Mortgage Note Payable
Long-term debt for Wheeler House 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
balloon payment due in year 2005. 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. The mortgage note
payable as of September 30, 1997 is $710,691.
Approximate principal payments to be made on the mortgage note for each of the
next five years and thereafter are as follows:
<TABLE>
<S> <C>
Year ended December 31:
1997 $ 1,591
1998 5,240
1999 5,875
2000 6,587
2001 7,385
Thereafter 684,013
-------------
$ 710,691
=============
</TABLE>
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
Balance Sheets
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Assets
Cash and cash equivalents $ 384,007 $ 400 $ - $ 384,407
Mortgagee escrow deposits - 7,130 - 7,130
Tenant security deposit escrow - 2,886 - 2,886
Investments in Local
Limited Partnerships, net 27,280,371 - (95,239) 27,185,132
Marketable securities, at fair value 2,876,887 - - 2,876,887
Rental property at cost, net of
accumulated depreciation - 949,515 - 949,515
Replacement reserve escrow - 2,345 - 2,345
Other assets 46,010 - - 46,010
------------ --------------- ------------- ------------
Total Assets $ 30,587,275 $ 962,276 $ (95,239) $ 31,454,312
============ =============== ============= ============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 9,245 $ - $ - $ 9,245
Accounts payable and accrued expenses 49,210 18,643 - 67,853
Mortgage note payable - 710,691 - 710,691
Tenant security deposits payable - 2,886 - 2,886
Deferred revenue 158,724 - - 158,724
------------ --------------- ------------- ------------
Total Liabilities 217,179 732,220 - 949,399
------------ --------------- ------------- ------------
Minority interest in Local Limited
Partnership - - 134,817 134,817
------------ --------------- ------------- ------------
General, Initial, and Investor
Limited Partners' Equity 30,383,417 230,056 (230,056) 30,383,417
Net unrealized losses on
marketable securities (13,321) - - (13,321)
------------ --------------- ------------- ------------
Total Partners' Equity 30,370,096 230,056 (230,056) 30,370,096
------------ --------------- ------------- ------------
Total Liabilities and Partners' Equity $ 30,587,275 $ 962,276 $ (95,239) $ 31,454,312
============ =============== ============= ============
</TABLE>
(A) As of December 31, 1997. (B) As of September 30, 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>
<CAPTION>
Statements of Operations
For the Three Months Ended December 31, 1997
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 28,733 $ - $ 28,733
Investment 45,826 30 - 45,856
Other 18,987 89 - 19,076
--------------- --------------- ------------- ------------
Total Revenue 64,813 28,852 - 93,665
--------------- --------------- ------------- ------------
Expenses:
General and administrative 52,038 - - 52,038
Asset management fees, related party 59,177 - - 59,177
Rental operations, exclusive of depreciation - 4,728 - 4,728
Property management fee,
related party - 1,731 - 1,731
Interest - 20,453 - 20,453
Depreciation - 10,589 - 10,589
Amortization 7,323 - - 7,323
--------------- --------------- ------------- ------------
Total Expenses 118,538 37,501 - 156,039
--------------- --------------- ------------- ------------
Loss before equity in losses of Local
Limited Partnerships (53,725) (8,649) - (62,374)
Minority interest in losses of
Local Limited Partnership - - 86 86
Equity in losses of Local Limited
Partnerships (1,115,243) - 8,563 (1,106,680)
--------------- --------------- ------------- ------------
Net Loss $ (1,168,968) $ (8,649) $ 8,649 $ (1,168,968)
=============== =============== ============= ============
</TABLE>
(A) For the three months ended December 31, 1997. (B) For the three months ended
September 30, 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)
Statements of Operations
For the Nine Months Ended December 31, 1997
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 68,042 $ - $ 68,042
Investment 136,934 58 - 136,992
Other 22,240 607 - 22,847
--------------- --------------- ------------- ------------
Total Revenue 159,174 68,707 - 227,881
--------------- --------------- ------------- ------------
Expenses:
General and administrative 170,677 - - 170,677
Asset management fees, related party 177,531 - - 177,531
Rental operations, exclusive of depreciation - 14,246 - 14,246
Property management fee,
related party - 4,122 - 4,122
Interest - 47,772 - 47,772
Depreciation - 24,708 - 24,708
Amortization 21,968 - - 21,968
--------------- --------------- ------------- ------------
Total Expenses 370,176 90,848 - 461,024
--------------- --------------- ------------- ------------
Loss before equity in losses of Local
Limited Partnerships (211,002) (22,141) - (233,143)
Minority interest in losses of
Local Limited Partnership - - 221 221
Equity in losses of Local Limited
Partnerships (3,021,120) - 21,920 (2,999,200)
--------------- --------------- ------------- ------------
Net Loss $ (3,232,122) $ (22,141) $ 22,141 $ (3,232,122)
=============== =============== ============= ============
</TABLE>
(A) For the nine months ended December 31, 1997. (B) For the period March 1,
1997 through September 30, 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)
Statements of Cash Flows
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Net cash used for
operating activities $ (266,450) $ (13,970) $ - $ (280,420)
----------- ------------ ------------ ------------
Cash flows from investing activities:
Purchases of marketable securities (2,190,434) - - (2,190,434)
Proceeds from sales and maturities
of marketable securities 2,183,015 - - 2,183,015
Cash distributions received from
Local Limited Partnerships 208,309 - - 208,309
Replacement reserve deposits - (196) - (196)
Cash received upon assumption
of General Partner interest
in a Combined Entity - 937 - 937
----------- ------------ ------------ ------------
Net cash provided by
investing activities 200,890 741 - 201,631
----------- ------------ ------------ ------------
Cash flows from financing activities:
General Partner contribution - 16,045 - 16,045
Payment of mortgage principal - (2,416) - (2,416)
----------- ------------ ------------ ------------
Net cash provided by financing activities 13,629 - 13,629
----------- ------------ ------------ ------------
Net increase (decrease) in cash
and cash equivalents (65,560) 400 - (65,160)
Cash and cash equivalents, beginning 449,567 - - 449,567
----------- ------------ ------------ ------------
Cash and cash equivalents, ending $ 384,007 $ 400 $ - $ 384,407
=========== ============ ============ ============
</TABLE>
(A) For the nine months ended December 31, 1997. (B) For the period March 1,
1997 through September 30, 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 December 31, 1997, the Partnership, including the combined entity, had cash
and cash equivalents of $384,407, compared with $449,567 at March 31, 1997. The
decrease is attributable to net cash used for operations and purchases of
marketable securities, partially offset by proceeds from sales and maturities of
marketable securities and cash distributions received from Local Limited
Partnerships.
Approximately $2,732,000 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, 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 nine months ended December 31, 1997.
Results of Operations
The Partnership's results of operations for the three and nine months ended
December 31, 1997 resulted in a net loss of $1,168,968 and $3,232,122, as
compared to a net loss of $908,474 and $3,215,235 for the same periods in 1996.
The increase in net loss is primarily attributable to increases in equity in
losses of Local Limited Partnerships, rental operations, interest and
depreciation expenses. These changes are offset by increases in rental revenue,
investment and other revenue. The increase in equity in losses of Local Limited
Partnerships is attributable to an increase in operating expenses and a decrease
in rental revenue due to changes in local rental markets. The increases in
rental revenue, rental operations, interest and depreciation are due to the
combination of Wheeler House at March 1, 1997. The increase in investment
revenue is due to the increased volume of marketable securities and favorable
market conditions. The increase in other revenue is due to a reclassification in
1996 of a prior year distribution. These results of operations are expected to
stabilize now that Wheeler House has combined.
<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
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.
As previously reported, 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 has replaced the Local General Partner as management agent of the
property with an unaffiliated management agent. The Local General Partner's
bankruptcy status has not affected the property. Operations remain stable and
occupancy is at 94%.
Historic New Center in Detroit, Michigan is generating operating deficits due to
low occupancy and collection problems. The Managing General Partner, Local
General Partner and property manager are working to improve collections. In
October 1997, a new site manager was hired to focus on marketing and collections
as well as improvements to the appearance of the property. Further, the Managing
General Partner and the Local General Partner are in negotiations with the
lender to obtain debt service relief through a loan modification. Occupancy is
currently 94%.
Westgate, located in North Dakota, has been performing satisfactorily. However,
affiliates of the Managing General Partner have been working with the Local
General Partner whom has raised some concerns over the long-term financial
health of the property. In an effort to reduce possible future risk, the
Managing General Partner recently consummated the transfer of 50% of the
Partnership's capital and profits in Westgate to an affiliate of the Local
General Partner. The Managing General Partner has the right to transfer the
Partnership's remaining interest to the Local General Partner any time after one
year has elapsed.
<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, 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: February 13, 1998 BOSTON FINANCIAL QUALIFIED HOUSING
TAX CREDITS L.P. V
By: Arch Street V, Inc.,
its Managing General Partner
/s/William E. Haynsworth
William E. Haynsworth
Managing Director, Vice President and
Chief Operating Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> DEC-31-1997
<CASH> 384,407
<SECURITIES> 2,876,887
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 31,454,312<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 30,370,096
<TOTAL-LIABILITY-AND-EQUITY> 31,454,312<F2>
<SALES> 000
<TOTAL-REVENUES> 227,881<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 413,252<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 47,772
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (3,232,122)<F5>
<EPS-PRIMARY> (46.42)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is mortgagee escrow deposits of $7,130, tenant
security deposit escrow of $2,886, Investments in Local Limited Partnerships of
$27,185,132, rental property of $949,515, a replacement reserve escrow of $2,345
and other assets of $46,010. <F2>Included in Total Liability and Equity is
accounts payable to affiliates of $9,245, accounts payable and accrued expenses
of $67,853, mortgage notes payable of $710,691, tenant security deposits payable
of $2,886, deferred revenue of $158,724 and minority interest in Local Limited
Partnership of $134,817. <F3>Total revenue includes investment of $136,992,
rental of $68,042 and other of $22,847. <F4>Included in Other Expenses is
general and administrative of $170,677, asset management fees of $177,531,
rental operations of $14,246, property management fee of $4,122, depreciation of
$24,708 and amortization of $21,968. <F5>Net loss includes minority interest in
losses of Local Limited Partnerships of $221 and equity in losses of Local
Limited Partnerships of $2,999,200.
</FN>
</TABLE>
