November 12, 1999
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 September 30, 1999
File Number 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/Stephen Guilmette
Stephen Guilmette
Assistant Controller
QH5-Q2.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(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, 1999
-----------------------------------------------
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, 1999 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
<TABLE>
<CAPTION>
<S> <C>
PART I - FINANCIAL INFORMATION Page No.
- ------------------------------ -------
Item 1. Financial Statements
Combined Balance Sheets - September 30, 1999 (Unaudited) and
March 31, 1999 1
Combined Statements of Operations (Unaudited) - For the Three and Six
Months Ended September 30, 1999 and 1998 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Six Months Ended September 30, 1999 3
Combined Statements of Cash Flows (Unaudited) - For the Six
Months Ended September 30, 1999 and 1998 4
Notes to Combined 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 12
SIGNATURE 13
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED BALANCE SHEETS - September 30, 1999 and March 31, 1999
<TABLE>
<CAPTION>
September 30, March 31,
1999 1999
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 291,040 $ 450,450
Accounts receivable from affiliates, net - 173,739
Tenant security deposit escrow 3,788 3,758
Investments in Local Limited Partnerships, net of reserve
for valuation of $590,197 (Note 1) 20,308,991 21,538,791
Marketable securities, at fair value 2,574,918 2,666,281
Prepaid assets 1,489 1,489
Rental property at cost, net of accumulated
depreciation 766,376 778,843
Replacement reserve escrow 9,246 7,425
Other assets 28,372 32,658
------------- -------------
Total Assets $ 23,984,220 $ 25,653,434
============= =============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 16,795 $ 143,443
Accounts payable and accrued expenses 57,207 133,838
Mortgage note payable 705,329 706,873
Tenant security deposits payable 3,742 3,803
Deferred revenue 127,686 146,818
------------- -------------
Total Liabilities 910,759 1,134,775
------------- -------------
Minority interest in Local Limited Partnership 116,888 116,986
General, Initial and Investor Limited Partners' Equity 22,975,977 24,394,204
Net unrealized gains (losses) on marketable securities (19,404) 7,469
------------- -------------
Total Partners' Equity 22,956,573 24,401,673
------------- -------------
Total Liabilities and Partners' Equity $ 23,984,220 $ 25,653,434
============= =============
The accompanying notes are an integral part of these combined financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Six Months Ended September 30, 1999 and 1998
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1999 1998 1999 1998
------------- ------------- ------------- -------------
Revenue:
<S> <C> <C> <C> <C>
Rental $ 30,194 $ 28,988 $ 60,116 $ 58,463
Investment 37,918 30,293 78,655 74,558
Other 24,096 71,084 44,302 73,548
------------- ------------- ------------- -------------
Total Revenue 92,208 130,365 183,073 206,569
------------- ------------- ------------- -------------
Expenses:
General and administrative
(includes reimbursements
to an affiliate in the amounts
of $52,382 and $51,090
in 1999 and 1998, respectively) 127,226 47,927 194,575 107,066
Asset management fees,
related party 61,496 60,556 122,997 121,112
Rental operations, exclusive
of depreciation 8,805 9,935 22,052 20,017
Bad debt expense 173,739 - 173,739 -
Interest 29,171 16,865 35,314 36,365
Depreciation 6,776 11,177 13,551 21,177
Amortization 6,446 5,193 12,411 12,409
------------- ------------- ------------- -------------
Total Expenses 413,659 151,653 574,639 318,146
------------- ------------- ------------- -------------
Loss before minority interest in
losses of Local Limited Partnership
and equity in losses of Local Limited
Partnerships (321,451) (21,288) (391,566) (111,577)
Minority interest in losses of
Local Limited Partnership 142 84 98 185
Equity in losses of Local
Limited Partnerships (Note 1) (373,001) (694,070) (1,026,759) (1,497,112)
------------- ------------- ------------- -------------
Net Loss $ (694,310) $ (715,274) $ (1,418,227) $ (1,608,504)
============= ============= ============= =============
Net Loss allocated:
To General Partners $ (6,943) $ (7,153) $ (14,182) $ (16,085)
To Limited Partners (687,367) (708,121) (1,404,045) (1,592,419)
------------- ------------- ------------- -------------
$ (694,310) $ (715,274) $ (1,418,227) $ (1,608,504)
============= ============= ============= =============
Net Loss per Limited Partnership
Unit (68,929 Units) $ (9.97) $ (10.27) $ (20.37) $ (23.10)
============= ============= ============= ==============
The accompanying notes are an integral part of these combined financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Six Months Ended September 30, 1999
<TABLE>
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partner Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1999 $ (348,164) $ 5,000 $ 24,737,368 $ 7,469 $ 24,401,673
----------- --------- ------------ ----------- -------------
Comprehensive Loss:
Net change in net unrealized
gains on marketable
securities available for sale - - - (26,873) (26,873)
Net Loss (14,182) - (1,404,045) - (1,418,227)
----------- --------- ------------ ----------- -------------
Comprehensive Loss (14,182) - (1,404,045) (26,873) (1,445,100)
----------- --------- ------------ ----------- -------------
Balance at
September 30, 1999 $ (362,346) $ 5,000 $ 23,333,323 $ (19,404) $ 22,956,573
=========== ========= ============ =========== ============
The accompanying notes are an integral part of these combined financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended September 30, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
---------- -----------
<S> <C> <C>
Net cash used for operating activities $ (422,794) $ (185,993)
---------- -----------
Cash flows from investing activities:
Purchases of marketable securities (768,983) (1,625,326)
Proceeds from sales and maturities of marketable securities 835,665 2,088,579
Additions to rental property (1,561) (325)
Cash distributions received from Local
Limited Partnerships 191,107 323,584
Advance to Local Limited Partnership (180,000) -
Repayment of advance to Local Limited Partnership 180,000 -
---------- -----------
Net cash provided by investing activities 256,228 786,512
---------- -----------
Cash flows from financing activities:
Payment of mortgage principal (1,544) (494)
Advance from affiliate 8,700 1,000
---------- -----------
Net cash provided by financing activities 7,156 506
---------- -----------
Net increase (decrease) in cash and cash equivalents (159,410) 601,025
Cash and cash equivalents, beginning 450,450 239,932
---------- -----------
Cash and cash equivalents, ending $ 291,040 $ 840,957
========== ===========
Supplemental disclosure:
Cash paid for interest $ 35,314 $ 36,365
========== ===========
The accompanying notes are an integral part of these combined financial statements.
</TABLE>
<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 Form 10-K for the
year ended March 31, 1999. 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.
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 of the Local Limited Partnerships included in the accompanying
combined financial statements is as of June 30, 1999.
1. 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 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 interests 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,
excluding Burbank, at September 30, 1999:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited Partnerships and purchase price paid
to withdrawing partners of Local Limited
Partnerships $ 55,269,931
Cumulative equity in losses of Local Limited Partnerships
(excluding cumulative unrecognized losses of $1,881,764) (33,629,787)
Cumulative cash distributions received from Local Limited Partnerships (1,532,961)
--------------
Investments in Local Limited Partnerships before adjustment 20,107,183
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,006,357
Accumulated amortization of acquisition fees and expenses (214,352)
--------------
Investments in Local Limited Partnerships 20,899,188
Reserve for valuation of investment in Local Limited Partnership (590,197)
--------------
$ 20,308,991
</TABLE>
The Partnership's share of net losses of the Local Limited Partnerships,
excluding Burbank, for the six months ended September 30, 1999 totaled
$1,672,083. For the six months ended September 30, 1999, the Partnership has not
recognized $645,324 of equity in losses relating to five Local Limited
Partnerships where cumulative equity in losses and cumulative distributions from
Local Limited Partnerships exceeded its total investments in these Local Limited
Partnerships.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
NOTES TO COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
<TABLE>
<CAPTION>
2. Supplemental Combining Schedules
Balance Sheets
Boston Financial
Qualified Housing
Tax Credits Burbank Combined
L.P. V (A) (B) Eliminations (A)
Assets
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 284,647 $ 6,393 $ - $ 291,040
Tenant security deposit escrow - 3,788 - 3,788
Investments in Local
Limited Partnerships, net 20,243,592 - 65,399 20,308,991
Marketable securities, at fair value 2,574,918 - - 2,574,918
Prepaid assets - 1,489 - 1,489
Rental property at cost, net of
accumulated depreciation - 740,524 25,852 766,376
Replacement reserve escrow - 9,246 - 9,246
Other assets 28,372 - - 28,372
------------- ---------------- --------------- --------------
Total Assets $ 23,131,529 $ 761,440 $ 91,251 $ 23,984,220
============= ================ =============== ==============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 8,095 $ 9,700 $ (1,000) $ 16,795
Accounts payable and accrued expenses 40,175 17,032 - 57,207
Mortgage note payable - 705,329 - 705,329
Tenant security deposits payable - 3,742 - 3,742
Deferred revenue 127,686 - - 127,686
------------- ---------------- --------------- --------------
Total Liabilities 175,956 735,803 (1,000) 910,759
------------- ---------------- --------------- --------------
Minority interest in Local Limited
Partnership - - 116,888 116,888
------------- ---------------- --------------- --------------
General, Initial and Investor
Limited Partners' Equity 22,974,977 25,637 (24,637) 22,975,977
Net unrealized losses on
marketable securities (19,404) - - (19,404)
------------- ---------------- --------------- --------------
Total Partners' Equity 22,955,573 25,637 (24,637) 22,956,573
------------- ---------------- --------------- --------------
Total Liabilities and Partners' Equity $ 23,131,529 $ 761,440 $ 91,251 $ 23,984,220
============= ================ =============== ==============
</TABLE>
(A) As of September 30, 1999.
(B) As of June 30, 1999.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
NOTES TO COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
<TABLE>
<CAPTION>
2. Supplemental Combining Schedules (continued)
Statements of Operations
For the Six Months Ended September 30, 1999
Boston Financial
Qualified Housing
Tax Credits Burbank Combined
L.P. V (A) (B) Eliminations (A)
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 60,116 $ - $ 60,116
Investment 78,541 114 - 78,655
Other 43,387 915 - 44,302
------------- ------------- ------------- -------------
Total Revenue 121,928 61,145 - 183,073
------------- ------------- ------------- -------------
Expenses:
General and administrative 194,575 - - 194,575
Asset management fees, related party 122,997 - - 122,997
Rental operations, exclusive
of depreciation - 22,052 - 22,052
Bad debt expense 174,739 - (1,000) 173,739
Interest - 35,314 - 35,314
Depreciation - 13,551 - 13,551
Amortization 12,411 - - 12,411
------------- ------------- ------------- -------------
Total Expenses 504,722 70,917 (1,000) 574,639
------------- ------------- ------------- -------------
Loss before minority interest in losses
of Local Limited Partnership and equity
in losses of Local Limited
Partnerships (382,794) (9,772) 1,000 (391,566)
Minority interest in losses of
Local Limited Partnership - - 98 98
Equity in losses of Local
Limited Partnerships (1,036,433) - 9,674 (1,026,759)
------------- ------------- ------------- -------------
Net Loss $ (1,419,227) $ (9,772) $ 10,772 $ (1,418,227)
============= ============= ============= =============
</TABLE>
(A) For the six months ended September 30, 1999.
(B) For the six months ended June 30, 1999.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
NOTES TO COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
<TABLE>
<CAPTION>
2. Supplemental Combining Schedules (continued)
Statements of Cash Flows
Boston Financial
Qualified Housing
Tax Credits Burbank Combined
L.P. V (A) (B) Eliminations (A)
Net cash provided by (used for)
<S> <C> <C> <C> <C>
operating activities $ (423,073) $ 279 $ - $ (422,794)
------------- -------------- --------------- --------------
Cash flows from investing activities:
Purchases of marketable securities (768,983) - - (768,983)
Proceeds from sales and maturities
of marketable securities 835,665 - - 835,665
Additions to rental property - (1,561) - (1,561)
Cash distributions received from
Local Limited Partnerships 191,107 - - 191,107
Advance to Local Limited Partnership (180,000) - - (180,000)
Repayment of advance to Local Limited
Partnership 180,000 - - 180,000
------------- -------------- --------------- --------------
Net cash provided by (used for)
investing activities 257,789 (1,561) - 256,228
------------- -------------- --------------- --------------
Cash flows from financing activities:
Payment of mortgage principal - (1,544) - (1,544)
Advance from affiliate - 8,700 - 8,700
------------- -------------- --------------- --------------
Net cash provided by financing activities - 7,156 - 7,156
------------- -------------- --------------- --------------
Net increase (decrease) in cash and
cash equivalents (165,284) 5,874 - (159,410)
Cash and cash equivalents, beginning 449,931 519 - 450,450
------------- -------------- --------------- --------------
Cash and cash equivalents, ending $ 284,647 $ 6,393 $ - $ 291,040
============= ============== =============== ==============
</TABLE>
(A) For the six months ended September 30, 1999.
(B) For the six months ended June 30, 1999.
<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
Certain matters discussed herein constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The
Partnership intends such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements and are including this
statement for purposes of complying with these safe harbor provisions. Although
the Partnership believes the forward-looking statements are based on reasonable
assumptions, the Partnership can give no assurance that their expectations will
be attained. Actual results and timing of certain events could differ materially
from those projected in or contemplated by the forward-looking statements due to
a number of factors, including, without limitation, general economic and real
estate conditions, interest rates and unanticipated delays or expenses on the
part of the Partnership and their suppliers in achieving year 2000 compliance.
Liquidity and Capital Resources
At September 30, 1999, the Partnership (including Burbank) had cash and cash
equivalents of $291,040, as compared with $450,450 at March 31, 1999. The
decrease is primarily attributable to the use of cash for operating activities.
This decrease was partially offset by proceeds from sales and maturities of
marketable securities in excess of purchases of marketable securities, as well
as cash distributions received from Local Limited Partnerships.
Approximately $2,239,000 of marketable securities has been designated as
Reserves by the Managing General Partner. The Reserves, as defined in the
Partnership Agreement, 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, will be sufficient to fund the Partnership's ongoing operations
and any contingencies that may arise. Reserves may be used to fund Local Limited
Partnership operating deficits if the Managing General Partner deems such
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, 1999, 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, 1999.
Results of Operations
The Partnership's results of operations for the three and six months ended
September 30, 1999 resulted in net losses of $694,310 and $1,418,227,
respectively, as compared to net losses of $715,274 and $1,608,504 for the same
respective periods in 1998. The decrease in net loss is primarily attributable
to a decrease in equity in losses of Local Limited Partnerships, partially
offset by an increase in bad debts and legal expenses. Equity in losses of Local
Limited Partnerships improved due to an increase in losses not recognized by the
Partnership for Local Limited Partnerships whose cumulative equity in losses and
cumulative distributions exceeded its total investment in those partnerships.
<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 (continued)
Property Discussions
Most of the 27 Local Limited Partnerships have stabilized operations. The
majority of these stabilized properties are operating at break-even or are
generating positive operating cash flow.
Historic New Center in Detroit, Michigan has been generating operating deficits
due to low occupancy and collection problems. However, as previously reported,
the Managing General Partner was successful in finalizing the negotiations with
the lenders for a loan modification. This loan modification should allow the
property to meet debt service coverage and provide capital for the physical
improvements. In addition, a new property manager was hired in October 1998. The
new property manager will focus on implementing a new marketing strategy and
improving rent collections. As of June 30, 1999, occupancy for Historic New
Center improved slightly to 95%. Further, the property is operating just above
break-even. However, bad debt expense continues to be high as a result of poor
collections. The Managing General Partner continues to meet with property
management on a monthly basis to work on this issue.
Westgate, located in North Dakota, has been experiencing declining occupancy.
Occupancy as of March 31, 1999 was 85%. Affiliates of the Managing General
Partner have been working with the Local General Partner who has raised some
concerns over the long-term financial health of the property. In response to
these concerns and to reduce possible future risk, the Managing General Partner
consummated the transfer of 50% of the Partnership's capital and profits in the
properties to an affiliate of the Local General Partner in November 1997.
Subsequently, the Local General Partner transferred both its general partner
interest and 48.5% of the partnership interest in Westgate to a non-profit
general partner effective June 17, 1999. As a result of this change, the date
when the Managing General Partner has the right to transfer the remaining
interest to the new Local General Partner was amended to reflect the June 17,
1999 effective date. Accordingly, the Managing General Partner has the right to
transfer the Partnership's remaining interest to the new Local General Partner
any time after one year from June 17, 1999. Further, the new Local General
Partner has the right to call the remaining interest after the tax credit period
has expired.
As previously reported, in 1997, the Local General Partner of Wheeler House,
located in Nashua, New Hampshire was removed due to financial insolvency and an
affiliate of the Managing General Partner stepped in as temporary Local General
Partner. As the new Local General Partner, the affiliate of the Managing General
Partner proceeded to negotiate with the lender on temporary debt restructuring
to reduce interest rates and extend the due date of the loan to 1998. At the
same time, the Managing General Partner began exploring refinancing
opportunities. A potential lender was identified and performed an appraisal in
March. The appraisal showed inadequate loan to value coverage. The Managing
General Partner is currently negotiating with the lender and is exploring
measures to protect the Partnership's investment and the remaining tax credits
generated by the property. However, it is possible that the Partnership will not
be able to retain its interest in Wheeler House through 1999. A foreclosure
would result in recapture of credits, the allocation of taxable income to the
Partnership, and loss of future benefits associated with this property.
Impact of Year 2000
The Managing General Partner's plan to resolve year 2000 issues involves the
following four phases: assessment, remediation, testing and implementation. To
date, the Managing General Partner has fully completed an assessment of all
information systems that may not be operative subsequent to 1999 and has begun
the remediation, testing and
<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 (continued)
Impact of Year 2000 (continued)
implementation phase on both hardware and software systems. Because the hardware
and software systems of both the Partnership and Local Limited Partnerships are
generally the responsibility of obligated third parties, the plan primarily
involves ongoing discussions with and obtaining written assurances from these
third parties that pertinent systems will be 2000 compliant. In addition,
neither the Partnership nor the Local Limited Partnerships are incurring
significant additional costs since such expenses are principally covered under
service contracts with vendors. As of November 1999, the General Partner is in
the final stages of its Year 2000 remediation plan and believes all major
systems are compliant; any systems still being updated are not considered
significant to the Partnership's operations. However, despite the likelihood
that all significant year 2000 issues are expected to be resolved in a timely
manner, the Managing General Partner has no means of ensuring that all systems
of outside vendors or other entities that impact operations will be 2000
compliant. The Managing General Partner does not believe that the inability of
third parties to address their year 2000 issues in a timely manner will have a
material impact on the Partnership. However, the effect of non-compliance by
third parties is not readily determinable.
Management has also evaluated a worst case scenario projection with respect to
the year 2000 and expects any resulting disruption of either the Managing
General Partner's activities or any Local Limited Partnership's operations to be
short-term inconveniences. Such problems, however, are not likely to fully
impede the ability to carry out necessary duties of the Partnership. Moreover,
because expected problems under a worst case scenario are not extensively
detrimental, and because the likelihood that all systems affecting the
Partnership will be compliant before 2000, the Managing General Partner has
determined that a formal contingency plan that responds to material system
failures is not necessary.
Other Development
Lend Lease Real Estate Investments, Inc., ("Lend Lease") the U.S. subsidiary of
Lend Lease Corporation and the leading U.S. institutional real estate advisor,
as ranked by assets under management, announced on July 29, 1999 it had reached
a memorandum of understanding to acquire The Boston Financial Group Limited
Partnership ("Boston Financial"). Lend Lease closed the acquisition of Boston
Financial on November 3, 1999.
Headquartered in New York and Atlanta, Lend Lease Corporation has regional
offices in 12 cities nationwide. The company ranks as the leading U.S. manager
of tax-exempt assets invested in real estate. Lend Lease is a subsidiary of Lend
Lease Corporation, an international real estate and financial services group
listed on the Australian Stock Exchange. Worldwide, Lend Lease Corporation
operates from more than 30 cities on five continents: North America, Europe,
Asia, Australia and South America. In addition to real estate investments, the
Lend Lease Group operates in the areas of property development, project
management and construction, and capital services (infrastructure). Financial
services activities include funds management, life insurance, and wealth
protection
<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, 1999.
<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 12, 1999 BOSTON FINANCIAL QUALIFIED HOUSING
TAX CREDITS L.P. V
By: Arch Street V, Inc.,
its Managing General Partner
/s/Randolph G. Hawthorne
Randolph G. Hawthorne
Managing Director, Vice President and
Chief Operating Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> SEP-30-1999
<CASH> 291,040
<SECURITIES> 2,574,918
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 766,376
<DEPRECIATION> 000
<TOTAL-ASSETS> 23,984,220<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
<COMMON> 000
000
000
<OTHER-SE> 22,956,573
<TOTAL-LIABILITY-AND-EQUITY> 23,984,220<F2>
<SALES> 000
<TOTAL-REVENUES> 183,073<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 539,325<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 35,314
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,418,227)<F5>
<EPS-BASIC> (20.37)
<EPS-DILUTED> 000
<FN>
<F1>Included in Total assets is Tenant security deposit escrow of $3,788,
Investments in Local Limited Partnerships, of $20,308,991, Prepaid assets of
$1,489, Replacement reserve escrow of $9,246 and Other assets of $28,372.
<F2>Included in Total liability and equity is Accounts payable to affiliates of
$16,795, Accounts payable and accrued expenses of $57,207, Mortgage note payable
of $705,329, Tenant security deposits payable of $3,742, Deferred revenue of
$127,686 and Minority interest in Local Limited Partnerships of $116,888.
<F3>Included in Total revenue is Rental of $60,116, and Investment of $78,655
and Other of $44,302. <F4>Included in Other expenses is General and
administrative of $194,575, Bad debt expense of $173,739, Asset management fees
of $122,997, Rental operations, exclusive of depreciation of $22,052,
Depreciation of $13,551 and Amortization of $12,411. <F5>Included in Net loss is
Minority interest in losses of Local Limited Partnership of $(98) and Equity in
losses of Local Limited Partnerships of $1,026,759.
</FN>
</TABLE>
