August 14, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Boston Financial Qualified Housing Tax Credits L.P. V
Report on Form 10-Q for Quarter Ended June 30, 2000
File Number 0-19706
Dear Sir/Madam:
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-Q1.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 June 30, 2000
------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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 - June 30, 2000 (Unaudited) and
March 31, 2000 1
Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 2000 and 1999 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Three Months Ended June 30,
2000 3
Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 2000 and 1999 4
Notes to the Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
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
June 30, 2000 and March 31, 2000
<TABLE>
<CAPTION>
June 30, March 31,
2000 2000
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 254,222 $ 523,352
Investments in Local Limited Partnerships, net (Note 1) 18,313,406 18,818,290
Marketable securities, at fair value 2,652,537 2,332,268
Other assets 38,229 29,074
------------- -------------
Total Assets $ 21,258,394 $ 21,702,984
============= =============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 97,257 $ 121,184
Accounts payable and accrued expenses 43,580 43,605
Deferred revenue 133,193 131,198
------------- -------------
Total Liabilities 274,030 295,987
------------- -------------
General, Initial and Investor Limited Partners' Equity 21,015,827 21,443,142
Net unrealized losses on marketable securities (31,463) (36,145)
------------- -------------
Total Partners' Equity 20,984,364 21,406,997
------------- -------------
Total Liabilities and Partners' Equity $ 21,258,394 $ 21,702,984
============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
1999
2000 Restated
------------- -------------
Revenue:
<S> <C> <C>
Investment $ 42,487 $ 40,737
Other 116,129 19,609
------------- -------------
Total Revenue 158,616 60,346
------------- -------------
Expenses:
General and administrative (includes
reimbursements to an affiliate in the
amounts of $38,914 and $28,655, respectively) 67,259 67,349
Asset management fees, related party 62,841 61,501
Amortization 5,899 5,965
------------- -------------
Total Expenses 135,999 134,815
------------- -------------
Income (loss) before equity in losses of
Local Limited Partnerships 22,617 (74,469)
Equity in losses of Local Limited
Partnerships (Note 1) (449,932) (653,758)
------------- -------------
Net Loss $ (427,315) $ (728,227)
============= =============
Net Loss allocated:
To General Partners $ (4,273) $ (7,282)
To Limited Partners (423,042) (720,945)
------------- -------------
$ (427,315) $ (728,227)
============= =============
Net Loss per Limited Partnership Unit
(68,929 Units) $ (6.14) $ (10.46)
============= ==============
</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)
For the Three Months Ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
Partners Partner Partners Losses Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 2000 $ (377,675) $ 5,000 $ 21,815,817 $ (36,145) $ 21,406,997
----------- --------- -------------- ----------- -------------
Comprehensive Income (Loss):
Change in net unrealized
losses on marketable securities
available for sale - - - 4,682 4,682
Net Loss (4,273) - (423,042) - (427,315)
----------- --------- -------------- ----------- -------------
Comprehensive Income (Loss) (4,273) - (423,042) 4,682 (422,633)
----------- --------- -------------- ----------- -------------
Balance at June 30, 2000 $ (381,948) $ 5,000 $ 21,392,775 $ (31,463) $ 20,984,364
=========== ========= ============== ========== =============
</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
For the Three Months Ended June 30, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
1999
2000 (Restated)
--------- --------
<S> <C> <C>
Net cash used for operating activities $ (34,009) $ (30,766)
--------- ----------
Cash flows from investing activities:
Purchases of marketable securities (578,907) (569,165)
Proceeds from sales and maturities of marketable securities 264,523 475,253
Cash distributions received from Local
Limited Partnerships 79,263 163,792
Advance to Local Limited Partnership - (180,000)
--------- ----------
Net cash used for investing activities (235,121) (110,120)
--------- ----------
Net decrease in cash and cash equivalents (269,130) (140,886)
Cash and cash equivalents, beginning 523,352 449,931
--------- ----------
Cash and cash equivalents, ending $ 254,222 $ 309,045
========= ==========
</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 THE 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, 2000. 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
financial statements is as of March 31, 2000 and 1999.
1. Investments in Local Limited Partnerships
The Partnership uses the equity method to account for its limited partner
interest in twenty-six Local Limited Partnerships. Each of these Local Limited
Partnerships owns and operates multi-family housing complexes, most of which are
government-assisted. The Partnership, as Investor Limited Partner pursuant to
the various Local Limited Partnership Agreements which contain certain operating
and distribution restrictions, 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, Westgate and Huguenot Park, which are 95%, 49.5% and 88.55%,
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 June
30, 2000:
<TABLE>
<CAPTION>
Capital contributions and advances paid to Local Limited Partnerships and
purchase price paid to withdrawing partners of Local Limited
<S> <C>
Partnerships $ 55,571,437
Cumulative equity in losses of Local Limited
Partnerships (excluding cumulative unrecognized
losses of $2,892,643) (35,594,951)
Cumulative cash distributions received
from Local Limited Partnerships (1,673,586)
--------------
Investments in Local Limited Partnerships
before adjustment 18,302,900
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,006,357
Accumulated amortization of acquisition
fees and expenses (231,915)
---------------
Investments in Local Limited Partnerships 19,077,342
Reserve for valuation of Investment in Local
Limited Partnership (763,936)
---------------
$ 18,313,406
===============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
NOTES TO THE FINANCIAL STATEMENTS (continued)
(Unaudited)
1. Investments in Local Limited Partnerships (continued)
The Partnership's share of the net losses of the Local Limited Partnership's for
the three months ended June 30, 2000 is $745,723. For the three months ended
June 30, 2000, the Partnership has not recognized $295,791 of equity in losses
relating to several 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)
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 is 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 and interest rates.
Liquidity and Capital Resources
At June 30, 2000, the Partnership had cash and cash equivalents of $254,222,
compared with $523,352 at March 31, 2000. The decrease is attributable to
purchases of marketable securities in excess of proceeds from sales and
maturities of marketable securities and cash used for operating activities,
partially offset by cash distributions received from Local Limited Partnerships.
Approximately $2,292,000 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.
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. To date,
the Partnership has advanced approximately $303,000 to Local Limited
Partnerships to fund operating deficits.
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, 2000, the Partnership had no
contractual or other obligation to any Local Limited Partnership, which had not
been paid or provided for.
Cash Distributions
No cash distributions were made during the three months ended June 30, 2000.
Results of Operations
The Partnership's results of operations for the three months ended June 30, 2000
resulted in a net loss of $427,315 as compared to a net loss of $728,227 for the
same period in 1999. The decrease in net loss is primarily attributable to a
decrease in equity in losses of Local Limited Partnerships and an increase to
other revenue. Equity in losses of Local Limited Partnerships decreased
primarily due to an increase in unrecognized losses for Local Limited
Partnerships whose carrying values have been reduced to zero. Other revenue
increased as a result of a refund of legal costs related to one Local Limited
Partnership.
<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
Historic New Center in Detroit, Michigan operated at a deficit for the period
ended June 30, 2000 due to low occupancy and collection problems. A portion of
the operating deficit will be recovered by a release from the replacement
reserve account. Occupancy improved slightly to 89% as of June 30, 2000.
Property management is focusing on changing the tenant profile through a tighter
tenant screening process in order to enhance the longevity of the property. In
conjunction with these efforts, management is working to increase curb appeal
and implement new marketing programs to increase qualified tenant traffic. The
Managing General Partner continues to meet with property management on a monthly
basis to monitor the progress at the property.
As previously reported on Westgate, in order to protect the remaining tax
credits generated by the property, the Managing General Partner consummated the
transfer of 50% of the Partnership's capital and profits in the property 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
local 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
of June 30, 2000, occupancy at Westgate decreased to 90%, from 96% as of March
31, 2000 and as a result, the property is operating at a deficit. However,
tenant collections continue to improve, property expenses are in line with
budget, and replacement reserves are fully funded.
As previously reported on Wheeler House, debt-restructuring negotiations with
the lender ended unsuccessfully in the beginning of November 1999. Consequently,
the lender foreclosed on the property in early January 2000. The foreclosure
will result in recapture of credits of approximately $3.70 per unit which will
be on your 2000 Schedule K-1 that will be filed in April of 2001. In addition,
the foreclosure will result in the allocation of taxable income to the
Partnership and loss of future benefits associated with this property.
The Partnership has implemented policies and practices for assessing potential
impairment of its investments in Local Limited Partnerships. The investments are
analyzed by real estate experts to determine if impairment indicators exist. If
so, the carrying value is compared to the undiscounted future cash flows
expected to be derived from the asset. If there is a significant impairment in
carrying value, a provision to write down the asset to fair value will be
recorded in the Partnership's financial statements.
<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, 2000.
<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 14, 2000 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>
