WNC HOUSING TAX CREDIT FUND V, L.P.,
SERIES 4
-------------------
Supplement Dated May 16, 1997
To Prospectus Dated July 26, 1995
This Supplement is part of, and should be read in conjunction with, the
Prospectus of WNC Housing Tax Credit Fund V, L.P., Series 4 ("Series 4") dated
July 26, 1995 (the "Prospectus"), and the Supplement to Prospectus dated March
20, 1997. Capitalized terms used but not defined in this Supplement have the
meanings given to them in the Prospectus.
TABLE OF CONTENTS Page
Status of Series 4 Offering................................................1
Local Limited Partnership Investments......................................1
STATUS OF SERIES 4 OFFERING
The Fund is now offering a maximum of 25,000 Units in Series 4 on the terms
set forth herein and in the Prospectus. As of the date hereof, Series 4 has
received and accepted subscriptions in the amount of $16,750,450 (16,830 Units),
of which $251,500 currently is represented by Promissory Notes.
LOCAL LIMITED PARTNERSHIP INVESTMENTS
The Supplement dated March 20, 1997 includes a description of 10 Local
Limited Partnership Interests, all of which have been acquired as of the date
hereof. This Supplement includes a description of another Local Limited
Partnership Interest acquired by Series 4. The Apartment Complexes owned by
these 11 Local Limited Partnerships are located in seven states and are being or
have been developed and constructed by 10 different development teams. Each of
the Apartment Complexes has received a reservation of Low Income Housing
Credits. While the Fund Manager believes that Series 4 is reasonably likely to
retain an interest in each of these Local Limited Partnerships, Series 4 may not
do so as a result of the failure by a Local Limited Partnership to satisfy one
or more conditions precedent to the payment of each installment payment, the
inability of Series 4 to raise additional capital necessary to complete the
purchase of the Local Limited Partnership Interests, or other factors. Moreover,
the terms of any acquisition may differ from those as described. Accordingly,
investors should not rely on the ability of Series 4 to retain an investment in
all these Local Limited Partnerships on the indicated terms in deciding whether
to invest in Series 4.
Series 4 has acquired a Local Limited Partnership Interest in Greyhound
Associates I, L.P., a Missouri limited partnership ("GREYHOUND"). GREYHOUND owns
the Greyhound Apartments in Windsor, Missouri.
The following tables contain information concerning the Apartment Complex
and the Local Limited Partnership identified herein:
<TABLE>
ACTUAL OR LOCAL LIMITED YEAR
ESTIMATED ESTIMATED PERMANENT PARTNERSHIP'S CREDITS
CONSTRUC- DEVELOP- MORTGAGE ANTICIPATED TO BE
LOCAL PROJECT TION MENT COST NUMBER OF BASIC LOAN AGGREGATE FIRST
LIMITED NAME/NUMBER LOCATION OF COMPLETION (INCLUDING APARTMENT MONTHLY PRINCIPAL TAX CREDITS AVAIL-
PARTNERSHIP OF BUILDINGS PROPERTY DATE LAND COST) UNITS RENTS AMOUNT (1) ABLE
- ---------- -------------- ----------- ---------- ----------- ------------- --------- ------------ -------------- -------
<S> <C> <C> <C> <C> <C> <C>
GREYHOUND Greyhound Windsor March $1,382,000 16 2BR units $270 $643,000 $1,127,500 1998
Apartments (Henry 1998 8 3BR units $305 MHDC (2)
County),
3 buildings Missouri
<FN>
(1) Low Income Housing Credits are available over a 10-year period. For the year
in which the credit first becomes available, Series 4 will receive only that
percentage of the annual credit which corresponds to the number of months during
which Series 4 was a limited partner of the Local Limited Partnership, and
during which the Apartment Complex was completed and in service. See the
discussion under "The Low Income Housing Credit" in the Prospectus.
(2) Missouri Housing Development Commission ("MHDC") will provide the mortgage
loan for a term of 40 years at an annual interest rate of 1%. Principal and
interest will be payable monthly based on a 40-year amortization schedule.
</FN>
</TABLE>
The following is a discussion of the approximate population and
general location of, and the employers in, the community in which the Apartment
Complex is located:
Windsor (GREYHOUND): Windsor (population 3,100) is in Henry County, in
west-central Missouri, approximately 80 miles southeast of Kansas City, on State
Highway 52. The major employers for residents of Henry County are U.S. Safety
(Parmelee) (personal safety products), Windsor schools, and Royal Oaks Hospital.
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<PAGE>
<TABLE>
ESTIMATED
ACQUISI-
LOCAL SHARING RATIOS: TION FEES
GENERAL ALLOCATIONS SERIES 4's PAYABLE
LOCAL LOCAL PARTNER'S SHARING RATIOS: AND SALE OR CAPITAL TO
LIMITED GENERAL PROPERTY DEVELOPMENT CASH FLOW REFINANCING CONTRIBUTION FUND
PARTNERSHIP PARTNER MANAGER (1) FEE (2) (3) PROCEEDS (4) MANAGER
- --------------- -------------- ------------ ------------- ---------------- --------------- ----------------- -----------
<S> <C> <C> <C> <C> <C> <C>
GREY- WCM WCM $198,834 WNC: 15% but 99/1 (7) $641,829 $64,180
HOUND Community Community no less than 50/.1/49.9 (8)
Development Development $1,500 per year
Corporation Corporation LGP: 40% of
(5) (5) the balance
The balance:
Lockwood WNC: 50%
Realty, LGP: 50%
Inc.
(6)
<FN>
(1) The maximum annual management fee payable to the property manager generally
is determined pursuant to lender regulations. The Local General Partner is
authorized to employ either itself or one of its Affiliates, or a third party,
as property manager for leasing and management of the Apartment Complex so long
as the fee therefor does not exceed the amount authorized and approved by the
lender for the Apartment Complex.
(2) The Local Limited Partnership will pay its Local General Partner or an
Affiliate of its Local General Partner a development fee in the amount set
forth, for services incident to the development and construction of the
Apartment Complex, which services include: negotiating the financing commitments
for the Apartment Complex; securing necessary approvals and permits for the
development and construction of the Apartment Complex; and obtaining allocations
of Low Income Housing Credits. This payment will be made in installments after
receipt of each installment of the capital contributions made by Series 4.
(3) Reflects the amount of the net cash flow from operations, if any, to be
distributed to Series 4 ("WNC") and the Local General Partner ("LGP") of the
Local Limited Partnership for each year of operations. Generally, to the extent
that the specific dollar amounts which are to be paid to WNC are not paid
annually, they will accrue and be paid from sale or refinancing proceeds as an
obligation of the Local Limited Partnership.
(4) Series 4 will make its capital contributions to the Local Limited
Partnership in stages, with each contribution due when certain conditions
regarding construction or operations of the Apartment Complex have been
fulfilled. See "Investment Policies" and "Terms of the Local Limited Partnership
Agreements" under "Investment Objectives and Policies" in the Prospectus.
(5) WCM Community Development Corporation ("WCM") is a Missouri non-profit
corporation which was formed in 1996. WCM has developed 22 affordable
properties. WCM has represented to Series 4 that, as of August 31, 1996, it had
a fund balance in excess of $900,000.
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<PAGE>
(6) Lockwood Realty, Inc. ("Lockwood") is a Missouri corporation which was
formed in 1979, originally under the name of SMR Realty, Inc. Lockwood has been
involved in property management for 18 years. Currently, Lockwood manages more
than 6,000 units in 258 projects.
(7) Subject to certain special allocations, the profits, losses and Low Income
Housing Credits of GREYHOUND will be allocated 99% to Series 4 and 1% to the
Local General Partner. The Local Limited Partnership will also generate Missouri
low income housing tax credits which will be allocated entirely to Affordable
Equity Partners, Inc., a Missouri corporation which is the special limited
partner.
(8) Reflects the respective percentage interests of (a) Series 4, (b) Affordable
Equity Partners, Inc., the special limited partner, and (c) the Local General
Partner, in any net cash proceeds from sale or refinancing of the Apartment
Complex, after payment of the mortgage loan and other Local Limited Partnership
obligations (see, e.g., note 3), and the following, in the order set forth: the
capital contribution of Series 4; and the capital contribution of the Local
General Partner.
</FN>
</TABLE>
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