February 14 , 2001
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 the Quarter Ended December 31, 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-Q3.DOC
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 December 31, 2000
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-19706
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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
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(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 .
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, 2000 (Unaudited) and
March 31, 2000 1
Statements of Operations (Unaudited) - For the Three and Nine
Months Ended December 31, 2000 and 1999 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Nine Months Ended December 31, 2000 3
Statements of Cash Flows (Unaudited) - For the Nine
Months Ended December 31, 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
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
BALANCE SHEETS
December 31, March 31,
2000 2000
------------- -------------
(Unaudited)
Assets
Cash and cash equivalents $ 135,748 $ 392,154
Restricted cash 137,257 131,198
Investments in Local Limited Partnerships, net (Note 1) 17,019,151 18,818,290
Marketable securities, at fair value 2,666,578 2,332,268
Other assets 42,864 29,074
------------- -------------
Total Assets $ 20,001,598 $ 21,702,984
============= =============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 33,313 $ 121,184
Accounts payable and accrued expenses 53,655 43,605
Deferred revenue 137,257 131,198
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Total Liabilities 224,225 295,987
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General, Initial and Investor Limited Partners' Equity 19,763,996 21,443,142
Net unrealized gains (losses) on marketable securities 13,377 (36,145)
------------- -------------
Total Partners' Equity 19,777,373 21,406,997
------------- -------------
Total Liabilities and Partners' Equity $ 20,001,598 $ 21,702,984
============= =============
The accompanying notes are an integral part of
these financial statements.
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended December 31, 2000 and 1999
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
2000 1999 2000 1999
------------- ------------- ------------- ---------------
Revenue:
Investment $ 45,420 $ 39,748 $ 132,157 $ 118,289
Other 6,072 6,417 154,510 49,804
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Total Revenue 51,492 46,165 286,667 168,093
------------- ------------ ------------ ---------------
Expenses:
General and administrative
(includes reimbursements
to an affiliate in the amounts
of $179,434 and $81,414
in 2000 and 1999, respectively) 130,856 62,464 258,032 257,039
Asset management fees,
related party 62,834 61,493 188,516 184,490
Provision for valuation of
investment in Local
Limited Partnership - - - 174,739
Amortization 5,899 5,964 17,697 17,898
------------- ------------ ------------ ---------------
Total Expenses 199,589 129,921 464,245 634,166
------------- ------------ ------------ ---------------
Loss before equity in losses
of Local Limited Partnerships (148,097) (83,756) (177,578) (466,073)
Equity in losses of Local
Limited Partnerships (Note 1) (635,044) (761,707) (1,501,568) (1,788,466)
------------- ------------ ------------ ---------------
Net Loss $ (783,141) $ (845,463) $ (1,679,146) $ (2,254,539)
============= ============ ============ ===============
Net Loss allocated:
To General Partners $ (7,831) $ (8,455) $ (16,791) $ (22,545)
To Limited Partners (775,310) (837,008) (1,662,355) (2,231,994)
------------- ------------ ------------ ---------------
$ (783,141) $ (845,463) $ (1,679,146) $ (2,254,539)
============= ============ ============ ===============
Net Loss per Limited Partnership
Unit (68,929 Units) $ (11.25) $ (12.14) $ (24.12) $ (32.38)
============= ============ =========== ===============
The accompanying notes are an integral part of
these financial statements.
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
For the Nine Months Ended December 31, 2000
(Unaudited)
Net
Initial Investor Unrealized
General Limited Limited Gain
Partners Partner Partners (Losses) Total
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 - - - 49,522 49,522
Net Loss (16,791) - (1,662,355) - (1,679,146)
----------- --------- -------------- ----------- -------------
Comprehensive Income (Loss) (16,791) - (1,662,355) 49,522 (1,629,624)
----------- --------- -------------- ----------- -------------
Balance at December 31, 2000 $ (394,466) $ 5,000 $ 20,153,462 $ 13,377 $ 19,777,373
=========== ========= ============== =========== =============
The accompanying notes are an integral part of
these financial statements.
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the Nine Months Ended December 31, 2000 and 1999
(Unaudited)
1999
2000 (Restated)
--------------- ------------
Net cash used for operating activities $ (289,939) $ (476,952)
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Cash flows from investing activities:
Purchases of marketable securities (1,027,402) (768,983)
Proceeds from sales and maturities of marketable securities 745,088 1,100,921
Cash distributions received from Local
Limited Partnerships 315,847 192,084
Advances to Local Limited Partnerships - (188,700)
Repayment of advances to Local Limited Partnerships - 188,700
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Net cash provided by investing activities 33,533 524,022
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Net increase (decrease) in cash and cash equivalents (256,406) 47,070
Cash and cash equivalents, beginning 392,154 449,931
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Cash and cash equivalents, ending $ 135,748 $ 497,001
=============== =============
The accompanying notes are an integral part of
these financial statements.
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. Certain reclassifications
have been made to prior year's financial statements to conform to the current
year presentation.
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 September 30, 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
December 31, 2000:
Capital contributions and advances paid to Local Limited Partnerships and
purchase price paid to withdrawing partners of Local Limited
Partnerships $ 55,571,437
Cumulative equity in losses of Local Limited
Partnerships (excluding cumulative unrecognized
losses of $3,469,369) (36,640,824)
Cumulative cash distributions received
from Local Limited Partnerships (1,910,170)
---------------
Investments in Local Limited Partnerships
before adjustment 17,020,443
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,006,357
Accumulated amortization of acquisition
fees and expenses (243,713)
---------------
Investments in Local Limited Partnerships
before reserve for valuation 17,783,087
Reserve for valuation of investment in Local
Limited Partnership (763,936)
---------------
Investments in Local Limited Partnership $ 17,019,151
===============
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 net losses of the Local Limited Partnerships for the
nine months ended December 31, 2000 is $2,368,322. For the nine months ended
December 31, 2000, the Partnership has not recognized $866,754 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.
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 December 31, 2000, the Partnership had cash and cash equivalents of $135,748,
compared with $392,154 at March 31, 2000. The decrease is attributable to cash
used for operations and purchases of marketable securities in excess of proceeds
from sales and maturities of marketable securities, partially offset by cash
distributions received from Local Limited Partnerships.
Approximately $2,286,000 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 December 31, 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 nine months ended December 31, 2000.
Results of Operations
The Partnership's results of operations for the three and nine months ended
December 31, 2000 resulted in a net loss of $783,141 and $1,679,146,
respectively, as compared to a net loss of $845,463 and 2,254,539 for the same
periods in 1999. The decrease in net loss is primarily attributable to decreases
in equity in losses of Local Limited Partnerships from 1999 to 2000, as well as
a valuation provision recorded in 1999 related to the Partnership's investment
in a Local Limited Partnership. 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. In addition, other
revenue increased in 2000 as a result of a refund of legal costs related to one
Local Limited Partnership.
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 during the first
nine months of 2000 due to low occupancy and collection problems. Occupancy
declined during the third and fourth quarters of 2000 due to a lack of qualified
applicants, the property's poor curb appeal and as a result of site management
efforts to improve the tenant profile through a tighter tenant screening
process. Management is working to increase curb appeal and implement new
marketing programs to increase qualified tenant traffic. The Managing General
Partner continues to closely monitor the site manager's efforts to improve
property operations.
As previously reported regarding Westgate (Bismarck, North Dakota), 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. The Managing General Partner also has the right to transfer the
Partnership's remaining interest to the Local General Partner any time after one
year from the initial transfer. 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, the date when the Managing General Partner has the right to transfer
the Partnership's remaining interest to the new Local General Partner was
amended to reflect the June 17, 1999 effective date. Further, the new Local
General Partner has the right to call the remaining interest after the tax
credit period has expired, which is 2001.
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. Real estate experts
analyze the investments 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 a significant impairment in carrying value exists, a
provision to write down the asset to fair value will be recorded in the
Partnership's financial statements.
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, 2000.
9
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 14, 2001 BOSTON FINANCIAL QUALIFIED HOUSING
TAX CREDITS L.P. V
By: Arch Street V, Inc.,
its Managing General Partner
/s/Jenny Netzer
----------------------------------
Jenny Netzer
Managing Director and President