August 13, 1996
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 June 30, 1996
File No. 0-19706
Gentlemen:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
/S/ Marie Reynolds
Marie D. Reynolds
Assistant Controller
QH5-Q1.DOC
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 June 30, 1996
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 June 30, 1996 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 .
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, 1996 (Unaudited) and
March 31, 1996 1
Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 1996 and 1995 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Three Months Ended June 30,
1996 3
Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 1996 and 1995 4
Notes to 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 10
SIGNATURE 11
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
BALANCE SHEETS
June 30, March 31,
1996 1996
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 349,786 $ 243,644
Other current assets 24,657 25,408
Total current assets 374,443 269,052
Investments in Local Limited Partnerships (Note 2) 33,809,234 34,878,562
Marketable securities, at fair value (Note 1) 2,926,259 3,099,255
Total Assets $ 37,109,936 $ 38,246,869
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliates $ 76,421 $ 71,527
Accounts payable and accrued expenses 50,007 67,883
Total current liabilities 126,428 139,410
Other liabilities:
Deferred revenue (Note 3) 179,318 179,318
General, Initial and Investor Limited Partners' Equity 36,844,984 37,953,300
Net unrealized losses on marketable securities (40,794) (25,159)
Total Partners' Equity 36,804,190 37,928,141
Total Liabilities and Partners' Equity $ 37,109,936 $ 38,246,869
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
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
1996 1995
Revenue:
Investment $ 48,394 $ 39,891
Other 8,826 28,150
Total Revenue 57,220 68,041
Expenses:
General and administrative (includes
reimbursements to an affiliate in the
amounts of $32,885 and $18,278, respectively) 69,180 53,800
Asset management fees, related party 57,286 55,889
Amortization 7,629 7,631
Total Expenses 134,095 117,320
Loss before equity in losses of
Local Limited Partnerships (76,875) (49,279)
Equity in losses of Local Limited
Partnerships (1,031,441) (1,082,628)
Net Loss $ (1,108,316) $ (1,131,907)
Net Loss allocated:
To General Partners $ (11,083) $ (11,319)
To Limited Partners (1,097,233) (1,120,588)
$ (1,108,316) $ (1,131,907)
Net Loss per Limited Partnership Unit
(68,929 Units) $ (15.92) $ (16.26)
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)
(Unaudited)
For the Three Months Ended June 30, 1996
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
Balance at March 31, 1996 $ (212,573) $5,000 $ 38,160,873 $ (25,159) $ 37,928,141
Net change in net unrealized
losses on marketable
securities available for sale - - - (15,635)
(15,635)
Net Loss (11,083) - (1,097,233) - (1,108,316)
Balance at June 30, 1996 $ (223,656) $5,000 $ 37,063,640 $ (40,794) $ 36,804,190
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
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
1996 1995
Net cash provided by (used for) operating activities $ (81,865) $ 4,940
Cash flows from investing activities:
Purchase of marketable securities (455,427) (848,108)
Proceeds from sales and maturities of marketable securities 613,175 950,517
Cash distributions received from Local
Limited Partnerships 30,259 52,296
Net cash provided by investing activities 188,007 154,705
Net increase in cash and cash equivalents 106,142 159,645
Cash and cash equivalents, beginning of period 243,644 72,535
Cash and cash equivalents, end of period $ 349,786 $ 232,180
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 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, 1996. 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 period financial statements to conform to current period
classifications.
1. Marketable Securities
A summary of marketable securities is as follows:
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
Debt securities issued by the US
Treasury and other US
government corporations and agencies $ 2,646,646 $ 1,016 $ (43,228) $ 2,604,434
Mortgage backed securities 288,223 2,873 (1,117) 289,979
Other debt securities 32,184 - (338) 31,846
Marketable securities at June 30, 1996 $ 2,967,053 $ 3,889 $ (44,683) $ 2,926,259
Debt securities issued by the US
Treasury and other US
government corporations and agencies $ 2,941,472 $ 3,462 $ (31,743) $ 2,913,191
Mortgage backed securities 139,230 3,428 - 142,658
Other debt securities 43,712 - (306) 43,406
Marketable securities at March 31, 1996 $ 3,124,414 $ 6,890 $ (32,049) $ 3,099,255
The contractual maturities at June 30, 1996 are as follows:
Fair
Cost Value
Due in one year or less $ 397,051 $ 396,391
Due in one year to five years 2,281,779 2,239,889
Mortgage backed securities 288,223 289,979
$ 2,967,053 $ 2,926,259
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Financial Statements (continued)
(Unaudited)
1. Marketable Securities (continued)
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
were approximately $613,000 and $951,000 for the three months ended June 30,
1996 and 1995. Included in investment income are gross gains of $1,209 and gross
losses of $822 which were realized on sales in the three months ended June 30,
1996 and gross gains of $287 and gross losses of $6,699 which were realized on
the sales in the three months ended June 30, 1995.
2. Investments in Local Limited Partnerships
The Partnership has acquired interests in twenty-seven Local Limited
Partnerships 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.
The following is a summary of Investments in Local Limited Partnerships:
June 30,
1996
(Unaudited)
Capital contributions paid to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 55,491,515
Cumulative equity in losses of Local Limited
Partnerships (22,128,508)
Cumulative cash distributions received
from Local Limited Partnerships (488,492)
Investments in Local Limited Partnerships
before adjustment 32,874,515
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,068,278
Accumulated amortization of acquisition
fees and expenses (133,559)
Investments in Local Limited Partnerships $ 33,809,234
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Financial Statements (continued)
(Unaudited)
2. Investments in Local Limited Partnerships (continued)
Summarized financial information from the combined financial of all Local
Limited Partnerships in which the Partnership has invested is as follows:
Summarized Balance Sheets - as of March 31, 1996 (Unaudited)
Assets:
Investment property, net $ 120,835,699
Current assets 5,528,954
Other assets 6,206,858
Total Assets $ 132,571,511
Liabilities and Partners' Equity:
Current liabilities $ 6,438,456
Long-term debt 86,745,778
Other liabilities 1,171,732
Total Liabilities 94,355,966
Partners' Equity 38,215,545
Total Liabilities and Partners' Equity $ 132,571,511
Summarized Income Statements - for the
three months ended March 31, 1996 (Unaudited)
Rental and other income: $ 3,642,883
Expenses:
Operating 1,760,468
Interest 1,655,084
Depreciation and amortization 1,281,757
Total Expenses 4,697,309
Net Loss $ (1,054,426)
Partnership's share of Net Loss $ (1,031,441)
Other Partners' share of Net Loss $ (22,985)
3. Deferred Revenue
Under the terms of a Local Limited Partnership Agreement, the Partnership was
required to fund a Supplemental Reserve in the amount of $196,000. The original
purpose of the contribution was to fund the development expenses of the Local
Limited Partnership. Since the funds were not needed, the Local Partnership
Agreement allows that the established Supplemental Reserve along with the
interest earned, are available to pay the Partnership its annual priority
distribution. As of June 30, 1996, $22,000 has been released to the Partnership.
The balance of the Supplemental Reserve is included in cash and cash
equivalents.
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 June 30, 1996 , the Partnership had cash and cash equivalents of $349,786,
compared with $243,644 at March 31, 1995. The increase is attributable to
proceeds from sales and maturities of marketable securities and cash
distributions received from Local Limited Partnerships, partially offset by net
cash used for operations and purchases of marketable securities.
Approximately $2,751,000 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 June 30, 1996 , 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. No such
event has occurred to date.
Cash Distributions
No cash distributions were made during the three months ended June 30, 1996.
Results of Operations
The Partnership's results of operations for the three months ended June 30, 1996
resulted in a net loss of $1,108,316 as compared to a net loss of $1,131,907 for
the same period in 1995. These results reflect the Partnership's stabilized
operations during these comparable periods.
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.
All but one of the Local Limited Partnerships are operating satisfactorily.
As previously reported, Historic New Center, a property located in Detroit,
Michigan, has been operating at a deficit as occupancy has been affected by the
downturn in the local economy. Even though the Local General Partner has taken
action to improve the property's operations, the property is still operating at
a deficit, however, the collection of delinquent rental payments has improved.
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, 1996.
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 13, 1996 BOSTON FINANCIAL QUALIFIED HOUSING
TAX CREDITS L.P. V
By: Arch Street V, Inc.,
its Managing General Partner
/s/Georgia Murray
Georgia Murray
A Managing Director, Treasurer
and Chief Financial Officer