Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - BF Garden Tax Credit Fund V L.P. | Financial_Report.xls |
| EX-31 - BCTC V CERTIFICATION 302 - BF Garden Tax Credit Fund V L.P. | b51213cert302jpm.htm |
| EX-31 - BCTC V CERTIFICATION 302 - BF Garden Tax Credit Fund V L.P. | b51213cert302mnt.htm |
| EX-32 - BCTC V CERTIFICATION 906 - BF Garden Tax Credit Fund V L.P. | b51213cert906jpm.htm |
| EX-32 - BCTC V CERTIFICATION 906 - BF Garden Tax Credit Fund V L.P. | b51213cert906mnt.htm |
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, 2013
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 333-109898
BOSTON CAPITAL TAX CREDIT FUND V L.P.
(Exact name of registrant as specified in its charter)
|
Delaware |
14-1897569 |
|
(State or other jurisdiction |
(I.R.S. Employer |
|
of incorporation or organization) |
Identification No.) |
One Boston Place, Suite 2100, Boston, Massachusetts 02108
(617) 624-8900
(Registrant's telephone number, including area code)
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 ý |
No |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
Yes ý |
No |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act (check one):
|
Large accelerated filer |
Accelerated filer |
|
Non-accelerated filer |
Smaller reporting company ý |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
Yes |
No ý |
BOSTON CAPITAL TAX CREDIT FUND V L.P.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2013
TABLE OF CONTENTS
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PART I - FINANCIAL INFORMATION |
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Pages |
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Item 1. Condensed Financial Statements |
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Condensed Balance Sheets |
3-6 |
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Condensed Statements of Operations |
7-14 |
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Condensed Statements of Changes in Partners' Capital (Deficit) |
15-16 |
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Condensed Statements of Cash Flows |
17-20 |
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Notes to Condensed Financial Statements |
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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Item 4. Controls and Procedures |
38 |
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PART II - OTHER INFORMATION |
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Item 1. Legal Proceedings |
39 |
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Item 1A. Risk Factors |
39 |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 3. Defaults Upon Senior Securities |
39 |
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Item 4. Mine Safety Disclosures |
39 |
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Item 5. Other Information |
39 |
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Item 6. Exhibits |
39 |
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Signatures |
40 |
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Boston Capital Tax Credit Fund V L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
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December 31, |
March 31, |
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ASSETS |
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INVESTMENTS IN OPERATING PARTNERSHIPS |
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OTHER ASSETS |
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Cash and cash equivalents |
767,104 |
1,060,658 |
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Acquisition costs, net |
2,231,445 |
2,746,392 |
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Other assets |
106,411 |
106,411 |
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$29,650,005 |
$31,521,187 |
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LIABILITIES |
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Accounts payable and accrued expenses |
$ 843 |
$ 843 |
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Accounts payable affiliates |
4,486,496 |
3,833,125 |
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Capital contributions payable |
101 |
101 |
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4,487,440 |
3,834,069 |
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PARTNERS' CAPITAL (DEFICIT) |
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Assignees |
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Units of limited partnership |
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General Partner |
(198,297) |
(191,985) |
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25,162,565 |
27,687,118 |
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$29,650,005 |
$31,521,187 |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
Series 47
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December 31, |
March 31, |
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ASSETS |
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INVESTMENTS IN OPERATING PARTNERSHIPS |
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OTHER ASSETS |
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Cash and cash equivalents |
61,580 |
116,970 |
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Acquisition costs, net |
1,084,379 |
1,334,621 |
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Other assets |
- |
- |
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|
$ 7,351,404 |
$ 7,747,597 |
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LIABILITIES |
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Accounts payable and accrued expenses |
$ 385 |
$ 385 |
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Accounts payable affiliates |
2,134,691 |
1,843,433 |
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Capital contributions payable |
- |
- |
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2,135,076 |
1,843,818 |
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PARTNERS' CAPITAL (DEFICIT) |
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Assignees |
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Units of limited partnership |
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General Partner |
(63,668) |
(61,949) |
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5,216,328 |
5,903,779 |
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$ 7,351,404 |
$ 7,747,597 |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
Series 48
|
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December 31, |
March 31, |
|
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ASSETS |
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INVESTMENTS IN OPERATING PARTNERSHIPS |
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OTHER ASSETS |
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Cash and cash equivalents |
167,796 |
194,790 |
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Acquisition costs, net |
451,602 |
555,816 |
|
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Other assets |
- |
- |
|
|
$ 5,410,995 |
$ 5,584,225 |
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LIABILITIES |
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Accounts payable and accrued expenses |
$ 115 |
$ 115 |
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Accounts payable affiliates |
1,247,445 |
1,068,660 |
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Capital contributions payable |
- |
- |
|
|
1,247,560 |
1,068,775 |
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PARTNERS' CAPITAL (DEFICIT) |
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Assignees |
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Units of limited partnership |
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General Partner |
(40,353) |
(39,473) |
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4,163,435 |
4,515,450 |
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|
$ 5,410,995 |
$ 5,584,225 |
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The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
Series 49
|
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December 31, |
March 31, |
|
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ASSETS |
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INVESTMENTS IN OPERATING PARTNERSHIPS |
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OTHER ASSETS |
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Cash and cash equivalents |
537,728 |
748,898 |
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Acquisition costs, net |
695,464 |
855,955 |
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Other assets |
106,411 |
106,411 |
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$16,887,606 |
$18,189,365 |
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LIABILITIES |
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Accounts payable and accrued expenses |
$ 343 |
$ 343 |
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Accounts payable affiliates |
1,104,360 |
921,032 |
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Capital contributions payable |
101 |
101 |
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1,104,804 |
921,476 |
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PARTNERS' CAPITAL (DEFICIT) |
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Assignees |
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Units of limited partnership |
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General Partner |
(94,276) |
(90,563) |
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15,782,802 |
17,267,889 |
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$16,887,606 |
$18,189,365 |
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The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
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Income |
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Interest income |
$ 506 |
$ 602 |
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|
506 |
602 |
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Share of loss from Operating |
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Expenses |
|
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Professional fees |
14,361 |
62,548 |
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Fund management fee, net (Note C) |
260,072 |
235,287 |
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Amortization |
171,649 |
184,718 |
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General and administrative expenses |
27,440 |
27,500 |
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|
473,522 |
510,053 |
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NET LOSS |
$ (823,898) |
$ (832,785) |
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Net loss allocated to |
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Net loss allocated to |
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Net loss per BAC |
$ (.07) |
$ (.07) |
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The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 47
|
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Income |
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Interest income |
$ 18 |
$ 36 |
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18 |
36 |
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Share of loss from Operating |
|
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|
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|
|
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Expenses |
|
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Professional fees |
10,477 |
61,468 |
|
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Fund management fee, net (Note C) |
90,586 |
82,121 |
|
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Amortization |
83,414 |
83,414 |
|
|
General and administrative expenses |
7,850 |
8,497 |
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|
192,327 |
235,500 |
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NET LOSS |
$ (219,461) |
$ (244,922) |
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Net loss allocated to |
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Net loss allocated to |
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Net loss per BAC |
$ (.06) |
$ (.07) |
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The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 48
|
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Income |
|
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Interest income |
$ 43 |
$ 49 |
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|
43 |
49 |
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Share of loss from Operating |
|
|
|
|
|
|
|
|
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Expenses |
|
|
|
|
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Professional fees |
1,941 |
- |
|
|
Fund management fee, net (Note C) |
53,095 |
47,130 |
|
|
Amortization |
34,738 |
34,738 |
|
|
General and administrative expenses |
6,228 |
6,755 |
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|
96,002 |
88,623 |
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|
|
|
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|
|
NET LOSS |
$ (105,205) |
$ (128,215) |
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Net loss allocated to |
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Net loss allocated to |
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Net loss per BAC |
|
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|
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|
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|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 49
|
|
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||
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Income |
|
|
|
|
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Interest income |
$ 445 |
$ 517 |
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|
445 |
517 |
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|
Share of loss from Operating |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
1,943 |
1,080 |
|
|
Fund management fee, net (Note C) |
116,391 |
106,036 |
|
|
Amortization |
53,497 |
66,566 |
|
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General and administrative expenses |
13,362 |
12,248 |
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|
185,193 |
185,930 |
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NET LOSS |
$ (499,232) |
$ (459,648) |
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Net loss allocated to |
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Net loss allocated to |
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Net loss per BAC |
|
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The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
|
|
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||
|
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Income |
|||
|
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Interest income |
$ 1,580 |
$ 3,190 |
|
|
1,580 |
3,190 |
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|
Share of loss from Operating |
|
|
|
|
|
|
|
|
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Expenses |
|
|
|
|
|
Professional fees |
118,125 |
152,573 |
|
|
Fund management fee, net (Note C) |
787,968 |
760,993 |
|
|
Amortization |
514,947 |
554,154 |
|
General and administrative expenses |
55,322 |
59,318 |
|
|
|
1,476,362 |
1,527,038 |
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|
|
|
|
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NET LOSS |
$(2,524,553) |
$(2,615,288) |
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Net loss allocated to |
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Net loss allocated to |
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|
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|
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Net loss per BAC |
$ (.21) |
$ (.22) |
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|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 47
|
|
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||
|
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Income |
|
|
|
|
|
Interest income |
$ 66 |
$ 385 |
|
|
66 |
385 |
|
|
Share of loss from Operating |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
61,045 |
94,104 |
|
|
Fund management fee, net (Note C) |
270,916 |
269,379 |
|
|
Amortization |
250,242 |
250,242 |
|
|
General and administrative expenses |
16,955 |
18,573 |
|
|
599,158 |
632,298 |
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|
|
|
|
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|
NET LOSS |
$ (687,451) |
$ (699,139) |
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Net loss allocated to |
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Net loss allocated to |
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|
|
|
|
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|
Net loss per BAC |
$ (.20) |
$ (.20) |
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 48
|
|
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||
|
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Income |
|
|
|
|
|
Interest income |
$ 136 |
$ 442 |
|
|
136 |
442 |
|
|
Share of loss from Operating |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
22,400 |
23,224 |
|
|
Fund management fee, net (Note C) |
169,785 |
155,431 |
|
|
Amortization |
104,214 |
104,214 |
|
|
General and administrative expenses |
13,730 |
15,525 |
|
|
310,129 |
298,394 |
|
|
|
|
|
|
|
NET LOSS |
$ (352,015) |
$ (444,454) |
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Net loss allocated to |
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Net loss allocated to |
|
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|
|
|
|
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|
|
Net loss per BAC |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 49
|
|
|
||
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 1,378 |
$ 2,363 |
|
|
1,378 |
2,363 |
|
|
Share of loss from Operating |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
34,680 |
35,245 |
|
|
Fund management fee, net (Note C) |
347,267 |
336,183 |
|
|
Amortization |
160,491 |
199,698 |
|
|
General and administrative expenses |
24,637 |
25,220 |
|
|
567,075 |
596,346 |
|
|
|
|
|
|
|
NET LOSS |
$(1,485,087) |
$(1,471,695) |
|
|
|
|
|
|
|
Net loss allocated to |
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|
|
|
|
|
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|
|
Net loss allocated to |
|
|
|
|
|
|
|
|
|
Net loss per BAC |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31, 2013
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Net loss |
(2,518,241) |
(6,312) |
(2,524,553) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31, 2013
(Unaudited)
|
|
|
General |
|
|
Series 47 |
|
|
|
|
Partners' capital |
|
|
|
|
Net loss |
(685,732) |
(1,719) |
(687,451) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
General |
|
|
Series 48 |
|
|
|
|
Partners' capital |
|
|
|
|
Net loss |
(351,135) |
(880) |
(352,015) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
General |
|
|
Series 49 |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Net loss |
(1,481,374) |
(3,713) |
(1,485,087) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
|
|
2013 |
2012 |
|||||
|
Cash flows from operating activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Net loss |
$(2,524,553) |
$(2,615,288) |
||||
|
|
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
||||
|
|
Amortization |
514,947 |
554,154 |
||||
|
|
Distributions from Operating |
|
|
||||
|
|
Share of Loss from Operating |
|
|
||||
|
|
Changes in assets and liabilities |
|
|
||||
|
|
Increase in other assets |
|
|
||||
|
|
Increase (Decrease) in accounts |
|
|
||||
|
|
|
|
|
||||
|
|
Net cash used in |
|
|
||||
|
|
|
|
|||||
|
Cash flows from investing activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Capital contributions paid to |
|
|
||||
|
Net cash used in |
|
|
|||||
|
|
|
|
|||||
|
DECREASE IN CASH AND |
|
|
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, beginning |
1,060,658 |
2,051,958 |
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, ending |
$ 767,104 |
$ 1,061,590 |
|||||
|
Supplemental schedule of noncash |
|||||||
|
investing and financing activities: |
|||||||
|
The Fund applied notes receivable and advances to its capital contribution obligation to Operating Partnerships. |
|
|
|||||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 47
|
|
2013 |
2012 |
|||||
|
Cash flows from operating activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Net loss |
$ (687,451) |
$ (699,139) |
||||
|
Adjustments to reconcile net loss to net cash used in operating activities |
|||||||
|
|
Amortization |
250,242 |
250,242 |
||||
|
|
Distributions from Operating |
|
|
||||
|
|
Share of Loss from Operating |
|
|
||||
|
|
Changes in assets and liabilities |
|
|
||||
|
|
Increase in other assets |
|
|
||||
|
|
Increase (Decrease) in accounts |
|
|
||||
|
|
|
|
|
||||
|
|
Net cash used in |
|
|
||||
|
|
|
|
|||||
|
Cash flows from investing activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Capital contributions paid to |
|
|
||||
|
|
|
|
|
||||
|
|
Net cash used in |
|
|
||||
|
|
|
|
|||||
|
DECREASE IN CASH AND |
|
|
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, beginning |
116,970 |
366,067 |
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, ending |
$ 61,580 |
$ 123,422 |
|||||
|
|
|
|
|||||
|
Supplemental schedule of noncash |
|
|
|||||
|
investing and financing activities: |
|
|
|||||
|
|
|
|
|||||
|
The Fund applied notes receivable and advances to its capital contribution obligation to Operating Partnerships. |
|
|
|||||
|
|
|
|
|||||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 48
|
|
2013 |
2012 |
|||||
|
Cash flows from operating activities: |
|
|
|||||
|
Net loss |
$ (352,015) |
$ (444,454) |
|||||
|
|
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
||||
|
|
Amortization |
104,214 |
104,214 |
||||
|
|
Distributions from Operating |
|
|
||||
|
|
Share of Loss from Operating |
|
|
||||
|
|
Changes in assets and liabilities |
|
|
||||
|
|
Increase in other assets |
|
|
||||
|
|
Increase (Decrease) in accounts |
|
|
||||
|
|
|
|
|
||||
|
|
Net cash used in |
|
|
||||
|
|
|
|
|||||
|
Cash flows from investing activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Capital contributions paid to |
|
|
||||
|
|
|
|
|
||||
|
Net cash used in |
|
|
|||||
|
|
|
|
|||||
|
DECREASE IN CASH AND |
|
|
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, beginning |
194,790 |
348,763 |
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, ending |
$ 167,796 |
$ 192,358 |
|||||
|
|
|
|
|||||
|
Supplemental schedule of noncash |
|
|
|||||
|
investing and financing activities: |
|
|
|||||
|
|
|
|
|||||
|
The Fund applied notes receivable and advances to its capital contribution obligation to Operating Partnerships. |
|
|
|||||
|
|
|
|
|||||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 49
|
|
2013 |
2012 |
|||||
|
Cash flows from operating activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Net loss |
$(1,485,087) |
$(1,471,695) |
||||
|
|
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
||||
|
|
Amortization |
160,491 |
199,698 |
||||
|
|
Distributions from Operating |
|
|
||||
|
|
Share of Loss from Operating |
|
|
||||
|
|
Changes in assets and liabilities |
|
|
||||
|
Increase in other assets |
|
|
|||||
|
|
Increase (Decrease) in accounts |
|
|
||||
|
|
|
|
|
||||
|
|
Net cash used in |
|
|
||||
|
|
|
|
|||||
|
Cash flows from investing activities: |
|
|
|||||
|
|
|
|
|||||
|
|
Capital contributions paid to |
|
|
||||
|
|
|
|
|
||||
|
|
Net cash used in |
|
|
||||
|
|
|
|
|||||
|
DECREASE IN CASH AND |
|
|
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, beginning |
748,898 |
1,337,128 |
|||||
|
|
|
|
|||||
|
Cash and cash equivalents, ending |
$ 537,728 |
$ 745,810 |
|||||
|
|
|
|
|||||
|
Supplemental schedule of noncash |
|
|
|||||
|
investing and financing activities: |
|
|
|||||
|
|
|
|
|||||
|
The Fund applied notes receivable and advances to its capital contribution obligation to Operating Partnerships. |
|
|
|||||
|
|
|
|
|||||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund V L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2013
(Unaudited)
NOTE A - ORGANIZATION
Boston Capital Tax Credit Fund V L.P. (the "Fund") was organized under the laws of the State of Delaware as of October 15, 2003, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). The general partner of the Fund is Boston Capital Associates V LLC, a Delaware limited liability company. The members of the general partner are Boston Capital Companion Limited Partnership, a Massachusetts limited partnership, and John P. Manning, who is the managing member. Additional managers of the general partner are Jeffrey H. Goldstein and Marc N. Teal. The general partner of Boston Capital Companion Limited Partnership is Boston Capital Partners II Corporation whose sole shareholder is John P. Manning. John P. Manning is the principal of Boston Capital Partners, Inc.
The assignor limited partner is BCTC V Assignor Corp., a Delaware corporation which is wholly-owned by John P. Manning. The assignor limited partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business. Units of beneficial interest in the limited partnership interest of the assignor limited partner will be assigned by the assignor limited partner by means of beneficial assignee certificates ("BACs") to investors and investors will be entitled to all the rights and economic benefits of a limited partner of the Fund, including rights to a percentage of the income, gains, losses, deductions, credits and distributions of the Fund.
A Registration Statement on Form S-11 and the related prospectus, (the "Prospectus") were filed with the Securities and Exchange Commission and became effective January 2, 2004 in connection with a public offering ("Offering") in one or more series of a minimum of 250,000 BACs and a maximum of 7,000,000 BACs at $10 per BAC. On August 10, 2004, an amendment to Form S-11, which registered an additional 8,500,000 BACs for sale to the public in one or more series, became effective. As of December 31, 2013, subscriptions had been received and accepted by the Fund for 11,777,706 BACs representing capital contributions of $117,777,060.
Below is a summary of the BACs sold and total equity raised, by series, as of December 31, 2013:
|
Series |
Closing Date |
BACs Sold |
Equity Raised |
|
Series 47 |
April 30, 2004 |
3,478,334 |
$34,783,340 |
|
Series 48 |
August 12, 2004 |
2,299,372 |
$22,993,720 |
|
Series 49 |
April 29, 2005 |
6,000,000 |
$60,000,000 |
The Fund concluded its public offering of BACs in the Fund on April 29, 2005.
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements herein as of December 31, 2013 and for the nine months then ended have been prepared by the Fund, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.
The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K for the fiscal year ended March 31, 2013.
Amortization
Acquisition costs were originally amortized on the straight-line method over 27.5 years. An impairment loss has been recognized for the years ended March 31, 2013 and 2012 of $209,097 and $153,715, respectively, for Series 49. As of March 31, 2013, the lives of the remaining acquisition costs were reassessed and determined to be 4 years for all Series.
Accumulated amortization of acquisition costs by Series for the quarters ended December 31, 2013 and 2012 are as follows:
|
2013 |
2012 |
|
|
$1,829,852 |
$1,496,196 |
|
|
Series 48 |
382,118 |
243,166 |
|
Series 49 |
160,491 |
199,698 |
|
$2,372,461 |
$1,939,060 |
The annual amortization for deferred acquisition costs for the years ending December 31, 2014, 2015, 2016 and 2017 is estimated to be $686,597, $686,597, $686,597, and $171,654, respectively.
Boston Capital Tax Credit Fund V L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2013
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS
The Fund has entered into several transactions with various affiliates of the general partner, including Boston Capital Holdings Limited Partnership, Boston Capital Securities, Inc., and Boston Capital Asset Management L.P. as follows:
An annual fund management fee of .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships has been accrued to Boston Capital Asset Management L.P. Since reporting fees collected by the various series were added to reserves and not paid to Boston Capital Asset Management L.P., the amounts accrued are not net of reporting fees received. The fund management fee accrued for the quarters ended December 31, 2013 and 2012 are as follows:
|
|
2013 |
2012 |
|
Series 47 |
$ 97,086 |
$ 97,086 |
|
Series 48 |
59,595 |
59,595 |
|
Series 49 |
127,776 |
127,776 |
|
Total |
$284,457 |
$284,457 |
The fund management fees paid for the quarters ended December 31, 2013 and 2012 are as follows:
|
|
2013 |
2012 |
|
Series 47 |
$ - |
$ - |
|
Series 48 |
- |
- |
|
Series 49 |
- |
- |
|
Total |
$ - |
$ - |
The fund management fees paid for the nine months ended December 31, 2013 and 2012 are as follows:
|
|
2013 |
2012 |
|
Series 47 |
$ - |
$ 75,000 |
|
Series 48 |
- |
150,000 |
|
Series 49 |
200,000 |
550,000 |
|
Total |
$200,000 |
$775,000 |
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At December 31, 2013 and 2012, the Fund has limited partnership interests in 50 Operating Partnerships, which own or are constructing apartment complexes.
The breakdown of Operating Partnerships within the Fund at December 31, 2013 and 2012 is as follows:
|
|
2013 |
2012 |
|
Series 47 |
15 |
15 |
|
Series 48 |
11 |
11 |
|
Series 49 |
24 |
24 |
|
Total |
50 |
50 |
The Fund's fiscal year ends March 31st for each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the financial results available for the Operating Partnerships are for the nine months ended September 30, 2013.
Boston Capital Tax Credit Fund V L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2013
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Total
|
|
2013 |
2012 |
|
|
Revenues |
|
|
|
|
|
Rental |
$ 16,670,966 |
$ 16,484,462 |
|
|
Interest and other |
599,963 |
589,570 |
|
|
17,270,929 |
17,074,032 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Interest |
2,593,131 |
2,744,263 |
|
|
Depreciation and amortization |
5,725,282 |
5,663,875 |
|
|
Operating expenses |
11,097,879 |
10,637,104 |
|
|
19,416,292 |
19,045,242 |
|
|
|
|
|
|
|
NET LOSS |
$(2,145,363) |
$(1,971,210) |
|
|
|
|
|
|
|
Net loss allocated to Boston Capital Tax Credit Fund V L.P.* |
|
|
|
|
|
|
|
|
|
Net loss allocated to other Partners |
$ (21,453) |
$ (19,711) |
|
* Amounts include $1,074,139 and $860,059 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund V L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2013
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 47
|
|
2013 |
2012 |
|
|
Revenues |
|
|
|
|
|
Rental |
$ 6,456,508 |
$ 6,374,113 |
|
|
Interest and other |
198,951 |
179,991 |
|
|
6,655,459 |
6,554,104 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Interest |
949,392 |
1,016,227 |
|
|
Depreciation and amortization |
1,867,099 |
1,824,932 |
|
|
Operating expenses |
4,332,492 |
4,127,986 |
|
|
7,148,983 |
6,969,145 |
|
|
|
|
|
|
|
NET LOSS |
$ (493,524) |
$ (415,041) |
|
|
|
|
|
|
|
Net loss allocated to Boston Capital Tax Credit Fund V L.P.* |
|
|
|
|
|
|
|
|
|
Net loss allocated to other Partners |
$ (4,935) |
$ (4,150) |
|
* Amounts include $400,230 and $343,665 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund V L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 48
|
|
2013 |
2012 |
|
|
Revenues |
|
|
|
|
|
Rental |
$ 3,625,930 |
$ 3,549,267 |
|
|
Interest and other |
123,745 |
107,136 |
|
|
3,749,675 |
3,656,403 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Interest |
459,386 |
508,824 |
|
|
Depreciation and amortization |
1,183,137 |
1,180,910 |
|
|
Operating expenses |
2,309,588 |
2,262,104 |
|
|
3,952,111 |
3,951,838 |
|
|
|
|
|
|
|
NET LOSS |
$ (202,436) |
$ (295,435) |
|
|
|
|
|
|
|
Net loss allocated to Boston Capital Tax Credit Fund V L.P.* |
|
|
|
|
|
|
|
|
|
Net loss allocated to other Partners |
$ (2,024) |
$ (2,954) |
|
* Amounts include $158,390 and $145,979 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund V L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 49
|
|
2013 |
2012 |
|
|
Revenues |
|
|
|
|
|
Rental |
$ 6,588,528 |
$ 6,561,082 |
|
|
Interest and other |
277,267 |
302,443 |
|
|
6,865,795 |
6,863,525 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Interest |
1,184,353 |
1,219,212 |
|
|
Depreciation and amortization |
2,675,046 |
2,658,033 |
|
|
Operating expenses |
4,455,799 |
4,247,014 |
|
|
8,315,198 |
8,124,259 |
|
|
|
|
|
|
|
NET LOSS |
$(1,449,403) |
$(1,260,734) |
|
|
|
|
|
|
|
Net loss allocated to Boston Capital Tax Credit Fund V L.P.* |
|
|
|
|
|
|
|
|
|
Net loss allocated to other Partners |
$ (14,494) |
$ (12,607) |
|
* Amounts include $515,519 and $370,415 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.
The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
NOTE E - TAXABLE LOSS
The Fund's taxable loss for the calendar year ended December 31, 2013 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods.
NOTE F - INCOME TAXES
The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Fund's federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions, which must be considered for disclosure. Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2010 remain open.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.
Liquidity
The Fund's primary source of funds is the proceeds of the Offering. Other sources of liquidity include (i) interest earned on capital contributions held pending investment and on working capital and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.
The Fund is currently accruing the fund management fee. Fund management fees accrued during the quarter ended December 31, 2013 were $284,457 and total fund management fees accrued as of December 31, 2013 were $4,486,496. During the quarter ended December 31, 2013, none of the accrued fund management fees were paid. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Fund receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund. The Fund is currently unaware of any trends
which would create insufficient liquidity to meet future third party obligations of the Fund.
Capital Resources
The Fund offered BACs in the Offering declared effective by the Securities and Exchange Commission on January 2, 2004. The Fund received $34,783,340, $22,993,720 and $60,000,000 representing 3,478,334, 2,299,372 and 6,000,000 BACs from investors admitted as BAC Holders in Series 47, Series 48 and Series 49, respectively, as of December 31, 2013.
Series 47
The Fund commenced offering BACs in Series 47 on January 2, 2004. Offers and sales of BACs in Series 47 were completed on April 30, 2004. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 15 Operating Partnerships in the amount of $26,409,598.
During the quarter ended December 31, 2013, Series 47 did not record any releases of capital contributions. Series 47 has released all payments of its capital contributions to the Operating Partnerships.
Series 48
The Fund commenced offering BACs in Series 48 on May 11, 2004. Offers and sales of BACs in Series 48 were completed on August 12, 2004. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $17,452,406.
During the quarter ended December 31, 2013, Series 48 did not record any releases of capital contributions. Series 48 has released all payments of its capital contributions to the Operating Partnerships.
Series 49
The Fund commenced offering BACs in Series 49 on August 24, 2004. Offers and sales of BACs in Series 49 were completed on April 29, 2005. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $45,728,155.
During the quarter ended December 31, 2013, Series 49 did not record any releases of capital contributions. Series 49 has outstanding contributions payable to 1 Operating Partnership in the amount of $101, as of December 31, 2013. The remaining contributions will be released when the Operating Partnership have achieved the conditions set forth in their partnership agreement.
Results of Operations
As of December 31, 2013, the Fund held limited partnership interests in 50 Operating Partnerships. In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit. Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner of the Fund believes that there is adequate casualty insurance on the properties.
The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnership in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred and the reporting fees paid by the Operating Partnerships for the three and nine months ended December 31, 2013 are as follows:
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3 Months |
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3 Months |
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Series 47 |
$ 97,086 |
$ 6,500 |
$ 90,586 |
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Series 48 |
59,595 |
6,500 |
53,095 |
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Series 49 |
127,776 |
11,385 |
116,391 |
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$284,457 |
$24,385 |
$260,072 |
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9 Months |
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9 Months |
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Series 47 |
$291,258 |
$20,342 |
$270,916 |
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Series 48 |
178,785 |
9,000 |
169,785 |
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Series 49 |
383,328 |
36,061 |
347,267 |
|
|
$853,371 |
$65,403 |
$787,968 |
The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest. The Fund's investments in Operating Partnerships have been and will be made principally with a view towards realization of federal housing tax credits for allocation to its partners and BAC holders.
Series 47
As of December 31, 2013 and 2012, the average Qualified Occupancy was 100%. The series had a total of 15 properties at December 31, 2013, all of which were at 100% Qualified Occupancy.
For the nine month periods ended December 31, 2013 and 2012, Series 47 reflects a net loss from Operating Partnerships of $(493,524) and $(415,041), respectively, which includes depreciation and amortization of $1,867,099 and $1,824,932, respectively. This is an interim period estimate; it is not indicative of the final year-end results.
CP Continental L.P. (Time Square on the Hill) is a 200-unit family development located in Fort Worth, TX. Despite occupancy that fluctuates around 90%, the property consistently operates below breakeven due to low rental rates and high operating expenses. Management has successfully reduced bad debt over the past several years and the economic occupancy through the fourth quarter of 2013 is 90%. The property suffers from poor visibility and has almost no drive-by traffic, requiring a large amount of money to be spent on advertising. The property also has fewer amenities than the competition, which includes properties that have pools, washer/dryer connections and covered parking at the same rent levels as CP Continental. The site staff has increased its visits to nearby retailers and businesses to place fliers in an effort to increase traffic to the property. Occupancy was 94% as of December 31, 2013. Management continues to review the budget to determine areas to control expenses and improve cash flow. The property's mortgage, real estate taxes, and insurance are all current. After rental achievement, the operating general partner is obligated to promptly advance funds to eliminate any operating deficit. The operating general partner is not obligated to have subordinate loans outstanding at any time in excess of $542,490. The management company, an affiliate of the operating general partner, is deferring all fees until operations improve. The low income tax credit compliance period expires on December 31, 2019.
McEver Vineyards, L.P. (McEver Vineyards Apartments) is a 220-unit family property in Gainesville, GA. Occupancy averaged 95%, 96% and 97% in 2010, 2011 and 2012, respectively. Average occupancy through December 2013 was 94%. The property historically experiences a slight decline in occupancy during the fourth quarter due to some of the Hispanic tenants returning back to Mexico during the slow winter months. While the property operated above breakeven during 2013, the lower revenues collected in the final quarter of the year, as well as the high operating expenses, elevated extraordinary expenses incurred addressing deferred maintenance, and insufficient rental rates will require close monitoring in the early part of 2014. Debt service remains burdensome due to insufficient top line revenue growth the last several years. According to management, higher water and sewer rates have caused utility costs to increase.
The operating general partner has attempted to restructure the debt in order to improve cash flow; to date this has been unsuccessful. While the investment general partner intends to continue to work with the operating general partner and lender to improve operations, as of December 31, 2013 the lender continues to show no interest in negotiating and documenting a loan modification. The mortgage, insurance and real estate taxes are current through the fourth quarter of 2013. If the property is foreclosed in 2014, the estimated credit loss of $299,479 and tax credit recapture cost and interest penalty of $909,376 are equivalent to a credit loss of $86 per 1,000 BACs and a recapture and interest penalty cost of $261 per 1,000 BACs.
Pecan Acres, L.P. (La Maison Apartments) is a 78-unit family property located in Lake Charles, LA. The property operated well above breakeven from 2010 through 2012 and maintained high occupancy. Occupancy continues to be high and was 99% as of December 31, 2013. In May 2012, the investment general partner learned that one of the two operating general partners had been charging its own overhead and other unrelated expenses to the property. The investment general partner sent a demand notice to this operating general partner to return all misappropriated funds to the property accounts at that time. The investment general partner has engaged counsel who worked with this operating general partner's attorney to resolve this matter. The investment general partner has reached an agreement with the operating general partner to exit the Operating Partnership. This operating general partner will withdraw from the Operating Partnership and a settlement agreement dealing with this matter is expected to be executed in the first quarter of 2014. All real estate tax, insurance and mortgage payments are current. The low income housing tax credit compliance period expires on December 31, 2019.
Hillsboro Fountainhead, L.P. (Pecan Creek Apartments) is a 48-unit family property in Hillsboro, Texas. The property is located in an economically depressed rural area approximately 35 miles north of Waco, Texas. Despite a 22% decrease in operating expenses from 2012, the property continues to operate below breakeven through the fourth quarter of 2013, primarily from low occupancy. According to management, the tenant base is primarily composed of employees of a large outlet mall located two blocks from the property. In an effort to increase applicant traffic and occupancy, management has increased community outreach efforts to include local churches, social agencies, and the housing authority. In addition, print advertisements are circulated in the local newspapers monthly. Through the fourth quarter of 2013, average annual occupancy improved to 86% from a 2012 low of 63%, and the property operated below breakeven in 2013. The investment general partner intends to continue to work with the operating general partner to improve resident selection, reduce administrative and maintenance expenses, and increase occupancy. The operating general partner will fund deficits as necessary. All real estate taxes, insurance, and mortgage payments are current. The low income housing tax credit compliance period expires on December 31, 2019.
Series 48
As of December 31, 2013 and 2012, the average Qualified Occupancy was 100%. The series had a total of 11 properties at December 31, 2013, all of which were at 100% Qualified Occupancy.
For the nine month periods ended December 31, 2013 and 2012, Series 48 reflects a net loss from Operating Partnerships of $(202,436) and $(295,435), respectively, which includes depreciation and amortization of $1,183,137 and $1,180,910, respectively. This is an interim period estimate; it is not indicative of the final year-end results.
McEver Vineyards, L.P. (McEver Vineyards Apartments) is a 220-unit family property in Gainesville, GA. Occupancy averaged 95%, 96% and 97% in 2010, 2011 and 2012, respectively. Average occupancy through December 2013 was 94%. The property historically experiences a slight decline in occupancy during the fourth quarter due to some of the Hispanic tenants returning back to Mexico during the slow winter months. While the property operated above breakeven during 2013, the lower revenues collected in the final quarter of the year, as well as the high operating expenses, elevated extraordinary expenses incurred addressing deferred maintenance, and insufficient rental rates will require close monitoring in the early part of 2014. Debt service remains burdensome due to insufficient top line revenue growth the last several years. According to management, higher water and sewer rates have caused utility costs to increase.
The operating general partner has attempted to restructure the debt in order to improve cash flow; to date this has been unsuccessful. While the investment general partner intends to continue to work with the operating general partner and lender to improve operations, as of December 31, 2013 the lender continues to show no interest in negotiating and documenting a loan modification. The mortgage, insurance and real estate taxes are current through the fourth quarter of 2013. If the property is foreclosed in 2014, the estimated credit loss of $299,479 and tax credit recapture cost and interest penalty of $909,376 are equivalent to a credit loss of $130 per 1,000 BACs and a recapture and interest penalty cost of $395 per 1,000 BACs.
Wyndam-Emporia (Wyndam Place Senior Residences) is a 42-unit senior property located in Emporia, KS. During the third quarter of 2013 the property had declining occupancy that led to below breakeven operations. Occupancy continued to struggle during the fourth quarter and ended December 2013 at 79% occupied with nine vacant units. Wyndam Place continued to operate below breakeven in 2013. The predominant factor impacting the occupancy is that eight tenants who have lived at the property since its opening have passed away in the last six months. Several other original tenants have been forced to move into nursing homes due to their advanced age. An ongoing matter that will require consistent monitoring is the opening of a new senior property a half-mile away. Wyndam Place Senior Residence has lost four potential tenants to this new senior property since it opened in March 2013. The issue is not that tenants are leaving for the new property but potential tenants are visiting it prior to assessing Wyndam Place. The new senior property is located in a more desirable location, directly across the street from the senior center and the hospital, offering more amenities and charging lower rents for larger units.
Management intensified their marketing and advertising efforts during the fourth quarter of 2013 in an attempt to capitalize on the 100% occupancy at the new senior development before the inception of winter weather. Management participated in the Emporia Senior Fair in October where 500-600 local seniors attended. Management subsequently conducted an open house on October 26, 2013, for prospective tenants to tour the property and meet with current residents. Management ran a newspaper insert prior to the open house that was distributed to roughly 12,000 subscribers. Management continues to place monthly ads in the newspaper offering three months free rent. This special has been in place since November but has not drawn any new tenants. Management also is offering a resident referral bonus of $250. The referral program will continue to run until the property is fully leased. Management is optimistic that they can fill the vacant units if they can get prospective tenants to visit the property. All real estate taxes, mortgage and insurance payments are current through December 31, 2013. The operating general partner remains under their operating guarantee through the end of 2014. On December 31, 2020, the 15-year low income housing tax credit compliance period will expire with respect to Wyndam Place Senior Residences.
Series 49
As of December 31, 2013 and 2012, the average Qualified Occupancy was 100%. The series had a total of 24 properties at December 31, 2013, all of which were at 100% Qualified Occupancy.
For the nine month periods ended December 31, 2013 and 2012, Series 49 reflects a net loss from Operating Partnerships of $(1,449,403) and $(1,260,734), respectively, which includes depreciation and amortization of $2,675,046 and $2,658,033, respectively. This is an interim period estimate; it is not indicative of the final year-end results.
Rosewood Senior Apartments (Rosewood Place, LLC) is a 144-unit apartment development for seniors located in Lenexa, Kansas. The property reached initial full qualified occupancy in November 2007. The average occupancy in 2010, 2011 and 2012 was 95%, 99% and 98%, respectively. Conversely, in 2013 Rosewood Place has experienced a decline in average occupancy to 93%. A perceived reduction in federal benefits for seniors, a rent increase at Rosewood Place, strategic tenant relocations by management due to the declining health of certain tenants and their inability to live independently were principal reasons for the increasing vacancy during 2013. In January 2013 asking rents for one and two bedroom units at Rosewood Place were increased by $15 and $25, respectively, which in conjunction with the minimal increase in social security benefits and the rise in Medicare Part B premiums left the target resident population income after rent and Medicare Part B premiums lower than in 2012. This prompted some residents to move out. Even though Rosewood Place is for seniors 55 years of age and older, the average age of residents is closer to 77. As a result, some residents are less able to live independently and require more intensive care, or additional services, than can be provided at Rosewood Place. By the start of the third quarter of 2013, management had implemented a more targeted approach to tenant retention by seeking the involvement of current tenants through suggestions and referrals. A referral program for existing tenants was implemented in which $100 is paid to any existing Rosewood tenant whose referral leads to a lease with a new tenant. Management views the recent decline in occupancy as an opportunity to sign younger and healthier tenants which should reduce the risk of losing occupancy for health related reasons for the next several years. The average age of new tenants in 2013 has been 60, well below the property's current average tenant age of 77. In addition, management has completed several capital improvement projects (new carpeting in the lobby and elevators, upgraded aviary, sealing the parking lot, and adding more flowers to the landscaping) earning positive feedback from tenants, which is an encouraging sign for tenant retention efforts. The goal of the operating general partner is to re-establish occupancy above 95% in early 2014.
Operations at Rosewood Place were nominally above breakeven during 2010, 2011, and 2012, but fell just below breakeven in 2013. This was due to the previously described decline in occupancy and an increase in administrative costs and repair and maintenance expenses. The Operating Partnership was able to stay current on its first mortgage debt during the time period 2007 - 2010 because no real estate tax payments were made for tax years 2006 through 2010. All outstanding taxes were paid including interest and penalties on January 7, 2011. At December 31, 2010, an estimated $605,700 in real estate taxes and interest penalties were owed by Rosewood Place, LLC, including the first and second half 2010 real estate taxes. As previously noted, the full tax amount owed was paid on January 7, 2011 from capital raised as part of the loan amendment described below that closed into escrow on December 21, 2010 and was released from escrow on January 6, 2011 when all conditions for closing the amendment were satisfied.
In July 2009, a contractor filed a motion for summary judgment, requesting foreclosure of its mechanic's lien. This motion was approved on February 17, 2010, and an advertised foreclosure sale on April 14, 2010 was scheduled. On April 12, 2010, the contractor agreed to postpone the sale and to continue to negotiate a payment plan with the operating general partner. In June 2010, the operating general partner and the contractor reached an oral agreement on a five-year payment plan to settle the mechanic's lien claim for $250,000. The mechanic's lien judgment was released on December 29, 2010 as part of the settlement agreement executed in December 2010 by the contractor and the operating general partner.
In June 2010, the operating general partner refocused its efforts on negotiating a loan modification with the existing mortgage lender. By late July 2010, the operating general partner, the investment general partner and the lender had agreed in principle on a restructuring plan. In August 2010 the contractor also agreed, in concept, to the proposed loan modification. The modification documents were executed and the transaction closed into escrow on December 21, 2010. They were released from escrow on January 6, 2011 when all closing conditions were satisfied. The operating general partner contributed $148,000 towards the loan modification and a new investor contributed $600,000. The new investor was assigned a 45% interest in Rosewood Place, LLC in exchange for its $600,000 capital contribution. The new investor entity is related to the investment general partner. As a result of this transaction, approximately $249,000 per year of federal tax credits, equivalent to approximately $42 per 1,000 BACs, will be allocated to the new investor. It is anticipated that the new investor will put its 45% interest in Rosewood Place, LLC back to the investment limited partner in early 2015. On a cumulative basis, the investment general partner originally forecasted that the tax credits allocated to the original investors in Rosewood Place, LLC would be reduced by approximately $748,000 (equivalent to $125 per 1,000 BACs). However, it is now projected that the amount of tax credit reduction for the original investors will be approximately $997,000 (equivalent to $167 per 1,000 BACs). If the new investor had not contributed to the loan modification and the foreclosure had occurred in 2010, the investment general partner estimates that there would have been recapture and interest penalties relating to credits previously claimed of $613,304, as well as an estimated loss of credits for the tax years 2010-2017 of $3,854,295. This represents recapture of $102 and credit loss totaling $642, respectively, per 1,000 BACs.
This property is part of a portfolio that includes several properties that experienced operational difficulties in 2008 and 2009. During those years the operating general partner's financial position also deteriorated, preventing his ability to recapitalize any of these properties. Although the operating general partner's financial position did not improve during 2010, 2011, and 2012, operations throughout his portfolio did stabilize. During 2010, the investment general partner actively worked with the operating general partner and lender to restructure the mortgage debt as discussed above. Since the loan amendment for Rosewood Place, LLC closed in January 2011, real estate taxes, insurance escrows and bond payments have been paid currently and remained current as of December 31, 2013. In addition, payments to the contractor under the aforementioned five-year payment plan were current through August 31, 2013; however, the September, October and November 2013 payments to the contractor were deferred (as permitted under the terms of the restructuring agreement) as a result of the previously discussed decline in property operations. A payment of $4,167 was made in December 2013 against the outstanding balance owed to the contractor of $116,656.
Rural Housing Partners of Kewaunee L.P. (Sunset Manor) is a 38-unit property located in Kewaunee, WI. Occupancy has historically been an issue at this property, mainly due to evictions for nonpayment of rent and residents vacating because of job losses. Current marketing includes advertising on Rent.com and Craigslist, advertising in the Local Free Shopper which covers three cities/towns, posting fliers in the local community, and frequent contacts with local housing agencies, as well as For Rent signs located on the property. In 2013, occupancy remained a concern. However, as a result of management's efforts the property was 95% occupied as of December 31, 2013, and the property operated slightly above breakeven in the fourth quarter of 2013. All real estate taxes, mortgage, and insurance payments are current. On December 31, 2019, the 15-year low income housing tax credit compliance period will expire with respect to Sunset Manor Apartments.
Rural Housing Partners of Mauston L.P. (Brookview I & II Apartments) is a 22-unit family property located in Mauston, WI. As of December 31, 2013, occupancy was 86% and the property was operating slightly below breakeven. The struggle with vacancy is a direct reflection of economic conditions in Mauston, where ongoing job losses have led to increased evictions and migration from the area. Management continues to focus marketing efforts on internet advertising. They also perform outreach to the local Housing and Urban Development office, the Wisconsin Housing Authority, and the Juneau County housing agencies. All real estate taxes, mortgage, and insurance payments are current. On December 31, 2019, the 15-year low income housing tax credit compliance period will expire with respect to Brookview Apartments.
Kaufman Fountainhead LP (Briarwood Apartments) is a 48-unit family property in Kaufman, Texas. The property, located 45 miles southeast of Dallas, Texas, receives USDA/RD rental assistance for 21 units. The property continues to operate below breakeven in 2013 due to high operating expenses and low occupancy. The declining local economy contributed to a number of skips and evictions for non-payment of rent. The 2013 year-to-date average occupancy has improved reaching 82%; however, property operations remain below breakeven. The operating general partner indicated a number of recent move-outs were families relocating for employment opportunities out of the area; also, a number of applicants that would otherwise move into the property and commute to Dallas for work are moving closer to the city due to rising commuting costs. Management is allowing new move-ins to pay their security deposits over a four month period. The operating general partner believes occupancy will continue to improve without the use of move-in concessions. Management attributed the higher maintenance in 2013 to interior and exterior foundation repairs and unit turnover costs and $29,669 was withdrawn from the replacement reserve in May for expensed improvements. The operating general partner continues to fund deficits as necessary. Real estate taxes, insurance, and mortgage payments are current. The low income housing tax credit compliance period expires on December 31, 2021.
Off Balance Sheet Arrangements
None.
Principal Accounting Policies and Estimates
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the Fund to make various estimates and assumptions. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund's financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.
The Fund is required to assess potential impairments to its long-lived assets, which are primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Fund does not control the operations of the Operating Partnerships. The purpose of an impairment analysis is to verify that the real estate investment balance reflected on the balance sheet does not exceed the value of the underlying investments.
If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership.
The main reason an impairment loss typically occurs is that the annual operating losses, recorded in accordance with the equity method of accounting, of the investment in limited partnership does not reduce the balance as quickly as the annual use of the tax credits. In years prior to the year ended March 31, 2009, management included remaining tax credits as well as residual value in the calculated value of the underlying investments. However, management decided to take a more conservative approach to the investment calculation and determined that the majority of the residual value component of the valuation was zero for the years ended, March 31, 2012 and 2011. However, it is important to note that this change in the accounting estimate to the calculation method of the impairment loss has no effect on the actual value or performance of the overall investment, nor does it have any effect on the remaining credits to be generated.
In accordance with the accounting guidance for the consolidation of variable interest entities, the Fund determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.
Principal Accounting Policies and Estimates - continued
Based on this guidance, the Operating Partnerships in which the Fund invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Fund's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Fund's balance in investment in Operating Partnerships, advances made to Operating Partnerships, plus the risk of recapture of tax credits previously recognized on the investments, represents its maximum exposure to loss. The Fund's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying housing complexes as well as the strength of the general partners and their guarantee against credit recapture to the investors of the Fund.
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Item 3 |
Quantitative and Qualitative Disclosures About Market Risk |
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Not Applicable |
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Item 4 |
Controls and Procedures |
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(a) |
Evaluation of Disclosure Controls and Procedures |
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As of the end of the period covered by this report, the Fund's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of Boston Capital Associates V LLC, carried out an evaluation of the effectiveness of the Fund's "disclosure controls and procedures" as defined under the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15 with respect to each series individually, as well as the Fund as a whole. Based on that evaluation, the Fund's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund's disclosure controls and procedures were effective to ensure that information relating to any series or the Fund as a whole required to be disclosed by it in the reports that it files or submits under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to the Fund's management, including the Fund's Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure with respect to each series individually, as well as the Fund as a whole. |
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(b) |
Changes in Internal Controls |
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There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended December 31, 2013 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting. |
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PART II - OTHER INFORMATION
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Item 1. |
Legal Proceedings |
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None |
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Item 1A. |
Risk Factors |
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There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2013. |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
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None |
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Item 3. |
Defaults upon Senior Securities |
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None |
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Item 4. |
Mine Safety Disclosures |
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Not Applicable |
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Item 5. |
Other Information |
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None |
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Item 6. |
Exhibits |
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(a)Exhibits |
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31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith |
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31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith |
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32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith |
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32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith |
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101. The following materials from the Boston Capital Tax Credit Fund V L.P. Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Partners' Capital (Deficit), (iv) the Condensed Statements of Cash Flows and (v) related notes, furnished herewith |
SIGNATURES
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 hereunto duly authorized.
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Boston Capital Tax Credit Fund V L.P. |
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By: |
Boston Capital Associates V LLC, |
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Date: February 14, 2014 |
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By: |
/s/ John P. Manning |
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Managing Member |
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Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Fund and in the capacities and on the dates indicated:
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DATE: |
SIGNATURE: |
TITLE: |
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February 14, 2014 |
/s/ John P. Manning John P. Manning |
Director, President (Principal Executive Officer), Boston Capital Partners II Corp.; Director, President (Principal Executive Officer), BCTC V Assignor Corp. |
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February 14, 2014 |
/s/ Marc N. Teal Marc N. Teal |
Sr. Vice President, Chief Financial Officer (Principal Financial and Accounting Officer), Boston Capital Partners II Corp.; Sr. Vice President, Chief Financial Officer (Principal Financial and Accounting Officer), BCTC V Assignor Corp. |
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