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EX-32 - BCTC V CERTIFICATION 906 - BF Garden Tax Credit Fund V L.P.b50616cert906jpm.htm
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EX-31 - BCTC V CERTIFICATION 302 - BF Garden Tax Credit Fund V L.P.b50616cert302mnt.htm
EX-31 - BCTC V CERTIFICATION 302 - BF Garden Tax Credit Fund V L.P.b50616cert302jpm.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 June 30, 2016

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
(Address of principal executive offices)           (Zip Code)

                   (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
JUNE 30, 2016

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 
   

Pages

 

Item 1. Condensed Financial Statements

   

Condensed Balance Sheets

3-6

   

Condensed Statements of Operations

7-10

   

Condensed Statements of Changes in 

Partners' Capital (Deficit)

 

11-12

   

Condensed Statements of Cash Flows

13-16

   

Notes to Condensed Financial 

Statements


17-25

     
 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of 

Operations



25-32

     
 

Item 3. Quantitative and Qualitative Disclosures About Market Risk


33

     
 

Item 4. Controls and Procedures

33

     

PART II - OTHER INFORMATION

 
     
 

Item 1. Legal Proceedings

34

     
 

Item 1A. Risk Factors

34

     
 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


34

     
 

Item 3. Defaults Upon Senior Securities

34

     
 

Item 4. Mine Safety Disclosures

34

     
 

Item 5. Other Information

34

     
 

Item 6. Exhibits 

34

     
     
 

Signatures

35

   

 

 

     

 

 

 

Boston Capital Tax Credit Fund V L.P.

 

CONDENSED BALANCE SHEETS

(Unaudited)


June 30,
2016

March 31,
2016

ASSETS

     

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$  2,306,680


$  2,460,506

     

OTHER ASSETS

   
       
 

Cash and cash equivalents

1,119,368

969,029

Acquisition costs, net

90,437

120,582

 

Other assets

   106,411

    106,411

 

$  3,622,896

$  3,656,528

     

LIABILITIES

   
     
 

Accounts payable and accrued expenses

$        343

$        843

 

Accounts payable affiliates

7,193,534

6,921,609

 

Capital contributions payable

        101

        101

 

  7,193,978

  6,922,553

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 
15,500,000 authorized BACs; 
11,777,706 issued and 11,776,706
outstanding as of June 30, 2016
and March 31, 2016.






(3,300,952)






(2,996,658)

General Partner

  (270,130)

  (269,367)

 

(3,571,082)

(3,266,025)

 

$  3,622,896

$  3,656,528

 

 

 

 

 

 




 

 

 

 

 

 

 

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


June 30,
2016

March 31,
2016

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$          -


$          -

     

OTHER ASSETS

   
 

Cash and cash equivalents

319,875

251,317

Acquisition costs, net

-

-

 

Other assets

          -

          -

 

$    319,875

$    251,317

     

LIABILITIES

   
     
 

Accounts payable and accrued expenses

$          -

$        385

 

Accounts payable affiliates

3,099,285

3,008,465

 

Capital contributions payable

          -

          -

 

  3,099,285

  3,008,850

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees

   

Units of limited partnership 
interest, $10 stated value per BAC; 
15,500,000 authorized BACs; 
3,478,334 issued and outstanding as
of June 30, 2016 and March 31, 2016.





(2,695,753)





(2,673,931)

General Partner

   (83,657)

   (83,602)

 

(2,779,410)

(2,757,533)

 

$    319,875

$    251,317

 

 

 

 




 

 

 

 

 

 

 

 

 

 

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


June 30,
2016

March 31,
2016

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$          -


$          -

     

OTHER ASSETS

   
 

Cash and cash equivalents

315,076

244,197

Acquisition costs, net

-

-

 

Other assets

          -

          -

 

$    315,076

$    244,197

     

LIABILITIES

     
 

Accounts payable and accrued expenses

$          -

$        115

 

Accounts payable affiliates

1,837,129

1,783,800

 

Capital contributions payable

          -

          -

 

  1,837,129

  1,783,915

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 
15,500,000 authorized BACs; 
2,299,372 issued and outstanding as
of June 30, 2016 and March 31, 2016.





(1,467,486)





(1,485,107)

General Partner

   (54,567)

   (54,611)

 

(1,522,053)

(1,539,718)

 

$    315,076

$    244,197

     

 

 

 

 




 

 

 

 

 

 

 

 

 

 

 

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


June 30,
2016

March 31,
2016

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$ 2,306,680


$ 2,460,506

     

OTHER ASSETS

   
 

Cash and cash equivalents

484,417

473,515

Acquisition costs, net

90,437

120,582

 

Other assets

   106,411

   106,411

 

$ 2,987,945

$ 3,161,014

     

LIABILITIES

   
     

Accounts payable and accrued expenses

$       343

$       343

 

Accounts payable affiliates

2,257,120

2,129,344

 

Capital contributions payable

       101

       101

 

 2,257,564

 2,129,788

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 
15,500,000 authorized BACs; 
6,000,000 issued and 5,999,000
outstanding as of June 30, 2016
and March 31, 2016.






862,287






1,162,380

General Partner

 (131,906)

 (131,154)

 

   730,381

 1,031,226

 

$ 2,987,945

$ 3,161,014

     

 

 

 

 

 

 




 

 

 

 

 

 

 

 

 

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 June 30,
(Unaudited)

 

 


  2016


  2015

     

Income

 

Interest income

$        581

$     26,791

   Other income

     50,446

        738

 

     51,027

     27,529

Share of loss from Operating 
Partnerships(Note D)


  (146,090)


  (306,046)

     

Expenses

   
 

Professional fees

15,813

17,434

 

Fund management fee, net (Note C)

150,062

272,143

 

Amortization

30,145

67,539

General and administrative expenses

     13,974

      9,439

 

    209,994

    366,555

     

NET INCOME (LOSS)

$  (305,057)

$  (645,072)

     

Net income (loss) allocated to
assignees


$  (304,294)


$  (643,460)

     

Net income (loss) allocated to
general partner


$      (763)


$    (1,612)

     

Net income (loss) per BAC

$      (.03)

$      (.05)

     






 

 

 

 

 

 

 

 










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 June 30,
(Unaudited)

Series 47


  2016


  2015

     

Income

   
 

Interest income

$       108

$        80

   Other income

    20,948

       738

 

    21,056

       818

Share of loss from Operating 
Partnerships(Note D)


         -


   (8,158)

     

Expenses

   
 

Professional fees

4,939

4,895

 

Fund management fee, net (Note C)

33,519

90,399

 

Amortization

-

11,960

 

General and administrative expenses

     4,475

     3,030

 

    42,933

   110,284

     

NET INCOME (LOSS)

$  (21,877)

$ (117,624)

     

Net income (loss) allocated to
assignees


$  (21,822)


$ (117,330)

     

Net income (loss) allocated to
general partner


$      (55)


$     (294)

     

Net income (loss) per BAC

$     (.01)

$     (.03)

     






 





 

 

 

 

 






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 June 30,
(Unaudited)

Series 48


  2016


  2015

     

Income

   
 

Interest income

$       122

$       105

   Other income

    19,651

         -

 

    19,773

       105

Share of loss from Operating 
Partnerships(Note D)


         -


  (21,502)

     

Expenses

   
 

Professional fees

4,206

4,235

 

Fund management fee, net (Note C)

(5,871)

55,195

 

Amortization

-

13,731

 

General and administrative expenses

     3,773

     2,695

 

     2,108

    75,856

     

NET INCOME (LOSS)

$    17,665

$  (97,253)

     

Net income (loss) allocated to
assignees


$    17,621


$  (97,010)

     

Net income (loss) allocated to
general partner


$        44


$     (243)

     

Net income (loss) per BAC


$       .01


$     (.04)

     





 

 

 

 



 









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 June 30,
(Unaudited)

Series 49


  2016


  2016

     

Income

   
 

Interest income

$        351

$     26,606

   Other income

      9,847

          -

 

     10,198

     26,606

Share of loss from Operating 
Partnerships(Note D)


  (146,090)


  (276,386)

     

Expenses

   
 

Professional fees

6,668

8,304

 

Fund management fee, net (Note C)

122,414

126,549

 

Amortization

30,145

41,848

 

General and administrative expenses

      5,726

      3,714

 

    164,953

    180,415

     

NET INCOME (LOSS)

$  (300,845)

$  (430,195)

     

Net income (loss) allocated to
assignees


$  (300,093)


$  (429,120)

     

Net income (loss) allocated to
general partner


$      (752)


$    (1,075)

     

Net income (loss) per BAC


$      (.05)


$      (.07)

     








 

 

 








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)
Three Months Ended June 30,
(Unaudited)

 



Assignees


General
partner



Total

       

Partners' capital
(deficit)
  April 1, 2016



$(2,996,658)



$(269,367)



$(3,266,025)

       

Net income (loss)

  (304,294)

    (763)

  (305,057)

       

Partners' capital
(deficit),
  June 30, 2016



$(3,300,952)



$(270,130)



$(3,571,082)

       











 

 






 

 

 

 

 

 









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)
Three Months Ended June 30,
(Unaudited)

 


Assignees

General
partner


Total

Series 47

     

Partners' capital
(deficit)
  April 1, 2016



$(2,673,931)



$ (83,602)



$(2,757,533)

Net income (loss)

  ( 21,822)

     (55)

   (21,877)

       

Partners' capital
(deficit),
  June 30, 2016



$(2,695,753)



$ (83,657)



$(2,779,410)

   

 

 

 
 


Assignees

General
partner


Total

Series 48

     

Partners' capital
(deficit)
  April 1, 2016



$(1,485,107)



$ (54,611)



$(1,539,718)

Net income (loss)

     17,621

       44

     17,665

       

Partners' capital
(deficit),
  June 30, 2016



$(1,467,486)



$ (54,567)



$(1,522,053)

   

 

 

 
 


Assignees

General
partner


Total

Series 49

     

Partners' capital
(deficit)
  April 1, 2016



$  1,162,380



$(131,154)



$  1,031,226

       

Net income (loss)

  (300,093)

    (752)

  (300,845)

       

Partners' capital
(deficit),
  June 30, 2016



$    862,287



$(131,906)



$    730,381

       



 







The accompanying notes are an integral part of these condensed statements



Boston Capital Tax Credit Fund V L.P.


CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)

 

2016

2015

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (305,057)

$  (645,072)

 

Adjustments to reconcile net income
(loss) to net cash provided by
operating activities

   
 

Amortization

30,145

67,539

 

Distributions from Operating
  Partnerships


7,736


27,500

 

Share of loss from Operating
  Partnerships


146,090


306,046

 

Changes in assets and liabilities

   
 

(Decrease) in accounts
  payable and accrued expenses


(500)


-

 

Increase in accounts
  payable affiliates


    271,925


    284,457

       
 

Net cash provided by
operating activities


    150,339


     40,470

     

INCREASE IN CASH AND
CASH EQUIVALENTS


    150,339


     40,470

     

Cash and cash equivalents, beginning

    969,029

    854,750

     

Cash and cash equivalents, ending

$  1,119,368

$    895,220



















 



 

 

The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund V L.P.

CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)

Series 47

 

2016

2015

Cash flows from operating activities:

   
     
 

Net income (loss)

$   (21,877)

$  (117,624)

Adjustments to reconcile net income
(loss) to net cash provided by
operating activities

 

Amortization

-

11,960

 

Distributions from Operating
  Partnerships


-


13,750

 

Share of loss from Operating
  Partnerships


-


8,158

 

Changes in assets and liabilities

   
 

(Decrease) in accounts
  payable and accrued expenses


(385)


-

 

Increase in accounts
  payable affiliates


     90,820


     97,086

       
 

Net cash provided by
operating activities


     68,558


     13,330

     

INCREASE IN CASH AND
CASH EQUIVALENTS


     68,558


     13,330

     

Cash and cash equivalents, beginning

    251,317

    218,870

     

Cash and cash equivalents, ending

$    319,875

$    232,200

     























The accompanying notes are an integral part of these condensed statements

 

 


Boston Capital Tax Credit Fund V L.P.

CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)

Series 48

 

2016

2015

Cash flows from operating activities:

   

Net income (loss)

$     17,665

$   (97,253)

 

Adjustments to reconcile net income
(loss) to net cash provided by
operating activities

   
 

Amortization

-

13,731

 

Distributions from Operating
  Partnerships


-


13,750

 

Share of loss from Operating
  Partnerships


-


21,502

 

Changes in assets and liabilities

   
 

(Decrease) in accounts
  payable and accrued expenses


(115)


-

 

Increase in accounts
  payable affiliates


     53,329


     59,595

       
 

Net cash provided by
operating activities


     70,879


     11,325

     

INCREASE IN CASH AND
CASH EQUIVALENTS


     70,879


     11,325

     

Cash and cash equivalents, beginning

    244,197

    222,229

     

Cash and cash equivalents, ending

$    315,076

$    233,554

     

 






















The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund V L.P.

CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)

Series 49

 

2016

2015

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (300,845)

$  (430,195)

 

Adjustments to reconcile net income
(loss) to net cash provided by
operating activities

   
 

Amortization

30,145

41,848

 

Distributions from Operating
  Partnerships


7,736


-

 

Share of loss from Operating
  Partnerships


146,090


276,386

 

Changes in assets and liabilities

   

(Decrease) in accounts
  payable and accrued expenses


-


-

 

Increase in accounts
  payable affiliates


    127,776


    127,776

       
 

Net cash provided by
operating activities


     10,902


     15,815

     

INCREASE IN CASH AND
CASH EQUIVALENTS


     10,902


     15,815

     

Cash and cash equivalents, beginning

    473,515

    413,651

     

Cash and cash equivalents, ending

$    484,417

$    429,466

     























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund V L.P.


NOTES TO CONDENSED FINANCIAL STATEMENTS
June 30, 2016
(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 June 30, 2016, 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 June 30, 2016:

 

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.

 

 

 

Boston Capital Tax Credit Fund V L.P.


NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2016
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements herein as of June 30, 2016 and for the three 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, 2016.

Amortization

Acquisition costs were amortized on the straight-line method over 27.5 years. Impairment losses have been recognized for the year ended March 31, 2016 of $47,842 for Series 47, $54,923 for Series 48 and $46,810 for Series 49. Impairment losses have been recognized for the year ended March 31, 2015 of $418,353 for Series 47, $168,065 for Series 48 and $33,896 for Series 49. As of March 31, 2016, the lives of the remaining acquisition costs were reassessed and determined to be 1 year for Series 49. As of March 31, 2016, acquisition costs were fully amortized or impaired for Series 47 and Series 48.

 

Accumulated amortization of acquisition costs by Series for the quarters ended June 30, 2016 and 2015 are as follows:

 

2016

2015

Series 47

$        -

$   11,960

Series 48

-

13,731

Series 49

   30,145

   41,848

$   30,145

$   67,539

The remaining acquisition costs are expected to be amortized in the year ending March 31, 2017.

 

 

 

Boston Capital Tax Credit Fund V L.P.


NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2016
(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 June 30, 2016 and 2015 are as follows:

 

 

2016

2015

Series 47

$ 90,820

$ 97,086

Series 48

53,329

59,595

Series 49

127,776

127,776

Total

$271,925

$284,457

 

The fund management fees paid for the quarters ended June 30, 2016 and 2015 are as follows:

 

2016

2015

Series 47

$      -

$      -

Series 48

-

-

Series 49

      -

      -

Total

$      -

$      -

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2016 and 2015, the Fund had limited partnership interests in 48 and 50 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at June 30, 2016 and 2015 is as follows:

 

2016

2015

Series 47

14

15

Series 48

10

11

Series 49

24

24

Total

48

50

 

Under the terms of the Partnership's investment in each Operating Partnership, the Fund was required to make capital contributions to the Operating Partnerships. These contributions were payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations.

 

Boston Capital Tax Credit Fund V L.P.


NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2016
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (CONTINUED)

 

During the three months ended June 30, 2016 and 2015, the Fund disposed of two and zero Operating Partnerships, resepctively. A summary of the dispositions by Series for June 30, 2016 is as follows:

 

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Partnership Proceeds from Disposition

 

Gain/(Loss) on Disposition

Series 47

-

 

1

 

$

-

 

$

-

Series 48

-

 

1

   

-

   

-

Series 49

-

 

-

   

-

   

-

Total

-

 

2

 

$

-

 

$

-

 

The gain (loss) described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Partnership's investment in the Operating Partnership. As a result, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.

 

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 three months ended March, 2016.

 

 

 

 

 

 



















 

 

 

Boston Capital Tax Credit Fund V L.P.


NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2016
(Unaudited)

 

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

 

Total

 

2016

2015

Revenues

   
 

Rental

$  5,465,451

$  5,756,323

 

Interest and other

    162,295

    175,956

 

  5,627,746

  5,932,279

     

Expenses

   
 

Interest

657,909

851,096

 

Depreciation and amortization

1,596,191

1,605,412

 

Operating expenses

  3,697,028

  4,157,972

 

  5,951,128

  6,614,480

     

NET LOSS

$  (323,382)

$  (682,201)

     

Net loss allocated to Boston Capital Tax Credit Fund V L.P.*


$  (320,148)


$  (675,378)

     

Net loss allocated to other Partners

$    (3,234)

$    (6,823)

 

 



* Amounts include $174,058 and $369,332 for 2016 and 2015, 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
June 30, 2016
(Unaudited)

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

 

Series 47

 

 

2016

2015

Revenues

   
 

Rental

$  2,072,234

$  2,238,211

 

Interest and other

     50,566

     43,950

 

  2,122,800

  2,282,161

     

Expenses

   
 

Interest

244,551

332,755

 

Depreciation and amortization

493,366

542,082

 

Operating expenses

  1,428,706

  1,627,078

 

  2,166,623

  2,501,915

     

NET LOSS

$   (43,823)

$  (219,754)

     

Net loss allocated to Boston Capital Tax Credit Fund V L.P.*


$   (43,385)


$  (217,557)

     

Net loss allocated to other Partners

$      (438)

$    (2,197)

 

 

 


* Amounts include $43,385 and $209,399 for 2016 and 2015, 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
June 30, 2016
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

 

Series 48

 

2016

2015

Revenues

   
 

Rental

$  1,035,078

$  1,245,130

 

Interest and other

     18,637

     29,143

 

  1,053,715

  1,274,273

     

Expenses

   
 

Interest

57,113

149,284

 

Depreciation and amortization

269,156

328,981

 

Operating expenses

    734,528

    886,783

 

  1,060,797

  1,365,048

     

NET LOSS

$    (7,082)

$   (90,775)

     

Net loss allocated to Boston Capital Tax Credit Fund V L.P.*


$    (7,011)


$   (89,866)

     

Net loss allocated to other Partners

$       (71)

$      (909)

 

 

 

 

 

* Amounts include $7,011 and $68,364 for 2016 and 2015, 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
June 30, 2016
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

 

Series 49

 

2016

2015

Revenues

   
 

Rental

$  2,358,139

$  2,272,982

 

Interest and other

    93,092

    102,863

 

  2,451,231

  2,375,845

     

Expenses

   
 

Interest

356,245

369,057

 

Depreciation and amortization

833,669

734,349

 

Operating expenses

  1,533,794

  1,644,111

 

  2,723,708

  2,747,517

     

NET LOSS

$  (272,477)

$  (371,672)

     

Net loss allocated to Boston Capital Tax Credit Fund V L.P.*


$  (269,752)


$  (367,955)

     

Net loss allocated to other Partners

$    (2,725)

$    (3,717)

 

 

 

* Amounts include $123,662 and $91,569 for 2016 and 2015, 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
June 30, 2016
(Unaudited)

 

NOTE E - TAXABLE LOSS

The Fund's taxable loss for the calendar year ended December 31, 2016 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 2012 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, 2016. 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 June 30, 2016 were $271,925 and total fund management fees accrued as of June 30, 2016 were $7,193,534. During the quarter ended June 30, 2016, 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 June 30, 2016.

 

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. Series 47 has since sold its interest in 1 of the Operating Partnerships and 14 remain.

 

During the quarter ended June 30, 2016, 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. Series 48 has since sold its interest in 1 of the Operating Partnerships and 10 remain.

 

During the quarter ended June 30, 2016, 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 June 30, 2016, 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 June 30, 2016. 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 June 30, 2016, the Fund held limited partnership interests in 48 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 months ended June 30, 2016 are as follows:

3 Months
Gross Fund Management Fee


3 Months
Reporting Fee

3 Months
Fund Management Fee Net of Reporting Fee

Series 47

$ 90,820

$ 57,301

$ 33,519

Series 48

53,329

59,200

(5,871)

Series 49

127,776

  5,362

122,414

 

$271,925

$121,863

$150,062

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 June 30, 2016 and 2015, the average Qualified Occupancy was 100%. The series had a total of 14 properties at June 30, 2016, all of which were at 100% Qualified Occupancy.

 

For the three month periods ended June 30, 2016 and 2015, Series 47 reflects a net loss from Operating Partnerships of $(43,823) and $(219,754), respectively, which includes depreciation and amortization of $493,366 and $542,082, 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. Due to low rental rates and high operating expenses, the property operates below breakeven. The investment general partner will continue to work with the operating general partner and the management company to monitor and improve operations. The operating general partner's operating deficit guarantee is unlimited in time and up to $542,490. The 15-year low income tax credit compliance period with respect to CP Continental expires on December 31, 2019.

 

McEver Vineyards, L.P. (McEver Vineyards Apartments) is a 220-unit family property in Gainesville, GA. Due to high operating expenses, burdensome debt service and insufficient rental rates the property operated below breakeven from 2006 - 2015. The investment general partner worked with the operating general partner and the management company in an attempt to improve operations. Whether the operating general partner's operating deficit guarantee had expired was disputed by the operating general partner and the investment general partner. Nevertheless, operating deficits were partially financed by advances from the operating general partner during the past several years. The 15-year low income tax credit compliance period with respect to McEver Vineyards, LP expires on December 31, 2019. The operating general partner signed a letter of intent in December 2015 and a subsequent purchase and sale agreement in January 2016 to sell the property to a buyer who agreed to manage the property compliant with the requirements of Section 42 and sign a post transfer compliance and indemnity agreement and a personal guaranty. The subject property sale was completed on April 8, 2016. Although there were no distributable proceeds to the investment limited partners from the sale, the buyer of the property did execute a post transfer compliance & indemnity agreement, and a personal guaranty at closing preventing a foreclosure and mitigating the risk of recapture costs for the investment limited partners. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the sale of the Operating Partnership has been recorded as of June 30, 2016.

Park Plaza Village Limited Partnership (Park Plaza Village Apartments) is a 14-unit family property in Temple, OK.  Due to fluctuating occupancy and high expenses in 2014, the property operated below breakeven. The property operated above breakeven in 2015. The investment general partner will continue to work with the operating general partner and the management company to monitor and improve operations. The operating general partner's operating deficit guarantee expired on August 31, 2014. The 15-year low income housing tax credit compliance period with respect to Park Plaza Village, LP expires on December 31, 2018. As the property has stabilized and is now operating above breakeven, the investment general partner will cease reporting for Park Plaza Village Apartments subsequent to June 30, 2016.

 

Hillsboro Fountainhead, L.P. (Pecan Creek Apartments) is a 48-unit family property in Hillsboro, Texas. Due to low occupancy, insufficient rental income and high operating expenses, the property continues to operate below breakeven. The investment general partner will continue to work closely with the operating general partner and the affiliated management company to improve operations. The operating general partner's operating deficit guarantee has expired; however, operating general partner continues to fund deficits through advances and by accruing management fees. The 15-year low income housing tax credit compliance period with respect to Hillsboro Fountainhead, L.P., expires on December 31, 2019.

 

Series 48

As of June 30, 2016 and 2015, the average Qualified Occupancy was 100%. The series had a total of 10 properties at June 30, 2016, all of which were at 100% Qualified Occupancy.

 

For the three month periods ended June 30, 2016 and 2015, Series 48 reflects a net loss from Operating Partnerships of $(7,082) and $(90,775), respectively, which includes depreciation and amortization of $269,156 and $328,981, respectively. This is an interim period estimate; it is not indicative of the final year-end results.

 

CTP Limited Partnership (Contempo Apartments) is a 48-unit family property in Hammond, LA. In March 2016, heavy rains caused flash flooding in the area. Of the total 48 units, 32 were severely damaged and are no longer able to be occupied. The total insurance claim was for $520,000. As of June 30, 2016, the property was 90% occupied. Repairs have been made to all units and the manager is working to fill the last five vacant units. Management has three units pre-leased for July move-ins. The operating general partner's operating deficit guarantee has expired. The 15-year low income tax credit compliance period with respect to CTP Limited Partnership expires on December 31, 2019. As the property has stabilized and is now operating above breakeven, the investment general partner will cease reporting for CTP Limited Partnership subsequent to June 30, 2016.

McEver Vineyards, L.P. (McEver Vineyards Apartments) is a 220-unit family property in Gainesville, GA. Due to high operating expenses, burdensome debt service and insufficient rental rates the property operated below breakeven from 2006 - 2015. The investment general partner worked with the operating general partner and the management company in an attempt to improve operations. Whether the operating general partner's operating deficit guarantee had expired was disputed by the operating general partner and the investment general partner. Nevertheless, operating deficits were partially financed by advances from the operating general partner during the past several years. The 15-year low income tax credit compliance period with respect to McEver Vineyards, LP expires on December 31, 2019. The operating general partner signed a letter of intent in December 2015 and a subsequent purchase and sale agreement in January 2016 to sell the property to a buyer who agreed to manage the property compliant with the requirements of Section 42 and sign a post transfer compliance and indemnity agreement and a personal guaranty. The subject property sale was completed on April 8, 2016. Although there were no distributable proceeds to the investment limited partners from the sale, the buyer of the property did execute a post transfer compliance & indemnity agreement, and a personal guaranty at closing preventing a foreclosure and mitigating the risk of recapture costs for the investment limited partners. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the sale of the Operating Partnership has been recorded as of June 30, 2016.

 

Wyndam-Emporia (Wyndam Place Senior Residences) is a 42-unit senior property located in Emporia, KS. Due to low occupancy, the property continues to operate below breakeven. The investment general partner will continue to work with the operating general partner and the management company to monitor and improve operations. Effective January 1, 2016, the operating general partner modified the existing loan resulting in an annual debt service reduction of $14,000. The operating general partner remains under the operating deficit guarantee until the property can demonstrate 12 consecutive months of above breakeven operations. The 15-year low income housing tax credit compliance period with respect to Wyndam Place Senior Residences expires on December 31, 2020.

 

Series 49

As of June 30, 2016 and 2015, the average Qualified Occupancy was 100%. The series had a total of 24 properties at June 30, 2016, all of which were at 100% Qualified Occupancy.

 

For the three month periods ended June 30, 2016 and 2015, Series 49 reflects a net loss from Operating Partnerships of $(272,477) and $(371,672), respectively, which includes depreciation and amortization of $833,669 and $734,349, 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 operated above breakeven during 2015. The investment general partner continues to monitor the personal Chapter 7 bankruptcy of the principal of the operating general partner and regularly receives verbal updates from the bankruptcy trustee on the status and progress on the liquidation of the operating general partner's personal assets, including the eventual sale of his operating general partner interest in the subject operating partnership. Although the operating general partner's operating deficit guarantee has not expired, it has no ability to honor this guarantee due to aforementioned personal bankruptcy filing by its principal. The 15-year low income tax credit compliance period with respect to Rosewood Place, LLC expires on December 31, 2021.

 

Rural Housing Partners of Mauston L.P. (Brookview I & II Apartments) is a 22-unit family property located in Mauston, WI. Due to low occupancy and insufficient rental income the property operates below breakeven. The investment general partner will continue to work with the operating general partner and the management company to monitor and improve the occupancy level. The operating general partner's operating deficit guarantee has expired. The 15-year low income housing tax credit compliance period with respect to Rural Housing Partners of Mauston, LP expires on December 31, 2019.

 

Linden - Bartlesville Partners, L.P. (The Linden's Apartments) is a 54-unit family property located in Bartlesville, OK. Due to decreasing occupancy levels since the fourth quarter of 2014, the property operates below breakeven. The investment general partner will continue to work with the operating general partner and the management company to monitor and improve operations. The operating deficit guarantee expired on March 31, 2010. The operating general partner's obligation to fund deficits under the operating deficit guaranty has expired; however, the operating general partner continues to fund deficits and has affirmed its commitment to continue doing so. The 15-year low income housing tax credit compliance period with respect to Linden - Bartlesville Partners, L.P., expires on December 31, 2020.  

 

Meadow Glen Apartments, L.P. (Meadow Glen Apartments) is a 20-unit family property located in Kingfisher, OK. Due to decreasing occupancy levels in the first quarter of 2015, the property operated below breakeven. The investment general partner will continue to work with the operating general partner and the management company to monitor and improve operations. The operating deficit guarantee expired on September 30, 2008. The 15-year low income housing tax credit compliance period with respect to Meadow Glen Apartments, Limited Partnership, expires on December 31, 2019. As the property has stabilized and is now operating above breakeven, the investment general partner will cease reporting for Meadow Glen Apartments, L.P. subsequent to June 30, 2016.

 

Linden - Shawnee Partners, L.P. (Linden's Apartments) is a 54-unit family property in Shawnee, OK. The 2015 audited financial statements indicate above breakeven operations for the year; however, occupancy declined throughout 2015 and during the first quarter of 2016. Operations are below breakeven in 2016. The investment general partner will continue to work with the operating general partner and management company to improve operations. The operating general partners operating deficit guarantee expires on December 31, 2020. The 15-year low income housing tax credit compliance period expires on December 31, 2020.

 

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, 2016 and 2015. 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.

 

Recent Accounting Pronouncement

 

In February, 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis". This will improve certain areas of consolidation guidance for reporting organizations that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. ASU 2015-02 simplified and improves GAAP by: eliminating the presumption that a general partner should consolidate a limited partnership, eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model), and clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. ASU 2015-02 will be effective for periods beginning after December 15, 2015. The Fund has determined that there is no material impact to its financial statements as a result of this guidance.

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

   
 

Not Applicable

 

Item 4

Controls and Procedures

     
 

(a)

Evaluation of Disclosure Controls and Procedures

   

 

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.

 

 

(b)

Changes in Internal Controls

     
   

There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended June 30, 2016 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.


 

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

   
 

None

   

Item 1A.

Risk Factors

   
 

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, 2016.

   

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

   
 

None

   

Item 3.

Defaults upon Senior Securities

   
 

None

   

Item 4.

Mine Safety Disclosures

   
 

Not Applicable

   

Item 5.

Other Information

   
 

None

   

Item 6.

Exhibits 

   
 

(a)Exhibits

   
   

31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herewith

   
   

31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herewith

   
   

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

     
   

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

   
   

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 June 30, 2016 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, filed herein

 

 

 

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.

 

 

Boston Capital Tax Credit Fund V L.P.

 

By:

Boston Capital Associates V LLC,
General Partner

     
     

Date: August 12, 2016

 

By:

/s/ John P. Manning
John P. Manning

       
     

Managing Member

 

 

 

 

 


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:

DATE:

SIGNATURE:

TITLE:

August 12, 2016

/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.

     

     
     
     
     
     

August 12, 2016

/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.