FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2002
OR
o 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: 0-21897
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
California 33-0707612
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626
(714) 662-5565
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to section 12(g) of the Act:
UNITS OF LIMITED PARTNERSHIP INTEREST
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes__X No ___
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. <060>o<048><057><057><062>
1
State the aggregate market value of the voting and non-voting common equity held
by non-affiliates of the registrant.
INAPPLICABLE
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and the Part
of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is
incorporated: (1) Any annual report to security holders; (2) Any proxy or
information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or
(c) under the Securities Act of 1933. The listed documents should be clearly
described for identification purposes (e.g., annual report to security holders
for fiscal year ended December 24, 1980).
NONE
2
Item 1. Business
PART I.
- -------
Organization
WNC Housing Tax Credit Fund, V, L.P., Series 4 (the "Partnership") or ("Series
4") was formed under the California Revised Limited Partnership Act on July 26,
1995 and commenced operations on July 1, 1996. The Partnership was formed to
acquire limited partnership interests in limited partnerships or limited
liability companies ("Local Limited Partnerships") which own multi-family
housing complexes that are eligible for low-income housing federal and, in
certain cases, California income tax credits ("Low Income Housing Credit").
The general partner of the Partnership is WNC & Associates, Inc. (the "General
Partner" or "Associates".) The chairman and president own substantially all of
the outstanding stock of Associates. The business of the Partnership is
conducted primarily through the General Partner as the Partnership has no
employees of its own.
Pursuant to a registration statement filed with the Securities and Exchange
Commission, on July 26, 1995, on July 1, 1996 the Partnership commenced a public
offering of 25,000 Units of Limited Partnership Interests ("Units"), at a price
of $1,000 per Unit. The Partnership's offering terminated on July 11, 1997.
Since inception a total of 22,000 Units representing approximately $21,915,000
were sold throughout the offering.
Description of Business
The Partnership's principal business objective is to provide its Limited
Partners with Low Income Housing Credits. The Partnership's principal business
therefore consists of investing as a limited partner or non-managing member in
Local Limited Partnerships each of which will own and operate a multi-family
housing complex (the "Housing Complex") which will qualify for the Low Income
Housing Credit. In general, under Section 42 of the Internal Revenue Code, an
owner of low-income housing can receive the Low Income Housing Credit to be used
to reduce Federal taxes otherwise due in each year of a ten-year period. In
general, under Section 17058 of the California Revenue and Taxation Code, an
owner of low-income housing can receive the Low Income Housing Credit to be used
against California taxes otherwise due in each year of a four-year period. The
Housing Complex is subject to a fifteen-year compliance period (the "Compliance
Period"), and under state law may have to be maintained as low income housing
for 30 or more years.
In general, in order to avoid recapture of Low Income Housing Credits, the
Partnership does not expect that it will dispose of its interests in Local
Limited Partnerships ("Local Limited Partnership Interests") or approve the sale
by any Local Limited Partnership of its Housing Complex prior to the end of the
applicable Compliance Period. Because of (i) the nature of the Housing
Complexes, (ii) the difficulty of predicting the resale market for low-income
housing 15 or more years in the future, and (iii) the ability of government
lenders to disapprove of transfer, it is not possible at this time to predict
whether the liquidation of the Partnership's assets and the disposition of the
proceeds, if any, in accordance with the Partnership's Agreement of Limited
Partnership, as amended by Supplements to the Prospectus thereto (the
"Partnership Agreement"), will be able to be accomplished promptly at the end of
the 15-year period. If a Local Limited Partnership is unable to sell its Housing
Complex, it is anticipated that the local general partner ("Local General
Partner") will either continue to operate such Housing Complex or take such
other actions as the Local General Partner believes to be in the best interest
of the Local Limited Partnership. Notwithstanding the preceding, circumstances
beyond the control of the General Partner or the Local General Partners may
occur during the Compliance Period, which would require the Partnership to
approve the disposition of an Housing Complex prior to the end thereof, possibly
resulting in recapture of Low Income Housing Credits.
As of March 31, 2002 the Partnership had invested in fourteen Local Limited
Partnerships. Each of these Local Limited Partnerships owns a Housing Complex
that is eligible for the federal Low Income Housing Credit. Certain Local
Limited Partnerships may also benefit from government programs promoting low- or
moderate-income housing.
3
The Partnership's investments in Local Limited Partnerships are subject to the
risks incident to the management and ownership of low-income housing and to the
management and ownership of multi-unit residential real estate. Some of these
risks are that the Low Income Housing Credit could be recaptured and that
neither the Partnership's investments nor the Housing Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes receive government financing or operating subsidies, they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes; difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests; limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations. The Housing Complexes are subject to mortgage
indebtedness. If a Local Limited Partnership does not make its mortgage
payments, the lender could foreclose resulting in a loss of the Housing Complex
and Low Income Housing Credits. As a limited partner or non-managing member of
the Local Limited Partnerships, the Partnership will have very limited rights
with respect to management of the Local Limited Partnerships, and will rely
totally on the general partners or managing members of the Local Limited
Partnerships for management of the Local Limited Partnerships. The value of the
Partnership's investments will be subject to changes in national and local
economic conditions, including unemployment conditions, which could adversely
impact vacancy levels, rental payment defaults and operating expenses. This, in
turn, could substantially increase the risk of operating losses for the Housing
Complexes and the Partnership. In addition, each Local Limited Partnership is
subject to risks relating to environmental hazards and natural disasters, which
might be uninsurable. Because the Partnership's operations will depend on these
and other factors beyond the control of the General Partner and the Local
General Partners, there can be no assurance that the anticipated Low Income
Housing Credits will be available to Limited Partners.
In addition, Limited Partners are subject to risks in that the rules governing
the Low Income Housing Credit are complicated, and the use of credits can be
limited. The only material benefit from an investment in Units may be the Low
Income Housing Credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will develop. All Partnership management
decisions are made by the General Partner.
As a limited partner or non-managing member, the Partnership's liability for
obligations of each Local Limited Partnership is limited to its investment. The
Local General Partners of each Local Limited Partnership retain responsibility
for developing, constructing, maintaining, operating and managing the Housing
Complexes.
Item 2. Properties
Through its investment in Local Limited Partnerships, the Partnership holds
limited partnership interests in the Housing Complexes. The following table
reflects the status of the fourteen Housing Complexes as of the dates and for
the periods indicated.
4
------------------------- -----------------------------------------------
As of March 31, 2002 As of December 31, 2001
------------------------- -----------------------------------------------
Partnership's Estimated Encumbrances
Total Investment Amount of Low Income of Local
General Partner In Local Limited Investment Number Housing Limited
Partnership Name Location Name Partnerships Paid to Date Of Units Occupancy Credits Partnerships
- ------------------------------------------------------------------------------------------------------------------------------------
Ashford Place, a Shawnee, The Cowen
Limited Partnership Oklahoma Group, LLC $ 2,317,000 $ 2,317,000 100 95% $ 3,931,000 $ 2,280,000
Belen Vista Belen, Monarch Properties, Inc.
Associates, Limited New and Low Income Housing
Partnership Mexico Foundation of NM 416,000 416,000 57 100% 714,000 1,527,000
Blessed Rock of El Monte, Everland,
El Monte California Inc. 2,511,000 2,511,000 137 100% 8,899,000 3,721,000
Bolivar Plaza Boliver, MBL Development Co.
Apartments Missouri 1,181,000 1,181,000 32 94% 1,658,000 556,000
Cleveland Coffeyville, Williams Management and
Apartments L.P. Kansas Consulting, Inc. and
Eastern Housing Corp. 515,000 431,000 48 73% 737,000 1,595,000
Crescent Crescent
Crescent City City, City
Apartments California Surf, Inc. 1,166,000 1,166,000 56 100% 2,221,000 1,960,000
D. Hilltop Prairie Donald W.
Apartments Ltd. View,Texas Sowell 101,000 101,000 24 100% 187,000 464,000
Greyhound Associates Windsor, WCM Community
I,L.P. Missouri Development Corp. 642,000 642,000 24 88% 1,128,000 593,000
Lamar Plaza Lamar, MBL Development
Apts., L.P. Missouri Co. 738,000 738,000 28 82% 1,230,000 808,000
Mesa Verde Apartments Roswell, New Trianon-Mesa
Limited Partnership Mexico Verde, LLC 3,941,000 3,941,000 142 91% 6,472,000 2,160,000
5
------------------------- -----------------------------------------------
As of March 31, 2002 As of December 31, 2001
------------------------- -----------------------------------------------
Partnership's Estimated Encumbrances
Total Investment Amount of Low Income of Local
General Partner In Local Limited Investment Number Housing Limited
Partnership Name Location Name Partnerships Paid to Date Of Units Occupancy Credits Partnerships
- ------------------------------------------------------------------------------------------------------------------------------------
Mountain Vista Los Alamos, Monarch Properties, Inc.
Associates Limited New Mexico and Low Income Housing
Partnership Foundation of NM 315,000 315,000 53 96% 543,000 1,433,000
North Central Limited New York, City and Suburban
Partnership New York Development Corp. 751,000 751,000 18 94% 1,054,000 454,000
Woodland, Marion,
Ltd. Alabama ACHR Corp. 1,288,000 1,288,000 42 100% 2,112,000 1,292,000
Wynwood Regency Investment
Place, North Associates, Inc., ATO,
Limited Raleigh, Inc., a Non-Profit Corp.
Partnership Carolina and Gordon Blackwell. 534,000 454,000 24 71% 780,000 566,000
------------- ------------ ----- --- ------------ ------------
$ 16,416,000 $ 16,252,000 785 92% $ 31,666,000 $ 19,409,000
============= ============ === === ============ ============
6
-----------------------------------------------------------------------------
For the year ended December 31, 2001
----------------------------------------------------------------------------
Low Income Housing
Credits Allocated to
Partnership Name Rental Income Net (Loss) Income Partnership
- -------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited Partnership $ 447,000 $ (174,000) 98.99%
Belen Vista Associates, Limited
Partnership 327,000 (1,000) 98.99%
Blessed Rock of El Monte 742,000 (103,000) 49.50%
Bolivar Plaza Apartments 101,000 (21,000) 98.98%
Cleveland Apartments L.P. 194,000 (61,000) 99.98%
Crescent City Apartments 171,000 (146,000) 99.00%
D. Hilltop Apartments Ltd. 71,000 (15,000) 99.00%
Greyhound Associates I, L.P. 77,000 (29,000) 99.00%
Lamar Plaza Apts., L.P. 90,000 (9,000) 99.97%
Mesa Verde Apartments Limited
Partnership 509,000 (143,000) 99.00%
Mountain Vista Associates Limited
Partnership 244,000 (8,000) 98.99%
North Central Limited Partnership 113,000 (68,000) 99.89%
Woodland, Ltd. 93,000 (65,000) 99.98%
Wynwood Place, Limited Partnership 120,000 (32,000) 99.98%
----------- ----------
$ 3,299,000 $(875,000)
=========== ==========
7
Item 3. Legal Proceedings
NONE
Item 4. Submission of Matters to a Vote of Security Holders
NONE
PART II.
- --------
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
Item 5a.
(a) The Units are not traded on a public exchange but were sold through a
public offering. It is not anticipated that any public market will develop
for the purchase and sale of any Unit and none exists. Units can be
assigned only if certain requirements in the Partnership Agreement are
satisfied.
(b) At March 31, 2002, there were 1,326 Limited Partners.
(c) The Partnership was not designed to provide cash distributions to Limited
Partners in circumstances other than refinancing or disposition of its
investments in Local Limited Partnerships.
(d) No unregistered securities were sold by the Partnership during the year
ended March 31, 2002.
Item 5b.
NOT APPLICABLE
Item 6. Selected Financial Data
Selected balance sheet information for the Partnership is as follows:
March 31 December 31
----------------------------------------------------- -------------------------
2002 2001 2000 1999 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
ASSETS
Cash and cash equivalents $ 1,221,951 $ 1,316,217 $ 1,725,133 $ 3,460,935 $ 3,817,546 $ 5,906,978
Due from affiliates 9,732 9,732 - 52,835 52,835 276,775
Investments in limited partnerships,
net 13,261,486 14,075,565 15,243,007 15,345,027 15,573,510 14,894,897
Interest receivable - - - - - 76,622
Loans receivable - - 12,080 12,080 91,000 301,226
Other assets 574 574 574 500 500 500
----------- ----------- ----------- ----------- ----------- -----------
$ 14,493,743 $ 15,402,088 $ 16,980,794 $ 18,871,377 $ 19,535,391 $ 21,456,998
=========== =========== =========== =========== =========== ===========
LIABILITIES
Due to limited partnerships $ 164,475 $ 257,889 $ 672,640 $ 1,182,870 $ 1,657,666 $ 2,880,839
Accrued fees and expenses due to
general
partner and affiliates 18,143 1,664 1,936 181,131 121,498 52,203
PARTNERS' EQUITY 14,311,125 15,142,535 16,306,218 17,507,376 17,756,227 18,523,956
----------- ----------- ----------- ----------- ----------- -----------
$ 14,493,743 $ 15,402,088 $ 16,980,794 $ 18,871,377 $ 19,535,391 $ 21,456,998
=========== =========== =========== =========== =========== ===========
8
Selected results of operations, cash flows, and other information for the
Partnership as follows:
For the Years For the For the Years Ended
Three Months Ended
Ended March 31 March 31 December 31
-------------------------------------- -------------------------- --------------------------
2002 2001 2000 1999 1998 1998 1997
---------- ----------- ----------- ---------- ----------- ----------- -----------
(Unaudited)
Income (loss) from
operations $ (86,263)$ (60,248)$ (54,888) $ 586 $ 18,142 $ 95,280 $ 97,369
Equity in losses of
limited partnerships (745,147) (1,103,435) (1,146,270) (249,437) (153,500) (1,010,334) (334,756)
---------- ----------- ----------- ---------- ----------- ----------- -----------
Net loss $ (831,410)$ (1,163,683)$ (1,201,158) $ (248,851) $ (135,358) $ (915,054) $ (237,387)
========== =========== =========== ========== =========== =========== ===========
Net loss allocated to:
General partner $ (8,314)$ (11,637)$ (12,012) $ (2,489) $ (1,354) $ (9,151) $ (2,374)
========== =========== =========== ========== =========== =========== ===========
Limited partners $ (823,096)$ (1,152,046)$ (1,189,146) $ (246,362) $ (134,004) $ (905,903) $ (235,013)
========== =========== =========== ========== =========== =========== ===========
Net loss per limited
partner unit $ (37.41)$ (52.37)$ (54.05) $ (11.20) $ (6.09) $ (41.18) $ (13.01)
========== =========== =========== ========== =========== =========== ===========
Outstanding weighted
limited partner units 22,000 22,000 22,000 22,000 22,000 22,000 18,063
========== =========== =========== ========== =========== =========== ===========
For the Years For the For the Years Ended
Three Months Ended
Ended March 31 March 31 December 31
--------------------------------------- --------------------------- --------------------------
2002 2001 2000 1999 1998 1998 1997
---------- ----------- ----------- ------------ ------------ ---------- ------------
(Unaudited)
Net cash provided by
(used in):
Operating activities $ (10,220) $ 1,392 $ (121,756) $ 75,111 $ 77,854 $ 297,891 $ 94,732
Investing activities (84,046) (410,308) (1,614,046) (431,722) (814,796) (2,534,648) (10,409,130)
Financing activities - - - - 148,448 147,325 12,304,718
---------- ----------- ----------- ------------ ------------ ---------- ------------
Net change in cash and
cash equivalents (94,266) (408,916) (1,735,802) (356,611) (588,494) (2,089,432) 1,990,320
Cash and cash
equivalents, beginning
of period 1,316,217 1,725,133 3,460,935 3,817,546 5,906,978 5,906,978 3,916,658
---------- ----------- ----------- ------------ ------------ ---------- ------------
Cash and cash
equivalents, end of
period $ 1,221,951 $ 1,316,217 $ 1,725,133 $ 3,460,935 $ 5,318,484 $ 3,817,546 $ 5,906,978
========== =========== =========== ============ ============ ========== ============
Low Income Housing Credits Per Unit was as follows for the years ended December 31:
2001 2000 1999 1998 1997
----------- ------------ ----------- ----------- -----------
Federal $ 121 $ 114 $ 104 $ 81 $ 20
State - - - - -
----------- ------------ ----------- ----------- -----------
Total $ 121 $ 114 $ 104 $ 81 $ 20
=========== ============ =========== =========== ===========
9
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Forward Looking Statements
With the exception of the discussion regarding historical information,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and other discussions elsewhere in this Form 10-K contain forward
looking statements. Such statements are based on current expectations subject to
uncertainties and other factors which may involve known and unknown risks that
could cause actual results of operations to differ materially from those
projected or implied. Further, certain forward-looking statements are based upon
assumptions about future events which may not prove to be accurate.
Risks and uncertainties inherent in forward looking statements include, but are
not limited to, our future cash flows and ability to obtain sufficient
financing, level of operating expenses, conditions in the low income housing tax
credit property market and the economy in general, as well as legal proceedings.
Historical results are not necessarily indicative of the operating results for
any future period.
Subsequent written and oral forward looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety by
cautionary statements in this Form 10-K and in other reports we filed with the
Securities and Exchange Commission. The following discussion should be read in
conjunction with the Consolidated Financial Statements and the Notes thereto
included elsewhere in this filing.
Financial Condition
The Partnership's assets at March 31, 2002 consisted primarily of $1,222,000 in
cash and cash equivalents and aggregate investments in the fourteen Local
Limited Partnerships of $13,262,000. Liabilities at March 31, 2002 were $164,000
due to limited partnerships, $18,000 of accrued annual management fees, and
expenses paid by an affiliate of the General Partner or due to the General
Partner or affiliate.
Results of Operations
Year Ended March 31, 2002 Compared to Year Ended March 31, 2001. The
Partnership's net loss for the year ended March 31, 2002 was $(831,000),
reflecting a decrease of $333,000 from the net loss experienced for the year
ended March 31, 2001. The decline in net loss is primarily due to equity in
losses of limited partnerships which decreased by $358,000 to $(745,000) for the
year ended March 31, 2002 from $(1,103,000) for the year ended March 31, 2001,
offset by an increase in loss from operations of $26,000. The decrease in equity
in losses of limited partnerships was mainly due to the increase in occupancy
rate in certain Local Limited Partnerships.
Year Ended March 31, 2001 Compared to Year Ended March 31, 2000. The
Partnership's net loss for the year ended March 31, 2001 was $(1,164,000),
reflecting a decrease of $37,000 from the net loss experienced for the year
ended March 31, 2000. The decline in net loss is primarily due to equity in
losses of limited partnerships which decreased by $43,000 to $(1,103,000) for
the year ended March 31, 2001 from $(1,146,000) for the year ended March 31,
2000, offset by an increase in loss from operations of $5,000. The decrease in
equity in losses of limited partnerships was mainly due to the increase in
occupancy rate in certain Local Limited Partnerships offset by the increased
loss of one Local Limited Partnership which experienced a full year of
operations in 2000 compared with two months of operations in 1999.
In addition, the Partnership experienced a decrease in income of $23,000
resulting from a decrease in cash balance due to capital contributions paid to
Local Limited Partnerships of $410,000. The Partnership also experienced a
decrease in operating expenses paid to third parties of $18,000.
10
Cash Flows
Year Ended March 31, 2002 Compared to Year Ended March 31, 2001. Net cash used
during the year ended March 31, 2002 was $(94,000), compared to net cash used
for the year ended March 31, 2001 of $(409,000). Net cash flows used in
investing activities decreased by $326,000 to $(84,000) for the year ended March
31, 2002 from $(410,000) due primarily to a decrease in capital contributions
paid to Local Limited Partnerships of $324,000. Net cash flows from operating
activities decreased by $11,000 to net cash used in operating activities of
$(10,000) for the year ended March 31, 2001 from net cash provided by operating
activities of $1,000 for the year ended March 31, 2001. No cash was provided by
or used in financing activities for the years ended March 31, 2002 or 2001.
Year Ended March 31, 2001 Compared to Year Ended March 31, 2002. Net cash used
during the year ended March 31, 2001 was $(409,000), compared to net cash used
for the year ended March 31, 2000 of $(1,736,000). Net cash flows from operating
activities increased by $123,000 to net cash provided operating activities of
$1,000 for the year ended March 31, 2001 compared to net cash used by operating
activities of $(122,000) for the year ended March 31, 2000. This increase was
primarily due to a decrease in cash paid to the General Partner for management
fees and other accrued fees and costs of $179,000 offset by a decrease in income
of $23,000, a decrease in cash due from affiliates of $53,000 and an increase in
cash paid to third parties for operating expenses of $18,000. Net cash flows
used in investing activities decreased by $1,204,000 to $(410,000) for the year
ended March 31, 2001 from $(1,614,000) due primarily to a decrease in capital
contributions paid to Local Limited Partnerships of $1,202,000. No cash was
provided by or used in financing activities for the years ended March 31, 2001
or 2000.
The Partnership expects its future cash flows, together with its net available
assets at March 31, 2002, to be sufficient to meet all currently foreseeable
future cash requirements.
New Accounting Pronouncement
- ----------------------------
In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS
144"), which addresses accounting and financial reporting for the impairment or
disposal of long-lived assets. SFAS 144 is effective for fiscal years beginning
after December 15, 2001, and generally, is to be applied prospectively. The
Partnership has not yet completed its evaluation of the impact of SFAS 144 on
its financial position or results of operations.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
NOT APPLICABLE
Item 8. Financial Statements and Supplementary Data
11
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
--------------------------------------------------
To the Partners
WNC Housing Tax Credit Fund V, L.P., Series 4
We have audited the accompanying balance sheets of WNC Housing Tax Credit Fund
V, L.P., Series 4 (a California Limited Partnership) (the "Partnership") as of
March 31, 2002 and 2001, and the related statements of operations, partners'
equity (deficit) and cash flows for the years ended March 31, 2002, 2001 and
2000. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits. A significant portion of the financial
statements of the limited partnerships in which the Partnership is a limited
partner were audited by other auditors whose reports have been furnished to us.
As discussed in Note 2 to the financial statements, the Partnership accounts for
its investments in limited partnerships using the equity method. The portion of
the Partnership's investment in limited partnerships audited by other auditors
represented 80% and 79% of the total assets of the Partnership at March 31, 2002
and 2001. Our opinion, insofar as it relates to the amounts included in the
financial statements for the limited partnerships which were audited by others,
is based solely on the reports of the other auditors.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits and the reports of
the other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and the reports of the other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of WNC Housing Tax Credit Fund V, L.P., Series 4 (a
California Limited Partnership) as of March 31, 2002 and 2001, and the results
of its operations and its cash flows for the years ended March 31, 2002, 2001
and 2000, in conformity with accounting principles generally accepted in the
United States of America.
/s/BDO SEIDMAN, LLP
Orange County, California
June 11, 2002
12
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
BALANCE SHEETS
March 31
-----------------------------------
2002 2001
--------------- ----------------
ASSETS
Cash and cash equivalents $ 1,221,951 $ 1,316,217
Due from affiliate (Note 3) 9,732 9,732
Investments in limited partnerships, net (Notes 2 and 3) 13,261,486 14,075,565
Other assets 574 574
--------------- ----------------
$ 14,493,743 $ 15,402,088
=============== ================
LIABILITIES AND PARTNERS' EQUITY
(DEFICIT)
Liabilities:
Payables to limited partnerships (Note 5) $ 164,475 $ 257,889
Accrued fees and expenses due to General
Partner and affiliates (Note 3) 18,143 1,664
--------------- ----------------
Total liabilities 182,618 259,553
--------------- ----------------
Commitments and contingencies
Partners' equity (deficit)
General partner (75,949) (67,635)
Limited partners (25,000 units authorized,
22,000 units issued and outstanding) 14,387,074 15,210,170
--------------- ----------------
Total partners' equity 14,311,125 15,142,535
--------------- ----------------
$ 14,493,743 $ 15,402,088
=============== ================
See accompanying notes to financial statements
13
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
For The Years
Ended March 31
------------------------------------------------
2002 2001 2000
------------- ------------- --------------
Interest income $ 47,072 $ 78,942 $ 108,385
Reporting fee income 20,255 12,422 6,100
------------- ------------- --------------
Total income 67,327 91,364 114,485
------------- ------------- --------------
Operating expenses:
Amortization (Notes 2 and 3) 59,564 59,564 59,566
Asset management fees
(Note 3) 60,500 60,500 60,500
Other 33,526 31,548 49,307
------------- ------------- --------------
Total operating expenses 153,590 151,612 169,373
------------- ------------- --------------
Income (loss) from operations (86,263) (60,248) (54,888)
Equity in income losses of
limited partnerships (Note 2) (745,147) (1,103,435) (1,146,270)
------------- ------------- --------------
Net loss $ (831,410) $ (1,163,683) $ (1,201,158)
============= ============= ==============
Net loss allocated to:
General partner $ (8,314) $ (11,637) $ (12,012)
============= ============= ==============
Limited partners $ (823,096) $ (1,152,046) $ (1,189,146)
============= ============= ==============
Net loss per limited partner unit $ (37.41) $ (52.37) $ (54.05)
============= ============= ==============
Outstanding weighted limited
partner units 22,000 22,000 22,000
============= ============= ==============
See accompanying notes to financial statements
14
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
For The Years Ended March 31, 2002, 2001 and 2000
General Limited
Partner Partners Total
--------------- --------------- ---------------
Partners' equity (deficit) at March 31, 1999 $ (43,986) $ 17,551,362 $ 17,507,376
Net loss (12,012) (1,189,146) (1,201,158)
--------------- --------------- ---------------
Partners' equity (deficit) at March 31, 2000 (55,998) 16,362,216 16,306,218
Net loss (11,637) (1,152,046) (1,163,683)
--------------- --------------- ---------------
Partners' equity (deficit) at March 31, 2001 (67,635) 15,210,170 15,142,535
Net loss (8,314) (823,096) (831,410)
--------------- --------------- ---------------
Partners' equity (deficit) at March 31, 2002 $ (75,949) $ 14,387,074 $ 14,311,125
=============== =============== ===============
See accompanying notes to financial statements
15
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
For the Years Ended March 31
--------------------------------------------
2002 2001 2000
------------ ------------ ------------
Cash flows from operating activities:
Net loss $ (831,410) $ (1,163,683) $ (1,201,158)
Adjustments to reconcile net
loss to net cash provided by (used in)
operating activities:
Amortization 59,564 59,564 59,566
Equity in losses of limited
partnerships 745,147 1,103,435 1,146,270
Change in due from affiliates - - 52,835
Change in accrued fees and
expenses due to General
Partner and affiliate 16,479 (272) (179,195)
Change in other assets - 2,348 (74)
------------ ------------ ------------
Net cash provided by (used in) operating
activities (10,220) 1,392 (121,756)
------------ ------------ ------------
Cash flows from investing
activities:
Investments in limited
partnerships, net (93,414) (416,901) (1,618,687)
Distributions from limited
partnerships 9,368 6,593 4,641
------------ ------------ ------------
Net cash used in investing
activities (84,046) (410,308) (1,614,046)
------------ ------------ ------------
Net decrease in cash
and cash equivalents (94,266) (408,916) (1,735,802)
Cash and cash equivalents,
beginning of period 1,316,217 1,725,133 3,460,935
------------ ------------ ------------
Cash and cash equivalents, end
of period $ 1,221,951 $ 1,316,217 $ 1,725,133
============ ============ ============
SUPPLEMENTAL
DISCLOSURE OF CASH
FLOW INFORMATION:
Taxes paid $ 800 $ 800 $ 800
============ ============ ============
16
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended March 31, 2002, 2001 and 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Organization
- ------------
WNC Housing Tax Credit Fund V, L.P., Series 4, a California Limited Partnership
(the "Partnership"), was formed on July 26, 1995 under the laws of the state of
California, and commenced operations on July 1, 1996. The Partnership was formed
to invest primarily in other limited partnerships and limited liability
companies (the "Local Limited Partnerships") which own and operate multi-family
housing complexes (the "Housing Complex") that are eligible for low income
housing credits. The local general partners (the "Local General Partners") of
each Local Limited Partnership retain responsibility for maintaining, operating
and managing the Housing Complex.
The general partner is WNC & Associates, Inc. ("WNC") (the "General Partner"), a
California limited partnership. The chairman and president own substantially all
of the outstanding stock of WNC.
The Partnership shall continue in full force and effect until December 31, 2050,
unless terminated prior to that date, pursuant to the partnership agreement or
law.
The financial statements include only activity relating to the business of the
Partnership, and do not give effect to any assets that the partners may have
outside of their interests in the Partnership, or to any obligations, including
income taxes, of the partners.
The partnership agreement authorized the sale of up to 25,000 units at $1,000
per Unit ("Units"). The offering of Units concluded on July 11, 1997 at which
time 22,000 Units representing subscriptions in the amount of $21,914,830, net
of discount of $79,550 for volume purchases and $5,620 for dealer discounts, had
been accepted. The General Partner has a 1% interest in operating profits and
losses, taxable income and losses and in cash available for distribution from
the Partnership and tax credits. The limited partners will be allocated the
remaining 99% of these items in proportion to their respective investments.
After the limited partners have received proceeds from a sale or refinancing
equal to their capital contributions and their return on investment (as defined
in the Partnership Agreement) and the General Partner has received proceeds
equal to its capital contribution and a subordinated disposition fee (as
described in Note 3) from the remainder, any additional sale or refinancing
proceeds will be distributed 90% to the limited partners (in proportion to their
respective investments) and 10% to the General Partner.
17
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
- --------------------------------------------------------------
Risks and Uncertainties
- -----------------------
The Partnership's investments in Local Limited Partnerships are subject to the
risks incident to the management and ownership of low-income housing and to the
management and ownership of multi-unit residential real estate. Some of these
risks are that the low income housing credit could be recaptured and that
neither the Partnership's investments nor the Housing Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes receive government financing or operating subsidies, they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes; difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests; limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations. The Housing Complexes are or will be subject
to mortgage indebtedness. If a Local Limited Partnership does not make its
mortgage payments, the lender could foreclose resulting in a loss of the Housing
Complex and low-income housing credits. As a limited partner of the Local
Limited Partnerships, the Partnership will have very limited rights with respect
to management of the Local Limited Partnerships, and will rely totally on the
Local General Partners of the Local Limited Partnerships for management of the
Local Limited Partnerships. The value of the Partnership's investments will be
subject to changes in national and local economic conditions, including
unemployment conditions, which could adversely impact vacancy levels, rental
payment defaults and operating expenses. This, in turn, could substantially
increase the risk of operating losses for the Housing Complexes and the
Partnership. In addition, each Local Limited Partnership is subject to risks
relating to environmental hazards and natural disasters, which might be
uninsurable. Because the Partnership's operations will depend on these and other
factors beyond the control of the General Partner and the Local General
Partners, there can be no assurance that the anticipated low income housing
credits will be available to Limited Partners.
In addition, Limited Partners are subject to risks in that the rules governing
the low income housing credit are complicated, and the use of credits can be
limited. The only material benefit from an investment in Units may be the low
income housing credits. There are limits in the transferability of Units, and it
is unlikely that a market for Units will develop. All management decisions will
be made by the General Partner.
Method of Accounting for Investments in Limited Partnerships
- ------------------------------------------------------------
The Partnership accounts for its investments in limited partnerships using the
equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the Local Limited Partnership's results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnerships are consistent with those of the Partnership. Costs incurred by the
Partnership in acquiring the investments are capitalized as part of the
investment account and are being amortized over 30 years (see Note 2).
Losses from Local Limited Partnerships for the years ended March 31, 2002, 2001
and 2000 have been recorded by the Partnership based on nine months of reported
results provided by the Local Limited Partnerships and on three months of
results estimated by management of the Partnership. Losses from Local Limited
Partnerships allocated to the Partnership are not recognized to the extent that
the investment balance would be adjusted below zero. As soon as the investment
balance reaches zero, amortization of the related costs of acquiring the
investment are accelerated to the extent of losses available.
Offering Expenses
- -----------------
Offering expenses consist of underwriting commissions, legal fees, printing,
filing and recordation fees, and other costs incurred in connection with selling
limited partnership interests in the Partnership. The General Partner is
obligated to pay all offering and organization costs in excess of 14.5%
(including sales commissions) of the total offering proceeds. Offering expenses
are reflected as a reduction of limited partners' capital and amounted to
$2,960,328 at the end of all periods presented.
18
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES, continued
- -------------------------------------------------------------
Use of Estimates
- ----------------
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could materially differ from those
estimates.
Cash and Cash Equivalents
- -------------------------
The Partnership considers all highly liquid investments with remaining
maturities of three months or less when purchased to be cash equivalents. As of
March 31, 2002 and 2001, the Partnership had cash equivalents of $0 and
$840,000, respectively.
Concentration of Credit Risk
- ----------------------------
At March 31, 2002 and 2001, the Partnership maintained cash balances at a
certain financial institution in excess of the federally insured maximum.
Net Loss Per Limited Partner Unit
- ---------------------------------
Net loss per limited partner unit is calculated pursuant to Statement of
Financial Accounting Standards No. 128, Earnings Per Share. Net loss per unit
includes no dilution and is computed by dividing loss available to limited
partners by the weighted average number of units outstanding during the period.
Calculation of diluted net loss per unit is not required.
Reporting Comprehensive Income
- ------------------------------
The Statement of Financial Accounting Standards ("SFAS") No. 130, Reporting
Comprehensive Income established standards for the reporting and display of
comprehensive income (loss) and its components in a full set of general-purpose
financial statements. The Partnership had no items of other comprehensive income
during the years ended March 31, 2002, 2001 and 2000, as defined by SFAS No.
130.
New Accounting Pronouncement
- ----------------------------
In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS
144"), which addresses accounting and financial reporting for the impairment or
disposal of long-lived assets. SFAS 144 is effective for fiscal years beginning
after December 15, 2001, and generally, is to be applied prospectively. The
Partnership has not yet completed its evaluation of the impact of SFAS 144 on
its financial position or results of operations.
Reclassification
- ----------------
Certain prior year balances have been reclassified to conform to 2002
presentation.
19
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
- --------------------------------------------
As of the periods presented, the Partnership has acquired limited partnership
interests in 14 Local Limited Partnerships, each of which owns one Housing
Complex consisting of an aggregate of 785 apartment units. As of March 31, 2002
construction or rehabilitation of all of the Housing Complexes was complete. The
respective general partners of the Local Limited Partnerships manage the
day-to-day operations of the entities. Significant Local Limited Partnership
business decisions require approval from the Partnership. The Partnership, as a
limited partner, is generally entitled to approximately 99%, as specified in the
Local Limited Partnership agreements, of the operating profits and losses,
taxable income and losses and tax credits of the Local Limited Partnerships,
except for one of the investments in which it is entitled to 49.5% of such
amounts.
The Partnership's investments in limited partnerships as reflected in the
balance sheets at March 31, 2002 and 2001 are approximately $1,653,000 and
$1,739,000, respectively, greater than the Partnership's equity at the preceding
December 31 as shown in the Local Limited Partnerships' combined financial
statements presented below. This difference is primarily due to acquisition,
selection, and other costs related to the acquisition of the investments which
have been capitalized in the Partnership's investment account and to capital
contributions payable to the limited partnerships which were netted against
partner capital in the Local Limited Partnerships' financial statements (see
Note 5). The Partnership's investment is also lower than the Partnership's
equity as shown in the Local Limited Partnership's combined financial statements
due to the estimated losses recorded by the Partnership for the three month
period ended March 31.
Equity in losses of the Local Limited Partnerships is recognized in the
financial statements until the related investment account is reduced to a zero
balance. Losses incurred after the investment account is reduced to zero are not
recognized. If the Local Limited Partnerships report net income in future years,
the Partnership will resume applying the equity method only after its share of
such net income equals the share of net losses not recognized during the
period(s) the equity method was suspended.
Distributions received from Local Limited Partnerships are accounted for as a
reduction of the investment balance. Distributions received after the investment
has reached zero are recognized as income. As of March 31, 2002, no investment
accounts in Local Limited Partnerships had reached a zero balance.
The following is a summary of the equity method activity of the investments in
limited partnerships for the periods presented:
For the Years Ended March 31
-----------------------------------------------
2002 2001 2000
------------- ------------- --------------
Investments per balance sheet, beginning of period $ 14,075,565 $ 15,243,007 $ 15,345,027
Capital contributions paid, net - - 766,262
Capital contributions payable - - 342,195
Tax credit adjustment - 2,151 -
Distributions received (9,368) (6,594) (4,641)
Equity in losses of limited partnerships (745,147) (1,103,435) (1,146,270)
Amortization of capitalized acquisition fees and costs (59,564) (59,564) (59,566)
------------- ------------- --------------
Investments in limited partnerships, end of period $ 13,261,486 $ 14,075,565 $ 15,243,007
============= ============= ==============
20
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
- -------------------------------------------------------
The financial information from the individual financial statements of the Local
Limited Partnerships include rental and interest subsidies. Rental subsidies are
included in total revenues and interest subsidies are generally netted in
interest expense. Approximate combined condensed financial information from the
individual financial statements of the individual financial statements of the
Local Limited Partnerships as of December 31 and for the years then ended is as
follows:
COMBINED CONDENSED BALANCE SHEETS
2001 2000
--------------- ---------------
ASSETS
Land $ 2,465,000 $ 2,465,000
Buildings and improvements, net of accumulated depreciation for
2001 and 2000 of $4,744,000 and $3,543,000, respectively 33,460,000 34,641,000
Other assets 2,220,000 2,096,000
--------------- ---------------
$ 38,145,000 $ 39,202,000
=============== ===============
LIABILITIES
Mortgage and construction loans payable $ 19,409,000 $ 19,581,000
Due to related parties 1,858,000 2,123,000
Other liabilities 903,000 745,000
--------------- ---------------
22,170,000 22,449,000
--------------- ---------------
PARTNERS' CAPITAL
WNC Housing Tax Credit Fund V, L.P., Series 4 11,608,000 12,337,000
WNC Housing Tax Credit Fund V, L.P., Series 3 2,222,000 2,272,000
Other partners 2,145,000 2,144,000
--------------- ---------------
15,975,000 16,753,000
--------------- ---------------
$ 38,145,000 $ 39,202,000
=============== ===============
21
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
- -------------------------------------------------------
COMBINED CONDENSED STATEMENTS OF OPERATIONS
2001 2000 1999
--------------- --------------- ---------------
Revenues $ 3,446,000 $ 3,139,000 $ 2,716,000
--------------- --------------- ---------------
Expenses:
Operating expenses 2,128,000 2,117,000 1,754,000
Interest expense 941,000 953,000 988,000
Depreciation and amortization 1,252,000 1,267,000 1,160,000
--------------- --------------- ---------------
Total expenses 4,321,000 4,337,000 3,902,000
--------------- --------------- ---------------
Net loss $ (875,000) $ (1,198,000) $ (1,186,000)
=============== =============== ===============
Net loss allocable to the Partnership $ (818,000) $ (1,110,000) $ (1,137,000)
=============== =============== ===============
Net loss recorded by the Partnership $ (745,000) $ (1,103,000) $ (1,137,000)
=============== =============== ===============
Certain Local Limited Partnerships have incurred significant operating losses
and have working capital deficiencies. In the event these Local Limited
Partnerships continue to incur significant operating losses, additional capital
contributions by the Partnership and/or the Local General Partner may be
required to sustain the operations of such Local Limited Partnerships. If
additional capital contributions are not made when they are required, the
Partnership's investment in certain of such Local Limited Partnerships could be
impaired, and the loss and recapture of the related tax credits could occur.
NOTE 3 - RELATED PARTY TRANSACTIONS
- -----------------------------------
As of March 31, 2002 and 2001, due from affiliate consists of an advance to a
certain Local Limited Partnership for operations.
Under the terms of the Partnership Agreement, the Partnership has paid or is
obligated to the General Partner or their affiliates for the following items:
Acquisition fees of up to 7.5% of the gross proceeds from the sale of
Units as compensation for services rendered in connection with the
acquisition of interests in Local Limited Partnerships. As of March
31, 2002 and 2001, the Partnership incurred acquisition fees of
$1,630,375. Accumulated amortization of these capitalized costs was
$270,605 and $216,261 as of March 31, 2002 and 2001, respectively.
Reimbursement of costs incurred by the General Partner in connection
with the acquisition of interests in Local Limited Partnerships. These
reimbursements have not exceeded 1% of the gross proceeds. As of March
31, 2002 and 2001, the Partnership incurred acquisition costs of
$156,589, which have been included in investments in limited
partnerships. Accumulated amortization was $24,560 and $19,340 as of
March 31, 2002 and 2001, respectively.
22
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 3 - RELATED PARTY TRANSACTIONS, continued
- ----------------------------------------------
An annual asset management fee equal to the greater amount of (i)
$2,000 for each housing complex, or (ii) 0.275% of the gross proceeds.
In either case, the fee will be decreased or increased annually based
on changes in the Consumer Price Index. However, in no event will the
maximum amount exceed 0.2% of the invested assets (defined as the
Partnership's capital contributions plus reserves of the Partnership
of up to 5% of gross proceeds plus its allocable percentage of the
mortgage debt encumbering the housing complexes) of the Local Limited
Partnerships. Management fees of $60,500 were incurred for each of the
years ended March 31, 2002, 2001 and 2000, of which $45,375 , $60,500
and $176,880 were paid during the years ended March 31, 2002, 2001 and
2000, respectively.
A subordinated disposition fee in an amount equal to 1% of the sales
price of real estate sold. Payment of this fee is subordinated to the
limited partners receiving a preferred return of 14% through December
31, 2006 and 6% thereafter (as defined in the Partnership Agreement)
and is payable only if the General Partner or its affiliates render
services in the sales effort.
The accrued fees and expenses due to General Partner and affiliates consist of
the following at:
March 31
--------------------------------
2002 2001
-------------- --------------
Asset management fees payable $ 16,561 $ 1,436
Advances from WNC 1,582 228
-------------- --------------
Total $ 18,143 $ 1,664
============== ==============
NOTE 4 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
- ----------------------------------------------------
The following is a summary of the quarterly operations for the years ended March
31, 2002 and 2001:
June 30 September 30 December 31 March 31
--------------- --------------- --------------- ---------------
2002
----
Income $ 14,000 $ 18,000 $ 9,000 $ 26,000
Operating expenses (35,000) (43,000) (38,000) (37,000)
Equity in losses of limited
partnerships (278,000) (278,000) (278,000) 89,000
Net loss (299,000) (302,000) (307,000) 77,000
Loss available to limited partners (296,000) (299,000) (304,000) 76,000
Loss per limited partner unit (13) (14) (14) 3
23
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For The Years Ended March 31, 2002, 2001 and 2000,
NOTE 4 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED), continued
- ---------------------------------------------------------------
June 30 September 30 December 31 March 31
--------------- --------------- --------------- ---------------
2001
----
Income $ 32,000 $ 20,000 $ 14,000 $ 25,000
Operating expenses (37,000) (34,000) (45,000) (36,000)
Equity in losses of limited
partnerships (284,000) (284,000) (284,000) (251,000)
Net loss (289,000) (298,000) (315,000) (261,000)
Loss available to limited partners (286,000) (295,000) (312,000) (259,000)
Loss available per limited
partner unit (13) (13) (14) (12)
NOTE 5 - PAYABLES TO LIMITED PARTNERSHIPS
- -----------------------------------------
Payables to limited partnerships represent amounts which are due at various
times based on conditions specified in the limited partnership agreements. These
contributions are payable in installments and are generally due upon the limited
partnerships achieving certain development and operating benchmarks (generally
within two years of the Partnership's initial investment).
NOTE 6 - INCOME TAXES
- ---------------------
No provision for income taxes has been recorded in the accompanying financial
statements as any liability for income taxes is the obligation of the partners
of the Partnership.
24
Item 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure
NOT APPLICABLE
PART III.
- ---------
Item 10. Directors and Executive Officers of the Registrant
The Partnership has no directors or executive officers of its own. The following
biographical information is presented for the directors and executive officers
of Associates which has principal responsibility for the Partnership's affairs.
Directors and Executive Officers of WNC & Associates, Inc.
The directors of WNC & Associates, Inc. are Wilfred N. Cooper, Sr., who serves
as Chairman of the Board, David N. Shafer, Wilfred N. Cooper, Jr. and Kay L.
Cooper. The principal shareholder of WNC & Associates, Inc. is a trust
established by Wilfred N. Cooper, Sr.
Wilfred N. Cooper, Sr., age 71, is the founder, Chairman, Chief Executive
Officer and a Director of WNC & Associates, Inc., a Director of WNC Capital
Corporation, and a general partner in some of the programs previously sponsored
by the Sponsor. Mr. Cooper has been involved in real estate investment and
acquisition activities since 1968. Previously, during 1970 and 1971, he was
founder and principal of Creative Equity Development Corporation, a predecessor
of WNC & Associates, Inc., and of Creative Equity Corporation, a real estate
investment firm. For 12 years prior to that, Mr. Cooper was employed by Rockwell
International Corporation, last serving as its manager of housing and urban
developments where he had responsibility for factory-built housing evaluation
and project management in urban planning and development. Mr. Cooper is a
Director of the National Association of Home Builders (NAHB) and a National
Trustee for NAHB's Political Action Committee, a Director of the National
Housing Conference (NHC) and a member of NHC's Executive Committee and a
Director of the National Multi-Housing Council (NMHC). Mr. Cooper graduated from
Pomona College in 1956 with a Bachelor of Arts degree.
Wilfred N. Cooper, Jr., age 39, is President, Chief Operating Officer, a
Director and a member of the Acquisition Committee of WNC & Associates, Inc. He
is President of, and a registered principal with, WNC Capital Corporation, a
member firm of the NASD, and is a Director of WNC Management, Inc. He has been
involved in investment and acquisition activities with respect to real estate
since he joined the Sponsor in 1988. Prior to this, he served as Government
Affairs Assistant with Honda North America in Washington, D.C. Mr. Cooper is a
member of the Advisory Board for LIHC Monthly Report, a Director of NMHC and an
Alternate Director of NAHB. He graduated from The American University in 1985
with a Bachelor of Arts degree.
David N. Shafer, age 50, is Executive Vice President, a Director, General
Counsel, and a member of the Acquisition Committee of WNC & Associates, Inc.,
and a Director and Secretary of WNC Management, Inc. Mr. Shafer has been
involved in real estate investment and acquisition activities since 1984. Prior
to joining the Sponsor in 1990, he was practicing law with a specialty in real
estate and taxation. Mr. Shafer is a Director and President of the California
Council of Affordable Housing and a member of the State Bar of California. Mr.
Shafer graduated from the University of California at Santa Barbara in 1978 with
a Bachelor of Arts degree, from the New England School of Law in 1983 with a
Juris Doctor degree (cum laude) and from the University of San Diego in 1986
with a Master of Law degree in Taxation.
Thomas J. Riha, age 47, became Chief Financial Officer effective January 2001.
Prior to his appointment as Chief Financial Officer he was Vice President -
Asset Management and a member of the Acquisition Committee of WNC & Associates,
Inc. and a Director and Chief Executive Officer of WNC Management, Inc. Mr. Riha
has been involved in acquisition and investment activities with respect to real
estate since 1979. Prior to joining the Sponsor in 1994, Mr. Riha was employed
by Trust Realty Advisor, a real estate acquisition and management company, last
serving as Vice President - Operations. Mr. Riha graduated from the California
State University, Fullerton in 1977 with a Bachelor of Arts degree (cum laude)
in Business Administration with a concentration in Accounting and is a Certified
Public Accountant and a member of the American Institute of Certified Public
Accountants.
25
Sy P. Garban, age 56, is Vice President - National Sales of WNC & Associates,
Inc. and has been employed by the Sponsor since 1989. Mr. Garban has been
involved in real estate investment activities since 1978. Prior to joining the
Sponsor he served as Executive Vice President of MRW, Inc., a real estate
development and management firm. Mr. Garban is a member of the International
Association of Financial Planners. He graduated from Michigan State University
in 1967 with a Bachelor of Science degree in Business Administration.
Michael J. Gaber, age 36, is Vice President - Acquisitions and a member of the
Acquisitions Committee of WNC & Associates, Inc. Mr. Gaber has been involved in
real estate acquisition, valuation and investment activities since 1989 and has
been employed with WNC since 1997. Prior to joining WNC & Associates, Inc., he
was involved in the valuation and classification of major assets, restructuring
of debt and analysis of real estate taxes with the H.F. Ahmanson company, parent
to Home Savings of America. Mr. Gaber graduated from the California State
University, Fullerton in 1991 with a Bachelor of Science degree in Business
Administration - Finance.
David Turek, age 47 finance activities since 1976 and has been employed by WNC &
Associates, Inc. since 1996. From 1995 to 1996, Mr. Turek served as a consultant
for a national Tax Credit sponsor where he was responsible for on-site
feasibility studies and due diligence analyses of Tax Credit properties. From
1990 to 1995, he was involved in the development of conventional and tax credit
multi-family housing. He is a Director with the Texas Council for Affordable
Rural Housing and graduated from Southern Methodist University in 1976 with a
Bachelor of Business Administration degree.
Kay L. Cooper, age 65, is a Director of WNC & Associates, Inc. Mrs. Cooper was
the founder and sole proprietor of Agate 108, a manufacturer and retailer of
home accessory products, from 1975 until 1998. She is the wife of Wilfred N.
Cooper, Sr., and the mother of Wilfred N. Cooper, Jr. Ms. Cooper graduated from
the University of Southern California in 1958 with a Bachelor of Science degree.
Item 11. Executive Compensation
The Partnership has no officers, employees, or directors. However, under the
terms of the Partnership Agreement the Partnership is obligated to the General
Partner or Associates for the following fees:
(a) Acquisition Fees. Acquisition fees in an amount equal to 7.5% of the gross
proceeds of the Partnership's Offering ("Gross Proceeds") allocable to each
of the Local Limited Partnerships. As of March 31, 2002, 2001 and 2000, the
aggregate amount of acquisition fees paid or accrued was approximately
$1,630,000.
(b) Annual Asset Management Fee. An annual asset management fee of the greater
of (i) $2,000 per multi-family housing complex or (ii) 0.275% of Gross
Proceeds. The base fee amount will be adjusted annually based on changes in
the Consumer Price Index, however in no event will the annual asset
management fee exceed 0.2% of Invested Assets. "Invested Assets" means the
sum of the Partnership's Investment in Local Limited Partnerships and the
Partnership's allocable share of the amount of indebtedness related to the
Housing Complexes. Asset management fees of $60,500 were incurred for each
of the years ended March 31, 2002, 2001 and 2000, of which $45,375, $60,500
and $176,880 were paid during the years ended March 31, 2002, 2001 and
2000, respectively.
(c) Subordinated Disposition Fee. A subordinated disposition fee in an amount
equal to 1% of the sale price received in connection with the sale or
disposition of a Housing Complex or Local Limited Partnership Interest.
Subordinated disposition fees will be subordinated to the prior return of
the Limited Partners' capital contributions and payment of the Return on
Investment to the Limited Partners. "Return on Investment" means an annual,
cumulative but not compounded, "return" to the Limited Partners (including
Low Income Housing Credits) as a class on their adjusted capital
contributions commencing for each Limited Partner on the last day of the
calendar quarter during which the Limited Partner's capital contribution is
received by the Partnership, calculated at the following rates: (i) 14%
through December 31, 2006, and (ii) 6% for the balance of the Partnerships
term. No disposition fees have been paid.
26
(d) Acquisition Expense. Acquisition expenses are reimbursed to the General
Partner for expenses associated with the acquisition of Local Limited
Partnerships. The reimbursements will not exceed 1% of the "Gross
Proceeds". As of March 31, 2002, 2001 and 2000 the Partnership had incurred
acquisition expense reimbursements of $156,589.
(e) Interest in Partnership. The General Partner will receive 1% of the Low
Income Housing Credits. The General Partner was allocated Low Income
Housing Credits of $26,875, $25,684 and $23,177 for the years ended
December 31, 2001, 2000 and 1999. The General Partners are also entitled to
receive 1% of cash distributions. There were no distributions of cash to
the General Partner during the years ended March 31, 2002, 2001 and 2000.
Item 12. Security Ownership of Certain Beneficial Owners and Management
(a) Security Ownership of Certain Beneficial Owners
-----------------------------------------------
No person is known to own beneficially in excess of 5% of the outstanding
Units.
(b) Security Ownership of Management
--------------------------------
Neither the General Partner, its affiliates, nor any of the officers or
directors of the General Partner or its affiliates own directly or
beneficially any Units in the Partnership.
(c) Changes in Control
------------------
The management and control of the General Partner may be changed at any
time in accordance with its organizational documents, without the consent
or approval of the Limited Partners. In addition, the Partnership Agreement
provides for the admission of one or more additional and successor General
Partners in certain circumstances.
First, with the consent of any other General Partners and a
majority-in-interest of the Limited Partners, any General Partner may
designate one or more persons to be successor or additional General
Partners. In addition, any General Partner may, without the consent of any
other General Partner or the Limited Partners, (i) substitute in its stead
as General Partner any entity which has, by merger, consolidation or
otherwise, acquired substantially all of its assets, stock or other
evidence of equity interest and continued its business, or (ii) cause to be
admitted to the Partnership an additional General Partner or Partners if it
deems such admission to be necessary or desirable so that the Partnership
will be classified a partnership for Federal income tax purposes. Finally,
a majority-in-interest of the Limited Partners may at any time remove the
General Partner of the Partnership and elect a successor General Partner.
Item 13. Certain Relationships and Related Transactions
The General Partner manages all of the Partnership's affairs. The transactions
with the General Partner are primarily in the form of fees paid by the
Partnership for services rendered to the Partnership and the General Partner's
interest in the Partnership, as discussed in Item 11 and in the notes to the
Partnership's financial statements.
27
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
Financial Statements
(a)(1) Financial statements included in Part II hereof:
------------------------------------------------
Report of Independent Certified Public Accountants
Balance Sheets, March 31, 2002 and 2001
Statements of Operations for the years ended March 31, 2002, 2001
and 2000
Statements of Partners' Equity (Deficit)for the years ended
March 31, 2002, 2001 and 2000
Statements of Cash Flows for the years ended March 31, 2002,
2001 and 2000
Notes to Financial Statements
(a)(2) Financial statement schedules included in Part IV hereof:
--------------------------------------------------------
Report of Independent Certified Public Accountants on Financial
Statement Schedules
Schedule III - Real Estate Owned by Local Limited
Partnerships
(b) Reports on Form 8-K.
-------------------
1. NONE
(c) Exhibits.
---------
3.1 Articles of incorporation and by-laws: The registrant is not
incorporated. The Partnership Agreement is included as Exhibit 2.1 to
the Form 8-A12G dated May 5, 1996.
3.2 First Amendment to Agreement of Limited Partnership included as Exhibit
2.2 to the Form 8-A12G dated May 5, 1996.
10.1 Amended and Restated Agreement of Limited Partnership of Blessed Rock
of El Monte filed as exhibit 10.1 to Form 8-K Current Report dated
September 19, 1996 is herein incorporated by reference as exhibit 10.1.
10.2 Agreement of Limited Partnership of Crescent City Apartments filed as
exhibit 10.1 to Form 8-K Current Report dated September 25, 1996 is
herein incorporated by reference as exhibit 10.2.
10.3 Agreement of Limited Partnership of Ashford Place, a Limited
Partnership filed as exhibit 10.1 to Form 8-K Current Report dated
January 27, 1997 is herein incorporated by reference as exhibit 10.3
10.4 Amended and Restated Agreement of Limited Partnership of Lamar Plaza
Apts., L. P. filed as exhibit 10.2 to Form 8-K Current Report dated
January 27, 1997 is herein incorporated by reference as exhibit 10.4.
10.5 Amended and Restated Agreement of Limited Partnership of Woodland ,
Ltd. filed as exhibit 10.3 to Form 8-K Current Report dated January 27,
1997 is herein incorporated by reference as exhibit 10.5.
10.6 Amended and Restated Agreement of Limited Partnership of Mesa Verde
Apartments Limited Partnership filed as exhibit 10.1 to Form 8-K
Current Report dated March 6, 1997 is herein incorporated by reference
as exhibit 10.6.
10.7 Amended and Restated Agreement of Limited Partnership of Hilltop
Apartments, Ltd. filed as exhibit 10.1 to Form 8-K Current Report dated
April 27, 1997 is herein incorporated by reference as exhibit 10.7.
28
10.8 Amended and Restated Agreement of Limited Partnership of Mountain Vista
Associates Limited Partnership filed as exhibit 10.1 to Form 8-K
Current Report dated May 27, 1997 is herein incorporated by reference
as exhibit 10.8.
10.9 Amended and Restated Agreement of Limited Partnership of Belen Vista
Associates Limited Partnership filed as exhibit 10.1 to Form 8-K
Current Report dated May 5, 1997 is here in incorporated by reference
as exhibit 10.9.
10.10 Amended and Restated Agreement of Limited Partnership of Greyhound
Associates I, Limited Partnership filed as exhibit 10.1 to Form 8-K
Current Report dated May 20, 1997 is herein incorporated by reference
as exhibit 10.10.
20.1 Financial Statements of Ashford Place, as of and for the years ended
December 31, 2001 and 2000 together with Independent Auditors Report
thereon; filed as exhibit 20.1 on Form 10-K dated March 31, 2002; a
significant subsidiary of the Partnership.
(d) Financial statement schedules follow, as set forth in subsection
-------------------------------------------
(a)(2) hereof.
29
Report of Independent Certified Public Accountants on Financial
Statement Schedules
To the Partners
WNC Housing Tax Credit Fund V, L.P., Series 4
The audits referred to in our report dated June 11, 2002 relating to the 2002,
2001 and 2000 financial statements of WNC Housing Tax Credit Fund V, L.P.,
Series 4 (the "Partnership"), which are contained in Item 8 of this Form 10-K,
included the audit of the accompanying financial statement schedules. The
financial statement schedules are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statement schedules based upon our audits.
In our opinion, such financial statement schedules present fairly, in all
material respects, the financial information set forth therein.
/S/BDO SEIDMAN, LLP
Orange County, California
June 11, 2002
30
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
-------------------------------------- --------------------------------------------------
As of March 31, 2002 As of December 31, 2001
-------------------------------------- --------------------------------------------------
Partnership's
Total Investment Amount of Encumbrances
in Local Limited Investment of Local Limited Property and Accumulated Net Book
Partnership Name Location Partnerships Paid to Date Partnerships Equipment Depreciation Value
- ------------------------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited Shawnee,
Partnership Oklahoma $ 2,317,000 $ 2,317,000 $ 2,280,000 $ 5,066,000 $ (783,000) $ 4,283,000
Belen Vista Associates, Belen,
Limited Partnership New Mexico 416,000 416,000 1,527,000 1,795,000 (323,000) 1,472,000
Blessed Rock El Monte,
of El Monte California 2,511,000 2,511,000 3,721,000 9,300,000 (901,000) 8,399,000
Bolivar Plaza Bolivar,
Apartments Missouri 1,181,000 1,181,000 556,000 2,142,000 (76,000) 2,066,000
Cleveland Coffeyville,
Apartments L.P. Kansas 515,000 431,000 1,595,000 1,643,000 (176,000) 1,467,000
Crescent City Crescent City,
Apartments California 1,166,000 1,166,000 1,960,000 3,118,000 (610,000) 2,508,000
D. Hilltop Prairie View,
Apartments Ltd. Texas 101,000 101,000 464,000 587,000 (76,000) 511,000
Greyhound Windsor,
Associates I, L.P. Missouri 642,000 642,000 593,000 1,362,000 (136,000) 1,226,000
Lamar Plaza Apts., L.P. Lamar, Missouri 738,000 738,000 808,000 1,696,000 (178,000) 1,518,000
Mesa Verde Apartments Limited Roswell,
Partnership New Mexico 3,941,000 3,941,000 2,160,000 6,298,000 (748,000) 5,550,000
Mountain Vista
Associates Limited Los Alamos, New
Partnership Mexico 315,000 315,000 1,433,000 1,608,000 (243,000) 1,365,000
North Central New York,
Limited Partnership New York 751,000 751,000 454,000 2,388,000 (128,000) 2,260,000
31
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
-------------------------------------- --------------------------------------------------
As of March 31, 2002 As of December 31, 2001
------------------------------------- --------------------------------------------------
Partnership's
Total Investment Amount of Encumbrances
in Local Limited Investment of Local Limited Property and Accumulated Net Book
Partnership Name Location Partnerships Paid to Date Partnerships Equipment Depreciation Value
- ------------------------------------------------------------------------------------------------------------------------------------
Woodland, Marion,
Ltd. Alabama 1,288,000 1,288,000 1,292,000 2,537,000 (297,000) 2,240,000
Wynwood Place, Limited Raleigh, North
Partnership Carolina 534,000 454,000 566,000 1,129,000 (69,000) 1,060,000
----------- ------------ ------------- ------------- ------------- ------------
$16,416,000 $ 16,252,000 $ 19,409,000 $ 40,669,000 $ (4,744,000) $ 35,925,000
=========== ============ ============= ============= ============= ============
32
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2002
----------------------------------------------------------------------------------------
For the year ended December 31, 2001
----------------------------------------------------------------------------------------
Year
Investment Estimated Useful
Partnership Name Rental Income Net(Loss) Income Acquired Status Life (Years)
- --------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited
Partnership $ 447,000 $ (174,000) 1996 Completed 40
Belen Vista Associates,
Limited Partnership 327,000 (1,000) 1997 Completed 27.5
Blessed Rock of
El Monte 742,000 (103,000) 1996 Completed 40
Bolivar Plaza Apartments 101,000 (21,000) 2000 Completed 30
Cleveland Apartments L.P. 194,000 (61,000) 1998 Completed 27.5
Crescent City Apartments 171,000 146,000 1996 Completed 27.5
D. Hilltop Apartments Ltd. 71,000 (15,000) 1997 Completed 30
Greyhound Associates I,
L.P. 77,000 (29,000) 1997 Completed 40
Lamar Plaza Apts., L.P. 90,000 (9,000) 1997 Completed 40
Mesa Verde Apartments
Limited Partnership 509,000 (143,000) 1997 Completed 40
Mountain Vista Associates
Limited Partnership 244,000 (8,000) 1997 Completed 27.5
North Central Limited
Partnership 113,000 (68,000) 1998 Completed 40
Woodland, Ltd. 93,000 (65,000) 1997 Completed 40
Wynwood Place, Limited
Partnership 120,000 (32,000) 1998 Completed 50
------------ -----------
$ 3,299,000 $ (875,000)
============ ===========
33
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
-------------------------------------- --------------------------------------------------
As of March 31, 2001 As of December 31, 2000
-------------------------------------- --------------------------------------------------
Partnership's
Total Investment Amount of Encumbrances
in Local Limited Investment of Local Limited Property and Accumulated Net Book
Partnership Name Location Partnerships Paid to Date Partnerships Equipment Depreciation Value
- ------------------------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited Shawnee,
Partnership Oklahoma $ 2,317,000 $ 2,317,000 $ 2,305,000 $ 5,065,000 $ 564,000 $ 4,501,000
Belen Vista Associates, Belen,
Limited Partnership New Mexico 416,000 416,000 1,532,000 1,790,000 256,000 1,534,000
Blessed Rock El Monte,
of El Monte California 2,511,000 2,511,000 3,754,000 9,300,000 695,000 8,605,000
Bolivar Plaza Bolivar,
Apartments Missouri 1,181,000 1,087,000 573,000 2,141,000 25,000 2,116,000
Cleveland Coffeyville,
Apartments L.P. Kansas 515,000 431,000 1,602,000 1,643,000 117,000 1,526,000
Crescent City Crescent City,
Apartments California 1,166,000 1,166,000 1,960,000 3,119,000 497,000 2,622,000
D. Hilltop Prairie View,
Apartments Ltd. Texas 101,000 101,000 466,000 585,000 58,000 527,000
Greyhound Windsor,
Associates I, L.P. Missouri 642,000 642,000 607,000 1,362,000 102,000 1,260,000
Lamar Plaza Apts., L.P. Lamar, Missouri 738,000 738,000 840,000 1,697,000 138,000 1,559,000
Mesa Verde Apartments Limited Roswell,
Partnership New Mexico 3,941,000 3,941,000 2,174,000 6,289,000 558,000 5,731,000
Mountain Vista
Associates Limited Los Alamos, New
Partnership Mexico 315,000 315,000 1,437,000 1,606,000 192,000 1,414,000
North Central New York,
Limited Partnership New York 751,000 751,000 463,000 2,389,000 69,000 2,320,000
34
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
-------------------------------------- --------------------------------------------------
As of March 31, 2001 As of December 31, 2000
------------------------------------- --------------------------------------------------
Partnership's
Total Investment Amount of Encumbrances
in Local Limited Investment of Local Limited Property and Accumulated Net Book
Partnership Name Location Partnerships Paid to Date Partnerships Equipment Depreciation Value
- ------------------------------------------------------------------------------------------------------------------------------------
Woodland, Marion,
Ltd. Alabama 1,288,000 1,288,000 1,294,000 2,535,000 229,000 2,306,000
Wynwood Place, Limited Raleigh, North
Partnership Carolina 534,000 454,000 574,000 1,128,000 43,000 1,085,000
----------- ------------ ------------- ------------- ------------- ------------
$16,416,000 $ 16,158,000 $ 19,581,000 $ 40,649,000 $ 3,543,000 $ 37,106,000
=========== ============ ============= ============= ============= ============
35
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2001
----------------------------------------------------------------------------------------
For the year ended December 31, 2000
----------------------------------------------------------------------------------------
Year
Investment Estimated Useful
Partnership Name Rental Income Net(Loss) Income Acquired Status Life (Years)
- --------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited
Partnership $ 398,000 $ (184,000) 1996 Completed 40
Belen Vista Associates,
Limited Partnership 324,000 (12,000) 1997 Completed 27.5
Blessed Rock of
El Monte 693,000 (160,000) 1996 Completed 40
Under
Bolivar Plaza Apartments 33,000 (40,000) 2000 2001 Construction
Cleveland Apartments L.P. 139,000 (117,000) 1998 Completed 27.5
Crescent City Apartments 174,000 (142,000) 1996 Completed 27.5
D. Hilltop Apartments Ltd. 71,000 (3,000) 1997 Completed 30
Greyhound Associates I,
L.P. 76,000 (30,000) 1997 Completed 40
Lamar Plaza Apts., L.P. 78,000 (18,000) 1997 Completed 40
Mesa Verde Apartments
Limited Partnership 460,000 (271,000) 1997 Completed 40
Mountain Vista Associates
Limited Partnership 227,000 2,000 1997 Completed 27.5
North Central Limited
Partnership 111,000 (125,000) 1998 Completed 40
Woodland, Ltd. 87,000 (71,000) 1997 Completed 40
Wynwood Place, Limited
Partnership 127,000 (27,000) 1998 Completed 50
------------ -----------
$ 2,998,000 $ (1,198,000)
============ ===========
36
>
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
-------------------------------------- --------------------------------------------------
As of March 31, 2000 As of December 31, 1999
-------------------------------------- --------------------------------------------------
Partnership's
Total Investment Amount of Encumbrances
in Local Limited Investment of Local Limited Property and Accumulated Net Book
Partnership Name Location Partnerships Paid to Date Partnerships Equipment Depreciation Value
- ------------------------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited Shawnee,
Partnership Oklahoma $ 2,317,000 $ 2,317,000 $ 2,329,000 $ 5,065,000 $ 346,000 $ 4,719,000
Belen Vista Associates, Belen,
Limited Partnership New Mexico 416,000 416,000 1,536,000 1,790,000 188,000 1,602,000
Blessed Rock El Monte,
of El Monte California 2,511,000 2,511,000 3,784,000 9,291,000 489,000 8,802,000
Bolivar Plaza Bolivar,
Apartments Missouri 1,181,000 839,000 - 913,000 - 913,000
Cleveland Coffeyville,
Apartments L.P. Kansas 516,000 422,000 1,541,000 1,643,000 58,000 1,585,000
Crescent City Crescent City,
Apartments California 1,134,000 1,133,000 1,960,000 3,115,000 383,000 2,732,000
D. Hilltop Prairie View,
Apartments Ltd. Texas 102,000 102,000 468,000 585,000 40,000 545,000
Greyhound Windsor,
Associates I, L.P. Missouri 642,000 642,000 620,000 1,362,000 68,000 1,294,000
Lamar Plaza Apts., L.P. Lamar, Missouri 738,000 738,000 846,000 1,697,000 97,000 1,600,000
Mesa Verde Apartments Limited Roswell,
Partnership New Mexico 3,941,000 3,846,000 2,410,000 6,289,000 369,000 5,920,000
Mountain Vista
Associates Limited Los Alamos, New
Partnership Mexico 315,000 315,000 1,440,000 1,606,000 141,000 1,465,000
North Central New York,
Limited Partnership New York 748,000 720,000 1,300,000 2,389,000 10,000 2,379,000
37
W
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
-------------------------------------- --------------------------------------------------
As of March 31, 2000 As of December 31, 1999
------------------------------------- --------------------------------------------------
Partnership's
Total Investment Amount of Encumbrances
in Local Limited Investment of Local Limited Property and Accumulated Net Book
Partnership Name Location Partnerships Paid to Date Partnerships Equipment Depreciation Value
- ------------------------------------------------------------------------------------------------------------------------------------
Woodland, Marion,
Ltd. Alabama 1,288,000 1,288,000 1,294,000 2,533,000 160,000 2,373,000
Wynwood Place, Limited Raleigh, North
Partnership Carolina 534,000 454,000 682,000 1,127,000 17,000 1,110,000
----------- ------------ ------------- ------------- ------------- ------------
$16,383,000 $ 15,743,000 $ 20,210,000 $ 39,405,000 $ 2,366,000 $ 37,039,000
=========== ============ ============= ============= ============= ============
38
WNC Housing Tax Credit Fund V, L.P. Series 4
Schedule III
Real Estate Owned by Local Limited Partnerships
March 31, 2000
----------------------------------------------------------------------------------------
For the year ended December 31, 1999
----------------------------------------------------------------------------------------
Year
Investment Estimated Useful
Partnership Name Rental Income Net(Loss) Income Acquired Status Life (Years)
- --------------------------------------------------------------------------------------------------------------------
Ashford Place, a Limited
Partnership $ 353,000 $ (276,000) 1996 Completed 40
Belen Vista Associates,
Limited Partnership 329,000 (25,000) 1997 Completed 27.5
Blessed Rock of
El Monte 660,000 (80,000) 1996 Completed 40
Under
Bolivar Plaza Apartments - 8,000 2000 2001 Construction
Cleveland Apartments L.P. 71,000 (207,000) 1998 Completed 27.5
Crescent City Apartments 152,000 (149,000) 1996 Completed 27.5
D. Hilltop Apartments Ltd. 74,000 (21,000) 1997 Completed 30
Greyhound Associates I,
L.P. 74,000 (27,000) 1997 Completed 40
Lamar Plaza Apts., L.P. 80,000 (10,000) 1997 Completed 40
Mesa Verde Apartments
Limited Partnership 400,000 (273,000) 1997 Completed 40
Mountain Vista Associates
Limited Partnership 223,000 (11,000) 1997 Completed 27.5
North Central Limited
Partnership 11,000 (18,000) 1998 Completed 40
Woodland, Ltd. 80,000 (65,000) 1997 Completed 40
Wynwood Place, Limited
Partnership 62,000 (32,000) 1998 Completed 50
------------ -----------
$ 2,569,000 $ (1,186,000)
============ ===========
39
>
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4
By: WNC & Associates, Inc. General Partner
By: /s/ Wilfred N. Cooper, Jr.
-------------------------
Wilfred N. Cooper, Jr.
President - Chief Operating Officer of WNC & Associates, Inc.
Date: June 21, 2002
By: /s/ Thomas J. Riha
------------------
Thomas J. Riha
President - Chief Operating Officer of WNC & Associates, Inc.
Date: June 21, 2002
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 registrant and
in the capacities and on the dates indicated.
By /s/ Wilfred N. Cooper, Sr.
--------------------------
Wilfred N. Cooper, Sr. Chairman of the Board of WNC & Associates, Inc.
Date: June 21, 2002
By: /s/ David N. Shafer
-------------------
David N. Shafer Director of WNC & Associates, Inc.
Date: June 21, 2002