FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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, 2002
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: 0-20057
WNC HOUSING TAX CREDIT FUND II, L.P.
California 33-0391979
(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
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 No X
----------- ------------------
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
INDEX TO FORM 10-Q
For the Quarter Ended June 30, 2002
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
June 30, 2002 and March 31, 2002 ........................3
Statements of Operations
For the three months ended June 30, 2002 and 2001........4
Statement of Partners' Deficit
For the three months ended June 30, 2002.........-.......5
Statements of Cash Flows
For the three months ended June 30, 2002 and 2001........6
Notes to Financial Statements ....................................7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..............................13
Item 3. Quantitative and Qualitative Disclosures about Market Risk........15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.................................................15
Item 6. Exhibits and Reports on Form 8-K..................................15
Signatures ...............................................................16
Certification Pursuant To 18 U.S.C. Section 1350.........................17
2
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
BALANCE SHEETS
June 30, 2002 March 31, 2002
---------------------- ----------------------
(unaudited)
ASSETS
Cash and cash equivalents $ 128,109 $ 127,554
Investments in limited partnerships, net (Note 2) 400,419 418,246
---------------------- ----------------------
$ 528,528 $ 545,800
====================== ======================
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
Accrued fees and expenses due to
General Partner and affiliates (Note 3) $ 1,509,367 $ 1,473,564
---------------------- ----------------------
Partners' deficit:
General Partner (69,351) (68,820)
Limited Partners (12,000 units authorized and 7,000
units issued and outstanding) (911,488) (858,944)
---------------------- ----------------------
Total partners' deficit (980,839) (927,764)
---------------------- ----------------------
$ 528,528 $ 545,800
====================== ======================
See accompanying notes to financial statements
3
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2002 and 2001
(unaudited)
2002 2001
-------------------------------- ------------------------------
Three Three
Months Months
-------------------------------- ------------------------------
Interest income $ 555 $ 1,096
-------------------------------- ------------------------------
Operating expenses:
Amortization (Note 2) 2,896 2,896
Asset management fees (Note 3) 36,226 36,226
Legal and accounting 3,678 1,704
Other 1,777 1,775
-------------------------------- ------------------------------
Total operating expenses 44,577 42,601
-------------------------------- ------------------------------
Loss from operations (44,022) (41,505)
Equity in losses of
limited partnerships (Note 2) (9,053) (17,188)
-------------------------------- ------------------------------
Net loss $ (53,075) $ (58,693)
================================ ==============================
Net loss allocated to:
General Partner $ (531) $ (587)
================================ ==============================
Limited Partners $ (52,544) $ (58,106)
================================ ==============================
Net loss per weighted limited
partner unit $ (8) $ (8)
================================ ==============================
Outstanding weighted limited
partner units 7,000 7,000
================================ ==============================
See accompanying notes to financial statements
4
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
STATEMENT OF PARTNERS' DEFICIT
For the Three Months Ended June 30, 2002
(unaudited)
General Limited
Partner Partners Total
------------------- ---------------- --------------
Partners' deficit at March 31, 2002 $ (68,820) $ (858,944) $ (927,764)
Net loss (531) (52,544) (53,075)
------------------- ---------------- --------------
Partners' deficit at June 30, 2002 $ (69,351) $ (911,488) $ (980,839)
=================== ================ ==============
See accompanying notes to financial statements
5
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
For the Three Months Ended June 30, 2002 and 2001
(unaudited)
2002 2001
-------------------- ------------------
Cash flows from operating activities:
Net loss $ (53,075) $ (58,693)
Adjustments to reconcile net loss to net
cash used in operating activities:
Equity in losses of limited partnerships 9,053 17,188
Amortization 2,896 2,896
Change in accrued fees and expenses due to
General Partner and affiliates 35,803 34,140
-------------------- ------------------
Net cash used in operating activities (5,323) (4,469)
-------------------- ------------------
Cash flows from investing activities:
Distributions from limited partnerships 5,878 8,438
-------------------- ------------------
Net increase in cash and cash equivalents 555 3,969
-------------------- ------------------
Cash and cash equivalents, beginning of period 127,554 136,626
-------------------- ------------------
Cash and cash equivalents, end of period $ 128,109 $ 140,595
==================== ==================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Tax Paid $ 800 $ 800
==================== ==================
See accompanying notes to financial statements
6
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
General
- -------
The accompanying condensed unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form 10-Q
for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act
of 1934. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three months
ended June 30, 2002 are not necessarily indicative of the results that may be
expected for the fiscal year ending March 31, 2003. For further information,
refer to the financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-K for the fiscal year ended March 31,
2002.
Organization
- ------------
WNC Housing Tax Credit Fund II, L.P., a California Limited Partnership (the
"Partnership"), was formed on January 19, 1990 under the laws of the State of
California. The Partnership was formed to invest primarily in other limited
partnerships (the "Local Limited Partnerships") which own and operate
multifamily housing complexes (the "Housing Complex") that are eligible for low
income housing tax credits. The local general partners (the "Local General
Partners") of each Local Limited Partnership retain responsibility for
maintaining, operating and managing the Housing Complex.
WNC & Associates, Inc. ("Associates") and Wilfred N. Cooper, Sr. are the general
partners of the Partnership (the "General Partners"). The chairman and president
own substantially all of the outstanding stock of Associates. The business of
the Partnership is conducted primarily through the General Partners as the
Partnership has no employees of its own.
The Partnership shall continue to be in full force and effect until December 31,
2045 unless terminated prior to that date pursuant to the partnership agreement
or law.
The Partnership Agreement authorized the sale of up to 12,000 units at $1,000
per Unit ("Units"). The offering of Units concluded on December 31, 1992, at
which time 7,000 Units representing subscriptions in the amount of $7,000,000
had been accepted. The General Partner has 1% interest in operating profits and
losses, taxable income and losses, in cash available for distribution from the
Partnership and tax credits of the Partnership. 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 95% to the limited partners (in proportion to their
respective investments) and 5% to the General Partner.
7
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the Quarter Ended June 30, 2002
(unaudited)
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 on 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).
Offering Expenses
- -----------------
Offering expenses consist of underwriting commissions, legal fees, printing,
filing and recordation fees, and other costs incurred with selling limited
partnership interests in the Partnership. The General Partner is obligated to
pay all offering and organization costs in excess of 15% (including sales
commissions) of the total offering proceeds. Offering expenses are reflected as
a reduction of partners' capital and amounted to $1,036,840 at the end of all
periods presented.
8
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
- --------------------------------------------------------------
Use of Estimates
- ----------------
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America accepted 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
June 30, 2002 and March 31, 2002, the Partnership had no cash equivalents.
Concentration of Credit Risk
- ----------------------------
At June 30, 2002, the Partnership maintained cash balances at certain financial
institutions 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 income 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
for all the periods presented, 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. SFAS 144
is not expected to have a material impact on the Partnership's financial
position or results of operations.
9
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
- --------------------------------------------
As of the periods presented, the Partnership had acquired limited partnership
interests in twenty-seven Local Limited Partnerships, each of which owns one
Housing Complex consisting of an aggregate of 784 apartment units. The
respective general partners of the Local Limited Partnerships manage the
day-to-day operations of the entities. Significant Local Limited Partnership's
business decisions, as defined, require the approval of the Partnership. The
Partnership, as a limited partner, is generally entitled to 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.
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 by limited partners are accounted for as a reduction of
the investment balance. Distributions received after the investment has reached
zero would be recognized as income.
The following is a summary of the equity method activity of the investments in
Local Limited Partnerships for the periods presented below:
For the Three Months For the Year
Ended Ended
June 30, 2002 March 31, 2002
---------------------- ------------------
Investments per balance sheet, beginning of period $ 418,246 $ 622,522
Equity in losses of limited partnerships (9,053) (188,049)
Distributions received (5,878) (7,886)
Amortization of capitalized acquisition fees and costs (2,896) (8,341)
---------------------- ------------------
Investments per balance sheet, end of period $ 400,419 $ 418,246
====================== ==================
10
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
-------------------------------------------------------
Selected financial information for the three months ended June 30, 2002 and
2001, from the unaudited combined condensed financial statements of the limited
partnerships in which the Partnership has invested as follows:
2002 2001
---- ----
Revenues $ 779,000 $ 775,000
------------------- -----------------
Expenses:
Interest expense 169,000 174,000
Depreciation & amortization 209,000 213,000
Operating expenses 556,000 540,000
------------------- -----------------
Total expenses 934,000 927,000
------------------- -----------------
Net loss $ (155,000) $ (152,000)
=================== =================
Net loss allocable to the Partnership $ (154,000) $ (150,000)
=================== =================
Net loss recorded by the Partnership $ (9,000) $ (17,000)
=================== =================
Certain Local Limited Partnerships 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
- ----------------------------------
Under the terms of the Partnership Agreement, the Partnership has paid or is
obligated to the General Partner or its affiliates for the following items:
(a) Annual Asset Management Fee. An annual asset management fee in an amount
equal to 0.5% of invested assets (the sum of the Partnership's Investment
in Local Limited Partnership Interests and the Partnership's allocable
share of the amount of the mortgage loans on and other debts related to,
the Housing Complexes owned by such Local Limited Partnerships). Fees of
$36,226 and $36,226 were incurred during the three months ended June 30,
2002 and 2001, respectively. The partnership paid $3,500 to the General
Partner or its affiliates for those fees during the three months ended June
30, 2002 and $1,750 during the three months ended June 30, 2001.
(b) Subordinated Disposition Fee. A subordinated disposition fee in an amount
equal to 1% the sales price of any real estate sold. Payment of this fee is
subordinated to the limited partners who receive a 6% preferred return (as
defined in the Partnership Agreement) and is payable only if the General
Partner or its affiliates render services in the sales effort.
11
WNC HOUSING TAX CREDIT FUND II, L.P.
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 3 - RELATED PARTY TRANSACTIONS, continued
- ----------------------------------------------
The accrued fees and expenses due to General Partner and affiliates consists of
the following at:
June 30, 2002 March 31, 2002
----------------------- -----------------------
Asset management fee payable $ 1,504,925 $ 1,472,199
Advances from WNC 4,442 1,365
----------------------- -----------------------
Total accrued fees and expenses due to
General Partner and affiliates $ 1,509,367 $ 1,473,564
======================= =======================
The General Partner does not anticipate that these accrued fees will be paid in
full until such time as capital reserves are in excess of future foreseeable
working capital requirements of the Partnership.
NOTE 4 - INCOME TAXES
- ---------------------
No provision for income taxes has been recorded in the financial statements, as
any liability for income taxes is the obligation of the partners of the
Partnership.
12
Item 2. 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-Q 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-Q and in other reports we filed with the
Securities and Exchange Commission. The following discussion should be read in
conjunction with the Condensed Financial Statements and the Notes thereto
included elsewhere in this filing.
The following discussion and analysis compares the results of operations for the
three months ended June 30, 2002 and 2001, and should be read in conjunction
with the condensed financial statements and accompanying notes included within
this report.
Financial Condition
The Partnership's assets at June 30, 2002 consisted of $128,000 in cash and
aggregate investments in the twenty-seven Local Limited Partnerships of
$400,000. Liabilities at June 30, 2002 consisted of $1,509,000 of accrued fees
and expenses due to the General Partner and affiliates.
Results of Operations
Three Months Ended June 30, 2002 Compared to Three Months Ended June 30, 2001.
The Partnership's net loss for the three months ended June 30, 2002 was
$(53,000), reflecting a decrease of $6,000 from the net loss for the three
months ended June 30, 2001 of $(59,000). The decrease in net loss is primarily
due to a decrease in equity in losses of limited partnerships of $8,000 to
$(9,000) for the three months ended June 30, 2002 from approximately $(17,000)
for the three months ended June 30, 2001. The decrease in equity in losses of
limited partnerships is due to the Partnership not recognizing certain losses of
the Local Limited Partnerships. The investments in such Local Limited
Partnerships had reached $0 at June 30, 2002. Since the Partnerships liability
with respect to its investments is limited, losses in excess of investments are
not recognized. In addition, loss from operations increased by $2,000 due to an
increase in accounting fees during the three months ended June 30, 2002 to
$(4,000) from $(2,000) for the three months ended June 30, 2001.
13
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Cash Flows
Three Months Ended June 30, 2002 Compared to Three Months Ended June 30, 2001.
Net cash increase during the three months ended June 30, 2002 was $1,000,
reflecting a decline of approximately $(3,000), compared to net cash increase
for the three months ended June 30, 2001 of $4000. The change is due to a
decrease in distributions of $(2,000) and an increase in cash used for operating
activities of $(1,000).
During the three months ended June 30, 2002, accrued payables, which consisted
primarily of asset management fees due to the General Partner, increased by
$36,000. The General Partner does not anticipate that these accrued fees will be
paid until such time as capital reserves are in excess of future foreseeable
working capital requirements of the partnership.
The Partnership expects its future cash flows, together with its net available
assets at June 30, 2002, to be sufficient to meet all currently foreseeable
future cash requirements.
14
Item 3. Quantitative and Qualitative Disclosures about Market Risks
NOT APPLICABLE
Part II. Other Information
Item 1. Legal Proceedings
NONE
Item 6. Exhibits and Reports on Form 8-K
NONE
15
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
WNC HOUSING TAX CREDIT FUND II, L.P.
By: WNC Financial Group, L.P. General Partner of the Registrant
By: WNC & Associates, Inc. General Partner of WNC Housing Tax Credit
Fund II, L.P.
By: /s/ Wilfred N. Cooper, Jr.
--------------------------
Wilfred N. Cooper, Jr., President
Chief Operating Officer of WNC & Associates, Inc.
Date: August 8, 2002
By: /s/ Thomas J. Riha
------------------
Thomas J. Riha, Vice-President
Chief Financial Officer of WNC & Associates, Inc.
Date: August 8, 2002
16
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of WNC Housing Tax Credit
Fund II, L.P. (the "Partnership") for the period ended June 30, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
and pursuant to 18 U.S.C., section 1350, as adopted pursuant to section 906 of
the Sarbanes-Oxley Act of 2002, I, Wilfred N. Cooper, Sr., Chairman and Chief
Executive Officer of WNC & Associates, Inc., general partner [of the general
partner] of the Partnership, hereby certify that:
1. The Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Partnership.
/s/WILFRED N. COOPER, SR.
- -------------------------
Wilfred N. Cooper, Sr.
Chairman and Chief Executive Officer of WNC & Associates, Inc.
August 8, 2002
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of WNC Housing Tax Credit
Fund II, L.P. (the "Partnership") for the period ended June 30, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
and pursuant to 18 U.S.C., section 1350, as adopted pursuant to section 906 of
the Sarbanes-Oxley Act of 2002, I, Thomas J. Riha, Chief Financial Officer of
WNC & Associates, Inc., general partner [of the general partner] of the
Partnership, hereby certify that:
1. The Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Partnership.
/s/THOMAS J. RIHA
- -----------------
Thomas J. Riha
Chief Financial Officer of WNC & Associates, Inc.
August 8, 2002
17