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The following is an excerpt from a 10-K SEC Filing, filed by BOSTON CAPITAL TAX CREDIT FUND V LP on 10/20/2006.
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BOSTON CAPITAL TAX CREDIT FUND V LP - 10-K - 20061020 - PART_I

PART I
Item 1. Business
Organization
Boston Capital Tax Credit Fund V L.P. (the “Fund”) is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act as of October 15, 2003. The General Partner of the Fund is Boston Capital Associates V LLC, a Delaware limited liability company. The members of the General Partner are Boston Capital Companion Limited Partnership, a Massachusetts limited partnership, and John P. Manning, who is the managing member. Additional members of the General Partner are Jeffrey H. Goldstein and Marc N. Teal. The general partner of Boston Capital Companion Limited Partnership is Boston Capital Partners II Corporation whose sole shareholder is John P. Manning. John P. Manning is the principal of Boston Capital Partners, Inc.
The Assignor Limited Partner is BCTC V Assignor Corp., a Delaware corporation which is wholly-owned by John P. Manning. The Assignor Limited Partner was formed for the purpose of serving in that capacity for the Fund and will not engage in any other business. Units of beneficial interest in the Limited Partnership Interest of the Assignor Limited Partner are assigned by the Assignor Limited Partner by means of beneficial assignee certificates (“BACs”) to investors and investors are entitled to all the rights and economic benefits of a Limited Partner of the Fund including rights to a percentage of the income, gains, losses, deductions, credits and distributions of the Fund.
A Registration Statement on Form S-11 and the related prospectus, as supplemented (the “Prospectus”) were filed with the Securities and Exchange Commission and became effective January 2, 2004, in connection with a public offering (“Offering”) in one or more series of a minimum of 250,000 BACs and a maximum of 7,000,000 BACs at $10 per BAC. On August 10, 2004 an amendment to Form S-11, which registered an additional 8,500,000 BACs for sale to the public in one or more series became effective. As of March 31, 2006, subscriptions had been received and accepted by the Fund for 11,777,706 BACs representing capital contributions of $117,777,060 in the aggregate.
The Offering, including information regarding the issuance of BACs in series, is described on pages 161 to 167 of the Prospectus, as supplemented, under the caption “The Offering”, which is incorporated herein by reference.
Description of Business
The Fund’s principal business is to invest as a limited partner in other limited partnerships (the “Operating Partnerships”) each of which will own or lease and will operate an apartment complex exclusively or partially for low- and moderate-income tenants. Each Operating Partnership in which the Fund invests owns Apartment Complexes which are completed, newly-constructed, under construction or rehabilitation, or to-be constructed or rehabilitated, and which are expected to receive Government Assistance. Each apartment complex is expected to qualify for the low-income housing tax credit under Section 42 of the Code (the “Federal Housing Tax Credit”), providing tax benefits over a period of ten to twelve years in the form of tax credits which investors

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may use to offset income, subject to certain strict limitations, from other sources. Some apartment complexes may also qualify for the historic rehabilitation tax credit under Section 47 of the Code (the “Rehabilitation Tax Credit”). The Federal Housing Tax Credit and the Government Assistance programs are described on pages 72 to 93 of the Prospectus, as supplemented, under the captions “Tax Credit Programs” and “Government Assistance Programs,” which is incorporated herein by reference. Section 236(f)(ii) of the National Housing Act, as amended, and Section 101 of the Housing and Urban Development Act of 1965, as amended, each provide for the making by HUD of rent supplement payments to low income tenants in properties which receive other forms of federal assistance such as Tax Credits. The payments for each tenant, which are made directly to the owner of their property, generally are in such amounts as to enable the tenant to pay rent equal to 30% of the adjusted family income. Some of the apartment complexes in which the Fund has invested are receiving their rent supplements from HUD. HUD has been in the process of converting rent supplement assistance to assistance paid not to the owner of the Apartment Complex, but directly to the individuals. At this time, the Fund is unable to predict whether Congress will continue rent supplement programs payable directly to owners of apartment complexes.
As of March 31, 2006 the Fund had invested in 15 Operating Partnerships on behalf of Series 47; 10 Operating Partnerships on behalf of Series 48; and 21 Operating Partnerships on behalf of Series 49. A description of these Operating Partnerships is set forth in Item 2 herein.
The business objectives of the Fund are to:
(1)   provide current tax benefits to Investors in the form of Federal Housing Tax Credits and in limited instances, a small amount of Rehabilitation Tax Credits, which an investor may apply, subject to strict limitations, against the Investor’s federal income tax liability from active, portfolio and passive income;
 
(2)   preserve and protect the Fund’s capital and provide capital appreciation and cash distributions to limited partners through increases in value of the Fund’s investments and, to the extent applicable, increase in equity through periodic payments on the mortgage indebtedness with respect to the apartment complexes;
 
(3)   provide tax benefits in the form of passive losses which an investor may apply to offset his passive income (if any); and
 
(4)   provide cash distributions (except with respect to the Fund’s investment in some Non-Profit Operating Partnerships) from Capital Transaction proceeds. The Operating Partnerships intend to hold the Apartment Complexes for appreciation in value. The Operating Partnerships may sell the Apartment Complexes after a period of time if financial conditions in the future make such sales desirable and if such sales are permitted by government restrictions.
The business objectives and investment policies of the Fund are described more fully on pages 55 to 70 of the Prospectus, as supplemented, under the caption “Investment Objectives and Acquisition Policies,” which is incorporated herein by reference.
Employees
The Fund does not have any employees. Services are performed by the General Partner and its affiliates and agents retained by them.

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Item 1A. Risk Factors
As used in this Item 1A, references to “we, “us” and “our” mean the Fund.
An investment in our Units and our investments in Local Limited Partnerships and their Operating Partnerships are subject to risks. These risks may impact the tax benefits of an investment in our Units, and the amount of proceeds available for distribution to our Limited Partners, if any, on liquidation of our investments.
In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition or results of operations. The risks described below are not the only risks we face. Additional factors not presently known to us or that we currently deem to be immaterial also may materially adversely affect our business operations.
The ability of Limited Partners to claim tax losses from their investment in us is limited.
The IRS may audit us or a Local Limited Partnership and challenge the tax treatment of tax items. The amount of Low Income Housing Tax Credits and tax losses allocable to the investors could be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits from an investment in our Units. Changes in tax laws could also impact the tax benefits from an investment in our Units and/or the value of the Operating Partnerships. Until the Local Limited Partnerships have completed a mandatory fifteen year Low Income Housing Tax Credit compliance period, investors are at risk for potential recapture of Low Income Housing Tax Credits that have already been claimed.
The Low Income Housing Tax Credits rules are extremely complicated and noncompliance with these rules may have adverse consequences for Unit holders.
Noncompliance with applicable tax regulations may result in the loss of future Low Income Housing Tax Credits and the fractional recapture of Low Income Housing Tax Credits already taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited to the tax liability due on the person’s last $25,000 of taxable income. The Local Limited Partnerships may be unable to sell the Operating Partnerships at a price which would result in our realizing cash distributions or proceeds from the transaction. Accordingly, we may be unable to distribute any cash to its investors. Low Income Housing Tax Credits may be the only benefit from an investment in our Units.
Poor performance of one Housing Complex, or the real estate market generally, could impair our ability to satisfy our investment objectives.
Each Housing Complex is subject to mortgage indebtedness. If a Local Limited Partnership failed to pay its mortgage, it could lose its Housing Complex in foreclosure. If foreclosure were to occur during the first 15 years of the existence of the Fund, the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of previously claimed Low Income Housing Tax Credits, and a loss of our investment in the Housing Complex would occur. To the extent the Operating Partnerships receive government financing or operating subsidies, they may be subject to one or more of the following risks:

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  -   difficulties in obtaining rent increases; limitations on cash distributions; limitations on sales or refinancing of Operating Partnerships;
 
  -   limitations on transfers of interests in Local Limited Partnerships;
 
  -   limitations on removal of Local General Partners;
 
  -   limitations on subsidy programs; and
 
  -   possible changes in applicable regulations.
The value of real estate is subject to risks from fluctuating economic conditions, including employment rates, inflation, tax, environmental, land use and zoning policies, supply and demand of similar properties, and neighborhood conditions, among others.
No trading market for the Units exists or is expected to develop.
There is currently no active trading market for the Units. Accordingly, Limited Partners may be unable to sell their Units or may have to sell Units at a discount. Limited Partners should consider their Units to be a long-term investment.
Investors may realize taxable gain on sale or disposition of certificates.
     Upon the sales or other taxable disposition of certificates, investors will realize taxable income to the extent that their allocable share of the non-recourse mortgage indebtedness on the apartment complexes, together with the money they receive from the sale of the certificates, is greater than the original cost of their certificates. This realized taxable income is reduced to the extent that investors have suspended passive losses or credits. It is possible that the sale of certificates may not generate enough cash to pay the tax obligations arising from the sale.
Investors may have tax liability in excess of cash.
     Investors eventually may be allocated profits for tax purposes which exceed any cash Boston Capital distributes to them. Under these circumstances, unless an investor has passive losses or credits to reduce such tax liability, the investor will have to pay federal income tax without a corresponding cash distribution from Boston Capital. Similarly, in the event of a sale or foreclosure of an apartment complex or a sale of certificates, an investor may be allocated taxable income, resulting in tax liability, in excess of any cash distributed to him or her as a result of such event.
Investors may not receive cash if apartment complexes are sold .
     There is no assurance that investors will receive any cash distributions from the sale or refinancing of an apartment complex. The price at which an apartment complex is sold may not be large enough to pay the mortgage and other expenses which must be paid at such time. Even if there are net cash proceeds from a sale distributed to Boston Capital, expenses such as accrued Fund Management Fees and unpaid loans to Boston Associates will be deducted pursuant to Section 4.02(a) of the Fund Agreement included in Exhibit A. If any of these events happen, investors will not get all of their investment back, and the only benefit from an investment in Boston Capital will the tax credits received.
The sale or refinancing of the apartment complexes is dependent upon the following material factors:

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  -   The necessity of obtaining the consent of the operating general partners;
 
  -   The necessity of obtaining the approval of any governmental agency(ies) providing government assistance to the apartment complex; and
 
  -   The uncertainty of the market.
Any sale may occur well after the fifteen-year federal housing tax credit compliance period.
We have insufficient sources of cash to pay its existing liabilities.
We currently do not have sufficient cash resources to satisfy its financial liabilities. Furthermore, we do not anticipate that we will have sufficient available cash to pay our future financial liabilities. Substantially all of our existing liabilities are payable to our General Partner and its affiliates. Though the amounts payable to the General Partner and its affiliates are contractually currently payable, we do not believe that the General Partner or its affiliates will demand immediate payment of these contractual obligations in the near term, however there can be no assurance that this will be the case. We would be materially adversely affected if the General Partner or its affiliates demanded payment in the near term of our existing contractual liabilities or suspended the provision of services to us because of its inability to satisfy these obligations. All monies currently deposited, or that will be deposited in the future, into the Partnership’s working capital reserves are intended to be utilized to pay our existing and future liabilities.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
The Fund has acquired a Limited Partnership interest in 46 Operating Partnerships in three series, identified in the table set forth below. The Apartment Complexes owned by the Operating Partnerships are eligible for the Federal Housing Tax Credit. Initial occupancy of a unit in each Apartment Complex which initially complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a disignated percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred as “Qualified Occupancy.” The Operating Partnership and the respective Apartment Complexes are described more fully in the Prospectus. The General Partner believes that there is adequate casualty insurance on the properties.

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Boston Capital Tax Credit Fund V L.P. — Series 47
PROPERTY PROFILE AS OF MARCH 31, 2006
                                                     
                Mortgage                   Qualified   Cap Con
Property               Balance as   Acq   Const   Occupancy   paid thru
Name   Location   Units   of 12/31/05   Date   Comp   3/31/06   3/31/06
Countrybook Apartments
  Champagne, IL     150     $ 7,284,390       06/04       07/05       100 %   $ 2,055,462  
 
                                                   
Dawn Springs Villa Apartments
  London, KY     24       607,100       05/05       10/05       96 %*     503,043  
 
                                                   
La Maison Apartments
  Lake Charles, LA     78       2,636,000       06/04       12/04       100 %     1,988,802  
 
                                                   
Marion Apartments
  Marion, MI     32       1,344,848       07/04       12/04       100 %     419,185  
 
                                                   
Mayfair Park Apartments
  Houston, TX     178       9,500,000       03/04       07/05       89 %*     1,938,779  
 
                                                   
McEver Vineyards Apartments
  Gainesville, GA     220       13,351,578       11/03       12/04       100 %     1,660,485  
 
                                                   
Mira Vista Apartments
  Santa Anna, TX     24       528,747       03/04       03/05       100 %     437,622  
 
                                                   
Park Plaza Apartments
  Temple, OK     14       763,900       11/04       11/04       100 %     163,329  
 
                                                   
Parkland Manor Apartments
  Leitchfield, KY     74       2,694,028       07/04       05/05       100 %     2,258,044  
 
                                                   
Pecan Creek Apartments
  Hillsboro, TX     48       1,724,568       03/04       07/05       100 %     905,924  
 
                                                   
Sandpiper Apartments
  Carrollton, AL     52       1,262,908       04/04       11/04       100 %     1,819,982  
 
                                                   
The Masters Apartments
  Kerrville, TX     144       8,000,000       06/04       10/05       100 %     1,827,965  

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Boston Capital Tax Credit Fund V L.P. — Series 47
PROPERTY PROFILE AS OF MARCH 31, 2006
Continued
                                                     
                Mortgage                   Qualified   Cap Con
Property               Balance as   Acq   Const   Occupancy   paid thru
Name   Location   Units   of 12/31/05   Date   Comp   3/31/06   3/31/06
The Vistas Apartments
  Marble Falls, TX     124     $ 6,000,000       03/04       06/05       98 %*   $ 1,781,872  
 
                                                   
Time Square on the Hill
  Fort Worth, TX     200       7,044,925       03/04       12/04       100 %     2,612,174  
 
                                                   
Wellington Park Apts.
  Houston, TX     244       13,350,000       01/04       07/05       100 %     1,983,802  
 
*   Property was in lease-up phase as of March 31, 2006.

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Boston Capital Tax Credit Fund V L.P. — Series 48
PROPERTY PROFILE AS OF MARCH 31, 2006
                                                     
                Mortgage                   Qualified   Cap Con
Property               Balance as   Acq   Const   Occupancy   paid thru
Name   Location   Units   of 12/31/05   Date   Comp   3/31/06   3/31/06
Colusa Avenue Aptartments
  Chowchilla, CA     38     $ 2,003,320       07/04       05/05       100 %   $ 653,154  
 
                                                   
Contempo Apartments
  Hammond, LA     48       1,564,691       08/04       08/05       100 %     505,030  
 
                                                   
Greenway Place Apartments
  Hopkinsville, KY     41       1,361,849       04/04       03/05       100 %     1,850,391  
 
                                                   
Mayfair Park Apartments
  Houston, TX     178       9,500,000       03/04       07/05       89 %*     1,938,779  
 
                                                   
McEver Vineyards Apartments
  Gainesville, GA     220       11,370,582       11/03       12/04       100 %     1,660,484  
 
                                                   
Starlite Village Apartments
  Elizabethtown, KY     40       1,246,613       11/04       06/05       100 %     1,421,479  
 
                                                   
The Links Apartments
  Umatilla, OR     24       2,011,625       06/04       11/04       100 %     601,374  
 
                                                   
The Masters Apartments
  Kerrville, TX     144       8,000,000       06/04       10/05       100 %     1,827,965  
 
                                                   
Wellington Park Apartments
  Houston, TX     244       13,350,000       01/04       07/05       100 %     1,983,802  
 
                                                   
Wyndam Place Senior Residences
  Emporia, KS     42       1,150,000       08/04       05/05       90 %*     2,644,056  
 
*   Property was in lease-up phase as of March 31, 2006.

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Boston Capital Tax Credit Fund V L.P. — Series 49
PROPERTY PROFILE AS OF MARCH 31, 2006
                                                     
                Mortgage                   Qualified   Cap Con
Property               Balance as   Acq   Const   Occupancy   paid thru
Name   Location   Units   of 12/31/05   Date   Comp   3/31/06   3/31/06
Briarwood Apartments
  Kaufman, TX     49     $ 1,255,857       02/05       U/C       80 %*      
 
                                                   
Bristol Apartments
  Houston, TX     248       12,625,000       05/04       11/05       95 %*     6,268,301  
 
                                                   
Brookview I&II Apartments
  Mauston, WI     22       1,049,911       03/05       06/05       45 %*     634,559  
 
                                                   
Chester Townhouses
  Columbia, SC     62       N/A       03/06       U/C       N/A       340,166  
 
                                                   
Columbia Senior Residences at MT. Pleasant
  Atlanta, GA     78       N/A       12/04       U/C       N/A       6,162,028  
 
                                                   
Garden Grace Apartments
  Owensboro, KY     62       3,072,000       10/05       U/C       N/A        
 
                                                   
La Mirage Villas Apartments
  Perryton, TX     48       1,316,835       02/05       U/C       N/A       977,055  
 
                                                   
Linda Villa Apartments
  Shepherdsville, KY     32       1,219,700       5/05       10/05       100 %     1,398,583  
 
                                                   
Linden’s Apartments
  Shawnee, OK     54       1,198,250       12/04       02/06       33 %*     278,308  
 
                                                   
Meadow Glen Apartments
  Kingfisher, OK     20       1,286,904       10/05       07/05       100 %     243,768  
 
                                                   
Post Oak East Apartments
  Fort Worth, TX     246       13,600,000       07/04       U/C       33 %*     984,288  
 
                                                   
RenaissanceVillage
  Bowling Green, KY     34       332,908       05/05       U/C       29 %      

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Boston Capital Tax Credit Fund V L.P. — Series 49
PROPERTY PROFILE AS OF MARCH 31, 2006
Continued
                                                     
                Mortgage                   Qualified   Cap Con
Property               Balance as   Acq   Const   Occupancy   paid thru
Name   Location   Units   of 12/31/05   Date   Comp   3/31/06   3/31/06
Richwood Apartments
  Ash Flat, AR     25       N/A       12/05       U/C       40 %*   $ 307,259  
 
                                                   
Ridgeview Terrace Apartments
  Mount Vernon, WA     80       4,400,404       01/05       08/05       100 %     1,576,595  
 
                                                   
Rosehill Senior Apartments Phase II
  Topeka, KS     36       2,436,012       08/04       04/05       100 %     2,550,156  
 
                                                   
Rosewood Apartments
  Lenexa, KS     144       6,777,741       12/05       U/C       N/A       2,966,516  
 
                                                   
Sunset Manor
  Kewaunee, WI     38       1,282,640       10/05       07/05       100 %     938,276  
 
                                                   
The Gardens of Athens
  Athens, TX     32       2,267,363       01/05       12/05       100 %     1,702,751  
 
                                                   
The Linden’s Apartments
  Bartesville, OK     54       1,081,549       03/04       U/C       N/A       2,153,200  
 
                                                   
The Vistas Apartments
  Marble Falls, TX     124       6,000,000       03/04       06/05       98 %*     521,053  
 
                                                   
Union Square Apartments
  Junction City, LA     32       993,128       02/05       09/05       100 %     569,881  
 
U/C Property was under construction at March 31, 2006.
 
*      Property was in lease-up phase as of March 31, 2006.

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Item 3. Legal Proceedings
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.

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BROKERAGE PARTNERS