Subsequent Events

3 Months Ended

Mar. 31, 2022

24. Subsequent Events

On April 1, 2022, the Partnership effected the one-for-three Reverse Unit Split of its outstanding BUCs. As a result of the Reverse Unit Split, holders of BUCs received one BUC for every three BUCs owned at the close of business on April 1, 2022. The one-for-three Reverse Unit Split has been applied retroactively to all net income per BUC, distributions per BUC and similar per BUC disclosures for all periods presented in the Partnership’s condensed consolidated financial statements.

In April 2022, the Partnership extended the maturity of the TOB Trust 2021-XF-2953 with Barclays from January 2023 to April 2023. In addition, the Partnership extended the maturity of the Hope on Avalon and Hope on Broadway TOB trust financings with

Mizuho from February 2023 to August 2023. There were no additional changes to terms or fees associated with the extension of the TOB trust financings.

In April 2022, the Partnership deposited the Lutheran Gardens MRB into an existing TOB trust financing arrangement with Barclays for additional debt financing proceeds. The following table summarizes the terms of the TOB trust financing upon deposit of the MRB:

TOB Trusts Securitization

TOB
Trust Financing

Stated Maturity

Reset
Frequency

OBFR
Based Rates

Facility Fees

Interest Rate

TOB Trust 2021-XF2953

8,280,000

April 2023

Weekly

0.59%

1.27%

1.86%

In April 2022, the Partnership committed to fund an MRB and a taxable MRB for the construction and permanent financing of an affordable multifamily property. The Partnership funded its initial investment with available cash. The following table summarizes the terms of the Partnership’s MRB and taxable MRB commitments:


Commitment	Month Acquired	Property Location	Units	Maturity Date	Interest Rate	Initial Funding		Maximum Remaining Commitment
The Residency at the Entrepreneur - Series J-1	April 2022	Los Angeles, CA	200	3/31/2040	6.00%	$	9,000,000	$	-
The Residency at the Entrepreneur - Series J-2	April 2022	Los Angeles, CA	200	3/31/2040	6.00%		7,500,000		-
The Residency at the Entrepreneur - Series J-3	April 2022	Los Angeles, CA	200	3/31/2040	6.00%		-		26,080,000
The Residency at the Entrepreneur - Series J-4 (1)	April 2022	Los Angeles, CA	200	3/31/2040	SOFR + 3.60% (2)		-		16,420,000
The Residency at the Entrepreneur - Series J-T	April 2022	Los Angeles, CA	200	4/1/2025 (3)	SOFR + 3.65% (4)		1,000,000		12,000,000
						$	17,500,000	$	54,500,000

(1)

Upon stabilization, the Series J-4 MRB will become subordinate to the Series J-1, J-2 and J-3 MRBs.

(2)

The interest rate is subject to an all-in floor of 3.87%. Upon stabilization, Series J-4 MRB will convert to a fixed rate of 8.0%.

(3)

The borrower has the option to extend the maturity up to six months upon meeting certain conditions, including payment of a non-refundable extension fee.

(4)

The interest rate is subject to an all-in floor of 3.92%.

In April 2022, the Partnership issued 2,000,000 Series A-1 Preferred Units to a financial institution in exchange for 2,000,000 outstanding Series A Preferred Units held by that institution. There were no net proceeds to the Partnership as a result of the exchange transaction.

In April 2022, the Partnership and Bankers Trust Company amended the Acquisition LOC credit agreement to update certain defined terms effective March 31, 2022.

In April 2022, the Partnership loaned funds totaling $825,000 to a borrower in the form of a property loan secured by the borrower’s interest in Poppy Grove, a development property. The property loan bears interest at a fixed rate of 8.0% and has a stated maturity date in July 2022.

In May 2022, the following MRB was redeemed at a price equal to the Partnership’s carrying value plus accrued interest:

Property Name

Month
Redeemed

Property Location

Units

Original
Maturity Date

Interest Rate

Principal
Outstanding at Date
of Redemption

Bridle Ridge

May 2022

Greer, SC

152

1/1/2043

6.00%

7,100,000