Other Assets

6 Months Ended

Jun. 30, 2022

12. Other Assets

The following table summarizes the Partnership's other assets as of June 30, 2022 and December 31, 2021:


	June 30, 2022		December 31, 2021
Deferred financing costs, net	$	1,093,441	$	1,349,097
Fair value of derivative instruments (Note 17)		3,983,717		343,418
Taxable mortgage revenue bonds, at fair value		11,457,256		3,428,443
Taxable governmental issuer loan held in trust		1,000,000		1,000,000
Bond purchase commitments, at fair value (Note 18)		8,953		964,404
Operating lease right-of-use assets, net		1,605,257		1,619,714
Other assets		1,826,894		2,157,809
Total other assets	$	20,975,518	$	10,862,885

As of June 30, 2022 and December 31, 2021, the operating lease right-of-use assets consisted primarily of a ground lease at the 50/50 MF Property (Note 13).

The Partnership has remaining commitments to provide additional funding of the taxable GIL and taxable MRBs during construction and/or rehabilitation of the secured properties as of June 30, 2022. See Note 18 for further information regarding the Partnership’s remaining taxable GIL and taxable MRB funding commitments.

See Note 22 for a description of the methodology and significant assumptions for determining the fair value of derivative instruments, taxable MRBs and bond purchase commitments. Unrealized gains or losses on derivative instruments are reported as “Interest expense” in the Partnership's condensed consolidated statements of operations. Unrealized gain or losses on taxable MRBs and bond purchase commitments are recorded in the Partnership's condensed consolidated statements of comprehensive income to reflect changes in their estimated fair values resulting from market conditions and fluctuations in the present value of the expected cash flows from the assets.

As of June 30, 2022, four taxable MRBs with a fair value of $10.2 million were held in trust in connection with TOB trust financings (Note 15).

Activity in the First Six Months of 2022

The following table includes details of the taxable MRBs acquired during the six months ended June 30, 2022:

Property Name

Month
Acquired

Property Location

Units

Maturity Date

Interest Rate

Initial Principal Acquired

Live 929 Apartments - Series 2022B

January 2022

Baltimore, MD

575

1/1/2029

4.30%

3,625,000

Residency at the Entrepreneur - Series J-T (1)

April 2022

Los Angeles, CA

200

4/1/2025

SOFR + 3.65%

1,000,000

4,625,000

(1)

The Partnership has committed to provide total funding for this MRB of $13.0 million (see Note 18). The borrower has the option to extend the maturity up to six months upon payment of a non-refundable extension fee. The interest rate is subject to an all-in floor of 3.92%.

Activity in the First Six Months of 2021

The following table includes details of the taxable GIL acquired during the six months ended June 30, 2021:

Property Name

Date Committed

Maturity Date

Initial Outstanding Balance

Total Commitment

Hope on Avalon

January 2021

2/1/2023 (1)

1,000,000

10,573,000

(1)

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