Other Assets

9 Months Ended

Sep. 30, 2022

Other Assets [Abstract]

Other Assets

12. Other Assets

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

	September 30, 2022		December 31, 2021
Deferred financing costs, net	$	1,085,136	$	1,349,097
Fair value of derivative instruments (Note 17)		6,855,221		343,418
Taxable mortgage revenue bonds, at fair value		13,528,034		3,428,443
Taxable governmental issuer loans		4,000,000		1,000,000
Bond purchase commitments, at fair value (Note 18)		-		964,404
Operating lease right-of-use assets, net		1,598,037		1,619,714
Other assets		2,650,240		2,157,809
Total other assets	$	29,716,668	$	10,862,885

As of September 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 GILs and taxable MRBs during construction and/or rehabilitation of the secured properties as of September 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 September 30, 2022, three taxable MRBs with a fair value of $9.0 million were held in trust in connection with TOB trust financings (Note 15).

Activity in the First Nine Months of 2022

The following table includes details of the taxable MRBs and taxable GILs acquired during the nine months ended September 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
Poppy Grove I (2)	September 2022	Elk Grove, CA	147	4/1/2025	6.78%		1,000,000
Poppy Grove II (2)	September 2022	Elk Grove, CA	82	4/1/2025	6.78%		1,000,000
Poppy Grove III (2)	September 2022	Elk Grove, CA	158	4/1/2025	6.78%		1,000,000
						$	7,625,000

(1)The Partnership has committed to provide total funding for this taxable 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%.

(2)The Partnership has committed to provide total funding for the Poppy Grove I, Poppy Grove II, and Poppy Grove III taxable GILs of $21.2 million, $10.9 million, and $24.5 million, respectively (see Note 18). The borrowers have the option to extend the maturities up to six months upon payment of non-refundable extension fees.

Activity in the First Nine Months of 2021

The following table includes details of the taxable GIL acquired during the nine months ended September 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.