Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Measurements [Abstract]

Summary of Range of Effective Yields and Weighted Average Effective Yields of Partnership's Investments

The range of effective yields and weighted average effective yields of the Partnership’s investments in MRBs, taxable MRBs and bond purchase commitments as of September 30, 2022 and December 31, 2021 are as follows:

	Range of Effective Yields		Weighted Average Effective Yields (1)
Security Type	September 30, 2022	December 31, 2021	September 30, 2022			December 31, 2021
Mortgage revenue bonds	3.2% - 21.0%	0.9% - 19.1%		5.5	%		3.1	%
Taxable mortgage revenue bonds	6.1% - 11.2%	4.0% - 8.1%		6.8	%		5.9	%
Bond purchase commitments	5.2%	3.2% - 3.3%		5.2	%		3.2	%

Summary of Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis as of September 30, 2022 are summarized as follows:

	Fair Value Measurements as of September 30, 2022
Description	Assets and Liabilities at Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets and Liabilities
Mortgage revenue bonds, held in trust	$	675,905,519		$	-	$	-	$	675,905,519
Mortgage revenue bonds		19,163,911			-		-		19,163,911
Taxable mortgage revenue bonds (reported within other assets)		13,528,034			-		-		13,528,034
Derivative financial instruments (reported within other assets)		6,855,221			-		6,471,662		383,559
Bond purchase commitments (reported within other liabilities)		(82,911	)		-		-		(82,911	)
Total Assets and Liabilities at Fair Value, net	$	715,369,774		$	-	$	6,471,662	$	708,898,112

Assets measured at fair value on a recurring basis as of December 31, 2021 are summarized as follows:

	Fair Value Measurements as of December 31, 2021
Description	Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Mortgage revenue bonds, held in trust	$	750,934,848	$	-	$	-	$	750,934,848
Mortgage revenue bonds		42,574,996		-		-		42,574,996
Bond purchase commitments (reported within other assets)		964,404						964,404
Taxable mortgage revenue bonds (reported within other assets)		3,428,443		-		-		3,428,443
Derivative instruments (reported within other assets)		343,418		-		-		343,418
Total Assets at Fair Value, net	$	798,246,109	$	-	$	-	$	798,246,109

Summary of Activity Related to Level 3 Assets and Liabilities

The following tables summarize the activity related to Level 3 assets for the three and nine months ended September 30, 2022:

	For the Three Months Ended September 30, 2022
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds (1)			Bond Purchase Commitments			Taxable Mortgage Revenue Bonds			Derivative Financial Instruments			Total
Beginning Balance July 1, 2022	$	727,278,997		$	8,953		$	11,457,256		$	398,280		$	739,143,486
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and    interest expense)		1,659,492			-			(4,860	)		1,298,340			2,952,972
Included in other comprehensive income		(22,467,010	)		(91,864	)		(221,686	)		-			(22,780,560	)
Purchases		1,623,437			-			2,300,000			-			3,923,437
Settlements		(13,025,486	)		-			(2,676	)		(1,313,061	)		(14,341,223	)
Ending Balance September 30, 2022	$	695,069,430		$	(82,911	)	$	13,528,034		$	383,559		$	708,898,112
Total amount of gains (losses) for the    period included in earnings attributable    to the change in unrealized gains (losses) relating to    assets or liabilities held on September 30, 2022	$	17,345		$	-		$	-		$	(14,509	)	$	2,836

(1)Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

	For the Nine Months Ended September 30, 2022
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds (1)			Bond Purchase Commitments			Taxable Mortgage Revenue Bonds			Derivative Financial Instruments			Total
Beginning Balance January 1, 2022	$	793,509,844		$	964,404		$	3,428,443		$	343,418		$	798,246,109
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and    interest expense)		1,877,774			-			(14,932	)		4,497,078			6,359,920
Included in other comprehensive income		(89,766,975	)		(1,047,315	)		(553,379	)		-			(91,367,669	)
Purchases		91,567,687			-			10,675,750			-			102,243,437
Settlements		(101,258,367	)		-			(7,848	)		(4,456,937	)		(105,723,152	)
Other (2)		(860,533	)		-			-			-			(860,533	)
Ending Balance September 30, 2022	$	695,069,430		$	(82,911	)	$	13,528,034		$	383,559		$	708,898,112
Total amount of gains for the    period included in earnings attributable    to the change in unrealized gains relating to assets or    liabilities held on September 30, 2022	$	39,968		$	-		$	-		$	107,617		$	147,585

(1)Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

(2)The other line is related to a re-allocation of the loan loss allowance upon restructuring of the Live 929 Apartments MRBs and property loan (Notes 6 and 10).

The following tables summarize the activity related to Level 3 assets and liabilities for the three and nine months ended September 30, 2021:

	For the Three Months Ended September 30, 2021
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds (1)			Bond Purchase Commitments		Taxable Mortgage Revenue Bonds			Interest Rate Derivatives			Total
Beginning Balance July 1, 2021	$	777,990,096		$	392,515	$	1,462,862		$	321,372		$	780,166,845
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and    interest expense)		34,331			-		-			1,751,136			1,785,467
Included in other comprehensive income		(4,561,683	)		8,708		(24,463	)		-			(4,577,438	)
Purchases		3,995,000			-		1,000,000			-			4,995,000
Settlements		(33,819,427	)		-		(2,445	)		(1,760,707	)		(35,582,579	)
Ending Balance September 30, 2021	$	743,638,317		$	401,223	$	2,435,954		$	311,801		$	746,787,295
Total amount of losses for the    period included in earnings attributable    to the change in unrealized losses relating to assets or    liabilities held on September 30, 2021	$	-		$	-	$	-		$	(9,261	)	$	(9,261	)

(1)Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

	For the Nine Months Ended September 30, 2021
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds (1)			Bond Purchase Commitments			Taxable Mortgage Revenue Bonds			Interest Rate Derivatives			Total
Beginning Balance January 1, 2021	$	794,432,485		$	431,879		$	1,510,437		$	321,503		$	796,696,304
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and    interest expense)		103,292			-			-			5,326,329			5,429,621
Included in earnings (provision for credit loss)		(900,080	)		-			-			-			(900,080	)
Included in other comprehensive income		(18,884,461	)		(30,656	)		(67,309	)		-			(18,982,426	)
Purchases		12,946,500			-			1,000,000			-			13,946,500
Settlements		(44,059,419	)		-			(7,174	)		(5,336,031	)		(49,402,624	)
Ending Balance September 30, 2021	$	743,638,317		$	401,223		$	2,435,954		$	311,801		$	746,787,295
Total amount of losses for the    period included in earnings attributable    to the change in unrealized losses relating to assets or    liabilities held on September 30, 2021	$	(900,080	)	$	-		$	-		$	(11,304	)	$	(911,384	)

(1)Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

Summary of Fair Value of Partnership's Financial Liabilities

The table below summarizes the fair value of the Partnership’s financial liabilities as of September 30, 2022 and December 31, 2021:

	September 30, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:
Debt financing	$	962,615,366	$	952,670,119	$	820,078,714	$	854,428,834
Secured lines of credit		30,942,000		30,942,000		45,714,000		45,714,000
Mortgages payable and other secured financing		26,230,855		26,231,893		26,824,543		26,825,840