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Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]  
Summary of Changes in Partnership's Allowance for Credit Losses

The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and six months ended June 30, 2024:

 

 

For the Three Months Ended June 30, 2024

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

$

1,166,000

 

 

$

41,000

 

 

$

1,628,000

 

 

$

456,000

 

 

$

3,291,000

 

Current provision for credit losses

 

 

(55,000

)

 

 

(5,000

)

 

 

320,000

 

 

 

(71,000

)

 

 

189,000

 

Balance, end of period

 

$

1,111,000

 

 

$

36,000

 

 

$

1,948,000

 

 

$

385,000

 

 

$

3,480,000

 

 

 

 

For the Six Months Ended June 30, 2024

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

$

1,294,000

 

 

$

77,000

 

 

 

2,048,000

 

 

$

678,000

 

 

$

4,097,000

 

Current provision for credit losses

 

 

(183,000

)

 

 

(41,000

)

 

 

(100,000

)

 

 

(293,000

)

 

 

(617,000

)

Balance, end of period

 

$

1,111,000

 

 

$

36,000

 

 

$

1,948,000

 

 

$

385,000

 

 

$

3,480,000

 

The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and six months ended June 30, 2023:

 

 

For the Three Months ended June 30, 2023

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

 

2,080,000

 

 

 

89,000

 

 

$

2,450,000

 

 

 

1,280,000

 

 

 

5,899,000

 

Current provision for credit losses

 

 

(243,000

)

 

 

6,000

 

 

 

(215,000

)

 

 

(322,000

)

 

 

(774,000

)

Balance, end of period

 

$

1,837,000

 

 

$

95,000

 

 

$

2,235,000

 

 

$

958,000

 

 

$

5,125,000

 

 

 

 

For the Six Months Ended June 30, 2023

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

$

-

 

 

$

-

 

 

$

495,000

 

 

$

-

 

 

$

495,000

 

Cumulative-effect adjustment upon adoption

 

 

2,145,000

 

 

 

79,000

 

 

 

2,108,000

 

 

 

1,617,000

 

 

 

5,949,000

 

Current provision for credit losses

 

 

(308,000

)

 

 

16,000

 

 

 

(368,000

)

 

 

(659,000

)

 

 

(1,319,000

)

Balance, end of period

 

$

1,837,000

 

 

$

95,000

 

 

$

2,235,000

 

 

$

958,000

 

 

$

5,125,000

 
Summary of Partnerships Carrying Value by Acquisition Year Grouped by Risk Rating

The following tables summarize the Partnership’s carrying value by acquisition year, grouped by risk rating as of June 30, 2024 and December 31, 2023:

 

 

June 30, 2024

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

13,600,000

 

 

$

81,337,300

 

 

$

119,620,000

 

 

$

-

 

 

$

-

 

 

$

214,557,300

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

13,600,000

 

 

 

81,337,300

 

 

 

119,620,000

 

 

 

-

 

 

 

-

 

 

 

214,557,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

-

 

 

$

3,000,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,000,000

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

-

 

 

 

3,000,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

7,250,000

 

 

$

6,787,992

 

 

$

48,773,157

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

62,811,149

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

495,000

 

 

 

495,000

 

Subtotal

 

 

7,250,000

 

 

 

6,787,992

 

 

 

48,773,157

 

 

 

-

 

 

 

-

 

 

 

495,000

 

 

 

63,306,149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfunded Commitments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

1,042,008

 

 

$

89,700,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

90,742,008

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

1,042,008

 

 

 

89,700,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

90,742,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

7,250,000

 

 

$

21,430,000

 

 

$

222,810,457

 

 

$

119,620,000

 

 

$

-

 

 

$

495,000

 

 

$

371,605,457

 

 

 

 

December 31, 2023

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

13,600,000

 

 

$

66,337,300

 

 

$

143,010,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

222,947,300

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

13,600,000

 

 

 

66,337,300

 

 

 

143,010,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

222,947,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

3,000,000

 

 

$

10,573,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

13,573,000

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

3,000,000

 

 

 

10,573,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13,573,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

7,358,876

 

 

$

48,140,860

 

 

$

66,107,874

 

 

$

-

 

 

 

-

 

 

$

453,594

 

 

$

122,061,204

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

495,000

 

 

 

-

 

 

 

495,000

 

Subtotal

 

 

7,358,876

 

 

 

48,140,860

 

 

 

66,107,874

 

 

 

-

 

 

 

495,000

 

 

 

453,594

 

 

 

122,556,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfunded Commitments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

6,909,378

 

 

$

104,700,000

 

 

$

12,977,426

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

124,586,804

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

6,909,378

 

 

 

104,700,000

 

 

 

12,977,426

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

124,586,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

27,868,254

 

 

$

222,178,160

 

 

$

232,668,300

 

 

$

-

 

 

$

495,000

 

 

$

453,594

 

 

$

483,663,308

 

 
MRB and taxable MRB investments [Member]  
Financing Receivable, Allowance for Credit Loss [Line Items]  
Summary of Changes in Partnership's Allowance for Credit Losses The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and six months ended June 30, 2024 and 2023:

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Balance, beginning of period

 

$

9,892,924

 

 

$

9,961,924

 

 

$

9,910,079

 

 

$

9,978,891

 

Current provision for credit loss (1)

 

 

(169,308

)

 

 

-

 

 

 

(169,308

)

 

 

-

 

Write-offs (1)

 

 

(5,542,921

)

 

 

-

 

 

 

(5,542,921

)

 

 

-

 

Recovery of prior credit loss (2)

 

 

(17,345

)

 

 

(17,345

)

 

 

(34,500

)

 

 

(34,312

)

Balance, end of period (3)

 

$

4,163,350

 

 

$

9,944,579

 

 

$

4,163,350

 

 

$

9,944,579

 
(1)
In connection with the final settlement of the bankruptcy estate of the Provision Center 2014-1 MRB in July 2024, the Partnership recovered approximately $169,000 of its previously recognized allowance for credit loss and the remainder of the allowance associated with the MRB was written off.
(2)
The Partnership compared the present value of cash flows expected to be collected to the amortized cost basis of the Live 929 Apartments Series 2022A MRB, which indicated a recovery of value. As the recovery was identified prior to the effective date of the CECL standard, the Partnership will accrete the recovery of prior credit loss into investment income over the term of the MRB.
(3)
The allowance for credit losses as of June 30, 2024 was related to the Live 929 Apartments – 2022A MRB. The allowance for credit losses as of June 30, 2023 was related to the Provision Center 2014-1 MRB and the Live 929 Apartments – 2022A MRB