Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Summary of Partnership's Bond Purchase Commitments

The following table summarizes the Partnership’s bond purchase commitments as of March 31, 2025:


Bond Purchase Commitments	Commitment Date	Maximum Committed Amounts Remaining		Interest Rate			Estimated Closing Date	Fair Value as of March 31, 2025
Kindred Apartments	March 2025	$	21,921,000		6.875	%	December 2027	$	-

Summary of Partnership's Total and Remaining Commitments


Property Name	Commitment Date	Asset Maturity Date	Interest Rate	Total Commitment		Remaining Commitment as of March 31, 2025
Mortgage Revenue Bonds
Meadow Valley	December 2021	December 2029	6.25%	$	44,000,000	$	1,935,000
Residency at Empire - Series BB-4	December 2022	December 2040	6.45% (1)		47,000,000		18,350,000
Subtotal					91,000,000		20,285,000

Taxable Mortgage Revenue Bonds
Residency at Empire - Series BB-T	December 2022	December 2025 (2)	7.45%	$	9,404,500	$	8,404,500

Governmental Issuer Loans
Poppy Grove III	September 2022	October 2025	6.78%	$	44,819,507	$	1,569,507
Natchitoches Thomas Apartments	December 2024	July 2027 (2)	7.92%		19,000,000		12,500,000
Subtotal					63,819,507		14,069,507

Taxable Governmental Issuer Loans
Poppy Grove II	September 2022	October 2025	6.78%	$	9,141,300	$	3,941,300
Poppy Grove III	September 2022	October 2025	6.78%		18,780,493		17,780,493
Natchitoches Thomas Apartments	December 2024	July 2027 (2)	7.92%		4,000,000		3,000,000
Subtotal					31,921,793		24,721,793

Property Loans
Sandoval Flats	November 2024	December 2027 (2)	7.48%	$	29,846,000	$	28,846,000

Equity Investments
Vantage at San Marcos (3), (4)	November 2020	N/A	N/A	$	9,914,529	$	8,943,914
Freestone Greeley (4)	October 2022	N/A	N/A		16,035,710		10,562,345
Freestone Ladera	December 2023	N/A	N/A		17,097,624		1,161,484
Subtotal					43,047,863		20,667,743

Bond Purchase Commitments
Kindred Apartments	March 2025	December 2027	6.875%	$	21,921,000	$	21,921,000

Total Commitments				$	290,960,663	$	138,915,543

(1)

Upon stabilization, the MRB will convert to a fixed rate of 10.00% and become subordinate to the other senior MRBs of the borrower.

(2)

The borrowers may elect to extend the maturity date for a period ranging between six and twelve months upon meeting certain conditions, which may include payment of a non-refundable extension fee.

(3)

The property became a consolidated VIE effective during the fourth quarter of 2021 (Note 3).

(4)

A development site has been identified for this property but construction had not commenced as of March 31, 2025.

In addition, the Partnership is committed to funding 10% of the capital for the Construction Lending JV with the remainder to be funded by a third-party investor with each party contributing its proportionate capital contributions upon funding of future investments. The Partnership’s capital will be contributed on a draw-down basis over the term of the underlying investments of the Construction Lending JV. As of March 31, 2025, the Partnership’s maximum capital commitment is approximately $8.3 million. However, the maximum commitment may increase if additional third-party capital commitments are obtained by the Construction Lending JV.

Construction Loan Guaranties

The Partnership entered into limited guaranty agreements for bridge loans related to certain investments in unconsolidated entities. The Partnership will only have to perform on the guaranties if a default by the borrower were to occur. The Partnership has not accrued any amount for these contingent liabilities because the Partnership believes the likelihood of guaranty claims is remote. The following table summarizes the Partnership’s maximum exposure under these guaranty agreements as of March 31, 2025:


Borrower	Guaranty Maturity	Maximum Balance Available on Loan		Loan Balance as of March 31, 2025		Partnership's Maximum Exposure as of March 31, 2025		Guaranty Terms
Vantage at McKinney Falls	2026	$	35,850,000	$	35,850,000	$	17,925,000	(1)
Vantage at Hutto	2026		35,000,000		35,000,000	$	17,500,000	(1)
Vantage at Loveland	2026		47,000,000		47,000,000	$	23,500,000	(1)

(1)

The Partnership’s guaranty is for 50% of the loan balance. The Partnership has guaranteed up to 100% of the outstanding loan balance upon the occurrence of fraud or other willful misconduct by the borrower or if the borrower voluntarily files for bankruptcy. The guaranty agreement requires the Partnership to maintain a minimum net worth of not less than $100.0 million and maintain liquid assets of not less than $6.3 million at the end of each quarter. The Partnership was in compliance with these requirements as of March 31, 2025. The Partnership has also provided indemnification to the lender for various costs including interest expenses, environmental non-compliance and remediation during the term. The Partnership has also provided indemnification to the lender for Vantage at McKinney Falls and Vantage at Loveland for certain operating costs.

Summary of Partnership's Maximum Exposure Under Guaranty Agreements

The following table summarizes the Partnership’s maximum exposure under these guaranty agreements as of March 31, 2025:


Borrower	Guaranty Maturity	Maximum Balance Available on Loan		Loan Balance as of March 31, 2025		Partnership's Maximum Exposure as of March 31, 2025		Guaranty Terms
Vantage at McKinney Falls	2026	$	35,850,000	$	35,850,000	$	17,925,000	(1)
Vantage at Hutto	2026		35,000,000		35,000,000	$	17,500,000	(1)
Vantage at Loveland	2026		47,000,000		47,000,000	$	23,500,000	(1)

(1)

The following table summarizes the Partnership’s maximum exposure under these guaranty agreements as of March 31, 2025:


Limited Partnership(s)	End of Guaranty Period	Partnership's Maximum Exposure as of March 31, 2025
Ohio Properties	2026	$	1,609,695
Greens of Pine Glen, LP	2027		1,278,767