Other Assets

6 Months Ended

Jun. 30, 2025

Other Assets [Abstract]

Other Assets

9. Other Assets

The following table summarizes the Partnership’s other assets as of June 30, 2025 and December 31, 2024:

	June 30, 2025			December 31, 2024
Deferred financing costs, net	$	1,035,869		$	653,510
Derivative instruments at fair value (Note 15)		2,103,718			6,980,820
Taxable mortgage revenue bonds, at fair value		34,742,457			26,671,085
Taxable governmental issuer loans:
Taxable governmental issuer loans		37,598,972			14,157,672
Allowance for credit losses (Note 10)		(212,000	)		(76,000	)
Taxable governmental issuer loans, net		37,386,972			14,081,672
Bond purchase commitment, at fair value (Note 16)		1,833,078			-
Other assets		2,050,724			1,462,333
Total other assets	$	79,152,818		$	49,849,420

The Partnership has remaining commitments to provide additional funding of the taxable MRBs and taxable GILs during construction and/or rehabilitation of the secured properties as of June 30, 2025. See Note 16 for further information regarding the Partnership’s remaining taxable GIL and taxable MRB funding commitments.

See Note 10 for information regarding the Partnership’s allowance for credit losses related to its taxable GILs and taxable MRBs.

See Note 20 for a description of the methodology and significant assumptions for determining the fair value of derivative instruments, taxable MRBs, taxable GILs, and bond purchase commitments. Unrealized gains or losses on derivative instruments are reported as “Net result from derivative transactions” in the Partnership’s condensed consolidated statements of operations. Unrealized gains and 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, 2025, nine taxable MRBs and three taxable GILs with reported carrying values totaling approximately $71.3 million were held in trust in connection with TOB trust financings (Note 13).

Activity in the First Six Months of 2025

The following table includes details of the taxable MRB acquired during the six months ended June 30, 2025:

Property Name	Month Acquired	Property Location	Maturity Date	Interest Rate	Initial Principal Funding		Total Commitment
Gateway and Yarbrough Predevelopment Project	June 2025	West Sacramento, CA	7/1/2026	9.00%	$	800,000	$	2,000,000

In February 2025, the borrower for the Poppy Grove I, Poppy Grove II, and Poppy Grove III taxable GILs re-allocated $5.2 million, $1.8 million, and $5.7 million, respectively, from a taxable GIL to a GIL (Note 5). There were no additional material changes to terms associated with the Poppy Grove I, Poppy Grove II, and Poppy Grove III GILs and taxable GILs. The following table summarizes terms of the principal repaid:

Property Name	Month Repaid	Property Location	Units	Original Maturity Date	Interest Rate	Principal Repaid
Poppy Grove I	February 2025	Elk Grove, CA	147	4/1/2025	6.78%	$	5,200,000
Poppy Grove II	February 2025	Elk Grove, CA	82	4/1/2025	6.78%		1,800,000
Poppy Grove III	February 2025	Elk Grove, CA	158	4/1/2025	6.78%		5,700,000
Total						$	12,700,000

In April 2025, the Partnership sold the Natchitoches taxable GIL to the Construction Lending JV at par plus accrued interest for gross proceeds of approximately $1.0 million. The Partnership also novated an interest rate swap associated with the expected TOB financing associated with the investment asset.

Activity in the First Six Months of 2024

The following table includes details of the taxable MRB acquired during the six months ended June 30, 2024:

Property Name	Date Committed	Maturity Date	Initial Principal Funding		Total Commitment
Woodington Gardens Apartments - Series A-2	April 2024	5/1/2029	$	2,577,000	$	2,577,000

The following taxable MRB and taxable GIL principal payments were received during the six months ended June 30, 2024:

Property Name	Redemption Date	Location	Units	Original Maturity Date	Interest Rate		Principal Outstanding at Date of Redemption
Taxable MRBs
Residency at the Mayer Series A-T (1)	March 2024	Hollywood, CA	79	10/1/2024	SOFR + 3.70%	(2)	$	11,500,000
Taxable GILs
Hope on Avalon	January 2024	Los Angeles, CA	88	2/1/2024	SOFR + 3.55%		$	10,573,000
Total							$	22,073,000

(1)The borrower re-allocated $11.5 million of previously provided funding from a taxable MRB to a new MRB during the acquisition and rehabilitation phase of the property.

(2)The interest rate is subject to an all-in floor of 3.95%.