5. Investments in Mortgage Revenue Bonds

Each of the mortgage revenue bonds were issued by various state and local governments, their agencies and authorities to finance the construction or rehabilitation of income-producing real estate properties. However, the mortgage revenue bonds do not constitute an obligation of any state or local government, agency or authority and no state or local government, agency or authority is liable on them, nor is the taxing power of any state or local government pledged to the payment of principal or interest on the mortgage revenue bonds. The mortgage revenue bonds are non-recourse obligations of the respective owners of the properties. The sole source of the funds to pay principal and interest on the mortgage revenue bonds is the net cash flow or the sale or refinancing proceeds from the properties. Each mortgage revenue bond, however, is collateralized by a mortgage on all real and personal property included in the related property and bears interest at a fixed rate and four of the mortgage revenue bonds provide for the payment of additional contingent interest that is payable solely from available net cash flow generated by the financed property.

The mortgage revenue bonds owned by the Company have been issued to provide construction and/or permanent financing of multifamily residential properties. The carrying value of each of the Partnership's mortgage revenue bonds as of December 31, 2013 and 2012 is as follows:



	December 31, 2013
Description of Mortgage	Cost adjusted		Unrealized		Unrealized			Estimated
Revenue Bonds	for Pay-downs		Gain		Loss			Fair Value
Arbors at Hickory Ridge ⁽²⁾	$	11,576,209	$	225,690	$	—		$	11,801,899
Ashley Square ⁽¹⁾	5,212,000		—		—			5,212,000
Autumn Pines⁽²⁾	12,147,873		—		(195,355		)	11,952,518
Avistar at Chase Hill A Bond ⁽²⁾	8,960,000		—		(850,752		)	8,109,248
Avistar at the Crest A Bond ⁽²⁾	8,759,000		—		(1,298,785		)	7,460,215
Avistar at the Oaks ⁽²⁾	8,354,000		—		(1,103,115		)	7,250,885
Avistar in 09 ⁽²⁾	7,192,000		—		(588,254		)	6,603,746
Avistar on the Boulevard A Bond ⁽²⁾	13,760,000		—		(1,306,512		)	12,453,488
Avistar on the Hills ⁽²⁾	5,389,000		—		(417,724		)	4,971,276
Bella Vista⁽¹⁾	6,545,000		—		(473,989		)	6,071,011
Bridle Ridge ⁽¹⁾	7,715,000		—		(452,870		)	7,262,130
Brookstone⁽¹⁾	7,463,641		841,751		—			8,305,392
Cross Creek⁽¹⁾	6,042,297		1,480,266		—			7,522,563
Greens Property A Bond ⁽²⁾	8,437,501		—		(577,426		)	7,860,075
Lake Forest ⁽¹⁾	8,997,000		—		(289,461		)	8,707,539
Lost Creek⁽¹⁾	15,883,084		1,743,088		—			17,626,172
Ohio Properties A Bonds ⁽¹⁾	14,498,000		—		—			14,498,000
Runnymede⁽¹⁾	10,525,000		—		(551,510		)	9,973,490
Southpark ⁽¹⁾	11,878,885		1,018,750		—			12,897,635
The Suites on Paseo ⁽²⁾	35,750,000		—		(2,502		)	35,747,498
Woodlynn Village⁽¹⁾	4,426,000		—		(340,979		)	4,085,021
Mortgage revenue bonds held in trust	$	219,511,490	$	5,309,545	$	(8,449,234	)	$	216,371,801

(1) Bonds owned by ATAX TEBS I, LLC, Note 11

(2) Bond held by Deutsche Bank in a secured financing transaction, Note 11



	December 31, 2013
Description of Mortgage	Cost adjusted		Unrealized		Unrealized			Estimated
Revenue Bonds	for Pay-downs		Gain		Loss			Fair Value
Avistar at Chase Hill B Bond	$	2,005,000	$	—	$	(159,117	)	$	1,845,883
Avistar at the Crest B Bond	1,700,000		—		(134,912		)	1,565,088
Avistar on the Boulevard B Bond	3,216,000		—		(255,222		)	2,960,778
Copper Gate Apartments	5,220,000		—		(252,648		)	4,967,352
Greens Property B Bond	948,291		189,589		—			1,137,880
Ohio Properties B Bonds	3,583,590		150,864		—			3,734,454
Renaissance	7,975,000		—		(16,964		)	7,958,036
The Palms at Premier Park	20,152,000		—		(283,942		)	19,868,058
Tyler Park Apartments	8,100,000		—		(526,601		)	7,573,399
Vantage at Harlingen	6,692,000		—		(211,735		)	6,480,265
Vantage at Judson	6,049,000		—		(190,423		)	5,858,577
Westside Village Market	5,400,000		—		(403,400		)	4,996,600
Mortgage revenue bonds	$	71,040,881	$	340,453	$	(2,434,964	)	$	68,946,370



	December 31, 2012
Description of Mortgage	Cost adjusted		Unrealized		Unrealized			Estimated
Revenue Bonds	for Pay-downs		Gain		Loss			Fair Value
Ashley Square⁽¹⁾	$	5,260,000	$	246,981	$	—		$	5,506,981
Autumn Pines ⁽²⁾	12,217,004		953,024		—			13,170,028
Bella Vista⁽¹⁾	6,600,000		93,324		—			6,693,324
Bridle Ridge ⁽¹⁾	7,765,000		108,632		—			7,873,632
Brookstone ⁽¹⁾	7,453,246		1,459,408		—			8,912,654
Cross Creek⁽¹⁾	6,004,424		1,994,911		—			7,999,335
Lost Creek ⁽¹⁾	15,987,744		3,467,182		—			19,454,926
Runnymede ⁽¹⁾	10,605,000		491,330		—			11,096,330
Southpark ⁽¹⁾	11,904,968		2,462,350		—			14,367,318
Woodlynn Village ⁽¹⁾	4,460,000		—		(446		)	4,459,554
Mortgage Revenue Bonds held in trust	$	88,257,386	$	11,277,142	$	(446	)	$	99,534,082

Description of Mortgage	Cost adjusted		Unrealized		Unrealized			Estimated
Revenue Bonds	for Pay-downs		Gain		Loss			Fair Value
Arbors at Hickory Ridge	$	11,581,485	$	610,785	$	—		$	12,192,270
Iona Lakes	$	15,535,000	$	554,910	$	—		$	16,089,910
Vantage at Judson	6,049,000		—		(847		)	6,048,153
Woodland Park	15,662,000		—		(4,289,039		)	11,372,961
Mortgage revenue bonds	$	48,827,485	$	1,165,695	$	(4,289,886	)	$	45,703,294

(1) Bonds owned by ATAX TEBS I, LLC, Note 11

(2) Bond held by Deutsche Bank in a secured financing transaction, Note 11

Valuation - As all of the Company's investments in mortgage revenue bonds are classified as available-for-sale securities, they are carried on the balance sheets at their estimated fair values. Due to the limited market for the mortgage revenue bonds, these estimates of fair value do not necessarily represent what the Company would actually receive in a sale of the bonds. There is no active trading market for the bonds and price quotes for the bonds are not generally available. As of December 31, 2013 and December 31, 2012, all of the Company's mortgage revenue bonds were valued using discounted cash flow or yield to maturity analysis performed by management. Management's valuation encompasses judgment in its application. The key assumption in management's yield to maturity analysis is the range of effective yields on the individual bonds. At December 31, 2013, the range of effective yields on the individual bonds was 6.3% to 9.8% per annum. Additionally, the Company calculated the sensitivity of the key assumption used in calculating the fair values of these bonds. Assuming an immediate ten percent adverse change in the key assumption, the effective yields on the individual bonds would increase to a range of 6.9% to 10.8% per annum and would result in additional unrealized losses on the bond portfolio of approximately $22.1 million. This sensitivity analysis is hypothetical and is as of a specific point in time. The results of the sensitivity analysis may not be indicative of actual changes in fair value and should be used with caution. If available, the general partner may also consider price quotes on similar bonds or other information from external sources, such as pricing services. Pricing services, broker quotes and management's analysis provide indicative pricing only.

Unrealized gains or losses on these mortgage revenue bonds are recorded in accumulated other comprehensive income (loss) 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 underlying properties. As of December 31, 2013, two bonds, Woodlynn Village and Vantage at Judson, have been in an unrealized loss position for greater than twelve months. The Company has reviewed each of its mortgage revenue bonds for impairment. Based upon this evaluation, the current unrealized losses on these two bonds are not considered to be other-than-temporary. If yields on new issuance of tax-exempt investments increase, the Company experiences deterioration in the estimated fair values of its investment portfolio, or if the Company's intent and ability to hold certain bonds changes, the Company may incur impairments to its investment portfolio which could negatively impact the Company's financial condition, cash flows, and reported earnings. The Company has the intent and ability to hold both of these mortgage revenue bonds until their stated maturity.

The Avistar at Chase Hill, Avistar at the Crest, Avistar at the Oaks, Avistar in 09, Avistar on the Boulevard, Avistar on the Hills, The Suites on Paseo, Copper Gate, Renaissance, The Palms at Premier Park, Tyler Park Apartments, Vantage at Harlingen, and Westside Village Market mortgage revenue bonds were purchased in 2013 so they have been in unrealized loss positions for less than twelve months. The Greens Property A mortgage revenue bond has been reported due to the realized sale of the Greens Property in 2013, so reports an unrealized loss position for less than twelve months (Note 10). As the Lake Forest VIE was deconsolidated in 2013, the mortgage revenue bond reports an unrealized loss position for less than twelve months in 2013 (Note 4). In addition, Autumn Pines, Bella Vista, Bridle Ridge and Runnymede mortgage revenue bonds report unrealized losses for less than twelve months.

The Company's ability to recover the mortgage revenue bonds' entire amortized cost basis is dependent upon the issuer being able to meet debt service requirements. The primary source of repayment is the cash flows produced by the property which serves as the collateral for the bonds. The Company utilizes a discounted cash flow model for the underlying property and compares the results of the model to the amortized cost basis of the bond. These models reflect the cash flows expected to be generated by the underlying properties over a ten year period, including an assumed property sale at the end of year ten, discounted using the effective interest rate on the bonds in accordance with the accounting guidance on other-than-temporary impairment of debt securities. The revenue, expense, and resulting net operating income projections which are the basis for the discounted cash flow model are based on judgment.

Recent Bond Activity

In December 2013, the Partnership acquired seven mortgage revenue bonds. They are as follows:


•	The Partnership purchased an approximate $5.2 million par value Series A mortgage revenue bond with a stated interest rate of 6.25% per annum secured by Copper Gate Apartments, a 128 unit multifamily complex in Lafayette, Indiana, maturing on December 1, 2029.

•

The Partnership purchased an approximate $6.1 million par value senior and an approximate $2.0 million par value subordinate mortgage revenue bonds with stated interest rates of 5.75% and 5.5% per annum, respectively. These mortgage revenue bonds are secured by Tyler Park Townhomes, an 88 unit multifamily complex in Greenfield, California. The senior mortgage revenue bond matures on January 1, 2030 and the subordinate mortgage revenue bond matures on January 1, 2016.

•

The Partnership purchased an approximate $4.0 million par value senior and an approximate $1.4 million par value subordinate mortgage revenue bonds with stated interest rates of 5.75% and 5.5% per annum, respectively. These mortgage revenue bonds are secured by Westside Village, an 81 unit multifamily complex in Shafter, California; The senior mortgage revenue bond matures on January 1, 2030 and the subordinate mortgage revenue bond matures on January 1, 2016.


•	The Partnership purchased an approximate $20.2 million par value Series A mortgage revenue bond with a stated interest rate of 6.25% per annum secured by The Palms at Premier Park Apartments, a 240 unit multifamily complex in Columbia, South Carolina. This mortgage revenue bond matures on January 1, 2050.


•	The Partnership purchased an approximate $35.8 million par value Series A mortgage revenue bond with a stated interest rate of 6.25% per annum secured by The Suites on Paseo, a 384 bed student housing project in San Diego, California. This mortgage revenue bond matures on December 1, 2048.

Effective December 1, 2013, the ownership of Lake Forest became a not-for-profit entity, a reconsideration event, and Lake Forest ceased to be reported as a Consolidated VIE. As such, the Partnership is reporting the estimated fair value of the Lake Forest mortgage revenue bond as an investment asset for the first time in 2013.

In August 2013, the Partnership acquired a mortgage revenue bond secured by the Vantage at Harlingen Apartments, a 288 unit multifamily apartment complex located in Harlingen, Texas which is under construction. The Series C bond was purchased for approximately $6.7 million par value, carries a base interest rate of 9.0% per annum, and matures on October 1, 2053. The Partnership also acquired an approximate $1.3 million subordinate taxable bond which is recorded as an Other Asset. The Vantage at Harlingen Apartments has a construction loan with an unrelated bank and the Partnership's mortgage revenue bonds are second lien borrowings to that construction loan.

Under the terms of a Forward Delivery Bond Purchase Agreement, the Partnership has agreed to purchase a new mortgage revenue bond between $18.0 million to approximately $24.7 million (“Harlingen Series B Bond”) secured by the Vantage at Harlingen apartments which will be delivered by the mortgage revenue bond issuer once the property meets specific obligations and occupancy rates. The final amount of the Series B Bond will depend on the appraisal of the stabilized property. The Harlingen Series B Bond will have a stated annual interest rate of 6.0% per annum and bond proceeds must be used to pay off the construction loan to the bank and all or a portion of the $6.7 million subordinate Series C mortgage revenue bond. The Partnership accounts for the bond purchase commitment as an available-for-sale security and, as such, records the change in the estimated fair value of the bond purchase commitment as an asset or liability with changes in such valuation recorded in other comprehensive income. As of December 31, 2013, the Partnership estimated the value of this Bond Purchase Commitment and recorded a liability of approximately $1.7 million.

During the first quarter of 2013, BC Partners contributed $6.5 million of capital into the Ohio Properties which allowed the Company to recognize a sale of the discontinued operations (Note 9). As such, the Partnership is reporting the estimated fair value of the Ohio Properties’ mortgage revenue bonds as assets in the consolidated balance sheet for the first time in 2013.

In July 2013, the limited partner property owner contributed approximately $800,000 of additional capital into the Greens Property which allowed the Company to recognize a sale of the discontinued operations (Note 9). As such, the Partnership is reporting the estimated fair value of the Green Property mortgage revenue bonds as an asset in the consolidated balance sheet for the first time in 2013.

In June 2013, the Partnership redeemed its interest in the Iona Lakes mortgage revenue bond for approximately $21.9 million. This redemption resulted in the realization of approximately $6.5 million in contingent interest income and approximately $4.6 million realized loss on a taxable property loan. The trust indenture for this bond had a waterfall feature which stipulated that all unpaid contingent interest must be paid prior to making payment on any taxable loan between the owner of the bond and the property.

In June 2013, the Partnership acquired six mortgage revenue bonds secured by three properties located in San Antonio, Texas. The mortgage revenue bond purchases are as follows: approximately $5.9 million par value Series A and approximately $2.5 million par value Series B mortgage revenue bonds secured by the Avistar at the Oaks Apartments, a 156 unit multifamily apartment complex; approximately $3.1 million Series A and approximately $2.3 million Series B mortgage revenue bonds secured by the Avistar on the Hills Apartments, a 129 unit multifamily apartment complex; and approximately $5.5 million Series A and approximately $1.7 million Series B mortgage revenue bonds secured by Avistar in 09 Apartments, a 133 unit multifamily apartment complex. The three Series A mortgage revenue bonds each carry an annual interest rate of 6.0% per annum and mature on August 1, 2050. The three Series B mortgage revenue bonds each carry an annual base interest rate of 9.0% per annum and mature on September 1, 2050. The Partnership also acquired approximately $831,000 of taxable mortgage revenue bonds which also carry a base interest rate of 9.0% per annum and mature on September 1, 2050. The Company has determined that the entity which owns the three properties is an unrelated not-for-profit which under the accounting guidance is not subject to applying the VIE consolidation guidance. As a result, the properties' financial statements are not consolidated into the consolidated financial statements of the Company.

On May 29, 2013 the Partnership received the Sheriff's deed conveying title of the Woodland Park property to a wholly-owned subsidiary of the Partnership which settled the ongoing foreclosure of this mortgage revenue bond. Woodland Park became an MF Property upon title conveyance (Note 8). The Partnership is converting the property to a market rate rent execution to maximize its value but may look to turn it back to an affordable rental property and then seek to place new mortgage revenue bond financing on the property and acquire the bonds.

In April 2013, the Partnership acquired the Series C mortgage revenue bond secured by the Renaissance Gateway Apartments, a 208 unit multifamily apartment complex located in New Orleans, Louisiana for approximately $2.9 million par value. In the third and fourth quarters of 2013, the Partnership purchased approximately $1.3 million par value Series B and approximately $3.9 million par value Series A, respectively, mortgage revenue bonds. The Series C mortgage revenue bond carries a base interest rate of 12.0% per annum and matures on June 1, 2015. The Series A and Series B mortgage revenue bonds carry a base interest rate of 6.0% and 12.0% per annum, respectively, maturing on June 1, 2030. This property is undergoing a major rehabilitation and the Partnership has agreed to fund a total of approximately $8.6 million of a Series A mortgage revenue bond during construction which is estimated to be completed on June 30, 2014. Upon completion of construction and stabilization, the approximate $2.9 million Series C bond will be paid back on the earlier of when the property receives its final equity contribution by the limited partner or June 1, 2015. The Partnership accounts for the Bond Purchase Commitment as an available-for-sale security and, as such, records the change in estimated fair value of the Bond Purchase Commitment as an asset or liability with changes in such valuation recorded in other comprehensive income. As of December 31, 2013, the Partnership estimated the value of this Bond Purchase Commitment and recorded a liability of approximately $600,000.

In February 2013, the Partnership acquired six mortgage revenue bonds secured by three properties located in San Antonio, Texas. The bond purchases are as follows: approximately $13.8 million par value Series A and approximately $3.2 million par value Series B mortgage revenue bonds secured by the Avistar on the Boulevard, a 344 unit multifamily apartment complex; approximately $9.0 million Series A and approximately $2.0 million Series B mortgage revenue bonds secured by the Avistar at Chase Hill, a 232 unit multifamily apartment complex; and approximately $8.8 million Series A and approximately $17.0 million Series B mortgage revenue bonds secured by Avistar at the Crest, a 200 unit multifamily apartment complex. The three Series A mortgage revenue bonds each carry an annual interest rate of 6.0% per annum and mature on March 1, 2050. The three Series B mortgage revenue bonds each carry an annual base interest rate of 9.0% per annum and mature on April 1, 2050. The Partnership also acquired approximately $804,000 of taxable mortgage revenue bonds which also carry a base interest rate of 9.0% per annum and mature on April 1, 2050. The Company has determined that the entity which owns the three Avistar properties is an unrelated not-for-profit which under the accounting guidance is not subject to applying the VIE consolidation guidance. As a result, the properties' financial statements are not consolidated into the consolidated financial statements of the Company.

In December 2012, the Partnership purchased an approximate $6.0 million subordinate mortgage revenue bond and a $934,000 subordinate taxable bond both secured by the Vantage at Judson apartments. This property is located in San Antonio, Texas and is currently under construction. Both bonds mature on February 1, 2053 and carry an annual cash interest rate of 9.0% per annum plus allow for an additional 3% per annum of interest calculated on the property's cash flows after debt service. The Vantage at Judson apartments has a construction loan with an unrelated Bank and the Partnership's bonds are second lien borrowings to that construction loan. The property will have 288 units when construction is completed in the spring of 2014. The Company has determined that the entity which owns Vantage at Judson apartments is an unrelated not-for-profit which under the accounting guidance is not subject to applying the VIE consolidation guidance. As a result, the property's financial statements are not consolidated into the consolidated financial statements of the Company.

Under the terms of a Forward Delivery Bond Purchase Agreement, the Partnership has agreed to purchase a new mortgage revenue bond of up to $26.7 million (“Series B Bonds”) which will be delivered by the mortgage revenue bond issuer once the property meets specific obligations and occupancy rates. The Series B Bonds will have a stated annual interest rate of 6.0% per annum and bond proceeds must be used to pay off the construction loan to the Bank and all or a portion of the approximately $6.0 million subordinate mortgage revenue bond. If the property does not meet its specific obligations and required occupancy rate before January 1, 2015, the Partnership has the right to terminate the purchase commitment. The Partnership accounts for the bond purchase agreement as an available-for-sale security and, as such, records the estimated value of the forward purchase commitment as an asset or liability with changes in such valuation recorded in other comprehensive income. As of December 31, 2013, the Partnership has estimated the value of this bond purchase commitment and recorded a liability of approximately $2.0 million. As of December 31, 2012, the Partnership had concluded there was no value to the forward purchase commitment.

In June 2012, the Partnership acquired a $10.0 million restructured par value mortgage revenue bond secured by Arbors at Hickory Ridge Apartments, a 348 unit multifamily apartment complex located in Memphis, Tennessee, which represented 100% of the bond issuance for approximately $10.2 million. The mortgage revenue bond carried an annual interest rate of 7.98% per annum and matures on April 1, 2026. The bond did not provide for contingent interest. In conjunction with the purchase of the Arbors of Hickory Ridge mortgage revenue bond, an affiliate of the Global Ministries Foundation, a not-for-profit entity unrelated to the Company acquired the multi-family property securing the bond. At closing, the Company also secured a $600,000 promissory note receivable as a fee for identifying this property acquisition and performing the related due diligence.

In December 2012, the mortgage revenue bond secured by Arbors at Hickory Ridge Apartments was restructured to an $11.5 million par value mortgage revenue bond with an annual interest rate of 6.25% per annum and maturity of December 1, 2049. The Partnership then purchased 100% of this bond issuance plus a taxable loan of approximately $191,000 for a payment of approximately $1.0 million made at closing. In connection with the closing of the restructured mortgage revenue bond, the Company received payment in full of the $600,000 promissory note less costs associated with the transaction and approximately $557,000 has been recorded as other income.

In October 2012, the Company acquired 100% of the $9.5 million mortgage revenue bonds issued by the North Carolina Housing Finance Agency as part of a plan of financing for the acquisition and rehabilitation of the Greens Property. The mortgage revenue bonds secured by the Greens Property were acquired by the Company at par and consisted of two series. The Series A bond has a par value of approximately $8.5 million and bears interest at an annual rate of 6.5% per annum. The Series B bond has a par value of approximately $1.0 million and bears interest at an annual interest rate of 12.0% per annum. Both series of bonds mature on October 1, 2047. In connection with the bond financing transaction, ownership of the Greens Property was conveyed by the Company to a new ownership entity controlled by an unaffiliated not-for-profit entity. However, because the new ownership entity did not have sufficient equity capital at the time of purchase and the property operations are the sole source of debt service on the Company's bonds, the Company is required to continue to account for the Greens Property as if it is the owner of real estate rather than as a secured lender. As such, the Company continues to report the results from the Greens Property as discontinued operations in its financial statements as of December 31, 2012 which, among other things, results in the elimination of the bonds in consolidation (Note 10).

In May 2012, the mortgage revenue bonds secured by GMF-Madison Tower Apartments and GMF-Warren/Tulane Apartments were sold for an amount greater than the outstanding principal and accrued base interest. The Company received approximately $4.1 million for the GMF-Madison Tower Apartments mortgage revenue bond and approximately $12.7 million from the GMF-Warren/Tulane Apartments mortgage revenue bond resulting in an approximate $668,000 realized gain. These mortgage revenue bonds had been acquired at par on June 1, 2011. At December 31, 2012, the Partnership still owns the taxable revenue bonds secured by these two properties. The taxable bond secured by GMF-Madison Tower Apartments carries an annual interest rate of 7.75% per annum and matures on December 1, 2019. The taxable bond secured by GMF-Warren/Tulane Apartments carries an annual interest rate of 6.5% per annum and matures on December 1, 2015. These taxable bonds were also acquired on June 1, 2011 and have an outstanding combined principal balance of $600,000 as of December 31, 2012.

The properties securing the Company's mortgage revenue bonds are geographically dispersed throughout the United States with significant concentration in San Antonio, Texas. As of December 31, 2013 and 2012, the concentration in San Antonio, Texas, as a percentage of principal outstanding, was approximately 30% and 17%. The Suites on Paseo property in San Diego, California represents 12% of the outstanding principal of the mortgage revenue bonds as of December 31, 2013.

Descriptions of certain terms of the mortgage revenue bonds are as follows:



Property Name	Location	Maturity Date	Base Interest Rate		Principal Outstanding at Dec. 31, 2013

Arbors at Hickory Ridge ⁽²⁾	Memphis, TN	12/1/2049	6.25	%	$	11,450,000
Ashley Square ⁽¹⁾	Des Moines, IA	12/1/2025	6.25	%	5,212,000
Autumn Pines ⁽²⁾	Humble, TX	10/1/2046	5.80	%	13,110,000
Avistar on the Boulevard - Series A ⁽²⁾	San Antonio, TX	3/1/2050	6.00	%	13,760,000
Avistar at Chase Hill - Series A ⁽²⁾	San Antonio, TX	3/1/2050	6.00	%	8,960,000
Avistar at the Crest - Series A ⁽²⁾	San Antonio, TX	3/1/2050	6.00	%	8,759,000
Avistar (February 2013 Acquisition) - Series B (3 Bonds)	San Antonio, TX	4/1/2050	9.00	%	6,921,000
Avistar at the Oak - Series A ⁽²⁾	San Antonio, TX	8/1/2050	6.00	%	5,878,000
Avistar in 09 - Series A ⁽²⁾	San Antonio, TX	8/1/2050	6.00	%	5,482,000
Avistar on the Hill - Series A ⁽²⁾	San Antonio, TX	8/1/2050	6.00	%	3,091,000
Avistar (June 2013 Acquisition) - Series B (3 Bonds) ⁽²⁾	San Antonio, TX	9/1/2050	9.00	%	6,484,000
Bella Vista ⁽¹⁾	Gainesville, TX	4/1/2046	6.15	%	6,545,000
Bridle Ridge ⁽¹⁾	Greer, SC	1/1/2043	6.00	%	7,715,000
Brookstone ⁽¹⁾	Waukegan, IL	5/1/2040	5.45	%	9,338,603
Copper Gate Apartments	Lafayette, IN	12/1/2029	6.25	%	5,220,000
Cross Creek ⁽¹⁾	Beaufort, SC	3/1/2049	6.15	%	8,497,933
Greens of Pine Glen - Series A ⁽²⁾	Durham, NC	10/1/2047	6.50	%	8,437,501
Greens of Pine Glen - Series B ⁽²⁾	Durham, NC	10/1/2047	12.00	%	948,291
Lake Forest Apartments ⁽¹⁾	Daytona Beach, FL	12/1/2031	6.25	%	8,997,000
Ohio Bond - Series A ⁽²⁾	Ohio	6/1/2050	7.00	%	14,498,000
Ohio Bond - Series B	Ohio	6/1/2050	10.00	%	3,583,590
Renaissance - Series A	Baton Rouge, LA	6/1/2050	6.00	%	3,850,000
Renaissance - Series B	Baton Rouge, LA	6/1/2050	12.00	%	1,250,000
Renaissance - Series C	Baton Rouge, LA	6/1/2015	12.00	%	2,875,000
Runnymede ⁽¹⁾	Austin, TX	10/1/2042	6.00	%	10,525,000
Southpark ⁽¹⁾	Austin, TX	12/1/2049	6.13	%	13,795,000
The Palms at Premier Park	Columbia, SC	1/1/2050	6.25	%	20,152,000
The Suites on Paseo ⁽²⁾	San Diego, CA	12/1/2048	6.25	%	35,750,000
Tyler Park Townhomes Series A	Greenfield, CA	1/1/2030	5.75	%	6,075,000
Tyler Park Townhomes Series B	Greenfield, CA	1/1/2016	5.50	%	2,025,000
Vantage at Judson	San Antonio, TX	2/1/2053	9.00	%	6,049,000
Vantage at Harlingen	San Antonio, TX	10/1/2053	9.00	%	6,692,000
Villages at Lost Creek	San Antonio, TX	6/1/2041	6.25	%	18,090,000
Westside Village Market Series A	Shafter, CA	1/1/2030	5.75	%	3,970,000
Westside Village Market Series B	Shafter, CA	1/1/2016	5.50	%	1,430,000
Woodlynn Village ⁽¹⁾	Maplewood, MN	11/1/2042	6.00	%	4,426,000
Total Mortgage Bonds					$	299,841,918

(1) Bonds owned by ATAX TEBS I, LLC, Note 11

(2) Bond held by Deutsche Bank AG in a secured financing transaction, Note 11



Property Name	Location	Maturity Date	Base Interest Rate		Principal Outstanding at Dec. 31, 2012

Arbors at Hickory Ridge	Memphis, TN	12/1/2049	6.25	%	$	11,450,000
Ashley Square ⁽¹⁾	Des Moines, IA	12/1/2025	6.25	%	5,260,000
Autumn Pines ⁽²⁾	Humble, TX	10/1/2046	5.80	%	13,220,000
Bella Vista ⁽¹⁾	Gainesville, TX	4/1/2046	6.15	%	6,600,000
Bridle Ridge ⁽¹⁾	Greer, SC	1/1/2043	6.00	%	7,765,000
Brookstone ⁽¹⁾	Waukegan, IL	5/1/2040	5.45	%	9,416,794
Cross Creek ⁽¹⁾	Beaufort, SC	3/1/2049	6.15	%	8,568,409
Iona Lakes	Ft. Myers, FL	4/1/2030	6.90	%	15,535,000
Runnymede ⁽¹⁾	Austin, TX	10/1/2042	6.00	%	10,605,000
Southpark ⁽¹⁾	Austin, TX	12/1/2049	6.13	%	13,900,000
Vantage at Judson	San Antonio. TX	2/1/2053	9.00	%	6,049,000
Villages at Lost Creek ⁽¹⁾	San Antonio, TX	6/1/2041	6.25	%	18,315,000
Woodland Park	Topeka, KS	11/1/2047	6.00	%	15,013,000
Woodland Park	Topeka, KS	11/1/2047	8.00	%	649,000
Woodlynn Village ⁽¹⁾	Maplewood, MN	11/1/2042	6.00	%	4,460,000
Total mortgage revenue bonds					$	146,806,203

(1) Bonds owned by ATAX TEBS I, LLC, Note 11

(2) Bond held by Deutsche Bank AG in a secured financing transaction, Note 11