5. Investments in Mortgage Revenue Bonds

Mortgage revenue bonds owned by the Partnership have been issued to provide construction and/or permanent financing for Residential Properties and commercial properties. Mortgage revenue bonds are either held directly by the Partnership or are held in trusts created in connection with debt financing transactions (Note 16). The Partnership had the following investments in mortgage revenue bonds on June 30, 2016 and December 31, 2015:

	June 30, 2016
Description of Mortgage Revenue Bonds Held in Trust	State	Cost Adjusted for Paydowns		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Glenview Apartments - Series A ⁽⁴⁾	CA	$	4,670,000	$	498,774	$	-	$	5,168,774
Harden Ranch - Series A ⁽³⁾	CA		6,944,405		1,227,246		-		8,171,651
Montclair Apartments - Series A ⁽⁴⁾	CA		2,530,000		340,097		-		2,870,097
Santa Fe Apartments - Series A ⁽⁴⁾	CA		3,065,000		464,138		-		3,529,138
Tyler Park Townhomes - Series A ⁽³⁾	CA		6,052,204		561,638		-		6,613,842
Westside Village Market - Series A ⁽³⁾	CA		3,955,103		386,514		-		4,341,617
Lake Forest ⁽¹⁾	FL		8,705,000		2,042,441		-		10,747,441
Ashley Square ⁽¹⁾	IA		5,069,000		862,753		-		5,931,753
Brookstone ⁽¹⁾	IL		7,466,415		2,847,137		-		10,313,552
Copper Gate Apartments ⁽³⁾	IN		5,185,000		1,294,228		-		6,479,228
Renaissance - Series A ⁽⁴⁾	LA		11,400,429		2,830,779		-		14,231,208
Live 929 Apartments ⁽²⁾	MD		40,734,483		12,548,602		-		53,283,085
Woodlynn Village ⁽¹⁾	MN		4,331,000		1,275,826		-		5,606,826
Greens Property - Series A ⁽³⁾	NC		8,252,000		2,364,424		-		10,616,424
Silver Moon - Series A ⁽⁴⁾	NM		7,958,913		1,826,837		-		9,785,750
Ohio Properties - Series A ⁽¹⁾	OH		14,263,000		5,014,838		-		19,277,838
Bridle Ridge ⁽¹⁾	SC		7,565,000		2,236,819		-		9,801,819
Columbia Gardens ⁽²⁾	SC		15,219,410		1,139,508		-		16,358,918
Cross Creek ⁽¹⁾	SC		6,112,742		4,064,771		-		10,177,513
The Palms at Premier Park Apartments ⁽³⁾	SC		19,915,355		5,290,046		-		25,205,401
Willow Run ⁽²⁾	SC		15,219,338		1,122,876		-		16,342,214
Arbors at Hickory Ridge ⁽³⁾	TN		11,518,875		3,126,099		-		14,644,974
Pro Nova 2014-1 ⁽²⁾	TN		10,043,442		1,781,758		-		11,825,200
Avistar at Chase Hill - Series A ⁽³⁾	TX		9,890,950		2,283,756		-		12,174,706
Avistar at the Crest - Series A ⁽³⁾	TX		9,594,222		2,447,726		-		12,041,948
Avistar at the Oaks - Series A ⁽³⁾	TX		7,744,004		1,929,740		-		9,673,744
Avistar at the Parkway - Series A ⁽⁴⁾	TX		13,300,000		2,064,647		-		15,364,647
Avistar in 09 - Series A ⁽³⁾	TX		6,686,648		1,666,255		-		8,352,903
Avistar on the Boulevard - Series A ⁽³⁾	TX		16,344,793		4,169,968		-		20,514,761
Avistar on the Hills - Series A ⁽³⁾	TX		5,350,313		1,377,357		-		6,727,670
Bella Vista ⁽¹⁾	TX		6,365,000		1,837,512		-		8,202,512
Bruton Apartments ⁽²⁾	TX		18,145,000		3,625,651		-		21,770,651
Concord at Gulfgate - Series A ⁽²⁾	TX		17,060,000		3,166,706		-		20,226,706
Concord at Little York - Series A ⁽²⁾	TX		12,480,000		2,316,547		-		14,796,547
Concord at Williamcrest - Series A ⁽²⁾	TX		18,020,000		3,668,443		-		21,688,443
Decatur Angle ⁽²⁾	TX		23,000,000		3,680,548		-		26,680,548
Heritage Square - Series A ⁽⁴⁾	TX		11,185,000		2,762,703		-		13,947,703
Runnymede ⁽¹⁾	TX		10,300,000		2,364,880		-		12,664,880
Southpark ⁽¹⁾	TX		11,838,368		6,538,686		-		18,377,054
Vantage at Harlingen - Series B ⁽⁴⁾	TX		24,575,000		5,261,111		-		29,836,111
Vantage at Judson -Series B ⁽⁴⁾	TX		26,457,837		6,468,281		-		32,926,118
Mortgage revenue bonds held in trust		$	474,513,249	$	112,778,666	$	-	$	587,291,915

⁽¹⁾	Mortgage revenue bonds owned by ATAX TEBS I, LLC, Note 16

⁽²⁾	Mortgage revenue bonds held by Deutsche Bank in a secured financing transaction, Note 16

⁽³⁾	Mortgage revenue bonds owned by ATAX TEBS II, LLC, Note 16

⁽⁴⁾	Mortgage revenue bonds owned by ATAX TEBS III, LLC, Note 16

	June 30, 2016
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Seasons at Simi Valley	CA	$	6,320,000	$	880,895	$	-	$	7,200,895
Sycamore Walk	CA		5,447,000		411,805		-		5,858,805
Greens Property - Series B	NC		941,887		245,283		-		1,187,170
Ohio Properties - Series B	OH		3,556,140		965,230		-		4,521,370
Companion at Thornhill Apartments	SC		11,500,000		3,005,857		-		14,505,857
Avistar at Chase Hill - Series B	TX		959,853		208,115		-		1,167,968
Avistar at the Crest - Series B	TX		754,952		173,648		-		928,600
Avistar at the Oaks - Series B	TX		552,067		127,771		-		679,838
Avistar at the Parkway - Series B	TX		125,000		8,892		-		133,892
Avistar in 09 - Series B	TX		455,406		105,399		-		560,805
Avistar on the Boulevard - Series B	TX		448,594		103,183		-		551,777
Concord at Gulfgate - Series B	TX		2,125,000		276,129		-		2,401,129
Concord at Little York - Series B	TX		960,000		124,741		-		1,084,741
Concord at Williamcrest - Series B	TX		2,800,000		363,838		-		3,163,838
Crossing at 1415	TX		7,925,000		1,227,108		-		9,152,108
Heights at 515	TX		6,945,000		1,061,664		-		8,006,664
Mortgage revenue bonds held by the Partnership		$	51,815,899	$	9,289,558	$	-	$	61,105,457

	December 31, 2015
Description of Mortgage Revenue Bonds Held in Trust	State	Cost Adjusted for Paydowns		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Glenview Apartments - Series A ⁽⁴⁾	CA	$	4,670,000	$	210,572	$	-	$	4,880,572
Harden Ranch - Series A ⁽³⁾	CA		6,960,000		668,981		-		7,628,981
Montclair Apartments - Series A ⁽⁴⁾	CA		2,530,000		114,079		-		2,644,079
Santa Fe Apartments - Series A ⁽⁴⁾	CA		3,065,000		154,067		-		3,219,067
Tyler Park Townhomes - Series A ⁽³⁾	CA		6,075,000		487,209		-		6,562,209
Westside Village Market - Series A ⁽³⁾	CA		3,970,000		202,340		-		4,172,340
Lake Forest ⁽¹⁾	FL		8,766,000		1,177,745		-		9,943,745
Ashley Square ⁽¹⁾	IA		5,099,000		508,163		-		5,607,163
Brookstone ⁽¹⁾	IL		7,468,668		1,436,203		-		8,904,871
Copper Gate Apartments ⁽³⁾	IN		5,185,000		616,341		-		5,801,341
Renaissance - Series A ⁽⁴⁾	LA		11,450,959		1,233,077		-		12,684,036
Live 929 Apartments⁽²⁾	MD		40,801,557		5,829,855		-		46,631,412
Woodlynn Village ⁽¹⁾	MN		4,351,000		466,471		-		4,817,471
Greens Property - Series A ⁽³⁾	NC		8,294,000		1,138,270		-		9,432,270
Silver Moon - Series A ⁽⁴⁾	NM		7,983,811		1,246,349		-		9,230,160
Ohio Properties - Series A ⁽¹⁾	OH		14,311,000		2,690,867		-		17,001,867
Bridle Ridge ⁽¹⁾	SC		7,595,000		817,222		-		8,412,222
Columbia Gardens ⁽²⁾	SC		15,224,597		-		-		15,224,597
Cross Creek ⁽¹⁾	SC		6,101,605		2,932,689		-		9,034,294
The Palms at Premier Park Apartments ⁽³⁾	SC		20,001,272		2,505,091		-		22,506,363
Willow Run ⁽²⁾	SC		15,224,591		-		-		15,224,591
Arbors at Hickory Ridge ⁽³⁾	TN		11,565,657		1,767,508		-		13,333,165
Pro Nova 2014-1 and 2014-2 ⁽²⁾	TN		19,379,489		1,182,900		-		20,562,389
Avistar at Chase Hill - Series A ⁽³⁾	TX		9,935,552		1,133,024		-		11,068,576
Avistar at the Crest - Series A ⁽³⁾	TX		9,637,485		1,301,224		-		10,938,709
Avistar at the Oaks - Series A ⁽³⁾	TX		7,777,936		840,159		-		8,618,095
Avistar at the Parkway - Series A ⁽⁴⁾	TX		13,300,000		330,251		-		13,630,251
Avistar in 09 - Series A ⁽³⁾	TX		6,715,948		725,445		-		7,441,393
Avistar on the Boulevard - Series A ⁽³⁾	TX		16,418,497		1,872,323		-		18,290,820
Avistar on the Hills - Series A ⁽³⁾	TX		5,373,756		693,096		-		6,066,852
Bella Vista ⁽¹⁾	TX		6,430,000		766,135		-		7,196,135
Bruton Apartments ⁽²⁾	TX		18,145,000		1,901,839		-		20,046,839
Concord at Gulfgate - Series A ⁽²⁾	TX		17,060,000		852,612		-		17,912,612
Concord at Little York - Series A ⁽²⁾	TX		12,480,000		688,441		-		13,168,441
Concord at Williamcrest - Series A ⁽²⁾	TX		18,020,000		1,182,543		-		19,202,543
Decatur Angle ⁽²⁾	TX		23,000,000		1,582,083		-		24,582,083
Heritage Square - Series A ⁽⁴⁾	TX		11,185,000		273,488		-		11,458,488
Runnymede ⁽¹⁾	TX		10,350,000		1,600,938		-		11,950,938
Southpark ⁽¹⁾	TX		11,799,874		3,990,882		-		15,790,756
Vantage at Harlingen - Series B ⁽⁴⁾	TX		24,575,000		1,765,139		-		26,340,139
Vantage at Judson -Series B ⁽⁴⁾	TX		26,540,000		2,613,606		-		29,153,606
Mortgage revenue bonds held in trust		$	484,817,254	$	51,499,227	$	-	$	536,316,481

⁽¹⁾	Mortgage revenue bonds owned by ATAX TEBS I, LLC, Note 16

⁽²⁾	Mortgage revenue bonds held by Deutsche Bank in a secured financing transaction, Note 16

⁽³⁾	Mortgage revenue bonds owned by ATAX TEBS II, LLC, Note 16

⁽⁴⁾	Mortgage revenue bonds owned by ATAX TEBS III, LLC, Note 16

	December 31, 2015
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Glenview Apartments - Series B	CA	$	2,053,000	$	-	$	(7,329	)	$	2,045,671
Montclair Apartments - Series B	CA		928,000		-		(2,506	)		925,494
Santa Fe Apartments - Series B	CA		1,671,000		-		(5,965	)		1,665,035
Seasons at Simi Valley	CA		6,320,000		404,110		-			6,724,110
Sycamore Walk	CA		5,447,000		-		-			5,447,000
Greens Property - Series B	NC		943,214		142,442		-			1,085,656
Ohio Properties - Series B	OH		3,562,190		514,997		-			4,077,187
Avistar at Chase Hill - Series B	TX		961,981		109,878		-			1,071,859
Avistar at the Crest - Series B	TX		756,626		86,428		-			843,054
Avistar at the Oaks - Series B	TX		553,244		63,533		-			616,777
Avistar at the Parkway - Series B	TX		125,000		-		(979	)		124,021
Avistar in 09 - Series B	TX		456,376		52,409		-			508,785
Avistar on the Boulevard - Series B	TX		449,589		51,356		-			500,945
Concord at Gulfgate - Series B	TX		2,125,000		76,802		-			2,201,802
Concord at Little York - Series B	TX		960,000		-		(6,711	)		953,289
Concord at Williamcrest - Series B	TX		2,800,000		-		(19,573	)		2,780,427
Crossing at 1415	TX		7,925,000		214,091		-			8,139,091
Heights at 515	TX		6,945,000		185,268		-			7,130,268
Heritage Square - Series B	TX		520,000		6,185		-			526,185
Mortgage revenue bonds held by the Partnership		$	45,502,220	$	1,907,499	$	(43,063	)	$	47,366,656

In May 2016, the Partnership redeemed the following Series B mortgage revenue bonds for approximately $5.2 million which approximated their carrying value plus accrued interest.

Property Name	Month Redeemed	Location	Units		Maturity Date	Base Interest Rate			Principal Outstanding at Date of Redemption
Glenview Apartments - Series B	May	Cameron, CA		88	12/1/2016		8.00	%	$	2,053,000
Montclair Apartments - Series B	May	Lemoore, CA		80	12/1/2016		8.00	%	$	928,000
Santa Fe Apartments - Series B	May	Hesperia, CA		89	12/1/2016		8.00	%	$	1,671,000
Heritage Square - Series B	May	Edinburg, TX		204	10/1/2051		12.00	%	$	520,000

In March 2016, the Partnership sold the Pro Nova 2014-2 bond for approximately $9.5 million, which approximated the mortgage revenue bond’s carrying value plus accrued interest. The Partnership used approximately $8.4 million of the proceeds from the sale to pay in full and collapse the TOB Trust securitizing this mortgage revenue bond (Note 16).

Property Name

Month Sold

Location

Units

Maturity Date

Base Interest Rate

Principal Outstanding at Date of Sale

Pro Nova - 2014B ¹

March

Knoxville, TN

5/1/2025

5.25

9,295,000

¹ This is a commercial property. Accordingly, unit information is not applicable.

The following table includes the details of the mortgage revenue bond acquisitions during the six months ended June 30, 2016:

Property Name

Month Acquired

Location

Units

Maturity Date

Base Interest Rate

Principal Outstanding at Date of Acquisition

Companion at Thornhill Apartments

January

Lexington, SC

180

1/1/2052

5.80

11,500,000

The following table provides the details of the mortgage revenue bond acquisitions during the six months ended June 30, 2015:

Property Name	Month Acquired	Location	Units	Maturity Date	Base Interest Rate			Principal Outstanding at Date of Acquisition
Avistar at the Parkway Apartments - Series A	April	San Antonio, TX	236	5/1/2052		6.00	%	$	13,300,000
Avistar at the Parkway Apartments - Series B	April	San Antonio, TX	236	6/1/2052		12.00	%	$	125,000
Renaissance	June	Baton Rouge, LA	208	6/1/2050		6.00	%	$	11,500,000
Vantage at Harlingen	June	San Antonio, TX	288	9/1/2053		6.00	%	$	24,575,000
Vantage at Judson	June	San Antonio, TX	288	1/1/2053		6.00	%	$	26,540,000
Silver Moon - Series A	June	Albuquerque, NM	151	8/1/2055		6.00	%	$	8,000,000
Silver Moon - Series B	June	Albuquerque, NM	151	8/1/2055		12.00	%	$	500,000
Suites on Paseo Series B	March	San Diego, CA	394	12/1/2033		9.00	%	$	5,500,000
Concord at Gulfgate - Series A	January	Houston, TX	288	2/1/2032		6.00	%	$	17,060,000
Concord at Gulfgate - Series B	January	Houston, TX	288	3/1/2032		12.00	%	$	2,125,000
Concord at Little York - Series A	January	Houston, TX	276	2/1/2032		6.00	%	$	12,480,000
Concord at Little York - Series B	January	Houston, TX	276	3/1/2032		12.00	%	$	960,000
Concord at Williamcrest - Series A	January	Houston, TX	288	2/1/2032		6.00	%	$	18,020,000
Concord at Williamcrest - Series B	January	Houston, TX	288	3/1/2032		12.00	%	$	2,800,000

Valuation - As all of the Partnership’s investments in mortgage revenue bonds are classified as available-for-sale securities, they are reported on the balance sheet at their estimated fair values. On June 30, 2016, the weighted average base rate of the mortgage revenue bonds reported in the condensed consolidated financial statements was approximately 6.4% per annum. Due to the limited market for the mortgage revenue bonds, these estimates of fair value do not necessarily represent what the Partnership would actually receive if the mortgage revenue bonds were sold. There is no active trading market for the mortgage revenue bonds and price quotes for them are not typically available.

On June 30, 2016, management valued all of the Partnership’s mortgage revenue bonds using discounted cash flow and yield to maturity analyses, which encompasses judgment in its application. The key assumption in management’s yield to maturity analysis is the range of effective yields of the individual mortgage revenue bonds. The effective yield analysis for each mortgage revenue bond considers the current market yield on similar mortgage revenue bonds as well as the debt service coverage ratio of each underlying property serving as collateral for the mortgage revenue bond. On June 30, 2016, the range of effective yields on the individual mortgage revenue bonds was 3.8% to 11.2% per annum. At December 31, 2015, the range of effective yields on the individual mortgage revenue bonds was 4.6% to 12.1% per annum.

Unrealized gains or losses on these mortgage revenue bonds are recorded in the Condensed Consolidated Statements of 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.