Interest Rate Derivatives

12 Months Ended

Dec. 31, 2016

Interest Rate Derivative Agreements [Abstract]

Interest Rate Derivatives

19. Interest Rate Derivatives

The following table summarizes the Partnership’s interest rate derivatives, except for interest rate swaps, at December 31, 2016:

Purchase Date	Initial Notional Amount		Effective Capped Rate			Maturity Date	Purchase Price		Fair Value - Asset (Liability) (1)		Variable Debt Financing Facility Hedged	Maximum Potential Cost of Borrowing			Counterparty
Sept 2010	$	31,936,667		3.0	%	Sept 2017	$	921,000	$	2	M24 TEBS		5.0	%	Bank of New York Mellon
Sept 2010		31,936,667		3.0	%	Sept 2017		845,600		2	M24 TEBS		5.0	%	Barclays Bank PLC
Sept 2010		31,936,667		3.0	%	Sept 2017		928,000		2	M24 TEBS		5.0	%	Royal Bank of Canada
Aug 2013		93,305,000		1.5	%	Sept 2017		793,000		619	M24 TEBS		3.5	%	Deutsche Bank
Feb 2014		41,250,000		1.0	%	March 2017		230,500		2	PHC TOB Trusts		3.3	%	SMBC Capital Markets, Inc
July 2014		31,565,000		3.0	%	Aug 2019		315,200		34,614	M31 TEBS		4.4	%	Barclays Bank PLC
July 2014		31,565,000		3.0	%	Aug 2019		343,000		34,614	M31 TEBS		4.4	%	Royal Bank of Canada
July 2014		31,565,000		3.0	%	Aug 2019		333,200		34,614	M31 TEBS		4.4	%	SMBC Capital Markets, Inc
July 2015		28,095,000		3.0	%	Aug 2020		210,000		93,045	M33 TEBS		4.3	%	Wells Fargo Bank
July 2015		28,095,000		3.0	%	Aug 2020		187,688		93,045	M33 TEBS		4.3	%	Royal Bank of Canada
July 2015		28,095,000		3.0	%	Aug 2020		174,900		93,045	M33 TEBS		4.3	%	SMBC Capital Markets, Inc
									$	383,604
(1) For additional details, see Note 25 to the Partnership's consolidated financial statements.

In January 2016, the Partnership sold the $11.0 million interest rate derivative related to the MBS TOB Trusts. The interest rate derivative was sold for its current value and resulted in no cash proceeds to the Partnership and no gain or loss was recognized.

The Partnership has contracted for two interest rate swaps with DB related to the Decatur Angle and Bruton Term A/B Financings securitized by mortgage revenue bonds for Decatur Angle and Bruton Apartments. The following table summarizes the terms of the interest rate swaps at December 31, 2016 and 2015:

Purchase Date	Initial Notional Amount		Effective Date	Termination Date	Fixed Rate Paid			Period End Variable Rate Received			Variable Rate & Index	Counterparty	December 31, 2016 - Fair Value of Liability			December 31, 2015 - Fair Value of Liability
Sept 2014	$	23,000,000	Oct 2016	Oct 2021		1.96	%		0.53	%	70% 30-day LIBOR	Deutsche Bank	$	(738,574	)	$	(737,219	)
Sept 2014	$	18,126,731	April 2017	April 2022		2.06	%	N/A			70% 30-day LIBOR	Deutsche Bank		(600,709	)		(579,856	)
													$	(1,339,283	)	$	(1,317,075	)

These interest rate derivatives and interest rate swaps are not designated as hedging instruments and, accordingly, they are recorded at fair value with changes in fair value included in current period earnings as interest expense. See Note 25 for a description of the methodology and significant assumptions for determining the fair value of the interest rate derivatives and interest rate swap arrangements. The interest rate derivatives are presented within other assets and the interest rate swap arrangements are reported as a derivative swap liability on the consolidated balance sheet.