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Fair Value of Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2017
Fair Value Measurements [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis at March 31, 2017 are summarized as follows:

 

 

 

Fair Value Measurements at March 31, 2017

 

Description

 

Assets and

Liabilities at Fair

Value

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs (Level 3)

 

Assets and Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage revenue bonds, held in trust

 

$

731,091,380

 

 

$

-

 

 

$

-

 

 

$

731,091,380

 

Mortgage revenue bonds

 

 

27,814,516

 

 

 

-

 

 

 

-

 

 

 

27,814,516

 

Bond purchase commitments (reported within

   other assets)

 

 

2,620,393

 

 

 

-

 

 

 

-

 

 

 

2,620,393

 

PHC Certificates

 

 

55,851,799

 

 

 

-

 

 

 

-

 

 

 

55,851,799

 

Taxable bonds (reported within other

   assets)

 

 

4,179,205

 

 

 

-

 

 

 

-

 

 

 

4,179,205

 

Derivative contracts (reported within other

   assets)

 

 

151,730

 

 

 

-

 

 

 

-

 

 

 

151,730

 

Derivative swap liability

 

 

(1,228,758

)

 

 

-

 

 

 

-

 

 

 

(1,228,758

)

Total Assets and Liabilities at Fair Value, net

 

$

820,480,265

 

 

$

-

 

 

$

-

 

 

$

820,480,265

 

 

Assets and liabilities measured at fair value on a recurring basis at December 31, 2016 are summarized as follows:

 

 

 

Fair Value Measurements at December 31, 2016

 

Description

 

Assets and

Liabilities at Fair

Value

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs (Level 3)

 

Assets and Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage revenue bonds held in trust

 

$

590,194,179

 

 

$

-

 

 

$

-

 

 

$

590,194,179

 

Mortgage revenue bonds

 

 

90,016,872

 

 

 

-

 

 

 

-

 

 

 

90,016,872

 

Bond purchase commitments (reported within

   other assets)

 

 

2,399,449

 

 

 

-

 

 

 

-

 

 

 

2,399,449

 

PHC Certificates

 

 

57,158,068

 

 

 

-

 

 

 

-

 

 

 

57,158,068

 

Taxable bonds (reported within other assets)

 

 

4,084,599

 

 

 

-

 

 

 

-

 

 

 

4,084,599

 

Derivative contracts (reported within other

   assets)

 

 

383,604

 

 

 

-

 

 

 

-

 

 

 

383,604

 

Interest swap liability

 

 

(1,339,283

)

 

 

-

 

 

 

-

 

 

 

(1,339,283

)

Total Assets and Liabilities at Fair Value

 

$

742,897,488

 

 

$

-

 

 

$

-

 

 

$

742,897,488

 

 

Summary of Activity Related to Level 3 Assets and Liabilities

 

The following tables summarizes the activity related to Level 3 assets and liabilities for the three months ended March 31, 2017:

 

 

 

For the Three Months Ended March 31, 2017

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

Mortgage

Revenue Bonds (1)

 

 

Bond Purchase

Commitments

 

 

PHC Certificates

 

 

Taxable Bonds

 

 

Interest Rate Derivatives (2)

 

 

Total

 

Beginning Balance January 1, 2017

 

$

680,211,051

 

 

$

2,399,449

 

 

$

57,158,068

 

 

$

4,084,599

 

 

$

(955,679

)

 

$

742,897,488

 

Total gains (losses)

   (realized/unrealized)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings (interest

   income and interest expense)

 

 

53,355

 

 

 

-

 

 

 

(17,588

)

 

 

-

 

 

 

(121,349

)

 

 

(85,582

)

Included in other

   comprehensive (loss) income

 

 

20,170,553

 

 

 

220,944

 

 

 

(1,288,681

)

 

 

98,494

 

 

 

-

 

 

 

19,201,310

 

Purchases

 

 

59,585,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

59,585,000

 

Settlements

 

 

(1,114,063

)

 

 

-

 

 

 

-

 

 

 

(3,888

)

 

 

-

 

 

 

(1,117,951

)

Ending Balance March 31, 2017

 

$

758,905,896

 

 

$

2,620,393

 

 

$

55,851,799

 

 

$

4,179,205

 

 

$

(1,077,028

)

 

$

820,480,265

 

Total amount of losses for the period

   included in earnings attributable to

   the change in unrealized gains or

   losses relating to assets or liabilities

   held on March 31, 2017

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(121,349

)

 

$

(121,349

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

 

(2) Interest rate derivatives include derivative contracts reported in other assets as well as derivative swap liabilities.

 

 

The following tables summarizes the activity related to Level 3 assets and liabilities for the three months ended March 31, 2016:

 

 

 

For the Three Months Ended March 31, 2016

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

Mortgage

Revenue Bonds (1)

 

 

Bond Purchase Commitments

 

 

PHC Certificates

 

 

Taxable Bonds

 

 

Interest Rate Derivatives (2)

 

 

Total

 

Beginning Balance January 1, 2016

 

$

583,683,137

 

 

$

5,634,360

 

 

$

60,707,290

 

 

$

4,824,060

 

 

$

(972,898

)

 

$

653,875,949

 

Total gains (losses)

   (realized/unrealized)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,110,407

)

 

 

(1,110,407

)

Included in other

   comprehensive (loss) income

 

 

11,351,627

 

 

 

1,587,813

 

 

 

869,344

 

 

 

116,456

 

 

 

-

 

 

 

13,925,240

 

Purchases

 

 

11,500,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11,500,000

 

Sale of securities

 

 

(9,747,125

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(399

)

 

 

(9,747,524

)

Settlements

 

 

(411,270

)

 

 

-

 

 

 

(1,071,294

)

 

 

(2,412

)

 

 

-

 

 

 

(1,484,976

)

Ending Balance March 31, 2016

 

$

596,376,369

 

 

$

7,222,173

 

 

$

60,505,340

 

 

$

4,938,104

 

 

$

(2,083,704

)

 

$

666,958,282

 

Total amount of losses for the period

   included in earnings attributable to

   the change in unrealized gains or

   losses relating to assets or liabilities

   still held as of March 31, 2016

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(1,110,407

)

 

$

(1,110,407

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

 

(2) Interest rate derivatives include derivative contracts reported in other assets as well as derivative swap liabilities.

 

 

Summary of Fair Value of Financial Liabilities held on Condensed Consolidated Balance Sheets

The table below represents the fair value of the financial liabilities held on the condensed consolidated balance sheets at March 31, 2017 and December 31, 2016.

 

 

 

March 31, 2017

 

 

December 31, 2016

 

 

 

Carrying Amount

 

 

Fair Value

 

 

Carrying Amount

 

 

Fair Value

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt financing and LOCs

 

$

598,123,706

 

 

$

597,301,799

 

 

$

555,199,700

 

 

$

553,083,924

 

Mortgages payable and other secured financing

 

$

51,175,060

 

 

$

51,210,197

 

 

$

51,379,512

 

 

$

51,595,281