23. Segments

The Partnership has four reportable segments, Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts, and Other Investments. In addition to the four reportable segments, the Partnership also separately reports its consolidation and elimination information because it does not allocate certain items to the segments. In January 2016, the Partnership sold its three remaining MBS Securities and eliminated this operating segment.

The Amended and Restated LP Agreement authorizes the Partnership to make investments in tax-exempt securities other than in MRBs provided that the tax-exempt investments are rated in one of the four highest rating categories by a national securities rating agency. The Amended and Restated LP Agreement also allows the Partnership to invest in other securities whose interest may be taxable for federal income tax purposes. Total tax-exempt and other investments cannot exceed 25% of the Partnership’s total assets at the time of acquisition as required under the Amended and Restated LP Agreement. In addition, the amount of other investments is limited based on the conditions to the exemption from registration under the Investment Company Act of 1940. The Partnership’s tax-exempt and other investments include PHC Certificates, MBS Securities, and Other Investments, which are reported as three separate segments.

Mortgage Revenue Bond Investments Segment

The Mortgage Revenue Bond Investments segment consists of the Partnership’s portfolio of MRBs and related property loans which have been issued to provide construction and/or permanent financing for Residential Properties and commercial properties in their market areas. Such MRBs are held as investments and the related property loans, net of loan loss, are reported as such on the Partnership’s condensed consolidated balance sheets. At June 30, 2017, the Partnership held 89 MRBs. The Residential Properties financed by MRBs contain a total of 10,656 rental units. In addition, one bond (Pro Nova 2014-1) is collateralized by commercial real estate. All general and administrative expenses on the condensed consolidated statements of operations are reported within this operating segment.

Public Housing Capital Fund Trust Segment

The Public Housing Capital Fund Trust segment consists of the assets, liabilities, and related income and expenses of the Partnership’s PHC Certificates (see Note 7).

MF Properties Segment

The MF Properties segment consists of multifamily, student housing, and senior citizen residential properties held by the Partnership. During the time the Partnership holds an interest in an MF Property, any net rental income generated by the MF Properties in excess of debt service will be available for distribution to the Partnership in accordance with its interest in the MF Property. At June 30, 2017, the segment includes the six MF Properties comprised of a total of 1,710 rental units. Income tax expense for the Greens Hold Co is reported within this segment.

Other Investments Segment

The Other investments segment consists of the operations of ATAX Vantage Holdings, LLC, which is invested in unconsolidated entities (Note 9) and has issued property loans due from Vantage at Brooks LLC and Vantage at Braunfels LLC (Note 10).

The following table details certain key financial information for the Partnership’s reportable segments for the three and six months ended June 30, 2017 and 2016:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
Total revenues
Mortgage Revenue Bond Investments	$	11,059,940	$	8,790,823	$	21,648,438	$	17,569,877
MF Properties		3,306,722		4,994,868		7,099,137		10,068,972
Public Housing Capital Fund Trust		719,182		722,990		1,427,968		1,453,892
MBS Securities Investments		-		-		-		48,755
Other Investments		1,148,456		424,440		2,099,145		711,484
Total revenues	$	16,234,300	$	14,933,121	$	32,274,688	$	29,852,980

Interest expense
Mortgage Revenue Bond Investments	$	4,938,029	$	3,391,149	$	9,509,484	$	7,175,539
MF Properties		534,245		596,360		1,059,832		1,266,693
Public Housing Capital Fund Trust		369,053		334,545		714,264		635,265
MBS Securities Investments		-		-		-		14,692
Other Investments		-		-		-		-
Total interest expense	$	5,841,327	$	4,322,054	$	11,283,580	$	9,092,189

Depreciation expense
Mortgage Revenue Bond Investments	$	-	$	-	$	-	$	-
MF Properties		1,265,335		1,649,891		2,620,566		3,296,122
Public Housing Capital Fund Trust		-		-		-		-
MBS Securities Investments		-		-		-		-
Other Investments						-		-
Total depreciation expense	$	1,265,335	$	1,649,891	$	2,620,566	$	3,296,122

Partnership net income (loss)
Mortgage Revenue Bond Investments	$	2,592,768	$	2,220,723	$	4,821,821	$	4,251,016
MF Properties		18,047		7,972,322		3,763,592		7,704,519
Public Housing Capital Fund Trust		350,129		388,445		713,704		818,627
MBS Securities Investments		-		-		-		51,984
Other Investments		1,148,456		424,440		2,099,145		711,484
Partnership net income	$	4,109,400	$	11,005,930	$	11,398,262	$	13,537,630

The following table details certain key financial information for the Partnership’s reportable segments at June 30, 2017 and December 31, 2016:

	June 30, 2017			December 31, 2016
Total assets
Mortgage Revenue Bond Investments	$	862,988,147		$	764,995,675
MF Properties		108,015,747			129,895,112
Public Housing Capital Fund Trust Certificates		56,097,041			57,461,268
Other Investments		47,837,858			34,540,280
Consolidation/eliminations		(50,112,025	)		(42,778,661	)
Total assets	$	1,024,826,768		$	944,113,674