14. Debt Financing

The following represents the Partnership’s Debt Financings, net of deferred financing costs, at June 30, 2018 and December 31, 2017:

	Outstanding Debt Financings on June 30, 2018, net		Restricted Cash		Year Acquired	Stated Maturities	Reset Frequency	SIFMA Based Rates	Facility Fees	Period End Rates
TOB & Term A/B Trusts Securitization
Fixed - Term TOB	$	46,731,225	$	-	2014	October 2019	N/A	N/A	N/A	4.01% - 4.39%
Fixed - Term A/B		18,671,135		-	2017	August 2018 - November 2018	N/A	N/A	N/A	3.76%
Fixed - Term A/B		60,491,635		-	2017	February 2022 - March 2022	N/A	N/A	N/A	3.89%
Fixed - Term A/B		137,779,522		-	2016	September 2026 - December 2026	N/A	N/A	N/A	3.64%
Fixed - Term A/B		47,403,860		-	2017	February 2027 - November 2027	N/A	N/A	N/A	4.46% - 4.52%
Variable - TOB		37,965,000		161,976	2012	May 2019	Weekly	2.04 - 2.09%	1.67%	3.71 - 3.76%

TEBS Financings
Variable - TEBS I		55,093,000		399,815	2010	September 2020	Weekly	1.55%	1.85%	3.40%
Variable - TEBS II ⁽¹⁾		80,742,583		136,626	2014	July 2019 ⁽²⁾	Weekly	1.53%	1.62%	3.15%
Variable - TEBS III ⁽¹⁾		57,294,369		56,111	2015	July 2020 ⁽³⁾	Weekly	1.53%	1.39%	2.92%
Total Debt Financings	$	542,172,329

⁽¹⁾	Facility fees are variable

⁽²⁾	The Partnership may unilaterally elect to extend the financing for an additional five-year period through July 2024. If the Partnership exercises its extension option, Freddie Mac has the option to adjust components of the Facility Fees.

⁽³⁾	The Partnership may unilaterally elect to extend the financing for an additional five-year period through July 2025. If the Partnership exercises its extension option, Freddie Mac has the option to adjust components of the Facility Fees.

	Outstanding Debt Financings on December 31, 2017, net		Restricted Cash		Year Acquired	Stated Maturities	Reset Frequency	SIFMA Based Rates	Facility Fees	Period End Rates
TOB & Term A/B Trusts Securitization
Fixed - Term TOB	$	46,787,036	$	-	2014	October 2019	N/A	N/A	N/A	4.01% - 4.39%
Fixed - Term A/B		33,612,154		-	2017	June 2018 - August 2018	N/A	N/A	N/A	3.76%
Fixed - Term A/B		60,441,915		-	2017	February 2022 - March 2022	N/A	N/A	N/A	3.89%
Fixed - Term A/B		138,065,482		-	2016	September 2026 - December 2026	N/A	N/A	N/A	3.64%
Fixed - Term A/B		47,414,014		-	2017	February 2027 - November 2027	N/A	N/A	N/A	4.46% - 4.52%
Variable - TOB		38,130,000		850,327	2012	May 2018	Weekly	2.24 - 2.29%	1.67%	3.91 - 3.96%

TEBS Financings
Variable - TEBS I		55,468,000		372,222	2010	September 2020	Weekly	1.79%	1.85%	3.64%
Variable - TEBS II ⁽¹⁾		81,003,688		176,685	2014	July 2019 ⁽²⁾	Weekly	1.77%	1.39%	3.16%
Variable - TEBS III ⁽¹⁾		57,406,058		57,364	2015	July 2020⁽³⁾	Weekly	1.77%	1.16%	2.93%
Total Debt Financings	$	558,328,347

⁽¹⁾	Facility fees are variable

⁽²⁾	The Partnership may unilaterally elect to extend the financing for an additional five-year period through July 2024. If the Partnership exercises its extension option, Freddie Mac has the option to adjust components of the Facility Fees.

⁽³⁾	The Partnership may unilaterally elect to extend the financing for an additional five-year period through July 2025. If the Partnership exercises its extension option, Freddie Mac has the option to adjust components of the Facility Fees.

The TOB and Term A/B Trusts are subject to a Master Trust Agreement with DB that contains covenants with which the Partnership is required to comply. If the Partnership were to be out of compliance with any of these covenants, a termination event of the financing facilities would be triggered. The most restrictive covenant within the Master Trust Agreement states that cash available to distribute plus interest expense for the trailing twelve months must be at least twice the trailing twelve-month interest expense. The Partnership is in compliance with these covenants as of June 30, 2018.

At June 30, 2018 and December 31, 2017, the Partnership posted cash collateral (i.e. restricted cash) related to the interest rate swaps associated with specific debt financings. The Partnership has also posted cash collateral as contractually required under the terms of the three TEBS Financings. In addition, to mitigate its exposure to interest rate fluctuations on the variable rate TEBS Financings, the Partnership also entered into interest rate cap agreements (Note 16).

Debt Financing Activity in the First Six Months of 2018

The following Term A/B Trusts were collapsed and paid off in full at prices that approximated the Partnership’s carrying value plus accrued interest:

Mortgage Revenue Bond	Debt Facility	Month	Paydown Applied
Seasons Lakewood - Series B	Term A/B Trust	March 2018	$	4,475,000
Summerhill - Series B	Term A/B Trust	March 2018		2,870,000
Oaks at Georgetown - Series B	Term A/B Trust	April 2018		4,690,000
San Vicente - Series B	Term A/B Trust	May 2018		1,555,000
The Village at Madera - Series B	Term A/B Trust	May 2018		1,465,000

In April 2018, the maturity date of the Partnership’s variable TOB Trusts was extended to May 2019.

Debt Financing Activity in the First Six Months of 2017

In February 2017, the Partnership entered into 19 new Term A/B Trust financings secured by various MRBs. The Partnership capitalized costs totaling approximately $1.2 million as deferred financing costs, of which approximately $921,000 were paid to a related party (Note 20). The following table summarizes the gross principal and terms of the new Term A/B Trusts:

Term A/B Trusts Securitization	Outstanding Term A/B Trust Financing		Year Acquired	Stated Maturity	Fixed Interest Rate
San Vicente - Series A	$	3,150,000	2017	February 2022		3.89	%
San Vicente - Series B		1,555,000	2017	June 2018		3.76	%
Las Palmas - Series A		1,530,000	2017	February 2022		3.89	%
Las Palmas - Series B		1,505,000	2017	June 2018		3.76	%
The Village at Madera - Series A		2,780,000	2017	February 2022		3.89	%
The Village at Madera - Series B		1,465,000	2017	July 2018		3.76	%
Harmony Court Bakersfield - Series A		3,360,000	2017	February 2022		3.89	%
Harmony Court Bakersfield - Series B		1,700,000	2017	July 2018		3.76	%
Summerhill - Series A		5,785,000	2017	February 2022		3.89	%
Summerhill - Series B		2,870,000	2017	July 2018		3.76	%
Courtyard - Series A		9,210,000	2017	February 2022		3.89	%
Courtyard - Series B		5,295,000	2017	July 2018		3.76	%
Seasons Lakewood - Series A		6,615,000	2017	February 2022		3.89	%
Seasons Lakewood - Series B		4,475,000	2017	August 2018		3.76	%
Seasons San Juan Capistrano - Series A		11,140,000	2017	February 2022		3.89	%
Seasons San Juan Capistrano - Series B		5,590,000	2017	August 2018		3.76	%
Avistar at Wood Hollow - Series A		27,075,000	2017	February 2027		4.46	%
Avistar at Wilcrest - Series A		3,210,000	2017	February 2027		4.46	%
Avistar at Copperfield - Series A		8,500,000	2017	February 2027		4.46	%
Total Term A/B Trust Financing	$	106,810,000

In March 2017, the Partnership refinanced four Term A/B Trusts into new Term A/B Trusts with longer stated terms. Based on the terms of the new and old Term A/B Trusts, the refinancing was accounted for as a modification, with approximately $47,000 capitalized as deferred financing costs. The following table summarizes the gross principal terms of the new Term A/B Trusts:

Term A/B Trusts Securitization	Outstanding Term A/B Trust Financing		Year Acquired	Stated Maturity	Fixed Interest Rate
Oaks at Georgetown - Series A	$	11,100,000	2017	March 2022		3.89	%
Oaks at Georgetown - Series B		4,690,000	2017	August 2018		3.76	%
Harmony Terrace - Series A		6,210,000	2017	March 2022		3.89	%
Harmony Terrace - Series B		6,290,000	2017	August 2018		3.76	%
Total Term A/B Trust Financing	$	28,290,000

In June 2017, the maturity date of the Partnership’s variable TOB Trusts was extended until May 2018.

Future Maturities

The Partnership’s contractual maturities of borrowings for the twelve-month periods ending December 31^st for the next five years and thereafter are as follows:

Remainder of 2018	$	20,670,553
2019		168,839,558
2020		113,138,107
2021		2,361,722
2022		61,286,487
Thereafter		179,374,563
Total		545,670,990
Deferred financing costs		(3,498,661	)
Total debt financing, net	$	542,172,329