6. Investments in Mortgage Revenue Bonds (“MRBs”)

MRBs owned by the Partnership have been issued to provide construction and/or permanent financing for Residential Properties and commercial properties. MRBs are either held directly by the Partnership or are held in trusts created in connection with debt financing transactions (Note 14). The Partnership had the following investments in MRBs at September 30, 2018 and December 31, 2017:

	September 30, 2018
Description of Mortgage Revenue Bonds Held in Trust	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
Courtyard - Series A⁽⁵⁾	CA	$	10,230,000	$	767,954	$	-		$	10,997,954
Glenview Apartments - Series A ⁽⁴⁾	CA		4,593,499		415,667		-			5,009,166
Harmony Court Bakersfield - Series A⁽⁵⁾	CA		3,730,000		244,930		-			3,974,930
Harmony Terrace - Series A ⁽⁵⁾	CA		6,900,000		520,937		-			7,420,937
Harden Ranch - Series A ⁽³⁾	CA		6,793,508		816,778		-			7,610,286
Las Palmas II - Series A ⁽⁵⁾	CA		1,695,000		110,566		-			1,805,566
Montclair Apartments - Series A ⁽⁴⁾	CA		2,488,555		281,929		-			2,770,484
Montecito at Williams Ranch Apartments - Series A & B ⁽²⁾	CA		12,471,000		782,663		-			13,253,663
San Vicente - Series A ⁽⁵⁾	CA		3,495,000		211,792		-			3,706,792
Santa Fe Apartments - Series A ⁽⁴⁾	CA		3,014,791		353,169		-			3,367,960
Seasons at Simi Valley - Series A⁽⁵⁾	CA		4,335,920		558,219		-			4,894,139
Seasons Lakewood - Series A ⁽⁵⁾	CA		7,350,000		520,052		-			7,870,052
Seasons San Juan Capistrano - Series A⁽⁵⁾	CA		12,375,000		875,598		-			13,250,598
Summerhill - Series A ⁽⁵⁾	CA		6,423,000		391,809		-			6,814,809
Sycamore Walk - Series A⁽⁵⁾	CA		3,607,439		294,702		-			3,902,141
The Village at Madera - Series A ⁽⁵⁾	CA		3,085,000		202,576		-			3,287,576
Tyler Park Townhomes - Series A ⁽³⁾	CA		5,919,230		669,130		-			6,588,360
Vineyard Gardens - Series A & B ⁽²⁾	CA		6,841,000		456,388		-			7,297,388
Westside Village Market - Series A ⁽³⁾	CA		3,868,205		392,487		-			4,260,692
Brookstone ⁽¹⁾	IL		7,437,328		1,872,124		-			9,309,452
Copper Gate Apartments ⁽³⁾	IN		5,100,000		607,810		-			5,707,810
Renaissance - Series A ⁽⁴⁾	LA		11,153,363		700,482		-			11,853,845
Live 929 Apartments ⁽²⁾	MD		40,287,043		2,642,087		-			42,929,130
Woodlynn Village ⁽¹⁾	MN		4,244,000		9,283		-			4,253,283
Greens Property - Series A ⁽³⁾	NC		8,056,000		811,822		-			8,867,822
Silver Moon - Series A ⁽⁴⁾	NM		7,837,176		647,038		-			8,484,214
Ohio Properties - Series A ⁽¹⁾	OH		14,022,004		363,198		-			14,385,202
Bridle Ridge ⁽¹⁾	SC		7,395,000		44,052		-			7,439,052
Columbia Gardens ⁽⁵⁾	SC		13,261,234		1,281,313		-			14,542,547
Companion at Thornhill Apartments⁽⁵⁾	SC		11,322,984		967,595		-			12,290,579
Cross Creek ⁽¹⁾	SC		6,142,746		2,519,386		-			8,662,132
The Palms at Premier Park Apartments ⁽³⁾	SC		19,094,174		1,989,068		-			21,083,242
Village at River's Edge ⁽⁵⁾	SC		9,953,893		1,134,923		-			11,088,816
Willow Run ⁽⁵⁾	SC		13,077,771		1,211,709		-			14,289,480
Arbors at Hickory Ridge ⁽³⁾	TN		11,227,931		1,221,790		-			12,449,721
Pro Nova 2014-1 ⁽²⁾	TN		10,028,678		-		(136,577	)		9,892,101
Avistar at Copperfield - Series A⁽²⁾	TX		10,000,000		292,102		-			10,292,102
Avistar at the Crest - Series A ⁽³⁾	TX		9,382,685		782,054		-			10,164,739
Avistar at the Oaks - Series A ⁽³⁾	TX		7,578,091		582,108		-			8,160,199
Avistar at the Parkway - Series A ⁽⁴⁾	TX		13,144,902		1,033,223		-			14,178,125
Avistar at Wilcrest - Series A⁽²⁾	TX		3,775,000		51,458		-			3,826,458
Avistar at Wood Hollow - Series A⁽²⁾	TX		31,850,000		436,575		-			32,286,575
Avistar in 09 - Series A ⁽³⁾	TX		6,543,388		502,628		-			7,046,016
Avistar on the Boulevard - Series A ⁽³⁾	TX		15,984,416		1,196,940		-			17,181,356
Avistar on the Hills - Series A ⁽³⁾	TX		5,235,687		470,687		-			5,706,374
Bella Vista ⁽¹⁾	TX		6,225,000		-		-			6,225,000
Bruton Apartments ⁽⁵⁾	TX		17,963,733		1,567,441		-			19,531,174
Concord at Gulfgate - Series A ⁽⁵⁾	TX		19,185,000		1,903,863		-			21,088,863
Concord at Little York - Series A ⁽⁵⁾	TX		13,440,000		1,393,865		-			14,833,865
Concord at Williamcrest - Series A ⁽⁵⁾	TX		20,820,000		2,159,246		-			22,979,246
Crossing at 1415 - Series A⁽⁵⁾	TX		7,491,405		557,093		-			8,048,498
Decatur Angle ⁽⁵⁾	TX		22,672,339		1,564,822		-			24,237,161
Esperanza at Palo Alto ⁽⁵⁾	TX		19,519,236		1,966,425		-			21,485,661
Heights at 515 - Series A⁽⁵⁾	TX		6,858,511		596,685		-			7,455,196
Heritage Square - Series A ⁽⁴⁾	TX		10,985,341		723,148		-			11,708,489
Oaks at Georgetown - Series A ⁽⁵⁾	TX		12,330,000		469,808		-			12,799,808
Runnymede ⁽¹⁾	TX		10,095,000		126,871		-			10,221,871
Southpark ⁽¹⁾	TX		11,749,771		2,511,470		-			14,261,241
Vantage at Judson -Series B ⁽⁴⁾	TX		25,966,084		2,345,328		-			28,311,412
15 West Apartments ⁽⁵⁾	WA		9,752,876		1,306,486		-			11,059,362
Mortgage revenue bonds held in trust		$	627,405,937	$	51,431,352	$	(136,577	)	$	678,700,712

⁽¹⁾	MRBs owned by ATAX TEBS I, LLC (M24 TEBS), Note 14

⁽²⁾	MRBs held by Deutsche Bank in a secured financing transaction, Note 14

⁽³⁾	MRBs owned by ATAX TEBS II, LLC (M31 TEBS), Note 14

⁽⁴⁾	MRBs owned by ATAX TEBS III, LLC (M33 TEBS), Note 14

⁽⁵⁾	MRBs owned by ATAX TEBS IV, LLC (M45 TEBS), Note 14

	September 30, 2018
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
Courtyard - Series B	CA	$	6,228,000	$	-	$	(10,898	)	$	6,217,102
Seasons San Juan Capistrano - Series B	CA		6,574,000		-		(8,214	)		6,565,786
Greens Property - Series B	NC		934,834		152,008		-			1,086,842
Ohio Properties - Series B	OH		3,524,830		77,201		-			3,602,031
Rosewood Townhomes - Series A & B	SC		9,750,000		-		(805,122	)		8,944,878
South Pointe Apartments - Series A & B	SC		22,700,000		-		(1,785,864	)		20,914,136
Avistar at Copperfield - Series B	TX		4,000,000		13,018		-			4,013,018
Avistar at the Crest - Series B	TX		746,417		33,193		-			779,610
Avistar at the Oaks - Series B	TX		546,066		20,764		-			566,830
Avistar at the Parkway - Series B	TX		124,668		30,701		-			155,369
Avistar at Wilcrest - Series B	TX		1,550,000		4,620		-			1,554,620
Avistar at Wood Hollow - Series B	TX		8,410,000		27,370		-			8,437,370
Avistar in 09 - Series B	TX		450,455		17,128		-			467,583
Avistar on the Boulevard - Series B	TX		443,523		16,514		-			460,037
Mortgage revenue bonds held by the Partnership		$	65,982,793	$	392,517	$	(2,610,098	)	$	63,765,212

	December 31, 2017
Description of Mortgage Revenue Bonds Held in Trust	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss		Estimated Fair Value
Courtyard - Series A & B⁽²⁾	CA	$	16,458,000	$	1,226,192	$	-	$	17,684,192
Glenview Apartments - Series A ⁽⁴⁾	CA		4,627,228		523,464		-		5,150,692
Harmony Court Bakersfield - Series A⁽²⁾	CA		3,730,000		430,637		-		4,160,637
Harmony Terrace - Series A & B ⁽²⁾	CA		14,300,000		871,221		-		15,171,221
Harden Ranch - Series A ⁽³⁾	CA		6,845,985		1,182,914		-		8,028,899
Las Palmas II - Series A & B ⁽²⁾	CA		3,465,000		193,418		-		3,658,418
Montclair Apartments - Series A ⁽⁴⁾	CA		2,506,828		398,840		-		2,905,668
San Vicente - Series A & B ⁽²⁾	CA		5,320,000		309,038		-		5,629,038
Santa Fe Apartments - Series A ⁽⁴⁾	CA		3,036,928		535,673		-		3,572,601
Seasons at Simi Valley - Series A⁽²⁾	CA		4,366,195		807,864		-		5,174,059
Seasons Lakewood - Series A & B ⁽²⁾	CA		12,610,000		884,537		-		13,494,537
Seasons San Juan Capistrano - Series A & B⁽²⁾	CA		18,949,000		1,233,570		-		20,182,570
Summerhill - Series A & B ⁽²⁾	CA		9,795,000		738,806		-		10,533,806
Sycamore Walk - Series A⁽²⁾	CA		3,632,000		490,314		-		4,122,314
The Village at Madera - Series A & B ⁽²⁾	CA		4,804,000		355,303		-		5,159,303
Tyler Park Townhomes - Series A ⁽³⁾	CA		5,965,475		807,688		-		6,773,163
Westside Village Market - Series A ⁽³⁾	CA		3,898,427		568,423		-		4,466,850
Lake Forest ⁽¹⁾	FL		8,505,000		1,579,885		-		10,084,885
Brookstone ⁽¹⁾	IL		7,450,595		2,017,019		-		9,467,614
Copper Gate Apartments ⁽³⁾	IN		5,100,000		778,339		-		5,878,339
Renaissance - Series A ⁽⁴⁾	LA		11,239,441		2,096,328		-		13,335,769
Live 929 Apartments ⁽²⁾	MD		40,573,347		3,710,942		-		44,284,289
Woodlynn Village ⁽¹⁾	MN		4,267,000		44,428		-		4,311,428
Greens Property - Series A ⁽³⁾	NC		8,126,000		1,113,852		-		9,239,852
Silver Moon - Series A ⁽⁴⁾	NM		7,879,590		1,140,448		-		9,020,038
Ohio Properties - Series A ⁽¹⁾	OH		14,113,000		788,199		-		14,901,199
Bridle Ridge ⁽¹⁾	SC		7,465,000		1,199		-		7,466,199
Columbia Gardens ⁽²⁾	SC		13,396,856		1,413,831		-		14,810,687
Companion at Thornhill Apartments⁽²⁾	SC		11,404,758		1,284,441		-		12,689,199
Cross Creek ⁽¹⁾	SC		6,136,553		2,850,344		-		8,986,897
The Palms at Premier Park Apartments ⁽³⁾	SC		19,238,297		2,712,429		-		21,950,726
Village at River's Edge ⁽²⁾	SC		10,000,000		1,182,706		-		11,182,706
Willow Run ⁽²⁾	SC		13,212,587		1,391,536		-		14,604,123
Arbors at Hickory Ridge ⁽³⁾	TN		11,342,234		1,693,626		-		13,035,860
Pro Nova 2014-1 ⁽²⁾	TN		10,038,889		133,878		-		10,172,767
Avistar at Copperfield - Series A⁽²⁾	TX		10,000,000		628,644		-		10,628,644
Avistar at the Crest - Series A ⁽³⁾	TX		9,456,384		1,187,142		-		10,643,526
Avistar at the Oaks - Series A ⁽³⁾	TX		7,635,895		938,465		-		8,574,360
Avistar at the Parkway - Series A ⁽⁴⁾	TX		13,233,665		932,753		-		14,166,418
Avistar at Wilcrest - Series A⁽²⁾	TX		3,775,000		125,170		-		3,900,170
Avistar at Wood Hollow - Series A⁽²⁾	TX		31,850,000		1,865,826		-		33,715,826
Avistar in 09 - Series A ⁽³⁾	TX		6,593,300		716,944		-		7,310,244
Avistar on the Boulevard - Series A ⁽³⁾	TX		16,109,972		1,947,465		-		18,057,437
Avistar on the Hills - Series A ⁽³⁾	TX		5,275,623		648,383		-		5,924,006
Bella Vista ⁽¹⁾	TX		6,295,000		42,718		-		6,337,718
Bruton Apartments ⁽²⁾	TX		18,051,775		3,042,939		-		21,094,714
Concord at Gulfgate - Series A ⁽²⁾	TX		19,185,000		2,759,654		-		21,944,654
Concord at Little York - Series A ⁽²⁾	TX		13,440,000		1,999,572		-		15,439,572
Concord at Williamcrest - Series A ⁽²⁾	TX		20,820,000		2,994,839		-		23,814,839
Crossing at 1415 - Series A⁽²⁾	TX		7,540,000		634,091		-		8,174,091
Decatur Angle ⁽²⁾	TX		22,794,912		2,985,955		-		25,780,867
Heights at 515 - Series A⁽²⁾	TX		6,903,000		580,522		-		7,483,522
Heritage Square - Series A ⁽⁴⁾	TX		11,063,027		993,609		-		12,056,636
Oaks at Georgetown - Series A & B ⁽²⁾	TX		17,842,000		915,705		-		18,757,705
Runnymede ⁽¹⁾	TX		10,150,000		79,514		-		10,229,514
Southpark ⁽¹⁾	TX		11,693,138		2,960,294		-		14,653,432
Vantage at Judson -Series B ⁽⁴⁾	TX		26,133,557		3,117,969		-		29,251,526
15 West Apartments ⁽²⁾	WA		9,797,833		1,839,648		-		11,637,481
Mortgage revenue bonds held in trust		$	639,438,294	$	71,429,153	$	-	$	710,867,447

⁽¹⁾	MRBs owned by ATAX TEBS I, LLC (M24 TEBS), Note 14

⁽²⁾	MRBs held by Deutsche Bank in a secured financing transaction, Note 14

⁽³⁾	MRBs owned by ATAX TEBS II, LLC (M31 TEBS), Note 14

⁽⁴⁾	MRBs owned by ATAX TEBS III, LLC (M33 TEBS), Note 14

	December 31, 2017
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
Montecito at Williams Ranch Apartments - Series A & B	CA	$	12,471,000	$	1,111,807	$	-		$	13,582,807
Seasons at Simi Valley - Series B	CA		1,944,000		-		(466	)		1,943,534
Sycamore Walk - Series B	CA		1,815,000		-		(151	)		1,814,849
Vineyard Gardens - Series A & B	CA		6,841,000		-		-			6,841,000
Greens Property - Series B	NC		937,399		193,991		-			1,131,390
Ohio Properties - Series B	OH		3,536,060		149,630		-			3,685,690
Rosewood Townhomes - Series A & B	SC		9,750,000		-		-			9,750,000
South Pointe Apartments - Series A & B	SC		22,700,000		-		-			22,700,000
Avistar at Copperfield - Series B	TX		4,000,000		13,514		-			4,013,514
Avistar at the Crest - Series B	TX		749,455		58,871		-			808,326
Avistar at the Oaks - Series B	TX		548,202		41,286		-			589,488
Avistar at the Parkway - Series B	TX		124,861		30,715		-			155,576
Avistar at Wilcrest - Series B	TX		1,550,000		5,306		-			1,555,306
Avistar at Wood Hollow - Series B	TX		8,410,000		30,276		-			8,440,276
Avistar in 09 - Series B	TX		452,217		28,675		-			480,892
Avistar on the Boulevard - Series B	TX		445,328		33,232		-			478,560
Mortgage revenue bonds held by the Partnership		$	76,274,522	$	1,697,303	$	(617	)	$	77,971,208

See Note 21 for a description of the methodology and significant assumptions used in determining the fair value of the MRBs. Unrealized gains or losses on the MRBs 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 MRBs.

Bond Activity in the First Nine Months of 2018

The following MRB was acquired during the nine months ended September 30, 2018:

Property Name

Month

Acquired

Property Location

Units

Maturity Date

Base Interest Rate

Principal

Outstanding at Date

of Acquisition

Esperanza at Palo Alto ⁽¹⁾

May

San Antonio, TX

322

7/1/2058

5.80

19,540,000

⁽¹⁾ Previously reported bond purchase commitment that converted to an MRB in May 2018.

The following MRBs were redeemed at prices that approximated the Partnership’s carrying value plus accrued interest during the nine months ended September 30, 2018:

Property Name	Month Redeemed	Property Location	Units		Original Maturity Date	Base Interest Rate			Principal Outstanding at Date of Redemption
Sycamore Walk - Series B	January	Bakersfield, CA		112	1/1/2018		8.00	%	$	1,815,000
Seasons Lakewood - Series B	March	Lakewood, CA		85	1/1/2019		8.00	%		5,260,000
Summerhill - Series B	March	Bakersfield, CA		128	12/1/2018		8.00	%		3,372,000
Oaks at Georgetown - Series B	April	Georgetown, TX		192	1/1/2019		8.00	%		5,512,000
Seasons at Simi Valley - Series B	April	Simi Valley, CA		69	9/1/2018		8.00	%		1,944,000
San Vicente - Series B	May	Soledad, CA		50	11/1/2018		8.00	%		1,825,000
The Village at Madera - Series B	May	Madera, CA		75	12/1/2018		8.00	%		1,719,000
Las Palmas - Series B	July	Coachella, CA		81	11/1/2018		8.00	%		1,770,000
Harmony Terrace - Series B	August	Simi Valley, CA		136	1/1/2019		8.00	%		7,400,000
Lake Forest	September	Daytona Beach, FL		240	12/1/2031		6.25	%		8,397,000
									$	39,014,000

Upon redemption of the Lake Forest MRB, the Partnership realized contingent interest income of approximately $4.2 million. The Partnership also realized additional income due to the early redemption of the MRB of approximately $1.5 million. The additional income is reported within other income on the condensed consolidated statements of operations.

Bond Activity in the First Nine Months of 2017

The following MRBs were acquired during the nine months ended September 30, 2017:

Property Name	Month Acquired	Property Location	Units		Maturity Date	Base Interest Rate			Principal Outstanding at Date of Acquisition
Avistar at Copperfield - Series A	February	Houston, TX		192	5/1/2054		5.75	%	$	10,000,000
Avistar at Copperfield - Series B	February	Houston, TX	192		6/1/2054		12.00	%		4,000,000
Avistar at Wilcrest - Series A	February	Houston, TX	88		5/1/2054		5.75	%		3,775,000
Avistar at Wilcrest - Series B	February	Houston, TX	88		6/1/2054		12.00	%		1,550,000
Avistar at Wood Hollow - Series A	February	Austin, TX	409		5/1/2054		5.75	%		31,850,000
Avistar at Wood Hollow - Series B	February	Austin, TX	409		6/1/2054		12.00	%		8,410,000
Montecito at Williams Ranch Apartments - Series A	September	Salinas, CA	132		10/1/2034		5.50	%		7,690,000
Montecito at Williams Ranch Apartments - Series B	September	Salinas, CA	132		10/1/2019		5.50	%		4,781,000
									$	72,056,000

The following MRB was redeemed at a price that approximated the Partnership’s carrying value plus accrued interest during the nine months ended September 30, 2017:

Property Name

Month

Redeemed

Property Location

Units

Original

Maturity Date

Base Interest Rate

Principal

Outstanding at Date

of Redemption

Harmony Court Bakersfield - Series B

August

Bakersfield, CA

12/1/2018

5.50

1,997,000