Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Range of Effective Yields and Weighted Average Effective Yields of Partnership's Investments

The range of effective yields and weighted average effective yields of the Partnership’s investments in MRBs, taxable MRBs and bond purchase commitments as of December 31, 2020 and 2019 are as follows:

	Range of Effective Yields		Weighted Average Effective Yields⁽¹⁾
Security Type	December 31, 2020	December 31, 2019	December 31, 2020			December 31, 2019
Mortgage revenue bonds	1.4% - 13.3%	2.4% - 8.5%		3.0	%		3.8	%
Taxable mortgage revenue bonds	7.1% - 7.4%	8.7% - 8.9%		7.3	%		8.8	%
Bond purchase commitments	3.5%	N/A		3.5	%	N/A

⁽¹⁾	^{Weighted by the total principal outstanding of all the respective securities as of the reporting date.}

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis as of December 31, 2020 are summarized as follows:

	Fair Value Measurements as of December 31, 2020
Description	Assets 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
Mortgage revenue bonds, held in trust	$	768,468,644	$	-	$	-	$	768,468,644
Mortgage revenue bonds		25,963,841		-		-		25,963,841
Bond purchase commitments (reported within other assets)		431,879		-		-		431,879
Taxable mortgage revenue bonds (reported within other assets)		1,510,437		-		-		1,510,437
Derivative financial instruments (reported within other assets)		321,503		-		-		321,503
Total Assets at Fair Value, net	$	796,696,304	$	-	$	-	$	796,696,304

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 are summarized as follows:

	Fair Value Measurements as of December 31, 2019
Description	Assets 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
Mortgage revenue bonds, held in trust	$	743,587,715	$	-	$	-	$	743,587,715
Mortgage revenue bonds		30,009,750		-		-		30,009,750
PHC Certificates		43,349,357		-		-		43,349,357
Taxable mortgage revenue bonds (reported within other assets)		1,383,237		-		-		1,383,237
Derivative instruments (reported within other assets)		10,911		-		-		10,911
Total Assets at Fair Value, net	$	818,340,970	$	-	$	-	$	818,340,970

Summary of Activity Related to Level 3 Assets and Liabilities

The following table summarizes the activity related to Level 3 assets and liabilities for the year ended December 31, 2020:

	For the Years Ended December 31, 2020
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds⁽¹⁾			Bond Purchase Commitments		PHC Certificates			Taxable Mortgage Revenue Bonds			Derivative Financial Instruments			Total
Beginning Balance January 1, 2020	$	773,597,465		$	-	$	43,349,357		$	1,383,237		$	10,911		$	818,340,970
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and interest expense)		125,050			-		(7,219	)		-			2,026,070			2,143,901
Included in earnings (impairment of securities and provision for credit loss)		(7,318,590	)		-		-			-			-			(7,318,590	)
Included in earnings (gain on sale of securities)		-			-		1,416,023			-			-			1,416,023
Included in other comprehensive (loss) income		34,126,208			431,879		(1,408,804	)		136,046			-			33,285,329
Purchases		9,513,450			-		-			-			-			9,513,450
Sale of securities		-			-		(43,349,357	)		-			-			(43,349,357	)
Settlements		(15,611,098	)		-		-			(8,846	)		(1,715,478	)		(17,335,422	)
Ending Balance December 31, 2020	$	794,432,485		$	431,879	$	-		$	1,510,437		$	321,503		$	796,696,304
Total amount of gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets or liabilities held on December 31, 2020	$	(7,318,590	)	$	-	$	-		$	-		$	116,899		$	(7,201,691	)

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

The following table summarizes the activity related to Level 3 assets and liabilities for the year ended December 31, 2019:

	For the Years Ended December 31, 2019
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds ⁽¹⁾			PHC Certificates			Taxable Mortgage Revenue Bonds			Interest Rate Derivatives			Total
Beginning Balance January 1, 2019	$	732,153,435		$	48,672,086		$	1,409,895		$	626,633		$	782,862,049
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and interest expense)		142,356			(6,708	)		-			(499,835	)		(364,187	)
Included in other comprehensive income		39,320,186			984,021			26,428			-			40,330,635
Purchases		19,250,000			-			-			29,527			19,279,527
Settlements		(17,268,512	)		(6,300,042	)		(53,086	)		(145,414	)		(23,767,054	)
Ending Balance December 31, 2019	$	773,597,465		$	43,349,357		$	1,383,237		$	10,911		$	818,340,970
Total amount of losses for the period included in earnings attributable to the change in unrealized losses relating to assets or liabilities held on December 31, 2019	$	-		$	-		$	-		$	(499,835	)	$	(499,835	)

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

Summary of Fair Value of Partnership's Financial Liabilities

The table below summarizes the fair value of the Partnership’s financial liabilities as of December 31, 2020 and 2019:

	December 31, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:
Debt financing	$	673,957,640		709,760,933	$	536,197,421	$	554,993,494
Unsecured lines of credit		7,475,000		7,475,000		13,200,000		13,200,000
Mortgages payable and other secured financing		25,984,872		25,986,514		26,802,246		26,812,851