Segments

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segments

23. Segments

As of March 31, 2021, the Partnership has three reportable segments - Mortgage Revenue Bond Investments, Other Investments, and MF Properties. Previously, the Partnership had a fourth reportable segment related to its investments in Public Housing Capital Fund Trusts; however, all activity in that segment ceased with the sale of the Public Housing Capital Trust Fund investments in January 2020 as described further below. The Partnership separately reports its consolidation and elimination information because it does not allocate certain items to the segments.

The Partnership Agreement authorizes the Partnership to make investments in tax-exempt securities other than MRBs provided that the tax-exempt investments are rated in one of the four highest rating categories by a national securities rating agency. The Partnership 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 Partnership Agreement.  Tax-exempt and other investments consist of taxable MRBs, a taxable GIL, real estate assets and investments in unconsolidated entities. 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.

Mortgage Revenue Bond Investments Segment

The Mortgage Revenue Bond Investments segment consists of the Partnership’s portfolio of MRBs, GILs and related property loans that have been issued to provide construction and/or permanent financing for Residential Properties and commercial properties in their market areas.  Such MRBs and GILs are held as investments, and the related property loans, net of loan loss allowances, are reported as such on the Partnership’s condensed consolidated balance sheets.  As of March 31, 2021, the Partnership reported 75 MRBs and seven GILs. The Residential Properties financed by MRBs and GILs contain a total of 10,935 and 1,267 rental units, respectively. In addition, one MRB (Provision Center 2014-1) is collateralized by commercial real estate. All “General and administrative expenses” on the Partnership’s condensed consolidated statements of operations are reported within this segment.

Other Investments Segment

The Other Investments segment consists of the operations of ATAX Vantage Holdings, LLC, which invests in unconsolidated entities (Note 9) and property loans to certain market-rate multifamily properties (Note 10).

MF Properties Segment

The MF Properties segment consists of multifamily and student housing residential properties held by the Partnership (Note 8). 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.  As of March 31, 2021, the Partnership owned two MF Properties containing a total of 859 rental units. Income tax expense for the Greens Hold Co is reported within this segment.

Public Housing Capital Fund Trusts Segment

The Public Housing Capital Fund Trusts segment consisted of the assets, liabilities, and related income and expenses of the Partnership’s PHC Certificates and the related TOB Trust financings. In January 2020, the Partnership sold the PHC Certificates to an unrelated party, and the related TOB Trust financings were collapsed, and all principal and interest was paid in full.  As a result, the Public Housing Capital Fund Trusts segment has no activity after January 2020.

The following table details certain financial information for the Partnership’s reportable segments for the three months ended March 31, 2021 and 2020:

	For the Three Months Ended March 31,
	2021			2020
Total revenues
Mortgage Revenue Bond Investments	$	10,794,788		$	10,205,803
Other Investments		1,898,176			1,403,615
MF Properties		1,694,524			1,952,247
Public Housing Capital Fund Trusts		-			174,470
Total revenues	$	14,387,488		$	13,736,135
Interest expense
Mortgage Revenue Bond Investments	$	4,944,277		$	5,498,199
Other Investments		-			-
MF Properties		282,198			321,776
Public Housing Capital Fund Trusts		-			197,993
Total interest expense	$	5,226,475		$	6,017,968
Depreciation expense
Mortgage Revenue Bond Investments	$	5,811		$	2,424
Other Investments		-			-
MF Properties		677,649			707,014
Public Housing Capital Fund Trusts		-			-
Total depreciation expense	$	683,460		$	709,438
Net income (loss)
Mortgage Revenue Bond Investments	$	2,549,452		$	440,336
Other Investments		4,706,221			1,403,152
MF Properties		(262,819	)		(252,730	)
Public Housing Capital Fund Trusts		-			1,390,999
Net income (loss)	$	6,992,854		$	2,981,757

The following table details total assets for the Partnership’s reportable segments as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Total assets
Mortgage Revenue Bond Investments	$	1,131,733,809		$	1,114,146,614
Other Investments		94,728,344			106,931,182
MF Properties		67,649,074			67,988,190
Public Housing Capital Fund Trusts		-			-
Consolidation/eliminations		(102,251,108	)		(113,818,107	)
Total assets	$	1,191,860,119		$	1,175,247,879