Mortgage Revenue Bonds

9 Months Ended

Sep. 30, 2021

Investments In Mortgage Revenue Bonds [Abstract]

6. Mortgage Revenue Bonds

The Partnership’s MRBs provide construction and/or permanent financing for Residential Properties and a commercial property. MRBs are either held directly by the Partnership or are held in trusts created in connection with debt financing transactions (Note 16). The Partnership had the following investments in MRBs as of September 30, 2021 and December 31, 2020:

	September 30, 2021
Description of Mortgage Revenue Bonds Held in Trust	State	Cost Adjusted for Paydowns and Allowances		Cumulative Unrealized Gain		Cumulative Unrealized Loss		Estimated Fair Value
Courtyard - Series A ⁽⁴⁾	CA	$	9,993,374	$	2,104,001	$	-	$	12,097,375
Glenview Apartments - Series A ⁽³⁾	CA		4,443,092		908,843		-		5,351,935
Harmony Court Bakersfield - Series A ⁽⁴⁾	CA		3,643,723		735,305		-		4,379,028
Harmony Terrace - Series A ⁽⁴⁾	CA		6,745,564		1,461,331		-		8,206,895
Harden Ranch - Series A ⁽²⁾	CA		6,559,492		1,375,319		-		7,934,811
Las Palmas II - Series A ⁽⁴⁾	CA		1,653,240		338,062		-		1,991,302
Montclair Apartments - Series A ⁽³⁾	CA		2,407,071		492,371		-		2,899,442
Montecito at Williams Ranch Apartments - Series A ⁽⁶⁾	CA		7,583,121		1,986,677		-		9,569,798
Montevista - Series A ⁽⁶⁾	CA		6,712,763		2,094,223		-		8,806,986
Ocotillo Springs - Series A ⁽⁶⁾	CA		10,070,000		211,967		-		10,281,967
San Vicente - Series A ⁽⁴⁾	CA		3,408,893		682,336		-		4,091,229
Santa Fe Apartments - Series A ⁽³⁾	CA		2,916,076		596,489		-		3,512,565
Seasons at Simi Valley - Series A ⁽⁴⁾	CA		4,200,917		1,032,960		-		5,233,877
Seasons Lakewood - Series A ⁽⁴⁾	CA		7,185,492		1,556,635		-		8,742,127
Seasons San Juan Capistrano - Series A ⁽⁴⁾	CA		12,098,022		2,620,866		-		14,718,888
Summerhill - Series A ⁽⁴⁾	CA		6,274,432		1,184,799		-		7,459,231
Sycamore Walk - Series A ⁽⁴⁾	CA		3,485,656		735,059		-		4,220,715
The Village at Madera - Series A ⁽⁴⁾	CA		3,013,642		634,491		-		3,648,133
Tyler Park Townhomes - Series A ⁽²⁾	CA		5,713,008		765,866		-		6,478,874
Vineyard Gardens - Series A ⁽⁶⁾	CA		3,947,054		997,673		-		4,944,727
Westside Village Market - Series A ⁽²⁾	CA		3,733,442		727,207		-		4,460,649
Brookstone ⁽¹⁾	IL		7,344,918		1,847,424		-		9,192,342
Copper Gate Apartments ⁽²⁾	IN		4,955,000		495,838		-		5,450,838
Renaissance - Series A ⁽³⁾	LA		10,767,672		3,942,658		-		14,710,330
Live 929 Apartments ⁽⁶⁾	MD		36,185,509		-		-		36,185,509
Woodlynn Village ⁽¹⁾	MN		4,093,000		14,225		-		4,107,225
Jackson Manor Apartments ⁽⁶⁾	MS		4,900,000		-		-		4,900,000
Gateway Village⁽⁶⁾	NC		2,600,000		132,943		-		2,732,943
Greens Property - Series A⁽²⁾	NC		7,748,000		378,239		-		8,126,239
Lynnhaven Apartments ⁽⁶⁾	NC		3,450,000		176,406		-		3,626,406
Silver Moon - Series A ⁽³⁾	NM		7,647,135		1,797,774		-		9,444,909
Village at Avalon - Series A ⁽⁵⁾	NM		16,099,958		4,093,405		-		20,193,363
Ohio Properties - Series A ⁽¹⁾	OH		13,616,000		-		-		13,616,000
Bridle Ridge ⁽¹⁾	SC		7,145,000		73,927		-		7,218,927
Columbia Gardens ⁽⁴⁾	SC		12,769,035		2,149,253		-		14,918,288
Companion at Thornhill Apartments ⁽⁴⁾	SC		10,957,982		1,913,654		-		12,871,636
Cross Creek ⁽¹⁾	SC		6,125,082		1,953,483		-		8,078,565
The Palms at Premier Park Apartments ⁽²⁾	SC		18,445,321		2,419,261		-		20,864,582
Village at River's Edge ⁽⁴⁾	SC		9,747,304		2,034,411		-		11,781,715
Willow Run ⁽⁴⁾	SC		12,592,729		2,005,382		-		14,598,111
Arbors at Hickory Ridge ⁽²⁾	TN		10,795,450		3,772,762		-		14,568,212
Avistar at Copperfield - Series A ⁽⁶⁾	TX		13,713,412		2,499,600		-		16,213,012
Avistar at the Crest - Series A ⁽²⁾	TX		9,052,461		1,874,594		-		10,927,055
Avistar at the Oaks - Series A ⁽²⁾	TX		7,319,090		1,578,486		-		8,897,576
Avistar at the Parkway - Series A ⁽³⁾	TX		12,615,887		2,369,577		-		14,985,464
Avistar at Wilcrest - Series A ⁽⁶⁾	TX		5,197,106		748,346		-		5,945,452
Avistar at Wood Hollow - Series A ⁽⁶⁾	TX		39,461,504		6,913,829		-		46,375,333
Avistar in 09 - Series A ⁽²⁾	TX		6,319,751		1,311,792		-		7,631,543
Avistar on the Boulevard - Series A ⁽²⁾	TX		15,421,844		3,074,231		-		18,496,075
Avistar on the Hills - Series A ⁽²⁾	TX		5,010,813		1,101,075		-		6,111,888
Bruton Apartments ⁽⁴⁾	TX		17,568,495		4,511,584		-		22,080,079
Concord at Gulfgate - Series A ⁽⁴⁾	TX		18,655,305		4,168,584		-		22,823,889
Concord at Little York - Series A ⁽⁴⁾	TX		13,068,923		3,027,488		-		16,096,411
Concord at Williamcrest - Series A ⁽⁴⁾	TX		20,245,162		4,606,709		-		24,851,871
Crossing at 1415 - Series A ⁽⁴⁾	TX		7,273,669		1,586,241		-		8,859,910
Decatur Angle ⁽⁴⁾	TX		22,124,707		5,058,303		-		27,183,010
Esperanza at Palo Alto ⁽⁴⁾	TX		19,109,120		5,252,121		-		24,361,241
Heights at 515 - Series A ⁽⁴⁾	TX		6,659,170		1,452,231		-		8,111,401
Heritage Square - Series A ⁽³⁾	TX		10,487,401		1,878,152		-		12,365,553
Oaks at Georgetown - Series A⁽⁴⁾	TX		12,054,029		2,173,762		-		14,227,791
Runnymede ⁽¹⁾	TX		9,740,000		1,119		-		9,741,119
Southpark ⁽¹⁾	TX		11,516,868		1,424,311		-		12,941,179
15 West Apartments ⁽⁴⁾	WA		9,550,479		2,832,108		-		12,382,587
Mortgage revenue bonds held in trust		$	615,938,365	$	111,887,768	$	-	$	727,826,133

⁽¹⁾	MRBs owned by ATAX TEBS I, LLC (M24 TEBS), Note 16

⁽²⁾	MRBs owned by ATAX TEBS II, LLC (M31 TEBS), Note 16

⁽³⁾	MRBs owned by ATAX TEBS III, LLC (M33 TEBS), Note 16

⁽⁴⁾	^{MRBs owned by ATAX TEBS IV, LLC (M45 TEBS), Note 16}

⁽⁵⁾	^{MRB held by Morgan Stanley in a debt financing transaction, Note 16}

⁽⁶⁾	^{MRBs held by Mizuho Capital Markets, LLC in a debt financing transaction, Note 16}

	September 30, 2021
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss		Estimated Fair Value
Solano Vista - Series A	CA	$	2,653,659	$	796,897	$	-	$	3,450,556
Greens Property - Series B	NC		921,935		62,330		-		984,265
Ohio Properties - Series B	OH		3,470,560		-		-		3,470,560
Provision Center 2014-1	TN		5,258,078		-		-		5,258,078
Avistar at the Crest - Series B	TX		731,998		117,989		-		849,987
Avistar at the Oaks - Series B	TX		535,927		85,705		-		621,632
Avistar at the Parkway - Series B	TX		123,696		38,527		-		162,223
Avistar in 09 - Series B	TX		442,092		70,699		-		512,791
Avistar on the Boulevard - Series B	TX		434,955		67,137		-		502,092
Mortgage revenue bonds held by the Partnership		$	14,572,900	$	1,239,284	$	-	$	15,812,184

	December 31, 2020
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 ⁽⁴⁾	CA	$	10,061,161	$	2,487,317	$	-	$	12,548,478
Glenview Apartments - Series A ⁽³⁾	CA		4,483,154		1,010,425		-		5,493,579
Harmony Court Bakersfield - Series A ⁽⁴⁾	CA		3,668,439		889,216		-		4,557,655
Harmony Terrace - Series A ⁽⁴⁾	CA		6,791,096		1,724,350		-		8,515,446
Harden Ranch - Series A ⁽²⁾	CA		6,621,823		1,606,690		-		8,228,513
Las Palmas II - Series A ⁽⁴⁾	CA		1,664,566		400,431		-		2,064,997
Montclair Apartments - Series A ⁽³⁾	CA		2,428,775		572,671		-		3,001,446
Montecito at Williams Ranch Apartments - Series A ⁽⁶⁾	CA		7,626,287		2,350,276		-		9,976,563
Montevista - Series A ⁽⁶⁾	CA		6,720,000		2,404,771		-		9,124,771
Ocotillo Springs - Series A ⁽⁶⁾	CA		2,023,500		215,633		-		2,239,133
San Vicente - Series A ⁽⁴⁾	CA		3,432,246		809,327		-		4,241,573
Santa Fe Apartments - Series A ⁽³⁾	CA		2,942,370		724,678		-		3,667,048
Seasons at Simi Valley - Series A ⁽⁴⁾	CA		4,236,876		1,180,122		-		5,416,998
Seasons Lakewood - Series A ⁽⁴⁾	CA		7,233,993		1,836,808		-		9,070,801
Seasons San Juan Capistrano - Series A ⁽⁴⁾	CA		12,179,682		2,973,846		-		15,153,528
Summerhill - Series A ⁽⁴⁾	CA		6,316,993		1,470,689		-		7,787,682
Sycamore Walk - Series A ⁽⁴⁾	CA		3,517,919		888,485		-		4,406,404
The Village at Madera - Series A ⁽⁴⁾	CA		3,034,084		735,450		-		3,769,534
Tyler Park Townhomes - Series A ⁽²⁾	CA		5,767,938		939,214		-		6,707,152
Vineyard Gardens - Series A ⁽⁶⁾	CA		3,969,173		1,226,058		-		5,195,231
Westside Village Market - Series A ⁽²⁾	CA		3,769,337		859,860		-		4,629,197
Brookstone ⁽¹⁾	IL		7,374,252		2,201,663		-		9,575,915
Copper Gate Apartments ⁽²⁾	IN		4,955,000		641,581		-		5,596,581
Renaissance - Series A ⁽³⁾	LA		10,870,681		4,293,328		-		15,164,009
Live 929 Apartments ⁽⁶⁾	MD		36,234,756		-		-		36,234,756
Woodlynn Village ⁽¹⁾	MN		4,120,000		56,458		-		4,176,458
Gateway Village⁽⁶⁾	NC		2,600,000		136,612		-		2,736,612
Greens Property - Series A⁽²⁾	NC		7,829,000		663,781		-		8,492,781
Lynnhaven Apartments ⁽⁶⁾	NC		3,450,000		178,960		-		3,628,960
Silver Moon - Series A ⁽³⁾	NM		7,697,891		1,995,694		-		9,693,585
Village at Avalon - Series A ⁽⁵⁾	NM		16,189,074		4,879,623		-		21,068,697
Ohio Properties - Series A ⁽¹⁾	OH		13,724,000		61,243		-		13,785,243
Bridle Ridge ⁽¹⁾	SC		7,235,000		153,657		-		7,388,657
Columbia Gardens ⁽⁴⁾	SC		12,898,904		2,689,886		-		15,588,790
Companion at Thornhill Apartments ⁽⁴⁾	SC		11,055,254		2,208,446		-		13,263,700
Cross Creek ⁽¹⁾	SC		6,136,261		2,277,289		-		8,413,550
Rosewood Townhomes - Series A ⁽⁶⁾	SC		9,259,206		578,247		-		9,837,453
South Pointe Apartments - Series A ⁽⁶⁾	SC		21,551,600		1,345,919		-		22,897,519
The Palms at Premier Park Apartments ⁽²⁾	SC		18,619,081		2,906,879		-		21,525,960
Village at River's Edge ⁽⁴⁾	SC		9,802,479		1,353,745		-		11,156,224
Willow Run ⁽⁴⁾	SC		12,720,560		2,650,995		-		15,371,555
Arbors at Hickory Ridge ⁽²⁾	TN		10,910,733		2,704,295		-		13,615,028
Avistar at Copperfield - Series A ⁽⁶⁾	TX		13,815,817		3,189,896		-		17,005,713
Avistar at the Crest - Series A ⁽²⁾	TX		9,140,656		2,376,580		-		11,517,236
Avistar at the Oaks - Series A ⁽²⁾	TX		7,388,262		1,854,785		-		9,243,047
Avistar at the Parkway - Series A ⁽³⁾	TX		12,721,014		2,790,208		-		15,511,222
Avistar at Wilcrest - Series A ⁽⁶⁾	TX		5,235,915		1,084,347		-		6,320,262
Avistar at Wood Hollow - Series A ⁽⁶⁾	TX		39,756,184		8,703,609		-		48,459,793
Avistar in 09 - Series A ⁽²⁾	TX		6,379,479		1,601,535		-		7,981,014
Avistar on the Boulevard - Series A ⁽²⁾	TX		15,572,093		3,779,139		-		19,351,232
Avistar on the Hills - Series A ⁽²⁾	TX		5,058,171		1,292,513		-		6,350,684
Bruton Apartments ⁽⁴⁾	TX		17,674,167		3,792,253		-		21,466,420
Concord at Gulfgate - Series A ⁽⁴⁾	TX		18,796,773		4,888,537		-		23,685,310
Concord at Little York - Series A ⁽⁴⁾	TX		13,168,029		3,543,909		-		16,711,938
Concord at Williamcrest - Series A ⁽⁴⁾	TX		20,398,687		5,397,326		-		25,796,013
Crossing at 1415 - Series A ⁽⁴⁾	TX		7,331,821		1,810,458		-		9,142,279
Decatur Angle ⁽⁴⁾	TX		22,270,729		5,600,721		-		27,871,450
Esperanza at Palo Alto ⁽⁴⁾	TX		19,218,417		5,955,488		-		25,173,905
Heights at 515 - Series A ⁽⁴⁾	TX		6,712,409		1,600,836		-		8,313,245
Heritage Square - Series A ⁽³⁾	TX		10,579,057		2,095,871		-		12,674,928
Oaks at Georgetown - Series A⁽⁴⁾	TX		12,135,392		2,597,201		-		14,732,593
Runnymede ⁽¹⁾	TX		9,805,000		105,634		-		9,910,634
Southpark ⁽¹⁾	TX		11,462,172		1,917,286		-		13,379,458
15 West Apartments ⁽⁴⁾	WA		9,604,680		3,257,826		-		12,862,506
Mortgage revenue bonds held in trust		$	637,948,068	$	130,520,576	$	-	$	768,468,644

⁽¹⁾	MRBs owned by ATAX TEBS I, LLC (M24 TEBS), Note 16

⁽²⁾	MRBs owned by ATAX TEBS II, LLC (M31 TEBS), Note 16

⁽³⁾	MRBs owned by ATAX TEBS III, LLC (M33 TEBS), Note 16

⁽⁴⁾	^{MRBs owned by ATAX TEBS IV, LLC (M45 TEBS), Note 16}

⁽⁵⁾	MRB held by Morgan Stanley in a debt financing transaction Note 16

⁽⁶⁾	MRB held by Mizuho Capital Markets, LLC in a debt financing transaction, Note 16

	December 31, 2020
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss		Estimated Fair Value
Solano Vista - Series A	CA	$	2,665,000	$	891,612	$	-	$	3,556,612
Greens Property - Series B	NC		925,607		107,347		-		1,032,954
Arby Road Apartments - Series A	NV		7,385,000		15,059		-		7,400,059
Ohio Properties - Series B	OH		3,485,690		13,578		-		3,499,268
Rosewood Townhomes - Series B	SC		469,781		2,549		-		472,330
South Pointe Apartments - Series B	SC		1,099,487		5,967		-		1,105,454
Provision Center 2014-1	TN		6,161,954		-		-		6,161,954
Avistar at the Crest - Series B	TX		735,974		144,746		-		880,720
Avistar at the Oaks - Series B	TX		538,723		100,668		-		639,391
Avistar at the Parkway - Series B	TX		123,973		43,650		-		167,623
Avistar in 09 - Series B	TX		444,398		83,042		-		527,440
Avistar on the Boulevard - Series B	TX		437,318		82,718		-		520,036
Mortgage revenue bonds held by the Partnership		$	24,472,905	$	1,490,936	$	-	$	25,963,841

See Note 23 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 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.

During the three and nine months ended September 30, 2021, the Partnership recognized a provision for credit loss of zero and approximately $900,000, respectively, related to the Provision Center 2014-1 MRB in its condensed consolidated statements of operations. The borrower of the Provision Center 2014-1 MRB filed for Chapter 11 bankruptcy in December 2020 and has ceased making contractual principal and interest payments. The credit loss was driven primarily by operational and collateral information obtained during the bankruptcy process.

During the three months ended September 30, 2020, the Partnership recognized a provision for credit loss of approximately $3.5 million related to the Live 929 Apartments MRB in the condensed consolidated statements of operations. During the nine months ended September 30, 2020, the Partnership recognized a provision for credit loss of approximately $5.3 million related to the Live 929 Apartments MRB and the Provision Center 2014-1 MRB in its condensed consolidated statements of operations. The provision for credit loss related to the Live 929 Apartments MRB was due to operational results, the borrower’s continued covenant forbearance, and a decline in debt service coverage. The change in operating results at the Live 929 Apartments was primarily driven by the impact of COVID-19, which had a significant impact on the student housing industry. The provision for credit loss related to the Provision Center 2014-1 MRB was primarily driven by debt service shortfalls by the underlying commercial property, the borrower’s request for forbearance (prior to filing for bankruptcy protection), and the general creditworthiness of proton therapy centers in the United States, including the impact on them from COVID-19.

MRB Activity in the First Nine Months of 2021

Acquisitions:

The following MRB was acquired at a price that approximated the principal outstanding plus accrued interest during the nine months ended September 30, 2021:

Property Name

Month

Acquired

Property Location

Units

Maturity Date

Interest Rate

Initial Principal Acquired

Jackson Manor Apartments ⁽¹⁾

April

Jackson, MS

5/1/2038

5.00

4,150,000

⁽¹⁾

The Partnership has committed to provide total funding of the MRB up to $6.9 million during the acquisition and rehabilitation phase of the property on a drawdown basis. Upon stabilization of the property, the MRB will be partially repaid and the maximum balance of the MRB after stabilization will not exceed $4.8 million.

Redemptions:

The following MRBs were redeemed at a price that approximated the Partnership’s carrying value plus accrued interest during the nine months ended September 30, 2021:

Property Name	Month Redeemed	Property Location	Units		Original Maturity Date	Interest Rate			Principal Outstanding at Date of Redemption
Arby Road Apartments - Series A ⁽¹⁾	March	Las Vegas, NV		180	10/1/2027		5.35	%	$	1,600,000
Arby Road Apartments - Series A ⁽¹⁾	March	Las Vegas, NV		180	4/1/2041		5.50	%		5,785,000
Rosewood Townhomes - Series A	July	Goose Creek, SC		100	7/1/2055		5.75	%		9,259,206
Rosewood Townhomes - Series B	July	Goose Creek, SC		100	8/1/2055		12.00	%		469,781
South Pointe Apartments - Series A	July	Hanahan, SC		256	7/1/2055		5.75	%		21,551,600
South Pointe Apartments - Series B	July	Hanahan, SC		256	8/1/2055		12.00	%		1,099,487
									$	39,765,074

⁽¹⁾	^{Both MRBs are part of the same series but had different interest rates and maturity dates.}

The Rosewood Townhomes - Series A and South Pointe Apartments - Series A MRBs were redeemed at 106% of par value plus accrued interest in July 2021. The redemption premium of approximately $1.8 million is reported as “Contingent interest income” in the condensed consolidated statement of operations. All other MRBs were redeemed at a price that approximated the Partnership’s carrying value plus accrued interest.

MRB Activity in the First Nine Months of 2020

Acquisitions:

The following MRBs were acquired at prices that approximated the principal outstanding plus accrued interest during the nine months ended September 30, 2020:

Property Name	Month Acquired	Property Location	Units	Maturity Date	Interest Rate				Initial Principal Acquired
Arby Road Apartments - Series A⁽¹⁾	June	Las Vegas, NV	180	10/1/2027		5.35	%		$	1,690,000
Arby Road Apartments - Series A⁽¹⁾	June	Las Vegas, NV	180	4/1/2041		5.50	%			5,785,000
Ocotillo Springs - Series A⁽²⁾	July	Brawley, CA	75	8/1/2037		4.55	%	⁽³⁾		2,023,500
									$	9,498,500

⁽¹⁾	Both MRBs are part of the same series but have different interest rates and maturity dates.

⁽²⁾

The Partnership has committed to provide total funding of the MRB up to $15.0 million during construction and lease-up of the property on a drawdown basis. Upon stabilization of the property, the MRB will be partially repaid and the maximum balance of the MRB after stabilization is approximately $3.5 million.

⁽³⁾	^{The MRB has a variable interest rate equal to 1-month LIBOR plus 3.25%, subject to a floor of 4.55%, during construction of the project until stabilization. After stabilization, the MRB will convert to a fixed interest rate of 4.35%.}

Redemptions:

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, 2020:

Property Name	Month Redeemed	Property Location	Units		Original Maturity Date	Interest Rate			Principal Outstanding at Date of Redemption
Solano Vista - Series B	January	Vallejo, CA	96		1/1/2021		5.85	%	$	3,103,000
Montevista - Series B	August	San Pablo, CA		82	7/1/2021		8.00	%	$	6,480,000
									$	9,583,000

The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and nine months ended September 30, 2021 and 2020:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Balance, beginning of period	$	8,219,000	$	1,823,000		7,319,000		-
Provision for credit loss		-		3,463,000		900,000		5,286,000
Balance, end of period ⁽¹⁾	$	8,219,000	$	5,286,000	$	8,219,000	$	5,286,000

⁽¹⁾	The allowance for credit losses as of September 30, 2021 and 2020 is related to the Provision Center 2014-1 MRB and the Live 929 Apartments MRB.