Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segments

24. Segments

The Partnership has four reportable segments - Mortgage Revenue Bond Investments, Other Investments, MF Properties and Public Housing Capital Fund Trusts. Only the Mortgage Revenue Bond Investments, Other Investments, and MF Properties segments had activity for the three months and nine months ended September 30, 2021. All activity in the Public Housing Capital Fund Trusts 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 primarily invests in mortgage investments as defined in the Partnership Agreement, which consistent of MRBs, taxable MRBs, GILs, taxable GILs and related property loans. The Partnership Agreement authorizes the Partnership to make investments in tax-exempt securities other than mortgage investments 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, taxable MRBs, GILs, taxable 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 in the condensed consolidated balance sheets.  As of September 30, 2021, the Partnership reported 72 MRBs and nine GILs. As of September 30, 2021, the Residential Properties financed by MRBs and GILs contain a total of 10,654 and 1,832 rental units, respectively. In addition, one MRB (Provision Center 2014-1) is collateralized by commercial real estate. All “General and administrative expenses” in the 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). The Other Investments segment also includes the consolidated VIE of Vantage at Hutto (Note 5).

MF Properties Segment

The MF Properties segment consists primarily 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 excess cash flow will be available for distribution to the Partnership. As of September 30, 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 had no activity after January 2020.

The following table details certain financial information for the Partnership’s reportable segments 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
Total revenues
Mortgage Revenue Bond Investments	$	12,795,214		$	10,763,544		$	34,624,484		$	31,216,575
Other Investments		3,074,909			1,527,472			8,556,926			5,305,324
MF Properties		1,811,778			1,548,931			5,294,475			5,358,132
Public Housing Capital Fund Trusts		-			-			-			174,470
Total revenues	$	17,681,901		$	13,839,947		$	48,475,885		$	42,054,501
Interest expense
Mortgage Revenue Bond Investments	$	5,186,465		$	4,813,114		$	15,166,356		$	14,908,641
Other Investments		193,876			-			234,375			-
MF Properties		283,111			292,318			847,292			906,082
Public Housing Capital Fund Trusts		-			-			-			197,993
Total interest expense	$	5,663,452		$	5,105,432		$	16,248,023		$	16,012,716
Depreciation expense
Mortgage Revenue Bond Investments	$	5,912		$	4,688		$	17,534		$	10,471
Other Investments		-			-			-			-
MF Properties		675,013			715,095			2,031,735			2,130,831
Public Housing Capital Fund Trusts		-			-			-			-
Total depreciation expense	$	680,925		$	719,783		$	2,049,269		$	2,141,302
Net income (loss)
Mortgage Revenue Bond Investments	$	3,453,537		$	(1,852,974	)	$	7,293,774		$	888,856
Other Investments		9,836,133			1,527,605			23,546,743			5,303,194
MF Properties		(301,286	)		(834,648	)		(594,599	)		(1,172,961	)
Public Housing Capital Fund Trusts		-			-			-			1,390,999
Net income (loss)	$	12,988,384		$	(1,160,017	)	$	30,245,918		$	6,410,088

The following table details total assets for the Partnership’s reportable segments as of September 30, 2021 and December 31, 2020:

	September 30, 2021			December 31, 2020
Total assets
Mortgage Revenue Bond Investments	$	1,223,689,462		$	1,114,146,614
Other Investments		92,248,043			106,931,182
MF Properties		67,379,270			67,988,190
Public Housing Capital Fund Trusts		-			-
Consolidation/eliminations		(98,815,256	)		(113,818,107	)
Total assets	$	1,284,501,519		$	1,175,247,879