Other Assets

12 Months Ended

Dec. 31, 2022

12. Other Assets

The following table summarizes the Partnership’s other assets as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
Deferred financing costs, net	$	964,266	$	1,349,097
Derivative instruments at fair value (Note 17)		7,530,438		343,418
Taxable mortgage revenue bonds, at fair value		16,531,896		3,428,443
Taxable governmental issuer loans		8,000,000		1,000,000
Bond purchase commitments, at fair value (Note 18)		98,929		964,404
Operating lease right-of-use assets, net		-		1,619,714
Other assets		2,649,138		2,157,809
Total other assets	$	35,774,667	$	10,862,885

As of December 31, 2021, the operating lease right-of-use assets consisted primarily of a ground lease at The 50/50 MF Property (Note 13). The ground lease was assumed by the buyer upon the sale of The 50/50 MF Property in December 2022 (Note 8) and the Partnership derecognized the operating lease right-of-use asset.

The Partnership has remaining commitments to provide additional funding of the taxable GILs and taxable MRBs during construction and/or rehabilitation of the secured properties as of December 31, 2022. See Note 18 for further information regarding the Partnership’s remaining taxable GIL and taxable MRB funding commitments.

See Note 23 for a description of the methodology and significant assumptions for determining the fair value of the derivative instruments, taxable MRBs and bond purchase commitments. Unrealized gains or losses on derivative instruments are reported as “Interest expense” on the Partnership’s consolidated statements of operations. Unrealized gains or losses on taxable MRBs and bond purchase commitments are recorded on the Partnership’s 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 assets.

As of December 31, 2022, three taxable MRBs with a fair value of $9.0 million were held in trust in connection with TOB trust financings (Note 15).

Activity in 2022

The following table includes details of the taxable MRBs and taxable GILs, that were acquired during the year ended December 31, 2022:

Property Name

Month
Acquired

Property Location

Units

Maturity Date

Interest Rate

Initial Principal Funding

Taxable MRBs

Live 929 Apartments - Series 2022B

January 2022

Baltimore, MD

575

1/1/2029

4.30%

3,625,000

Residency at the Entrepreneur - Series J-T (1)

April 2022

Los Angeles, CA

200

4/1/2025

SOFR + 3.65%

1,000,000

Park at Sondrio - Series 2022B

December 2022

Greenville, SC

271

1/1/2030

6.50%

1,100,000

Park at Vietti - Series 2022B

December 2022

Spartanburg, SC

204

1/1/2030

6.50%

880,000

Residency at Empire - Series BB-T (3)

December 2022

Burbank, CA

148

12/1/2025

7.45%

1,000,000

Subtotal

7,605,000

Taxable GILs

Poppy Grove I (2)

September 2022

Elk Grove, CA

147

4/1/2025

6.78%

1,000,000

Poppy Grove II (2)

September 2022

Elk Grove, CA

82

4/1/2025

6.78%

1,000,000

Poppy Grove III (2)

September 2022

Elk Grove, CA

158

4/1/2025

6.78%

1,000,000

Subtotal

3,000,000

(1)

The Partnership has committed to provide total funding for this taxable MRB of $13.0 million (see Note 18). The borrower has the option to extend the maturity up to six months upon payment of a non-refundable extension fee. The interest rate is subject to an all-in floor of 3.92%.

(2)

The Partnership has committed to provide total funding for the Poppy Grove I, Poppy Grove II, and Poppy Grove III taxable GILs of $21.2 million, $10.9 million, and $24.5 million, respectively (see Note 18). The borrowers have the option to extend the maturities up to six months upon payment of non-refundable extension fees.

(3)

The Partnership has committed to provide total funding for the taxable MRB of $9.4 million (see Note 18). The borrower has the option to extend the maturity up to six months upon payment of a non-refundable extension fee.

Activity in 2021

The following table includes details of the taxable MRB and taxable GIL acquired during the year ended December 31, 2021:


Property Name	Date Committed	Maturity Date	Initial Principal Funding		Total Commitment
Hope on Avalon - taxable GIL	January 2021	2/1/2023 (1)	$	1,000,000	$	10,573,000
Residency at the Mayer Series A-T - taxable MRB	October 2021	4/1/2024 (2)		1,000,000		12,500,000
					$	23,073,000

(1)

The borrower has the option to extend the maturity up to six months upon payment of a non-refundable extension fee.

(2)

The borrower may elect to extend the maturity date six months if stabilization has not occurred, subject to the Partnership's approval.