Other Assets

6 Months Ended

Jun. 30, 2023

12. Other Assets

The following table summarizes the Partnership's other assets as of June 30, 2023 and December 31, 2022:


	June 30, 2023			December 31, 2022
Deferred financing costs, net	$	705,033		$	964,266
Derivative instruments at fair value (Note 18)		10,099,320			7,530,438
Taxable mortgage revenue bonds, at fair value		22,297,418			16,531,896
Taxable governmental issuer loans:
Taxable governmental issuer loans		13,573,000			8,000,000
Allowance for credit losses (Note 13)		(95,000	)		-
Taxable governmental issuer loans, net		13,478,000			8,000,000
Bond purchase commitments, at fair value (Note 19)		138,100			98,929
Other assets		1,740,348			2,649,138
Total other assets	$	48,458,219		$	35,774,667

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 June 30, 2023. See Note 19 for further information regarding the Partnership’s remaining taxable GIL and taxable MRB funding commitments.

On January 1, 2023, the Partnership adopted ASU 2016-13 which replaced the incurred loss methodology with an expected loss model known as the CECL model. See Note 13 for information regarding the Partnership’s allowance for credit losses related to its taxable GILs.

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

As of June 30, 2023, two taxable MRBs and four taxable GILs with a reported value totaling $25.1 million were held in trust in connection with TOB trust financings (Note 16).

Activity in the First Six Months of 2023

The following table includes details of the taxable MRBs acquired during the six months ended June 30, 2023:

Property Name

Month
Acquired

Property Location

Units

Maturity Date

Interest Rate

Initial Principal Funding

Windsor Shores Apartments - Series B

January 2023

Columbia, SC

176

2/1/2030

6.50%

805,000

Village at Hanford Square - Series H-T (1)

May 2023

Hanford, CA

100

5/1/2030

7.25%

1,000,000

40rty on Colony - Series P-T (2)

June 2023

La Mesa, CA

40

6/1/2030

7.45%

1,000,000

Subtotal

2,805,000

(1)

The Partnership has committed to provide total funding for the taxable MRB of $10.4 million (see Note 19).

(2)

The Partnership has committed to provide total funding for the taxable MRB of $6.0 million (see Note 19).

Activity in the First Six Months of 2022

The following table includes details of the taxable MRBs acquired during the six months ended June 30, 2022:


Property Name	Date Committed	Maturity Date	Initial Principal Funding		Total Commitment
Live 929 Apartments - Series 2022B	January 2022	1/1/2029	$	3,625,000	$	3,625,000
Residency at the Entrepreneur - Series J-T (1)	April 2022	4/1/2025	$	1,000,000	$	13,000,000
Subtotal					$	16,625,000

(1)

The Partnership has committed to provide total funding for this MRB of $13.0 million (see Note 19). 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%.