Other Assets

9 Months Ended

Sep. 30, 2024

Other Assets [Abstract]

Other Assets

9. Other Assets

The following table summarizes the Partnership’s other assets as of September 30, 2024 and December 31, 2023:

	September 30, 2024			December 31, 2023
Deferred financing costs, net	$	1,367,181		$	850,726
Derivative instruments at fair value (Note 15)		2,704,180			5,254,663
Taxable mortgage revenue bonds, at fair value		19,858,516			21,460,288
Taxable governmental issuer loans:
Taxable governmental issuer loans		3,157,672			13,573,000
Allowance for credit losses (Note 10)		(28,000	)		(77,000	)
Taxable governmental issuer loans, net		3,129,672			13,496,000
Bond purchase commitment, at fair value (Note 16)		-			197,788
Other assets		1,441,316			1,935,005
Total other assets	$	28,500,865		$	43,194,470

The Partnership has remaining commitments to provide additional funding of the taxable MRBs and taxable GILs during construction and/or rehabilitation of the secured properties as of September 30, 2024. See Note 16 for further information regarding the Partnership’s remaining taxable GIL and taxable MRB funding commitments.

See Note 10 for information regarding the Partnership’s allowance for credit losses related to its taxable GILs.

See Note 20 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 “Net result from derivative transactions” in the Partnership’s condensed consolidated statements of operations. Unrealized gains and 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 September 30, 2024, nine taxable MRBs and three taxable GILs with a reported value totaling $22.7 million were held in trust in connection with TOB trust financings (Note 13).

Activity in the First Nine Months of 2024

The following table includes details of the taxable MRB acquired during the nine months ended September 30, 2024:

Property Name	Month Acquired	Property Location	Units	Maturity Date	Interest Rate	Initial Principal Funding
Woodington Gardens Apartments - Series A-2	April 2024	Baltimore, MD	197	5/1/2029	7.80%	$	2,577,000

The following taxable MRB and taxable GIL principal payments were received during the nine months ended September 30, 2024:

Property Name	Month Redeemed	Property Location	Units	Original Maturity Date	Interest Rate		Principal Redeemed
Taxable MRBs
Residency at the Mayer Series A-T (1)	March 2024	Hollywood, CA	79	10/1/2024	SOFR + 3.70%	(2)	$	11,500,000
Residency at the Mayer Series A-T	September 2024	Hollywood, CA	79	10/1/2024	SOFR + 3.70%	(2)		1,000,000
Subtotal							$	12,500,000
Taxable GILs
Hope on Avalon	January 2024	Los Angeles, CA	88	2/1/2024	SOFR + 3.55%		$	10,573,000
Total							$	23,073,000

(1)The borrower re-allocated $11.5 million of previously provided funding from a taxable MRB to a new MRB during the acquisition and rehabilitation phase of the property.

(2)The interest rate is subject to an all-in floor of 3.95%.

Activity in the First Nine Months of 2023

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

Property Name	Date Committed	Maturity Date	Initial Principal Funding		Total Commitment
Windsor Shores Apartments - Series B	January 2023	2/1/2030	$	805,000	$	805,000
Village at Hanford Square - Series H-T	May 2023	5/1/2030		1,000,000		10,400,000
40rty on Colony - Series P-T	June 2023	6/1/2030		1,100,000		5,950,000
Subtotal					$	17,155,000

In July 2023, the Ocotillo Springs property achieved stabilization and the borrower converted to permanent financing. The Ocotillo Springs - Series A-T taxable MRB with outstanding principal of $7.0 million was redeemed in full.

In July 2023, the Partnership recognized a fee of approximately $32,000 in other income in connection with an extension of the maturity date of the Hope on Avalon taxable GIL to February 1, 2024.