6. Investments in Mortgage Revenue Bonds (“MRBs”)

MRBs owned by the Partnership have been issued to provide construction and/or permanent financing for Residential Properties and commercial properties. MRBs are either held directly by the Partnership or are held in trusts created in connection with debt financing transactions (Note 15). The Partnership had the following investments in MRBs at June 30, 2017 and December 31, 2016:

	June 30, 2017
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 & B⁽²⁾	CA	$	16,458,000	$	978,912	$	-		$	17,436,912
Glenview Apartments - Series A ⁽⁴⁾	CA		4,648,920		645,678		-			5,294,598
Harmony Court Bakersfield - Series A & B⁽²⁾	CA		5,727,000		318,500		-			6,045,500
Harmony Terrace - Series A & B ⁽²⁾	CA		14,300,000		707,166		-			15,007,166
Harden Ranch - Series A ⁽³⁾	CA		6,879,738		1,105,983		-			7,985,721
Las Palmas II - Series A & B ⁽²⁾	CA		3,465,000		152,592		-			3,617,592
Montclair Apartments - Series A ⁽⁴⁾	CA		2,518,580		405,143		-			2,923,723
San Vicente - Series A & B ⁽²⁾	CA		5,320,000		224,555		-			5,544,555
Santa Fe Apartments - Series A ⁽⁴⁾	CA		3,051,165		531,797		-			3,582,962
Seasons at Simi Valley - Series A⁽²⁾	CA		4,376,000		783,712		-			5,159,712
Seasons Lakewood - Series A & B ⁽²⁾	CA		12,610,000		705,110		-			13,315,110
Seasons San Juan Capistrano - Series A & B⁽²⁾	CA		18,949,000		930,884		-			19,879,884
Summerhill - Series A & B ⁽²⁾	CA		9,795,000		586,729		-			10,381,729
Sycamore Walk - Series A⁽²⁾	CA		3,632,000		417,047		-			4,049,047
The Village at Madera - Series A & B ⁽²⁾	CA		4,804,000		247,275		-			5,051,275
Tyler Park Townhomes - Series A ⁽³⁾	CA		5,995,219		766,254		-			6,761,473
Westside Village Market - Series A ⁽³⁾	CA		3,917,864		610,615		-			4,528,479
Lake Forest ⁽¹⁾	FL		8,573,000		1,526,928		-			10,099,928
Ashley Square ⁽¹⁾	IA		5,009,000		27,602		-			5,036,602
Brookstone ⁽¹⁾	IL		7,457,419		1,876,708		-			9,334,127
Copper Gate Apartments ⁽³⁾	IN		5,145,000		852,946		-			5,997,946
Renaissance - Series A ⁽⁴⁾	LA		11,294,718		1,657,054		-			12,951,772
Live 929 Apartments ⁽²⁾	MD		40,620,378		4,399,339		-			45,019,717
Woodlynn Village ⁽¹⁾	MN		4,289,000		45,956		-			4,334,956
Greens Property - Series A ⁽³⁾	NC		8,168,000		1,284,012		-			9,452,012
Silver Moon - Series A ⁽⁴⁾	NM		7,906,826		868,554		-			8,775,380
Ohio Properties - Series A ⁽¹⁾	OH		14,166,998		1,088,481		-			15,255,479
Bridle Ridge ⁽¹⁾	SC		7,500,000		117,210		-			7,617,210
Columbia Gardens ⁽²⁾	SC		15,209,036		-		(169,635	)		15,039,401
Companion at Thornhill Apartments⁽²⁾	SC		11,457,334		1,136,350		-			12,593,684
Cross Creek ⁽¹⁾	SC		6,130,266		3,081,959		-			9,212,225
The Palms at Premier Park Apartments ⁽³⁾	SC		19,330,703		2,646,046		-			21,976,749
Willow Run ⁽²⁾	SC		15,208,831		121,616		-			15,330,447
Arbors at Hickory Ridge ⁽³⁾	TN		11,402,860		1,369,582		-			12,772,442
Pro Nova 2014-1 ⁽²⁾	TN		10,040,407		238,433		-			10,278,840
Avistar at Chase Hill - Series A ⁽³⁾	TX		9,797,642		414,305		-			10,211,947
Avistar at Copperfield - Series A⁽²⁾	TX		10,000,000		491,288		-			10,491,288
Avistar at the Crest - Series A ⁽³⁾	TX		9,503,712		1,002,121		-			10,505,833
Avistar at the Oaks - Series A ⁽³⁾	TX		7,673,015		864,665		-			8,537,680
Avistar at the Parkway - Series A ⁽⁴⁾	TX		13,290,665		915,151		-			14,205,816
Avistar at Wilcrest - Series A⁽²⁾	TX		3,775,000		201,007		-			3,976,007
Avistar at Wood Hollow - Series A⁽²⁾	TX		31,850,000		1,564,751		-			33,414,751
Avistar in 09 - Series A ⁽³⁾	TX		6,625,352		588,902		-			7,214,254
Avistar on the Boulevard - Series A ⁽³⁾	TX		16,190,599		1,631,593		-			17,822,192
Avistar on the Hills - Series A ⁽³⁾	TX		5,301,268		597,394		-			5,898,662
Bella Vista ⁽¹⁾	TX		6,295,000		31,115		-			6,326,115
Bruton Apartments ⁽²⁾	TX		18,108,276		2,762,491		-			20,870,767
Concord at Gulfgate - Series A ⁽²⁾	TX		19,185,000		2,575,473		-			21,760,473
Concord at Little York - Series A ⁽²⁾	TX		13,440,000		1,871,771		-			15,311,771
Concord at Williamcrest - Series A ⁽²⁾	TX		20,820,000		2,794,962		-			23,614,962
Crossing at 1415 - Series A⁽²⁾	TX		7,590,000		-		(41,745	)		7,548,255
Decatur Angle ⁽²⁾	TX		22,873,696		2,814,627		-			25,688,323
Heights at 515 - Series A⁽²⁾	TX		6,435,000		222,833		-			6,657,833
Heritage Square - Series A ⁽⁴⁾	TX		11,112,914		1,225,235		-			12,338,149
Oaks at Georgetown - Series A & B ⁽²⁾	TX		17,842,000		617,249		-			18,459,249
Runnymede ⁽¹⁾	TX		10,200,000		246,902		-			10,446,902
Southpark ⁽¹⁾	TX		11,790,000		3,398,493		-			15,188,493
Vantage at Harlingen - Series B ⁽⁴⁾	TX		24,426,694		1,972,705		-			26,399,399
Vantage at Judson -Series B ⁽⁴⁾	TX		26,241,102		2,998,352		-			29,239,454
15 West Apartments ⁽²⁾	WA		9,826,657		1,582,220		-			11,408,877
Mortgage revenue bonds held in trust		$	675,550,854	$	65,842,333	$	(211,380	)	$	741,181,807

⁽¹⁾	MRBs owned by ATAX TEBS I, LLC (M24 TEBS), Note 15

⁽²⁾	MRBs held by Deutsche Bank in a secured financing transaction, Note 15

⁽³⁾	MRBs owned by ATAX TEBS II, LLC (M31 TEBS), Note 15

⁽⁴⁾	MRBs owned by ATAX TEBS III, LLC (M33 TEBS), Note 15

	June 30, 2017
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
Seasons at Simi Valley - Series B	CA	$	1,944,000	$	175	$	-		$	1,944,175
Sycamore Walk - Series B	CA		1,815,000		-		(1,908	)		1,813,092
Greens Property - Series B	NC		938,985		219,878		-			1,158,863
Ohio Properties - Series B	OH		3,543,079		214,019		-			3,757,098
Avistar at Chase Hill - Series B	TX		955,299		-		(56,475	)		898,824
Avistar at Copperfield - Series B	TX		4,000,000		24,939		-			4,024,939
Avistar at the Crest - Series B	TX		751,370		45,428		-			796,798
Avistar at the Oaks - Series B	TX		549,549		31,642		-			581,191
Avistar at the Parkway - Series B	TX		124,981		31,136		-			156,117
Avistar at Wilcrest - Series B	TX		1,550,000		9,782		-			1,559,782
Avistar at Wood Hollow - Series B	TX		8,410,000		55,645		-			8,465,645
Avistar in 09 - Series B	TX		453,328		15,415		-			468,743
Avistar on the Boulevard - Series B	TX		446,466		25,241		-			471,707
Crossing at 1415 - Series B	TX		335,000		2,191		-			337,191
Heights at 515 - Series B	TX		510,000		3,686		-			513,686
Mortgage revenue bonds held by the Partnership		$	26,327,057	$	679,177	$	(58,383	)	$	26,947,851

	December 31, 2016
Description of Mortgage Revenue Bonds Held in Trust	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
Glenview Apartments - Series A ⁽⁴⁾	CA	$	4,670,000	$	132,402	$	-		$	4,802,402
Harmony Terrace - Series A & B ⁽²⁾	CA		14,300,000		-		-			14,300,000
Harden Ranch - Series A ⁽³⁾	CA		6,912,535		369,738		-			7,282,273
Montclair Apartments - Series A ⁽⁴⁾	CA		2,530,000		108,608		-			2,638,608
Santa Fe Apartments - Series A ⁽⁴⁾	CA		3,065,000		177,093		-			3,242,093
Seasons at Simi Valley - Series A⁽²⁾	CA		4,376,000		308,335		-			4,684,335
Sycamore Walk - Series A⁽²⁾	CA		3,632,000		130,431		-			3,762,431
Tyler Park Townhomes - Series A ⁽³⁾	CA		6,024,120		237,582		-			6,261,702
Westside Village Market - Series A ⁽³⁾	CA		3,936,750		102,641		-			4,039,391
Lake Forest ⁽¹⁾	FL		8,639,000		899,694		-			9,538,694
Ashley Square ⁽¹⁾	IA		5,039,000		338,556		-			5,377,556
Brookstone ⁽¹⁾	IL		7,462,678		1,457,340		-			8,920,018
Copper Gate Apartments ⁽³⁾	IN		5,145,000		528,855		-			5,673,855
Renaissance - Series A ⁽⁴⁾	LA		11,348,364		826,369		-			12,174,733
Live 929 Apartments ⁽²⁾	MD		40,687,425		3,587,993		-			44,275,418
Woodlynn Village ⁽¹⁾	MN		4,310,000		294,976		-			4,604,976
Greens Property - Series A ⁽³⁾	NC		8,210,000		844,585		-			9,054,585
Silver Moon - Series A ⁽⁴⁾	NM		7,933,259		465,382		-			8,398,641
Ohio Properties - Series A ⁽¹⁾	OH		14,215,000		2,327,468		-			16,542,468
Bridle Ridge ⁽¹⁾	SC		7,535,000		517,881		-			8,052,881
Columbia Gardens ⁽²⁾	SC		15,214,223		-		(927,030	)		14,287,193
Companion at Thornhill Apartments⁽²⁾	SC		11,500,000		645,552		-			12,145,552
Cross Creek ⁽¹⁾	SC		6,122,312		2,655,730		-			8,778,042
The Palms at Premier Park Apartments ⁽³⁾	SC		19,826,716		1,784,386		-			21,611,102
Willow Run ⁽²⁾	SC		15,214,085		-		(917,852	)		14,296,233
Arbors at Hickory Ridge ⁽³⁾	TN		11,461,719		891,274		-			12,352,993
Pro Nova 2014-1 ⁽²⁾	TN		10,041,924		685,576		-			10,727,500
Avistar at Chase Hill - Series A ⁽³⁾	TX		9,844,994		589,023		-			10,434,017
Avistar at the Crest - Series A ⁽³⁾	TX		9,549,644		753,267		-			10,302,911
Avistar at the Oaks - Series A ⁽³⁾	TX		7,709,040		563,138		-			8,272,178
Avistar at the Parkway - Series A ⁽⁴⁾	TX		13,300,000		-		(78,749	)		13,221,251
Avistar in 09 - Series A ⁽³⁾	TX		6,656,458		359,562		-			7,016,020
Avistar on the Boulevard - Series A ⁽³⁾	TX		16,268,850		1,283,272		-			17,552,122
Avistar on the Hills - Series A ⁽³⁾	TX		5,326,157		423,496		-			5,749,653
Bella Vista ⁽¹⁾	TX		6,365,000		500,162		-			6,865,162
Bruton Apartments ⁽²⁾	TX		18,145,000		349,886		-			18,494,886
Concord at Gulfgate - Series A ⁽²⁾	TX		19,185,000		1,200,246		-			20,385,246
Concord at Little York - Series A ⁽²⁾	TX		13,440,000		1,044,752		-			14,484,752
Concord at Williamcrest - Series A ⁽²⁾	TX		20,820,000		1,302,534		-			22,122,534
Crossing at 1415 - Series A⁽²⁾	TX		7,590,000		-		(45,555	)		7,544,445
Decatur Angle ⁽²⁾	TX		22,950,214		-		(290,985	)		22,659,229
Heights at 515 - Series A⁽²⁾	TX		6,435,000		-		(38,623	)		6,396,377
Heritage Square - Series A ⁽⁴⁾	TX		11,161,330		905,455		-			12,066,785
Oaks at Georgetown - Series A & B ⁽²⁾	TX		17,842,000		-		-			17,842,000
Runnymede ⁽¹⁾	TX		10,250,000		774,285		-			11,024,285
Southpark ⁽¹⁾	TX		11,751,861		3,286,203		-			15,038,064
Vantage at Harlingen - Series B ⁽⁴⁾	TX		24,529,580		917,720		-			25,447,300
Vantage at Judson -Series B ⁽⁴⁾	TX		26,356,498		1,658,508		-			28,015,006
15 West Apartments ⁽²⁾	WA		9,850,000		1,584,281		-			11,434,281
Mortgage revenue bonds held in trust		$	554,678,736	$	37,814,237	$	(2,298,794	)	$	590,194,179

⁽¹⁾	MRBs owned by ATAX TEBS I, LLC (M24 TEBS), Note 15

⁽²⁾	MRBs held by Deutsche Bank in a secured financing transaction, Note 15

⁽³⁾	MRBs owned by ATAX TEBS II, LLC (M31 TEBS), Note 15

⁽⁴⁾	MRBs owned by ATAX TEBS III, LLC (M33 TEBS), Note 15

	December 31, 2016
Description of Mortgage Revenue Bonds held by the Partnership	State	Cost Adjusted for Paydowns		Cumulative Unrealized Gain		Cumulative Unrealized Loss			Estimated Fair Value
Courtyard - Series A & B	CA	$	16,458,000	$	-	$	-		$	16,458,000
Harmony Court Bakersfield - Series A & B	CA		5,727,000		29,252		-			5,756,252
Las Palmas II - Series A & B	CA		3,465,000		15,139		-			3,480,139
San Vicente - Series A & B	CA		5,320,000		-		(30,019	)		5,289,981
Seasons at Simi Valley - Series B	CA		1,944,000		27,727		-			1,971,727
Seasons Lakewood - Series A & B	CA		12,610,000		-		-			12,610,000
Seasons San Juan Capistrano - Series A & B	CA		18,949,000		-		-			18,949,000
Summerhill - Series A & B	CA		9,795,000		-		(174,982	)		9,620,018
Sycamore Walk - Series B	CA		1,815,000		-		(64,432	)		1,750,568
The Village at Madera - Series A & B	CA		4,804,000		-		(84,437	)		4,719,563
Greens Property - Series B	NC		940,479		118,216		-			1,058,695
Ohio Properties - Series B	OH		3,549,780		449,068		-			3,998,848
Avistar at Chase Hill - Series B	TX		957,627		41,820		-			999,447
Avistar at the Crest - Series B	TX		753,201		64,228		-			817,429
Avistar at the Oaks - Series B	TX		550,836		47,231		-			598,067
Avistar at the Parkway - Series B	TX		125,000		-		(3,341	)		121,659
Avistar in 09 - Series B	TX		454,390		38,961		-			493,351
Avistar on the Boulevard - Series B	TX		447,554		38,165		-			485,719
Crossing at 1415 - Series B	TX		335,000		-		(2,614	)		332,386
Heights at 515 - Series B	TX		510,000		-		(3,977	)		506,023
Mortgage revenue bonds held by the Partnership		$	89,510,867	$	869,807	$	(363,802	)	$	90,016,872

See Note 22 for a description of the methodology and significant assumptions for determining the fair value of the MRBs. Unrealized gains or losses on the MRBs are recorded in the condensed consolidated statements of comprehensive income (loss) 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.

Bond Activity in the First Six Months of 2017

The following table includes the details of the MRB acquisitions during the six months ended June 30, 2017:

Property Name	Month Acquired	Property Location	Units		Maturity Date	Base Interest Rate			Principal Outstanding at Date of Acquisition
Avistar at Copperfield - Series A	February	Houston, TX		192	5/1/2054		5.75	%	$	10,000,000
Avistar at Copperfield - Series B	February	Houston, TX		192	6/1/2054		12.00	%		4,000,000
Avistar at Wilcrest - Series A	February	Houston, TX		88	5/1/2054		5.75	%		3,775,000
Avistar at Wilcrest - Series B	February	Houston, TX		88	6/1/2054		12.00	%		1,550,000
Avistar at Wood Hollow - Series A	February	Austin, TX		409	5/1/2054		5.75	%		31,850,000
Avistar at Wood Hollow - Series B	February	Austin, TX		409	6/1/2054		12.00	%		8,410,000
									$	59,585,000

Bond Activity in the First Six Months of 2016

In March 2016, the Partnership sold the Pro Nova 2014-2 bond for approximately $9.5 million, which approximated the MRB’s carrying value plus accrued interest. The Partnership used approximately $8.4 million of the proceeds from the sale to pay in full and collapse the TOB Trust securitizing this MRB (Note 15). The following table includes details of the MRB redeemed:

Property Name

Month

Exchanged

Property Location

Units

Maturity Date

Base Interest Rate

Principal

Outstanding at Date of Exchange

Pro Nova - 2014B ¹

March

Knoxville, TN

5/1/2025

5.25

9,295,000

¹	This is a commercial property. Accordingly, unit information is not applicable.

In May 2016, the Partnership redeemed the four Series B mortgage revenue bonds for approximately $5.2 million which approximated their carrying value plus accrued interest. The following table includes details of the MRBs redeemed:

Property Name	Month Redeemed	Property Location	Units		Original Maturity Date	Base Interest Rate			Principal Outstanding at Date of Redemption
Glenview Apartments - Series B	May	Cameron, CA		88	12/1/2016		8.00	%	$	2,053,000
Montclair Apartments - Series B	May	Lemoore, CA		80	12/1/2016		8.00	%		928,000
Santa Fe Apartments - Series B	May	Hesperia, CA		89	12/1/2016		8.00	%		1,671,000
Heritage Square - Series B	May	Edinburg, TX		204	10/1/2051		12.00	%		520,000

The following table includes the details of the MRB acquisitions during the six months ended June 30, 2016:

Property Name

Month

Acquired

Property Location

Units

Maturity Date

Base Interest Rate

Principal

Outstanding at Date

of Acquisition

Companion at Thornhill Apartments

January

Lexington, SC

178

1/1/2052

5.80

11,500,000