15. Debt Financing

The following represents the Debt Financing, net of deferred financing costs, at September 30, 2017 and December 31, 2016:

	Outstanding Debt Financings on September 30, 2017, net		Restricted Cash		Year Acquired	Stated Maturities	Reset Frequency	SIFMA Based Rates		Facility Fees		Period End Rates
TOB & Term A/B Trusts Securitization
Fixed - Term TOB	$	46,800,842	$	-	2014	July 2019 - October 2019	N/A	N/A		N/A		4.01% - 4.39%
Fixed - Term A/B		141,119,616		-	2016	September 2026 - December 2026	N/A	N/A		N/A			3.64%
Fixed - Term A/B		38,412,589		-	2017	February 2027	N/A	N/A		N/A			4.46%
Fixed - Term A/B		60,417,436		-	2017	February 2022 - March 2022	N/A	N/A		N/A			3.89%
Fixed - Term A/B		33,559,866		-	2017	June 2018 - August 2018	N/A	N/A		N/A			3.76%
Variable - TOB		41,295,000		1,217,256	2012	May 2018	Weekly	1.47 - 1.52%		1.67%		3.14 - 3.19%

TEBS Financings
Variable - TEBS I		60,249,000		9,687	2010	September 2020	Weekly		1.01%		1.85%		2.86%
Variable - TEBS II ⁽¹⁾		90,944,774		176,685	2014	July 2019	Weekly		0.98%		1.49%		2.47%
Variable - TEBS III ⁽¹⁾		81,836,696		57,364	2015	July 2020	Weekly		0.98%		1.26%		2.24%
Total Debt Financings	$	594,635,819

⁽¹⁾	Facility fees are variable

	Outstanding Debt Financings on December 31, 2016, net		Restricted Cash		Year Acquired	Stated Maturities	Reset Frequency	SIFMA Based Rates		Facility Fees		Period End Rates
TOB & Term A/B Trusts Securitization
Fixed - Term TOB	$	46,860,699	$	-	2014	July 2017 - July 2019	N/A	N/A		N/A		4.01% - 4.39%
Fixed - Term A/B		141,266,034		1,373,695	2016	September 2026 - December 2026	N/A	N/A		N/A			3.64%
Fixed - Term A/B		30,512,916		-	2016	March 2017	N/A	N/A		N/A			4.56%
Variable - TOB		42,455,000		-	2012	Dec 2016	Weekly	1.29 - 1.39%			1.62%	2.91 - 3.01%

TEBS Financings
Variable - TEBS I		60,430,991		396,412	2010	September 2017	Weekly		0.77%		1.85%		2.62%
Variable - TEBS II ⁽¹⁾		91,768,081		170,988	2014	July 2019	Weekly		0.75%		1.62%		2.37%
Variable - TEBS III ⁽¹⁾		82,089,312		3,495,592	2015	July 2020	Weekly		0.75%		1.39%		2.14%
Total Debt Financings	$	495,383,033

⁽¹⁾	Facility fees are variable

At September 30, 2017 and December 31, 2016, the Partnership posted cash collateral (i.e. restricted cash) related to the interest rate swaps associated with specific Debt Financings. The Partnership has also posted cash collateral as contractually required under the terms of the three TEBS Financings. In addition, to mitigate its exposure to interest rate fluctuations on the variable rate TEBS Financings, the Partnership also entered into interest rate cap agreements (Note 17).

The TOB and Term A/B Trusts are subject to a Master Trust Agreement with DB that contains covenants with which the Partnership is required to comply. If the Partnership were to be out of compliance with any of these covenants, a termination event of the financing facilities would be triggered. The most restrictive covenant within the Master Trust Agreement states that cash available to distribute for the trailing twelve months must be at least two times trailing twelve-month interest expense. At September 30, 2017, the Partnership was in compliance with these covenants.

Debt Financing Activity in the First Nine Months of 2017

In February 2017, the Partnership entered into 19 new Term A/B Trust financings secured by various MRBs. The Partnership capitalized costs totaling approximately $1.2 million as deferred financing costs, of which approximately $921,000 were paid to a related party (Note 21). The following table summarizes the terms of the new Term A/B Trusts:

Term A/B Trusts Securitization	Outstanding Term A/B Trust Financing at September 30, 2017, net		Year Acquired	Stated Maturity	Fixed Interest Rate
San Vicente - Series A	$	3,110,905	2017	February 2022		3.89	%
San Vicente - Series B		1,541,427	2017	June 2018		3.76	%
Las Palmas - Series A		1,506,127	2017	February 2022		3.89	%
Las Palmas - Series B		1,489,594	2017	June 2018		3.76	%
The Village at Madera - Series A		2,744,485	2017	February 2022		3.89	%
The Village at Madera - Series B		1,451,410	2017	July 2018		3.76	%
Harmony Court Bakersfield - Series A		3,320,042	2017	February 2022		3.89	%
Harmony Court Bakersfield - Series B	⁽¹⁾		2017	July 2018		3.76	%
Summerhill - Series A		5,727,118	2017	February 2022		3.89	%
Summerhill - Series B		2,849,542	2017	July 2018		3.76	%
Courtyard - Series A		9,127,523	2017	February 2022		3.89	%
Courtyard - Series B		5,261,967	2017	July 2018		3.76	%
Seasons Lakewood - Series A		6,552,326	2017	February 2022		3.89	%
Seasons Lakewood - Series B		4,444,519	2017	August 2018		3.76	%
Seasons San Juan Capistrano - Series A		11,042,713	2017	February 2022		3.89	%
Seasons San Juan Capistrano - Series B		5,554,598	2017	August 2018		3.76	%
Avistar at Wood Hollow - Series A		26,832,573	2017	February 2027		4.46	%
Avistar at Wilcrest - Series A		3,167,131	2017	February 2027		4.46	%
Avistar at Copperfield - Series A		8,412,885	2017	February 2027		4.46	%
Total Term A/B Trust Financing	$	104,136,885

⁽¹⁾	In August 2017, the Term A/B Trust financing for the Harmony Court Bakersfield – Series B MRB was collapsed and paid off in full. The Partnership paid approximately $1.7 million at settlement, which approximated the outstanding principal plus accrued interest.

In March 2017, the Partnership refinanced four Term A/B Trusts into new Term A/B Trusts with longer stated terms. Based on the terms of the new and old Term A/B Trusts, the refinancing was accounted for as a modification, with approximately $47,000 capitalized as deferred financing costs. The following table summarizes the terms of the new Term A/B Trusts:

Term A/B Trusts Securitization	Outstanding Term A/B Trust Financing at September 30, 2017, net		Year Acquired	Stated Maturity	Fixed Interest Rate
Oaks at Georgetown - Series A	$	11,086,792	2017	March 2022		3.89	%
Oaks at Georgetown - Series B		4,684,648	2017	August 2018		3.76	%
Harmony Terrace - Series A		6,199,405	2017	March 2022		3.89	%
Harmony Terrace - Series B		6,282,161	2017	August 2018		3.76	%
Total Term A/B Trust Financing	$	28,253,006

In June 2017, the maturity date of the Partnership’s variable TOB Trusts was extended until May 2018.

In September 2017, ATAX TEBS I, LLC, a wholly-owned subsidiary of the Partnership, exercised its option to extend the maturity date of the M24 TEBS Financing to September 15, 2020.

Debt Financing Activity in the First Nine Months of 2016

The three MBS TOB Trusts and the TOB Trust collateralized by the Pro Nova 2014-2 MRB were paid in full and collapsed in January 2016 and March 2016, respectively.

During the third quarter of 2016, the Partnership paid off and collapsed seven of its nine TOB Trusts, simultaneously executing twelve new Term A/B Trust agreements secured by mortgage revenue bonds. Based on the terms of the Term A/B Trust, the restructuring of the debt was accounted for as a modification, with approximately $1.4 million capitalized as deferred financing costs. Approximately $1.2 million of capitalized costs were paid to a related party (Note 21).

Future Maturities

The following represents the Debt Financing contractual maturities for the next five years and thereafter:

2017	$	3,906,966
2018		79,029,695
2019		140,731,413
2020		141,337,095
2021		2,291,329
Thereafter		231,978,541
Total	$	599,275,039

13. Unsecured Lines of Credit

The following represents the unsecured lines of credit (“LOC”) at September 30, 2017 and December 31, 2016:

Unsecured Lines of Credit	Outstanding on September 30, 2017		Total Commitment		Maturity	Variable / Fixed	Reset Frequency	Period End Rate
Bankers Trust	$	12,471,000	$	50,000,000	May 2019	Variable ⁽¹⁾	Monthly		4.23	%
Bankers Trust operating		-		10,000,000	May 2019	Variable ⁽¹⁾	Monthly		4.48	%
Total unsecured lines of credit	$	12,471,000	$	60,000,000

¹	The variable rate is indexed to LIBOR plus an applicable margin.

Unsecured Lines of Credit	Outstanding on December 31, 2016		Total Commitment		Maturity	Variable / Fixed	Reset Frequency	Period End Rate
Bankers Trust	$	40,000,000	$	40,000,000	May 2018	Variable ⁽²⁾	Monthly		3.13	%
Bankers Trust operating		-		7,500,000	May 2018	Variable ⁽²⁾	Monthly		3.88	%
Total unsecured lines of credit	$	40,000,000	$	47,500,000

²	The variable rate is indexed to LIBOR plus an applicable margin.

In April 2017, the commitment on the non-operating LOC was increased $10 million to a total commitment of $50 million.

In May 2017, the maturity date on both Bankers Trust LOCs was extended for an additional one-year term. Additionally, the commitment on the operating LOC was increased to $10 million, from $7.5 million previously.

The Partnership drew approximately $12.5 million on the Bankers Trust operating LOC in September 2017 to purchase the Montecito at Williams Ranch Apartments Series A and B MRBs. This draw has an initial maturity date in June 2018, but may be extended up to an additional 270 days, based on certain extension terms defined in the credit agreement.

The Partnership is required to make prepayments of the principal to reduce the Bankers Trust Operating LOC to zero for fifteen consecutive calendar days during each calendar quarter. For all periods presented the Partnership has fulfilled its prepayment obligation. In addition, the Partnership has fulfilled its fourth quarter of 2017 prepayment obligation as it maintained a zero balance in the Operating LOC for the first fifteen days of October 2017. The Partnership is in compliance with all covenants at September 30, 2017.