Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Assets and liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized as follows:

	Fair Value Measurements at December 31, 2017
Description	Assets and Liabilities at Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets and Liabilities
Mortgage revenue bonds, held in trust	$	710,867,447		$	-	$	-	$	710,867,447
Mortgage revenue bonds		77,971,208			-		-		77,971,208
Bond purchase commitments (reported within other assets)		3,002,540			-		-		3,002,540
PHC Certificates		49,641,588			-		-		49,641,588
Taxable mortgage revenue bonds (reported within other assets)		2,422,459			-		-		2,422,459
Derivative contracts (reported within other assets)		597,221			-		-		597,221
Derivative swap liability		(826,852	)		-		-		(826,852	)
Total Assets and Liabilities at Fair Value, net	$	843,675,611		$	-	$	-	$	843,675,611

Assets and liabilities measured at fair value on a recurring basis at December 31, 2016 are summarized as follows:

	Fair Value Measurements at December 31, 2016
Description	Assets and Liabilities at Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets and Liabilities
Mortgage revenue bonds held in trust	$	590,194,179		$	-	$	-	$	590,194,179
Mortgage revenue bonds		90,016,872			-		-		90,016,872
Bond purchase commitments (reported within other assets)		2,399,449			-		-		2,399,449
PHC Certificates		57,158,068			-		-		57,158,068
Taxable mortgage revenue bonds (reported within other assets)		4,084,599			-		-		4,084,599
Derivative contracts (reported within other assets)		383,604			-		-		383,604
Interest swap liability		(1,339,283	)		-		-		(1,339,283	)
Total Assets and Liabilities at Fair Value	$	742,897,488		$	-	$	-	$	742,897,488

The following tables summarizes the activity related to Level 3 assets and liabilities for the year ended December 31, 2017:

	For the Years Ended December 31, 2017
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds ⁽¹⁾			Bond Purchase Commitments		PHC Certificates			Taxable Mortgage Revenue Bonds			Interest Rate Derivatives ⁽²⁾			Total
Beginning Balance January 1, 2017	$	680,211,051		$	2,399,449	$	57,158,068		$	4,084,599		$	(955,679	)	$	742,897,488
Total gains (losses) (realized/unrealized)
Included in earnings (interest income and interest expense)		212,712			-		(654,290	)		-			(240,091	)		(681,669	)
Included in other comprehensive (loss) income		37,104,392			603,091		(882,452	)		(96,685	)		-			36,728,346
Purchases		121,347,000			-		-			-			556,017			121,903,017
Settlements		(50,036,500	)		-		(5,979,738	)		(1,565,455	)		410,122			(57,171,571	)
Ending Balance December 31, 2017	$	788,838,655		$	3,002,540	$	49,641,588		$	2,422,459		$	(229,631	)	$	843,675,611
Total amount of losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets or liabilities held on December 31, 2017	$	-		$	-	$	(761,960	)	$	-		$	(240,091	)	$	(1,002,051	)

(1) Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

(2) Interest rate derivatives include derivative contracts reported in other assets as well as derivative swap liabilities.

The following tables summarizes the activity related to Level 3 assets and liabilities for the year ended December 31, 2016:

	For Twelve Months Ended December 31, 2016
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds ⁽¹⁾			Bond Purchase Commitments			PHC Certificates			Taxable Mortgage Revenue Bonds			Interest Rate Derivatives ⁽²⁾			Total
Beginning Balance January 1, 2016	$	583,683,137		$	5,634,360		$	60,707,290		$	4,824,060		$	(972,898	)	$	653,875,949
Total gains (losses) (realized/unrealized)
Included in earnings (interest expense)		175,769			-			(54,605	)		-			17,618			138,782
Included in other comprehensive (loss) income		(17,342,217	)		(3,234,911	)		(1,480,497	)		(188,299	)		-			(22,245,924	)
Purchases		130,620,000			-			-			-			-			130,620,000
Sale of securities		(9,295,000	)		-			-			-			(399	)		(9,295,399	)
Settlements		(7,630,638	)		-			(2,014,120	)		(551,162	)		-			(10,195,920	)
Ending Balance December 31, 2016	$	680,211,051		$	2,399,449		$	57,158,068		$	4,084,599		$	(955,679	)	$	742,897,488
Total amount of losses for the period included in earnings attributable to the change in unrealized losses relating to assets or liabilities held on December 31, 2016	$	-		$	-		$	-		$	-		$	17,618		$	17,618

(1) Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

(2) Interest rate derivatives include derivative contracts reported in other assets as well as derivative swap liabilities.

The following tables summarizes the activity related to Level 3 assets and liabilities for the year ended December 31, 2015:

	For Twelve Months Ended December 31, 2015
	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Mortgage Revenue Bonds ⁽¹⁾			Bond Purchase Commitments			PHC Certificates			Taxable Mortgage Revenue Bonds			Interest Rate Derivatives ⁽²⁾			Total
Beginning Balance January 1, 2015	$	449,024,137		$	5,780,413		$	61,263,123		$	4,616,565		$	267,669		$	520,951,907
Total gains (losses) (realized/unrealized)
Included in earnings (interest expense)		-			-			-			-			(1,802,655	)		(1,802,655	)
Included in other comprehensive (loss) income		9,370,264			(146,053	)		462,297			(138,682	)		-			9,547,826
Purchases		188,572,000			-			-			-			-			188,572,000
Mortgage revenue bond exchanged for MF Property		(41,580,919	)		-			-			-			-			(41,580,919	)
Purchase interest rate derivative		-			-			-			-			562,088			562,088
Settlements		(21,702,345	)		-			(1,018,130	)		346,177			-			(22,374,298	)
Ending Balance December 31, 2015	$	583,683,137		$	5,634,360		$	60,707,290		$	4,824,060		$	(972,898	)	$	653,875,949
Total amount of losses for the period included in earnings attributable to the change in unrealized losses relating to assets or liabilities held on December 31, 2015	$	-		$	-		$	-		$	-		$	(1,802,655	)	$	(1,802,655	)

(1) Mortgage revenue bonds includes both bonds held in trust as well as those held by the Partnership.

(2) Interest rate derivatives include derivative contracts reported in other assets as well as derivative swap liabilities.

The table below summarizes the fair value of the Partnership’s financial liabilities at December 31, 2017 and 2016:

	December 31, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:
Debt financing and LOCs	$	608,328,347	$	618,412,150	$	555,199,700	$	553,083,924
Mortgages payable and other secured financing		35,540,174		35,767,924		51,379,512		51,595,281