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Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Measurements [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis as of December 31, 2018 are summarized as follows:

 

 

 

Fair Value Measurements as of December 31, 2018

 

Description

 

Assets 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage revenue bonds, held in trust

 

$

645,258,873

 

 

$

-

 

 

$

-

 

 

$

645,258,873

 

Mortgage revenue bonds

 

 

86,894,562

 

 

 

-

 

 

 

-

 

 

 

86,894,562

 

PHC Certificates

 

 

48,672,086

 

 

 

-

 

 

 

-

 

 

 

48,672,086

 

Taxable mortgage revenue bonds

   (reported within other assets)

 

 

1,409,895

 

 

 

-

 

 

 

-

 

 

 

1,409,895

 

Derivative instruments (reported within

   other assets)

 

 

626,633

 

 

 

-

 

 

 

-

 

 

 

626,633

 

Total Assets at Fair Value, net

 

$

782,862,049

 

 

$

-

 

 

$

-

 

 

$

782,862,049

 

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

 

 

 

Fair Value Measurements as of December 31, 2017

 

Description

 

Assets (Liabilities)

at Fair Value

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Liabilities)

(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 instruments (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

 
Summary of Activity Related to Level 3 Assets and Liabilities

The following table summarizes the activity related to Level 3 assets and liabilities for the year ended December 31, 2018:

 

 

 

For the Years Ended December 31, 2018

 

 

 

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, 2018

 

$

788,621,707

 

 

$

3,002,540

 

 

$

49,641,588

 

 

$

2,422,459

 

 

$

(229,631

)

 

$

843,458,663

 

Total gains (losses)

   (realized/unrealized)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings (interest

   income and interest expense)

 

 

144,692

 

 

 

-

 

 

 

(77,096

)

 

 

-

 

 

 

724,579

 

 

 

792,175

 

Included in earnings (impairment

   of securities)

 

 

-

 

 

 

-

 

 

 

(1,141,020

)

 

 

-

 

 

 

-

 

 

 

(1,141,020

)

Included in other

   comprehensive income

 

 

(14,560,720

)

 

 

(3,002,540

)

 

 

950,228

 

 

 

(32,756

)

 

 

-

 

 

 

(16,645,788

)

Purchases

 

 

41,708,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

41,708,000

 

Settlements

 

 

(83,760,244

)

 

 

-

 

 

 

(701,614

)

 

 

(979,808

)

 

 

131,685

 

 

 

(85,309,981

)

Ending Balance December 31, 2018

 

$

732,153,435

 

 

$

-

 

 

$

48,672,086

 

 

$

1,409,895

 

 

$

626,633

 

 

$

782,862,049

 

Total amount of gains (losses) for the

   period included in earnings attributable

   to the change in unrealized gains

   (losses) relating to assets or liabilities

   held on December 31, 2018

 

$

-

 

 

$

-

 

 

$

(1,141,020

)

 

$

-

 

 

$

724,579

 

 

$

(416,441

)

 

(1)

Mortgage revenue bonds include both bonds held in trust as well as those held by the Partnership. The beginning balance also includes the cumulative effect of accounting change related to the adoption of ASU 2017-08 effective January 1, 2018.

(2)

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

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

 

 

 

For the Years 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

   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 include 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.
Summary of Fair Value of Partnership's Financial Liabilities The table below summarizes the fair value of the Partnership’s financial liabilities as of December 31, 2018 and 2017:

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

Carrying Amount

 

 

Fair Value

 

 

Carrying Amount

 

 

Fair Value

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt financing and LOCs

 

$

541,322,765

 

 

$

550,766,809

 

 

$

608,328,347

 

 

$

618,412,150

 

Mortgages payable and other secured financing

 

 

27,454,375

 

 

 

27,552,748

 

 

 

35,540,174

 

 

 

35,767,924