Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segments

24. Segments

The Partnership has four reportable segments - Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts, and Other Investments.  The Partnership separately reports its consolidation and elimination information because it does not allocate certain items to the segments.

The Partnership Agreement authorizes the Partnership to make investments in tax-exempt securities other than MRBs provided that the tax-exempt investments are rated in one of the four highest rating categories by a national securities rating agency. The Partnership Agreement also allows the Partnership to invest in other securities whose interest may be taxable for federal income tax purposes. Total tax-exempt and other investments cannot exceed 25% of the Partnership’s total assets at the time of acquisition as required under the Partnership Agreement.  Tax-exempt and other investments consist of the PHC Certificates, taxable MRBs, real estate assets and investments in unconsolidated entities. In addition, the amount of other investments is limited based on the conditions to the exemption from registration under the Investment Company Act of 1940.

Mortgage Revenue Bond Investments Segment

The Mortgage Revenue Bond Investments segment consists of the Partnership’s portfolio of MRBs, a GIL and related property loans that have been issued to provide construction and/or permanent financing for Residential Properties, multifamily properties and commercial properties in their market areas.  Such MRBs and the GIL are held as investments and the related property loans, net of loan loss allowances, are reported as such on the Partnership’s condensed consolidated balance sheets.  As of June 30, 2020, the Partnership held 77 MRBs and one GIL. The Residential Properties financed by MRBs and the GIL contain a total of 11,047 and 300 rental units, respectively. In addition, one MRB (Pro Nova 2014-1) is collateralized by commercial real estate. All “General and administrative expenses” on the Partnership’s condensed consolidated statements of operations are reported within this segment.

MF Properties Segment

The MF Properties segment consists of multifamily and student housing residential properties held by the Partnership (see Note 9). During the time the Partnership holds an interest in an MF Property, any net rental income generated by the MF Properties in excess of debt service will be available for distribution to the Partnership.  As of June 30, 2020, the Partnership owned two MF Properties containing a total of 859 rental units. Income tax expense for the Greens Hold Co is reported within this segment.

Public Housing Capital Fund Trusts Segment

The Public Housing Capital Fund Trusts segment consists of the assets, liabilities, and related income and expenses of the Partnership’s PHC Certificates (see Note 8) and the related TOB Trust financings. In January 2020, the Partnership sold the PHC Certificates to an unrelated party, and the related TOB Trust financings were collapsed and all principal and interest was paid in full.  As a result, the Public Housing Capital Fund Trusts segment has no activity after January 2020.

Other Investments Segment

The Other Investments segment consists of the operations of ATAX Vantage Holdings, LLC, which invests in unconsolidated entities (see Note 10) and property loans to certain multifamily housing properties (see Note 11).

The following tables detail certain key financial information for the Partnership’s reportable segments for the three and six months ended June 30, 2020 and 2019:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
Total revenues
Mortgage Revenue Bond Investments	$	10,247,228		$	10,247,302		$	20,453,031		$	20,690,715
MF Properties		1,856,954			2,034,796			3,809,201			4,028,425
Public Housing Capital Fund Trusts		-			585,609			174,470			1,223,755
Other Investments		2,374,237			1,478,627			3,777,852			6,068,037
Total revenues	$	14,478,419		$	14,346,334		$	28,214,554		$	32,010,932
Interest expense
Mortgage Revenue Bond Investments	$	4,597,328		$	5,456,801		$	10,095,527		$	11,105,369
MF Properties		291,988			365,632			613,764			730,021
Public Housing Capital Fund Trusts		-			384,502			197,993			766,465
Other Investments		-			-			-			-
Total interest expense	$	4,889,316		$	6,206,935		$	10,907,284		$	12,601,855
Depreciation expense
Mortgage Revenue Bond Investments	$	3,359		$	-		$	5,783		$	-
MF Properties		708,722			818,154			1,415,736			1,637,312
Public Housing Capital Fund Trusts		-			-			-			-
Other Investments		-			-			-			-
Total depreciation expense	$	712,081		$	818,154		$	1,421,519		$	1,637,312
Net income (loss)
Mortgage Revenue Bond Investments	$	2,301,494		$	2,285,485		$	2,741,830		$	4,328,839
MF Properties		(85,583	)		(74,997	)		(338,313	)		(512,131	)
Public Housing Capital Fund Trusts		-			201,107			1,390,999			457,290
Other Investments		2,372,437			1,474,595			3,775,589			6,064,005
Net income	$	4,588,348		$	3,886,190		$	7,570,105		$	10,338,003

The following table details total assets for the Partnership’s reportable segments as of June 30, 2020 and December 31, 2019:

	June 30, 2020			December 31, 2019
Total assets
Mortgage Revenue Bond Investments	$	973,941,784		$	918,301,172
MF Properties		69,044,411			70,569,646
Public Housing Capital Fund Trusts		-			43,591,048
Other Investments		91,683,948			87,098,315
Consolidation/eliminations		(96,180,675	)		(90,391,673	)
Total assets	$	1,038,489,468		$	1,029,168,508