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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 18. Commitments and Contingencies Legal Proceedings The Partnership, from time to time, is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are frequently covered by insurance. If it has been determined that a loss is probable to occur and the amount of the loss can be reasonably estimated, the estimated amount of the loss is accrued in the Partnership's consolidated financial statements. If the Partnership determines that a loss is reasonably possible, the Partnership will, if material, disclose the nature of the loss contingency and the estimated range of possible loss, or include a statement that no estimate of loss can be made. While the resolution of these matters cannot be predicted with certainty, the Partnership currently believes there are no pending legal proceedings in which the Partnership is currently involved the outcome of which will have a material effect on the Partnership’s financial condition, results of operations, or cash flows. Bond Purchase Commitments The Partnership may enter into bond purchase commitments related to MRBs to be issued and secured by properties under construction. Upon execution of the bond purchase commitment, the proceeds from the MRBs will be used to pay off the construction related debt. The Partnership bears no construction or stabilization risk during the commitment period. The Partnership accounts for its bond purchase commitments as available-for-sale securities and reports the asset or liability at fair value. Changes in the fair value of bond purchase commitments are recorded as gains or losses on the Partnership's consolidated statements of comprehensive income (loss). The following table summarizes the Partnership’s bond purchase commitments as of December 31, 2022:
Bond Purchase Commitments |  | Commitment Date |  | Maximum Committed Amounts Remaining |  |  | Interest Rate |  |  | Estimated Closing Date |  | Fair Value as of December 31, 2022 |  |  | Fair Value as of December 31, 2021 |
CCBA Senior Garden Apartments |  | July 2020 |  | $ | - |  |  |  | 4.50 | % |  | June 2022 (1) |  | $ | - |  |  | $ | 495,784 |
Anaheim & Walnut |  | September 2021 |  |  | 3,900,000 |  |  |  | 4.85 | % |  | Q3 2024 |  |  | 98,929 |  |  |  | 468,620 |
|  |  |  | $ | 3,900,000 |  |  |  |  |  |  |  | $ | 98,929 |  |  | $ | 964,404 |
(1) The closing date is actual. Investment Commitments The Partnership has remaining commitments to provide additional funding of certain MRBs, taxable MRBs, GILs, taxable GILs, and property loans while the secured properties are under construction or rehabilitation. The Partnership has outstanding commitments to contribute additional equity to unconsolidated entities. The following table summarizes the Partnership's total and remaining commitments as of December 31, 2022:
Property Name |  | Commitment Date |  | Maturity Date |  | Interest Rate (1) |  | Total Initial Commitment |  |  | Remaining Commitment as of December 31, 2022 |
Mortgage Revenue Bonds |  |  |  |  |  |  |  |  |  |
Residency at the Mayer - Series A |  | October 2021 |  | April 2039 |  | SOFR + 3.60% |  | $ | 29,500,000 |  |  | $ | 3,500,000 |
Meadow Valley |  | December 2021 |  | December 2029 |  | 6.25% |  |  | 44,000,000 |  |  |  | 39,276,563 |
Residency at the Entrepreneur- Series J-3 |  | April 2022 |  | March 2040 |  | 6.00% |  |  | 26,080,000 |  |  |  | 22,180,000 |
Residency at the Entrepreneur- Series J-4 |  | April 2022 |  | March 2040 |  | SOFR + 3.60% (2) |  |  | 16,420,000 |  |  |  | 16,420,000 |
Residency at Empire - Series BB-3 |  | December 2022 |  | December 2040 |  | 6.45% (4) |  |  | 14,000,000 |  |  |  | 13,945,000 |
Residency at Empire - Series BB-4 |  | December 2022 |  | December 2040 |  | 6.45% (5) |  |  | 47,000,000 |  |  |  | 47,000,000 |
Subtotal |  |  |  |  |  |  |  |  | 177,000,000 |  |  |  | 142,321,563 |
Taxable Mortgage Revenue Bonds |  |  |  |  |  |  |  |  |  |
Residency at the Mayer Series A-T |  | October 2021 |  | April 2024 (3) |  | SOFR + 3.70% |  | $ | 12,500,000 |  |  | $ | 11,500,000 |
Residency at the Entrepreneur Series J-T |  | April 2022 |  | April 2025 (3) |  | SOFR + 3.65% |  |  | 13,000,000 |  |  |  | 12,000,000 |
Residency at Empire - Series BB-T |  | December 2022 |  | December 2025 (3) |  | 7.45% |  |  | 9,404,500 |  |  |  | 8,404,500 |
Subtotal |  |  |  |  |  |  |  |  | 34,904,500 |  |  |  | 31,904,500 |
Governmental Issuer Loans |  |  |  |  |  |  |  |  |  |
Osprey Village |  | July 2021 |  | August 2024 (3) |  | SOFR + 3.07% |  |  | 60,000,000 |  |  |  | 20,106,960 |
Willow Place Apartments |  | September 2021 |  | October 2024 (3) |  | SOFR + 3.30% |  |  | 25,000,000 |  |  |  | 7,645,528 |
Poppy Grove I |  | September 2022 |  | April 2025 (3) |  | 6.78% |  |  | 35,688,328 |  |  |  | 27,842,328 |
Poppy Grove II |  | September 2022 |  | April 2025 (3) |  | 6.78% |  |  | 22,250,000 |  |  |  | 17,708,700 |
Poppy Grove III |  | September 2022 |  | April 2025 (3) |  | 6.78% |  |  | 39,119,507 |  |  |  | 30,569,507 |
Subtotal |  |  |  |  |  |  |  |  | 182,057,835 |  |  |  | 103,873,023 |
Taxable Governmental Issuer Loans |  |  |  |  |  |  |  |  |  |
Hope on Avalon |  | January 2021 |  | August 2023 |  | SOFR + 3.55% |  | $ | 10,573,000 |  |  | $ | 5,573,000 |
Poppy Grove I |  | September 2022 |  | April 2025 (3) |  | 6.78% |  |  | 21,157,672 |  |  |  | 20,157,672 |
Poppy Grove II |  | September 2022 |  | April 2025 (3) |  | 6.78% |  |  | 10,941,300 |  |  |  | 9,941,300 |
Poppy Grove III |  | September 2022 |  | April 2025 (3) |  | 6.78% |  |  | 24,480,493 |  |  |  | 23,480,493 |
Subtotal |  |  |  |  |  |  |  |  | 67,152,465 |  |  |  | 59,152,465 |
Property Loans |  |  |  |  |  |  |  |  |  |  |  |
Oasis at Twin Lakes |  | July 2020 |  | August 2023 (3) |  | LIBOR + 2.50% |  | $ | 27,704,180 |  |  | $ | 3,685,523 |
Hilltop at Signal Hills |  | January 2021 |  | August 2023 (3) |  | SOFR + 3.07% |  |  | 21,197,939 |  |  |  | 1,479,605 |
Legacy Commons at Signal Hills |  | January 2021 |  | February 2024 (3) |  | SOFR + 3.07% |  |  | 32,233,972 |  |  |  | 2,567,067 |
Osprey Village |  | July 2021 |  | August 2024 (3) |  | SOFR + 3.07% |  |  | 25,500,000 |  |  |  | 24,500,000 |
Willow Place Apartments |  | September 2021 |  | October 2024 (3) |  | SOFR + 3.30% |  |  | 21,351,328 |  |  |  | 20,351,328 |
Magnolia Heights |  | June 2022 |  | July 2024 (3) |  | SOFR + 3.85% |  |  | 10,300,000 |  |  |  | 4,111,399 |
Subtotal |  |  |  |  |  |  |  |  | 138,287,419 |  |  |  | 56,694,922 |
Equity Investments |  |  |  |  |  |  |  |  |  |  |  |
Vantage at San Marcos (6), (7) |  | November 2020 |  | N/A |  | N/A |  | $ | 9,914,529 |  |  | $ | 8,943,914 |
Freestone Greeley (7) |  | October 2022 |  | N/A |  | N/A |  |  | 16,035,710 |  |  |  | 11,325,008 |
Freestone Cresta Bella (7) |  | November 2022 |  | N/A |  | N/A |  |  | 16,405,514 |  |  |  | 10,204,191 |
Subtotal |  |  |  |  |  |  |  |  | 42,355,753 |  |  |  | 30,473,113 |
Bond Purchase Commitments |  |  |  |  |  |  |  |  |  |  |  |
Anaheim & Walnut |  | September 2021 |  | Q3 2024 (8) |  | 4.85% |  | $ | 3,900,000 |  |  | $ | 3,900,000 |
Subtotal |  |  |  |  |  |  |  |  | 3,900,000 |  |  |  | 3,900,000 |
Total Commitments |  |  |  |  |  |  |  | $ | 645,657,972 |  |  | $ | 428,319,586 |
(1) The variable index interest rate components are typically subject to floors that range from 0% to 0.85%. (2) Upon stabilization, the MRB will convert to a fixed rate of 8.0% and become subordinate to the other senior MRBs. (3) The borrowers may elect to extend the maturity date for a period ranging between six and twelve months upon meeting certain conditions, which may include payment of a non-refundable extension fee. (4) Beginning December 2029, the interest rate will change to the greater of (i) 3.25% over the then 10-Year SOFR Swap rate, or (ii) 6.00%. (5) Upon stabilization, the MRB will convert to a fixed rate of 10.0% and become subordinate to the other senior MRBs of the borrower. (6) The property became a consolidated VIE effective during the fourth quarter of 2021 (Note 5). (7) A development site has been identified for this property but construction had not commenced as of December 31, 2022. (8) This is the estimated closing date of the associated bond purchase commitment. Construction Loan Guaranties The Partnership entered into guaranty agreements for bridge loans related to certain investments in unconsolidated entities. The Partnership will only have to perform on the guaranties if a default by the borrower were to occur. The Partnership has not accrued any amount for these contingent liabilities because the Partnership believes the likelihood of guaranty claims is remote. The following table summarizes the Partnership’s maximum exposure under these guaranty agreements as of December 31, 2022:
Borrower |  | Guaranty Maturity |  | Maximum Balance Available on Loan |  |  | Loan Balance as of December 31, 2022 |  |  | Partnership's Maximum Exposure as of December 31, 2022 |  |  | Guaranty Terms
Vantage at Stone Creek |  | 2023 |  | $ | 34,222,000 |  |  | $ | 34,222,000 |  |  | $ | 17,111,000 |  |  | (1)
Vantage at Coventry |  | 2023 |  |  | 34,536,000 |  |  |  | 34,536,000 |  |  |  | 17,268,000 |  |  | (1)
(1) The Partnership’s guaranty is for 50% of the loan balance. The Partnership has guaranteed up to 100% of the outstanding loan balance upon the occurrence of fraud or other willful misconduct by the borrower or if the borrower voluntarily files for bankruptcy. The guaranty agreement requires the Partnership to maintain a minimum net worth of not less than $100.0 million and maintain liquid assets of not less than $5.0 million. The Partnership was in compliance with these requirements as of December 31, 2022. The Partnership has also provided indemnification to the lender for various costs including environmental non-compliance and remediation during the term. Other Guaranties and Commitments The Partnership has entered into guaranty agreements with unaffiliated entities under which the Partnership has guaranteed certain obligations of the general partners of certain limited partnerships upon the occurrence of a “repurchase event.” Potential repurchase events include LIHTC tax credit recapture and foreclosure. The Partnership’s maximum exposure is limited to 75% of the equity contributed by the limited partner to each limited partnership. No amount has been accrued for these guaranties because the likelihood of repurchase events is remote. The following table summarizes the Partnership’s maximum exposure under these guaranty agreements as of December 31, 2022:
Limited Partnership(s) |  | End of Guaranty Period |  | Partnership's Maximum Exposure as of December 31, 2022 |  |
Ohio Properties |  | 2026 |  | $ | 2,310,609 |  |
Greens of Pine Glen, LP |  | 2027 |  |  | 1,662,397 |  |
In December 2022, the Partnership sold 100% of its ownership interest in The 50/50 MF Property to an unrelated non-profit organization. The buyer assumed two mortgages payable associated with the property and the Partnership agreed to provide certain recourse support for the assumed mortgages. The TIF Loan support is in the form of a payment guaranty. The Mortgage support is in the form of a forward loan purchase agreement upon maturity of the Mortgage. The estimated fair value of the credit guaranties as of the commitment date totaled approximately $363,000 and is included within other liabilities in the Partnership's consolidated financial statements. No additional contingent liability has been accrued because the likelihood of claims is remote. The following table summarizes the Partnership’s maximum exposure under these credit guaranties as of December 31, 2022:
Borrower |  | End of Guaranty Period |  | Partnership's Maximum Exposure as of December 31, 2022 |
The 50/50 MF Property--TIF Loan |  | 2025 |  | $ | 1,809,510 |
The 50/50 MF Property--Mortgage |  | 2027 |  |  | 22,419,849 |

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