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Subsequent Events | 9 Months Ended
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Sep. 30, 2023
Subsequent Events [Abstract] |
Subsequent Events | 25. Subsequent Events In October 2023, the Partnership originated an MRB investment for the construction of an affordable multifamily property. The Partnership’s remaining commitment will be funded on a draw-down basis during construction. The following table summarizes the terms of the Partnership’s MRB investment:
Commitment |  | Month Acquired |  | Property Location |  | Units |  |  | Maturity Date |  | Fixed Interest Rate |  | Initial Funding |  |  | Maximum Commitment |
The Safford |  | October 2023 |  | Marana, AZ |  |  | 200 |  |  | 10/10/2026 |  | 7.59% |  | $ | 7,560,034 |  |  | $ | 43,000,000 |
In October 2023, the Partnership entered into a new TOB trust financing arrangement with Mizuho. The following table summarizes the initial terms of the TOB trust financing:
TOB Trusts Securitization |  | TOB Trust Financing |  |  | Stated Maturity |  | Interest Rate Type |  | Tax-Exempt Interest on Senior Securities |  | Remarketing Senior Securities Rate |  | Facility Fees |  | Interest Rate
The Safford MRB |  | $ | 6,050,000 |  |  | October 2026 |  | Variable |  | Yes |  | 4.46% |  | 1.44% |  | 5.90%
In October 2023, the Partnership entered into an additional interest rate swap agreement to mitigate interest rate risk associated with its variable rate TOB trust financings. The following table summarizes the terms of the interest rate swap agreement:
Trade Date |  | Notional Amount |  |  | Effective Date |  | Termination Date |  | Fixed Rate Paid |  | Variable Rate Index Received |  | Variable Debt Financing Hedged |  | Counterparty
October 2023 |  | $ | 3,520,000 |  | (1) | 10/10/2023 |  | 4/1/2027 |  | 4.722% |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets
(1) The notional amount increases according to a schedule up to a maximum notional amount of $24.1 million. In October 2023, the Partnership redeemed $10.0 million of Series A Preferred Unit of an investor. The redemption was paid using unrestricted cash on hand. In addition, in October 2023, an investor provided notice of its intent to redeem $10.0 million of Series A Preferred Units in March 2024. In November 2023, the Partnership completed a trust securitization financing transaction of its residual interests in the M31, M33 and M45 TEBS financings (the “TEBS Residual Financing”). The securitization involved the sale of the TEBS Financings residual interests to an issuer, which then issued and sold $61.5 million of senior Affordable Housing Multifamily Certificates. The Partnership retained $20.5 million of residual Affordable Housing Multifamily Certificates also issued by the issuer. The senior Affordable Housing Multifamily Certificates are considered secured financing of the Partnership and were sold to third party investors in exchange for financing proceeds. The residual Affordable Housing Multifamily Certificates were retained by the Partnership. The $61.5 million of senior Affordable Housing Multifamily Certificates represent secured financing of the Partnership for financial reporting purposes and are entitled to interest at a fixed rate of 7.125% per annum and certain principal payments from the assets within the TEBS Residual Financing. The Partnership is entitled to all residual cash flows of the TEBS Residual Financing after payments to the senior Affordable Housing Multifamily Certificates and trustee expenses of 0.03% per annum. The senior Affordable Housing Multifamily Certificates are non-recourse to the Partnership and are not subject to mark-to-market collateral posting. The term of the TEBS Residual Financing will end upon the earlier of repayment of the $61.5 million stated amount of the senior Affordable Housing Multifamily Certificates or July 25, 2034. The Partnership received net proceeds of approximately $60.4 million, after payment of placement, legal and other related costs. Approximately $57.9 million of the net proceeds, in addition to approximately $24.6 million of restricted cash released under our total return swap, were used to pay down approximately $82.5 million of outstanding principal and accrued interest of the Partnership’s Secured Notes. In November 2023, the Jackson Manor MRB was resized downward to a principal amount of approximately $4.8 million upon conversion to permanent financing. The borrower repaid principal of approximately $2.1 million upon conversion, of which approximately $1.8 million was used to repay amounts outstanding on the related TOB financing. In November 2023, the Partnership extended the Residency at the Mayer TOB trust financing maturity date to October 2026. There were no additional changes to terms associated with the extensions.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//855/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483399/855-10-50-2 + Details
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