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Mortgage Revenue Bonds
 9 Months Ended
Sep. 30, 2024
Investments In Mortgage Revenue Bonds [Abstract]  
Mortgage Revenue Bonds

4. Mortgage Revenue Bonds

The Partnership’s MRBs provide construction and/or permanent financing for income-producing multifamily rental, seniors housing and skilled nursing properties. MRBs are either held directly by the Partnership or are held in trusts created in connection with debt financing transactions (Note 13). The MRBs predominantly bear interest at fixed interest rates and require regular principal and interest payments on either a monthly or semi-annual basis. The Partnership had the following investments in MRBs as of September 30, 2024 and December 31, 2023:

 

 

September 30, 2024

 

Description of Mortgage Revenue Bonds Held in Trust

 

State

 

Cost Adjusted for
Paydowns and
Allowances

 

 

Cumulative
Unrealized Gain

 

 

Cumulative
Unrealized Loss

 

 

Estimated Fair Value

 

The Safford (5)

 

AZ

 

$

26,322,560

 

 

$

2,161,492

 

 

$

-

 

 

$

28,484,052

 

40rty on Colony - Series P (5)

 

CA

 

 

5,962,679

 

 

 

634,867

 

 

 

-

 

 

 

6,597,546

 

CCBA Senior Garden Apartments (5)

 

CA

 

 

3,729,631

 

 

 

90,625

 

 

 

-

 

 

 

3,820,256

 

Courtyard - Series A (3)

 

CA

 

 

9,695,374

 

 

 

696,324

 

 

 

-

 

 

 

10,391,698

 

Glenview Apartments - Series A (2)

 

CA

 

 

4,264,440

 

 

 

234,094

 

 

 

-

 

 

 

4,498,534

 

Harmony Court Bakersfield - Series A (3)

 

CA

 

 

3,535,068

 

 

 

224,714

 

 

 

-

 

 

 

3,759,782

 

Harmony Terrace - Series A (3)

 

CA

 

 

6,545,401

 

 

 

472,114

 

 

 

-

 

 

 

7,017,515

 

Harden Ranch - Series A (1)

 

CA

 

 

6,281,531

 

 

 

363,312

 

 

 

-

 

 

 

6,644,843

 

Las Palmas II - Series A (3)

 

CA

 

 

1,603,453

 

 

 

105,861

 

 

 

-

 

 

 

1,709,314

 

Lutheran Gardens (6)

 

CA

 

 

10,352,000

 

 

 

10,681

 

 

 

-

 

 

 

10,362,681

 

Montclair Apartments - Series A (2)

 

CA

 

 

2,310,286

 

 

 

144,151

 

 

 

-

 

 

 

2,454,437

 

Montecito at Williams Ranch Apartments - Series A (5)

 

CA

 

 

7,391,545

 

 

 

632,062

 

 

 

-

 

 

 

8,023,607

 

Montevista - Series A (5)

 

CA

 

 

6,569,928

 

 

 

824,757

 

 

 

-

 

 

 

7,394,685

 

Ocotillo Springs - Series A (5), (7)

 

CA

 

 

3,463,976

 

 

 

-

 

 

 

(89,986

)

 

 

3,373,990

 

Ocotillo Springs - Series A-1 (5)

 

CA

 

 

497,059

 

 

 

88,592

 

 

 

-

 

 

 

585,651

 

Residency at Empire - Series BB-1 (5)

 

CA

 

 

14,112,329

 

 

 

853,947

 

 

 

-

 

 

 

14,966,276

 

Residency at Empire - Series BB-2 (5)

 

CA

 

 

4,000,000

 

 

 

276,079

 

 

 

-

 

 

 

4,276,079

 

Residency at Empire - Series BB-3 (5)

 

CA

 

 

14,000,000

 

 

 

774,775

 

 

 

-

 

 

 

14,774,775

 

Residency at Empire - Series BB-4 (5)

 

CA

 

 

13,800,000

 

 

 

283,747

 

 

 

-

 

 

 

14,083,747

 

Residency at the Entrepreneur - Series J-1 (5)

 

CA

 

 

9,080,296

 

 

 

163,976

 

 

 

-

 

 

 

9,244,272

 

Residency at the Entrepreneur - Series J-2 (5)

 

CA

 

 

7,500,000

 

 

 

203,560

 

 

 

-

 

 

 

7,703,560

 

Residency at the Entrepreneur - Series J-3 (5)

 

CA

 

 

26,080,000

 

 

 

774,752

 

 

 

-

 

 

 

26,854,752

 

Residency at the Entrepreneur - Series J-4 (5)

 

CA

 

 

14,020,000

 

 

 

-

 

 

 

-

 

 

 

14,020,000

 

Residency at the Entrepreneur - Series J-5 (5)

 

CA

 

 

1,000,000

 

 

 

-

 

 

 

-

 

 

 

1,000,000

 

Residency at the Mayer - Series A (5)

 

CA

 

 

29,557,380

 

 

 

-

 

 

 

-

 

 

 

29,557,380

 

Residency at the Mayer - Series M (5)

 

CA

 

 

11,500,000

 

 

 

-

 

 

 

-

 

 

 

11,500,000

 

San Vicente - Series A (3)

 

CA

 

 

3,306,234

 

 

 

227,267

 

 

 

-

 

 

 

3,533,501

 

Santa Fe Apartments - Series A (2)

 

CA

 

 

2,798,824

 

 

 

183,076

 

 

 

-

 

 

 

2,981,900

 

Seasons at Simi Valley - Series A (3)

 

CA

 

 

4,040,562

 

 

 

381,459

 

 

 

-

 

 

 

4,422,021

 

Seasons Lakewood - Series A (3)

 

CA

 

 

6,972,275

 

 

 

502,904

 

 

 

-

 

 

 

7,475,179

 

Seasons San Juan Capistrano - Series A (3)

 

CA

 

 

11,739,034

 

 

 

846,727

 

 

 

-

 

 

 

12,585,761

 

Solano Vista - Series A (5)

 

CA

 

 

2,596,792

 

 

 

271,321

 

 

 

-

 

 

 

2,868,113

 

Summerhill - Series A (3)

 

CA

 

 

6,087,330

 

 

 

206,461

 

 

 

-

 

 

 

6,293,791

 

Sycamore Walk - Series A (3)

 

CA

 

 

3,343,148

 

 

 

-

 

 

 

-

 

 

 

3,343,148

 

The Village at Madera - Series A (3)

 

CA

 

 

2,923,776

 

 

 

193,876

 

 

 

-

 

 

 

3,117,652

 

Tyler Park Townhomes - Series A (1)

 

CA

 

 

5,468,065

 

 

 

31,246

 

 

 

-

 

 

 

5,499,311

 

Village at Hanford Square - Series H (5)

 

CA

 

 

10,400,000

 

 

 

915,573

 

 

 

-

 

 

 

11,315,573

 

Vineyard Gardens - Series A (5)

 

CA

 

 

3,848,885

 

 

 

392,319

 

 

 

-

 

 

 

4,241,204

 

Westside Village Market - Series A (1)

 

CA

 

 

3,573,372

 

 

 

195,799

 

 

 

-

 

 

 

3,769,171

 

Handsel Morgan Village Apartments (5)

 

GA

 

 

2,150,000

 

 

 

248,980

 

 

 

-

 

 

 

2,398,980

 

MaryAlice Circle Apartments (5)

 

GA

 

 

5,900,000

 

 

 

736,170

 

 

 

-

 

 

 

6,636,170

 

Copper Gate Apartments (1)

 

IN

 

 

4,780,000

 

 

 

-

 

 

 

-

 

 

 

4,780,000

 

Renaissance - Series A (2)

 

LA

 

 

10,306,124

 

 

 

446,760

 

 

 

-

 

 

 

10,752,884

 

Live 929 Apartments - Series 2022A (5)

 

MD

 

 

58,504,219

 

 

 

4,312,250

 

 

 

-

 

 

 

62,816,469

 

Woodington Gardens Apartments - Series A-1 (5)

 

MD

 

 

31,150,000

 

 

 

3,985,399

 

 

 

-

 

 

 

35,135,399

 

Meadow Valley (5), (8)

 

MI

 

 

36,770,768

 

 

 

-

 

 

 

(936,992

)

 

 

35,833,776

 

Jackson Manor Apartments (5), (9)

 

MS

 

 

4,792,150

 

 

 

-

 

 

 

(220,535

)

 

 

4,571,615

 

Village Point (6)

 

NJ

 

 

23,000,000

 

 

 

81,983

 

 

 

-

 

 

 

23,081,983

 

Silver Moon - Series A (2)

 

NM

 

 

7,419,717

 

 

 

791,735

 

 

 

-

 

 

 

8,211,452

 

Village at Avalon (4)

 

NM

 

 

15,702,174

 

 

 

1,680,596

 

 

 

-

 

 

 

17,382,770

 

Columbia Gardens (3)

 

SC

 

 

12,201,896

 

 

 

723,229

 

 

 

-

 

 

 

12,925,125

 

Companion at Thornhill Apartments (3)

 

SC

 

 

10,523,796

 

 

 

496,255

 

 

 

-

 

 

 

11,020,051

 

The Ivy Apartments (5)

 

SC

 

 

30,560,832

 

 

 

1,620,042

 

 

 

-

 

 

 

32,180,874

 

The Palms at Premier Park Apartments (1)

 

SC

 

 

17,663,033

 

 

 

136,730

 

 

 

-

 

 

 

17,799,763

 

The Park at Sondrio - Series 2022A (5)

 

SC

 

 

38,100,000

 

 

 

2,266,828

 

 

 

-

 

 

 

40,366,828

 

The Park at Vietti - Series 2022A (5)

 

SC

 

 

26,985,000

 

 

 

1,669,536

 

 

 

-

 

 

 

28,654,536

 

Village at River's Edge (3)

 

SC

 

 

9,500,083

 

 

 

1,117,743

 

 

 

-

 

 

 

10,617,826

 

Willow Run (3)

 

SC

 

 

12,031,740

 

 

 

712,518

 

 

 

-

 

 

 

12,744,258

 

Windsor Shores Apartments - Series A (5)

 

SC

 

 

21,545,000

 

 

 

1,290,595

 

 

 

-

 

 

 

22,835,595

 

Arbors at Hickory Ridge (1)

 

TN

 

 

10,280,197

 

 

 

1,524,823

 

 

 

-

 

 

 

11,805,020

 

Avistar at Copperfield - Series A (5)

 

TX

 

 

13,256,750

 

 

 

821,812

 

 

 

-

 

 

 

14,078,562

 

Avistar at the Crest - Series A (1)

 

TX

 

 

8,657,283

 

 

 

750,764

 

 

 

-

 

 

 

9,408,047

 

Avistar at the Oaks - Series A (1)

 

TX

 

 

7,009,150

 

 

 

560,305

 

 

 

-

 

 

 

7,569,455

 

Avistar at the Parkway - Series A (2)

 

TX

 

 

12,144,850

 

 

 

605,382

 

 

 

-

 

 

 

12,750,232

 

Avistar at Wilcrest - Series A (5)

 

TX

 

 

5,024,040

 

 

 

290,852

 

 

 

-

 

 

 

5,314,892

 

Avistar at Wood Hollow - Series A (5)

 

TX

 

 

38,147,421

 

 

 

2,286,549

 

 

 

-

 

 

 

40,433,970

 

Avistar in 09 - Series A (1)

 

TX

 

 

6,052,124

 

 

 

499,260

 

 

 

-

 

 

 

6,551,384

 

Avistar on the Boulevard - Series A (1)

 

TX

 

 

14,748,623

 

 

 

1,066,658

 

 

 

-

 

 

 

15,815,281

 

Avistar on the Hills - Series A (1)

 

TX

 

 

4,798,619

 

 

 

383,597

 

 

 

-

 

 

 

5,182,216

 

Bruton Apartments (3)

 

TX

 

 

17,094,106

 

 

 

-

 

 

 

-

 

 

 

17,094,106

 

Concord at Gulfgate - Series A (3)

 

TX

 

 

18,021,427

 

 

 

1,482,518

 

 

 

-

 

 

 

19,503,945

 

Concord at Little York - Series A (3)

 

TX

 

 

12,624,862

 

 

 

1,038,574

 

 

 

-

 

 

 

13,663,436

 

Concord at Williamcrest - Series A (3)

 

TX

 

 

19,557,264

 

 

 

1,658,290

 

 

 

-

 

 

 

21,215,554

 

Crossing at 1415 - Series A (3)

 

TX

 

 

7,013,109

 

 

 

448,177

 

 

 

-

 

 

 

7,461,286

 

Decatur Angle (3)

 

TX

 

 

21,472,292

 

 

 

-

 

 

 

-

 

 

 

21,472,292

 

Esperanza at Palo Alto (3)

 

TX

 

 

18,621,264

 

 

 

1,897,879

 

 

 

-

 

 

 

20,519,143

 

Heights at 515 - Series A (3)

 

TX

 

 

6,420,622

 

 

 

483,333

 

 

 

-

 

 

 

6,903,955

 

Heritage Square - Series A (2)

 

TX

 

 

10,076,722

 

 

 

471,599

 

 

 

-

 

 

 

10,548,321

 

Oaks at Georgetown - Series A (3)

 

TX

 

 

11,696,347

 

 

 

616,020

 

 

 

-

 

 

 

12,312,367

 

15 West Apartments (3)

 

WA

 

 

9,306,460

 

 

 

1,309,587

 

 

 

-

 

 

 

10,616,047

 

Aventine Apartments (5)

 

WA

 

 

9,500,000

 

 

 

1,352,375

 

 

 

-

 

 

 

10,852,375

 

Mortgage revenue bonds held in trust

 

 

 

$

971,383,297

 

 

$

56,228,213

 

 

$

(1,247,513

)

 

$

1,026,363,997

 

 

(1)
MRB owned by ATAX TEBS II, LLC (M31 TEBS), Note 13. The TEBS financing has contractual limitations on the Partnership’s ability to sell the MRB.
(2)
MRB owned by ATAX TEBS III, LLC (M33 TEBS), Note 13. The TEBS financing has contractual limitations on the Partnership’s ability to sell the MRB.
(3)
MRB owned by ATAX TEBS IV, LLC (M45 TEBS), Note 13. The TEBS financing has contractual limitations on the Partnership’s ability to sell the MRB.
(4)
MRB held by Morgan Stanley in a debt financing transaction, Note 13.
(5)
MRB held by Mizuho in a debt financing transaction, Note 13.
(6)
MRB held by Barclays Capital Inc. in a debt financing transaction, Note 13.
(7)
As of the date presented, the Partnership determined that the unrealized loss on the MRB is a result of increasing market interest rates and is not considered a credit loss. As of September 30, 2024, the MRB has been in an unrealized loss position for at least 12 months.
(8)
The Partnership has a remaining MRB funding commitment of approximately $7.3 million as of September 30, 2024. The MRB and the unfunded MRB commitment are accounted for as available-for-sale securities and reported at fair value. The reported unrealized loss includes the unrealized loss on the current MRB carrying value (based on current fair value) as well as the unrealized loss on the Partnership’s remaining funding commitment outstanding as of September 30, 2024 (also based on current fair value). The Partnership determined the unrealized loss is a result of increasing market interest rates and that the cumulative unrealized loss is not considered a credit loss. As of September 30, 2024, the MRB has been in an unrealized loss position for more than 12 months.
(9)
As of the date presented, the Partnership determined that the unrealized loss on the MRB is a result of increasing market interest rates and is not considered a credit loss. As of September 30, 2024, the MRB has been in an unrealized loss position for less than 12 months.

 

 

 

September 30, 2024

 

Description of Mortgage Revenue Bonds held by the Partnership

 

State

 

Cost Adjusted for
Paydowns and
Allowances

 

 

Cumulative
Unrealized Gain

 

 

Cumulative
Unrealized Loss

 

 

Estimated Fair Value

 

Wellspring Apartments

 

CA

 

$

3,909,696

 

 

$

270,269

 

 

$

-

 

 

$

4,179,965

 

Avistar at the Crest - Series B

 

TX

 

 

713,129

 

 

 

42,274

 

 

 

-

 

 

 

755,403

 

Avistar at the Oaks - Series B

 

TX

 

 

522,660

 

 

 

29,336

 

 

 

-

 

 

 

551,996

 

Avistar at the Parkway - Series B

 

TX

 

 

122,305

 

 

 

16,079

 

 

 

-

 

 

 

138,384

 

Avistar in 09 - Series B

 

TX

 

 

431,147

 

 

 

24,199

 

 

 

-

 

 

 

455,346

 

Avistar on the Boulevard - Series B

 

TX

 

 

423,743

 

 

 

22,306

 

 

 

-

 

 

 

446,049

 

Mortgage revenue bonds

 

 

 

$

6,122,680

 

 

$

404,463

 

 

$

-

 

 

$

6,527,143

 

 

 

 

December 31, 2023

 

Description of Mortgage Revenue Bonds Held in Trust

 

State

 

Cost Adjusted for
Paydowns and
Allowances

 

 

Cumulative
Unrealized Gain

 

 

Cumulative
Unrealized Loss

 

 

Estimated Fair Value

 

The Safford (5)

 

AZ

 

$

7,667,299

 

 

$

2,717,033

 

 

$

-

 

 

$

10,384,332

 

40rty on Colony - Series P (5)

 

CA

 

 

5,964,008

 

 

 

739,204

 

 

 

-

 

 

 

6,703,212

 

Courtyard - Series A (3)

 

CA

 

 

9,774,107

 

 

 

845,146

 

 

 

-

 

 

 

10,619,253

 

Glenview Apartments - Series A (2)

 

CA

 

 

4,312,025

 

 

 

298,507

 

 

 

-

 

 

 

4,610,532

 

Harmony Court Bakersfield - Series A (3)

 

CA

 

 

3,563,775

 

 

 

275,305

 

 

 

-

 

 

 

3,839,080

 

Harmony Terrace - Series A (3)

 

CA

 

 

6,598,285

 

 

 

573,928

 

 

 

-

 

 

 

7,172,213

 

Harden Ranch - Series A (1)

 

CA

 

 

6,355,567

 

 

 

441,345

 

 

 

-

 

 

 

6,796,912

 

Las Palmas II - Series A (3)

 

CA

 

 

1,616,607

 

 

 

128,930

 

 

 

-

 

 

 

1,745,537

 

Lutheran Gardens (6), (7)

 

CA

 

 

10,352,000

 

 

 

-

 

 

 

(30,994

)

 

 

10,321,006

 

Montclair Apartments - Series A (2)

 

CA

 

 

2,336,065

 

 

 

170,291

 

 

 

-

 

 

 

2,506,356

 

Montecito at Williams Ranch Apartments - Series A (5)

 

CA

 

 

7,442,435

 

 

 

846,333

 

 

 

-

 

 

 

8,288,768

 

Montevista - Series A (5)

 

CA

 

 

6,607,973

 

 

 

992,675

 

 

 

-

 

 

 

7,600,648

 

Residency at Empire - Series BB-1 (5)

 

CA

 

 

14,117,540

 

 

 

1,004,021

 

 

 

-

 

 

 

15,121,561

 

Residency at Empire - Series BB-2 (5)

 

CA

 

 

4,000,000

 

 

 

320,446

 

 

 

-

 

 

 

4,320,446

 

Residency at Empire - Series BB-3 (5)

 

CA

 

 

5,055,000

 

 

 

575,709

 

 

 

-

 

 

 

5,630,709

 

Residency at the Entrepreneur - Series J-1 (5)

 

CA

 

 

9,085,429

 

 

 

181,504

 

 

 

-

 

 

 

9,266,933

 

Residency at the Entrepreneur - Series J-2 (5)

 

CA

 

 

7,500,000

 

 

 

222,445

 

 

 

-

 

 

 

7,722,445

 

Residency at the Entrepreneur - Series J-3 (5)

 

CA

 

 

12,300,000

 

 

 

697,895

 

 

 

-

 

 

 

12,997,895

 

Residency at the Mayer - Series A (5)

 

CA

 

 

29,560,945

 

 

 

-

 

 

 

-

 

 

 

29,560,945

 

San Vicente - Series A (3)

 

CA

 

 

3,333,357

 

 

 

265,848

 

 

 

-

 

 

 

3,599,205

 

Santa Fe Apartments - Series A (2)

 

CA

 

 

2,830,055

 

 

 

206,301

 

 

 

-

 

 

 

3,036,356

 

Seasons at Simi Valley - Series A (3)

 

CA

 

 

4,083,273

 

 

 

443,901

 

 

 

-

 

 

 

4,527,174

 

Seasons Lakewood - Series A (3)

 

CA

 

 

7,028,608

 

 

 

611,358

 

 

 

-

 

 

 

7,639,966

 

Seasons San Juan Capistrano - Series A (3)

 

CA

 

 

11,833,880

 

 

 

992,473

 

 

 

-

 

 

 

12,826,353

 

Summerhill - Series A (3)

 

CA

 

 

6,136,763

 

 

 

381,019

 

 

 

-

 

 

 

6,517,782

 

Sycamore Walk - Series A (3)

 

CA

 

 

3,380,901

 

 

 

226,216

 

 

 

-

 

 

 

3,607,117

 

The Village at Madera - Series A (3)

 

CA

 

 

2,947,519

 

 

 

227,699

 

 

 

-

 

 

 

3,175,218

 

Tyler Park Townhomes - Series A (1)

 

CA

 

 

5,533,307

 

 

 

119,693

 

 

 

-

 

 

 

5,653,000

 

Village at Hanford Square - Series H (5)

 

CA

 

 

10,400,000

 

 

 

1,073,808

 

 

 

-

 

 

 

11,473,808

 

Vineyard Gardens - Series A (5)

 

CA

 

 

3,874,962

 

 

 

461,663

 

 

 

-

 

 

 

4,336,625

 

Westside Village Market - Series A (1)

 

CA

 

 

3,616,007

 

 

 

223,459

 

 

 

-

 

 

 

3,839,466

 

MaryAlice Circle Apartments (5)

 

GA

 

 

5,900,000

 

 

 

880,643

 

 

 

-

 

 

 

6,780,643

 

Copper Gate Apartments (1), (7)

 

IN

 

 

4,780,000

 

 

 

-

 

 

 

(5

)

 

 

4,779,995

 

Renaissance - Series A (2)

 

LA

 

 

10,429,392

 

 

 

1,221,077

 

 

 

-

 

 

 

11,650,469

 

Live 929 Apartments - Series 2022A (5)

 

MD

 

 

58,333,646

 

 

 

3,275,636

 

 

 

-

 

 

 

61,609,282

 

Meadow Valley (5), (8)

 

MI

 

 

20,863,114

 

 

 

-

 

 

 

(920,148

)

 

 

19,942,966

 

Jackson Manor Apartments (5)

 

MS

 

 

4,824,474

 

 

 

209,082

 

 

 

-

 

 

 

5,033,556

 

Village Point (6)

 

NJ

 

 

23,000,000

 

 

 

192,788

 

 

 

-

 

 

 

23,192,788

 

Silver Moon - Series A (2)

 

NM

 

 

7,480,455

 

 

 

928,841

 

 

 

-

 

 

 

8,409,296

 

Village at Avalon (4)

 

NM

 

 

15,808,184

 

 

 

1,962,627

 

 

 

-

 

 

 

17,770,811

 

Columbia Gardens (3)

 

SC

 

 

12,351,218

 

 

 

807,633

 

 

 

-

 

 

 

13,158,851

 

Companion at Thornhill Apartments (3)

 

SC

 

 

10,639,506

 

 

 

598,197

 

 

 

-

 

 

 

11,237,703

 

The Ivy Apartments (5)

 

SC

 

 

30,567,832

 

 

 

1,933,208

 

 

 

-

 

 

 

32,501,040

 

The Palms at Premier Park Apartments (1)

 

SC

 

 

17,872,527

 

 

 

427,099

 

 

 

-

 

 

 

18,299,626

 

The Park at Sondrio - Series 2022A (5)

 

SC

 

 

38,100,000

 

 

 

2,682,964

 

 

 

-

 

 

 

40,782,964

 

The Park at Vietti - Series 2022A (5)

 

SC

 

 

26,985,000

 

 

 

1,972,695

 

 

 

-

 

 

 

28,957,695

 

Village at River's Edge (3)

 

SC

 

 

9,566,110

 

 

 

1,000,545

 

 

 

-

 

 

 

10,566,655

 

Willow Run (3)

 

SC

 

 

12,180,025

 

 

 

817,941

 

 

 

-

 

 

 

12,997,966

 

Windsor Shores Apartments - Series A (5)

 

SC

 

 

21,545,000

 

 

 

1,530,085

 

 

 

-

 

 

 

23,075,085

 

Arbors at Hickory Ridge (1)

 

TN

 

 

10,417,646

 

 

 

1,805,985

 

 

 

-

 

 

 

12,223,631

 

Avistar at Copperfield - Series A (5)

 

TX

 

 

13,378,386

 

 

 

983,586

 

 

 

-

 

 

 

14,361,972

 

Avistar at the Crest - Series A (1)

 

TX

 

 

8,762,826

 

 

 

909,437

 

 

 

-

 

 

 

9,672,263

 

Avistar at the Oaks - Series A (1)

 

TX

 

 

7,091,928

 

 

 

666,990

 

 

 

-

 

 

 

7,758,918

 

Avistar at the Parkway - Series A (2)

 

TX

 

 

12,270,653

 

 

 

830,179

 

 

 

-

 

 

 

13,100,832

 

Avistar at Wilcrest - Series A (5)

 

TX

 

 

5,070,137

 

 

 

313,010

 

 

 

-

 

 

 

5,383,147

 

Avistar at Wood Hollow - Series A (5)

 

TX

 

 

38,497,436

 

 

 

2,648,201

 

 

 

-

 

 

 

41,145,637

 

Avistar in 09 - Series A (1)

 

TX

 

 

6,123,600

 

 

 

593,430

 

 

 

-

 

 

 

6,717,030

 

Avistar on the Boulevard - Series A (1)

 

TX

 

 

14,928,425

 

 

 

1,346,449

 

 

 

-

 

 

 

16,274,874

 

Avistar on the Hills - Series A (1)

 

TX

 

 

4,855,291

 

 

 

470,520

 

 

 

-

 

 

 

5,325,811

 

Bruton Apartments (3), (7)

 

TX

 

 

17,220,941

 

 

 

-

 

 

 

(13,366

)

 

 

17,207,575

 

Concord at Gulfgate - Series A (3)

 

TX

 

 

18,190,721

 

 

 

1,807,038

 

 

 

-

 

 

 

19,997,759

 

Concord at Little York - Series A (3)

 

TX

 

 

12,743,460

 

 

 

1,302,221

 

 

 

-

 

 

 

14,045,681

 

Concord at Williamcrest - Series A (3)

 

TX

 

 

19,740,985

 

 

 

2,017,280

 

 

 

-

 

 

 

21,758,265

 

Crossing at 1415 - Series A (3)

 

TX

 

 

7,082,698

 

 

 

565,843

 

 

 

-

 

 

 

7,648,541

 

Decatur Angle (3), (7)

 

TX

 

 

21,646,255

 

 

 

-

 

 

 

(16,674

)

 

 

21,629,581

 

Esperanza at Palo Alto (3)

 

TX

 

 

18,751,278

 

 

 

2,480,537

 

 

 

-

 

 

 

21,231,815

 

Heights at 515 - Series A (3)

 

TX

 

 

6,484,332

 

 

 

602,199

 

 

 

-

 

 

 

7,086,531

 

Heritage Square - Series A (2)

 

TX

 

 

10,186,405

 

 

 

606,579

 

 

 

-

 

 

 

10,792,984

 

Oaks at Georgetown - Series A (3)

 

TX

 

 

11,790,848

 

 

 

838,472

 

 

 

-

 

 

 

12,629,320

 

15 West Apartments (3)

 

WA

 

 

9,371,808

 

 

 

1,478,567

 

 

 

-

 

 

 

10,850,375

 

Mortgage revenue bonds held in trust

 

 

 

$

825,040,234

 

 

$

58,971,739

 

 

$

(981,187

)

 

$

883,030,786

 

 

(1)
MRB owned by ATAX TEBS II, LLC (M31 TEBS), Note 13. The TEBS financing has contractual limitations on the Partnership’s ability to sell the MRB.
(2)
MRB owned by ATAX TEBS III, LLC (M33 TEBS), Note 13. The TEBS financing has contractual limitations on the Partnership’s ability to sell the MRB.
(3)
MRB owned by ATAX TEBS IV, LLC (M45 TEBS), Note 13. The TEBS financing has contractual limitations on the Partnership’s ability to sell the MRB.
(4)
MRB held by Morgan Stanley in a debt financing transaction, Note 13.
(5)
MRB held by Mizuho in a debt financing transaction, Note 13.
(6)
MRB held by Barclays Capital Inc. in a debt financing transaction, Note 13.
(7)
As of the date presented, the Partnership determined that the unrealized loss on the MRB is a result of increasing market interest rates and is not considered a credit loss. As of December 31, 2023, the MRB has been in an unrealized loss position for less than 12 months.
(8)
The Partnership has a remaining MRB funding commitment of approximately $23.2 million as of December 31, 2023. The MRB and the unfunded MRB commitment are accounted for as available-for-sale securities and reported at fair value. The reported unrealized loss includes the unrealized loss on the current MRB carrying value (based on current fair value) as well as the unrealized loss on the Partnership’s remaining funding commitment outstanding as of December
31, 2023 (also based on current fair value). The Partnership determined the unrealized loss is a result of increasing market interest rates and that the cumulative unrealized loss is not considered a credit loss. As of December 31, 2023, the MRB has been in an unrealized loss position for more than 12 months.

 

 

December 31, 2023

 

Description of Mortgage Revenue Bonds held by the Partnership

 

State

 

Cost Adjusted for
Paydowns and
Allowances

 

 

Cumulative
Unrealized Gain

 

 

Cumulative
Unrealized Loss

 

 

Estimated Fair Value

 

CCBA Senior Garden Apartments

 

CA

 

$

3,757,268

 

 

$

158,840

 

 

$

-

 

 

$

3,916,108

 

Ocotillo Springs - Series A (1)

 

CA

 

 

3,489,096

 

 

 

-

 

 

 

(59,805

)

 

 

3,429,291

 

Ocotillo Springs - Series A-1

 

CA

 

 

499,117

 

 

 

95,386

 

 

 

-

 

 

 

594,503

 

Residency at the Entrepreneur - Series J-5

 

CA

 

 

1,000,000

 

 

 

-

 

 

 

-

 

 

 

1,000,000

 

Solano Vista - Series A

 

CA

 

 

2,611,955

 

 

 

338,125

 

 

 

-

 

 

 

2,950,080

 

Handsel Morgan Village Apartments

 

GA

 

 

2,150,000

 

 

 

300,188

 

 

 

-

 

 

 

2,450,188

 

Brookstone

 

IL

 

 

7,229,475

 

 

 

1,071,177

 

 

 

-

 

 

 

8,300,652

 

Provision Center 2014-1

 

TN

 

 

926,475

 

 

 

-

 

 

 

-

 

 

 

926,475

 

Avistar at the Crest - Series B

 

TX

 

 

718,332

 

 

 

49,845

 

 

 

-

 

 

 

768,177

 

Avistar at the Oaks - Series B

 

TX

 

 

526,318

 

 

 

35,066

 

 

 

-

 

 

 

561,384

 

Avistar at the Parkway - Series B

 

TX

 

 

122,701

 

 

 

19,352

 

 

 

-

 

 

 

142,053

 

Avistar in 09 - Series B

 

TX

 

 

434,165

 

 

 

28,926

 

 

 

-

 

 

 

463,091

 

Avistar on the Boulevard - Series B

 

TX

 

 

426,835

 

 

 

27,507

 

 

 

-

 

 

 

454,342

 

Runnymede (2)

 

TX

 

 

9,390,000

 

 

 

-

 

 

 

(1,121

)

 

 

9,388,879

 

Southpark

 

TX

 

 

11,133,003

 

 

 

1,166,283

 

 

 

-

 

 

 

12,299,286

 

Mortgage revenue bonds

 

 

 

$

44,414,740

 

 

$

3,290,695

 

 

$

(60,926

)

 

$

47,644,509

 
(1)
As of the date presented, the Partnership determined that the unrealized loss on the MRB is a result of increasing market interest rates and is not considered a credit loss. As of December 31, 2023, the MRB has been in an unrealized loss position for more than 12 months.
(2)
As of the date presented, the Partnership determined that the unrealized loss on the MRB is a result of increasing market interest rates and is not considered a credit loss. As of December 31, 2023, the MRB has been in an unrealized loss position for less than 12 months.

The Partnership has accrued interest receivable related to its MRBs of approximately $5.1 million and approximately $4.7 million as of September 30, 2024 and December 31, 2023, respectively, that is reported as interest receivable, net in the Partnership's condensed consolidated balance sheets.

The Partnership has committed to provide funding for certain MRBs on a draw-down basis during construction and/or rehabilitation of the secured properties as of September 30, 2024. See Note 16 for additional information regarding the Partnership’s MRB funding commitments.

See Note 20 for a description of the methodology and significant assumptions used in determining the fair value of the MRBs. Unrealized gains or losses on the MRBs are recorded in the Partnership's condensed consolidated statements of comprehensive income to reflect changes in their estimated fair values resulting from market conditions and fluctuations in the present value of the expected cash flows from the MRBs.

See Note 10 for information regarding the Partnership’s allowance for credit losses.

Activity in the First Nine Months of 2024

Acquisitions:

The following MRBs were acquired at prices that approximated the principal outstanding plus accrued interest during the nine months ended September 30, 2024:

Property Name

 

Month
Acquired

 

Property Location

 

Units

 

 

Maturity Date

 

Interest Rate

 

 

Initial Principal Funding

 

Residency at the Mayer - Series M (1)

 

March 2024

 

Hollywood, CA

 

 

79

 

 

4/1/2039

 

SOFR + 3.60%

 

(2)

$

11,500,000

 

Woodington Gardens Apartments - Series A-1

 

April 2024

 

Baltimore, MD

 

 

197

 

 

5/1/2029

 

 

7.80

%

 

 

31,150,000

 

Aventine Apartments

 

May 2024

 

Bellevue, WA

 

 

68

 

 

6/1/2031

 

 

7.68

%

 

 

9,500,000

 

Wellspring Apartments (3)

 

August 2024

 

Long Beach, CA

 

 

88

 

 

9/1/2039

 

 

4.85

%

 

 

3,900,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

56,050,000

 
(1)
The borrower re-allocated $11.5 million of previously provided funding from a taxable MRB to this new MRB during the acquisition and rehabilitation phase of the property. Upon stabilization of the property, the MRB will be partially repaid and the maximum balance of the MRB after stabilization will not exceed $5.0 million.
(2)
The interest rate is subject to an all-in floor of 3.85%. Upon stabilization of the property, the interest rate will reset to a fixed rate based on the SOFR index plus 3.50% on or around the stabilization date.
(3)
The investment was previously reported as the Anaheim & Walnut bond purchase commitment and has converted to an MRB.

Sales:

The following MRB was sold at a price that approximated the Partnership’s carrying value plus accrued interest during the nine months ended September 30, 2024:

Property Name

 

Month Sold

 

Property Location

 

Units

 

 

Original
Maturity Date

 

Interest Rate

 

 

Principal
Outstanding at Date
of Sale

 

Brookstone

 

May 2024

 

Waukegan, IL

 

 

168

 

 

5/1/2040

 

 

5.45

%

 

$

8,221,234

 

The Partnership realized a gain on sale of the Brookstone MRB of approximately $1.0 million related to collection of an unamortized discount upon sale.

Redemptions:

The following MRBs were redeemed at a price that approximated the outstanding principal balance plus accrued interest during the nine months ended September 30, 2024:

Property Name

 

Month
Redeemed

 

Property Location

 

Units

 

 

Original
Maturity Date

 

Interest Rate

 

 

Principal
Outstanding at Date
of Redemption

 

Southpark

 

July 2024

 

Austin, TX

 

 

192

 

 

12/1/2049

 

 

6.13

%

 

$

12,300,000

 

Runnymede

 

August 2024

 

Austin, TX

 

 

252

 

 

10/1/2024

 

 

6.00

%

 

 

9,315,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21,615,000

 

Upon redemption of the Southpark MRB, the Partnership recognized investment income of $1.1 million related to its previously unamortized discount on the MRB.

In connection with the final settlement of the bankruptcy estate of the Provision Center 2014-1 MRB in July 2024, the Partnership received approximately $365,000 and recovered approximately $169,000 of its previously recognized allowance for credit loss (see Note 10).

Activity in the First Nine Months of 2023

Acquisitions:

The following MRBs were acquired at prices that approximated the principal outstanding plus accrued interest during the nine months ended September 30, 2023:

Property Name

 

Month
Acquired

 

Property Location

 

Units

 

 

Maturity Date

 

Interest Rate

 

 

Initial Principal Funded

 

Windsor Shores Apartments - Series A

 

January 2023

 

Columbia, SC

 

 

176

 

 

2/1/2030

 

 

6.50

%

 

$

21,545,000

 

The Ivy Apartments

 

January 2023

 

Greenville, SC

 

 

212

 

 

2/1/2030

 

 

6.50

%

 

 

30,500,000

 

Residency at the Entrepreneur - Series J-5 (1)

 

February 2023

 

Los Angeles, CA

 

 

200

 

 

4/1/2025

 

SOFR + 3.60%

 

(2)

 

1,000,000

 

Handsel Morgan Village Apartments

 

April 2023

 

Buford, GA

 

 

45

 

 

3/1/2041

 

 

6.75

%

 

 

2,150,000

 

MaryAlice Circle Apartments

 

April 2023

 

Buford, GA

 

 

98

 

 

3/1/2041

 

 

6.75

%

 

 

5,900,000

 

Village at Hanford Square - Series H

 

May 2023

 

Hanford, CA

 

 

100

 

 

5/1/2030

 

 

6.65

%

 

 

10,400,000

 

Village Point

 

May 2023

 

Monroe Township, NJ

 

 

120

 

(3)

6/1/2030

 

 

6.88

%

 

 

23,000,000

 

40rty on Colony - Series P

 

June 2023

 

La Mesa, CA

 

 

40

 

 

6/1/2030

 

 

7.05

%

 

 

5,950,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

100,445,000

 
(1)
The Partnership has committed to provide funding for the Series J-5 MRB totaling $5.0 million. See Note 16.
(2)
The interest rate is subject to an all-in floor of 3.87%.
(3)
Village Point is a seniors housing property with 120 beds in 92 units

 

Conversions:

In July 2023, the Ocotillo Springs property achieved stabilization and the borrower converted to permanent financing. The Ocotillo Springs – Series A MRB was paid down to its permanent financing size of $4.0 million, of which $500,000 was allocated as principal of the supplemental Ocotillo Springs – Series A-1 MRB. The following table summarizes the terms of the Ocotillo Springs MRBs after conversion:

Property Name

 

Property Location

 

Units

 

 

Maturity Date

 

Fixed Interest Rate

 

 

Post-Conversion Principal

 

Ocotillo Springs - Series A

 

Brawley, CA

 

 

75

 

 

8/1/2038

 

 

4.35

%

 

$

3,500,000

 

Ocotillo Springs - Series A-1

 

Brawley, CA

 

 

75

 

 

8/1/2038

 

 

6.50

%

 

 

500,000

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,000,000

 

Redemptions:

The following MRBs were redeemed at a price that approximated the Partnership’s carrying value plus accrued interest during the nine months ended September 30, 2023:

Property Name

 

Month
Redeemed

 

Property Location

 

Units

 

 

Original
Maturity Date

 

Interest Rate

 

 

Principal
Outstanding at Date
of Redemption

 

Greens Property - Series A

 

February 2023

 

Durham, NC

 

 

168

 

 

10/1/2047

 

 

6.50

%

 

$

7,579,000

 

Greens Property - Series B

 

February 2023

 

Durham, NC

 

 

168

 

 

10/1/2047

 

 

12.00

%

 

 

914,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

8,493,040