XML 46 R34.htm IDEA: XBRL DOCUMENT v3.25.0.1
Transactions with Related Parties
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Transactions with Related Parties

20. Transactions with Related Parties

The Partnership is managed by its General Partner, which is controlled by its general partner, Greystone Manager. The Board of Managers act as managers (and effectively as the directors) of the Partnership and certain employees of Greystone Manager are executive officers of the Partnership. Certain services are provided to the Partnership by employees of Greystone Manager and the Partnership reimburses Greystone Manager for its allocated share of these salaries and benefits. The Partnership also reimburses Greystone Manager for its share of general and administrative expenses. These reimbursed costs represent a substantial portion of the Partnership’s general and administrative expenses.

The amounts in the following table summarize amounts reimbursable to the General Partner, Greystone Manager, or an affiliate for the years ended December 31, 2024, 2023 and 2022 and are reported within “General and administrative expenses” in the Partnership’s consolidated statements of operations:

 

 

 

2024

 

 

2023

 

 

2022

 

Reimbursable salaries and benefits

 

$

5,849,829

 

 

$

6,517,811

 

 

$

5,763,496

 

Other expenses

 

 

59,048

 

 

 

41,841

 

 

 

77,383

 

Office expenses

 

 

295,087

 

 

 

284,396

 

 

 

269,722

 

Insurance

 

 

317,480

 

 

 

441,298

 

 

 

515,245

 

Professional fees and expenses

 

 

155,000

 

 

 

155,846

 

 

 

181,821

 

Consulting and travel expenses

 

 

57,939

 

 

 

56,973

 

 

 

19,381

 

 

 

$

6,734,383

 

 

$

7,498,165

 

 

$

6,827,048

 

The Partnership incurs costs for services and makes contractual payments to the General Partner, Greystone Manager, and their affiliates. The costs are reported either as expenses or capitalized costs depending on the nature of each item. The following table summarizes transactions with related parties that are reported in the Partnership’s consolidated financial statements for the years ended December 31, 2024, 2023 and 2022:

 

 

For the Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Partnership administrative fees paid to the General Partner (1)

 

$

6,210,000

 

 

$

6,319,000

 

 

$

5,200,000

 

Reimbursable franchise margin taxes incurred on behalf of unconsolidated entities (2)

 

 

97,000

 

 

 

169,000

 

 

 

328,000

 

Referral fees paid to an affiliate (3)

 

 

-

 

 

 

214,000

 

 

 

241,000

 

Servicing fees paid to an affiliate (4)

 

 

7,000

 

 

 

-

 

 

 

-

 
(1)
The General Partner is entitled to receive an administrative fee from the Partnership equal to 0.45% per annum of the outstanding principal balance of any of its investment assets for which the owner of the financed property or other third-party is not obligated to pay such administrative fee directly to the General Partner. The disclosed amounts represent administrative fees paid or accrued during the periods specified and are reported within “General and administrative expenses” on the Partnership’s consolidated statements of operations.
(2)
The Partnership pays franchise margin taxes on revenues in Texas related to its investments in unconsolidated entities. Such taxes are paid by the Partnership as the unconsolidated entities are required by tax regulations to be included in the Partnership’s group franchise tax return. Since the Partnership is reimbursed for the franchise margin taxes paid on behalf of the unconsolidated entities, these taxes are not reported on the Partnership’s consolidated statements of operations.
(3)
The Partnership has an agreement with an affiliate of Greystone, in which the Greystone affiliate is entitled to receive a referral fee up to 0.25% of the original principal amount of executed tax-exempt loan or tax-exempt bond transactions introduced to the Partnership by the Greystone affiliate. The term of the agreement ends December 31, 2025, unless the parties mutually agree to extend the term. The Partnership accounts for referral fees as bond acquisition costs that are deferred and amortized as a yield adjustment to the related investment asset.
(4)
Greystone Servicing, an affiliate of the Partnership, is the servicer for the 2024 PFA Securitization Bonds.

The General Partner receives fees from the borrowers and sponsors of the Partnership’s investment assets for services provided to the borrower and based on the occurrence of certain investment transactions. These fees were paid by the borrowers or sponsors and are not reported in the Partnership’s consolidated financial statements. The following table summarizes transactions between borrowers of the Partnership’s affiliates for the years ended December 31, 2024, 2023 and 2022:

 

 

 

For the Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Non-Partnership property administrative fees received by the General Partner (1)

 

$

-

 

 

$

-

 

 

$

26,000

 

Investment/mortgage placement fees earned by the General Partner (2)

 

$

2,860,000

 

 

$

4,209,000

 

 

 

5,487,000

 

 

(1)
The General Partner received administrative fees directly from the owners of certain properties financed by certain MRBs held by the Partnership. These administrative fees equal 0.45% per annum of the outstanding principal balance of the MRBs. The disclosed amounts represent administrative fees received by the Genereal Partner during the periods specified.
(2)
The General Partner received placement fees in connection with the acquisition of certain MRBs, taxable MRBs, GILs, taxable GILs and property loans and investments in unconsolidated entities.

As of December 31, 2024, Greystone Servicing, an affiliate of the Partnership, has forward committed to purchase eight of the Partnership’s GILs (Note 5), once certain conditions are met, at a price equal to the outstanding principal plus accrued interest. Greystone Servicing is committed to then immediately sell the GILs to Freddie Mac pursuant to a financing commitment between Greystone Servicing and Freddie Mac. Greystone Servicing did not purchase any of the Partnership’s GILs during the year ended December 31, 2022. Greystone Servicing purchased the following GILs during the years ended December 31, 2024 and 2023, including principal and accrued interest:

•
Oasis at Twin Lakes GIL for approximately $34.1 million in June 2023;
•
Hilltop at Signal Hills GIL for approximately $24.5 million in August 2023;
•
Centennial Crossings GIL for approximately $33.1 million in September 2023;
•
Scharbauer Flats Apartments GIL for approximately $40.0 million in November 2023; and
•
Magnolia Heights GIL for approximately $20.5 million in September 2024.

An affiliate of the Partnership, Greystone Bridge Lending Fund Manager LLC, entered into an investment management agreement in 2024 to provide various investment management services for the Construction Lending JV. No fees were paid to Greystone Bridge Lending Fund Manager LLC during the year ended December 31, 2024.

Greystone Select, an affiliate of the Partnership, has provided a deficiency guaranty of the Partnership’s obligations under the Secured Credit Agreement related to the Partnership's General LOC (Note 12). The guaranty is enforceable if an event of default occurs, the administrative agent takes certain actions in relation to the collateral and the amounts due under the Secured Credit Agreement are

not collected within a certain period of time after the commencement of such actions. No fees were paid to Greystone Select related to the deficiency guaranty agreement.

The Partnership reported receivables due from unconsolidated entities of approximately $98,000 and $169,000 as of December 31, 2024 and 2023, respectively. These amounts are reported within “Other assets” on the Partnership’s consolidated balance sheets. The Partnership had outstanding liabilities due to related parties totaling approximately $1,182,000 and $588,000 as of December 31, 2024 and 2023, respectively. These amounts are reported within “Accounts payable, accrued expenses and other liabilities” on the Partnership’s consolidated balance sheets.