XML 53 R45.htm IDEA: XBRL DOCUMENT v3.25.3
Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2025
Financing Receivable, Allowance for Credit Loss [Line Items]  
Summary of Changes in Partnership's Allowance for Credit Losses

The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and nine months ended September 30, 2025:

 

 

For the Three Months Ended September 30, 2025

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

$

696,000

 

 

$

212,000

 

 

$

2,465,734

 

 

$

30,000

 

 

$

3,403,734

 

Current provision for credit losses (1)

 

 

(5,000

)

 

 

32,000

 

 

 

537,084

 

 

 

(30,000

)

 

 

534,084

 

Balance, end of period

 

$

691,000

 

 

$

244,000

 

 

$

3,002,818

 

 

$

-

 

 

$

3,937,818

 
(1)
The current provision for credit losses includes an asset-specific allowance of approximately $596,000 related to the Opportunity South Carolina property loan.

 

 

 

For the Nine Months Ended September 30, 2025

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

$

1,038,000

 

 

$

76,000

 

 

 

1,930,000

 

 

$

186,000

 

 

$

3,230,000

 

Current provision for credit losses (1)

 

 

(347,000

)

 

 

168,000

 

 

 

1,072,818

 

 

 

(186,000

)

 

 

707,818

 

Balance, end of period

 

$

691,000

 

 

$

244,000

 

 

$

3,002,818

 

 

$

-

 

 

$

3,937,818

 
(1)
The current provision for credit losses includes an asset-specific allowance of approximately $1.2 million related to the Opportunity South Carolina property loan.

The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and nine months ended September 30, 2024:

 

 

For the Three Months Ended September 30, 2024

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

 

1,111,000

 

 

 

36,000

 

 

$

1,948,000

 

 

 

385,000

 

 

 

3,480,000

 

Current provision for credit losses

 

 

(48,000

)

 

 

(8,000

)

 

 

(95,000

)

 

 

(75,000

)

 

 

(226,000

)

Balance, end of period

 

$

1,063,000

 

 

$

28,000

 

 

$

1,853,000

 

 

$

310,000

 

 

$

3,254,000

 

 

 

 

For the Nine Months Ended September 30, 2024

 

 

 

Governmental Issuer Loans

 

 

Taxable Governmental Issuer Loans

 

 

Property Loans

 

 

Unfunded Commitments

 

 

Total

 

Balance, beginning of period

 

$

1,294,000

 

 

$

77,000

 

 

$

2,048,000

 

 

$

678,000

 

 

$

4,097,000

 

Current provision for credit losses

 

 

(231,000

)

 

 

(49,000

)

 

 

(195,000

)

 

 

(368,000

)

 

 

(843,000

)

Balance, end of period

 

$

1,063,000

 

 

$

28,000

 

 

$

1,853,000

 

 

$

310,000

 

 

$

3,254,000

 
Summary of Partnerships Carrying Value by Acquisition Year Grouped by Risk Rating

The following tables summarize the Partnership’s carrying value by acquisition year, grouped by risk rating as of September 30, 2025 and December 31, 2024:

 

 

September 30, 2025

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Total

 

Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

-

 

 

$

12,100,000

 

 

$

109,757,835

 

 

$

-

 

 

$

-

 

 

$

121,857,835

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

-

 

 

 

12,100,000

 

 

 

109,757,835

 

 

 

-

 

 

 

-

 

 

 

121,857,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43,879,465

 

 

$

-

 

 

$

-

 

 

$

43,879,465

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

-

 

 

 

-

 

 

 

43,879,465

 

 

 

-

 

 

 

-

 

 

 

43,879,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

7,250,000

 

 

$

-

 

 

$

45,933,611

 

 

$

-

 

 

$

-

 

 

$

53,183,611

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

1,219,818

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

495,000

 

 

 

1,714,818

 

Subtotal

 

 

1,219,818

 

 

 

7,250,000

 

 

 

-

 

 

 

45,933,611

 

 

 

-

 

 

 

495,000

 

 

 

54,898,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,219,818

 

 

$

7,250,000

 

 

$

12,100,000

 

 

$

199,570,911

 

 

$

-

 

 

$

495,000

 

 

$

220,635,729

 

 

 

 

December 31, 2024

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

13,600,000

 

 

$

90,779,628

 

 

$

115,322,594

 

 

$

-

 

 

$

-

 

 

$

219,702,222

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

13,600,000

 

 

 

90,779,628

 

 

 

115,322,594

 

 

 

-

 

 

 

-

 

 

 

219,702,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Governmental Issuer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

-

 

 

$

13,157,672

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

13,157,672

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

-

 

 

 

13,157,672

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13,157,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

7,250,000

 

 

$

7,830,000

 

 

$

40,489,611

 

 

$

-

 

 

 

-

 

 

$

-

 

 

$

55,569,611

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

-

 

 

 

495,000

 

 

 

495,000

 

Subtotal

 

 

7,250,000

 

 

 

7,830,000

 

 

 

40,489,611

 

 

 

-

 

 

 

-

 

 

 

495,000

 

 

 

56,064,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfunded Commitments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

-

 

 

$

-

 

 

$

49,700,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

49,700,000

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonperforming

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subtotal

 

 

-

 

 

 

-

 

 

 

49,700,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49,700,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

7,250,000

 

 

$

21,430,000

 

 

$

194,126,911

 

 

$

115,322,594

 

 

$

-

 

 

$

495,000

 

 

$

338,624,505

 
MRB and taxable MRB investments [Member]  
Financing Receivable, Allowance for Credit Loss [Line Items]  
Summary of Changes in Partnership's Allowance for Credit Losses The following table summarizes the changes in the Partnership’s allowance for credit losses for the three and nine months ended September 30, 2025 and 2024:

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Balance, beginning of period

 

$

12,898,073

 

 

$

4,163,350

 

 

$

4,128,849

 

 

$

9,910,079

 

Current provision for credit loss (1)

 

 

-

 

 

 

-

 

 

 

8,707,000

 

 

 

(169,308

)

Write-offs (2)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,542,921

)

Recovery of prior credit loss (3)

 

 

(11,060

)

 

 

(17,344

)

 

 

51,164

 

 

 

(51,844

)

Balance, end of period (4)

 

$

12,887,013

 

 

$

4,146,006

 

 

$

12,887,013

 

 

$

4,146,006

 

 

(1)
During the nine months ended September 30, 2025, the Partnership recognized a provision for credit loss of approximately $8.7 million related to The Park at Sondrio MRB and taxable MRB, The Park at Vietti MRB and taxable MRB, and Windsor Shores Apartments MRB and taxable MRB. The credit loss was driven primarily by worse than projected operating results, financial conditions of the borrowers, and estimated underlying collateral values.
(2)
In connection with the final settlement of the bankruptcy estate of the Provision Center 2014-1 MRB in July 2024, the Partnership recovered approximately $169,000 of its previously recognized allowance for credit loss and the remainder of the allowance associated with the MRB was written off.
(3)
The Partnership compared the present value of cash flows expected to be collected to the amortized cost basis of the Live 929 Apartments Series 2022A MRB, which indicated a recovery of value. As the recovery was identified prior to the effective date of the CECL standard, the Partnership will accrete the recovery of prior credit loss into investment income over the term of the MRB.
(4)
The allowance for credit losses as of September 30, 2025 was related to the Live 929 Apartments – 2022A MRB, The Park at Sondrio MRB and taxable MRB, The Park at Vietti MRB and taxable MRB, and Windsor Shores Apartments MRB and taxable MRB. The allowance for credit losses as of September 30, 2024 was related to the Live 929 Apartments – 2022A MRB.