The Partnership invests in GILs that are issued by state or local governmental authorities to finance the construction of affordable multifamily properties. The Partnership expects and believes the interest earned on the GILs is excludable from gross income for federal income tax purposes. GILs do not constitute an obligation of any government, agency or authority and no government, agency or authority is liable for them, nor is the taxing power of any state government pledged to the payment of principal or interest on the GILs. Each GIL is secured by a mortgage on all real and personal property of the affordable multifamily property. A first mortgage lien position with property loans and/or taxable GILs owned by the Partnership is shared with certain GILs (Notes 6 and 9). Sources of the funds to pay principal and interest on a GIL consist of the net cash flow or the sale or refinancing proceeds from the secured property and limited-to-full payment guaranties provided by affiliates of the borrower.

All GILs were held in trust in connection with TOB trust financings as of March 31, 2026 and December 31, 2025 (Note 13), with the exception of the Residency at Sky Village GIL. Typically at the closing of each GIL, Freddie Mac, through a servicer, has forward committed to purchase the GIL at maturity at par if the property has reached stabilization and other conditions are met. There is no forward commitment from Freddie Mac for the Residency at Sky Village GIL as of March 31, 2026, though one is expected to close in 2026.


								As of March 31, 2026
Property Name	Month Acquired	Property Location	Units		Maturity Date	Interest Rate		Current Interest Rate	Amortized Cost
Poppy Grove I (1), (2)	September 2022	Elk Grove, CA	147		4/15/2026	6.78%		6.78%		40,888,328
Poppy Grove II (1), (2)	September 2022	Elk Grove, CA	82		4/15/2026	6.78%		6.78%		24,050,000
Poppy Grove III (1), (2)	September 2022	Elk Grove, CA	158		5/15/2026	6.78%		6.78%		44,819,507
Residency at Sky Village Hollywood (3)	December 2025	Hollywood, CA	523		12/31/2030	SOFR + 3.20%	(4)	6.95%		29,000,000
				910					$	138,757,835

(1)

Freddie Mac, through a servicer, has forward committed to purchase the GIL at maturity at par if the property has reached stabilization and other conditions are met. The Freddie Mac servicer that has forward committed to purchase the GIL at maturity is an affiliate of the Partnership (Note 19).

(2)

The Partnership has agreed to provide a subordinate GIL after the execution of Freddie Mac’s forward purchase commitment if needed by the property. The potential subordinate GIL amounts are up to $3.8 million, $2.2 million, and $4.2 million for Poppy Grove I, Poppy Grove II, and Poppy Grove III, respectively.

(3)

The Residency at Sky Village Hollywood GIL is considered to be available-for-sale sale and reported at fair value, which approximated amortized cost as of March 31, 2026. The Partnership expects to sell the GIL into the Construction Lending JV in the future.

(4)

The variable index interest rate component is subject to an all-in floor of 6.95%. The borrower has the option to convert to fixed rate within 210 days of closing equal to the greater of: (a) the 5-year SOFR Swap Rate + 3.40% or (b) 6.95%.


								As of December 31, 2025
Property Name	Month Acquired	Property Location	Units		Maturity Date (1)	Interest Rate (2)		Current Interest Rate	Amortized Cost
Poppy Grove I (1), (2)	September 2022	Elk Grove, CA	147		4/1/2026	6.78%		6.78%		40,888,328
Poppy Grove II (1), (2)	September 2022	Elk Grove, CA	82		4/1/2026	6.78%		6.78%		24,050,000
Poppy Grove III (1), (2)	September 2022	Elk Grove, CA	158		5/1/2026	6.78%		6.78%		44,819,507
Residency at Sky Village Hollywood (3)	December 2025	Hollywood, CA	523		12/31/2030	SOFR + 3.20%	(4)	7.04%		29,000,000
				910					$	138,757,835

(1)

(2)

(3)

The Residency at Sky Village Hollywood GIL is considered to be available-for-sale sale and reported at fair value, which approximated amortized cost as of December 31, 2025. The Partnership expects to sell the GIL into the Construction Lending JV in the future.

(4)

The Partnership has accrued interest receivable related to its GILs of approximately $814,000 and approximately $698,000 as of March 31, 2026 and December 31, 2025, respectively, that is reported within "Interest receivable, net" in the Partnership’s condensed consolidated balance sheets.

An entity that is an affiliate of the borrowers for the Poppy Grove GILs, Poppy Grove taxable GILs (Note 9), and Gateway and Yarbrough Predevelopment Project taxable MRB (Note 9) has provided payment guaranties with total outstanding principal of approximately $109.8 million, $43.9 million, and $800,000, respectively, as of March 31, 2026.

The Partnership has remaining commitments to provide funding of certain GILs on a draw-down basis during construction and/or rehabilitation of the secured properties as of March 31, 2026. See Note 16 for information regarding the Partnership's remaining GIL funding commitments.

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

In March 2026, the Partnership recognized fees totaling approximately $386,000 in other income in connection with the extension of the maturity dates of the Poppy Grove I and Poppy Grove II GILs and taxable GILs to mid-April 2026. There were no additional material changes to terms associated with the Poppy Grove I and Poppy Grove II GILs and taxable GILs.

In January 2025, the Partnership recognized a fee of approximately $87,000 in other income in connection with an extension of the maturity date of the Legacy Commons at Signal Hills GIL to August 2025.

In February 2025, the borrowers for Poppy Grove I, Poppy Grove II , and Poppy Grove III re-allocated $5.2 million, $1.8 million, and $5.7 million, respectively, from a taxable GIL (Note 9) to a GIL for each property. The Partnership received no net proceeds and advanced no net funding upon re-allocation.

In February 2025, the Partnership recognized fees totaling approximately $307,000 in other income in connection with the extension of the maturity dates of the Poppy Grove I, Poppy Grove II, and Poppy Grove III GILs and taxable GILs to October 2025. There were no additional material changes to terms associated with the Poppy Grove I, Poppy Grove II, and Poppy Grove III GILs and taxable GILs.