| 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 months ended March 31, 2026:
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For the Three Months Ended March 31, 2026 |
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|
Governmental Issuer Loans |
|
|
Taxable Governmental Issuer Loans |
|
|
Property Loans |
|
|
Unfunded Commitments |
|
|
Total |
|
Balance, beginning of period |
|
$ |
609,000 |
|
|
$ |
244,000 |
|
|
$ |
3,477,134 |
|
|
$ |
- |
|
|
$ |
4,330,134 |
|
Current provision for credit losses (1) |
|
|
(45,000 |
) |
|
|
(19,000 |
) |
|
|
72,981 |
|
|
|
- |
|
|
|
8,981 |
|
Balance, end of period |
|
$ |
564,000 |
|
|
$ |
225,000 |
|
|
$ |
3,550,115 |
|
|
$ |
- |
|
|
$ |
4,339,115 |
|
(1)The current provision for credit losses includes an asset-specific allowance of approximately $93,000 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 months ended March 31, 2025:
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For the Three Months Ended March 31, 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 |
|
|
(97,000 |
) |
|
|
65,000 |
|
|
|
(72,000 |
) |
|
|
(68,000 |
) |
|
|
(172,000 |
) |
Balance, end of period |
|
$ |
941,000 |
|
|
$ |
141,000 |
|
|
$ |
1,858,000 |
|
|
$ |
118,000 |
|
|
$ |
3,058,000 |
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| 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 March 31, 2026 and December 31, 2025:
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|
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|
March 31, 2026 |
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|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
Prior |
|
|
Total |
|
Governmental Issuer Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
109,757,835 |
|
|
$ |
- |
|
|
$ |
109,757,835 |
|
Watch |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Subtotal |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
109,757,835 |
|
|
|
- |
|
|
|
109,757,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
- |
|
|
$ |
43,139,093 |
|
|
$ |
- |
|
|
$ |
50,389,093 |
|
Watch |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming |
|
|
- |
|
|
|
1,808,115 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
495,000 |
|
|
|
2,303,115 |
|
Subtotal |
|
|
- |
|
|
|
1,808,115 |
|
|
|
7,250,000 |
|
|
|
- |
|
|
|
43,139,093 |
|
|
|
495,000 |
|
|
|
52,692,208 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total |
|
$ |
- |
|
|
$ |
1,808,115 |
|
|
$ |
7,250,000 |
|
|
$ |
- |
|
|
$ |
196,776,393 |
|
|
$ |
495,000 |
|
|
$ |
206,329,508 |
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|
December 31, 2025 |
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|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
Prior |
|
|
Total |
|
Governmental Issuer Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
109,757,835 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
109,757,835 |
|
Watch |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Subtotal |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
109,757,835 |
|
|
|
- |
|
|
|
- |
|
|
|
109,757,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
- |
|
|
$ |
43,139,094 |
|
|
|
- |
|
|
$ |
- |
|
|
$ |
50,389,094 |
|
Watch |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming |
|
|
1,715,133 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
495,000 |
|
|
|
2,210,133 |
|
Subtotal |
|
|
1,715,133 |
|
|
|
7,250,000 |
|
|
|
- |
|
|
|
43,139,094 |
|
|
|
- |
|
|
|
495,000 |
|
|
|
52,599,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,715,133 |
|
|
$ |
7,250,000 |
|
|
$ |
- |
|
|
$ |
196,776,394 |
|
|
$ |
- |
|
|
$ |
495,000 |
|
|
$ |
206,236,527 |
|
|
| 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 months ended March 31, 2026 and 2025:
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
Balance, beginning of period |
|
$ |
12,875,922 |
|
|
$ |
4,128,849 |
|
Current provision for credit loss (1) |
|
|
(2,086,858 |
) |
|
|
- |
|
Write-offs (1) |
|
|
(6,620,142 |
) |
|
|
- |
|
Recovery of prior credit loss (2) |
|
|
(11,120 |
) |
|
|
(16,967 |
) |
Balance, end of period (3) |
|
$ |
4,157,802 |
|
|
$ |
4,111,882 |
|
(1)During the three months ended March 31, 2026, the Partnership recovered approximately $2.1 million of its previously recognized allowance for credit loss 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, with the remaining allowance associated with the MRBs being written off upon closing of the deed in lieu of foreclosure transactions (Note 8). (2)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. (3)The allowance for credit losses as of March 31, 2026 and 2025 was related to the Live 929 Apartments – 2022A MRB.
|