v3.26.1
Allowance for Credit Losses - Summary of Changes in Partnership's Allowance for Credit Losses (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Mar. 31, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Financing Receivable, Allowance for Credit Loss [Line Items]          
Balance, beginning of period $ 4,339,115 $ 4,330,134 $ 3,058,000 $ 4,330,134 $ 3,230,000
Current provision for credit losses 412,000   (345,734) [1] (403,019) [2] 173,734 [3]
Recovery of prior credit loss       (22,643) 62,224
Balance, end of period 3,927,115 4,339,115 3,403,734 3,927,115 3,403,734
MRB and taxable MRB investments [Member]          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Balance, beginning of period 4,157,802 12,875,922 4,111,882 12,875,922 4,128,849
Current provision for credit losses 39,419 [4] 2,000,000 8,707,000 [4] 2,047,440 [4] 8,707,000 [4]
Write-offs (39,419)   0 (6,659,560) 0
Recovery of prior credit loss [5] (11,523)   79,191 (22,643) 62,224
Balance, end of period 4,146,279 4,157,802 12,898,073 4,146,279 12,898,073
Governmental Issuer Loans [Member]          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Balance, beginning of period 564,000 609,000 941,000 609,000 1,038,000
Current provision for credit losses (564,000)   (245,000) [1] (609,000) [2] (342,000) [3]
Balance, end of period 0 564,000 696,000 0 696,000
Taxable Governmental Issuer Loans [Member]          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Balance, beginning of period 225,000 244,000 141,000 244,000 76,000
Current provision for credit losses 225,000   71,000 [1] (244,000) [2] 136,000 [3]
Balance, end of period 0 225,000 212,000 0 212,000
Property Loans [Member]          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Balance, beginning of period 3,550,115 3,477,134 1,858,000 3,477,134 1,930,000
Current provision for credit losses 377,000   (607,734) [1] 449,981 [2] 535,734 [3]
Balance, end of period 3,927,115 3,550,115 2,465,734 3,927,115 2,465,734
Unfunded Commitments [Member]          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Balance, beginning of period 0 0 118,000 0 186,000
Current provision for credit losses (0)   (88,000) [1] 0 [2] (156,000) [3]
Balance, end of period $ 0 $ 0 $ 30,000 $ 0 $ 30,000
[1] The current provision for credit losses includes an asset-specific allowance of approximately $624,000 related to the Opportunity South Carolina property loan.
[2] The current provision for credit losses includes an asset-specific allowance of approximately $93,000 related to the Opportunity South Carolina property loan.
[3] The current provision for credit losses includes an asset-specific allowance of approximately $624,000 related to the Opportunity South Carolina property loan.
[4] During the first quarter of 2026, the Partnership recovered approximately $2.0 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). During the three months ended June 30, 2026, the Partnership reduced the recovery amount and increased the amount written off by approximately $39,000 which was due to final settlement of the deed in lieu of foreclosure transactions.

 

During the three and six months ended June 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 the 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.
[5] 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 June 30, 2026 was related to the Live 929 Apartments – 2022A MRB. The allowance for credit losses as of June 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 the Windsor Shores Apartments MRB and taxable MRB.