v2.4.0.8
Document and Entity Information
3 Months Ended
Mar. 31, 2014
Entity Registrant Name AMERICA FIRST MULTIFAMILY INVESTORS, L.P.
Entity Central Index Key 0001059142
Current Fiscal Year End Date --12-31
Entity Filer Category Accelerated Filer
Document Type 10-Q
Document Period End Date Mar. 31, 2014
Document Fiscal Year Focus 2014
Document Fiscal Period Focus Q1
Amendment Flag false
Entity Common Stock, Units Outstanding 0
v2.4.0.8
Condensed Consolidated Balance Sheets (USD $)
Mar. 31, 2014
Dec. 31, 2013
Assets [Abstract]    
Cash and cash equivalents $ 46,698,901 $ 11,318,015
Restricted cash 4,131,477 6,845,543
Interest receivable 11,549,123 9,536,515
Mortgage revenue bonds held in trust, at fair value 232,276,390 216,371,801
Mortgage revenue bonds, at fair value 84,195,337 68,946,370
Public housing capital fund trusts, at fair value 62,070,540 62,056,379
Available-for-sale Securities, Fair Value Disclosure, Mortgage-backed Securities 39,922,601 37,845,661
Real estate assets:    
Land and improvements 11,081,992 11,081,992
Buildings and improvements 120,982,988 111,195,695
Real estate assets before accumulated depreciation 132,064,980 122,277,687
Accumulated depreciation (20,368,846) (19,128,753)
Net real estate assets 111,696,134 103,148,934
Other assets 18,342,083 18,163,814
Total assets 610,882,586 534,233,032
Liabilities [Abstract]    
Accounts payable, accrued expenses and other liabilities 6,733,498 5,450,694
Distribution payable 8,295,024 6,446,076
Debt financing 257,511,000 257,274,000
Mortgages payable 64,950,092 57,087,320
Bond Purchase Commitment - Fair Market Value Adjustment 1,362,940 4,852,177
Total Liabilities 338,852,554 331,110,267
Commitments and Contingencies      
Partners' Capital    
General Partner 193,195 16,671
Beneficial Unit Certificate holders 292,416,929 223,573,312
Unallocated deficit of Consolidated VIEs (20,568,667) (20,455,896)
Total Partners' Capital 272,041,457 203,134,087
Noncontrolling interest (11,425) (11,322)
Total Capital 272,030,032 203,122,765
Total Liabilities and Partners' Capital $ 610,882,586 $ 534,233,032
v2.4.0.8
Condensed Consolidated Statements of Operations (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Revenues [Abstract]    
Property revenues $ 3,951,216 $ 3,732,807
Investment income 6,205,558 7,716,617
Interest Income, Operating 208,823 1,244,985
Gain on sale of bonds 2,835,243 0
Other income 0 250,000
Total Revenues 13,200,840 12,944,409
Expenses [Abstract]    
Real estate operating (exclusive of items shown below) 2,100,293 2,057,036
Provision for loan loss 0 238,175
Provision for loss on receivables 0 238,175
Depreciation and amortization 1,613,346 1,581,376
Interest 2,169,549 1,536,273
General and administrative 1,270,926 970,491
Total Expenses 7,154,114 6,383,351
Income (loss) from continuing operations 6,046,726 6,561,058
Income from discontinued operations 0 1,933,019
Net income (loss) 6,046,726 8,494,077
Net income (loss) attributable to noncontrolling interest 103 (172,651)
Net income (loss) - America First Tax Exempt Investors, L.P. 6,046,829 8,321,426
Net income (loss) allocated to:    
General Partner 742,055 511,751
Limited Partners - Unitholders 5,417,545 8,050,634
Unallocated loss of Consolidated VIEs (112,771) (240,959)
Noncontrolling interest $ (103) $ 172,651
Unitholders' interest in net income per unit (basic and diluted):    
Income from continuing operations $ 0.10 $ 0
Income from discontinued operations $ 0.00 $ 0.04
Net income (loss), basic and diluted, per unit $ 0.10 $ 0.19
Distributions declared, per unit $ 0.125 $ 0.125
Weighted average number of units outstanding, basic and diluted 56,919,595 42,772,928
v2.4.0.8
Condensed Consolidated Statements of Operations Parenthetical (USD $)
3 Months Ended
Mar. 31, 2013
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax $ 1,775,527
v2.4.0.8
Condensed Consolidated Statements of Comprehensive Income (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net income (loss) $ 6,046,726 $ 8,494,077
Unrealized Gain (Loss) on Securities 18,041,725 2,800,619
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax (3,489,237)  
Net Income (Loss) Allocated to General Partners 742,055 511,751
Net income (loss) allocated to unitholders 5,417,545 8,050,634
Unallocated loss of Consolidated VIEs (112,771) (240,959)
Net income (loss) attributable to noncontrolling interest 103 (172,651)
Accumulated Other Comprehensive Income (Loss) [Member]
   
Net income (loss) 0 0
Unrealized Gain (Loss) on Securities 18,041,725 2,800,619
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax (3,489,237)  
Net Income (Loss) Allocated to General Partners 957,364 539,757
Net income (loss) allocated to unitholders 26,733,198 10,823,247
Unallocated loss of Consolidated VIEs (112,771) (240,959)
Net income (loss) attributable to noncontrolling interest (103) 172,651
Comprehensive income - America First Tax Exempt Investors, L.P. 27,577,688 11,294,696
Mortgage revenue bonds [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
   
Unrealized Gain (Loss) on Securities (18,041,725) 2,800,619
Commitments [Member]
   
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax (1,400,000)  
Commitments [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
   
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax $ (3,489,237) $ 0
v2.4.0.8
Condensed Consolidated Statements of Partners' Capital (USD $)
Total
USD ($)
General Partner
USD ($)
Number of Units
Beneficial Unit Certificate Holders
USD ($)
Unallocated Deficit of Consolidated VIEs
USD ($)
Noncontrolling Interest
USD ($)
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Ohio Properties [Member]
USD ($)
Ohio Properties [Member]
General Partner
USD ($)
Ohio Properties [Member]
Beneficial Unit Certificate Holders
USD ($)
Ohio Properties [Member]
Noncontrolling Interest
USD ($)
Ohio Properties [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Balance at Dec. 31, 2012                        
Proceeds from Issuance of Common Stock $ 0                      
Deconsolidation of Discontinued Operations               393,401 14,064 1,392,303 (1,012,966) 1,406,367
Distributions paid or accrued (5,400,622) (54,006)   (5,346,616)                   
Net income (loss) 8,494,077 511,751   8,050,634 (240,959) 172,651 0          
Unrealized Gain (Loss) on Securities 2,800,619 28,006   2,772,613 0 0 2,800,619          
Balance at Mar. 31, 2013 190,258,406 69,728   214,252,021 (25,276,767) 1,213,424 11,368,367          
Balance at Dec. 31, 2013 203,122,765 16,671   223,573,312 (20,455,896) (11,322) (20,128,314)          
Partners' Capital Account, Units at Dec. 31, 2013     51,052,928                  
Stock Issued During Period, Shares, New Issues     9,200,000                  
Proceeds from Issuance of Common Stock 51,367,692     51,367,692                
Proceeds from Sale of Available-for-sale Securities (1,743,088) (17,431)   (1,725,657)       (1,743,088)          
Distributions paid or accrued (8,295,025) (763,409)   (7,531,616) 0 0 0          
Net income (loss) 6,046,726 742,055   5,417,545 (112,771) (103) 0          
Unrealized Gain (Loss) on Securities 18,041,725 180,417   17,861,308 0 0 18,041,725          
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax 3,489,237 34,892   3,454,345 0 0 3,489,237          
Balance at Mar. 31, 2014 $ 272,030,032 $ 193,195   $ 292,416,929 $ (20,568,667) $ (11,425) $ (340,440)          
v2.4.0.8
Condensed Consolidated Statements of Cash Flows (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Cash flows from operating activities:      
Net income (loss) $ 6,046,726 $ 8,494,077  
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:      
Depreciation and amortization expense 1,613,346 1,585,605  
Provision for loss on receivables 0 238,175  
Non-cash gain (loss) on derivatives 182,597 104,658  
Bond discount and premium amortization and accretion (62,008) (83,638)  
Gain on sale of bonds (2,835,243) 0  
Gain on the sale of the Ohio Properties 0 (1,775,527)  
Changes in operating assets and liabilities, net of effect of acquisitions      
Increase (decrease) in interest receivable (2,012,608) (2,616,713)  
(Increase) decrease in other assets 1,147,599 (652,147)  
Increase (decrease) in accounts payable and accrued expenses (2,192,953) (2,248,190)  
Net cash provided (used) by operating activities 1,887,456 3,046,300  
Cash flows from investing activities:      
Capital expenditures (6,323,590) (1,645,272)  
Acquisition of tax-exempt mortgage revenue bonds (34,778,800) (38,400,000)  
Proceeds from the sale/redemption of bonds 18,744,294 0  
Acquisition of mortgage-backed securities 0 (18,313,000)  
Purchase of rate derivative (391,500) 0  
Acquisition of partnerships, net of cash acquired 0 4,064,089  
Change in restricted cash - Greens Property sale 0 2,097,691  
Acquisition of mortgage-backed securities 0 (2,557,373)  
Acquisition of taxable bonds 0 804,000  
Decrease in restricted cash (73,820) 137,443  
Proceeds from the sale of discontinued operations 0 16,195,000  
Restricted cash - debt collateral released 2,000,000 644,833  
Principal payments received on taxable bonds 1,778,734 684,763  
Net cash provided (used) by investing activities (19,044,682) (37,895,826)  
Cash flows from financing activities:      
Distributions paid (6,446,077) (5,566,909)  
Principal borrowings on mortgages payable 17,250,000 16,705,000  
Principal borrowing on line of credit 7,976,690 7,500,000  
Proceeds from sale of beneficial unit certificates 51,367,692 0 48,200,000
Principal payments on debt and mortgage financing (17,013,000) (562,486)  
Repayments of Debt (113,919) 0  
Increase (decrease) in liabilities related to restricted cash 73,820 (137,443)  
Debt financing costs 557,094 32,942  
Net cash (used) provided by financing activities 52,538,112 17,905,220  
Net increase (decrease) in cash and cash equivalents 35,380,886 (16,944,306)  
Cash and cash equivalents at beginning of period, including discontinued operations 11,318,015    
Cash and cash equivalents at end of period, including discontinued operations 46,698,901 13,387,194 11,318,015
Cash paid during the period for interest 1,798,217 1,286,483  
Distributions declared but not paid 8,295,025 5,400,622  
Cash borrowed for financing costs 0 115,900  
Capital expenditures financed through payables 3,475,757 2,006,159  
Deconsolidation of the Ohio Properties - noncontrolling interest 0 1,012,966  
Taxable loans receivable - Ohio Properties $ 0 $ 1,236,236  
v2.4.0.8
Condensed Consolidated Statements of Cash Flows Parenthetical Tagging (USD $)
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Dec. 31, 2012
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents $ 0 $ 0 $ 50,882 $ 158,727
v2.4.0.8
Basis of Presentation
3 Months Ended
Mar. 31, 2014
Basis of Presentation [Abstract]  
Basis of Presentation and Significant Accounting Policies [Text Block]
Basis of Presentation

General
 
America First Multifamily Investors, L.P. (the “Partnership”) was formed on April 2, 1998, under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential properties.  The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes.  As a result, most of the income earned by the Partnership is exempt from federal income taxes.  The Partnership may also invest in other types of securities that may or may not be secured by real estate and may make taxable property loans secured by multifamily properties which are financed by mortgage revenue bonds held by the Partnership.  The Partnership generally does not seek to acquire direct interests in real property as long term or permanent investments.  The Partnership may, however, acquire real estate securing its mortgage revenue bonds or taxable mortgage loans through foreclosure in the event of a default.  In addition, the Partnership may acquire interests in multifamily apartment properties (“MF Properties”) in order to position itself for future investments in mortgage revenue bonds issued to finance these properties. The Partnership expects to sell its interest in these MF Properties in connection with the future syndication of low income housing tax credits under Section 42 of the Internal Revenue Code ("LIHTCs") or to a tax-exempt organization and to acquire mortgage revenue bonds on these properties to provide debt financing to the new owners.
 
Our general partner is America First Capital Associates Limited Partnership Two (“AFCA 2” or “General Partner”).  The general partner of AFCA2 is The Burlington Capital Group LLC ("Burlington"). The Partnership has issued Beneficial Unit Certificates (“BUCs”) representing assigned limited partner interests to investors (“unitholders”).  The Partnership will terminate on December 31, 2050, unless terminated earlier under provisions of its Agreement of Limited Partnership.
 
The "Company" refers to the consolidated financial statements reported in this Form 10-Q which include the assets, liabilities, and results of operations of the Partnership, its Consolidated Subsidiaries (defined below) and three entities in which the Partnership does not hold an ownership interest but which own multifamily apartment properties financed with mortgage revenue bonds held by the Partnership and which are treated as variable interest entities ("VIEs") of which the Partnership has been determined to be the primary beneficiary (the “Consolidated VIEs”). The Consolidated Subsidiaries of the Partnership currently consist of:

ATAX TEBS I, LLC, a special purpose entity owned and controlled by the Partnership, created to hold mortgage revenue bonds in order to facilitate the Tax Exempt Bond Securitization (“TEBS”) Financing with Freddie Mac (Note 10).
Nine multifamily apartments ("MF Properties") which are either wholly or majority owned by subsidiaries of the Partnership.

Stand alone financial information of the Partnership reported in this Form 10-Q includes only the assets, liabilities, and results of operations of the Partnership and its Consolidated Subsidiaries (hereafter the “Partnership”) without the Consolidated VIEs.  In the Company’s consolidated financial statements, all transactions and accounts between the Partnership, the Consolidated Subsidiaries and the Consolidated VIEs have been eliminated in consolidation.  The Partnership does not believe that the consolidation of VIEs for reporting under accounting principles generally accepted in the United States of America (“GAAP”) affects the Partnership’s status as a partnership for federal income tax purposes or the status of unitholders as partners of the Partnership, the treatment of the mortgage revenue bonds on the properties owned by Consolidated VIEs as debt, the nature of the interest payments, which it believes to be tax-exempt, received on the mortgage revenue bonds secured by the properties owned by Consolidated VIEs or the manner in which the Partnership’s income is reported to unitholders on IRS Form K-1.

The unallocated deficit of the Consolidated VIEs is primarily comprised of the accumulated historical net losses of the Consolidated VIEs since the applicable consolidation date. The unallocated deficit of the VIEs and the VIEs' net losses subsequent to that date are not allocated to the General Partner and unitholders as such activity is not contemplated by, or addressed in, the Agreement of Limited Partnership.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  The accompanying interim unaudited condensed consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. These condensed consolidated financial statements and notes have been prepared consistently with the 2013 Form 10-K. In the opinion of management, all adjustments (consisting of normal and recurring accruals) necessary to present fairly the financial position as of March 31, 2014, and the results of operations for the interim periods presented have been made. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year.

v2.4.0.8
Partnership Income, Expense and Cash Distributions
3 Months Ended
Mar. 31, 2014
Partnership Income, Expenses and Cash Distributions [Abstract]  
Partnership Income Expenses and Cash Distributions [Text Block]
Partnership Income, Expenses and Cash Distributions
 
The Agreement of Limited Partnership of the Partnership contains provisions for the distribution of Net Interest Income, Net Residual Proceeds and Liquidation Proceeds, for the allocation of income or loss from operations and for the allocation of income and loss arising from a repayment, sale, or liquidation of investments.  Income and losses will be allocated to each unitholder on a periodic basis, as determined by the General Partner, based on the number of BUCs held by each unitholder as of the last day of the period for which such allocation is to be made. Distributions of Net Interest Income and Net Residual Proceeds will be made to each unitholder of record on the last day of each distribution period based on the number of BUCs held by each unitholder as of such date. For purposes of the Agreement of Limited Partnership, cash distributions, if any, received by the Partnership from its indirect interest in MF Properties (Note 7) will be included in the Partnership’s Interest Income and cash distributions received by the Partnership from the sale of such properties will be included in the Partnership Residual Proceeds.

Cash distributions are currently made on a quarterly basis but may be made on a monthly or semiannual basis at the election of AFCA 2.  On each distribution date, Net Interest Income is distributed 99% to the unitholders and 1% to AFCA 2 and Net Residual Proceeds are distributed 100% to unitholders except that Net Interest Income and Net Residual Proceeds representing contingent interest in an amount equal to 0.9% per annum of the principal amount of the mortgage revenue bonds on a cumulative basis (defined as Net Interest Income (Tier 2) and Net Residual Proceeds (Tier 2), respectively) are distributed 75% to the unitholders and 25% to AFCA 2.

v2.4.0.8
Variable Interest Entities
3 Months Ended
Mar. 31, 2014
Variable Interest Entities [Abstract]  
Variable interest entities [Text Block]
Variable Interest Entities

The Partnership invests in mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential apartments.  The Partnership owns 100% of these mortgage revenue bonds and each bond is secured by a first mortgage on the property.  In certain cases, the Partnership has also made taxable property loans to the property owners which are secured by second mortgages on these properties.  Although each multifamily property financed with mortgage revenue bonds held by the Partnership is owned by a separate entity in which the Partnership has no equity ownership interest, the debt financing provided by the Partnership creates a variable interest in these ownership entities that may require the Partnership to report the assets, liabilities, and results of operations of these entities on a consolidated basis under GAAP.   

At March 31, 2014 and December 31, 2013, the Partnership determined that four of the entities financed by mortgage revenue bonds owned by the Partnership were held by VIEs.  These VIEs were Ashley Square, Bent Tree, Cross Creek, and Fairmont Oaks. The Partnership then determined that it is the primary beneficiary of two of these VIEs; Bent Tree and Fairmont Oaks and has continued to consolidate these entities. As of March 31, 2013, a fifth entity, Lake Forest, which is also financed by a mortgage revenue bond owned by the Partnership, was held by a VIE. Effective December 1, 2013, the ownership of Lake Forest became a not-for-profit entity and Lake Forest ceased to be reported as a Consolidated VIE.

The Partnership does not hold an equity interest in these VIEs and, therefore, the assets of the VIEs cannot be used to settle the general commitments of the Partnership and the Partnership is not responsible for the commitments and liabilities of the VIEs.  The primary risks to the Partnership associated with these VIEs relate to the entities ability to meet debt service obligations to the Partnership and the valuation of the underlying multifamily apartment property which serves as bond collateral.

The following is a discussion of the significant judgments and assumptions made by the Partnership in determining the primary beneficiary of the VIE and, therefore, whether the Partnership must consolidate the VIE.

Consolidated VIEs

In determining the primary beneficiary of these VIEs, the Partnership considers the activities of the VIE which most significantly impact the VIEs' economic performance, who has the power to control such activities, the risks which the entities were designed to create, the variability associated with those risks and the interests which absorb such variability.  The Partnership also considers the related party relationship of the entities involved in the VIEs.  At March 31, 2014 and December 31, 2013, the Partnership determined it is the primary beneficiary of the Bent Tree and Fairmont Oaks VIEs. The capital structure of Bent Tree and Fairmont Oaks VIEs consists of senior debt, subordinated debt, and equity capital. The senior debt is in the form of a mortgage revenue bond and accounts for the majority of the VIEs' total capital. As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents. The equity ownership of the consolidated VIEs is ultimately held by corporations which are owned by four individuals, two of which are related parties.  Additionally, each of these properties is managed by an affiliate of the Partnership, America First Properties Management Company, LLC (“Properties Management”) which is an affiliate of Burlington Capital Group, LLC ("Burlington").

Non-Consolidated VIEs

The Company did not consolidate two VIE entities, Ashley Square and Cross Creek as of March 31, 2014 based on its determination of the primary beneficiary of these two VIE entities. As discussed below, while the capital structures of these VIEs resulted in the Partnership holding a majority of the variable interests in these VIEs, the Partnership determined it does not have the power to direct the activities of these VIEs that most significantly impact the VIEs’ economic performance and, as a result, is not the primary beneficiary of these VIEs.
 
Ashley Square –  Ashley Square Housing Cooperative acquired the ownership of the Ashley Square Apartments in December 2008 from Ashley Square LLC through a warranty deed of transfer and an assumption of debt.  This transfer of ownership constituted a reconsideration event as outlined in the consolidation guidance which triggered a re-evaluation of the holders of variable interests to determine the primary beneficiary of the VIE.  The capital structure of the VIE consists of senior debt, subordinated loans and equity capital.  The senior debt is in the form of mortgage revenue bonds that are 100% owned by the Partnership and account for the majority of the VIE’s total capital.  As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents.  The VIE is organized as a housing cooperative and the 99% equity owner of this VIE is The Foundation for Affordable Housing (“FAH”), an unaffiliated Nebraska not-for-profit organization.  Additionally, this property is managed by Properties Management.

Cross Creek –  Cross Creek Apartments Holdings LLC is the owner of the Cross Creek Apartments.  On January 1, 2010, Cross Creek Apartment Holdings LLC entered into a new operating agreement and admitted three new members.  These new members committed approximately $2.2 million of capital payable in three installments including $563,000 on January 1, 2010.  The new operating agreement and admission of new owner members constituted a reconsideration event as outlined in the consolidation guidance which triggered a re-evaluation of the holders of variable interests to determine the primary beneficiary of the VIE.  The capital structure of the VIE consists of senior debt, subordinated loans, and equity capital at risk.  The senior debt is in the form of mortgage revenue bonds that are 100% owned by the Partnership and account for the majority of the VIE’s total capital.  As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents.  The three newly admitted members of this VIE are each unaffiliated with the Partnership and have contributed significant equity capital to the VIE.  These members collectively control a 99% interest in the VIE.  The other 1% member of this VIE is FAH, which is also unaffiliated with the Partnership.  Additionally, this property is managed by Properties Management.

The following table presents information regarding the carrying value and classification of the assets held by the Partnership as of March 31, 2014 which constitute a variable interest in Ashley Square and Cross Creek.
 
Balance Sheet Classification
 
 Carrying Value
 
 Maximum Exposure to Loss
Ashley Square Apartments
 
 
 
 
 
Mortgage Revenue Bond
Bond Investment
 
$
5,406,732

 
$
5,200,000

Taxable Property Loan
Other Asset
 
1,482,000

 
7,131,757

 
 
 
$
6,888,732

 
$
12,331,757

Cross Creek Apartments
 
 
 
 
 
Mortgage Revenue Bond
Bond Investment
 
$
7,927,142

 
$
6,050,941

Taxable Property Loans
Other Asset
 
3,490,615

 
3,490,615

 
 
 
$
11,417,757

 
$
9,541,556



The mortgage revenue bonds are classified on the balance sheet as available for sale investments and are carried at fair value while taxable property loans are presented on the balance sheet as Other assets and are carried at the unpaid principal and interest less any loan loss reserves.  See Note 4 for additional information regarding the mortgage revenue bonds and Note 8 for additional information regarding the taxable property loans.  The maximum exposure to loss for the mortgage revenue bonds is equal to the unpaid principal balance as of March 31, 2014.  The difference between the mortgage revenue bond's carrying value and the maximum exposure to loss is a function of the fair value of the bond.  The difference between the taxable property loan's carrying value and the maximum exposure is the value of loan loss reserves that have been previously recorded against the outstanding taxable property loan balances.

The following tables present the effects of the consolidation of the Consolidated VIEs on the Company’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations.

Condensed Consolidating Balance Sheets as of March 31, 2014 and December 31, 2013:
 
 
 
 Partnership as of March 31, 2014
 
 Consolidated VIEs as of March 31, 2014
 
 Consolidation -Elimination as of March 31, 2014
 
 Total as of March 31, 2014
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
46,664,860

 
$
34,041

 
$

 
$
46,698,901

Restricted cash
 
3,687,282

 
444,195

 

 
4,131,477

Interest receivable
 
16,617,934

 

 
(5,068,811
)
 
11,549,123

Mortgage revenue bonds held in trust, at fair value
 
247,639,148

 

 
(15,362,758
)
 
232,276,390

Mortgage revenue bonds, at fair value
 
84,195,337

 

 

 
84,195,337

Public housing capital fund trusts, at fair value
 
62,070,540

 

 

 
62,070,540

Mortgage-backed securities, at fair value
 
39,922,601

 

 

 
39,922,601

Real estate assets:
 
 
 
 
 
 
 
 
Land and improvements
 
9,245,592

 
1,836,400

 

 
11,081,992

Buildings and improvements
 
100,012,852

 
20,970,136

 

 
120,982,988

Real estate assets before accumulated depreciation
 
109,258,444

 
22,806,536

 

 
132,064,980

Accumulated depreciation
 
(10,403,003
)
 
(9,965,843
)
 

 
(20,368,846
)
Net real estate assets
 
98,855,441

 
12,840,693

 

 
111,696,134

Other assets
 
24,419,708

 
412,541

 
(6,490,166
)
 
18,342,083

Total Assets
 
$
624,072,851

 
$
13,731,470

 
$
(26,921,735
)
 
$
610,882,586

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
6,416,132

 
$
20,829,342

 
$
(20,511,976
)
 
$
6,733,498

Distribution payable
 
8,295,024

 

 

 
8,295,024

Debt financing
 
257,511,000

 

 

 
257,511,000

Mortgages payable
 
64,950,092

 
14,858,000

 
(14,858,000
)
 
64,950,092

Bond purchase commitment - fair market value adjustment
1,362,940

 

 

 
1,362,940

Total Liabilities
 
338,535,188

 
35,687,342

 
(35,369,976
)
 
338,852,554

Partners' Capital
 
 
 
 
 
 
 
 
General Partner
 
193,195

 

 

 
193,195

Beneficial Unit Certificate holders
 
285,355,893

 

 
7,061,036

 
292,416,929

Unallocated deficit of Consolidated VIEs
 

 
(21,955,872
)
 
1,387,205

 
(20,568,667
)
Total Partners' Capital
 
285,549,088

 
(21,955,872
)
 
8,448,241

 
272,041,457

Noncontrolling interest
 
(11,425
)
 

 

 
(11,425
)
Total Capital
 
285,537,663

 
(21,955,872
)
 
8,448,241

 
272,030,032

Total Liabilities and Partners' Capital
 
$
624,072,851

 
$
13,731,470

 
$
(26,921,735
)
 
$
610,882,586

 

 
 
 Partnership as of December 31, 2013
 
 Consolidated VIEs as of December 31, 2013
 
 Consolidation -Elimination as of December 31, 2013
 
 Total as of December 31, 2013
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
11,292,039

 
$
25,976

 
$

 
$
11,318,015

Restricted cash
 
6,344,666

 
500,877

 

 
6,845,543

Interest receivable
 
14,357,065

 

 
(4,820,550
)
 
9,536,515

Mortgage revenue bonds held in trust, at fair value
 
230,885,864

 

 
(14,514,063
)
 
216,371,801

Mortgage revenue bonds, at fair value
 
68,946,370

 

 

 
68,946,370

Public housing capital fund trusts, at fair value
 
62,056,379

 

 

 
62,056,379

Mortgage-backed securities, at fair value
 
37,845,661

 

 

 
37,845,661

Real estate assets:
 
 
 
 
 
 
 
 
Land and improvements
 
9,245,592

 
1,836,400

 

 
11,081,992

Buildings and improvements
 
90,253,256

 
20,942,439

 

 
111,195,695

Real estate assets before accumulated depreciation
 
99,498,848

 
22,778,839

 

 
122,277,687

Accumulated depreciation
 
(9,386,811
)
 
(9,741,942
)
 

 
(19,128,753
)
Net real estate assets
 
90,112,037

 
13,036,897

 

 
103,148,934

Other assets
 
24,413,077

 
456,087

 
(6,705,350
)
 
18,163,814

Total Assets
 
$
546,253,158

 
$
14,019,837

 
$
(26,039,963
)
 
$
534,233,032

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
4,963,653

 
$
20,634,613

 
$
(20,147,572
)
 
$
5,450,694

Distribution payable
 
6,446,076

 

 

 
6,446,076

Debt financing
 
257,274,000

 

 

 
257,274,000

Mortgages payable
 
57,087,320

 
14,897,000

 
(14,897,000
)
 
57,087,320

Bond purchase commitment at fair value
 
4,852,177
 

 

 
4,852,177
Total Liabilities
 
330,623,226

 
35,531,613

 
(35,044,572
)
 
331,110,267

Partners' Capital
 
 
 
 
 
 
 
 
General Partner
 
16,671

 

 

 
16,671

Beneficial Unit Certificate holders
 
215,624,583

 

 
7,948,729

 
223,573,312

Unallocated deficit of Consolidated VIEs
 

 
(21,511,776
)
 
1,055,880

 
(20,455,896
)
Total Partners' Capital
 
215,641,254

 
(21,511,776
)
 
9,004,609

 
203,134,087

Noncontrolling interest
 
(11,322
)
 

 

 
(11,322
)
Total Capital
 
215,629,932

 
(21,511,776
)
 
9,004,609

 
203,122,765

Total Liabilities and Partners' Capital
 
$
546,253,158

 
$
14,019,837

 
$
(26,039,963
)
 
$
534,233,032





Condensed Consolidating Statements of Operations for the three months ended March 31, 2014 and 2013:

 
 Partnership For the Three Months Ended March 31, 2014
 
 Consolidated VIEs For the Three Months Ended March 31, 2014
 
 Consolidation -Elimination For the Three Months Ended March 31, 2014
 
 Total For the Three Months Ended March 31, 2014
Revenues:
 
 
 
 
 
 
 
Property revenues
$
3,150,344

 
$
800,872

 
$

 
$
3,951,216

Investment income
6,438,835

 

 
(233,277
)
 
6,205,558

Gain on mortgage revenue bond redemption
2,835,243

 

 

 
2,835,243

Other interest income
208,823

 

 

 
208,823

Total revenues
12,633,245

 
800,872

 
(233,277
)
 
13,200,840

Expenses:
 
 
 
 
 
 
 
Real estate operating (exclusive of items shown below)
1,650,647

 
449,646

 

 
2,100,293

Depreciation and amortization
1,382,626

 
237,440

 
(6,720
)
 
1,613,346

Interest
2,169,549

 
557,884

 
(557,884
)
 
2,169,549

General and administrative
1,270,926

 

 

 
1,270,926

Total expenses
6,473,748

 
1,244,970

 
(564,604
)
 
7,154,114

Net income (loss)
6,159,497

 
(444,098
)
 
331,327

 
6,046,726

Net loss attributable to noncontrolling interest
(103
)
 

 

 
(103
)
Net income (loss) - America First Multifamily Investors, L. P.
$
6,159,600

 
$
(444,098
)
 
$
331,327

 
$
6,046,829


 
 Partnership For the three months Ended March 31, 2013
 
 Consolidated VIEs For the three months Ended March 31, 2013
 
 Consolidation -Elimination For the three months Ended March 31, 2013
 
 Total For the three months Ended March 31, 2013
Revenues:
 
 
 
 
 
 
 
Property revenues
$
2,519,738

 
$
1,213,069

 
$

 
$
3,732,807

Investment income
8,094,326

 

 
(377,709
)
 
7,716,617

Other interest income
1,244,985

 

 

 
1,244,985

Other income
250,000

 

 

 
250,000

Total revenues
12,109,049

 
1,213,069

 
(377,709
)
 
12,944,409

Expenses:
 
 
 
 
 
 
 
Real estate operating (exclusive of items shown below)
1,323,634

 
733,402

 

 
2,057,036

Provision for loss on receivables
238,175

 

 

 
238,175

Depreciation and amortization
1,238,459

 
353,736

 
(10,819
)
 
1,581,376

Interest
1,536,273

 
819,163

 
(819,163
)
 
1,536,273

General and administrative
970,491

 

 

 
970,491

Total expenses
5,307,032

 
1,906,301

 
(829,982
)
 
6,383,351

Income (loss) from continuing operations
6,802,017

 
(693,232
)
 
452,273

 
6,561,058

Income (loss) from discontinued operations (including gain on sale of MF Properties of $1,775,527 in 2013)
1,933,019

 

 

 
1,933,019

Net income (loss)
8,735,036

 
(693,232
)
 
452,273

 
8,494,077

Net income attributable to noncontrolling interest
172,651

 

 

 
172,651

Net income (loss) - America First Multifamily Investors, L. P.
$
8,562,385

 
$
(693,232
)
 
$
452,273

 
$
8,321,426

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
v2.4.0.8
Investments in Mortgage Revenue Bonds
3 Months Ended
Mar. 31, 2014
Investments in Mortgage Revenue Bonds [Abstract]  
Investments in Debt and Equity Instruments, Cash and Cash Equivalents, Unrealized and Realized Gains (Losses) [Text Block]
Investments in Mortgage Revenue Bonds

The mortgage revenue bonds owned by the Company have been issued to provide construction and/or permanent financing of multifamily residential properties and do not include the mortgage revenue bonds issued with respect to properties owned by Consolidated VIEs at March 31, 2014 and December 31, 2013. Mortgage revenue bonds are either held directly by the Company or are held in trusts created in connection with debt financing transactions (Note 10). The Company had the following investments in mortgage revenue bonds as of dates shown:
 
 
March 31, 2014
Description of Mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
Arbors at Hickory Ridge (2)
 
$
11,574,890

 
$
878,024

 
$

 
$
12,452,914

Ashley Square (1)
 
5,200,000

 
206,732

 

 
5,406,732

Autumn Pines (2)
 
12,158,034

 
670,625

 

 
12,828,659

Avistar at Chase Hill A Bond (2)
 
8,960,000

 

 
(381,248
)
 
8,578,752

Avistar at the Crest A Bond (2)
 
8,759,000

 

 
(372,695
)
 
8,386,305

Avistar at the Oaks (2)
 
8,354,000

 

 
(368,497
)
 
7,985,503

Avistar in 09 (2)
 
7,192,000

 

 
(133,697
)
 
7,058,303

Avistar on the Boulevared A Bond (2)
 
13,760,000

 

 
(101,136
)
 
13,658,864

Avistar on the Hills (2)
 
5,389,000

 
59,570

 

 
5,448,570

Bella Vista (1)
 
6,545,000

 

 
(134,434
)
 
6,410,566

Bridle Ridge (1)
 
7,685,000

 

 
(104,439
)
 
7,580,561

Brookstone (1)
 
7,465,447

 
1,065,045

 

 
8,530,492

Cross Creek (1)
 
6,050,941

 
1,876,201

 

 
7,927,142

Decatur-Angle (2)
 
23,000,000

 


 
(1,201,060
)
 
21,798,940

Greens Property A Bonds (2)
 
8,420,000

 
190,568

 

 
8,610,568

Lake Forest (1)
 
8,970,000

 
388,412

 

 
9,358,412

Ohio Properties A Bonds (1)
 
14,477,000

 
847,175

 

 
15,324,175

Runnymede (1)
 
10,525,000

 
144,403

 

 
10,669,403

Southpark (1)
 
11,898,465

 
2,250,791

 

 
14,149,256

The Suites on Paseo (2)
 
35,750,000

 

 
(3,932
)
 
35,746,068

Woodlynn Village (1)
 
4,426,000

 

 
(59,795
)
 
4,366,205

Mortgage revenue bonds held in trust
 
$
226,559,777

 
$
8,577,546

 
$
(2,860,933
)
 
$
232,276,390

 
 
March 31, 2014
Description of Mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
Avistar at Chase Hill B Bond
 
$
2,005,000

 
$

 
$
(62,235
)
 
$
1,942,765

Avistar at the Crest B Bond
 
1,700,000

 

 
(52,768
)
 
1,647,232

Avistar on the Boulevard B Bond
 
3,216,000

 
17,206

 

 
3,233,206

Copper Gate Apartments
 
5,220,000

 
51,469

 

 
5,271,469

Greens Property B Bond
 
947,277

 
281,519

 

 
1,228,796

Harden Ranch
 
9,300,000

 


 
(173,406
)
 
9,126,594

Ohio Properties B Bonds
 
3,581,140

 
331,108

 

 
3,912,248

Renaissance
 
10,453,800

 
224,349

 

 
10,678,149

The Palms at Premier Park Apartments
 
20,152,000

 
1,043,672

 

 
21,195,672

Tyler Park Apartments
 
8,100,000

 

 
(412,937
)
 
7,687,063

Vantage at Harlingen
 
6,692,000

 
147,023

 

 
6,839,023

Vantage at Judson
 
6,049,000

 
131,324

 

 
6,180,324

Westside Village
 
5,400,000

 

 
(147,204
)
 
5,252,796

Mortgage revenue bonds
 
$
82,816,217

 
$
2,227,670

 
$
(848,550
)
 
$
84,195,337

(1) Bonds owned by ATAX TEBS I, LLC, Note 10
(2) Bond held by Deutsche Bank in a secured financing transaction, Note 10

 
 
December 31, 2013
Description of mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gains
 
Unrealized Loss
 
Estimated Fair Value
Arbors at Hickory Ridge (2)
 
$
11,576,209

 
$
225,690

 
$

 
$
11,801,899

Ashley Square (1)
 
5,212,000

 

 

 
5,212,000

Autumn Pines (2)
 
12,147,873

 

 
(195,355
)
 
11,952,518

Avistar at Chase Hill A Bond (2)
 
8,960,000

 

 
(850,752
)
 
8,109,248

Avistar at the Crest A Bond (2)
 
8,759,000

 

 
(1,298,785
)
 
7,460,215

Avistar at the Oaks (2)
 
8,354,000

 

 
(1,103,115
)
 
7,250,885

Avistar in 09 (2)
 
7,192,000

 

 
(588,254
)
 
6,603,746

Avistar on the Boulevard A Bond (2)
 
13,760,000

 

 
(1,306,512
)
 
12,453,488

Avistar on the Hills (2)
 
5,389,000

 

 
(417,724
)
 
4,971,276

Bella Vista (1)
 
6,545,000

 

 
(473,989
)
 
6,071,011

Bridle Ridge (1)
 
7,715,000

 

 
(452,870
)
 
7,262,130

Brookstone (1)
 
7,463,641

 
841,751

 

 
8,305,392

Cross Creek (1)
 
6,042,297

 
1,480,266

 

 
7,522,563

Greens Property A Bond (2)
 
8,437,501

 

 
(577,426
)
 
7,860,075

Lake Forest (1)
 
8,997,000

 

 
(289,461
)
 
8,707,539

Lost Creek (1)
 
15,883,084

 
1,743,088

 

 
17,626,172

Ohio Properties A Bonds (1)
 
14,498,000

 

 

 
14,498,000

Runnymede (1)
 
10,525,000

 

 
(551,510
)
 
9,973,490

Southpark (1)
 
11,878,885

 
1,018,750

 

 
12,897,635

The Suites on Paseo (2)
 
35,750,000

 

 
(2,502
)
 
35,747,498

Woodlynn Village (1)
 
4,426,000

 

 
(340,979