Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Adoption of FIN 46R requiring consolidation of certain entities (VIEs), leading to significant changes in financial statements and disclosures.
• Increased volume of accounting information due to VIE consolidation.
• Shared resources with America First Apartment Investors, Inc. (APRO), which required accelerated 10K filing and implementation of Sarbanes-Oxley Act Section 404 internal controls assessment.

Mitigation Strategies

• The Registrant is seeking relief pursuant to Rule 12b-25(b) to file the 10-K by the fifteenth calendar day following the prescribed due date.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Significant amount of the Registrant’s accounting and managerial resources were devoted to completing the documentation and assessment of APRO’s internal controls and the completion of APRO’s Form 10-K, as well as the completion of APRO’s Form 10-Q for the first quarter of 2005.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Properties related to our MRB investments in Jackson Manor Apartments and Residency at the Mayer and all our six new GIL investments were awarded both private activity bond cap and LIHTC allocations through state-specific QAPs. Our MRB investment in Meadow Valley received only private activity bond cap allocation but was done in conjunction with commercial property assessed clean energy financing from another lender.

Social Achievements

• Our investment activity in MRBs and GILs directly supports the construction, rehabilitation, and stabilized operation of decent, safe, and sanitary affordable multifamily housing across the United States. Each of the properties securing our MRB and GIL investments is required to maintain a minimum percentage of units set-aside for low-income tenants in accordance with IRC guidelines, and the owners of the properties often agree to exceed the minimum IRC requirements.

Governance Achievements

• Greystone Manager, as the general partner of the Partnership’s general partner, is committed to corporate governance that aligns with the interests of our Unitholders and stakeholders. The Board of Managers of Greystone Manager brings a diverse set of skills and experiences across industries in the public, private and not-for-profit sectors.

Climate Goals & Targets

Environmental Challenges

• The effects of the outbreak and continued spread of the novel coronavirus ("COVID-19"), or an outbreak of another highly infectious or contagious disease, may adversely affect our business activities, financial condition and results of operations.
• Certain materials supply chains and labor needed to construct the properties underlying our investments in unconsolidated entities have been constrained in the current environment, but to date, projects under construction have not experienced any material supply chain disruptions.
• Despite leasing challenges from social distancing measures due to COVID-19, all properties that have completed construction are either stabilized or very near stabilization.

Mitigation Strategies

• We regularly discuss operations and the impacts of COVID-19 with property owners and property management service providers of multifamily properties securing our MRBs.
• We have evaluated the impacts of COVID-19 on its investments in MF Properties, properties related to its GILs, and investments in unconsolidated entities and noted no indications of impairment of such investments.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• adverse developments or conditions resulting from or associated with climate change

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Suites on Paseo MF Property is LEED Silver Certified and has three rooftop solar panel arrays.
• MRB and GIL investments support properties with energy-efficient features (ENERGY STAR appliances, Greenguard Gold certified insulation, low water landscaping), and one project utilizes C-PACE financing for renewable energy.

Social Achievements

• MRB and GIL investments support affordable multifamily housing with units set aside for low-to-moderate income tenants.
• Partnership and Greystone are committed to diversity, equity, and inclusion (DEI).

Governance Achievements

• Greystone Manager's Board of Managers has diverse skills and experiences, and the Audit Committee members are independent.
• A Code of Business Conduct and Ethics is in place for all Greystone personnel providing services to the Partnership.

Climate Goals & Targets

Environmental Challenges

• Rising interest rates increasing cost of funds and potentially impacting borrower ability to make debt service payments.
• Inflation increasing operating expenses for properties and potentially impacting net operating income.
• Potential for economic recession impacting asset valuations and access to debt financing.
• Reinvestment risk from maturities and prepayments of investment assets.
• Geographic concentration of properties.
• Concentration of investments with certain developers and related affiliates.
• Concentration of recourse guaranties.

Mitigation Strategies

• Active management of fixed and variable rate debt financings and interest rate risk through hedging instruments.
• Careful monitoring of property performance and potential support to properties through supplemental loans.
• Diversification of investment portfolio.
• Due diligence and underwriting process for investments.
• Monitoring of leverage ratio.
• Regular review and update of policies governing ethical conduct and responsible behavior.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather impacting construction pace and cost, and potentially impacting demand and operating results for properties.

Opportunities

• C-PACE financing for renewable energy.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Suites on Paseo MF Property is LEED Silver Certified

Social Achievements

• Investments in MRBs and GILs directly support the construction, rehabilitation, and stabilized operation of decent, safe, and sanitary affordable multifamily housing across the United States.

Governance Achievements

• The composition of the Greystone Manager Board of Managers complies with NASDAQ listing rules and SEC rules applicable to the Partnership. All the members of the Audit Committee of Greystone Manager are independent under the applicable SEC and NASDAQ independence requirements, two of whom qualify as “audit committee financial experts.”

Climate Goals & Targets

Environmental Challenges

• Rent payment relief programs still being utilized by some tenants, resulting in slight declines in occupancy and operating results at multifamily properties securing MRBs due to COVID-19.
• Volatility in fixed income markets impacting the value of investment assets, particularly fixed-rate MRBs and taxable MRBs due to interest rate increases and geopolitical conflicts.
• Supply chain constraints for construction materials and labor for market-rate multifamily properties.

Mitigation Strategies

• Potential supplemental property loans to prevent defaults on related MRBs if property operating results significantly decline.
• Interest rate swap agreements and interest rate cap agreements to mitigate exposure to interest rate fluctuations.
• Active monitoring of property performance and risk management strategies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Suites on Paseo MF Property is LEED Silver Certified and has three rooftop solar panel arrays.

Social Achievements

• Debt investments secured by affordable housing properties totaled $1.1 billion of principal and support a total of 12,756 rental units in 16 states.
• Investments support low-income tenants in accordance with IRC guidelines.

Governance Achievements

• Greystone Manager Board of Managers complies with NASDAQ listing rules and SEC rules applicable to the Partnership.
• All members of the Audit Committee of Greystone Manager are independent.

Climate Goals & Targets

Environmental Challenges

• Volatility in fixed income markets impacting investment assets.
• Increases in short-term interest rates increasing interest cost on variable rate debt financing.
• Current inflationary environment increasing operating expenses.
• Potential for economic recession negatively impacting investment asset values.

Mitigation Strategies

• Interest rate swap agreements to mitigate interest rate risk.
• Interest rate cap agreement to mitigate interest rate risk.
• Regular monitoring of interest costs compared to capitalized interest reserves and contingencies.
• Developer completion guarantees and capital contributed by LIHTC equity investors.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Suites on Paseo MF Property is LEED Silver Certified and has three rooftop solar panel arrays.

Social Achievements

• MRB and GIL investments support the construction of affordable multifamily housing; properties maintain a minimum percentage of units set aside for low-income tenants; some borrowers are non-profit entities providing affordable housing and support services.

Governance Achievements

• Greystone Manager Board of Managers brings diverse skills and experiences; Board composition complies with NYSE and SEC rules; a majority of board members meet independence standards; all Audit Committee members are independent; Code of Business Conduct and Ethics is in place and annually affirmed by employees.

Climate Goals & Targets

Environmental Challenges

• Volatility in fixed income markets impacting investment asset values; increases in short-term interest rates increasing interest costs; persistent inflation increasing operating expenses; potential for economic recession impacting asset valuation and financing; occupancy declines at Live 929 Apartments and Bruton Apartments; interest costs exceeding capitalized interest reserves on some properties; supply chain constraints and labor issues.

Mitigation Strategies

• Hedging strategies for interest rate changes; underwriting procedures allowing for C-PACE financing; monitoring of property operations and addressing performance issues; developer reallocation of reserves, deferred fees, or direct cash payments to cover interest costs; developer completion guaranties and LIHTC equity investor capital; supplemental loans to borrowers; Freddie Mac forward purchase commitments for GILs; interest rate swap agreements; interest rate cap agreement.

Supply Chain Management

Responsible Procurement

• Monitoring safety records of contractors; working with sponsors to maximize environmental features in property applications to earn points under state QAPs.

Climate-Related Risks & Opportunities

Opportunities

• C-PACE financing for renewable energy features.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• In 2021, acquired an MRB investment secured by Meadow Valley, a seniors housing facility using C-PACE financing for energy conservation features.
• Work with property sponsors to maximize environmental features in their applications for private activity bond cap and LIHTC allocations, rewarding transit amenities, proximity to public services, and energy efficiency/sustainability.

Social Achievements

• MRB and GIL investments directly support the construction and operation of affordable multifamily housing.
• Properties maintain a minimum percentage of units set-aside for low-income tenants, often exceeding minimum requirements.
• Certain borrowers are non-profit entities providing affordable housing and support services.

Governance Achievements

• Greystone Manager is committed to corporate governance aligning with unitholder and stakeholder interests.
• Regularly reviews and updates policies governing ethical conduct and responsible behavior.
• Maintains a formal compliance policy to investigate ethics or compliance concerns and protect whistleblowers.

Climate Goals & Targets

Environmental Challenges

• Recent inflationary environment may increase operating expenses at properties, reducing net operating results.
• Increasing general and administrative expenses may adversely affect operating results.
• Potential for economic recession could impact valuation of investment assets and limit financing opportunities.
• Recent interest rate increases have caused actual interest costs during construction to exceed original projections.

Mitigation Strategies

• Developed underwriting procedures that allow borrowers to obtain C-PACE financing while meeting security and underwriting requirements.
• Regularly monitor interest costs in comparison to capitalized interest reserves, construction budget contingencies, and equity commitments by property owners.
• Developers have reallocated reserves, deferred fees, or made direct cash payments to address interest rate increases.
• Advanced supplemental loans to borrowers to provide additional capitalized interest reserves.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• In 2021, acquired an MRB investment secured by Meadow Valley, a to-be-constructed 174-bed seniors housing facility in Traverse City, MI. Part of the construction financing is provided through a C-PACE program, which is a state policy-enabled financing mechanism that allows developers to access the capital needed to make renewable energy accessible and cost-effective.
• Developed underwriting procedures that allow for the borrower to obtain C-PACE financing and still meet our security and underwriting requirements.

Social Achievements

• MRB and GIL investments directly support the construction, rehabilitation, and stabilized operation of decent, safe, and sanitary affordable multifamily housing across the United States.
• Greystone has implemented evaluation and compensation policies designed to attract, retain, and motivate employees that provide services to the Partnership to achieve superior results.
• Greystone also provides formal and informal training programs to enhance the skills of employees providing services to the Partnership and to instill Greystone’s corporate policies and practices.

Governance Achievements

• Greystone Manager, as the general partner of the Partnership’s general partner, is committed to corporate governance that aligns with the interests of our Unitholders and stakeholders.
• Regularly review and update, as appropriate, our policies governing ethical conduct and responsible behavior in order to support our sustainable and continued success.
• Maintain a formal compliance policy to investigate ethics or compliance concerns and to protect whistleblowers.

Climate Goals & Targets

Environmental Challenges

• Recent volatility in market interest rates, recent inflation and the potential for an economic recession may negatively impact the potential prices we could realize upon the disposition of our various assets.
• The pace of recent interest rate increases has caused actual interest costs during construction to exceed original projections.
• Several of California’s largest property insurance providers have recently paused or severely limited their issuance of new policies, or their renewal of existing policies, in the state, which could increase the Partnership’s risk of loss in its MRB portfolio.

Mitigation Strategies

• Actively manage our portfolio of fixed and variable rate debt financings and our exposure to changes in market interest rates.
• Developers have either reallocated other available reserves and contingencies, deferred its developer fees, or made direct cash payments during construction.
• Carefully monitor the on-going performance of the properties underlying these investments.

Supply Chain Management

Climate-Related Risks & Opportunities