Greystone Housing Impact Investors (GHI) risk factors, 2026 10-K

Risks Related to our Business and Investments

1. 01We are managed by our General Partner and engage in transactions with related parties100% rewritten
2. 02Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations
3. 03We recently identified a material weakness in our internal controls over financial reporting and determined that our disclosure controls and procedures were not effectivenew
4. 04There are risks related to the construction of properties underlying our investment assets
5. 05Properties related to our investment assets may not be completely insured against damage from natural disasters29% rewritten
6. 10We are managed by our General Partner and engage in transactions with related parties100% rewritten
7. 11We are subject to risks associated with the current interest rate environment, and changes in interest rates may affect our cost of capital and, consequently, our net income and Cash Available for Distribution27% rewritten
8. 12We are subject to risks related to any resurgence in inflation
9. 13Our investment assets are generally illiquid and our valuation estimates are subject to inherent uncertainty
10. 14The market value of our investment assets may be adversely impacted by elevated interest rate levels
11. 15The receipt of contractual interest and principal payments on our debt investments will be affected by the economic results of the secured properties
12. 16The rent restrictions and occupant income limitations imposed on properties securing our MRBs and GILs may limit the revenues of such properties25% rewritten
13. 17There are risks related to the lease-up of newly constructed or renovated properties that may affect our debt investments secured by these properties
14. 18The repayment of principal of our debt investments is principally dependent upon proceeds from the sale or refinancing of the secured properties
15. 19We are subject to various risks associated with our debt investments secured by seniors housing and skilled nursing properties100% rewritten
16. 20There are various risks associated with our JV Equity Investments including, but not limited to, risks normally associated with the ownership of such multifamily real estate, sales or refinancing, third-party property management, and variable interest costs41% rewritten
17. 21forego certain types of available security if we determine that the security is not necessary or is too expensive to obtain in relation to the risks coverednew
18. 22There are various risks associated with our commitments to fund investments on a draw-down or forward basis
19. 23If we acquire ownership of properties securing our investment assets through foreclosure or otherwise, we will be subject to all the risks normally associated with the ownership of such properties67% rewritten
20. 24ability to finance or refinance related debt, if needed. We may also be subject to government regulations, natural disasters, and environmental issues, any of which could have an adverse effect on our financial results, cash flow and our ability to sell the propertiesnew
21. 25Properties related to our MRB investments and JV Equity Investments are geographically concentrated in certain states22% rewritten
22. 26Our investments in certain asset classes may be concentrated with certain developers and related affiliates
23. 27Recourse guaranties related to our GIL investments and property loans are concentrated in certain entities83% rewritten
24. 28There is risk that a third-party developer that has provided guaranties of preferred returns on our Vantage JV Equity Investments may not perform
25. 29There are risks associated with our ownership of MF Propertiesnew
26. 30Our reserves for credit losses are based on estimates and may prove inadequate, which could have a material adverse effect on our financial results
27. 31Several of California’s largest property insurance providers have previously 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
28. 32The properties related to our investment assets may be subject to liability for environmental contamination which could increase the risk of default or loss on our investment77% rewritten
29. 33We are subject to reinvestment risk from maturities and prepayments of our investment assets100% rewritten

Risks Related to Debt Financings and Derivative Instruments

1. 06Our investment strategy involves significant leverage, which could adversely affect our financial condition and results of operations100% rewritten
2. 34Our investment strategy involves significant leverage, which could adversely affect our financial condition and results of operations100% rewritten
3. 35Our access to financing sources, which may not be available on favorable terms, or at all, may be limited, and our lenders and derivative counterparties may require us to post additional collateral which may materially impact our financial condition and results of operations47% rewritten
4. 36There are risks associated with debt financing programs that involve securitization of our investment assets
5. 37Changes in interest rates can adversely affect the cost of the asset securitization financing
6. 38Payments on our residual interests are subordinate to payments on the senior securities and to payment of all trust-related fees
7. 39Termination of an asset securitization financing may occur under certain circumstances and could result in the liquidation of the securitized assets resulting in losses
8. 40An insolvency or receivership of the program sponsor could impair our ability to recover the assets and other collateral pledged in connection with bond securitization financings
9. 41We may be required to post additional collateral if the securitized investment assets and related derivative instruments experience declines in value43% rewritten
10. 42There is risk that we will not meet financial covenants, non-financial covenants and risk retention requirements
11. 43We are subject to various risks associated with our derivative agreements
12. 44If a liquid secondary market does not exist for these derivative instruments, we may be required to maintain a derivative position until exercise or expiration, which could result in losses
13. 45If we elect to terminate our derivative instruments prior to the contractual maturity and the fair value is below zero, then we will be required to advance to our counterparty equal to the negative fair value
14. 46We are subject to various risks associated with our secured line of credit arrangements and mortgage payable27% rewritten

Risks Related to Ownership of Beneficial Unit Certificates and Preferred Units

1. 07The Partnership’s portfolio investment decisions may create CRA strategy risks
2. 47Cash distributions related to BUCs may change at the discretion of the Partnership’s general partner
3. 48A resurgence of inflation may cause the real value of distributions on our BUCs and Preferred Units to decline56% rewritten
4. 49Future issuances of additional BUCs could cause the market value of all outstanding BUCs to decline
5. 50Certain rights of our BUC holders are limited by and subordinate to the rights of the holders of our Preferred Units, and these rights may have a negative effect on the value of the BUCs
6. 51The General Partner has the authority to declare cash distributions related to the Preferred Units
7. 52Holders of Preferred Units may have liability to repay distributions
8. 53We may be required to redeem Preferred Units in the future
9. 54The assets held by the Partnership may not be considered qualified investments under the CRA by the bank regulatory authorities72% rewritten
10. 55Under certain circumstances, investors may not receive CRA credit for their investment in the Preferred Units
11. 56The Preferred Units are subordinated to existing and future debt obligations, and the interests could be diluted by the issuance of additional units, including additional Preferred Units, and by other transactions
12. 57Holders of the Preferred Units may be required to bear the risks of an investment for an indefinite period of time
13. 58Treatment of distributions on our Preferred Units is uncertain
14. 59There is no public market for the Preferred Units, which may prevent an investor from liquidating its investment
15. 60Market interest rates may adversely affect the value of the Preferred Units

Risks Related to Governmental and Regulatory Matters

1. 08Any downgrade, or anticipated downgrade, of U.S. sovereign credit ratings or the credit ratings of the GSEs by the various credit rating agencies may materially adversely affect our business29% rewritten
2. 09Developments related to artificial intelligence could result in reputational or competitive harm, legal liability, and other adverse effects on our business100% rewritten
3. 67We are not registered under the Investment Company Act
4. 68A change in the federal conservatorship of Fannie Mae and Freddie Mac and related efforts, along with any changes in laws and regulations affecting the relationship between Fannie Mae, Freddie Mac, and the U.S. government, may materially adversely affect our business, financial condition and results of operations
5. 69Appropriations risk related to HUD’s Section 8 housing programsnew
6. 70Many aspects of the Partnership’s investment objectives are directly affected by the national and local legal and regulatory environments. Changes in laws, regulations, or the interpretation of regulations could all pose risks to the successful realization of the Partnership’s investment objectives
7. 71We face possible risks associated with the effects of climate change and severe weather
8. 72We are increasingly dependent on information technology, and potential disruption, cyber-attacks, security issues, and expanding social media vehicles present new risks36% rewritten
9. 73The use of, or inability to use, artificial intelligence by us, our property owners, and our unitholders presents risks and challenges that may adversely impact our business and operating results or the business and operating results of our property owners and vendorsnew

Risks Related to Income Taxes

1. 61Income from various investments is subject to taxation80% rewritten
2. 62income taxes. Furthermore, income and gains generated by assets within Greens Hold Co and its subsidiaries are subject to federal, state and local income taxes as the Greens Hold Co is a “C” corporation for income tax purposesnew
3. 63There are limits on the ability of our Unitholders to deduct Partnership losses and expenses allocated to them
4. 64Unitholders may incur tax liability if any of the interest on our MRB or GIL investments is determined to be taxable
5. 65If we are determined to be an association taxable as a corporation, it will have adverse economic consequences for us and our Unitholders
6. 66Certain income may be considered UBTI for certain tax-exempt or tax-deferred owners of BUCs and Preferred Units