2015 jun mheg newsletter

MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time.

Volume 8, Issue 2

June 2015

MHEG’s Open House Celebration

Inside this Issue: Recent Highlights

1

CEO Update

2

Region Updates

2, 3

Property Spotlight

4

Recent Events

4

Closed Acquisitions

5

Staff Announcements

5

Annual Golf Outing

6

New Office

7

Upcoming Events

8

In lieu of our annual Nebraska Appreciation Dinner, MHEG hosted an Open House Celebration this past February to show off our new office space. Over 130 guests toured our new location and then joined us for dinner afterwards.

If you were unable to attend the event, please stop by when you have the opportunity. We welcome your visit!

You can view pictures of our office on page 8.

515 N. 162nd Ave., Ste. 202, Omaha, NE 68118

Monthly LIHTC Rates February 2015 70% PV

30%PV

AFR

7.47%

3.22%

2.41%

March 2015 70% PV

30%PV

AFR

7.42%

3.18%

2.19%

April 2015

Upcoming Events July

IFA Board Meeting: Jul. 1st Des Moines, IA - IFA Office OHFA Second Round Applications Due: Jul. 2nd KHRC Board Meeting: Jul. 9th Topeka, KS - KDFA Board Room ADFA Board Meeting: Jul. 16th Little Rock, AR - ADFA Office TDHCA Board Meeting: Jul. 16th / Jul. 30th Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Jul. 23rd Denver, CO - CHFA Board Room OHFA Board of Trustees Meeting: Jul. 29th Oklahoma City, OK - OHFA’s Conference Room

August

September

NIFA Board Meeting: Oct. 16th Lincoln, NE - NIFA Board Room

TDHCA Board Meeting: Sep. 3rd Austin, TX - Capitol Extension Auditorium

CHFA Board Meeting: Oct 22nd Denver, CO - CHFA Board Room

IFA Board Meeting: Sep. 9th Des Moines, IA - IFA Office

SDHDA Annual Housing Conference: Oct. 27th-28th Pierre, SD - Best Western Ramkota RiverCentre

2015 HousingIowa Conference: Sep. 9th-10th Coralville, IA - Coralville Marriott

ADFA Board Meeting: Sep. 17th Little Rock, AR - ADFA Office MHDC Commission Meeting: Sep. 18th Columbia, MO - TBD

IFA Board Meeting: Aug. 5th Des Moines, IA - IFA Office

OHFA Board of Trustees Meeting: Sep. 23rd Oklahoma City, OK - OHFA’s Conference Room

KHRC Board Meeting: Aug. 6th Topeka, KS - KDFA Board Room

CHFA Board Meeting: Sep. 24th Denver, CO - CHFA Board Room

ADFA Board Meeting: Aug. 20th Little Rock, AR - ADFA Office NIFA Board Meeting: Aug. 21st Lincoln, NE - NIFA Board Room 2015 Kansas Housing Conference: Aug. 26th-28th Manhattan, KS - Hilton Garden Inn & Conference Center CHFA Board Meeting: Aug. 27th Denver, CO - CHFA Board Room

AFR

3.21%

2.47%

70% PV

30%PV

AFR

7.44%

3.19%

2.30%

June 2015 70% PV

30%PV

AFR

7.%

3.%

2.%

Portfolio Update Developments

Save the Date!

Units

NASLEF 2015

NASLEF’s 22nd Annual Conference will be held September 16th-18th, 2015, in Kansas City, Missouri.

Visit www.naslef.org for more information.

October

411 12,274

Counties Represented

155

Cities Represented

191

Vacancy Percentage

6.72%*

Debt Coverage Ratio

1.71*

Information current as of 6/30/15 *Average percentage compiled from 3/31/15 figures using stabilized developments only, vacancy percentage is using economic vacancy.

If you would like to receive our newsletter by email, go to our homepage to sign-up. For past issues of MHEG in a Minute check our website under News & Events.

KHRC Board Meeting: Oct. 1st Topeka, KS - KDFA Board Room IFA Board Meeting: Oct. 7th Des Moines, IA - IFA Office ADFA Board Meeting: Oct. 15th Little Rock, AR - ADFA Office TDHCA Board Meeting: Oct. 15th Austin, TX - Capitol Extension Auditorium

30%PV

7.48%

May 2015

KHRC Board Meeting: Sep. 3rd Topeka, KS - KDFA Board Room

SDHDA Housing Tax Credit Workshop: Sep. 9th-10th Sioux Falls, SD - Holiday Inn

70% PV

For any other inquiries about the content of this newsletter, please contact Keely McAleer.

8

Left: Jill Yeutter & Greg Yeutter (Kutak Rock), Dave Proksel (First American Title Insurance Company), Shannon Powers (MHEG), and Kutak Rock staff Margot Wickman, Sara Langan, Patrick Krebs and Asher Ball enjoy visiting during the celebration.

Right: Attendees of the open house also included (sitting left to right) Lisa Burks (Holy Name Housing Corp), Sister Marilyn Ross (Holy Name Housing Corp), Earl Redrick (HUD), Gwen Murrell (Holy Name Housing Corp), Mary Anderson (Holy Name Housing Corp), Jennifer Tidwell (HUD) and Aggie Gutierrez (HUD).

Changing Lives Video Asset Manager & Fall Interns Needed!

MHEG was excited to present our most recent video showcasing the positive effects affordable housing has on its tenants at our June Annual Meeting.

The 5 minute video looks at four individuals and what it means to them to be living in safe, quality affordable housing. To view the video go to our homepage or click here to watch!

MHEG is currently looking to hire an Asset Manager for our Oklahoma City office and two Interns for our Omaha office; one for our Asset Management Department and one for our Underwriting Department.

For more information on these positions, visit our website’s Employment page: www.mheginc.com/about-mheg/employment To apply, email kmcaleer@mheginc.com a copy of your resume and a completed MHEG application (download from our website).

MHEG Closes 400th Acquisition MHEG closed equity on its 400th acquisition, Emerson Estates, LLC, in December 2014, but we celebrated at our Open House Celebration on February 3rd, 2015. This accomplishment comes from the collaboration and partnership of Mesner Development Co, Housing Development Corporation, Horizon Bank and Nebraska Investment Finance Authority.

Located in Hastings, Nebraska, Emerson Estates will provide 18 twobedroom units and 6 three-bedroom units. All units will include an attached garage, storm shelter, a washer/dryer, as well as kitchen appliances. Lawn care, snow removal and trash pickup will be available at no cost to the resident. The development will be designed with Green Standards and all of the units are handicapped adaptable.

Mesner Development’s staff Cliff Mesner, Kathy Mesner, Ashley Solt and Cris Larson celebrate the 400th acquisition closed with John WIechmann (MHEG).

1

Volume 8, Issue 2

Keeping you up to date on MHEG in just a minute’s time.

June 2015

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Greetings Friends!

In early May we once again participated in the Greater Des Moines Partnership’s (the Partnership) annual Des Moines to Washington DC trip. John Wiechmann and I attended on behalf of MHEG. Chris Hensley, City Council Member for Des Moines and one of our Board of Directors attended as well. The Partnership is an economic and community development organization that represents Central Iowa with one voice for the region. This year was the Partnership’s 36th annual trip. Typically nearly 200 business and community leaders from the region participate each year. It is one the largest groups to visit DC each year.

opportunity to meet with members of our delegation and staff to voice support or concerns for the issues that affect us!

The meetings are well attended by not only the Iowa Delegation, but also federal legislators from around the country. It is an excellent

The trip is also a great opportunity to see the sights of our nation’s capital! I highly recommend touring the national monuments.

It’s hard to believe another Annual Meeting has come and gone! We were excited to see so many of our partners at Quarry Oaks for the meeting and Golf Outing. It was a great day to be out on the course – thank you Sister Marilyn for arranging the beautiful weather! During the meeting, we recognized Steve Bodner for his nine years of service on MHEG’s Board of Directors. He provided invaluable leadership, guidance and advice to MHEG over the last decade. The commitment and time Steve and all of our Board members and O&I Committee members make to MHEG and affordable housing is something we truly appreciate. Our sister company, Midwest Housing Development Fund, also recognized Danielle Hill for her 15 years of service to its Board.

Danielle is a wonderful service leader and her contributions will be missed.

elected officials to the properties to meet the residents really demonstrates the value of this program – and we need their support for S1193 and HR1142 – bills which will permanently lock the credit rate at 9%. MHEG stands ready and willing to help with these events. Please reach out to Keely McAleer, our Business Development Officers or me if we can provide assistance.

With Steve’s departure, we welcome Kirk Kellner to the MHEG Board.

Kirk is the Regional President for Wells Fargo’s TriState Region. He’s responsible for overseeing community bank operations, including over 600 team members and 50 banking stores across his region of Nebraska, Kansas and Missouri. In addition to the MHEG Board of Directors, Kirk also serves on the Board or Executive Committee for the Knights of Ak-Sar-Ben, Greater Omaha Chamber of Commerce, Joslyn Art Museum, Omaha Habitat for Humanity and is a Trustee for the University of Nebraska Foundation. Kirk is a great addition to our Board and we look forward to benefitting from the experience and leadership he brings with him.

Have a great 4th of July!

No newsletter update would be complete without mention of the importance of communicating and staying in contact with our Congressional delegations. With Senators and Representatives, it really does come down to “show me, don’t tell me.” While it’s fine to talk about the importance of the Housing Credit program, inviting elected officials to see our developments and meet the residents at events such as ribbon cuttings and open houses is the most effective way to earn their support. Members of Congress will be back home frequently during the summer months. August, in particular, is a good month to host an event, as both chambers are in recess. Getting our

In closing, I would like to thank our Board and Committee members, investors, developers, general partners, property managers, financing partners and government officials. Please let us know if we can assist in anyway with the next round of projects. We look forward to partnering with you to change even more lives for a better tomorrow.

Northwest Region Update Jen Oscarson

It has been a busy few months for the Northwest region. Nebraska announced both cycles of tax credit awards and we look forward to continued partnerships and successes for the residents these new homes will provide.

In Colorado, the construction has begun on 45 units of housing in the Town of Breckenridge, Colorado. This mountain community has more than doubled in permanent population over the last decade. Prior to these units of housing there were only 19 units of affordable rental units in the whole community resulting in resort workers and families doubling and tripling up in housing units. These units will provide residents with a much needed quality affordable housing option.

MHEG’s first partnership in Minnesota will commence construction later this summer. Minnesota has just closed its first round of applications for 2016 tax credits. MHEG has been at the table and provided a record number of application letters and will know outcomes in late October. The day before applications were due the Minnesota legislature announced an additional $10 million in Housing Infrastructure Bonds (HIB). These HIB dollars along with other resources have proven to be a beneficial resource to reaching extremely low area median incomes contributing to a 10 percent decrease in homelessness to date compared to January 2014.

South Dakota is ramping up with applications due in August. Our latest development is now in lease up and we couldn’t be happier for the residents of these dignified units for those with varying degrees of needs and services.

Above: Dick Schenck (left) and John Wiechmann (right) present Steve Bodner an award for his years of service to MHEG’s Board of Directors at the June Annual Meeting.

Central Region Update Pat Michaelis The Kansas Housing Conference is in Manhattan this year, August 26th through the 28th. In conjunction with the conference, the Kansas Housing Association (KHA) is hosting a golf tournament on Tuesday the 25th, followed by dinner and socializing at Colbert Hills Golf Club. Wednesday morning, KHA will have an informative program and annual meeting at the Hilton Garden Inn. Wednesday evening after the conference reception, KHA has hired a band and is inviting all conference attendees. Be sure to attend. Watch for more details to come with the conference materials.

In April, John Wiechmann and I joined several other KHA members on a trip to Washington DC to meet with the Kansas congressional delegation including Senators Roberts and Moran, and Representatives Jenkins, Yoder and Huelskamp. Our goal is to keep them informed of the importance of the Affordable Housing program and the good it has for the citizens of Kansas. I personally want to thank them for their time, understanding and support. Historically, the LIHTC program has been supported by both political parties.

It is important for Kansas to have a common voice on affordable housing at the state and federal level. If you are not already a member of KHA please consider joining.

While in Washington, as a special treat, my friend John Frieden and I had the honor and privilege of meeting with former Senator Robert Dole, a great statesman, politician and WWII veteran (picture to the left). He is as sharp as ever and keeps a full schedule. At 92 we should all be so fortunate.

Chris, Brooke, Lisa and I appreciate working with you. We believe a rising tide lifts all boats and the fact is we are all in this together. Please let us know how we can be of assistance.

2

This year we were fortunate to have discussions with Senator’s Ernst and Grassley to encourage support for S1193, which will permanently lock the credit percentage at 9%, improving the affordability of the housing we support. We also had the opportunity to visit with Congressman Young regarding support for the LIHTC program. Excellent opportunities to advocate for the LIHTC.

We sincerely thank our partners and investors for making these new homes a reality in the Northwest Region!

South Region Update Andrea Frymire Oklahoma finally has a statewide housing coalition! The Oklahoma Coalition for Affordable Housing hosted its membership kick-off event May 20th. One of the main goals of the Coalition is to bring advocates together as part of a single housing movement and to empower people and organizations to inform their policymakers that everyone should have the opportunity to live in a safe, affordable home. The urgent need for a statewide affordable housing coalition became apparent in 2013 and 2014 when many in the industry worked on legislation that would eventually be known as the Oklahoma Affordable Housing Act. The Act was open to being cut during the 2015 legislative session.

During the event, a diverse panel discussed the many housing issues facing Oklahomans and how the definition of affordable housing includes homeless individuals, youth aging out of foster care, low wage earners, and working families earning average incomes who get priced out of the market due to housing shortages in their area.

The panel consisted of: Scott Nixon (Sugar Creek Capital), Patrick Raglow (Catholic Charities), Greg Shinn (Mental Health Association of Oklahoma), Rachel Dorsett (Oklahoma Department of Human Services), Brent Kisling (Enid Regional Development Alliance), Lance Windel (LW Development), and David Puckett (Integra Realty Resources). It was encouraging to see such a large and diverse group come together.

Our goal is to have a broad-based group to make effective change throughout the state.

This event was made possible by the generous support of Kim Kuhle with Bank of the West, Sugar Creek Capital and Midwest Housing Equity Group.

The Coalition will hold its second meeting in the fall. Committees are being formed now. For more information on the Coalition or to join, visit www.affordablehousingcoalition.org.

Left: The Oklahoma Coalition for Affordable Housing’s membership kick-off event.

Hosted at the Will Rogers Theatre in Oklahoma City. More than 125 attendees registered for the event.

3

Volume 8, Issue 2

Keeping you up to date on MHEG in just a minute’s time.

June 2015

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Greetings Friends!

In early May we once again participated in the Greater Des Moines Partnership’s (the Partnership) annual Des Moines to Washington DC trip. John Wiechmann and I attended on behalf of MHEG. Chris Hensley, City Council Member for Des Moines and one of our Board of Directors attended as well. The Partnership is an economic and community development organization that represents Central Iowa with one voice for the region. This year was the Partnership’s 36th annual trip. Typically nearly 200 business and community leaders from the region participate each year. It is one the largest groups to visit DC each year.

opportunity to meet with members of our delegation and staff to voice support or concerns for the issues that affect us!

The meetings are well attended by not only the Iowa Delegation, but also federal legislators from around the country. It is an excellent

The trip is also a great opportunity to see the sights of our nation’s capital! I highly recommend touring the national monuments.

It’s hard to believe another Annual Meeting has come and gone! We were excited to see so many of our partners at Quarry Oaks for the meeting and Golf Outing. It was a great day to be out on the course – thank you Sister Marilyn for arranging the beautiful weather! During the meeting, we recognized Steve Bodner for his nine years of service on MHEG’s Board of Directors. He provided invaluable leadership, guidance and advice to MHEG over the last decade. The commitment and time Steve and all of our Board members and O&I Committee members make to MHEG and affordable housing is something we truly appreciate. Our sister company, Midwest Housing Development Fund, also recognized Danielle Hill for her 15 years of service to its Board.

Danielle is a wonderful service leader and her contributions will be missed.

elected officials to the properties to meet the residents really demonstrates the value of this program – and we need their support for S1193 and HR1142 – bills which will permanently lock the credit rate at 9%. MHEG stands ready and willing to help with these events. Please reach out to Keely McAleer, our Business Development Officers or me if we can provide assistance.

With Steve’s departure, we welcome Kirk Kellner to the MHEG Board.

Kirk is the Regional President for Wells Fargo’s TriState Region. He’s responsible for overseeing community bank operations, including over 600 team members and 50 banking stores across his region of Nebraska, Kansas and Missouri. In addition to the MHEG Board of Directors, Kirk also serves on the Board or Executive Committee for the Knights of Ak-Sar-Ben, Greater Omaha Chamber of Commerce, Joslyn Art Museum, Omaha Habitat for Humanity and is a Trustee for the University of Nebraska Foundation. Kirk is a great addition to our Board and we look forward to benefitting from the experience and leadership he brings with him.

Have a great 4th of July!

No newsletter update would be complete without mention of the importance of communicating and staying in contact with our Congressional delegations. With Senators and Representatives, it really does come down to “show me, don’t tell me.” While it’s fine to talk about the importance of the Housing Credit program, inviting elected officials to see our developments and meet the residents at events such as ribbon cuttings and open houses is the most effective way to earn their support. Members of Congress will be back home frequently during the summer months. August, in particular, is a good month to host an event, as both chambers are in recess. Getting our

In closing, I would like to thank our Board and Committee members, investors, developers, general partners, property managers, financing partners and government officials. Please let us know if we can assist in anyway with the next round of projects. We look forward to partnering with you to change even more lives for a better tomorrow.

Northwest Region Update Jen Oscarson

It has been a busy few months for the Northwest region. Nebraska announced both cycles of tax credit awards and we look forward to continued partnerships and successes for the residents these new homes will provide.

In Colorado, the construction has begun on 45 units of housing in the Town of Breckenridge, Colorado. This mountain community has more than doubled in permanent population over the last decade. Prior to these units of housing there were only 19 units of affordable rental units in the whole community resulting in resort workers and families doubling and tripling up in housing units. These units will provide residents with a much needed quality affordable housing option.

MHEG’s first partnership in Minnesota will commence construction later this summer. Minnesota has just closed its first round of applications for 2016 tax credits. MHEG has been at the table and provided a record number of application letters and will know outcomes in late October. The day before applications were due the Minnesota legislature announced an additional $10 million in Housing Infrastructure Bonds (HIB). These HIB dollars along with other resources have proven to be a beneficial resource to reaching extremely low area median incomes contributing to a 10 percent decrease in homelessness to date compared to January 2014.

South Dakota is ramping up with applications due in August. Our latest development is now in lease up and we couldn’t be happier for the residents of these dignified units for those with varying degrees of needs and services.

Above: Dick Schenck (left) and John Wiechmann (right) present Steve Bodner an award for his years of service to MHEG’s Board of Directors at the June Annual Meeting.

Central Region Update Pat Michaelis The Kansas Housing Conference is in Manhattan this year, August 26th through the 28th. In conjunction with the conference, the Kansas Housing Association (KHA) is hosting a golf tournament on Tuesday the 25th, followed by dinner and socializing at Colbert Hills Golf Club. Wednesday morning, KHA will have an informative program and annual meeting at the Hilton Garden Inn. Wednesday evening after the conference reception, KHA has hired a band and is inviting all conference attendees. Be sure to attend. Watch for more details to come with the conference materials.

In April, John Wiechmann and I joined several other KHA members on a trip to Washington DC to meet with the Kansas congressional delegation including Senators Roberts and Moran, and Representatives Jenkins, Yoder and Huelskamp. Our goal is to keep them informed of the importance of the Affordable Housing program and the good it has for the citizens of Kansas. I personally want to thank them for their time, understanding and support. Historically, the LIHTC program has been supported by both political parties.

It is important for Kansas to have a common voice on affordable housing at the state and federal level. If you are not already a member of KHA please consider joining.

While in Washington, as a special treat, my friend John Frieden and I had the honor and privilege of meeting with former Senator Robert Dole, a great statesman, politician and WWII veteran (picture to the left). He is as sharp as ever and keeps a full schedule. At 92 we should all be so fortunate.

Chris, Brooke, Lisa and I appreciate working with you. We believe a rising tide lifts all boats and the fact is we are all in this together. Please let us know how we can be of assistance.

2

This year we were fortunate to have discussions with Senator’s Ernst and Grassley to encourage support for S1193, which will permanently lock the credit percentage at 9%, improving the affordability of the housing we support. We also had the opportunity to visit with Congressman Young regarding support for the LIHTC program. Excellent opportunities to advocate for the LIHTC.

We sincerely thank our partners and investors for making these new homes a reality in the Northwest Region!

South Region Update Andrea Frymire Oklahoma finally has a statewide housing coalition! The Oklahoma Coalition for Affordable Housing hosted its membership kick-off event May 20th. One of the main goals of the Coalition is to bring advocates together as part of a single housing movement and to empower people and organizations to inform their policymakers that everyone should have the opportunity to live in a safe, affordable home. The urgent need for a statewide affordable housing coalition became apparent in 2013 and 2014 when many in the industry worked on legislation that would eventually be known as the Oklahoma Affordable Housing Act. The Act was open to being cut during the 2015 legislative session.

During the event, a diverse panel discussed the many housing issues facing Oklahomans and how the definition of affordable housing includes homeless individuals, youth aging out of foster care, low wage earners, and working families earning average incomes who get priced out of the market due to housing shortages in their area.

The panel consisted of: Scott Nixon (Sugar Creek Capital), Patrick Raglow (Catholic Charities), Greg Shinn (Mental Health Association of Oklahoma), Rachel Dorsett (Oklahoma Department of Human Services), Brent Kisling (Enid Regional Development Alliance), Lance Windel (LW Development), and David Puckett (Integra Realty Resources). It was encouraging to see such a large and diverse group come together.

Our goal is to have a broad-based group to make effective change throughout the state.

This event was made possible by the generous support of Kim Kuhle with Bank of the West, Sugar Creek Capital and Midwest Housing Equity Group.

The Coalition will hold its second meeting in the fall. Committees are being formed now. For more information on the Coalition or to join, visit www.affordablehousingcoalition.org.

Left: The Oklahoma Coalition for Affordable Housing’s membership kick-off event.

Hosted at the Will Rogers Theatre in Oklahoma City. More than 125 attendees registered for the event.

3

Volume 8, Issue 2

Keeping you up to date on MHEG in just a minute’s time.

Property Spotlight: Highland West LLLP MHEG closed its first acquisition in Colorado in 2014, and 2015 has seen the closing of an additional two developments. MHEG is excited about the opportunities and new partnerships in this state.

Highland West LLLP Managing Member

Highlands West Development, LLC

Developer

Highland South, Inc.

Property Manager

Highland South, Inc.

In March, Highland South, Inc. hosted a Renovation Celebration for Highland West LLLP, Sammy Ehtisham and two of our Compliance staff were able to attend the event (see pictures below). This development involved the renovation and combining of two existing multifamily properties containing a total of 237 units in the city of Wheatridge, Colorado, a western suburb of Denver.

Built in the 1960’s, Highland West is a 12-story high-rise building. Highland South, constructed in the 1980’s, consists of three, 3-story apartment buildings. Together the buildings received an extensive renovation with most work taking place at Highland West. Improvements were made to both the interior and exterior of the buildings, including the fire alarm and electrical systems, driveways, heating and air conditioning systems and plumbing systems. This was an “in-place” renovation, meaning most tenants were relocated temporarily while their unit was renovated and then returned once the unit was complete.

June 2015

Closed Acquisitions LIHTC DevelopmentS

fund

Rockville Place, L.P.

MHEG 40 Louisburg, Kansas

32

January

Dean Development

Highland West LLLP

MHEG 43 Wheatridge, Colorado

237

January

Highland South, Inc.

Simmons Senior Housing, LP

MHEG 40 Kansas City, Kansas

19

April

ANDA / Zimmer Development Company

Pinewood 2, LLLP

MHEG 42 Breckenridge, Colorado

45

May

Town of Breckenridge Housing Authority

Clary Village, LLC

MHEG 42 McCook, Nebraska

16

May

Mesner Development Co

Interfaith SFKH, LP

MHEG 42 St. Joseph, Missouri

157

May

Missouri Housing Partners

Brookdale Partners, LP

MHEG 42 St. Joseph, Missouri

102

May

Hughes Development Company

Commerce Gardens Apartments, LLC MHEG 42 Hutchinson, Kansas

96

May

Investment Resources Corp

Sycamore Renaissance, LP

MHEG 42 Kansas City, Missouri

179

June

Hughes Development Company

OPG Brookside Partners, LLC

MHEG 42 Borger, Texas

48

June

Overland Property Group

48

June

KWL Properties, LLC

Emerald Village at Hope, LP

city / State

units DATE

MHEG 42 Hope, Arkansas Total Units Closed from January - June

979

Total Units Closed in 2015

979

DEVELOPER

Staff Announcements Brett Helm, Financial Analyst

Groundbreakings, Ribbon Cuttings, Dedications and Events....

1

2

3

Brett was recently hired as a Financial Analyst for our Omaha office. He will be responsible for intake and review of lower tier property financial reporting and supporting the asset management department. Including assistance with due diligence, tracking and interpreting partnership financial statements, monitoring partnership covenant compliance, calculating investment returns, maintaining property data integrity, and preparing quarterly & annual reports, calculating fund performance, providing analysis for investor client requests, and special projects as assigned. Brett recently graduated from Creighton University majoring in Economics and Finance. He also just completed an internship for Smith-Hayes Financial Services. Brett started with MHEG in May 2015.

MHEG would also like to recognize those employees who will be reaching their 5-year, 10-year and 15-year service anniversary date in 2015.

MHEG is proud to have a dedicated and experienced staff.

4

5

Laurie Stephenson, Deputy Director of Compliance 15 years

Chris Imming, Acquisitions Manager 5 years

Keely McAleer, Corp. Communications/HR Administator 10 years

Traci Collins, Acquisitions Manager 5 years

6

1) Jeremy Hinkle, Mark Herpich and Mark Schifferdecker of Girard National Bank along with Pat Michaelis (MHEG) enjoy a Royals baseball game during the FHLBank Management Conference on April 22, 2015.

2) Pat Michaelis attending the ribbon cutting for BSSR, LP in Baxter Springs, Kansas. This adaptive reuse of a historic school building will provide 28 units of affordable housing.

3) Housing Opportunities, inc and Mesner Development Co. celebrate the ribbon cutting for Ark River North (MHEG 40) on June 18, 2015, in Sterling, Kansas. This new development will provide 12 units of affordable rental housing.

4 & 5) MHEG staff Ryan Harris, Cindy Koster, Amanda Bockelman, Nicole Koster, Rachel Wiesner, Ann Burge and Keely McAleer attend the ground breaking for the Salvation Army’s future site of its Renaissance Village a transitional housing project.

Shellie Vandeman, Compliance Specialist 10 years

6) Matt Gillam (Overland Property Group), Michael Snodgrass (Builder’s Development Corp), Brett Johnson (Overland Property Group), Congresswoman Lynn Jenkins, Pat Michaelis (MHEG), John Wiechmann (MHEG), and Doug Smith (Pinegar & Smith) visited with Representative Jenkins during a legislative trip to Washington D.C. on behalf of the Kansas Housing Association in April 2015.

4

5

Volume 8, Issue 2

Keeping you up to date on MHEG in just a minute’s time.

Property Spotlight: Highland West LLLP MHEG closed its first acquisition in Colorado in 2014, and 2015 has seen the closing of an additional two developments. MHEG is excited about the opportunities and new partnerships in this state.

Highland West LLLP Managing Member

Highlands West Development, LLC

Developer

Highland South, Inc.

Property Manager

Highland South, Inc.

In March, Highland South, Inc. hosted a Renovation Celebration for Highland West LLLP, Sammy Ehtisham and two of our Compliance staff were able to attend the event (see pictures below). This development involved the renovation and combining of two existing multifamily properties containing a total of 237 units in the city of Wheatridge, Colorado, a western suburb of Denver.

Built in the 1960’s, Highland West is a 12-story high-rise building. Highland South, constructed in the 1980’s, consists of three, 3-story apartment buildings. Together the buildings received an extensive renovation with most work taking place at Highland West. Improvements were made to both the interior and exterior of the buildings, including the fire alarm and electrical systems, driveways, heating and air conditioning systems and plumbing systems. This was an “in-place” renovation, meaning most tenants were relocated temporarily while their unit was renovated and then returned once the unit was complete.

June 2015

Closed Acquisitions LIHTC DevelopmentS

fund

Rockville Place, L.P.

MHEG 40 Louisburg, Kansas

32

January

Dean Development

Highland West LLLP

MHEG 43 Wheatridge, Colorado

237

January

Highland South, Inc.

Simmons Senior Housing, LP

MHEG 40 Kansas City, Kansas

19

April

ANDA / Zimmer Development Company

Pinewood 2, LLLP

MHEG 42 Breckenridge, Colorado

45

May

Town of Breckenridge Housing Authority

Clary Village, LLC

MHEG 42 McCook, Nebraska

16

May

Mesner Development Co

Interfaith SFKH, LP

MHEG 42 St. Joseph, Missouri

157

May

Missouri Housing Partners

Brookdale Partners, LP

MHEG 42 St. Joseph, Missouri

102

May

Hughes Development Company

Commerce Gardens Apartments, LLC MHEG 42 Hutchinson, Kansas

96

May

Investment Resources Corp

Sycamore Renaissance, LP

MHEG 42 Kansas City, Missouri

179

June

Hughes Development Company

OPG Brookside Partners, LLC

MHEG 42 Borger, Texas

48

June

Overland Property Group

48

June

KWL Properties, LLC

Emerald Village at Hope, LP

city / State

units DATE

MHEG 42 Hope, Arkansas Total Units Closed from January - June

979

Total Units Closed in 2015

979

DEVELOPER

Staff Announcements Brett Helt, Financial Analyst

Groundbreakings, Ribbon Cuttings, Dedications and Events....

1

2

3

Brett was recently hired as a Financial Analyst for our Omaha office. He will be responsible for intake and review of lower tier property financial reporting and supporting the asset management department. Including assistance with due diligence, tracking and interpreting partnership financial statements, monitoring partnership covenant compliance, calculating investment returns, maintaining property data integrity, and preparing quarterly & annual reports, calculating fund performance, providing analysis for investor client requests, and special projects as assigned. Brett recently graduated from Creighton University majoring in Economics and Finance. He also just completed an internship for Smith-Hayes Financial Services. Brett started with MHEG in May 2015.

MHEG would also like to recognize those employees who will be reaching their 5-year, 10-year and 15-year service anniversary date in 2015.

MHEG is proud to have a dedicated and experienced staff.

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5

Laurie Stephenson, Deputy Director of Compliance 15 years

Chris Imming, Acquisitions Manager 5 years

Keely McAleer, Corp. Communications/HR Administator 10 years

Traci Collins, Acquisitions Manager 5 years

6

1) Jeremy Hinkle, Mark Herpich and Mark Schifferdecker of Girard National Bank along with Pat Michaelis (MHEG) enjoy a Royals baseball game during the FHLBank Management Conference on April 22, 2015.

2) Pat Michaelis attending the ribbon cutting for BSSR, LP in Baxter Springs, Kansas. This adaptive reuse of a historic school building will provide 28 units of affordable housing.

3) Housing Opportunities, inc and Mesner Development Co. celebrate the ribbon cutting for Ark River North (MHEG 40) on June 18, 2015, in Sterling, Kansas. This new development will provide 12 units of affordable rental housing.

4 & 5) MHEG staff Ryan Harris, Cindy Koster, Amanda Bockelman, Nicole Koster, Rachel Wiesner, Ann Burge and Keely McAleer attend the ground breaking for the Salvation Army’s future site of its Renaissance Village a transitional housing project.

Shellie Vandeman, Compliance Specialist 10 years

6) Matt Gillam (Overland Property Group), Michael Snodgrass (Builder’s Development Corp), Brett Johnson (Overland Property Group), Congresswoman Lynn Jenkins, Pat Michaelis (MHEG), John Wiechmann (MHEG), and Doug Smith (Pinegar & Smith) visited with Representative Jenkins during a legislative trip to Washington D.C. on behalf of the Kansas Housing Association in April 2015.

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Volume 8, Issue 2

Keeping you up to date on MHEG in just a minute’s time.

MHEG Annual Meeting & Golf Outing: June 1, 2015

2014 Annual Report

Our 2015 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 1st. It was probably the nicest of weather days we’ve had for the outing. Twenty-seven teams participated in the outing and well over 100 people were in attendance for the meeting and lunch.

MHEG’s 2014 Annual Report “Building Hope” was released in June. This year we’ve decided to go digital and are sending out our report electronically. We saved over 10,000 sheets of paper by decreasing our printing quantity!!

Thank you to all who attended for making the day such a success, we look forward to this outing each year and the fun it brings.

A BIG THANK YOU to our great sponsors!!!!

Horizon Bank - Luncheon Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor Oklahoma Bankers Association - Awards Presentation Sponsor Spectrum Companies - Awards Presentation Sponsor Nebraska Investment Finance Authority - Breakfast & Registration Sponsor and Cart Sponsor Wells Fargo - Refreshments Sponsor BancFirst - Refreshments Sponsor Lloyd Companies - Refreshments Sponsor Seldin Company - Golf Ball Sponsor First American Title Insurance Company - Golf Ball Sponsor Overland Property Group - Golf Ball Sponsor Vintage Construction - Golf Ball Sponsor Mutual of Omaha Bank - Cart Sponsor

June 2015

Click here to view our report, or you can find a link to it on our News & Events page on our website.

Paper copies are still available for those wanting/needing them, just email Keely McAleer to request one.

MHEG’s New Office If you haven’t been able to stop by our new office, below are some great pictures that Erin Giannangelo (Alley Poyner) took of the space. MHEG would like to take this opportunity to thank the many, many organizations that helped with building out our new office. A lot of work was done in a very short amount of time, an amazing group effort by the people listed below. And a BIG thank you to Ann Burge (MHEG’s COO) for orchestrating all the working pieces and turning our vision into a reality, this was no easy task.

1st Place (L-R) Mark Cox (Vintage Construction), Caden Cox, Brian Chamberlin (Andover State Bank)

Hole & Contest Hole Sponsors: Countryside Bank, Excel Development Group, Hatch Development, Herman & Kittle Properties, Home Federal Bank, Horizon Bank, J. Development Company, Kutak Rock, Mesner Development Co, Overland Property Group, Teckmeyer Financial Services, and U.S. Bank

2nd Place

3rd Place

Last Place

(L-R) Scott Fitzpatrick (MHEG), Carolann Jenson (IFA), Tom Hanafan (Pottawattamie County Board Member), Chris Aldinger (Christ the King Services)

(L-R) Terry Wise, Lance Liby and Steve Siler and of FHLBank Topeka

(L-R) Greg Dunlap (Horizon Bank), Fred Hoppe (Hoppe Law Firm), Gregg Yeutter (Kutak Rock), John Wiechmann (MHEG)

Alley Poyner Macchietto Architecture, Inc. Brase Electric Control Masters, Inc.

Electronic Contracting Company Encompas Gary Peterson and NP Dodge

Lutz Technology Meyers Carlisle Leapley Construction Morrissey Engineering

As mentioned in previous years, our annual golf outing is a fun event where all players, the good and the bad, can enjoy the day. Each year we take pictures of the individual teams and a tradition has started to emerge of teams coming up with creative poses to earn themselves a “newsletter worthy” picture. Below are some pictures from the day and a few of the teams that played.

Mark your calendar now for June 6th, 2016, and join the fun!

Left: More senior poses from Steve Skala (Titanium Fire Sprinkler), Scott Thompson (LundRoss Contractors), Jim Royer (J Development) & Joel Dougherty (OneWorld Community Health Center)

The ever popular senior pose is a good way to go. Gemi Ozdemir (DOZ), Brian Andersen (American National Bank), Keely McAleer (MHEG) & Steve Peregrine (Nebraska Housing Resource Left: Jay Dunlap (Union Bank & Trust), Janet Latimer (Horizon Bank), Becky Christoffersen (MHEG) & Dick Schenck (MHEG BOD) show the uniformed cross over leg pose.

Right: Most friendly team went to the Overland Property Group guys, Ryan Zwick, Cole Hesse, Simon Kindel & Kory Glasgow.

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Right: Thanks to MHEG staff Shellie Vandeman, Laurie Stephenson & Shannon Johnson for capturing all team moments.

Left: Dave Hall (Countryside Bank), Ashley Solt (Mesner Development), Rachel Wiesner (MHEG) & Bob Brandt (Countryside Bank) promote the free golf balls handed out during the event.

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Volume 8, Issue 2

Keeping you up to date on MHEG in just a minute’s time.

MHEG Annual Meeting & Golf Outing: June 1, 2015

2014 Annual Report

Our 2015 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 1st. It was probably the nicest of weather days we’ve had for the outing. Twenty-seven teams participated in the outing and well over 100 people were in attendance for the meeting and lunch.

MHEG’s 2014 Annual Report “Building Hope” was released in June. This year we’ve decided to go digital and are sending out our report electronically. We saved over 10,000 sheets of paper by decreasing our printing quantity!!

Thank you to all who attended for making the day such a success, we look forward to this outing each year and the fun it brings.

A BIG THANK YOU to our great sponsors!!!!

Horizon Bank - Luncheon Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor Oklahoma Bankers Association - Awards Presentation Sponsor Spectrum Companies - Awards Presentation Sponsor Nebraska Investment Finance Authority - Breakfast & Registration Sponsor and Cart Sponsor Wells Fargo - Refreshments Sponsor BancFirst - Refreshments Sponsor Lloyd Companies - Refreshments Sponsor Seldin Company - Golf Ball Sponsor First American Title Insurance Company - Golf Ball Sponsor Overland Property Group - Golf Ball Sponsor Vintage Construction - Golf Ball Sponsor Mutual of Omaha Bank - Cart Sponsor

June 2015

Click here to view our report, or you can find a link to it on our News & Events page on our website.

Paper copies are still available for those wanting/needing them, just email Keely McAleer to request one.

MHEG’s New Office If you haven’t been able to stop by our new office, below are some great pictures that Erin Giannangelo (Alley Poyner) took of the space. MHEG would like to take this opportunity to thank the many, many organizations that helped with building out our new office. A lot of work was done in a very short amount of time, an amazing group effort by the people listed below. And a BIG thank you to Ann Burge (MHEG’s COO) for orchestrating all the working pieces and turning our vision into a reality, this was no easy task.

1st Place (L-R) Mark Cox (Vintage Construction), Caden Cox, Brian Chamberlin (Andover State Bank)

Hole & Contest Hole Sponsors: Countryside Bank, Excel Development Group, Hatch Development, Herman & Kittle Properties, Home Federal Bank, Horizon Bank, J. Development Company, Kutak Rock, Mesner Development Co, Overland Property Group, Teckmeyer Financial Services, and U.S. Bank

2nd Place

3rd Place

Last Place

(L-R) Scott Fitzpatrick (MHEG), Carolann Jenson (IFA), Tom Hanafan (Pottawattamie County Board Member), Chris Aldinger (Christ the King Services)

(L-R) Terry Wise, Lance Liby and Steve Siler and of FHLBank Topeka

(L-R) Greg Dunlap (Horizon Bank), Fred Hoppe (Hoppe Law Firm), Gregg Yeutter (Kutak Rock), John Wiechmann (MHEG)

Alley Poyner Macchietto Architecture, Inc. Brase Electric Control Masters, Inc.

Electronic Contracting Company Encompas Gary Peterson and NP Dodge

Lutz Technology Meyers Carlisle Leapley Construction Morrissey Engineering

As mentioned in previous years, our annual golf outing is a fun event where all players, the good and the bad, can enjoy the day. Each year we take pictures of the individual teams and a tradition has started to emerge of teams coming up with creative poses to earn themselves a “newsletter worthy” picture. Below are some pictures from the day and a few of the teams that played.

Mark your calendar now for June 6th, 2016, and join the fun!

Left: More senior poses from Steve Skala (Titanium Fire Sprinkler), Scott Thompson (LundRoss Contractors), Jim Royer (J Development) & Joel Dougherty (OneWorld Community Health Center)

The ever popular senior pose is a good way to go. Gemi Ozdemir (DOZ), Brian Andersen (American National Bank), Keely McAleer (MHEG) & Steve Peregrine (Nebraska Housing Resource Left: Jay Dunlap (Union Bank & Trust), Janet Latimer (Horizon Bank), Becky Christoffersen (MHEG) & Dick Schenck (MHEG BOD) show the uniformed cross over leg pose.

Right: Most friendly team went to the Overland Property Group guys, Ryan Zwick, Cole Hesse, Simon Kindel & Kory Glasgow.

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Right: Thanks to MHEG staff Shellie Vandeman, Laurie Stephenson & Shannon Johnson for capturing all team moments.

Left: Dave Hall (Countryside Bank), Ashley Solt (Mesner Development), Rachel Wiesner (MHEG) & Bob Brandt (Countryside Bank) promote the free golf balls handed out during the event.

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MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time.

Volume 8, Issue 2

June 2015

MHEG’s Open House Celebration

Inside this Issue: Recent Highlights

1

CEO Update

2

Region Updates

2, 3

Property Spotlight

4

Recent Events

4

Closed Acquisitions

5

Staff Announcements

5

Annual Golf Outing

6

New Office

7

Upcoming Events

8

In lieu of our annual Nebraska Appreciation Dinner, MHEG hosted an Open House Celebration this past February to show off our new office space. Over 130 guests toured our new location and then joined us for dinner afterwards.

If you were unable to attend the event, please stop by when you have the opportunity. We welcome your visit!

You can view pictures of our office on page 8.

515 N. 162nd Ave., Ste. 202, Omaha, NE 68118

Monthly LIHTC Rates February 2015 70% PV

30%PV

AFR

7.47%

3.22%

2.41%

March 2015 70% PV

30%PV

AFR

7.42%

3.18%

2.19%

April 2015

Upcoming Events July

IFA Board Meeting: Jul. 1st Des Moines, IA - IFA Office OHFA Second Round Applications Due: Jul. 2nd KHRC Board Meeting: Jul. 9th Topeka, KS - KDFA Board Room ADFA Board Meeting: Jul. 16th Little Rock, AR - ADFA Office TDHCA Board Meeting: Jul. 16th / Jul. 30th Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Jul. 23rd Denver, CO - CHFA Board Room OHFA Board of Trustees Meeting: Jul. 29th Oklahoma City, OK - OHFA’s Conference Room

August

September

NIFA Board Meeting: Oct. 16th Lincoln, NE - NIFA Board Room

TDHCA Board Meeting: Sep. 3rd Austin, TX - Capitol Extension Auditorium

CHFA Board Meeting: Oct 22nd Denver, CO - CHFA Board Room

IFA Board Meeting: Sep. 9th Des Moines, IA - IFA Office

SDHDA Annual Housing Conference: Oct. 27th-28th Pierre, SD - Best Western Ramkota RiverCentre

2015 HousingIowa Conference: Sep. 9th-10th Coralville, IA - Coralville Marriott

ADFA Board Meeting: Sep. 17th Little Rock, AR - ADFA Office MHDC Commission Meeting: Sep. 18th Columbia, MO - TBD

IFA Board Meeting: Aug. 5th Des Moines, IA - IFA Office

OHFA Board of Trustees Meeting: Sep. 23rd Oklahoma City, OK - OHFA’s Conference Room

KHRC Board Meeting: Aug. 6th Topeka, KS - KDFA Board Room

CHFA Board Meeting: Sep. 24th Denver, CO - CHFA Board Room

ADFA Board Meeting: Aug. 20th Little Rock, AR - ADFA Office NIFA Board Meeting: Aug. 21st Lincoln, NE - NIFA Board Room 2015 Kansas Housing Conference: Aug. 26th-28th Manhattan, KS - Hilton Garden Inn & Conference Center CHFA Board Meeting: Aug. 27th Denver, CO - CHFA Board Room

AFR

3.21%

2.47%

70% PV

30%PV

AFR

7.44%

3.19%

2.30%

June 2015 70% PV

30%PV

AFR

7.%

3.%

2.%

Portfolio Update Developments

Save the Date!

Units

NASLEF 2015

NASLEF’s 22nd Annual Conference will be held September 16th-18th, 2015, in Kansas City, Missouri.

Visit www.naslef.org for more information.

October

411 12,274

Counties Represented

155

Cities Represented

191

Vacancy Percentage

6.32%*

Debt Coverage Ratio

1.51*

Information current as of 1/30/15 *Percentage compiled from 9/30/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.

If you would like to receive our newsletter by email, go to our homepage to sign-up. For past issues of MHEG in a Minute check our website under News & Events.

KHRC Board Meeting: Oct. 1st Topeka, KS - KDFA Board Room IFA Board Meeting: Oct. 7th Des Moines, IA - IFA Office ADFA Board Meeting: Oct. 15th Little Rock, AR - ADFA Office TDHCA Board Meeting: Oct. 15th Austin, TX - Capitol Extension Auditorium

30%PV

7.48%

May 2015

KHRC Board Meeting: Sep. 3rd Topeka, KS - KDFA Board Room

SDHDA Housing Tax Credit Workshop: Sep. 9th-10th Sioux Falls, SD - Holiday Inn

70% PV

For any other inquiries about the content of this newsletter, please contact Keely McAleer.

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Left: Jill Yeutter & Greg Yeutter (Kutak Rock), Dave Proksel (First American Title Insurance Company), Shannon Powers (MHEG), and Kutak Rock staff Margot Wickman, Sara Langan, Patrick Krebs and Asher Ball enjoy visiting during the celebration.

Right: Attendees of the open house also included (sitting left to right) Lisa Burks (Holy Name Housing Corp), Sister Marilyn Ross (Holy Name Housing Corp), Earl Redrick (HUD), Gwen Murrell (Holy Name Housing Corp), Mary Anderson (Holy Name Housing Corp), Jennifer Tidwell (HUD) and Aggie Gutierrez (HUD).

Changing Lives Video Asset Manager & Fall Interns Needed!

MHEG was excited to present our most recent video showcasing the positive effects affordable housing has on its tenants at our June Annual Meeting.

The 5 minute video looks at four individuals and what it means to them to be living in safe, quality affordable housing. To view the video go to our homepage or click here to watch!

MHEG is currently looking to hire an Asset Manager for our Oklahoma City office and two Interns for our Omaha office; one for our Asset Management Department and one for our Underwriting Department.

For more information on these positions, visit our website’s Employment page: www.mheginc.com/about-mheg/employment To apply, email kmcaleer@mheginc.com a copy of your resume and a completed MHEG application (download from our website).

MHEG Closes 400th Acquisition MHEG closed equity on its 400th acquisition, Emerson Estates, LLC, in December 2014, but we celebrated at our Open House Celebration on February 3rd, 2015. This accomplishment comes from the collaboration and partnership of Mesner Development Co, Housing Development Corporation, Horizon Bank and Nebraska Investment Finance Authority.

Located in Hastings, Nebraska, Emerson Estates will provide 18 twobedroom units and 6 three-bedroom units. All units will include an attached garage, storm shelter, a washer/dryer, as well as kitchen appliances. Lawn care, snow removal and trash pickup will be available at no cost to the resident. The development will be designed with Green Standards and all of the units are handicapped adaptable.

Mesner Development’s staff Cliff Mesner, Kathy Mesner, Ashley Solt and Cris Larson celebrate the 400th acquisition closed with John WIechmann (MHEG).

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