2014 jan mheg newsletter

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

Volume 7, Issue 1

MHEG Hits $1 Billion in Equity Raised

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

Upcoming Events

6

13520 California St., Ste. 250 Omaha, NE 68154

Monthly LIHTC Rates September 2013 70% PV

30%PV

AFR

7.57%

3.24%

3.28%

October 2013 70% PV

30%PV

AFR

7.63%

3.27%

3.50%

November 2013

Upcoming Events January

NIFA Housing Innovation Marketplace Conference: Jan. 21st-22nd Omaha, NE - Regency Marriott TDHCA Board Meeting: Jan. 23rd Austin, TX - Capitol Extension Auditorium Affordable Housing Tax Credit Coalition Annual Meeting: Jan. 28th-29th Lagune Beach, CA - Surf & Sand Hotel

February

IFA Board Meeting: Feb. 5th Des Moines, IA - IFA Office NH&RA Annual Meeting: Feb. 19th-22nd Palm Beach, FL - Breakers Resort TDHCA Board Meeting: Feb. 20th Austin, TX - Capitol Extension Auditorium NIFA Board Meeting: Feb. 21st Lincoln, NE - NIFA Board Room

70% PV

30%PV

AFR

7.59

3.25%

3.37%

December 2013

IFA Board Meeting: Mar. 12th Des Moines, IA - IFA Office MHDC Commission Meeting: Mar. 14th Columbia, MO

70% PV

30%PV

AFR

7.57%

3.25%

3.32%

January 2014

OHFA Board of Trustees Meeting: Mar. 26th Oklahoma City, OK - Metro Tech - Business Conference Center

January 2014

70% PV

30%PV

AFR

7.60%

3.26%

3.49%

We are excited to announce that MHEG’s first set of regional funds, MHEG Fund 40, LP and MHEG Community Fund 41, LP, have raised over $140 million in equity bringing MHEG’s total amount of equity capital raised since inception to over $1 billion. This is a huge milestone for MHEG and we know it would not have been possible without all of our partners.

“More important than the amount raised is what we’ve been able to do with it,” commented John Wiechmann, President/CEO of MHEG. “That money has helped finance over 10,475 quality affordable residences. We conservatively estimate that at least four families live in a unit during its 15 year compliance period, meaning we’ve been able to and are changing the lives of more than 40,000 families.” Again this would not be possible without our partners, it is your achievement as much as it is ours.

Investors in MHEG Fund 40 included: BancFirst, Capitol Federal Savings Bank, Colorado Federal Savings Bank, Farm Bureau, Fidelity Bank, First Bank & Trust, First National Bank of Omaha, Garmin International, GuideOne Mutual Insurance Company, Mutual of Omaha Bank, Northwestern Mutual Life Insurance Company, Platte Valley Bank, Tri-County Bank and Wells Fargo.

Investors in MHEG Community Fund 41 included: Adams Bank & Trust, American Fidelity Assurance Company, Assurity Life Insurance Company, Citizens State Bank, Commerce Bank, Community State Bank, Equity Bank, Farm & Home Insurance Agency, Inc., Farmers and Merchants Investment, Inc.,Girard National Bank, Great Southern Bank, INTRUST Bank, Iowa State Bank, Lincoln Federal Savings Bank, Morgan Federal Bank, North Central Bancorp, Pinnacle Bank, South Central State Bank, UMB Bank and West Bank.

Kansas Governor Attends Ribbon Cutting

Last month, MHEG was honored to participate in the Ribbon Cutting for City View at St. Margaret’s, along with the Kansas Governor Sam Brownback, Kansas Housing Resources Corporation (KHRC), the Unified Government of Wyandotte County/Kansas City, Kansas and Foutch Brothers, LLC. St. Margaret’s is a historic rehab development in Kansas City, Kansas that will provide over 100 units for persons 55+.

“Dedicated in 1887, the mission of St. Margaret’s Hospital was to help families in the community, so it’s rewarding to see this iconic building, some 126 years later, providing quality housing for people that need it,” said Brownback. “Congratulations Kansas City! The renovation is beautiful!”

For more historic information and pictures of this property, check out our new Property Spotlight section on page 4.

Portfolio Update

April

IFA Board Meeting: Apr. 2nd Des Moines, IA - IFA Office

Developments

TDHCA Board Meeting: Apr. 10th Austin, TX - Capitol Extension Auditorium

Counties Represented

NIFA Board Meeting: Apr. 11th Lincoln, NE - NIFA Board Room

Vacancy Percentage

4.99%*

Debt Coverage Ratio

1.61%*

Units Cities Represented

376 10,475 143 178

Information current as of 1/15/14 *Percentage compiled from 12/31/13 figures using stabilized developments only, vacancy percentage is using economic vacancy.

MHDC Annual Commission Meeting: Apr. 18th Columbia, MO

NCSHA Legislative Conference: March 3rd-5th Washington, D.C - Hyatt Regency Washington on Capitol Hill

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.

NASLEF Asset Management Conference: Mar. 3rd-5th Miami, FL

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

March

6

Participating in the ribbon cutting are (L to R): Commissioner Brian McKiernan(Company), Neighborhood Resident, John Wiechmann (MHEG), Mayor Mark Holland, Govenor Sam Brownback, Steve Foutch (Foutch Brothers), Fred Bentley (KHRC), Pat Michaelis (MHEG), Neighborhood Resident, Dennis Mesa (KHRC) and Neighborhood Resident.

We’re Hiring!

MHEG is currently looking to hire an Asset Manager for our Topeka, Kansas office and a Northwest Regional Vice President - Business Development Officer for our Omaha, Nebraska office. For more information on these positions, visit our Employment section on our website.

To apply, send a copy of your resume and a completed MHEG application (download from our website) to: career@mheginc.com MHEG values it’s employees and offers a comprehensive and competitive benefits package.

1

Volume 7, Issue 1

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

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Happy New Year! It is my sincere hope that 2013 was a success for each of you and that 2014 is off to a strong start! Thanks to our outstanding team here at Midwest Housing, we reached new heights this past year. We raised $180 million in new equity commitments and closed investments in 29 different developments (including our first deals in Texas, Arkansas, Missouri and South Dakota), helping finance over 815 units of quality affordable housing. Since 1993, we’ve raised over $1 billion of equity capital and helped finance more than 10,000 units. What a way to celebrate 20 years of Changing Lives for a Better Tomorrow! Of course, we could never reach these benchmarks without the trust and commitment of each of you. Thank you!

2014 will be another exciting year! We look forward to maintaining our strong presence in Nebraska, Kansas, Iowa and Oklahoma and expanding our impact in Texas, Arkansas, Colorado, South Dakota, Minnesota and Missouri. We will spend the year demonstrating our commitment to excellence to our new and existing investor and developer partners in our entire footprint. It will be a chance to hone the skills and refine the knowledge we gained in 2013, providing ever-better service to you.

Of course, I can’t end without a plea to stay in contact with your

Congressional delegations. While tax reform may not occur in the near term, we must still continue to educate our elected officials on the value of the LIHTC program, ensuring that it is preserved if and when tax reform takes place. We must also push for legislation to permanently lock the credit rate at 9%. I sincerely thank all of our partners who held groundbreakings, ribbon cuttings and open houses over the past years, especially those that included Members of Congress. I can tell you firsthand that these events do make a difference. More than one lawmaker has committed to help protect the LIHTC as a direct result of your events and outreach!

As always, if MHEG can help you plan an open house or ribbon cutting, please let us know. Please also join the A.C.T.I.O.N. coalition (www. rentalhousing.org) to learn what else you can do to protect this vital housing tool.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2013 such a great year! We at MHEG look forward to partnering with all of you again in 2014 to change even more lives for a better tomorrow.

January 2014

Reflecting back on 2013, it always seems to be the case that there is so much to do and so little time to do it in. Fourth quarter was very busy, as always tax credits applications were due amidst working towards several closings. We closed deals with Community Housing Initiatives, Conlin Properties, Overland Property Group and Southwest Minnesota Partnership, including our last development in Iowa Fund VII, L.P. Construction was completed on both the Valley View Apartments in Columbus Junction and West Heights Townhomes in Clinton, which held its ribbon cutting on December 17th.

Looking ahead to 2014, we are anxiously awaiting the tax credit awards from the Iowa Finance Authority in March and the second round of awards from the Minnesota Housing Finance Agency in April. We are pleased to be working with several repeat developers, as well as some new relationships. The return to the floating credit rate did indeed prove to be a challenge for the financial feasibility for some projects this year.

In closing, we would like to extend a big Thank You to Chris Hensley for serving as Iowa’s Interim Executive Vice President this past year. Chris made tremendous contributions in her role and did an outstanding job in working with new investors. THANK YOU Chris!!

Northwest Region Update Cindy Koster

This past year we were fortunate to meet several new friends in South Dakota and Colorado which led to promises of new partnerships. We closed our first deal in South Dakota! Jackson Heights Apartments is located in Aberdeen and the construction is well under way. Once complete, this newly constructed three-story building will provide housing for 41 families.

South Dakota Housing Development Authority (SDHDA) celebrated their 40th year anniversary and had a wonderful housing conference this past November, which was attended by five MHEG members. We enjoyed an evening out with new partners, SDHDA staff and new acquaintances (see picture below). Thank you all for spending time with our team.

In Nebraska, we closed seven deals with existing partners for a total of 148 units in 2013.

Seventy-six units for elderly, ten single family homes and 62 special needs units. As always, it is such a pleasure working with our loyal partners and their associates. Thank you all for allowing MHEG to serve your syndication needs.

In the New Year, we look forward to assisting with the applications and providing housing to individuals in Nebraska, South Dakota and Colorado. We plan to close our first project in Colorado in the first quarter. Details of this great project will be in the next issue.

L to R: Storm Lake Affordable Partners, LLC in Storm Lake, Iowa; Webster Groves, LP in West Plains, Missouri; and Cottage Park, LP in Aurora, Nebraska Above: Kent Paulson (Wells Fargo), Scott Brown (SDHDA),Chris Lenz (Mesner Development Co) and Becky Christoffersen (MHEG) at the SDHDA Conference in November 2013.

Central Region Update Pat Michaelis 2013 was another strong year for MHEG. MHEG Fund 40, L.P. closed seven properties in the Central Region, funded by many repeat investors and new investors Garmin International and Fidelity Bank. Two properties located in Missouri and five located in Kansas. We thank and appreciate all for their partnership!

The Central Region staff again participated in Party with a Purpose during this past holiday season, this event has supported 370 families and 2,278 individuals over the last 15 years. This year we were able to provide for 30 families. MHEG is a proud sponsor of this event, which brings together friends to shop, eat and provide not only presents, but food and basic necessity items such as mattresses, cookware and winter clothing to those in our community. Every year the message comes across to those that participate - it is better to give than to receive.

Looking forward to 2014, I want you to be aware of the formation of the Kansas Housing Association (KHA). This is a challenging time for our industry. At the national level, tax reform and balancing the budget are at the forefront. The Kansas Legislature will be looking at Workforce Housing and possibly State Historical Tax Credits. Our industry needs a strong voice. Officers and Directors of KHA for 2014 are: - Brett Johnson (Overland Property Group), President - Mark Cox (Vintage Construction) , Vice President - Jan Peters, (Great Bend Chamber of Commerce), Treasurer - Dave Sandir (Commercial Group), Secretary

Above: Pat Michaelis and Lisa Bryan (MHEG), along with Connie Michaelis, participate in Party With a Purpose this past December.

2

Looking forward to a year filled with changing lives for a better tomorrow!

South Region Update Andrea Frymire We are excited to announce ground breakings with our first deals in both Arkansas and Texas! In Arkansas, Rolling Hills Estate, a senior duplex development with the Paragould Housing Authority has broken ground (see picture below). This development will provide new construction duplexes for seniors. We are excited to be working with the Paragould Housing Authority on such a beautiful site.

In Texas, we closed The Reserves at Maplewood with Overland

In Oklahoma, we closed three deals in December.

These developments included single family homes in Ardmore and Stilwell and senior housing for Pauls Valley. We have two more closings scheduled for first quarter 2014, both are located in Durant. One will be a single family development and the second will be a historic rehab of a hotel in downtown Durant.

In legislative news, Oklahoma will once again see SB804 at the State Capital. SB804 is a bill to create a state affordable housing tax credit.

Please follow the progress on Facebook, Oklahomans for Affordable Housing Solutions. Or contact me to have your organization added to the list of supporters and find more ways to help. You can also track the bill on the Oklahoma State Legislature website.

- David Dean, (Dean Development), Director - David Rhodes (Clearview City), Director - Pat Michaelis (MHEG), Director

We are currently working on our membership drive, a legislative trip to Washington, and the 1st annual meeting in conjunction with the August Kansas Housing Conference. I encourage you to become involved. All voices need to be heard. Please contact one of us for more information.

As always, Lisa, Chris or I stand ready to assist you. We thank you and appreciate your business. All the best to you in 2014.

Property Group in the fourth quarter. The Reserves is a 36-unit multifamily property for residents at 30%, 50% and 60% income levels.

Above: Andrea Frymire (seventh from the left) attends the groundbreaking for Rolling Hills Estate in Paragould, Arkansas on November 15th, 2013. These new duplexes will provide a total of 32 units for persons 55 and older. This is MHEG’s first development in Arkansas.

Our sincere thanks to all of our partners, old and new, for a successful 2013 and a great start to 2014. We are looking forward to fostering our growth and continued success in the New Year.

3

Volume 7, Issue 1

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

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Happy New Year! It is my sincere hope that 2013 was a success for each of you and that 2014 is off to a strong start! Thanks to our outstanding team here at Midwest Housing, we reached new heights this past year. We raised $180 million in new equity commitments and closed investments in 29 different developments (including our first deals in Texas, Arkansas, Missouri and South Dakota), helping finance over 815 units of quality affordable housing. Since 1993, we’ve raised over $1 billion of equity capital and helped finance more than 10,000 units. What a way to celebrate 20 years of Changing Lives for a Better Tomorrow! Of course, we could never reach these benchmarks without the trust and commitment of each of you. Thank you!

2014 will be another exciting year! We look forward to maintaining our strong presence in Nebraska, Kansas, Iowa and Oklahoma and expanding our impact in Texas, Arkansas, Colorado, South Dakota, Minnesota and Missouri. We will spend the year demonstrating our commitment to excellence to our new and existing investor and developer partners in our entire footprint. It will be a chance to hone the skills and refine the knowledge we gained in 2013, providing ever-better service to you.

near term, we must still continue to educate our elected officials on the value of the LIHTC program, ensuring that it is preserved if and when tax reform takes place. We must also push for legislation to permanently lock the credit rate at 9%. I sincerely thank all of our partners who held groundbreakings, ribbon cuttings and open houses over the past years, especially those that included Members of Congress. I can tell you firsthand that these events do make a difference. More than one lawmaker has committed to help protect the LIHTC as a direct result of your events and outreach!

As always, if MHEG can help you plan an open house or ribbon cutting, please let us know. Please also join the A.C.T.I.O.N. coalition (www. rentalhousing.org) to learn what else you can do to protect this vital housing tool.

Reflecting back on 2013, it always seems to be the case that there is so much to do and so little time to do it in. Fourth quarter was very busy, as always tax credits applications were due amidst working towards several closings. We closed deals with Community Housing Initiatives, Conlin Properties, Overland Property Group and Southwest Minnesota Partnership, including our last development in Iowa Fund VII, L.P.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2013 such a great year! We at MHEG look forward to partnering with all of you again in 2014 to change even more lives for a better tomorrow.

Northwest Region Update

Of course, I can’t end without a plea to stay in contact with your Congressional delegations. While tax reform may not occur in the

Construction was completed on both the Valley View Apartments in Columbus Junction and West Heights Townhomes in Clinton, which held its ribbon cutting on December 17th.

Looking ahead to 2014, we are anxiously awaiting the tax credit awards from the Iowa Finance Authority in March and the second round of awards from the Minnesota Housing Finance Agency in April. We are pleased to be working with several repeat developers, as well as some new relationships. The return to the floating credit rate did indeed prove to be a challenge for the financial feasibility for some projects this year.

In closing, we would like to extend a big Thank You to Chris Hensley for serving as Iowa’s Interim Executive Vice President this past year. Chris made tremendous contributions in her role and did an outstanding job in working with new investors. THANK YOU Chris!!

Cindy Koster

This past year we were fortunate to meet several new friends in South Dakota and Colorado which led to promises of new partnerships. We closed our first deal in South Dakota! Jackson Heights Apartments is located in Aberdeen and the construction is well under way. Once complete, this newly constructed three-story building will provide housing for 41 families.

South Dakota Housing Development Authority (SDHDA) celebrated their 40th year anniversary and had a wonderful housing conference this past November, which was attended by five MHEG members. We enjoyed an evening out with new partners, SDHDA staff and new acquaintances (see picture below). Thank you all for spending time with our team.

Central Region Update Pat Michaelis

In Nebraska, we closed seven deals with existing partners for a total of 148 units in 2013.

Seventy-six units for elderly, ten single family homes and 62 special needs units. As always, it is such a pleasure working with our loyal partners and their associates. Thank you all for allowing MHEG to serve your syndication needs.

2013 was another strong year for MHEG. MHEG Fund 40, L.P. closed seven properties in the Central Region, funded by many repeat investors and new investors Garmin International and Fidelity Bank. Two properties located in Missouri and five located in Kansas. We thank and appreciate all for their partnership!

The Central Region staff again participated in Party with a Purpose during this past holiday season, this event has supported 370 families and 2,278 individuals over the last 15 years. This year we were able to provide for 30 families. MHEG is a proud sponsor of this event, which brings together friends to shop, eat and provide not only presents, but food and basic necessity items such as mattresses, cookware and winter clothing to those in our community. Every year the message comes across to those that participate - it is better to give than to receive.

Looking forward to 2014, I want you to be aware of the formation of the Kansas Housing Association (KHA). This is a challenging time for our industry. At the national level, tax reform and balancing the budget are at the forefront. The Kansas Legislature will be looking at Workforce Housing and possibly State Historical Tax Credits. Our industry needs a strong voice. Officers and Directors of KHA for 2014 are: - Brett Johnson (Overland Property Group), President - Mark Cox (Vintage Construction) , Vice President - Jan Peters, (Great Bend Chamber of Commerce), Treasurer - Dave Sandir (Commercial Group), Secretary

Above: Pat Michaelis and Lisa Bryan (MHEG), along with Connie Michaelis, participate in Party With a Purpose this past December.

- David Dean, (Dean Development), Director - David Rhodes (Clearview City), Director - Pat Michaelis (MHEG), Director

We are currently working on our membership drive, a legislative trip to Washington, and the 1st annual meeting in conjunction with the August Kansas Housing Conference. I encourage you to become involved. All voices need to be heard. Please contact one of us for more information.

In the New Year, we look forward to assisting with the applications and providing housing to individuals in Nebraska, South Dakota and Colorado. We plan to close our first project in Colorado in the first quarter. Details of this great project will be in the next issue.

Above: Kent Paulson (Wells Fargo), Scott Brown (SDHDA),Chris Lenz (Mesner Development Co) and Becky Christoffersen (MHEG) at the SDHDA Conference in November 2013.

Looking forward to a year filled with changing lives for a better tomorrow!

South Region Update Andrea Frymire We are excited to announce ground breakings with our first deals in both Arkansas and Texas! In Arkansas, Rolling Hills Estate, a senior duplex development with the Paragould Housing Authority has broken ground (see picture below). This development will provide new construction duplexes for seniors. We are excited to be working with the Paragould Housing Authority on such a beautiful site.

In Texas, we closed The Reserves at Maplewood with Overland

As always, Lisa, Chris or I stand ready to assist you. We thank you and appreciate your business. All the best to you in 2014.

Property Group in the fourth quarter. The Reserves is a 36-unit multifamily property for residents at 30%, 50% and 60% income levels.

In Oklahoma, we closed three deals in December.

These developments included single family homes in Ardmore and Stilwell and senior housing for Pauls Valley. We have two more closings scheduled for first quarter 2014, both are located in Durant. One will be a single family development and the second will be a historic rehab of a hotel in downtown Durant.

In legislative news, Oklahoma will once again see SB804 at the State Capital. SB804 is a bill to create a state affordable housing tax credit.

Please follow the progress on Facebook, Oklahomans for Affordable Housing Solutions. Or contact me to have your organization added to the list of supporters and find more ways to help. You can also track the bill on the Oklahoma State Legislature website.

Above: Andrea Frymire (seventh from the left) attends the groundbreaking for Rolling Hills Estate in Paragould, Arkansas on November 15th, 2013. These new duplexes will provide a total of 32 units for persons 55 and older. This is MHEG’s first development in Arkansas.

2

January 2014

Our sincere thanks to all of our partners, old and new, for a successful 2013 and a great start to 2014. We are looking forward to fostering our growth and continued success in the New Year.

3

Volume 7, Issue 1

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

Property Spotlight: City View at St. Margaret’s - Kansas City, Kansas In 1886, a respectable man delirious with typhoid fever was picked up in the streets of Wyandotte (as it was then called) and sent to the city jail. There was no other place in which he could be accommodated. Father Anton Kuhls was touched by the story and advocated the community to build a refuge for the sick and poor. St. Margaret’s Hospital was dedicated on November 19, 1887. It was the first hospital in the city, cost $20,000 and could accommodate 50 patients.

St. Margaret’s LIHTC, LP General Partner

St. Margaret’s GP, LLC

Developer

FB Development, LLC

Property Manager FBPM, LLC

In 1954, the old building was demolished and rebuilt into a sprawling hospital complex. The 1910 front east wing was retained but renovated extensively to match the new building.

The Sisters of the Poor of Saint Francis operated the hospital until St. Margaret’s merged with Providence Hospital in 1976. The hospital served and employed many in the community for almost 100 years. St. Joseph Convalescent Home took over the hospital and occupied it until 2001.

The building has remained vacant until now. City View at St. Margaret’s will provide the opportunity for this historic building to again service the community by providing affordable rental housing for senior residents. The development consists of 111 newly renovated units made up of studios and one and two-bedroom apartments. Each modern unit contains a refrigerator, range/ oven, dishwasher, microwave, carpet, tile, hardwood, blinds, ceiling fans and a walk-in closet.

The building offers an elevator, community room, laundry facility, rooftop garden and on-site management. For leasing information contact the Foutch Brothers at #636-633-1733.

January 2014

Closed Acquisitions LIHTC DEVELOPMENTS

FUND

CITY / STATE

Bedford Place, LLC

KF X

Great Bend, Kansas

22

October

Rolling Hills Estates LP

MHEG 40

Paragould, Arkansas

32

October

Jackson Heights Apartments LP

MHEG 40

Aberdeen, South Dakota

41

October

10th Street Townhomes LLLP

MHEG 40

Storm Lake, Iowa

42

November

Heather Estates, LP

MHEG 40

Imperial, Nebraska

10

November

Prairie Trail Partners II, LLC

MHEG 40

Garden City, Kansas

32

November

Mill Farm Partners, LLC

MHEG 40

Pella, Iowa

32

November

Storm Lake Affordable Partners, LLC

IF VII

Storm Lake, Iowa

32

November

Chambrooke Homes of Ardmore LLC

MHEG 40

Ardmore, Oklahoma

40

November

Stilwell Housing Partners II Limited Partnership

MHEG 40

Stilwell, Oklahoma

24

December

Cottage Park, LP

MHEG 40

Aurora, Nebraska

14

December

OPG Maplewood Partners, LLC

MHEG 40

Wichita Falls, Texas

36

December

Legend Oaks II, LLC

MHEG 40

Lexington, Nebraska

18

December

Callyn Heights, LP

MHEG 40

Kirksville, Missouri

25

December

2723 Q Street, LLC

MHEG 40

Omaha, Nebraska

62

December

Webster Groves, LP

MHEG 40

West Plains, Missouri

30

December

Ark River North, LLC

MHEG 40

Sterling, Kansas

12

December

River Road Townhomes, LLC

MHEG 40

Waterloo, Nebraska

14

December

House to Home Riverview/Escalade, LLC

MHEG 40

Kansas City, Kansas

24

December

Apple Ridge Seniors, LP

MHEG 40

Pauls Valley, Oklahoma

20

December

BSSR, LP

MHEG 40

Baxter Springs, Kansas

28

December

Hickory Heights, LLC

MHEG 40

McPherson, Kansas

12

December

CHI Milford, LLLP

MHEG 40

Milford, Iowa

30

December

Hilltop I Limited Partnership

MHEG 40

Des Moines, Iowa

36

December

Total Units Closed

UNITS

DATE

668

Staff Announcements Cindy Wieck, Administrative Assistant

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

Cindy was hired as Administrative Assistant for our Omaha office. She will be responsible for providing secretarial support and administrative services for our CEO and COO, as well as all MHEG staff. Her main duties include covering the front reception area, answering all incoming calls and overseeing office equipment and supplies. Cindy has over 15 years experience in the Administrative Assistant role and previsouly worked for JCPenney as a District Administrative Assistant. She started with MHEG at the beginning of December 2013.

Amanda Bockelman, Asset Management Intern Amanda was recently selected to be an Asset Management Intern in our Omaha office. She will be a valuable asset as she assists the asset management department. She is currently a Senior at the University of Nebraska at Omaha majoring in Finance, Banking and Real Estate. Amanda is from Norfolk, Nebraska. She started with MHEG at the beginning of November 2013.

In addition to recent staff additions, we’re happy to announce the following promotions.

Left Top: Hickory Heights celebrated its groundbreaking on December 17th, 2013, in McPherson, Kansas. Participating in the groundbreaking are (L-R): Mayor Thomas Brown (City of McPherson), Mark Cox (Vintage Construction), Doug Wisby (Multi-Community Diversified Services), Pat Michaelis (MHEG), and Fred Bentley (KHRC).

Above: Over 200 people turned out for the groundbreaking of the Stephen Center’s newest addition to their campus on October 4, 2013 in Omaha, Nebraska. After the ceremony, guests were able to watch the start of the demolition of the old facility to clear the way for the new emergency shelter and permanent supportive housing. Once complete the Stephen Center will be able to provide 61 new affordable housing units.

Left Bottom: Duncan Affordable Housing celebrated its ribbon cutting on December 18th, 2013, in Duncan, Oklahoma.

This development will provide 41 new single family homes for the Duncan community.

4

Rachel Wiesner, Investor Relations Manager - Rachel began transitioning from the Asset Management department to the Investor/Acquisitions department last year. She has fully made that transition. She will continue with her role assisting the Chief Investment Officer with investor reports and communications, but will also assist the Vice President of Acquisitions with underwriting and calculating fees.

Lisa Bryan, Administrative Coordinator - Lisa has continued to grow her duties with assisting not only the Vice President of

the Central Region, but also the Vice President of the South Region as well. She also has taken on additional duties assisting the Chief Investment Officer with investor meetings, documents, tracking communication and contacts.

Keely McAleer, Corp. Communications & HR Administrator - Keely will continue with many of her marketing duties,

but has continued to increase her duties in HR area of the company. Her title was changed to better reflect her responsibilites. She has also taken on supervisory duties, overseeing the Administrative Assistant position in the Omaha office.

5

Volume 7, Issue 1

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

Property Spotlight: City View at St. Margaret’s - Kansas City, Kansas In 1886, a respectable man delirious with typhoid fever was picked up in the streets of Wyandotte (as it was then called) and sent to the city jail. There was no other place in which he could be accommodated. Father Anton Kuhls was touched by the story and advocated the community to build a refuge for the sick and poor. St. Margaret’s Hospital was dedicated on November 19, 1887. It was the first hospital in the city, cost $20,000 and could accommodate 50 patients.

St. Margaret’s LIHTC, LP General Partner

St. Margaret’s GP, LLC

Developer

FB Development, LLC

Property Manager FBPM, LLC

In 1954, the old building was demolished and rebuilt into a sprawling hospital complex. The 1910 front east wing was retained but renovated extensively to match the new building.

The Sisters of the Poor of Saint Francis operated the hospital until St. Margaret’s merged with Providence Hospital in 1976. The hospital served and employed many in the community for almost 100 years. St. Joseph Convalescent Home took over the hospital and occupied it until 2001.

The building has remained vacant until now. City View at St. Margaret’s will provide the opportunity for this historic building to again service the community by providing affordable rental housing for senior residents. The development consists of 111 newly renovated units made up of studios and one and two-bedroom apartments. Each modern unit contains a refrigerator, range/ oven, dishwasher, microwave, carpet, tile, hardwood, blinds, ceiling fans and a walk-in closet.

The building offers an elevator, community room, laundry facility, rooftop garden and on-site management. For leasing information contact the Foutch Brothers at #636-633-1733.

January 2014

Closed Acquisitions LIHTC DEVELOPMENTS

FUND

CITY / STATE

Bedford Place, LLC

KF X

Great Bend, Kansas

22

October

Rolling Hills Estates LP

MHEG 40

Paragould, Arkansas

32

October

Jackson Heights Apartments LP

MHEG 40

Aberdeen, South Dakota

41

October

10th Street Townhomes LLLP

MHEG 40

Storm Lake, Iowa

42

November

Heather Estates, LP

MHEG 40

Imperial, Nebraska

10

November

Prairie Trail Partners II, LLC

MHEG 40

Garden City, Kansas

32

November

Mill Farm Partners, LLC

MHEG 40

Pella, Iowa

32

November

Storm Lake Affordable Partners, LLC

IF VII

Storm Lake, Iowa

32

November

Chambrooke Homes of Ardmore LLC

MHEG 40

Ardmore, Oklahoma

40

November

Stilwell Housing Partners II Limited Partnership

MHEG 40

Stilwell, Oklahoma

24

December

Cottage Park, LP

MHEG 40

Aurora, Nebraska

14

December

OPG Maplewood Partners, LLC

MHEG 40

Wichita Falls, Texas

36

December

Legend Oaks II, LLC

MHEG 40

Lexington, Nebraska

18

December

Callyn Heights, LP

MHEG 40

Kirksville, Missouri

25

December

2723 Q Street, LLC

MHEG 40

Omaha, Nebraska

62

December

Webster Groves, LP

MHEG 40

West Plains, Missouri

30

December

Ark River North, LLC

MHEG 40

Sterling, Kansas

12

December

River Road Townhomes, LLC

MHEG 40

Waterloo, Nebraska

14

December

House to Home Riverview/Escalade, LLC

MHEG 40

Kansas City, Kansas

24

December

Apple Ridge Seniors, LP

MHEG 40

Pauls Valley, Oklahoma

20

December

BSSR, LP

MHEG 40

Baxter Springs, Kansas

28

December

Hickory Heights, LLC

MHEG 40

McPherson, Kansas

12

December

CHI Milford, LLLP

MHEG 40

Milford, Iowa

30

December

Hilltop I Limited Partnership

MHEG 40

Des Moines, Iowa

36

December

Total Units Closed

UNITS

DATE

668

Staff Announcements Cindy Wieck, Administrative Assistant

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

Cindy was hired as Administrative Assistant for our Omaha office. She will be responsible for providing secretarial support and administrative services for our CEO and COO, as well as all MHEG staff. Her main duties include covering the front reception area, answering all incoming calls and overseeing office equipment and supplies. Cindy has over 15 years experience in the Administrative Assistant role and previsouly worked for JCPenney as a District Administrative Assistant. She started with MHEG at the beginning of December 2013.

Amanda Bockelman, Asset Management Intern Amanda was recently selected to be an Asset Management Intern in our Omaha office. She will be a valuable asset as she assists the asset management department. She is currently a Senior at the University of Nebraska at Omaha majoring in Finance, Banking and Real Estate. Amanda is from Norfolk, Nebraska. She started with MHEG at the beginning of November 2013.

In addition to recent staff additions, we’re happy to announce the following promotions.

Left Top: Hickory Heights celebrated its groundbreaking on December 17th, 2013, in McPherson, Kansas. Participating in the groundbreaking are (L-R): Mayor Thomas Brown (City of McPherson), Mark Cox (Vintage Construction), Doug Wisby (Multi-Community Diversified Services), Pat Michaelis (MHEG), and Fred Bentley (KHRC).

Above: Over 200 people turned out for the groundbreaking of the Stephen Center’s newest addition to their campus on October 4, 2013 in Omaha, Nebraska. After the ceremony, guests were able to watch the start of the demolition of the old facility to clear the way for the new emergency shelter and permanent supportive housing. Once complete the Stephen Center will be able to provide 61 new affordable housing units.

Left Bottom: Duncan Affordable Housing celebrated its ribbon cutting on December 18th, 2013, in Duncan, Oklahoma.

This development will provide 41 new single family homes for the Duncan community.

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Rachel Wiesner, Investor Relations Manager - Rachel began transitioning from the Asset Management department to the Investor/Acquisitions department last year. She has fully made that transition. She will continue with her role assisting the Chief Investment Officer with investor reports and communications, but will also assist the Vice President of Acquisitions with underwriting and calculating fees.

Lisa Bryan, Administrative Coordinator - Lisa has continued to grow her duties with assisting not only the Vice President of

the Central Region, but also the Vice President of the South Region as well. She also has taken on additional duties assisting the Chief Investment Officer with investor meetings, documents, tracking communication and contacts.

Keely McAleer, Corp. Communications & HR Administrator - Keely will continue with many of her marketing duties,

but has continued to increase her duties in HR area of the company. Her title was changed to better reflect her responsibilites. She has also taken on supervisory duties, overseeing the Administrative Assistant position in the Omaha office.

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

Volume 7, Issue 1

MHEG Hits $1 Billion in Equity Raised

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

Upcoming Events

6

13520 California St., Ste. 250 Omaha, NE 68154

Monthly LIHTC Rates September 2013 70% PV

30%PV

AFR

7.57%

3.24%

3.28%

October 2013 70% PV

30%PV

AFR

7.63%

3.27%

3.50%

November 2013

Upcoming Events January

NIFA Housing Innovation Marketplace Conference: Jan. 21st-22nd Omaha, NE - Regency Marriott TDHCA Board Meeting: Jan. 23rd Austin, TX - Capitol Extension Auditorium Affordable Housing Tax Credit Coalition Annual Meeting: Jan. 28th-29th Lagune Beach, CA - Surf & Sand Hotel

February

IFA Board Meeting: Feb. 5th Des Moines, IA - IFA Office NH&RA Annual Meeting: Feb. 19th-22nd Palm Beach, FL - Breakers Resort TDHCA Board Meeting: Feb. 20th Austin, TX - Capitol Extension Auditorium NIFA Board Meeting: Feb. 21st Lincoln, NE - NIFA Board Room

70% PV

30%PV

AFR

7.59

3.25%

3.37%

December 2013

IFA Board Meeting: Mar. 12th Des Moines, IA - IFA Office MHDC Commission Meeting: Mar. 14th Columbia, MO

70% PV

30%PV

AFR

7.57%

3.25%

3.32%

January 2014

OHFA Board of Trustees Meeting: Mar. 26th Oklahoma City, OK - Metro Tech - Business Conference Center

January 2014

70% PV

30%PV

AFR

7.60%

3.26%

3.49%

We are excited to announce that MHEG’s first set of regional funds, MHEG Fund 40, LP and MHEG Community Fund 41, LP, have raised over $140 million in equity bringing MHEG’s total amount of equity capital raised since inception to over $1 billion. This is a huge milestone for MHEG and we know it would not have been possible without all of our partners.

“More important than the amount raised is what we’ve been able to do with it,” commented John Wiechmann, President/CEO of MHEG. “That money has helped finance over 10,475 quality affordable residences. We conservatively estimate that at least four families live in a unit during its 15 year compliance period, meaning we’ve been able to and are changing the lives of more than 40,000 families.” Again this would not be possible without our partners, it is your achievement as much as it is ours.

Investors in MHEG Fund 40 included: BancFirst, Capitol Federal Savings Bank, Colorado Federal Savings Bank, Farm Bureau, Fidelity Bank, First Bank & Trust, First National Bank of Omaha, Garmin International, GuideOne Mutual Insurance Company, Mutual of Omaha Bank, Northwestern Mutual Life Insurance Company, Platte Valley Bank, Tri-County Bank and Wells Fargo.

Investors in MHEG Community Fund 41 included: Adams Bank & Trust, American Fidelity Assurance Company, Assurity Life Insurance Company, Citizens State Bank, Commerce Bank, Community State Bank, Equity Bank, Farm & Home Insurance Agency, Inc., Farmers and Merchants Investment, Inc.,Girard National Bank, Great Southern Bank, INTRUST Bank, Iowa State Bank, Lincoln Federal Savings Bank, Morgan Federal Bank, North Central Bancorp, Pinnacle Bank, South Central State Bank, UMB Bank and West Bank.

Kansas Governor Attends Ribbon Cutting

Last month, MHEG was honored to participate in the Ribbon Cutting for City View at St. Margaret’s, along with the Kansas Governor Sam Brownback, Kansas Housing Resources Corporation (KHRC), the Unified Government of Wyandotte County/Kansas City, Kansas and Foutch Brothers, LLC. St. Margaret’s is a historic rehab development in Kansas City, Kansas that will provide over 100 units for persons 55+.

“Dedicated in 1887, the mission of St. Margaret’s Hospital was to help families in the community, so it’s rewarding to see this iconic building, some 126 years later, providing quality housing for people that need it,” said Brownback. “Congratulations Kansas City! The renovation is beautiful!”

For more historic information and pictures of this property, check out our new Property Spotlight section on page 4.

Portfolio Update

April

IFA Board Meeting: Apr. 2nd Des Moines, IA - IFA Office

Developments

TDHCA Board Meeting: Apr. 10th Austin, TX - Capitol Extension Auditorium

Counties Represented

NIFA Board Meeting: Apr. 11th Lincoln, NE - NIFA Board Room

Vacancy Percentage

4.99%*

Debt Coverage Ratio

1.61%*

Units Cities Represented

376 10,475 143 178

Information current as of 1/15/14 *Percentage compiled from 12/31/13 figures using stabilized developments only, vacancy percentage is using economic vacancy.

MHDC Annual Commission Meeting: Apr. 18th Columbia, MO

NCSHA Legislative Conference: March 3rd-5th Washington, D.C - Hyatt Regency Washington on Capitol Hill

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.

NASLEF Asset Management Conference: Mar. 3rd-5th Miami, FL

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

March

6

Participating in the ribbon cutting are (L to R): NAME (Company), NAME (Company), Neighborhood Resident, John Wiechmann (MHEG), Mayor Mark Holland, Govenor Sam Brownback, Steve Foutch (Foutch Brothers), Fred Bentley (KHRC), Pat Michaelis (MHEG), Neighborhood Resident, Dennis Mesa (KHRC) and Neighborhood Resident.

We’re Hiring!

MHEG is currently looking to hire an Asset Manager for our Topeka, Kansas office and a Northwest Regional Vice President - Business Development Officer for our Omaha, Nebraska office. For more information on these positions, visit our Employment section on our website.

To apply, send a copy of your resume and a completed MHEG application (download from our website) to: career@mheginc.com MHEG values it’s employees and offers a comprehensive and competitive benefits package.

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