2014 oct mheg newsletter

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

Volume 7, Issue 3 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 Meeting

6, 7

Upcoming Events

8

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

Monthly LIHTC Rates

October 2014

We’re Moving!

MHEG will be relocating our Omaha headquarters to a new office location in December. We aren’t moving far, just further west on Dodge Street for those familiar with Omaha.

Moving notices will be sent out with the effective date and specific address as we get closer to the move date.

We plan to host an open house at the beginning of February to show the new space. Additional details for this event will be sent at a later date.

June 2014 70% PV

30%PV

AFR

7.58%

3.25%

3.14%

July 2014 70% PV 7.56%

30%PV

AFR

3.24%

3.06%

August 2014

Upcoming Events October

SDHDA Annual Conference: Oct. 28th-29th Pierre, SD – Best Western Ramkota

November

70% PV

30%PV

AFR

7.57%

3.25%

3.09%

September 2014

December

KHRC Board Meeting: Dec. 4th Topeka, KS - KDFA Board Room

70% PV

30%PV

AFR

7.56%

3.24%

2.97%

IFA Board Meeting: Dec. 10th Des Moines, IA - IFA Office

TEI Conference: Nov. 2nd-5th Houston, TX – The Hilton Americas Hotel

NIFA Board Meeting: Dec. 12th Lincoln, NE - NIFA Board Room

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

TDHCA Board Meeting: Dec. 18th Austin, TX - Capitol Extension Auditorium

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

ADFA Board Meeting: Dec. 18th Little Rock, AR - ADFA Office

TDHCA Board Meeting: Nov. 13th Austin, TX - Capitol Extension Auditorium

CHFA Board Meeting: Dec. 18th Denver, CO - CHFA Board Room

October 2014 70% PV

30%PV

AFR

7.54%

3.23%

2.89%

Portfolio Update Developments Units Counties Represented Cities Represented

384 10,752 145 180

AHF Live Summit: Nov. 19th – Nov. 21st Chicago, IL – Fairmont Chicago Millennium Park

Vacancy Percentage

5.51%*

Debt Coverage Ratio

1.68%*

OHFA Board of Trustees Meeting: Nov. 19th Oklahoma City, OK - OHFA’s Conference Room

Information current as of 10/01/14 *Percentage compiled from 6/30/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.

ADFA Board Meeting: Nov. 20th Little Rock, AR - ADFA Office

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.

CHFA Board Meeting: Nov. 20th Denver, CO - CHFA Board Room

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

8

2014 Ad Astra Award Winners This past August the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Wichita, Kansas and presented their Ad Astra Awards. The awards honor individuals and organizations who demonstrate excellence in developing affordable housing, shaping housing policy and creating innovative housing solutions to meet the daily needs of low and moderate-income Kansans.

MHEG was excited to learn that two of our partners received awards this year recognizing them for their outstanding service to the affordable housing industry in Kansas.

Above: Dennis Mesa (KHRC), Steve Foutch (Foutch Brothers, LLC and Pat Michaelis (MHEG)

Special Achievement in Affordable Housing Development - Urban: St. Margaret’s LIHTC, LP (KF X) developed by Foutch Brothers, LLC and located in Kansas City, Kansas.

Innovation in Housing and Community Development: The Reserves at Cimarron Valley - Phase I (La Estancia, LLC of KF VIII) developed

by Overland Property Group and located in Dodge City, Kansas.

Congratulations to both developers, MHEG is proud to partner with these leading organizations.

Asset Manager Needed!

MHEG is currently looking to hire an Asset Manager for our Des Moines office.

Save the Date!

NASLEF 2015

For more information on this position, 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

NASLEF’s 22nd Annual Conference will be held September 16th-18th, 2015, in Kansas City, Missouri! We’re excited for the conference to be hosted in our footprint and hope you’re able to attend and take in some of the sites of the Midwest.

We are hoping to fill this position soon, so if interested please apply before the end of the month.

Check www.naslef.org for additional information about the conference.

1

Volume 7, Issue 3

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

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Greetings Friends! The fall season has arrived and with it comes change. Change in the weather, change at Midwest Housing Equity Group, change in the political landscape (both locally and nationally) and, ultimately, more lives changed for a better tomorrow.

MHEG Fund 42 and MHEG Community Fund 43 were released in the first quarter of this year. We spent the spring and summer raising capital for these new funds. I am happy to report that both funds are fully subscribed and closed (in record time).

Thanks to our many investor partners who are committed to providing quality affordable housing, we now have over $160 million to invest in new developments. I also want to thank the entire MHEG team - without their hard work providing our investors with the needed due diligence, protecting the existing portfolio and acquiring a strong pipeline of projects to invest in, the capital would not be available. Now, with the capital secured, we can focus on closing deals and providing financing to create additional safe and decent rental homes.

In a few short weeks, more change will take place as voters head to the polls for Election Day. Elections are a great reminder that we need to be continually communicating with our elected officials (both Federal and State) about the value of the Housing Credit program. It is especially critical to educate those new to office about the program. Remember to invite your Senator or Representative to participate in groundbreakings and ribbon cuttings, let them tour the developments and meet the residents. First hand interaction with those we serve is the most effective method to demonstrate the value of this public/private partnership. Please contact us for any help with organizing these events or visit the Affordable Housing A.C.T.I.O.N. website (http://www.rentalhousingaction.org/ advocacy-toolkit) which provides an Advocacy Toolkit with guidelines on how to organize and plan these events.

As mentioned on Page 1, MHEG will be changing our headquarters in December. All our partners know we like a challenge – that’s why we picked the last month in fourth quarter to move. December is a busy month for everyone involved in providing affordable housing, with deadlines to meet and deals to close. Please know that this move will not impact MHEG’s commitment to meeting those deadlines and getting deals across the finish line. Thanks to our recent investments in information technology upgrades and our great IT team, business will proceed as normal during the move (which should only take a weekend).

None of our accomplishments would be possible, and we could not change lives, without our great partners. Thank you to our Board and Committee members, investors, developers, general partners, property managers, financing partners and government officials. You are the reason we achieve our mission of changing lives for a better tomorrow. Best wishes for a successful year-end!

Kindest regards, John Wiechmann

October 2014

September kept us busy with local conferences. The annual Iowa Housing Conference was held at the beginning of the month in Des Moines and saw a strong attendance. MHEG had several staff members attend the conference. We also held our annual Iowa Appreciation Dinner in conjunction with the conference at the Des Moines Social Club. John Wiechmann, Chris Hensley and I also attended the Iowa League of Cities Annual Conference in Council Bluffs at the end of September to discuss affordable housing needs with various communities throughout the state. The event was very well attended with over 500 officials present. We were able to have discussions with several of them from various communities that are in need of affordable housing.

October has been focused on state allocations. The Iowa Finance Authority Board of Directors approved the 2015 Qualified Allocation Plan on October 8, 2014. We are shaping up to see a high number of applications this fall. We are eagerly awaiting the announcement of the Minnesota first round 2015 tax credit reservations that will be announced at the end of the month.

Congratulations to Overland Property Group on the closing of The Reserves at Ironwood in Oskaloosa and to Excel Development for the ground breaking of Prairie Heights in Orange City.

Lastly, we’d like to thank our long time staff member Kristina Wellman for her many years of service at MHEG. Kristina recently took a position with Community Housing Initiatives. We’ll miss her and wish her the best!

Northwest Region Update Jen Oscarson

As fall fast approaches so does the mad scramble of change. One of which is I have moved to Omaha, Nebraska from the St. Paul area of Minnesota to take on the role of Vice President of Business Development for the Northwest Region. In this role, I am bringing experience as a developer, state allocator and previous syndication work. It is with great excitement that I work with developers and investors in Nebraska, South Dakota, and Colorado. I am grateful for the opportunity to work with you to ensure the continued success of tax credit developments for all of us including the residents we serve.

Several staff were able to attend the groundbreaking of the President and Ambassador Apartments, now known as A&P II (MHEG 43) on Sept. 23, 2014 in Lincoln, Nebraska. Once the renovations are complete, A&P II will offer 71 units for residents with special needs. John Wiechmann (second from right) was spoke and participated in the event.

Central Region Update Pat Michaelis

The Northwest region has been busy closing numerous developments in Nebraska, preparing the closing of our second deal in Colorado and leasing up the first deal in Aberdeen, South Dakota making the regional funds a huge success.

On April 16, 2014, Nebraska’s Governor Heinemen signed Legislative Bill 191, which creates a historic tax credit at the state level to further incentivize developers to revitalize historic properties throughout the state of Nebraska. SHPO will begin accepting applications in January 2015. Colorado recently reauthorized the State Historic Tax Credit and on May 29, 2014, Colorado’s Governor Hickenlooper reinstated the State Low Income Housing Tax Credit. In 2001 and 2002 (the previous State Tax Credit allocation) generated more than $20 million in private equity, leveraged other governmental resources at a rate of $4 to every $1 of State Tax Credit and helped create or preserve more than 800 units, according to the Colorado Real Estate journal. These legislative initiatives are exciting opportunities to fill financing gaps and allow more developments to be completed in these states. MHEG is excited to partner in these new opportunities.

As we begin the 4th quarter of the year, MHEG is positioned to have another successful year for our residents, investors and developer partners. We are grateful and appreciative all around.

Thank you to all our wonderful partners, investors and staff as we look forward to the exciting changes occurring at MHEG and in our industry to develop quality affordable housing in our region.

Residents. MHEG syndicates projects that provide quality, affordable and energy efficient housing. In 2014, we anticipate over 1,400 units will be created or sustained. We are truly making a difference is people’s lives. Please be proud.

South Region Update

Investors. Without our investors there are no projects. Your trust and faith in MHEG is critical to providing affordable housing to residents in the states we serve. 2014 will be a record year in terms of dollars raised for this year’s funds, $166,500,000. Thank you very much.

Developers. In the past, projects were plentiful and we had to work hard to attract investors. Now it is much more balanced. We still must prove worthy to investors, but it is much more competitive on the projects side. MHEG is very fortunate to have a professional, experienced, financially strong and loyal group of developers. This is not an easy business. Find a good project, receive a LIHTC award, fill the funding gaps, get built and leased, and operate for 15 years. It takes quality developers and sponsors for all of us to be successful over the long haul.

We will also complete our second year of syndicating in Missouri in 2014. I am a loyal Jayhawk, but please remember I was born in Jefferson City, Missouri and have attended a MU football game with Norm Stewart. Last year, we syndicated two projects in the state and plan to syndicate three or four this year. We anticipate the number to increase again in 2015. Many thanks to our new Missouri partners. Go Tigers!

I believe in MHEG, our staff, expertise and track record. We show up on time! These are the reasons you invest and syndicate with us. Our expansion has provided additional advantages. For investors, more diversification, less risk and broader CRA coverage. For developers, MHEG continues to offer local knowledge and assistance, but in a much bigger footprint. A developer based in Springfield, Missouri looking to expand into Kansas, Oklahoma, Arkansas and Texas, can rely on us. MHEG is a one stop shop.

In closing, we value and appreciate our relationship with all of you. Thank you for your business.

Pat, Chris, Brooke, and Lisa 2

Andrea Frymire Oklahoma I am happy to announce that Oklahoma now has a State Affordable Housing Credit! Governor Fallin signed SB2128-the Oklahoma Affordable Housing Act. Thank you to all of our partners who worked at the grassroots level on this legislation. OHFA has now approved the 2015 QAP with information on how the state credit will be allocated. All $4 million will be allocated during the first round of applications. Developers may include two financing plans in their applications (Plan A to include both federal and state LIHTC requests, Plan B to include only a federal LIHTC request). This is a ten year credit and is available in all counties with the exception of Cleveland, Oklahoma and Tulsa.

Arkansas The annual Arkansas Housing Conference in June provided us another opportunity to meet new developers and partners. We are working on multiple deals throughout the state at this time. We appreciate the opportunity to provide our services with such hospitable partners. We are pleased with the warm reception we have received from all communities.

Texas Our first deal in Wichita Falls, Texas is still under construction. We look forward to this development completing construction and beginning lease up during fourth quarter 2014.

We are currently underwriting and securing 2014 deals in the Texas market. Due to increased investor demand, Texas is even more competitive than normal.

In closing, I have received multiple requests to organize a state affordable housing coalition. While we had a loose coalition during 2013 and 2014, it was only for the specific state tax credit legislation.

If you are interested in assisting to get such an organization up and running, please contact me.

Thank you to all of our partners for your continued support!

3

Volume 7, Issue 3

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

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Greetings Friends! The fall season has arrived and with it comes change. Change in the weather, change at Midwest Housing Equity Group, change in the political landscape (both locally and nationally) and, ultimately, more lives changed for a better tomorrow.

MHEG Fund 42 and MHEG Community Fund 43 were released in the first quarter of this year. We spent the spring and summer raising capital for these new funds. I am happy to report that both funds are fully subscribed and closed (in record time).

Thanks to our many investor partners who are committed to providing quality affordable housing, we now have over $160 million to invest in new developments. I also want to thank the entire MHEG team - without their hard work providing our investors with the needed due diligence, protecting the existing portfolio and acquiring a strong pipeline of projects to invest in, the capital would not be available. Now, with the capital secured, we can focus on closing deals and providing financing to create additional safe and decent rental homes.

In a few short weeks, more change will take place as voters head to the polls for Election Day. Elections are a great reminder that we need to be continually communicating with our elected officials (both Federal and State) about the value of the Housing Credit program. It is especially critical to educate those new to office about the program. Remember to invite your Senator or Representative to participate in groundbreakings and ribbon cuttings, let them tour the developments and meet the residents. First hand interaction with those we serve is the most effective method to demonstrate the value of this public/private partnership. Please contact us for any help with organizing these events or visit the Affordable Housing A.C.T.I.O.N. website (http://www.rentalhousingaction.org/ advocacy-toolkit) which provides an Advocacy Toolkit with guidelines on how to organize and plan these events.

As mentioned on Page 1, MHEG will be changing our headquarters in December. All our partners know we like a challenge – that’s why we picked the last month in fourth quarter to move. December is a busy month for everyone involved in providing affordable housing, with deadlines to meet and deals to close. Please know that this move will not impact MHEG’s commitment to meeting those deadlines and getting deals across the finish line. Thanks to our recent investments in information technology upgrades and our great IT team, business will proceed as normal during the move (which should only take a weekend).

None of our accomplishments would be possible, and we could not change lives, without our great partners. Thank you to our Board and Committee members, investors, developers, general partners, property managers, financing partners and government officials. You are the reason we achieve our mission of changing lives for a better tomorrow. Best wishes for a successful year-end!

Kindest regards, John Wiechmann

October 2014

September kept us busy with local conferences. The annual Iowa Housing Conference was held at the beginning of the month in Des Moines and saw a strong attendance. MHEG had several staff members attend the conference. We also held our annual Iowa Appreciation Dinner in conjunction with the conference at the Des Moines Social Club. John Wiechmann, Chris Hensley and I also attended the Iowa League of Cities Annual Conference in Council Bluffs at the end of September to discuss affordable housing needs with various communities throughout the state. The event was very well attended with over 500 officials present. We were able to have discussions with several of them from various communities that are in need of affordable housing.

October has been focused on state allocations. The Iowa Finance Authority Board of Directors approved the 2015 Qualified Allocation Plan on October 8, 2014. We are shaping up to see a high number of applications this fall. We are eagerly awaiting the announcement of the Minnesota first round 2015 tax credit reservations that will be announced at the end of the month.

Congratulations to Overland Property Group on the closing of The Reserves at Ironwood in Oskaloosa and to Excel Development for the ground breaking of Prairie Heights in Orange City.

Lastly, we’d like to thank our long time staff member Kristina Wellman for her many years of service at MHEG. Kristina recently took a position with Community Housing Initiatives. We’ll miss her and wish her the best!

Northwest Region Update Jen Oscarson

As fall fast approaches so does the mad scramble of change. One of which is I have moved to Omaha, Nebraska from the St. Paul area of Minnesota to take on the role of Vice President of Business Development for the Northwest Region. In this role, I am bringing experience as a developer, state allocator and previous syndication work. It is with great excitement that I work with developers and investors in Nebraska, South Dakota, and Colorado. I am grateful for the opportunity to work with you to ensure the continued success of tax credit developments for all of us including the residents we serve.

Several staff were able to attend the groundbreaking of the President and Ambassador Apartments, now known as A&P II (MHEG 43) on Sept. 23, 2014 in Lincoln, Nebraska. Once the renovations are complete, A&P II will offer 71 units for residents with special needs. John Wiechmann (second from right) was spoke and participated in the event.

Central Region Update Pat Michaelis

The Northwest region has been busy closing numerous developments in Nebraska, preparing the closing of our second deal in Colorado and leasing up the first deal in Aberdeen, South Dakota making the regional funds a huge success.

On April 16, 2014, Nebraska’s Governor Heinemen signed Legislative Bill 191, which creates a historic tax credit at the state level to further incentivize developers to revitalize historic properties throughout the state of Nebraska. SHPO will begin accepting applications in January 2015. Colorado recently reauthorized the State Historic Tax Credit and on May 29, 2014, Colorado’s Governor Hickenlooper reinstated the State Low Income Housing Tax Credit. In 2001 and 2002 (the previous State Tax Credit allocation) generated more than $20 million in private equity, leveraged other governmental resources at a rate of $4 to every $1 of State Tax Credit and helped create or preserve more than 800 units, according to the Colorado Real Estate journal. These legislative initiatives are exciting opportunities to fill financing gaps and allow more developments to be completed in these states. MHEG is excited to partner in these new opportunities.

As we begin the 4th quarter of the year, MHEG is positioned to have another successful year for our residents, investors and developer partners. We are grateful and appreciative all around.

Thank you to all our wonderful partners, investors and staff as we look forward to the exciting changes occurring at MHEG and in our industry to develop quality affordable housing in our region.

Residents. MHEG syndicates projects that provide quality, affordable and energy efficient housing. In 2014, we anticipate over 1,400 units will be created or sustained. We are truly making a difference is people’s lives. Please be proud.

South Region Update

Investors. Without our investors there are no projects. Your trust and faith in MHEG is critical to providing affordable housing to residents in the states we serve. 2014 will be a record year in terms of dollars raised for this year’s funds, $166,500,000. Thank you very much.

Developers. In the past, projects were plentiful and we had to work hard to attract investors. Now it is much more balanced. We still must prove worthy to investors, but it is much more competitive on the projects side. MHEG is very fortunate to have a professional, experienced, financially strong and loyal group of developers. This is not an easy business. Find a good project, receive a LIHTC award, fill the funding gaps, get built and leased, and operate for 15 years. It takes quality developers and sponsors for all of us to be successful over the long haul.

We will also complete our second year of syndicating in Missouri in 2014. I am a loyal Jayhawk, but please remember I was born in Jefferson City, Missouri and have attended a MU football game with Norm Stewart. Last year, we syndicated two projects in the state and plan to syndicate three or four this year. We anticipate the number to increase again in 2015. Many thanks to our new Missouri partners. Go Tigers!

I believe in MHEG, our staff, expertise and track record. We show up on time! These are the reasons you invest and syndicate with us. Our expansion has provided additional advantages. For investors, more diversification, less risk and broader CRA coverage. For developers, MHEG continues to offer local knowledge and assistance, but in a much bigger footprint. A developer based in Springfield, Missouri looking to expand into Kansas, Oklahoma, Arkansas and Texas, can rely on us. MHEG is a one stop shop.

In closing, we value and appreciate our relationship with all of you. Thank you for your business.

Pat, Chris, Brooke, and Lisa 2

Andrea Frymire Oklahoma I am happy to announce that Oklahoma now has a State Affordable Housing Credit! Governor Fallin signed SB2128-the Oklahoma Affordable Housing Act. Thank you to all of our partners who worked at the grassroots level on this legislation. OHFA has now approved the 2015 QAP with information on how the state credit will be allocated. All $4 million will be allocated during the first round of applications. Developers may include two financing plans in their applications (Plan A to include both federal and state LIHTC requests, Plan B to include only a federal LIHTC request). This is a ten year credit and is available in all counties with the exception of Cleveland, Oklahoma and Tulsa.

Arkansas The annual Arkansas Housing Conference in June provided us another opportunity to meet new developers and partners. We are working on multiple deals throughout the state at this time. We appreciate the opportunity to provide our services with such hospitable partners. We are pleased with the warm reception we have received from all communities.

Texas Our first deal in Wichita Falls, Texas is still under construction. We look forward to this development completing construction and beginning lease up during fourth quarter 2014.

We are currently underwriting and securing 2014 deals in the Texas market. Due to increased investor demand, Texas is even more competitive than normal.

In closing, I have received multiple requests to organize a state affordable housing coalition. While we had a loose coalition during 2013 and 2014, it was only for the specific state tax credit legislation.

If you are interested in assisting to get such an organization up and running, please contact me.

Thank you to all of our partners for your continued support!

3

Volume 7, Issue 3

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

Property Spotlight: Beacon Apartments Limited Partnership Next week MHEG, along with Lloyd Companies and LifeScape, will hold the groundbreaking ceremony for Beacon Apartments in Sioux Falls, South Dakota. This new construction development is a 14-unit multi-site project that will serve residents with development disabilities. Beacon Apartments will consist of three separate buildings, offering a total of 4 one-bedroom and 10 two-bedroom units. All units will include a refrigerator, microwave, washer/dryer and dishwasher. Additional amenities include on-site management, case management, medical services, employment training and residential services that can provide up to 24 hours of care per day if needed. Rents will include utilities, water, sewer and trash collection. Tenants will be responsible for phone and cable.

South Dakota Achieve (SDA) will serve as the General Partner for Beacon Apartments. Founded in 1958 by 11 families with children with disabilities, they believed in a better way of life for their children and wanted them to have the opportunity to have a meaningful life. Today, SDA serves over 500 people with disabilities and is the largest community support program in the state of South Dakota. SDA works with each of its clients to help them discover their interests and dreams, and to find a way to be an active part of their community.

MHEG is excited to be a new partner of SDA and Lloyd Companies, ensuring that everyone has safe, quality affordable housing available.

Construction is anticipated to be completed in July 2015.

For leasing information contact Lloyd Companies at #605-323-2820.

South Dakota Achieve dba Lifescape

Developer

Lloyd Companies

Property Manager

Lloyd Companies

LIHTC DevelopmentS

fund

city / State

units

DATE

DEVELOPER

Shady Bend Villas, LLC

MHEG 40

Grand Island, NE

20

June

Mesner Development Company

DH Housing LP

MHEG 40

Durant, OK

24

July

Strategic Realty Sunview Development, LLC

Chambrooke Homes of Durant, LLC

MHEG 40

Durant, OK

40

August

Beacon Apartments Limited Partnership

MHEG 42

Sioux Falls, SD

14

September Lloyd Companies

Village Crown II Limited Partnership

MHEG 42

Omaha, NE

27

September Holy Name Housing Corporation

Ironwood Partners, LLC

MHEG 42

Oskaloosa, IA

48

October

Total Units Closed from June-October

173

Total Units Closed in 2014

272

Overland Property Group

Staff Announcements Jen was recently hired as the Vice President-Business Development Officer for the Northwest Region in our Omaha office. She will be responsible for developing and maintaining relationships with MHEG’s investor and developer partners throughout Nebraska, Colorado and South Dakota. Jen joins MHEG with over a decade of experience in the affordable housing industry. Most recently she served as a Senior Multifamily Underwriter for the Minnesota Housing Finance Agency.

Prior to joining them, Jen worked as a Senior Housing Development Officer for CommonBond Communities and as a Developer Relations Manager WNC & Associates. She started with MHEG at the beginning of July 2014.

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

1

Closed Acquisitions

Jen Oscarson, Vice President - Business Development Officer - Northwest Region

Beacon Apartments Limited Partnership General Partner

October 2014

2

Amanda Bockelman, Financial Analyst Amanda was recently hired full-time as a Financial Analyst in our Omaha office. She 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. Amanda was previously an intern in our Asset Management department. She recently graduated from the University of Nebraska at Omaha majoring in Finance, Banking and Real Estate. She started her full-time position with MHEG at the beginning of June 2014.

3

Dana Oswald, Accounting Coordinator

4

5

6

Dana was recently hired as an Accounting Coordinator in our Omaha office. Her primary role is to provide support to the CFO and Accounting Manager. Her duties include reviewing and analyzing lower tier financials, coordinating with asset managers on items needed for annual audit and overseeing the annual review of property audited statement, as well as coordinating annual confirmations and preparing and assisting with capital calls. She joins MHEG with over 10 years’ experience in the accounting and audit field. Prior to MHEG, Dana was a Senior Accountant for the Women’s Center for Advancement. She started with MHEG at the beginning of August 2014.

MHEG would also like to recognize those employees who will be reaching their 5-year and 10-year service anniversary date in 2014. MHEG is proud to have a dedicated and experienced staff.

1) MHEG’s first development in South Dakota, Jackson Heights Apartments (MHEG 40), held a ribbon cutting on August 12, 2014 in Aberdeen, South Dakota. Cindy Koster (MHEG) was able to attend the event. The apartments will provide 41 affordable housing rental units for families in the community.

2) River Road Townhomes (MHEG 40) celebrated with a ribbon cutting event on August 21, 2014 in Waterloo, Nebraska. This newly constructed community of duplexes will offer 14 affordable housing rental units for seniors. Mary Ann Borgeson (Douglas County Commissioner), Joan Bertolini (Douglas County Housing Authority) and Kathy Mesner (Mesner Development Co.).

3) Dana Point Development Corp held a ribbon cutting for Heather Estates (MHEG 40) on September 3, 2014 in Imperial, Nebraska. Jen Oscarson (MHEG) was able to participate in the event (third from the right). Heather Estates will provide 10 single family homes for the Imperial community.

Chris Pangkerego, Director of IT 10 years

Andrea Frymire, VP - Business Development Officer South Region 5 years

4) Sammy Ehtisham (second from the left) was a panelist at NASLEF’s 21st Annual Conference in Savannah, Georgia this past September. His session, “Crowd Pleaser: Negotiating Deal Points That Will Satisfy All Parties” focused on current underwriting concerns and deal structuring points concerning syndicators, investors and developers.

5) Andrea Frymire (third from left) was able to attend Apple Ridge Senior’s (MHEG 40) ribbon cutting on September 26, 2014 in Pauls Valley, Oklahoma. This development will offer 20 units for seniors 62+.

6) Tom Stratman, Geoff Grafford, Sammy Ehtisham and John Wiechmann pose with Miss Claus at OHFA’s Annual Golf Tournament on July 17, 2014 to raise money for Santa’s Sleigh charity, which provides gifts for homeless children in shelters throughout Oklahoma. This year’s tournament raised over $45,000.

4

5

Volume 7, Issue 3

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

Property Spotlight: Beacon Apartments Limited Partnership Next week MHEG, along with Lloyd Companies and LifeScape, will hold the groundbreaking ceremony for Beacon Apartments in Sioux Falls, South Dakota. This new construction development is a 14-unit multi-site project that will serve residents with development disabilities. Beacon Apartments will consist of three separate buildings, offering a total of 4 one-bedroom and 10 two-bedroom units. All units will include a refrigerator, microwave, washer/dryer and dishwasher. Additional amenities include on-site management, case management, medical services, employment training and residential services that can provide up to 24 hours of care per day if needed. Rents will include utilities, water, sewer and trash collection. Tenants will be responsible for phone and cable.

South Dakota Achieve (SDA) will serve as the General Partner for Beacon Apartments. Founded in 1958 by 11 families with children with disabilities, they believed in a better way of life for their children and wanted them to have the opportunity to have a meaningful life. Today, SDA serves over 500 people with disabilities and is the largest community support program in the state of South Dakota. SDA works with each of its clients to help them discover their interests and dreams, and to find a way to be an active part of their community.

MHEG is excited to be a new partner of SDA and Lloyd Companies, ensuring that everyone has safe, quality affordable housing available.

Construction is anticipated to be completed in July 2015.

For leasing information contact Lloyd Companies at #605-323-2820.

South Dakota Achieve dba Lifescape

Developer

Lloyd Companies

Property Manager

Lloyd Companies

LIHTC DevelopmentS

fund

city / State

units

DATE

DEVELOPER

Shady Bend Villas, LLC

MHEG 40

Grand Island, NE

20

June

Mesner Development Company

DH Housing LP

MHEG 40

Durant, OK

24

July

Strategic Realty Sunview Development, LLC

Chambrooke Homes of Durant, LLC

MHEG 40

Durant, OK

40

August

Beacon Apartments Limited Partnership

MHEG 42

Sioux Falls, SD

14

September Lloyd Companies

Village Crown II Limited Partnership

MHEG 42

Omaha, NE

27

September Holy Name Housing Corporation

Ironwood Partners, LLC

MHEG 42

Oskaloosa, IA

48

October

Total Units Closed from June-October

173

Total Units Closed in 2014

272

Overland Property Group

Staff Announcements Jen was recently hired as the Vice President-Business Development Officer for the Northwest Region in our Omaha office. She will be responsible for developing and maintaining relationships with MHEG’s investor and developer partners throughout Nebraska, Colorado and South Dakota. Jen joins MHEG with over a decade of experience in the affordable housing industry. Most recently she served as a Senior Multifamily Underwriter for the Minnesota Housing Finance Agency.

Prior to joining them, Jen worked as a Senior Housing Development Officer for CommonBond Communities and as a Developer Relations Manager WNC & Associates. She started with MHEG at the beginning of July 2014.

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

1

Closed Acquisitions

Jen Oscarson, Vice President - Business Development Officer - Northwest Region

Beacon Apartments Limited Partnership General Partner

October 2014

2

Amanda Bockelman, Financial Analyst Amanda was recently hired full-time as a Financial Analyst in our Omaha office. She 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. Amanda was previously an intern in our Asset Management department. She recently graduated from the University of Nebraska at Omaha majoring in Finance, Banking and Real Estate. She started her full-time position with MHEG at the beginning of June 2014.

3

Dana Oswald, Accounting Coordinator

4

5

6

Dana was recently hired as an Accounting Coordinator in our Omaha office. Her primary role is to provide support to the CFO and Accounting Manager. Her duties include reviewing and analyzing lower tier financials, coordinating with asset managers on items needed for annual audit and overseeing the annual review of property audited statement, as well as coordinating annual confirmations and preparing and assisting with capital calls. She joins MHEG with over 10 years’ experience in the accounting and audit field. Prior to MHEG, Dana was a Senior Accountant for the Women’s Center for Advancement. She started with MHEG at the beginning of August 2014.

MHEG would also like to recognize those employees who will be reaching their 5-year and 10-year service anniversary date in 2014. MHEG is proud to have a dedicated and experienced staff.

1) MHEG’s first development in South Dakota, Jackson Heights Apartments (MHEG 40), held a ribbon cutting on August 12, 2014 in Aberdeen, South Dakota. Cindy Koster (MHEG) was able to attend the event. The apartments will provide 41 affordable housing rental units for families in the community.

2) River Road Townhomes (MHEG 40) celebrated with a ribbon cutting event on August 21, 2014 in Waterloo, Nebraska. This newly constructed community of duplexes will offer 14 affordable housing rental units for seniors. Mary Ann Borgeson (Douglas County Commissioner), Joan Bertolini (Douglas County Housing Authority) and Kathy Mesner (Mesner Development Co.).

3) Dana Point Development Corp held a ribbon cutting for Heather Estates (MHEG 40) on September 3, 2014 in Imperial, Nebraska. Jen Oscarson (MHEG) was able to participate in the event (third from the right). Heather Estates will provide 10 single family homes for the Imperial community.

Chris Pangkerego, Director of IT 10 years

Andrea Frymire, VP - Business Development Officer South Region 5 years

4) Sammy Ehtisham (second from the left) was a panelist at NASLEF’s 21st Annual Conference in Savannah, Georgia this past September. His session, “Crowd Pleaser: Negotiating Deal Points That Will Satisfy All Parties” focused on current underwriting concerns and deal structuring points concerning syndicators, investors and developers.

5) Andrea Frymire (third from left) was able to attend Apple Ridge Senior’s (MHEG 40) ribbon cutting on September 26, 2014 in Pauls Valley, Oklahoma. This development will offer 20 units for seniors 62+.

6) Tom Stratman, Geoff Grafford, Sammy Ehtisham and John Wiechmann pose with Miss Claus at OHFA’s Annual Golf Tournament on July 17, 2014 to raise money for Santa’s Sleigh charity, which provides gifts for homeless children in shelters throughout Oklahoma. This year’s tournament raised over $45,000.

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Volume 7, Issue 3

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

MHEG Annual Meeting & Golf Outing: June 2, 2014

October 2014

Often times when people rsvp for the golf outing, they comment that they aren’t a “golfer” and worry about the competition. We like to remind you that although our tournament does have winners and we do have some competitive golfers in the group, it is truly an enjoyable day for all attending. It is MHEG’s opportunity to show our appreciation to those we work with. If you haven’t been able to attend in past years, mark your calendar now for June 1st, 2015, and see what the fun is all about!

Our 2014 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 2nd. It was a gorgeous day to be out on the golf course. We had 26 teams participating in the outing and over 100 people in attendance for the meeting and lunch.

Thank you to those who were able to attend for making the day such a success, we look forward to this outing each year and the fun it brings. And a BIG THANK YOU to our great sponsors!!!!

Overland Property Group - Luncheon Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor BancFirst - Awards Presentation Sponsor Horizon Bank - Awards Presentation Sponsor Nebraska Investment Finance Authority - Golf Ball and Breakfast & Registration Sponsor Wells Fargo - Refreshments Sponsor Seldin Company - Golf Ball Sponsor Foutch Brothers, LLC - Golf Ball Sponsor & Cart Sponsor Herman & Kittle Properties - Cart Sponsor Hole & Contest Hole Sponsors:

Countryside Bank, Excel Development Group, Hatch Development, Home Federal Bank, Horizon Bank, INTRUST Bank, J. Development Company, Kansas Housing Resources Corp., Kutak Rock, Nebraska Bankers Association, Spectrum Companies, Teckmeyer Financial Services, U.S. Bank. and Vintage Construction

1st Place

Scott Bartels (Horizon Bank), Frank Mason (Horizon Bank), Dustin Daugherty (MHEG), Jake Jacobsen (MHEG)

3rd Place Bob Brandt (Countryside Bank), Deb Swanson (MHEG), Dave Hall (Countryside Bank), Steve Bodner (US Bank) 6

2nd Place

Bruce Wilgers (Fidelity Bank), Brian Chamberlin (Andover State Bank), Mark Cox (Vintage Construction), Rick King (Vintage Construction),

Last Place Jim Ostrander (Excel Development Group), Kristina Wellman (MHEG), Paul Rhian (Excel Development Group), Jim O’Hare (Horizon Bank) 7

Volume 7, Issue 3

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

MHEG Annual Meeting & Golf Outing: June 2, 2014

October 2014

Often times when people rsvp for the golf outing, they comment that they aren’t a “golfer” and worry about the competition. We like to remind you that although our tournament does have winners and we do have some competitive golfers in the group, it is truly an enjoyable day for all attending. It is MHEG’s opportunity to show our appreciation to those we work with. If you haven’t been able to attend in past years, mark your calendar now for June 1st, 2015, and see what the fun is all about!

Our 2014 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 2nd. It was a gorgeous day to be out on the golf course. We had 26 teams participating in the outing and over 100 people in attendance for the meeting and lunch.

Thank you to those who were able to attend for making the day such a success, we look forward to this outing each year and the fun it brings. And a BIG THANK YOU to our great sponsors!!!!

Overland Property Group - Luncheon Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor BancFirst - Awards Presentation Sponsor Horizon Bank - Awards Presentation Sponsor Nebraska Investment Finance Authority - Golf Ball and Breakfast & Registration Sponsor Wells Fargo - Refreshments Sponsor Seldin Company - Golf Ball Sponsor Foutch Brothers, LLC - Golf Ball Sponsor & Cart Sponsor Herman & Kittle Properties - Cart Sponsor Hole & Contest Hole Sponsors:

Countryside Bank, Excel Development Group, Hatch Development, Home Federal Bank, Horizon Bank, INTRUST Bank, J. Development Company, Kansas Housing Resources Corp., Kutak Rock, Nebraska Bankers Association, Spectrum Companies, Teckmeyer Financial Services, U.S. Bank. and Vintage Construction

1st Place

Scott Bartels (Horizon Bank), Frank Mason (Horizon Bank), Dustin Daugherty (MHEG), Jake Jacobsen (MHEG)

3rd Place Bob Brandt (Countryside Bank), Deb Swanson (MHEG), Dave Hall (Countryside Bank), Steve Bodner (US Bank) 6

2nd Place

Bruce Wilgers (Fidelity Bank), Brian Chamberlin (Andover State Bank), Mark Cox (Vintage Construction), Rick King (Vintage Construction),

Last Place Jim Ostrander (Excel Development Group), Kristina Wellman (MHEG), Paul Rhian (Excel Development Group), Jim O’Hare (Horizon Bank) 7

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

Volume 7, Issue 3 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 Meeting

6, 7

Upcoming Events

8

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

Monthly LIHTC Rates

October 2014

We’re Moving!

MHEG will be relocating our Omaha headquarters to a new office location in December. We aren’t moving far, just further west on Dodge Street for those familiar with Omaha.

Moving notices will be sent out with the effective date and specific address as we get closer to the move date.

We plan to host an open house at the beginning of February to show the new space. Additional details for this event will be sent at a later date.

June 2014 70% PV

30%PV

AFR

7.58%

3.25%

3.14%

July 2014 70% PV 7.56%

30%PV

AFR

3.24%

3.06%

August 2014

Upcoming Events October

SDHDA Annual Conference: Oct. 28th-29th Pierre, SD – Best Western Ramkota

November

70% PV

30%PV

AFR

7.57%

3.25%

3.09%

September 2014

December

KHRC Board Meeting: Dec. 4th Topeka, KS - KDFA Board Room

70% PV

30%PV

AFR

7.56%

3.24%

2.97%

IFA Board Meeting: Dec. 10th Des Moines, IA - IFA Office

TEI Conference: Nov. 2nd-5th Houston, TX – The Hilton Americas Hotel

NIFA Board Meeting: Dec. 12th Lincoln, NE - NIFA Board Room

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

TDHCA Board Meeting: Dec. 18th Austin, TX - Capitol Extension Auditorium

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

ADFA Board Meeting: Dec. 18th Little Rock, AR - ADFA Office

TDHCA Board Meeting: Nov. 13th Austin, TX - Capitol Extension Auditorium

CHFA Board Meeting: Dec. 18th Denver, CO - CHFA Board Room

October 2014 70% PV

30%PV

AFR

7.54%

3.23%

2.89%

Portfolio Update Developments Units Counties Represented Cities Represented

384 10,752 145 180

AHF Live Summit: Nov. 19th – Nov. 21st Chicago, IL – Fairmont Chicago Millennium Park

Vacancy Percentage

5.51%*

Debt Coverage Ratio

1.68%*

OHFA Board of Trustees Meeting: Nov. 19th Oklahoma City, OK - OHFA’s Conference Room

Information current as of 10/01/14 *Percentage compiled from 6/30/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.

ADFA Board Meeting: Nov. 20th Little Rock, AR - ADFA Office

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.

CHFA Board Meeting: Nov. 20th Denver, CO - CHFA Board Room

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

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2014 Ad Astra Award Winners This past August the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Wichita, Kansas and presented their Ad Astra Awards. The awards honor individuals and organizations who demonstrate excellence in developing affordable housing, shaping housing policy and creating innovative housing solutions to meet the daily needs of low and moderate-income Kansans.

MHEG was excited to learn that two of our partners received awards this year recognizing them for their outstanding service to the affordable housing industry in Kansas.

Above: Dennis Mesa (KHRC), Steve Foutch (Foutch Brothers, LLC and Pat Michaelis (MHEG)

Special Achievement in Affordable Housing Development - Urban: St. Margaret’s LIHTC, LP (KF X) developed by Foutch Brothers, LLC and located in Kansas City, Kansas.

Innovation in Housing and Community Development: The Reserves at Cimarron Valley - Phase I (La Estancia, LLC of KF VIII) developed

by Overland Property Group and located in Dodge City, Kansas.

Congratulations to both developers, MHEG is proud to partner with these leading organizations.

Asset Manager Needed!

MHEG is currently looking to hire an Asset Manager for our Des Moines office.

Save the Date!

NASLEF 2015

For more information on this position, 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

NASLEF’s 22nd Annual Conference will be held September 16th-18th, 2015, in Kansas City, Missouri! We’re excited for the conference to be hosted in our footprint and hope you’re able to attend and take in some of the sites of the Midwest.

We are hoping to fill this position soon, so if interested please apply before the end of the month.

Check www.naslef.org for additional information about the conference.

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