2015 Annual Report - New Beginnings

new beginnings midwest housing equity group 2015 annual report

corporate philosophy Mission Statement:

Midwest Housing’s mission is to change lives for a better tomorrow by promoting the development and sustainability of quality affordable housing.

Vision:

Midwest Housing aspires to be the leading regional syndicator of low-income housing tax credits, recognized for its excellent track record of selecting, investing in and protecting quality real estate projects that revitalize the communities in which they are built.

Core Values: Integrity: as fiduciaries, we are honest and up front in all of our transactions, avoiding even the appearance of impropriety or conflict of interest transactions.

Stewardship: we are excellent stewards of our investments (and thus the residents), honoring our written and implicit commitments to our investors, developers, residents and communities.

Excellence: we strive to be the best in the business, employing the best individuals, utilizing up-to-date processes and infrastructure, and conservative underwriting parameters.

Local Presence: we are and will remain local, believing that a “boots on the ground� approach is the best way to understand and protect the projects.

Employee-Focused: our employees are our strength. Recognizing that, we endeavor to provide ongoing development, training and advancement opportunities, to respect a work/life balance and to recognize and reward personal, department and company achievements.

contents 1 message from our president 3 mheg portfolio summary Top Left: Windhaven Estates, Holdrege, Nebraska Top Right: Parsons Housing Partners, Parsons, Kansas Bottom: Northfield at Stapleton Apartments, Denver, Colorado

5 investors & equity summary 7 2015 developments 15 board of directors & committee members 16 mheg staff

Edit, Concept & Design By: Keely McAleer

(Above: Rockville Place, Louisburg, Kansas)

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message from our president/ceo

“New Beginnings”

The theme of our 2015 Annual Report is New Beginnings. MHEG has been around for 23 years and we’ve been doing essentially the same thing the entire time. Sometimes, we can lose sight of the fact that what we do day in and day out makes a difference for a lot of people. But that shouldn’t be the case. Every home we help finance creates a New Beginning for another family! It provides them with a safe, decent and affordable place to call home. A place to focus on work or school or addressing addiction or just being together. Every day and every development is a chance to change lives!

In 2015, thanks to our many great developer, investor, bank and government partners, we invested almost $159 million in equity into thirty-eight developments, helping finance more than 1,600 affordable rental homes. That’s a new beginning for more than 1,600 families! I am always amazed at the wide diversity of families and people that the LIHTC program touches. As you read through this report, I hope you too are excited at the variety of developments: single family homes, age restricted housing, veterans housing, housing for people with special needs, historic rehabilitation. The geographic diversity is also impressive: eight states and a mix of large and small communities. And the development size runs the gamut - from eight units to 237 units. We believe that every person deserves a new beginning and I’m hopeful that the portfolio reflects that belief.

The work of creating affordable housing is not easy. And, as mentioned above, we can sometimes get bogged down in the day to day details that are essential to building viable homes.

But if you ever find yourself getting discouraged, just think about the opportunity you are ultimately creating for our fellow human beings. Take a break from your work, look through your portfolio and, even better, get out and visit your properties and talk to your residents. For me, meeting our residents and seeing their New Beginnings is the best inspiration I’ve found!

Thank you for letting us be your partner! I look forward to a successful 2016 and working together to create many more new beginnings for our future residents!

John Wiechmann President/CEO

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mheg portfolio summary

12,982 units

15,000 units

12,000 units

9,000 units

6,000 units

3,000 units

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 2009

2010

2011

2012

2013

2014

2015

0

59%

37% 24%

81% 42%

Development Location

Development Size

4% 37%

39% 0-12 13-24 25+

Construction Type 6%

ARKANSAS

Development Status 9%

14%

Rural Urban Suburban

MHEG TOTAL

3

80%

9%

New Rehab Historic Rehab

COLORADO

2%

Operational In Lease-Up Construction Disposed

IOWA

KANSAS

Breakdown of 33% Development Type 9% 16% Multifamily Age Restricted Single Family Special Needs/ Transitional

MISSOURI

NEBRASKA

OKLAHOMA

Developments

438

5

4

71

115

8

184

47

Housing Units

12,982

185

403

2,396

3,101

608

4,532

1,618

Counties

163

5

4

27

47

7

47

22

Cities

201

5

4

33

58

7

61

29

1 - 250 units 250 - 500 units 500 - 1,000 units 1,000+ units

S. DAKOTA

TEXAS

2

2

55

84

2

2

2

2

All information compiled from 12/31/2015 data.

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investor & equity summary Nebraska Affordable Housing Fund 1993, L.P. l $4.75 million l 8 investors Bank of the West Berkshire Hathaway, Inc. Central States Health & Life Co

Farmers & Merchants Investment Jefferson Pilot Level 3 Communications

Mutual of Omaha Insurance Co US Bancorp

Nebraska Affordable Housing Fund 1994, L.P. l $3.25 million l 5 investors Bank of the West Berkshire Hathaway, Inc.

Jefferson Pilot Mutual of Omaha Insurance Co

US Bancorp

Nebraska Affordable Housing Fund 1995, L.P. l $5.25 million l 11 investors Bank of the West Behlen Mfg. Company Berkshire Hathaway, Inc. Cargill Financial Service Corp.

Consolidated Companies Fannie Mae Farmers & Merchants Investment Jefferson Pilot

Level 3 Communications Qwest Communications, Inc. US Bancorp

Nebraska Affordable Housing Fund 1996, L.P. l $7 million l 13 investors Bank of the West Berkshire Hathaway, Inc. Cargill Financial Service Corp.

Consolidated Companies Fannie Mae

Farmers & Merchants Investment First State Bank InfoUSA Jefferson Pilot Level 3 Communications

Pinnacle Bank US Bancorp Wells Fargo

Nebraska Affordable Housing Fund 1997, L.P. l $6 million l 8 investors Bank of the West Berkshire Hathaway, Inc. Fannie Mae

Farmers & Merchants Investment First State Bancshares Jefferson Pilot

US Bancorp Wells Fargo

Equity Fund of Nebraska VI, L.P. l $16 million l 12 investors Bank of America CDC Bank of the West Berkshire Hathaway, Inc. Equitable Federal Savings Bank

Fannie Mae Farmers & Merchants Investment Jefferson Pilot Summit Investments

United Nebraska Bank US Bancorp Wells Fargo Windstream Communications

Equity Fund of Nebraska VII, L.P. l $15.75 million l 13 investors Bank of the West Berkshire Hathaway, Inc. Commerce Bank, N.A. Equitable Federal Savings Bank Fannie Mae

Farmers & Merchants Investment First State Bancshares Nelnet Pinnacle Bank Summit Investments

US Bancorp Wells Fargo Windstream Communications

First State Bank Marine Bank Nelnet Pinnacle Bank Summit Investments

TierOne Bank US Bancorp Wells Fargo

Equity Fund of Nebraska IX, L.P. l $36.05 million l 14 investors Bank of the West Berkshire Hathaway, Inc. Country Bank Shares Fannie Mae Farm & Home Insurance Agency

Farmers & Merchants Investment Freddie Mac Home Federal Savings & Loan Nelnet Pinnacle Bank

Summit Investments TierOne Bank US Bancorp Wells Fargo

Bank of the West Country Bank Shares Fannie Mae Farm & Home Insurance Agency

Farmers & Merchants Investment Freddie Mac Nelnet Pinnacle Bank

TierOne Bank US Bancorp Wells Fargo

Equity Fund of Nebraska X, L.P. l $44.5 million l 11 investors

Equity Fund of Nebraska XI, L.P. l $45 million l 10 investors Bank of the West Fannie Mae Farm & Home Insurance Agency Farmers & Merchants Investment

Freddie Mac Nelnet Pinnacle Bank TierOne Bank

US Bancorp Wells Fargo

Equity Fund of Nebraska XII, L.P. l $40 million l 9 investors Bank of Bennington Bank of the West Fannie Mae

Farm & Home Insurance Agency Farmers & Merchants Investment North Central Bancorp, Inc.

Nebraska Fund XIII, L.P. l $19 million l 6 investors Farm & Home Insurance Agency Farmers & Merchants Investment

Nelnet North Central Bancorp, Inc.

Principal Financial Services TierOne Bank Wells Fargo Principal Financial Services Wells Fargo

Nebraska Fund XIV, L.P. l $26.5 million l 12 investors Farm & Home Insurance Agency Farmers & Merchants Bank Farmers & Merchants Investment Geneva State Bank

Home Federal Savings & Loan Nelnet Pinnacle Bank Platte Valley Bank

RiverHills Bank South Central State Bank Valley Bank & Trust Company Wells Fargo

Nebraska Fund XV, L.P. l $38 million l 21 investors Adams Bank & Trust Company Adams County Bank Bank of the West Capitol Federal Savings Bank Countryside Bank Farm & Home Insurance Agency Farmers & Merchants Investment

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First Community Bank of Beemer Five Points Bank Henderson State Bank Home Federal Savings & Loan Horizon Bank Nelnet North Central Bancorp, Inc.

Adams Bank & Trust Company Bank of the West Capitol Federal Savings Bank Countryside Bank Farm & Home Insurance Agency Farmers & Merchants Investment

First National Bank of Omaha Nelnet North Central Bancorp, Inc. Northwestern Mutual Life Insurance Pinnacle Bank Platte Valley Bank

Nebraska Fund XVII, L.P. l $31 million l 17 investors Adams Bank & Trust Company Bank of the West Bruning State Bank Capitol Federal Savings Bank Everett Investments Farm & Home Insurance Agency

Farmers & Merchants Bank Farmers & Merchants Investment First Community Bank of Beemer First National Bank of Omaha Five Points Bank Henderson State Bank

South Central State Bank Valley Bank & Trust Company Wells Fargo West Gate Bank

Nelnet North Central Bancorp, Inc. Pinnacle Bank Wells Fargo West Gate Bank

Kansas Equity Fund I, L.P. l $3.125 million l 9 investors Bank of the West Central National Bank Commerce Bank, N.A.

ESIC on behalf of Fannie Mae First National Bank of Hutchinson Industrial State Bank

Landmark National Bank The Mission Bank Valley View Bank

Kansas Equity Fund II, L.P. l $7.6 million l 11 investors Bank of the West Capital City Bank Capitol Federal Savings Bank Commerce Bank, N.A.

Fannie Mae Farmers & Merchants Investment First National Bank of Olathe Industrial State Bank

Kansas Equity Fund III, L.P. l $24 million l 9 investors Bank of the West Capitol Federal Savings Bank Commerce Bank, N.A.

Fannie Mae Farmers & Merchants Investment Freddie Mac

Kansas Equity Fund IV, L.P. l $28 million l 9 investors Bank of the West Capitol Federal Savings Bank Commerce Bank, N.A.

Fannie Mae Farmers & Merchants Investment Freddie Mac

Landmark National Bank The Mission Bank Wells Fargo

INTRUST Bank, N.A. The Mission Bank Wells Fargo INTRUST Bank, N.A. UMB Bank, n.a.

Wells Fargo

Kansas Equity Fund V, L.P. l $19.4 million l 11 investors

Equity Fund of Nebraska VIII, L.P. l $16.5 million l 13 investors Bank of the West Country Bank Shares Fannie Mae Farm & Home Insurance Agency Farmers & Merchants Investment

Nebraska Fund XVI, L.P. l $36.4 million l 16 investors

Reinke Mfg. Company Seaboard Corporation South Central State Bank State National Bank & Trust Co Valley Bank & Trust Company Wells Fargo World’s Foremost Bank

Bank of the West

First National Bank of Olathe

The Mission Bank

Capitol Federal Savings Bank

Freddie Mac

UMB Bank, n.a.

Fannie Mae

Kaw Valley Bank

Wells Fargo

Farmers & Merchants Investment

Landmark National Bank

Kansas Fund VI, L.P. l $14.5 million l 9 investors Capital City Bank

Farmers & Merchants Investment

Kaw Valley Bank

Capitol Federal Savings Bank

First Federal Savings & Loan Assoc

Principal Financial Services

Commerce Bank, N.A.

First National Bank of Hutchinson

UMB Bank, n.a.

Kansas Fund VII, L.P. l $16.25 million l 6 investors Capitol Federal Savings Bank

Commerce Bank, N.A.

Kaw Valley Bank

Citizens Savings & Loan Assoc, FSB

Farmers & Merchants Investment

Wells Fargo

Kansas Fund VIII, L.P. l $28.5 million l 11 investors Bank of Hays

Citizens State Bank of Moundridge

Seaboard Corporation

Capital City Bank

Commerce Bank, N.A.

United Bank & Trust

Capitol Federal Savings Bank

Farmers & Merchants Investment

Wells Fargo

Central National Bank

Kaw Valley Bank

Kansas Fund IX, L.P. l $37.4 million l 13 investors Bank of the West

Farm Bureau Life Insurance Co

Northwestern Mutual Life Insurance

Capital City Bank

Farmers & Merchants Investment

UMB Bank, n.a.

Capitol Federal Savings Bank

INTRUST Bank, N.A.

Wells Fargo

Commerce Bank, N.A.

Labette Bank

Equity Bank

Mc Elroy’s Inc.

Kansas Fund X, L.P. l $29.5 million l 12 investors Bank of the West Capital City Bank Capitol Federal Savings Bank Commerce Bank, N.A.

Farmers & Merchants Investment Garmin International Girard National Bank INTRUST Bank, N.A.

Iowa Equity Fund I, L.P. l $10 million l 8 investors Bank of the West Central State Bank Dubuque Bank & Trust CDC

Fannie Mae First National Bank of Waverly Grundy Nattional Bank

Iowa Equity Fund II, L.P. l $19.9 million l 6 investors Bank of the West Fannie Mae

Farmers & Merchants Investment First National Bank of Waverly

Morgan Federal Bank UMB Bank, n.a.

United Bank & Trust Wells Fargo Maquoketa State Bank Wells Fargo

Principal Financial Services Wells Fargo

Iowa Equity Fund III, L.P. l $25.255 million l 6 investors Bank of the West Community State Bank - Ankeny

Fannie Mae Principal Financial Services

TierOne Bank Wells Fargo

Iowa Fund IV, L.P. l $22 million l 7 investors Community State Bank - Tipton

Midwest Heritage Bank

Farmers & Merchants Investment

Principal Financial Services

Fidelity Bank & Trust

Security State Bank

Wells Fargo

Bankers Trust Carroll County State Bank Cedar Rapids Bank and Trust Central Bank

Community State Bank - Tipton Farmers & Merchants Investment Fidelity Bank & Trust First Federal Savings Bank of Iowa

Iowa Fund VI, L.P. l $39.75 million l 11 investors Bank of the West Bankers Trust Bankers Trust Company Capitol Federal Savings Bank

Farmers & Merchants Investment First National Bank of Waverly MidwestOne Bank Northwestern Mutual Life Insurance

Iowa Fund VII, L.P. l $32.25 million l 10 investors Bank of the West Bankers Trust Company Capitol Federal Savings Bank Community State Bank - Ankeny

MHEG Community Fund 41, LP l $25 million l 20 investors

Security State Bank Treynor State Bank Wells Fargo West Bank

Farmers & Merchants Investment First National Bank of Omaha Northwestern Mutual Life Insurance Two Rivers Bank & Trust

Principal Financial Services Seaboard Corporation Wells Fargo

Principal Financial Services

Bank of the West Fannie Mae

JP Morgan Chase Principal Financial Services

Oklahoma Fund III, L.P. l $25 million l 8 investors American Fidelity Assurance Co BancFirst Bank of Oklahoma

Commerce Bank, N.A. Farmers & Merchants Investment Lifeshield National Insurance Co

American Fidelity Assurance Co BancFirst Bank of Oklahoma

Bank of the West Capitol Federal Savings Bank Commerce Bank, N.A.

MHEG Fund 40, LP l $116.25 million l 14 investors BancFirst Bank of the West Capitol Federal Savings Bank Colorado Federal Savings Bank Farm Bureau Life Insurance Co

First National Bank of Omaha Garmin International MetLife

Mutual of Omaha Bank Northwestern Mutual Life Insurance Wells Fargo

American Fidelity Assurance Co

Elkhorn Valley Bank & Trust

North Central Bancorp, Inc.

Andover State Bank

Farm & Home Insurance Agency

Pinnacle Bank

Bank of Hays

INTRUST Bank, N.A.

The Citizens State Bank

Bank SNB

Iowa State Bank

UMB Bank, n.a.

Capital City Bank

Kaw Valley Bank

West Bank

Commerce Bank, N.A.

Landmark National Bank Capitol Federal Savings Bank Colorado Federal Savings Bank First National Bank of Omaha

MetLife Northwestern Mutual Life Insurance Wells Fargo

MHEG Community Fund 45, LP l $16.5 million l 16 investors

Fidelity Bank First Bank Trust of South Dakota First National Bank of Omaha Garmin International GuideOne Mutual Insurance Co

Mutual of Omaha Bank Northwestern Mutual Life Insurance Platte Valley Bank Wells Fargo

$1.5B

15%

American Fidelity Assurance Co Bankers Trust Commerce Bank, N.A. Farm & Home Insurance Agency Farmers & Merchants Investment Girard National Bank

Horizon Bank INTRUST Bank, N.A. Landmark National Bank Morgan Federal Bank Nelnet North Central Bancorp, Inc.

Nebraska Funds Kansas Funds Iowa Funds Oklahoma Funds MHEG Regional Funds

13%

Equity Breakdown by 10% Region

$1.2B

Morgan Federal Bank

BancFirst Bank of the West Bank SNB

Farmers & Merchants Investment Northwestern Mutual Life Insurance Wells Fargo

28%

Farm & Home Insurance Agency

MHEG Fund 44, LP l $143.2 million l 9 investors

Seaboard Corporation Wells Fargo

Oklahoma Fund IV, L.P. l $42.9 million l 9 investors

Pinnacle Bank South Central State Bank The Citizens State Bank UMB Bank, n.a.

West Bank

MHEG Community Fund 43, LP l $17.5 million l 17 investors

Oklahoma Equity Fund II, L.P. l $40 million l 6 investors Arvest BancFirst

North Central Bancorp, Inc.

Girard National Bank Great Southern Bank INTRUST Bank, N.A. Iowa State Bank Lincoln Federal Savings Bank

BancFirst Capitol Federal Savings Bank Colorado Federal Savings Bank

Wells Fargo West Bank

Fannie Mae INTRUST Bank, N.A.

Farmers & Merchants Investment

American Fidelity Assurance Co Assurity Life Insurance Co Commerce Bank, N.A. Community State Bank - Ankeny Equity Bank

MHEG Fund 42, LP l $149 million l 9 investors

Oklahoma Equity Fund I, L.P. l $25 million l 5 investors Aegon Bank of the West

Adams Bank & Trust Company

Pinnacle Bank The Citizens State Bank UMB Bank, n.a.

West Gate Bank

$1.38 billion

Iowa Fund V, L.P. l $25 million l 12 investors

34%

$900M

$600M

$300M

All information compiled from 12/31/2015 data.

1993

0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

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2015 developments In 2015, MHEG partnered with 28 developers to close $159 million in equity for 38 developments, creating 1,685 affordable housing units. This included 12 age restricted developments, 20 multifamily developments, three single family home properties and three special needs housing developments. Projects ranged from an 8 unit rural deal to a 237 unit urban deal and represented 35 Midwest communities.

Arkansas

Kansas

BRAD Black River Housing, an Arkansas LP, 32 multifamily units

Bluffview Place, LLC, 28 multifamily units

Emerald Village at Hope, LP, 48 age restricted units

Chestnut Place, LLC, 8 age restricted units

Huntsville Town Branch Limited Partnership, 25 age restricted units

Commerce Gardens Apartments, LLC, 96 multifamily units

Meadows at Forrest City LP, 48 multifamily units

Eastwood Apartments, LLC, 12 age restricted units

Colorado

Gardner Properties, L.P., 24 multifamily units Heritage Hawthorne Partners II, LLC, 16 multifamily units

Highland West LLLP, 237 age restricted units

Parsons Housing Partners, LP, 35 age restricted units

Northfield at Stapleton Apartments LLLP, 84 multifamily units

Prairie Trails Partners III, LLC, 32 multifamily units

Pinewood 2, LLLP, 45 multifamily units

Rockville Place, L.P., 32 multifamily units

Iowa

Simmons Senior Housing, LP, 19 age restricted units Vintage Apartments at Hillsboro LLC, 12 multifamily units

Goldfinch Grove, LLC, 12 multifamily units

Western Housing Partners, LP, 35 age restricted units

Southern Pointe, LLLP, 30 multifamily units

Willow Ridge Apartments, L.P., 42 multifamily units

Missouri

Nebraska

Brookdale Partners, LP, 102 multifamily units

3101 S. 24th Street, LLC, 20 multifamily units

Interfaith SFKH, LP, 157 age restricted units

Clary Village, LLC, 16 age restricted units

Pathways Warrensburg Housing Associates, LP, 35 special needs units

Judy Meadows, LP, 18 age restricted units

Saint Street Apartments, L.P., 24 special needs units

Prospect Village Limited Partnership, 30 single family units

Sycamore Renaissance, LP, 179 multifamily units

Victory Place, LLC, 26 special needs units

Oklahoma Autumn Creek Villas II, LP, 28 age restricted units

Wilderness Falls II, LLC, 14 multifamily units Windhaven Estates, LLC, 16 multifamily units

Hugo Affordable Housing II, LLC, 10 single family units

Texas

Hugo Affordable Housing III, LLC, 10 single family units

OPG Brookside Partners, LLC, 48 multifamily units

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In 2015, MHEG’s end results will help over 1,600 families have a new beginning in a safe and affordable home.

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9

age restricted housing We closed $49 million in equity for 12 age restricted developments in 2015, creating 638 units.

Simmons Senior Housing, LP Developed by Zimmer Development Company, Simmons Senior Housing will offer 19 new and newly rehabbed units for persons 55+. Located in Kansas City, Kansas, Simmons Senior includes the conversion and rehabilitation of two historic properties along with new construction. Once complete the project will consist of two studio units, six one-bedroom and 16 two-bedroom units.

Amenities for the property will include off-street parking, green space, community room, laundry facilities, BBQ grill and outdoor seating area.

Supportive services will also be offered such as, Meals on Wheels and Wyandotte County Area Agency on Aging services for seniors. (pictured on opposite page)

Emerald Village at Hope, LP Located in Hope, Arkansas, Emerald Village will consist of the new construction of 48 units for persons 55+. All units will be two-bedroom and one bath units at approximately 950 square feet.

The developer, KWL Properties, will incorporate a number of energy efficient features into the units, including: Energy Star appliances, electric heat pumps rated 9.0 HSPF with 16 SEER, ceiling insulation and R-19 wall insulation, as well as CFL lighting in all fixtures. Residents of Emerald Village will also enjoy amenities such as a fitness center, playground, on-site leasing office, business center, library and a picnic area. (pictured to the right)

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OPG Brookside Partners, LLC The Reserves at Brookside, located in Borger, Texas, is a 48 multifamily unit property developed by Overland Property Group. Brookside will mirror similar projects in which MHEG has partnered with OPG. The building exterior will feature hardi-plank siding, stone accents, varied elevations and pitched roofs. The project will offer two- and three-bedroom units in a garden style building. A clubhouse will be available to all residents and will feature a fitness center, community room, computer learning center and property management office. The property will also include a BBQ area, basketball court and will incorporate green design elements. (pictured above)

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multifamily housing We closed over $90 million in equity for 20 multifamily developments in 2015, creating 912 units in 20 communities in the Midwest.

Pinewood 2, LLLP

Southern Pointe, LLLP

Located in Breckenridge, Colorado, Pinewood Village II will serve a great need for work force housing.

Breckenridge, a well-known tourist destination, has very few affordable housing options available with most located in nearby towns. Pinewood II will be a 100% LIHTC, with all 45 units set aside at 60% AMI. Residents will share a playground and BBQ area with Pinewood Village I. This was MHEG’s first time partnering with the Town of Breckenridge Housing Authority, who served as the developer for this property.

MHEG again partnered with Community Housing Initiatives to develop Southern Pointe. Located in Spencer, Iowa, this development will provide 30 units for families in the community. Southern Pointe will have 26 three-bedroom units and 4 four-bedroom units. The building will be two stories consisting of some two-story townhomes units as well as garden styles units. Amenities will include video security, storage units, free internet and an in-unit washer/ dryer.

(pictured above and below)

(pictured on page 8)

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single family homes

We closed $8.3 million in equity for three single family home developments in 2015, creating 50 units in two communities in the Midwest.

Hugo Affordable Housing II, LLC & Hugo Affordable Housing III, LLC Located in Hugo, Oklahoma, the second and third phases of Huge Affordable Housing will provide 20 newly constructed single family homes. The development will offer both three- and four-bedroom homes, each with two baths, a two car garage, dishwasher, a security system and storm shelter. Other amenities for the development include an outdoor covered seating area, walking trail, and soccer field.

The homes will be constructed adjacent to the existing 25 homes from Phase I. Sunview Development, LLC served as the developer for these projects. (pictured above)

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special needs housing We closed over $11 million in equity for three special needs developments in 2015, creating 85 units in three communities.

Saint Street Apartments, LP Developed by North Star Housing, Saint Street Apartments is a project devoted exclusively to providing independent living opportunities for persons with physical or mental disabilities. Located in Branson, Missouri, Saint Street Apartments will offer 24 newly constructed units. Support services will be tailored to meet the individual needs of the residents. (pictured above)

Victory Place, LLC Located on the VA medical campus in Grand Island, Nebraska, Victory Place will offer 26 units for homeless and at-risk of becoming homeless Veterans and their families. The development will consist of 20 onebedroom and one bath units and 6 two-bedroom and two bath units. The two-story building will include case management and property management offices, a laundry facility, common area and meeting rooms. MHEG is excited to partner with developer Pioneer Group to provide housing for those who have served our country. (pictured below)

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board of directors Chairman of the Board: Dick Schenck - Retired Senior Vice President, Wells Fargo Vice Chairman of the Board: David Fisher - Senior Executive Vice President/COO, FHLBank Topeka Secretary of the Board: Rick Jackson - Executive Vice President/Chief Lending Officer, Capitol Federal Savings Bank Dennis Brand - CEO, BancFirst Frank Hays - President, Hayes & Associates Chris Hensley - Retired Vice President, Bank of the West Dick Hoiekvam - Retired Partner, Deloitte Kirk Kellner - Tri-State Regional President, Wells Fargo Barry Sandstrom - Retired President/CEO, Home Federal Savings & Loan

committee members Budget & Compensation Committee

Dennis Brand - BancFirst David Fisher - FHLBank Topeka Rick Jackson - Capitol Federal Savings Bank Barry Sandstrom - Home Federal Savings & Loan

Central Region Operations & Investment Committee Bob Arthur - Commerce Bank, N.A. Mark Dennett - INTRUST Bank, N.A. David Fisher - FHLBank Topeka Bob Kobbeman - Capital City Bank Lloyd Rainge - Capitol Federal Savings Bank Dick Schenck - Retired Senior Vice President, Wells Fargo Michael Scheopner - Landmark National Bank

Northeast Region Operations & Investment Committee Ed Benjamin - MidwestOne Bank Jennifer Cooper - Bankers Trust Tom Hanafan - Former Mayor of Council Bluffs, Iowa Chris Hensley - Retired Vice President, Bank of the West Kristi Knous - Community Foundation of Greater Des Moines Dick Schenck - Retired Senior Vice President, Wells Fargo Susan Whitson - First National Bank of Waverly

Northwest Region Operations & Investment Committee David Fisher - FHLBank Topeka Tim Hart - First National Bank of Omaha Dick Hoiekvam - Retired Partner, Deloitte Justin Horst - Pinnacle Bank Randy Ilich - Colorado Federal Savings Bank Dick Schenck - Retired Senior Vice President, Wells Fargo

South Region Operations & Investment Committee Brent Bates - Bank SNB Roger Beverage - Oklahoma Bankers Association Dennis Brand - BancFirst Carl Hudgins - Commerce Bank David King - First united bank Mike Wynn - Mabrey Bank

15

Audit Committee

Kirk Kellner - Wells Fargo Chris Hensley - Retired Vice President, Bank of the West Dick Hoiekvam - Retired Partner, Deloitte Dick Schenck - Retired Senior Vice President, Wells Fargo

mheg staff

John Wiechmann President / Chief Executive Officer

Jason Main Chief Financial Officer

Scott Fitzpatrick Jen Oscarson Vice President - Business Vice President - Business Development Officer Development Officer Northeast Region Northwest Region

Becky Christoffersen Chief Investment Officer

Ann Burge Chief Operating Officer

Tom Stratman Vice President of Acquisitions

Shannon Foster Accounting Manager

Sammy Ehtisham Assistant Vice President of Acquisitions

Pat Michaelis Vice President - Business Development Officer Central Region

Andrea Frymire Vice President - Business Development Officer South Region

Laurie Stephenson Deputy Director of Compliance

Jordan Abboud Deputy Director of Special Assets

Ryan Harris Deputy Director of Asset Stabilization

Cindy Koster Senior Acquisitions Manager

Jake Jacobsen Construction Manager

Dustin Daugherty Construction Manager

Rachel Wiesner Investor Relations Manager

Shannon Powers Closing Coordinator

Deb Swanson Closing Coordinator

Chris Imming Acquisitions Manager

Traci Collins Acquisitions Manager

Shannon Johnson Financial Analyst

Brett Helt Financial Analyst

Steve Gross Financial Analyst

Amanda Bockelman Financial Analyst

Amy Leonard Asset Manager

Shellie Vandeman Compliance Specialist

Sharita Nelson Compliance Specialist

Dana Oswald Accounting Coordinator

Lisa Bryan Administrative Coordinator

Cecelia Grossman Accounting Specialist

Keely McAleer Corp. Communications & HR Administrator

Brooke Smith Asset Manager

Cindy Wieck Administrative Assistant

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Midwest Housing Equity Group

515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 www.mheginc.com