2015 oct mheg newsletter

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

Volume 8, 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

Upcoming Events

6

Monthly LIHTC Rates

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

June 2015 70% PV

30%PV

AFR

7.47%

3.20%

2.50%

July 2015 70% PV 7.52%

30%PV

AFR

3.22%

2.74%

August 2015

KHRC Board Meeting: Oct. 1st Topeka, KS - KDFA Board Room KHRC Public Hearing for QAP: Oct. 14th Topeka, KS - KDFA Board Room **QAP for 2016 applications has significant changes in Developer Fees** IFA Board Meeting: Oct. 7th Des Moines, IA - IFA Office ADFA Board Meeting: Oct. 15th Little Rock, AR - ADFA Office TDHCA Board Meeting: Oct. 15th Austin, TX - Capitol Extension Auditorium NIFA Board Meeting: Oct. 16th Lincoln, NE - NIFA Board Room CHFA Board Meeting: Oct. 22nd Denver, CO - CHFA Board Room SDHDA Annual Housing Conference: Oct. 27th-28th Pierre, SD - Best Western Ramkota RiverCentre

30%PV

AFR

7.53%

3.23%

2.82%

September 2015

Upcoming Events October

70% PV

70% PV

November

IFA Board Meeting: Nov. 4th Des Moines, IA - IFA Office

7.51%

December

30%PV

AFR

3.22%

2.64%

October 2015

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

70% PV

30%PV

AFR

7.49%

3.21%

2.58%

KHRC Board Meeting: Nov. 5th Topeka, KS - KDFA Board Room

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

TDHCA Board Meeting: Nov. 11th Austin, TX - Capitol Extension Auditorium

MHDC Commission Meeting: Dec. 4th Columbia, MO - TBD

OHFA Board of Trustees Meeting: Nov. 18th Oklahoma City, OK - OHFA’s Conference Room

CHFA Board Meeting: Dec. 10th Denver, CO - CHFA Board Room

Units

Annual OK Luncheon: Nov. 18th OK City, OK - Oklahoma History Center

Counties Represented

157

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

Cities Represented

193

NIFA CRANE Meeting: Nov. 18th Lincoln, NE - NIFA Board Room

ADFA Board Meeting: Dec. 17th Little Rock, AR - ADFA Office

Vacancy Percentage

6.28%*

Debt Coverage Ratio

1.73*

ADFA Board Meeting: Nov. 19th Little Rock, AR - ADFA Office

TDHCA Board Meeting: Dec. 17th Austin, TX - Capitol Extension Auditorium

Portfolio Update Developments

417 12,429

Information current as of 10/01/15 *Percentage compiled from 6/30/15 figures using stabilized developments only, vacancy percentage is using economic vacancy.

CHFA Board Meeting: Nov. 19th Denver, CO - CHFA Board Room 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.

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

6

October 2015

2015 Ad Astra Award Winners This past August the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Manhattan, 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 moderateincome Kansans.

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

Innovation in Housing and Community Development: Baxter Springs Senior Residences (BSSR, LP of MHEG Fund 40) developed by Prairie Fire Development Group and located in Baxter Springs, Kansas.

Michaelis (MHEG), Marilyn De La Pena (Prairie Fire Development) and Kelly Hrabe (Prairie Fire Development).

Below: Partners of House to Home, Mesner Development Co, MHEG, KHRC, CHWC.

Special Achievement in Affordable Housing Development Urban: House to Home Riverview/Escalade, LLC (MHEG Fund 40) developed by Mesner Development Co and Community Housing of Wyandotte County (CHWC), located in Kansas City, Kansas.

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

Asset Manager Needed

Spectrum’s Charitable Giving Initiative

MHEG is still looking for an Asset Manager to join our Oklahoma City office team.

In 2012, the Spectrum Companies introduced their “Charitable Giving Initiative” program, which makes donations to certain charities based on recommendations of their partners.

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

In 2015, at the suggestion of MHEG, Spectrum selected New Beginnings, Inc. of Hutchinson, Kansas as one of their charities.

They received over $1,600. New Beginnings was created in 1986 with the mission to shelter and rebuild human lives while fostering the development of affordable housing.

The Spectrum Companies have been providing compliance services for over 25 years for affordable housing. MHEG is proud to partner with both of these great organizations.

AHF Recognize Wiechmann As 2015 Young Leader Each year since 2008, the Affordable Housing Finance magazine recognizes a handful of individuals 40 and under who are making an impact in the affordable housing industry with the Young Leader Award. The award was created as a way to celebrate and support a new generation of leaders who are helping to build organizations and finding innovative ways to deliver affordable housing.

MHEG is proud to announce that this year’s group includes one of our own team members, John Wiechmann.

Since joining MHEG in 2012 as CEO, John has diversified our investor base and expanded our operations from four to ten states.

Additional honorees of this year’s award are: Sasha-Gaye Angus (Michaels Development Co), Andrew Bailey (Millennia Companies), Karla Burck (Herman & Kittle Properties), Michael Duffy (McCormack Baron Salazar), and Matt Rule (National Church Residences).

The Young Leaders will be honored at the AHF Live Conference in November in Chicago. Be looking for the October issue of the AHF magazine, which will feature a story showcasing each of the leaders.

1

Volume 8, 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!

Fall is here. Shorter days, cooler nights and, more importantly, college football. It’s hard to believe that there are only three months left in 2015! As October begins, I hope you are seeing the fruits of your previous nine months of labor begin to ripen and that everything is starting to “fall” into place.

Here at MHEG, our latest funds - MHEG Fund 44 and MHEG Community Fund 45 - are fully subscribed. This means we have $165 million available to help finance more quality affordable homes and change even more lives over the next year! A big “thank you” to our investor partners. Without your commitment to affordable housing and your partnership with MHEG, we would not be able to fulfil our mission. A big thanks to our developer partners as well. All this capital is meaningless without your efforts and determination to develop, construct and then operate these developments. Because of your trust and partnership with us, we’ve invested $160 million in thirty-five new properties over the past twelve months. These results don’t fall into place on their own. We need the expertise and experience of the entire MHEG team to meet our goals. Thank you, team, for all your hard work and dedication!

Over the course of the summer, we hosted customer appreciation dinners in Missouri, Kansas and Iowa during each State’s housing conference. These dinners are a great opportunity for MHEG to express our gratitude and to build stronger relationships with you in a more relaxed setting. Our next appreciation dinner will be in South Dakota at the end of this month for those that will be attending the

South Dakota Housing Conference. I hope you have the chance to attend at least one of these dinners at some point during the year.

Another important item that has fallen into place recently is the addition of our ninth board member. We are very excited to welcome Frank Hayes to the MHEG Board of Directors! Hayes is the majority owner and President of Hayes & Associates, LLC, a CPA and consulting firm he founded in 1983. He has 40 years of experience in the financial services industry, including previous roles as the director of the tax department at Grant Thorton CPAs and as a revenue agent for the Internal Revenue Service. In addition to his new role on MHEG’s Board of Directors, Hayes also serves as a member of the Mutual of Omaha Bank Board of Directors, the Companion Life Insurance Board of Directors, the Creighton University Board of Trustees, the Omaha Business Ethics Alliance, the Great Plains Black Museum and Kaneko.

In close, I want to congratulate Sister Marilyn Ross on her recent retirement from Holy Name Housing Corporation. Over the past three decades she has been a prominent advocate of affordable housing in Omaha. MHEG was extremely fortunate to be on the receiving end of her guidance and knowledge during her tenure on our Board. Thank you, Sister for your many years of service! We wouldn’t be where we are today without you! See page 3 for more on Sister Marilyn and the role she played in the housing community.

Enjoy the fall!

There is the old adage that ‘time flies when you are having fun’, that could not have been truer this past month. In September we saw several developments achieve construction completion, developers hold ground breakings and a lot of conference activity.

The Iowa Housing Conference was held September 9th and 10th in Coralville, Iowa. The conference saw outstanding attendance. MHEG once again sponsored our annual dinner for our industry partners and friends at the Linn Street Cafe. It was an evening filled with great conversation and an excellent meal.

In addition, we attended the Iowa League of Cities conference that was held in Cedar Rapids on September 23rd and 24th. We spoke

October 2015

with several cities from all around the state which expressed that their communities have a great need for affordable housing.

The need for housing reminds us that it is important to make sure that our elected officials are aware of and co-sponsor the pending legislation in the House and the Senate: HR1142 and S1193. In addition, we need to reinforce the importance of the HOME Funds in creating affordable housing. The lack of HOME funds this year is already preventing some of the planned, much needed housing developments from moving forward into the upcoming round of Iowa tax credit applications.

Northwest Region Update Jen Oscarson

The Northwest Region has been busy with tax credit application cycles and meeting new and potential partners across the expansion states. Just as important if not more important than our expansion is the long term partners of MHEG. Nebraska has many long standing partners and investors whom I would like to thank this quarter. One in particular is Sister Marilyn Ross who after 30+ years has retired as Executive Director of Holy Name Housing Corporation (HNHC).

Our partnership with HNHC and Sister Marilyn dates back to MHEG’s inception in 1993. She served on MHEG’s Board of Directors from 1993-2010, nine of those years acting as Chair of the Board. Under Sister’s leadership, HNHC has built/renovated 450 houses for sale, constructed another 150 houses for the rent-to-own program and built almost 100 more homes for seniors all in the north Omaha community.

She was instrumental in establishing the Nebraska Housing Trust Fund and has helped many other organizations with their development efforts all while reminding us all of the importance of looking at affordable housing through the lens of the resident and their success.

While Sister Marilyn is passing on the reins, Michael Gawley has been named as HNHC’s new Executive Director, we look forward to our continued partnership with HNHC. Our most current partnership, Prospect Village, involves 30 single family homes to be constructed on scattered sites in north Omaha.

Again, thank you to all of our current partners and investors without you we could not have invested over $425 million in the region over the last 20 plus years.

Left: MHEG hosts it’s 8th Annual Kansas Appreciation Dinner on August 27, 2015, in Manhattan, Kansas, at the Bluemont Hotel.

Middle: Congresswoman Lynn Jenkins speaks during a legislative session at the KHA conference, which was held in conjunction with the Kansas Housing Conference.

Right: Pat Michaelis (MHEG), John Clarke (Bank of Hays), Dan Beal (McElroys) and Dave Fisher (FHLBank Topeka) team up for the KHA’s 2nd Annual Golf Outing.

Central Region Update Pat Michaelis

In August we sponsored a Kansas dinner at the Bluemont Hotel in Manhattan overlooking Aggieville. We had a full house with over 80 partners in attendance. Good food, friendship and conversation. We also enjoyed a Missouri dinner in July at Cooper’s Hawk Winery in Kansas City, Missouri. These dinners provide a way for our partners to enjoy an evening together. We are all in this business collectively, depend on each other and need to be accountable. It is important we know each other personally.

The Kansas Housing Association (KHA) Annual meeting, held during with the KS Housing Conference, was a success.

Presenters were US Congresswoman Lynn Jenkins, Laird Veatch (Deputy Athletics Director, KSU), and Fred Bentley (Director Rental Housing Program, KHRC). This is not new news, but Representative Jenkins is a true advocate of affordable housing and the LIHTC program. Her continued support as a member of the House Ways and Means Committee is critical and very much appreciated. KHA also held its second annual golf tournament at Colbert Hills in Manhattan. If you haven’t played it, you should take the time do so. It is located in the beautiful Flint Hills area of Kansas. Forty golfers helped support KHA’s activities for the year. Prizes were awarded including 2nd place award to my team (pictured above)! For more information on KHA and to learn how to join, visit their website www.kansashousingassociation.com.

Missouri Applications were due September 4th. We were fortunate to sponsor several and wish our partners success in receiving an award from MHDC. I know it is early, but we are starting to discuss potential properties for the KS applications due February 5th. Please contact us when you are ready; we will gladly provide assistance as needed.

As always, we appreciate your business. Do not hesitate to contact Chris, Brooke, Lisa, or me. All the best to you.

2

Sister Marilyn Ross’s retirement celebration on September 10, 2015, in Omaha, Nebraska. Photos taken by DaRon Grant.

South Region Update Andrea Frymire The Southern Region had a busy summer with awards announced in Arkansas and Texas, as well as Round 2 Applications due in Oklahoma.

In June we closed on our second development in Texas, Brookside Partners in Borger, developed by Overland Property Group. We are excited to partner again with the OPG team on The Reserves at Summit West, which received an allocation of 2015 tax credits from TDHCA. This development will be located in Wichita Falls - where we just recently had a ribbon cutting for our first Texas development, The Reserves at Maplewood. The mayor and state representative all spoke on the positive impact this property has had on the community.

In Arkansas, we have closed three developments with two new partners.

The first is an RD Acquisition Rehab in Huntsville. We are pleased to be working with PDC Companies on this senior development.

We have also closed two developments with KWL. One is a senior development in Hope and the second is a family development in Forrest City. Each of these will add 48 units of much needed housing

to their respective communities. We appreciate the opportunity to work with both of these outstanding organizations in the years to come.

In Oklahoma, we will be adding additional phases to several developments. We recently closed Autumn Creek Villas Phase II with Arzon in Midwest City. There is a high demand for senior housing in the Midwest City area and this development will alleviate some of the pressure. In Hugo, we will be adding two more phases with LW Development: Hugo Affordable Housing II and III which have only recently closed. These two phases will add more single family homes to the southeastern part of the state.

The market remains highly competitive. We remain committed to all of our partners and appreciate the trust they have placed in us. We appreciate your business and look forward to additional successful partnerships in the future.

3

Volume 8, 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!

Fall is here. Shorter days, cooler nights and, more importantly, college football. It’s hard to believe that there are only three months left in 2015! As October begins, I hope you are seeing the fruits of your previous nine months of labor begin to ripen and that everything is starting to “fall” into place.

Here at MHEG, our latest funds - MHEG Fund 44 and MHEG Community Fund 45 - are fully subscribed. This means we have $165 million available to help finance more quality affordable homes and change even more lives over the next year! A big “thank you” to our investor partners. Without your commitment to affordable housing and your partnership with MHEG, we would not be able to fulfil our mission. A big thanks to our developer partners as well. All this capital is meaningless without your efforts and determination to develop, construct and then operate these developments. Because of your trust and partnership with us, we’ve invested $160 million in thirty-five new properties over the past twelve months. These results don’t fall into place on their own. We need the expertise and experience of the entire MHEG team to meet our goals. Thank you, team, for all your hard work and dedication!

Over the course of the summer, we hosted customer appreciation dinners in Missouri, Kansas and Iowa during each State’s housing conference. These dinners are a great opportunity for MHEG to express our gratitude and to build stronger relationships with you in a more relaxed setting. Our next appreciation dinner will be in South Dakota at the end of this month for those that will be attending the

South Dakota Housing Conference. I hope you have the chance to attend at least one of these dinners at some point during the year.

Another important item that has fallen into place recently is the addition of our ninth board member. We are very excited to welcome Frank Hayes to the MHEG Board of Directors! Hayes is the majority owner and President of Hayes & Associates, LLC, a CPA and consulting firm he founded in 1983. He has 40 years of experience in the financial services industry, including previous roles as the director of the tax department at Grant Thorton CPAs and as a revenue agent for the Internal Revenue Service. In addition to his new role on MHEG’s Board of Directors, Hayes also serves as a member of the Mutual of Omaha Bank Board of Directors, the Companion Life Insurance Board of Directors, the Creighton University Board of Trustees, the Omaha Business Ethics Alliance, the Great Plains Black Museum and Kaneko.

In close, I want to congratulate Sister Marilyn Ross on her recent retirement from Holy Name Housing Corporation. Over the past three decades she has been a prominent advocate of affordable housing in Omaha. MHEG was extremely fortunate to be on the receiving end of her guidance and knowledge during her tenure on our Board. Thank you, Sister for your many years of service! We wouldn’t be where we are today without you! See page 3 for more on Sister Marilyn and the role she played in the housing community.

Enjoy the fall!

There is the old adage that ‘time flies when you are having fun’, that could not have been truer this past month. In September we saw several developments achieve construction completion, developers hold ground breakings and a lot of conference activity.

The Iowa Housing Conference was held September 9th and 10th in Coralville, Iowa. The conference saw outstanding attendance. MHEG once again sponsored our annual dinner for our industry partners and friends at the Linn Street Cafe. It was an evening filled with great conversation and an excellent meal.

In addition, we attended the Iowa League of Cities conference that was held in Cedar Rapids on September 23rd and 24th. We spoke

October 2015

with several cities from all around the state which expressed that their communities have a great need for affordable housing.

The need for housing reminds us that it is important to make sure that our elected officials are aware of and co-sponsor the pending legislation in the House and the Senate: HR1142 and S1193. In addition, we need to reinforce the importance of the HOME Funds in creating affordable housing. The lack of HOME funds this year is already preventing some of the planned, much needed housing developments from moving forward into the upcoming round of Iowa tax credit applications.

Northwest Region Update Jen Oscarson

The Northwest Region has been busy with tax credit application cycles and meeting new and potential partners across the expansion states. Just as important if not more important than our expansion is the long term partners of MHEG. Nebraska has many long standing partners and investors whom I would like to thank this quarter. One in particular is Sister Marilyn Ross who after 30+ years has retired as Executive Director of Holy Name Housing Corporation (HNHC).

Our partnership with HNHC and Sister Marilyn dates back to MHEG’s inception in 1993. She served on MHEG’s Board of Directors from 1993-2010, nine of those years acting as Chair of the Board. Under Sister’s leadership, HNHC has built/renovated 450 houses for sale, constructed another 150 houses for the rent-to-own program and built almost 100 more homes for seniors all in the north Omaha community.

She was instrumental in establishing the Nebraska Housing Trust Fund and has helped many other organizations with their development efforts all while reminding us all of the importance of looking at affordable housing through the lens of the resident and their success.

While Sister Marilyn is passing on the reins, Michael Gawley has been named as HNHC’s new Executive Director, we look forward to our continued partnership with HNHC. Our most current partnership, Prospect Village, involves 30 single family homes to be constructed on scattered sites in north Omaha.

Again, thank you to all of our current partners and investors without you we could not have invested over $425 million in the region over the last 20 plus years.

Left: MHEG hosts it’s 8th Annual Kansas Appreciation Dinner on August 27, 2015, in Manhattan, Kansas, at the Bluemont Hotel.

Middle: Congresswoman Lynn Jenkins speaks during a legislative session at the KHA conference, which was held in conjunction with the Kansas Housing Conference.

Right: Pat Michaelis (MHEG), John Clarke (Bank of Hays), Dan Beal (McElroys) and Dave Fisher (FHLBank Topeka) team up for the KHA’s 2nd Annual Golf Outing.

Central Region Update Pat Michaelis

In August we sponsored a Kansas dinner at the Bluemont Hotel in Manhattan overlooking Aggieville. We had a full house with over 80 partners in attendance. Good food, friendship and conversation. We also enjoyed a Missouri dinner in July at Cooper’s Hawk Winery in Kansas City, Missouri. These dinners provide a way for our partners to enjoy an evening together. We are all in this business collectively, depend on each other and need to be accountable. It is important we know each other personally.

The Kansas Housing Association (KHA) Annual meeting, held during with the KS Housing Conference, was a success.

Presenters were US Congresswoman Lynn Jenkins, Laird Veatch (Deputy Athletics Director, KSU), and Fred Bentley (Director Rental Housing Program, KHRC). This is not new news, but Representative Jenkins is a true advocate of affordable housing and the LIHTC program. Her continued support as a member of the House Ways and Means Committee is critical and very much appreciated. KHA also held its second annual golf tournament at Colbert Hills in Manhattan. If you haven’t played it, you should take the time do so. It is located in the beautiful Flint Hills area of Kansas. Forty golfers helped support KHA’s activities for the year. Prizes were awarded including 2nd place award to my team (pictured above)! For more information on KHA and to learn how to join, visit their website www.kansashousingassociation.com.

Missouri Applications were due September 4th. We were fortunate to sponsor several and wish our partners success in receiving an award from MHDC. I know it is early, but we are starting to discuss potential properties for the KS applications due February 5th. Please contact us when you are ready; we will gladly provide assistance as needed.

As always, we appreciate your business. Do not hesitate to contact Chris, Brooke, Lisa, or me. All the best to you.

2

Sister Marilyn Ross’s retirement celebration on September 10, 2015, in Omaha, Nebraska. Photos taken by DaRon Grant.

South Region Update Andrea Frymire The Southern Region had a busy summer with awards announced in Arkansas and Texas, as well as Round 2 Applications due in Oklahoma.

In June we closed on our second development in Texas, Brookside Partners in Borger, developed by Overland Property Group. We are excited to partner again with the OPG team on The Reserves at Summit West, which received an allocation of 2015 tax credits from TDHCA. This development will be located in Wichita Falls - where we just recently had a ribbon cutting for our first Texas development, The Reserves at Maplewood. The mayor and state representative all spoke on the positive impact this property has had on the community.

In Arkansas, we have closed three developments with two new partners.

The first is an RD Acquisition Rehab in Huntsville. We are pleased to be working with PDC Companies on this senior development.

We have also closed two developments with KWL. One is a senior development in Hope and the second is a family development in Forrest City. Each of these will add 48 units of much needed housing

to their respective communities. We appreciate the opportunity to work with both of these outstanding organizations in the years to come.

In Oklahoma, we will be adding additional phases to several developments. We recently closed Autumn Creek Villas Phase II with Arzon in Midwest City. There is a high demand for senior housing in the Midwest City area and this development will alleviate some of the pressure. In Hugo, we will be adding two more phases with LW Development: Hugo Affordable Housing II and III which have only recently closed. These two phases will add more single family homes to the southeastern part of the state.

The market remains highly competitive. We remain committed to all of our partners and appreciate the trust they have placed in us. We appreciate your business and look forward to additional successful partnerships in the future.

3

Volume 8, Issue 3

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

Property Spotlight: DH Housing LP Located in downtown Durant, Oklahoma, the Hotel Bryan was constructed in 1928. It was southeastern Oklahoma’s center for all social and political activities in the 1930’s. The hotel ballroom also held many dances and receptions. The hotel changed owners a few times and eventually was converted into apartments in 2000 with HOME funds.

October 2015

Closed Acquisitions DH Housing LP

LIHTC DEVELOPMENTS

FUND

MHEG 42 Parsons, Kansas

CITY / STATE

UNITS DATE 35

July

DEVELOPER Tony Krsnich

General Partner

Big Five DH Partners, LLC

Parsons Housing Partners, LP

Developer

Strategic Realty Advisors, Inc.

Huntsville Town Branch Limited Partnership

MHEG 42 Huntsville, Arkansas

24

August

PDC Companies

Strategic Realty Management, Inc.

Autumn Creek Villas II, LP

MHEG 42 Midwest City, Oklahoma

28

September

Arzon Development Company

Hugo Affordable Housing II, LLC

MHEG 42 Hugo, Oklahoma

10

October

Sunview Development

Hugo Affordable Housing III, LLC

MHEG 42 Hugo, Oklahoma

10

October

Sunview Development

Meadows at Forrest City LP

MHEG 42 Forrest City, Oklahoma

48

October

KWL Properties, LLC

Total Units Closed from July - October

155

Property Manager Recently the property underwent significant renovations. The building was gutted and received new mechanical and plumbing systems, new flooring, new appliances and cabinetry, as well as a new roof. A computer lab and community room was added as amenities for the tenants, and the ground floor, which was non-functional, was also renovated into a commercial space.

Total Units Closed in 2015

Today the building, almost a hundred years old, is now called the Dennis Huggins Memorial Apartments and provides three studio units and 21 one-bedroom units, and is 100% fully occupied.

1,134

If you’re a fan of Halloween and believe in ghost stories, the building has been rumored to have a ghost. Sightings of a person in the building while under construction and vacant, and unexplained voices have been heard.

Staff Announcements Jadara Sandoval Duarte, Acquisitions & Asset Management Intern Jadara was recently hired as our Acquisitions and Asset Management intern for the Omaha office. She will be assisting both the Acquisitions department and the Asset Management department. Duties will include data entry of financial statements, inspection reports, running reports, IRR models. Jadara is a junior at the University of Nebraska at Omaha and is majoring in Investment Science & Portfolio Management. She started with MHEG at the end of August.

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

1

4

2

3

5

6

1-3) Overland Property Group held a ribbon cutting ceremony on August 20, 2015, for Trail Ridge Partners (MHEG Fund 42) in Great Bend, Kansas. This celebration had over 150 people in attendance, including Senator Jerry Moran who spoke on how beautiful the property was. This new development will provide 48 multifamily units.

4) House to Home Riverview/Escalade, LLC (MHEG Fund 40) celebrates its ribbon cutting with developer Kathy Mesner (Mesner Development Co), Dennis Mesa (KHRC), Donny Smith (CHWC), John Wiechmann (MHEG), and Fred Bentley (KHRC) on July 8, 2015 in Kansas City, Kansas. This scattered site property consists of 23 single family homes.

5) Paula Rhian (Excel Development Group), Teresa Kile (NIFA), Jim O’Hare (Horizon Bank), Lt. Governor Mike Foley of Nebraska, Falls City Mayor Jerry Oliver, Senator Dan Watermeier, Cindy Koster (MHEG), and Becki Cromer (Falls City EDGE) participated in the ground breaking ceremony for Wilderness Falls II (MHEG Fund 44) on September 2, 2015, in Falls City, Nebraska. These new duplexes will provide 14 units for persons 55+.

6) Overland Property Group held a ribbon cutting ceremony on September 14, 2015, for Maplewood Partners (MHEG Fund 40) in Wichita Falls, Texas. This new development will provide 36 multifamily units.

4

5

Volume 8, Issue 3

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

Property Spotlight: DH Housing LP Located in downtown Durant, Oklahoma, the Hotel Bryan was constructed in 1928. It was southeastern Oklahoma’s center for all social and political activities in the 1930’s. The hotel ballroom also held many dances and receptions. The hotel changed owners a few times and eventually was converted into apartments in 2000 with HOME funds.

October 2015

Closed Acquisitions DH Housing LP

LIHTC DEVELOPMENTS

FUND

MHEG 42 Parsons, Kansas

CITY / STATE

UNITS DATE 35

July

DEVELOPER Tony Krsnich

General Partner

Big Five DH Partners, LLC

Parsons Housing Partners, LP

Developer

Strategic Realty Advisors, Inc.

Huntsville Town Branch Limited Partnership

MHEG 42 Huntsville, Arkansas

24

August

PDC Companies

Strategic Realty Management, Inc.

Autumn Creek Villas II, LP

MHEG 42 Midwest City, Oklahoma

28

September

Arzon Development Company

Hugo Affordable Housing II, LLC

MHEG 42 Hugo, Oklahoma

10

October

Sunview Development

Hugo Affordable Housing III, LLC

MHEG 42 Hugo, Oklahoma

10

October

Sunview Development

Meadows at Forrest City LP

MHEG 42 Forrest City, Oklahoma

48

October

KWL Properties, LLC

Total Units Closed from July - October

155

Property Manager Recently the property underwent significant renovations. The building was gutted and received new mechanical and plumbing systems, new flooring, new appliances and cabinetry, as well as a new roof. A computer lab and community room was added as amenities for the tenants, and the ground floor, which was non-functional, was also renovated into a commercial space.

Total Units Closed in 2015

Today the building, almost a hundred years old, is now called the Dennis Huggins Memorial Apartments and provides three studio units and 21 one-bedroom units, and is 100% fully occupied.

1,134

If you’re a fan of Halloween and believe in ghost stories, the building has been rumored to have a ghost. Sightings of a person in the building while under construction and vacant, and unexplained voices have been heard.

Staff Announcements Jadara Sandoval Duarte, Acquisitions & Asset Management Intern Jadara was recently hired as our Acquisitions and Asset Management intern for the Omaha office. She will be assisting both the Acquisitions department and the Asset Management department. Duties will include data entry of financial statements, inspection reports, running reports, IRR models. Jadara is a junior at the University of Nebraska at Omaha and is majoring in Investment Science & Portfolio Management. She started with MHEG at the end of August.

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

1

4

2

3

5

6

1-3) Overland Property Group held a ribbon cutting ceremony on August 20, 2015, for Trail Ridge Partners (MHEG Fund 42) in Great Bend, Kansas. This celebration had over 150 people in attendance, including Senator Jerry Moran who spoke on how beautiful the property was. This new development will provide 48 multifamily units.

4) House to Home Riverview/Escalade, LLC (MHEG Fund 40) celebrates its ribbon cutting with developer Kathy Mesner (Mesner Development Co), Dennis Mesa (KHRC), Donny Smith (CHWC), John Wiechmann (MHEG), and Fred Bentley (KHRC) on July 8, 2015 in Kansas City, Kansas. This scattered site property consists of 23 single family homes.

5) Paula Rhian (Excel Development Group), Teresa Kile (NIFA), Jim O’Hare (Horizon Bank), Lt. Governor Mike Foley of Nebraska, Falls City Mayor Jerry Oliver, Senator Dan Watermeier, Cindy Koster (MHEG), and Becki Cromer (Falls City EDGE) participated in the ground breaking ceremony for Wilderness Falls II (MHEG Fund 44) on September 2, 2015, in Falls City, Nebraska. These new duplexes will provide 14 units for persons 55+.

6) Overland Property Group held a ribbon cutting ceremony on September 14, 2015, for Maplewood Partners (MHEG Fund 40) in Wichita Falls, Texas. This new development will provide 36 multifamily units.

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

Volume 8, 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

Upcoming Events

6

Monthly LIHTC Rates

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

June 2015 70% PV

30%PV

AFR

7.47%

3.20%

2.50%

July 2015 70% PV 7.52%

30%PV

AFR

3.22%

2.74%

August 2015

KHRC Board Meeting: Oct. 1st Topeka, KS - KDFA Board Room KHRC Public Hearing for QAP: Oct. 14th Topeka, KS - KDFA Board Room **QAP for 2016 applications has significant changes in Developer Fees** IFA Board Meeting: Oct. 7th Des Moines, IA - IFA Office ADFA Board Meeting: Oct. 15th Little Rock, AR - ADFA Office TDHCA Board Meeting: Oct. 15th Austin, TX - Capitol Extension Auditorium NIFA Board Meeting: Oct. 16th Lincoln, NE - NIFA Board Room CHFA Board Meeting: Oct. 22nd Denver, CO - CHFA Board Room SDHDA Annual Housing Conference: Oct. 27th-28th Pierre, SD - Best Western Ramkota RiverCentre

30%PV

AFR

7.53%

3.23%

2.82%

September 2015

Upcoming Events October

70% PV

70% PV

November

IFA Board Meeting: Nov. 4th Des Moines, IA - IFA Office

7.51%

December

30%PV

AFR

3.22%

2.64%

October 2015

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

70% PV

30%PV

AFR

7.49%

3.21%

2.58%

KHRC Board Meeting: Nov. 5th Topeka, KS - KDFA Board Room

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

TDHCA Board Meeting: Nov. 11th Austin, TX - Capitol Extension Auditorium

MHDC Commission Meeting: Dec. 4th Columbia, MO - TBD

OHFA Board of Trustees Meeting: Nov. 18th Oklahoma City, OK - OHFA’s Conference Room

CHFA Board Meeting: Dec. 10th Denver, CO - CHFA Board Room

Units

Annual OK Luncheon: Nov. 18th OK City, OK - Oklahoma History Center

Counties Represented

157

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

Cities Represented

193

NIFA CRANE Meeting: Nov. 18th Lincoln, NE - NIFA Board Room

ADFA Board Meeting: Dec. 17th Little Rock, AR - ADFA Office

Vacancy Percentage

6.28%*

Debt Coverage Ratio

1.73*

ADFA Board Meeting: Nov. 19th Little Rock, AR - ADFA Office

TDHCA Board Meeting: Dec. 17th Austin, TX - Capitol Extension Auditorium

Portfolio Update Developments

417 12,429

Information current as of 10/01/15 *Percentage compiled from 6/30/15 figures using stabilized developments only, vacancy percentage is using economic vacancy.

CHFA Board Meeting: Nov. 19th Denver, CO - CHFA Board Room 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.

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

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October 2015

2015 Ad Astra Award Winners This past August the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Manhattan, 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 moderateincome Kansans.

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

Innovation in Housing and Community Development: Baxter Springs Senior Residences (BSSR, LP of MHEG Fund 40) developed by Prairie Fire Development Group and located in Baxter Springs, Kansas.

Michaelis (MHEG), Marilyn De La Pena (Prairie Fire Development) and Kelly Hrabe (Prairie Fire Development).

Below: Partners of House to Home, Mesner Development Co, MHEG, KHRC, CHWC.

Special Achievement in Affordable Housing Development Urban: House to Home Riverview/Escalade, LLC (MHEG Fund 40) developed by Mesner Development Co and Community Housing of Wyandotte County (CHWC), located in Kansas City, Kansas.

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

Asset Manager Needed

Spectrum’s Charitable Giving Initiative

MHEG is still looking for an Asset Manager to join our Oklahoma City office team.

In 2012, the Spectrum Companies introduced their “Charitable Giving Initiative” program, which makes donations to certain charities based on recommendations of their partners.

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

In 2015, at the suggestion of MHEG, Spectrum selected New Beginnings, Inc. of Hutchinson, Kansas as one of their charities.

They received over $1,600. New Beginnings was created in 1986 with the mission to shelter and rebuild human lives while fostering the development of affordable housing.

The Spectrum Companies have been providing compliance services for over 25 years for affordable housing. MHEG is proud to partner with both of these great organizations.

AHF Recognize Wiechmann As 2015 Young Leader Each year since 2008, the Affordable Housing Finance magazine recognizes a handful of individuals 40 and under who are making an impact in the affordable housing industry with the Young Leader Award. The award was created as a way to celebrate and support a new generation of leaders who are helping to build organizations and finding innovative ways to deliver affordable housing.

MHEG is proud to announce that this year’s group includes one of our own team members, John Wiechmann.

Since joining MHEG in 2012 as CEO, John has diversified our investor base and expanded our operations from four to ten states.

Additional honorees of this year’s award are: Sasha-Gaye Angus (Michaels Development Co), Andrew Bailey (Millennia Companies), Karla Burck (Herman & Kittle Properties), Michael Duffy (McCormack Baron Salazar), and Matt Rule (National Church Residences).

The Young Leaders will be honored at the AHF Live Conference in November in Chicago. Be looking for the October issue of the AHF magazine, which will feature a story showcasing each of the leaders.

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