2016 annual report

Making It Happen

Midwest Housing Equity Group 2016 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 5 Investors & Equity Summary 7 2016 Developments 15 Board of Directors & Committee Members 16 MHEG Staff

Valley View Place, Woodland Park, Colorado

Message From Our President/CEO “Making It Happen” The theme of our 2016 Annual Report is Making It Happen! What does it mean to make it happen? To me, it means setting big goals, developing and executing the strategy to accomplish those goals, and overcoming the expected and unexpected roadblocks and obstacles that inevitably arise along the route to the finish line. What does it take to make it happen? It takes vision, communication, teamwork, patience, flexibility, persistence and a strong belief in the value of the mission and end goal.

Our mission is to Change Lives for a Better Tomorrow and our big goal is to help finance as much safe, decent and affordable rental housing as possible every year. I am proud to partner with the great team at MHEG and with each of you to make that happen! In 2016, we invested more than $190 million into 42 developments, financing 1,674 homes. Homes were created for veterans, people with special needs, victims of domestic violence, families and retirees. Legislatively, the Nebraska Unicameral passed, and the Governor signed, a bill creating a state affordable housing tax credit. Advocates in Oklahoma worked effectively to protect that State’s affordable housing tax credit despite a large projected budget deficit. Nationally, we saw Senator Maria Cantwell (D-WA) and Senator Orrin Hatch (R-UT; Chairman of Senate Finance Committee) introduce legislation to expand the Housing Credit program by 50% - an explicit bipartisan acknowledgement of the need for more affordable housing resources.

Of course, these accomplishments were not without their challenges. At the transactional level, every development encounters unexpected hurdles: higher-than-expected construction costs, NIMBYism, interest rate movements, environmental issues and, for acquisition-rehabs, the always interesting surprise of what we find hidden behind the walls once demolition starts. At the state legislative level, budgets and competing priorities always present threats to important funding sources. Nationally, the November election results threw the Affordable Housing industry into a bit of chaos, with pricing dropping almost overnight as investors struggled to discern what the future held for comprehensive tax reform, corporate tax rates and the Housing Credit. But these roadblocks didn’t stop any of us from reaching our goals. For each project obstacle, all development team players communicated frequently, worked together and pushed through, finding solutions to enable these 42 properties to reach financial closing and proceed to construction.

The same on the policy side, whether Federal or State. Affordable housing advocates

1

banded together, driven by their strong mutual belief in the need to provide affordable housing and protect funding sources, to communicate the value of the Housing Credit.

Communication on this front remains as important as ever in 2017.

In close, it is an honor to work with all of you. You possess the traits to make it happen: vision, communication, teamwork, patience, flexibility, persistence and a strong belief in the value of providing safe, decent and affordable housing to all people! Whether you know it or not, you’re Changing Lives every day.

Please enjoy our annual report and story it tells. Thank You for Making It Happen!

John Wiechmann President/CEO

7400 Military Avenue, Omaha, Nebraska

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MHEG Portfolio Summary

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

MHEG TOTAL Developments Housing Units

3

ARKANSAS

480

7

14,656

258

Counties

182

7

Cities

221

7

14,656 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

2016

0 59%

37% 24% Development Size

80%

Development Location

Construction Type

4%

0-12 13-24 25+

9%

14%

Rural Urban Suburban

42%

Development Status

6%

37%

39%

81%

2%

9%

New Rehab Historic Rehab

Operational In Lease-Up Construction Disposed

Breakdown of 33% Development Type 9% 16%

Multifamily Age Restricted Single Family Special Needs/ Transitional

COLORADO

IOWA

KANSAS

MINNESOTA

MISSOURI

NEBRASKA

OKLAHOMA

S. DAKOTA

TEXAS

8

72

123

3

15

191

53

4

4

760

2,426

3,440

106

867

4,684

1,813

134

168

7

27

48

3

13

48

25

2

3

6

33

60

3

13

63

32

2

3

All information compiled from 12/31/2016 data.

4

Nebraska Affordable Housing Fund 1993, L.P. l $4.75 million l 8 investors

Nebraska Fund XVII, L.P. l $31 million l 17 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

Bank of the West Berkshire Hathaway, Inc.

Jefferson Pilot Mutual of Omaha Insurance Co

US Bancorp

Adams Bank & Trust Company Bank of the West Bruning State Bank Capitol Federal Savings Bank Everett Investments Farm & Home Insurance Agency

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

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

Bank of the West Berkshire Hathaway, Inc. Fannie Mae

Farmers & Merchants Investment First State Bancshares Jefferson Pilot

US Bancorp Wells Fargo

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

Nebraska Affordable Housing Fund 1994, L.P. l $3.25 million l 5 investors Nebraska Affordable Housing Fund 1995, L.P. l $5.25 million l 11 investors

Nebraska Affordable Housing Fund 1996, L.P. l $7 million l 13 investors

Nebraska Affordable Housing Fund 1997, L.P. l $6 million l 8 investors

Equity Fund of Nebraska VI, L.P. l $16 million l 12 investors

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

Equity Fund of Nebraska VIII, L.P. l $16.5 million l 13 investors

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

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

Landmark National Bank The Mission Bank Wells Fargo

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

Fannie Mae Farmers & Merchants Investment Freddie Mac

INTRUST Bank, N.A. The Mission Bank Wells Fargo

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

Fannie Mae Farmers & Merchants Investment Freddie Mac

INTRUST Bank, N.A. UMB Bank, n.a.

Wells Fargo

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 Equity Fund III, L.P. l $24 million l 9 investors

Kansas Equity Fund IV, L.P. l $28 million l 9 investors

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

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.

First State Bank Marine Bank Nelnet Pinnacle Bank Summit Investments

TierOne Bank US Bancorp Wells Fargo

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 XI, L.P. l $45 million l 10 investors

Kansas Fund X, L.P. l $29.5 million l 12 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

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

Bank of Bennington Bank of the West Fannie Mae

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

Principal Financial Services TierOne Bank Wells Fargo

Farm & Home Insurance Agency Farmers & Merchants Investment

Nelnet North Central Bancorp, Inc.

Principal Financial Services Wells Fargo

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

Equity Fund of Nebraska XII, L.P. l $40 million l 9 investors

Nebraska Fund XIII, L.P. l $19 million l 6 investors

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 Country Bank Shares Fannie Mae Farm & Home Insurance Agency Farmers & Merchants Investment

Equity Fund of Nebraska IX, L.P. l $36.05 million l 14 investors

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

Kansas Fund VII, L.P. l $16.25 million l 6 investors Capitol Federal Savings Bank Citizens Savings & Loan Assoc, FSB

Commerce Bank, N.A. Farmers & Merchants Investment

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

Morgan Federal Bank UMB Bank, n.a.

United Bank & Trust Wells Fargo

Iowa Equity Fund I, L.P. l $10 million l 8 investors Bank of the West

Fannie Mae

Maquoketa State Bank

Central State Bank

First National Bank of Waverly

Wells Fargo

Dubuque Bank & Trust CDC

Grundy Nattional Bank

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

Farmers & Merchants Investment

Principal Financial Services

Nebraska Fund XIV, L.P. l $26.5 million l 12 investors

Fannie Mae

First National Bank of Waverly

Wells Fargo

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

Bank of the West

Fannie Mae

TierOne Bank

Community State Bank - Ankeny

Principal Financial Services

Wells Fargo

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

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

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

Nebraska Fund XV, L.P. l $38 million l 21 investors

Nebraska Fund XVI, L.P. l $36.4 million l 16 investors Adams Bank & Trust Company Bank of the West Capitol Federal Savings Bank Countryside Bank Farm & Home Insurance Agency Farmers & Merchants Investment

5

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

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

Iowa Equity Fund III, L.P. l $25.255 million l 6 investors 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

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

Community State Bank - Tipton

Security State Bank

Carroll County State Bank

Farmers & Merchants Investment

Treynor State Bank

Cedar Rapids Bank and Trust

Fidelity Bank & Trust

Wells Fargo

Central Bank

First Federal Savings Bank of Iowa

West Bank

Iowa Fund VI, L.P. l $39.75 million l 11 investors Bank of the West

Farmers & Merchants Investment

Principal Financial Services

Bankers Trust

First National Bank of Waverly

Seaboard Corporation

Bankers Trust Company

MidwestOne Bank

Wells Fargo

Capitol Federal Savings Bank

Northwestern Mutual Life Insurance

All information compiled from 12/31/2016 data.

Investor & Equity Summary Iowa Fund VII, L.P. l $32.25 million l 10 investors

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

Bank of the West Bankers Trust Company Capitol Federal Savings Bank Community State Bank - Ankeny

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

Wells Fargo West Bank

Aegon Bank of the West

Fannie Mae INTRUST Bank, N.A.

Principal Financial Services

Arvest BancFirst

Bank of the West Fannie Mae

JP Morgan Chase Principal Financial Services

American Fidelity Assurance Co BancFirst Bank of Oklahoma

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

Seaboard Corporation Wells Fargo

American Fidelity Assurance Co BancFirst Bank of Oklahoma

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

Farmers & Merchants Investment Northwestern Mutual Life Insurance Wells Fargo

BancFirst Bank of the West Capitol Federal Savings Bank Colorado Federal Savings Bank Farm Bureau Life Insurance Co

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

Oklahoma Equity Fund I, L.P. l $25 million l 5 investors

North Central Bancorp, Inc. Pinnacle Bank The Citizens State Bank UMB Bank, n.a.

West Bank

BancFirst Bank of the West Bank SNB

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

MetLife Northwestern Mutual Life Insurance Wells Fargo

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.

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

West Gate Bank

Ameritas Life Insurance Corp

Colorado Federal Savings Bank

MetLife

BancFirst

Community State Bank - Ankeny

Northwestern Mutual Life Insurance

Bank SNB

Fidelity Bank

Wells Fargo

Capitol Federal Savings Bank

Fidelity Bank & Trust

Bankers Trust

Girard National Bank

Capital City Bank

INTRUST Bank, N.A.

South Central State Bank.

Commerce Bank, N.A.

Landmark National Bank

UMB Bank, n.a.

Countryside Bank

Morgan Federal Bank

West Bank

Elkhorn Valley Bank & Trust

Nelnet

West Gate Bank

Farm & Home Insurance Agency

North Central Bancorp, Inc.

Farmers & Merchants Investment

Pinnacle Bank

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

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

MHEG Fund 40, LP l $116.25 million l 14 investors

Elkhorn Valley Bank & Trust Farm & Home Insurance Agency INTRUST Bank, N.A. Iowa State Bank Kaw Valley Bank Landmark National Bank

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

Oklahoma Equity Fund II, L.P. l $40 million l 6 investors Oklahoma Fund III, L.P. l $25 million l 8 investors

American Fidelity Assurance Co Andover State Bank Bank of Hays Bank SNB Capital City Bank Commerce Bank, N.A.

MHEG Fund 46, LP l $150.6 million l 11 investors

MHEG Community Fund 47, LP l $20 million l 19 investors

MHEG Community Fund 41, LP l $25 million l 20 investors Adams Bank & Trust Company American Fidelity Assurance Co Assurity Life Insurance Co Commerce Bank, N.A. Community State Bank - Ankeny Equity Bank Farm & Home Insurance Agency

Farmers & Merchants Investment Girard National Bank Great Southern Bank INTRUST Bank, N.A. Iowa State Bank Lincoln Federal Savings Bank Morgan Federal Bank

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

West Bank

BancFirst Capitol Federal Savings Bank Colorado Federal Savings Bank

First National Bank of Omaha Garmin International MetLife

Mutual of Omaha Bank Northwestern Mutual Life Insurance Wells Fargo

San Luis Valley Federal Bank

FNBO Community Fund I, LP l $7 million l 1 investor First National Bank of Omaha

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

13%

$2.0B

Nebraska Funds Kansas Funds Iowa Funds Oklahoma Funds MHEG Regional Funds

25%

11%

Equity 9% Breakdown by Region 42%

$1.56 billion

$1.5B

$1.0B

$0.5B

1993

0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

6

2016 Developments In 2016, MHEG partnered with 35 developers to close $190 million in equity for 42 developments, creating 1,674 affordable housing units. This included 14 age restricted developments, 15 multifamily developments, five single family home properties and eight special needs housing developments. Projects ranged from a 10 unit rural deal to a 172 unit urban deal and represented 38 Midwest communities.

Talia Apartments, Springfield, Missouri

In 2016, MHEG Made

It Happen.

We helped create or sustain over 1,600 units of affordable rental housing for families across the Midwest.

7

Arkansas

Minnesota

Briarwood Estates at Jonesboro Limited Partnership, 40 single family units

Ivy Manor Limited Partnership, 41 special needs units

Columbia Heights Limited Partnership, 33 age restricted units

Maplewood of St. Peter Limited Partnership, 30 multifamily units Model Cities BROWNstone Limited Partnership, 35 multifamily units

Colorado KCV Renaissance, LLLP, 172 age restricted units Suites Apartments LLLP, 81 special needs units Valley View Place LP, 24 multifamily units Willow Street Residences LLLP, 80 multifamily units

Iowa Brickstones at Riverbend, LLLP, 30 age restricted units

Kansas Buchanan’s Crossing Subdivison Kansas City LP, 16 multifamily units Grant Prairie Townhomes II LLC, 10 age restricted units Keystone Place, LLC, 32 special needs units Landmark Second, LP, 83 age restricted units Peaceful Village, LP, 72 multifamily units Schoolhouse Apartments, LP, 30 multifamily units Sunnydale Pointe Apartments LP, 48 multifamily units

Nebraska 3612 Cuming Limited Partnership, 49 special needs units 7400 Military Avenue, LLC, 23 special needs units Eastside Estates, LLC, 28 age restricted units Kracl Meadows, LLC, 14 age restricted units Parkland Estates II, LP, 10 single family units Quillan Courts, LLC, 16 multifamily units Sabata Estates, LP, 12 age restricted units

Oklahoma Arkhoma Housing Associates, LP, 24 multifamily units Coweta Senior Villas, LP, 43 age restricted units Dunbar Homes of Atoka, LLC, 32 single family units Hope Harbor Partners OKC, LP, 54 age restricted units Hugo Affordable Housing IV, LLC, 10 single family units Madill Affordable Housing II, LLC, 32 single family units

Trail Ridge Partners II, LLC, 48 multifamily units

Missouri Boone County Special Needs Affordable Housing L.P., 28 special needs units

South Dakota Central Villas Limited Partnership, 40 age restricted units Technology Heights Apartments Limited Partnership, 39 multifamily units

Chloe Place Apartments, LP, 25 special needs units Lane Senior Residences, LLC, 48 age restricted units

Texas

MorningStar Senior, LP, 40 age restricted units

OPG Perryton Partners, LLC, 48 multifamily units

North Webster Village, LP, 24 multifamily units

OPG Summit West Partners, LLC, 36 multifamily units

Park Village Residences, LLC, 48 age restricted units Talia Apartments, LP, 46 special needs units

8

Age Restricted Housing Coweta Senior Villas, Coweta, Oklahoma

We closed over $57 million in equity for 14 age restricted developments in 2016, creating 655 units.

9

Coweta Senior Villas, LP

Brickstones at Riverbend, LLPP

Located in Coweta, Oklahoma, Coweta Senior Villas will provide 43 units of affordable rental housing for persons 62+. Coweta Senior Villas will be the second LIHTC development in the community designated for seniors helping meet a great need, the other one is fully occupied with a waiting list. The property will include a community building that will also serve as a storm shelter for residents.

The developer, Pointe Royal Development, incorporated a number of energy efficient features into the units including low flow shower heads, insulation on exposed hot water pipes, Energy Star appliances, Low E windows, Energy Star HVAC, Energy Star water heaters, Radiant barrier installation on the roof, low VOC paint, and programmable thermostats. This project was syndicated through MHEG Fund 46, LP.

Developed by Anawim Housing, Brickstones at Riverbend is a 30-unit development located in Des Moines, Iowa. Designated for persons 55+, Brickstones at Riverbend will offer 27 two-bedroom units targeting residents at 30%, 40% and 60% of the area median income (three units will be market rate). In addition to the basic amenities, the property will also offer video security, storage units and free internet access. Situated on the north side of downtown Des Moines, Brickstones at Riverbend is conveniently located within one mile of the Polk County Senior Center, Mercy Medical Center, public transportation and a grocery store. This project was syndicated through MHEG Fund 46, LP.

Brickstones at Riverbend, Des Moines, Iowa

10

Valley View Place, Woodland Park, Colorado

Multifamily Housing We closed over $67 million in equity for 15 multifamily developments in 2016, creating 570 units in 14 communities in the Midwest.

Valley View Place LP Developed by AmericaWest Housing Solutions, Valley View Apartments will provide 24 affordable rental units for Woodland Park, Colorado. These units will be the only LIHTC rental housing units in Woodland Park, its previous LIHTC units were turned market-rate back in 2014. It will target families earning incomes at 30%, 40%, 50% and 60% of the Teller County area median income. Valley View will offer one-, two-, and three-bedroom units with amenities including vaulted ceilings, exterior and interior storage closets, as well as appliances. The property will also have a playground, community garden and a picnic/barbeque area. Additionally, Valley View is bordered by the Centennial Trail that provides access to downtown Woodland Park and Manitou Park Lake via hiking/biking. This project was syndicated through MHEG Fund 44, LP.

11

Model Cities BROWNstone, St. Paul, Minnesota

Model Cities BROWNstone Limited Partnership Model Cities for The BROWNstone, located in St. Paul, Minnesota, is part of the development initiative with the city and the Central Corridor Light Rail Transit line to utilize mixed use projects.

Model Cities will provide affordable workforce housing (35 units) along with commercial and retail spaces, in addition the property will have green space along with public art celebrating the rich railroad history of the neighborhood. The building will have four stories with an elevator and enclosed secure ground level parking. The first floor will provide 8,900 square feet of commercial space, including restaurants and offices. The second floor will house corporate offices for Model Cities, a community room and reading room and will also have seven residential units. The third and fourth floors will be exclusively residential. This development will contribute to the economic vibrancy of the area and result in new opportunities for businesses, stable jobs, and safe housing.

This is set to be a model for environmentally friendly, mixed use development at both transit stations and on infill sites along the Central Corridor for years to come. This project was developed

by Model Cities of St. Paul, LLC and syndicated through MHEG Fund 44, LP.

12

Single Family Homes We closed over $21 million in equity for five single family home developments in 2016, creating 124 units throughout five communities in the Midwest.

Briarwood Estates at Jonesboro Limited Partnership Located in Jonesboro, Arkansas, Briarwood Estates will provide 40 newly constructed single family homes for the Jonesboro community. Each home will offer three bedrooms, two bathrooms, and a single car garage, along with appliances, totaling over 1,300 square feet. Other amenities for the development include an onsite leasing office, business center, fitness center, playground and an outdoor pavilion and picnic area. The Jonesboro housing market has a strong demand for quality rental units, with the local housing authority showing a wait list of almost 1,000 families. All units will serve households who have incomes at or below 60% of the area median income. NELA Properties, LLC served as the developer for this project. This project was syndicated through MHEG Fund 44, LP.

3612 Cuming Street, Omaha, Nebraska

13

special needs housing Boone County Special Needs Affordable Housing, Columbia, Missouri

Special Needs Housing We closed over $42 million in equity for eight special needs developments in 2016, creating 325 units in five states.

Boone County Special Needs Affordable Housing L.P. The Boone County Special Needs Affordable Housing is a 28 unit, new construction multi-site project located in Columbia, Missouri. This much needed development will serve developmentally disabled persons in the Boone County area. Current wait lists for this development and other similar properties far exceed the availability. Each project site has access to bus transportation and will offer one- and two-bedroom units. Each building will have two fully ADA accessible units.

The remaining units will be universally designed and can be adapted to other tenant populations if needed. Sponsored by Boone County Family Resources (BCFR), an agency that serves local residents with developmental disabilities and annually provides an array of services to more than 1,400 persons. BCFR will provide case management services to eligible tenants desiring this service.

This project was developed by North Star Housing and syndicated through MHEG Fund 46, LP.

3612 Cuming Limited Partnership Located at 36th & Cuming Street in Omaha, Nebraska, Renaissance Village will provide a variety of services and transitional housing. Developed by the Salvation Army, this new four-story development will provide 33 units of affordable housing (plus 16 market rate units) on the 2nd and 3rd floors through use of their Transitional Housing Residential Units (THRU) Program and 37th Street Residential Readiness Program. The two remaining floors will house their Early Head Start program for families and children, a Mental Health Respite program and administrative offices. Each program focuses on a specific population and addressing their specific housing needs. The building will also have space for counseling offices. This project was syndicated through FNBO Community Fund I, LP, a fund solely invested in by First National Bank of Omaha.

14

Board of Directors Chairman of the Board: David Fisher - Retired Vice President, FHLBank Topeka Vice Chairman of the Board: Chris Hensley - Retired Vice President, Bank of the West Secretary of the Board: Barry Sandstrom - Retired President/CEO, Home Federal Bank Dennis Brand - CEO, BancFirst Frank Hayes - President, Hayes & Associates Dick Hoiekvam - Retired Partner, Deloitte Kirk Kellner - Tri-State Regional President, Wells Fargo John Wiechmann - CEO/President, MHEG

Committee Members Budget & Compensation Committee

Dennis Brand - BancFirst David Fisher - Retired Vice President, FHLBank Topeka Barry Sandstrom - Retired, President, Home Federal Bank

Audit Committee

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

Central Region Operations & Investment Committee Bob Arthur - Commerce Bank, N.A. Mark Dennett - INTRUST Bank, N.A. David Fisher - Retired Vice President, FHLBank Topeka Bob Kobbeman - Capital City Bank 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 Susan Whitson - First National Bank of Waverly

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

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

MHEG Staff John Wiechmann President / Chief Executive Officer

Scott Fitzpatrick

Vice President - Business Development Officer Northeast Region

Cindy Koster

Jason Main

Chief Financial Officer

Andrea Frymire

Vice President - Business Development Officer South Region

Chris Imming

Senior Acquisitions Manager

Acquisitions Manager

Jake Jacobsen

Dustin Daugherty

Construction Manager

Shannon Johnson

Construction Manager

Brett Helt

Becky Christoffersen Chief Investment Officer

Sammy Ehtisham

Accounting Manager

Traci Collins

Rachel Wiesner

Acquisitions Manager

Jordan Abboud

Laurie Stephenson

Amanda Bockelman

Amy Leonard

Paul McDonald Asset Manager

Shannon Powers

Ryan Harris

Steve Gross

Brooke Smith

Cecelia Grossman

Accounting Specialist

Closing Coordinator

Deputy Director of Asset Stabilization

Financial Analyst

Tom Stratman

Vice President of Acquisitions

Investor Relations Manager

Deputy Director of Special Assets

Financial Analyst

Asset Manager

Shannon Foster

Assistant Vice President of Acquisitions

Financial Analyst

Asset Manager

Ann Burge

Chief Operating Officer

Financial Analyst

Lisa Bryan

Administrative Coordinator

Deputy Director of Compliance

Shellie Vandeman

Compliance Specialist

Pat Michaelis

Vice President - Business Development Officer Central Region

Dana Oswald

Accounting Coordinator

Deb Swanson

Closing Coordinator

Keely McAleer

Corp. Communications & HR Administrator

Sharita Nelson

Compliance Specialist

Cindy Wieck

Administrative Assistant

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Midwest Housing Equity Group 515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 www.mheginc.com