2016 dec mheg newsletter

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

Volume 9, Issue 3

December 2016

City of Omaha Receives National Award for Prospect Village

Inside this Issue: Recent Highlights

1

CEO Update

2

Region Updates

2, 3

Property Spotlight

4

Closed Acquisitions

4

Recent Events

5

Upcoming Events

6

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

July 2016 30%PV

AFR

3.18%

2.18%

August 2016 30%PV

AFR

3.15%

1.90%

September 2016

November

OHFA Board of Trustees Meeting: Nov. 16th Oklahoma City, OK - OHFA’s Conference Room

AFR

3.15%

1.90%

Annual Oklahoma Appreciation Luncheon: Nov. 16th

ADFA Board Meeting: Dec. 15th Little Rock, AR - ADFA Office

NIFA CRANE Meeting: Nov. 16th Lincoln, NE - NIFA Board Room

CHFA Board Meeting: Dec. 15th Denver, CO - CHFA Board Room

CHFA Board Meeting: Nov. 17th Denver, CO - CHFA Board Room ADFA Board Meeting: Nov. 17th Little Rock, AR - ADFA Office SDHDA Board of Commissioner’s Meeting: Nov. 17th Pierre, SD - SDHDA

December

KHRC Board Meeting: Dec. 1st Topeka, KS - KDFA Board Room MHDC Commission Meeting: Dec. 2nd Columbia, MO - TBD IFA Board Meeting: Dec. 7th Des Moines, IA - IFA Office NIFA Board Meeting: Dec. 9th Lincoln, NE - NIFA Board Room

30%PV

AFR

3.16%

1.95%

November 2016

TDHCA Board Meeting: Dec. 15th Austin, TX - Capitol Extension Auditorium

The City of Omaha Planning Department partnered with 25 organizations to create and implement a holistic neighborhood revitalization model.

The initiative was launched in Prospect Village, a distressed, racially mixed neighborhood in north Omaha. As a result of the broad spectrum of community partners, residents’ needs were met through new housing construction, existing housing rehabilitation, healthy home and energy efficiency upgrades, establishment of community gardens, cultural fairs, neighborhood art projects, financial management training, parenting classes, gang prevention initiatives, and the formation of a viable neighborhood association.

Out of the 90 entries nominated this year, only 20 were selected to receive this honor. Awards were presented in October during NAHRO’s National Conference & Exhibition in New Orleans. Prospect Village was developed by Holy Name Housing Corporation. The development, funded in MHEG Fund 44, provides 30 single family homes.

MHEG is proud to partner with these leading organizations.

2016 Ad Astra Winners

30%PV

October 2016

Upcoming Events

The City of Omaha Planning Department was recently chosen as a recipient of the National Association of Housing and Redevelopment Officials (NAHRO) Awards of Excellence: Community Revitalization for its Prospect Village Initiative. The award recognizes the innovative housing and community development projects, programs, and services that member organizations provide to make a difference in the lives they serve.

30%PV

AFR

3.17%

2.07%

Please note we will no longer show the 70% PVC rate as it was permanently fixed at 9% in December 2015. For more information view the Protecting Americans from Tax Hikes Acot of 2015.

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

MHEG was happy to learn that two of our partners received awards this year recognizing them for their outstanding service.

Partners of French Quarter II during the award presentation on August 26, 2016.

- French Quarter II (MHEG Fund 40) developed by Mennonite Housing, located in Wichita, Kansas - Simmons Senior Housing (MHEG Fund 40) developed by ANDA, located in Kansas City, Kansas Congratulations to these leading developers on their achievements.

Portfolio Update

January

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

Developments

KHRC Board Meeting: Jan. 12th Topeka, KS - KDFA Board Room

Counties Represented

181

Cities Represented

219

TDHCA Board Meeting: Jan. 26th Austin, TX - Capitol Extension Auditorium

Vacancy Percentage

5.57%*

Debt Coverage Ratio

1.52*

CHFA Board Meeting: Jan. 26th Denver, CO - CHFA Board Room

Information current as of 12/01/16 *Percentage compiled from 10/31/16 figures using stabilized developments only, vacancy percentage is using economic vacancy.

Units

March

473 14,344

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.

NIFA’s Housing Innovation Marketplace: Mar. 21st-22nd LaVista, NE - LaVista Conference Center Annual Nebraska Appreciation Dinner: Mar. 21st LaVista, NE - Nebraska Brewing Company

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

6

Service Days MHEG loves to support its partners through fundraisers and donations, but we also enjoy giving time and sending staff to volunteer for service days.

Lisa Bryan and Brooke Smith from MHEG’s Topeka office participated in building a playground for Topeka Rescue Mission’s newest facility this past October. (top row pictures) Amy Leonard from MHEG’s Des Moines office partnered with several residents and community members for a service day at Home to Stay this past July. Volunteers helped with improving landscaping and building birdhouses for the property. (bottom row pictures) 1

Volume 9, Issue 3

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

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Season’s Greetings Friends! It is my sincere hope that 2016 has been a success for each of you! At this time of year, I like to reflect on MHEG, our mission and whether or not we are actually changing lives for a better tomorrow by promoting the development and sustainability of quality affordable housing. Thanks to partners like each of you, it appears we are making a difference. This holiday season, our portfolio of investments helped keep over 14,000 families safe, warm and together. We are proud to serve people of low and moderate income, the homeless, veterans, victims of domestic violence and anyone who has been dismissed and relegated to society’s hinterlands.

Certainly, 2016 has been a year of disruption. However, throughout the twists and turns of the past 12 months, one thing has not changed – the need for quality, affordable rental homes for all people.

According to the Joint Center for Housing Studies of Harvard University, an unprecedented 11 million renter households spend more than half of their monthly income on rent. As the A.C.T.I.O.N. Coalition notes, with that renter cost burden, there is very little left for the other necessities of life, such as food, healthcare, education and transportation to employment. The implications of this fact on the lives of low-income renters are staggering and extend well beyond housing.

Looking forward, 2017 seems poised to bring more disruption and uncertainty. With Republicans controlling the White House and both houses of Congress, the chances for comprehensive corporate tax reform have increased. But, as in 2016, the need for quality, affordable housing won’t change. With that in mind, we all need to actively advocate for affordable housing resources.

is important to communicate just how effective the Housing Credit is in providing affordable housing. As you will see later on in this newsletter, groundbreakings and ribbon cuttings provide great opportunities to interact with your Senator or Representative. Invite them to attend your event, deliver a few words, view the finished product and meet our most important stakeholders – the residents. Please contact us if you would like any assistance planning such an event. Please also visit rentalhousingaction.org for great stateby-state advocacy resources.

Before signing off, I want to recognize and thank one of our long time service leaders, Rick Jackson, for his 13 years of service on MHEG’s Board of Directors. He provided invaluable leadership, guidance and advice to MHEG over the last decade, all while serving as the Chief Lending Officer at Capitol Federal Bank in Topeka, Kansas. The commitment that Rick and all of our Board members and O&I Committee members make to MHEG and to affordable housing is something we truly appreciate. Our success is their success.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for changing so many lives for a better tomorrow this year! We at MHEG look forward to partnering with all of you again in 2017 and changing even more lives.

Kindest regards, John Wiechmann

What can you do on the home front? Meet with your Congressional delegation and their staff, ideally at one of your developments. It

Central Region Update Pat Michaelis

Happy Holidays to All, I can’t believe how fast they come around. It’s kind of like a roll of toilet paper. Each revolution is a little faster. But keep them coming, I am not ready for the alternative.

In my previous life, I was a banker and made many, many loans both large and small. There were three C’s I always considered when approving a loan: Character, Capacity and Collateral.

Character. Can I trust you, do you do what you say, do you show up on time, did your projects in the past have a positive outcome? In other words, can I depend on you.

Capacity. Do you have the ability to repay the loan from your income and cashflow? Is it steady and dependable until the loan is repaid?

Collateral. Is there a reasonable down payment and / or other assets that can be pledged, so that in the event capacity is inadequate, the collateral can be liquidated and the loan repaid in full?

All are important and necessary, but as I considered doing business with a customer, they had to have great Character. If not, no deal, game over. Period. The qualities of trust, dependability, success and honesty were absolute.

I say all this to suggest that you look for the same qualities in your creditors, vendors, suppliers and others you are doing business with and who play a critical role in your business and its success. If you can’t depend on them, in good times and bad, the rest doesn’t matter.

(L to R) Alan Joseph, Pete Catanese, Fred Bentley, Cliff Cohen and Santo (Sam) Catanese or as Pat like’s to refer to them, “the “sage of our industry,” attending our annual Kansas Appreication Dinner on August 25, 2016, in Leawood, Kansas.

2

December 2016

Give it some thought. I am sure you will see my point.

All the best to you from the MHEG Team.

In a previous newsletter I wrote about “NIMBYism” (not in my backyard viewpoints), I mentioned that many people aren’t even aware that the developments they drive by everyday are affordable. I’d like to expand on that topic more and delve into perceptions versus reality on affordable housing developed today.

When many people think of affordable housing, images of older HUD developments that were constructed in the 1960-70’s are what come to mind. The programs that those developments were constructed with utilized very prescriptive design and with far less quality of construction, known by the unflattering moniker of ‘projects’. They were not structured with adequate replacement reserves to provide for future repairs and upkeep. Another form of affordable housing we see comes in the form of older buildings that over time have become run down and have become affordable because they can no longer command top dollar rents. This is known as naturally occurring affordable housing. I’d like to compare this with what we are able to build using the Low Income Housing Tax Credit (LIHTC) in today’s world.

many cases exceeding that of what is being built in single family homes or market rate apartments.

Earlier this week I had the opportunity to look at a proposed acquisition and rehabilitation of an existing development that would fall under the naturally occurring affordable housing category. The redevelopment plan was not going to use LIHTC. I bring this up because I was surprised by the underwriting and rehabilitation plan for the project. Not only would the project not meet the standards of today’s LIHTC industry, but it wasn’t even close. The financial projections were not realistically feasible with inadequate reserves and the rehabilitation standards were half of what would be required by the LIHTC industry to ensure the property would hold up over time.

‘Affordable’ does not always mean less desirable and market-rate does not always mean better quality. Thank you for supporting our mission of developing safe, quality affordable housing. Have a great holiday season!

The LIHTC allows for freedom in design, allowing the development to be designed to fit in with our neighborhoods and with what the community would want to see. Almost every state has construction, design and energy efficiencies standards that call for top quality materials and longevity. In

Northwest Region Update Jen Oscarson

Affordable or market rate, which is which?

As we wind down 2016 I would like to highlight some exceptional partnerships that have been forged in the Northwest region: This year Pioneer Group out of Topeka, Kansas opened Victory Place a 20-unit new construction development for U.S. Veterans and their families in Grand Island, Nebraska, providing homes to those who have done so much for all of us. The property is north of the Grand Island Veterans Affairs Medical Center and includes one- and two-bedroom units. A special thank you to Cindy Koster at MHEG for working so diligently throughout the years to make this deal a reality.

Together with our exceptional partner Lloyd Companies we closed on 39 new units of housing in Sioux Falls, South Dakota with the Sioux Falls Housing Ministry (SFHM). This development compliments the mission of the SFHM Christian Outreach to offer centralize services, reduce the duplication of services holistic healing of individuals including programs that help neighbors with low rental rates. The goal is for individuals to thrive through peace spiritually, physically, emotionally and financially.

In November we celebrated Northfield at Stapleton Apartments, a 84-unit newly constructed affordable housing development in the tenth bestselling master planned community in the country, Stapleton, Colorado. Recognizing the critical need and great opportunity to produce affordable housing in a self-sustaining neighborhood where jobs, shopping, grocery and more amenities are a short walk, bike or bus ride away. The City of Denver, master developer Forest City, the State of Colorado, Northeast Denver Housing Center and MHEG partnered to develop housing that meets the need for 30-60% AMI’s in the community. The development has shared access to many amenities including swimming pools, fitness centers and an extensive park system with hiking and bike trails. This is truly an exemplary community.

Thank you to all that make our work possible and please remember to keep inviting elected officials to all open houses ensuring the viability of the housing credit and all the value it provides each and every resident for the years to come. Cheers to 2016 and a warm welcome to 2017!

South Region Update Andrea Frymire

It has been a very busy year for the Southern Region. Among a myriad of activities, we helped plan, sponsor and host a series of Regional Housing Forums across the state of Oklahoma, highlighting Oklahoma’s Housing Needs Assessment.

In Arkansas, we had a busy year, submitting lots of input on the 2017 QAP. We’ve added another two developments in Arkansas this year with one more pending closing and several others under review.

In Texas, we closed our second deal in Wichita Falls: Reserves at Summit West as well as a development in Perryton.

A special thank you to all of our partners who attended our Annual Affordable Housing Luncheon in Oklahoma at the Gaylord Pickens Museum. Once again we had a great venue, great company and great

food! This annual event is our thank you to the affordable housing community in Oklahoma and one of the many ways we serve our partners.

With many legislative issues expected at both the federal and state level in 2017, please know that I will be tracking issues, meeting with our respective delegation and continuing to support our Mission throughout the Southern Region. If there is anything I can do to be of assistance, please let me know.

Thank you to all of our partners throughout 2016 for another successful year! It is a pleasure working with each and every one of you!

I wish you all a wonderful holiday season and a prosperous New Year.

3

Volume 9, Issue 3

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

CEO Update

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Season’s Greetings Friends! It is my sincere hope that 2016 has been a success for each of you! At this time of year, I like to reflect on MHEG, our mission and whether or not we are actually changing lives for a better tomorrow by promoting the development and sustainability of quality affordable housing. Thanks to partners like each of you, it appears we are making a difference. This holiday season, our portfolio of investments helped keep over 14,000 families safe, warm and together. We are proud to serve people of low and moderate income, the homeless, veterans, victims of domestic violence and anyone who has been dismissed and relegated to society’s hinterlands.

Certainly, 2016 has been a year of disruption. However, throughout the twists and turns of the past 12 months, one thing has not changed – the need for quality, affordable rental homes for all people.

According to the Joint Center for Housing Studies of Harvard University, an unprecedented 11 million renter households spend more than half of their monthly income on rent. As the A.C.T.I.O.N. Coalition notes, with that renter cost burden, there is very little left for the other necessities of life, such as food, healthcare, education and transportation to employment. The implications of this fact on the lives of low-income renters are staggering and extend well beyond housing.

Looking forward, 2017 seems poised to bring more disruption and uncertainty. With Republicans controlling the White House and both houses of Congress, the chances for comprehensive corporate tax reform have increased. But, as in 2016, the need for quality, affordable housing won’t change. With that in mind, we all need to actively advocate for affordable housing resources.

is important to communicate just how effective the Housing Credit is in providing affordable housing. As you will see later on in this newsletter, groundbreakings and ribbon cuttings provide great opportunities to interact with your Senator or Representative. Invite them to attend your event, deliver a few words, view the finished product and meet our most important stakeholders – the residents. Please contact us if you would like any assistance planning such an event. Please also visit rentalhousingaction.org for great stateby-state advocacy resources.

Before signing off, I want to recognize and thank one of our long time service leaders, Rick Jackson, for his 13 years of service on MHEG’s Board of Directors. He provided invaluable leadership, guidance and advice to MHEG over the last decade, all while serving as the Chief Lending Officer at Capitol Federal Bank in Topeka, Kansas. The commitment that Rick and all of our Board members and O&I Committee members make to MHEG and to affordable housing is something we truly appreciate. Our success is their success.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for changing so many lives for a better tomorrow this year! We at MHEG look forward to partnering with all of you again in 2017 and changing even more lives.

Kindest regards, John Wiechmann

What can you do on the home front? Meet with your Congressional delegation and their staff, ideally at one of your developments. It

Central Region Update Pat Michaelis

Happy Holidays to All, I can’t believe how fast they come around. It’s kind of like a roll of toilet paper. Each revolution is a little faster. But keep them coming, I am not ready for the alternative.

In my previous life, I was a banker and made many, many loans both large and small. There were three C’s I always considered when approving a loan: Character, Capacity and Collateral.

Character. Can I trust you, do you do what you say, do you show up on time, did your projects in the past have a positive outcome? In other words, can I depend on you.

Capacity. Do you have the ability to repay the loan from your income and cashflow? Is it steady and dependable until the loan is repaid?

Collateral. Is there a reasonable down payment and / or other assets that can be pledged, so that in the event capacity is inadequate, the collateral can be liquidated and the loan repaid in full?

All are important and necessary, but as I considered doing business with a customer, they had to have great Character. If not, no deal, game over. Period. The qualities of trust, dependability, success and honesty were absolute.

I say all this to suggest that you look for the same qualities in your creditors, vendors, suppliers and others you are doing business with and who play a critical role in your business and its success. If you can’t depend on them, in good times and bad, the rest doesn’t matter.

(L to R) Alan Joseph, Pete Catanese, Fred Bentley, Cliff Cohen and Santo (Sam) Catanese or as Pat like’s to refer to them, “the “sage of our industry,” attending our annual Kansas Appreication Dinner on August 25, 2016, in Leawood, Kansas.

2

December 2016

Give it some thought. I am sure you will see my point.

All the best to you from the MHEG Team.

In a previous newsletter I wrote about “NIMBYism” (not in my backyard viewpoints), I mentioned that many people aren’t even aware that the developments they drive by everyday are affordable. I’d like to expand on that topic more and delve into perceptions versus reality on affordable housing developed today.

When many people think of affordable housing, images of older HUD developments that were constructed in the 1960-70’s are what come to mind. The programs that those developments were constructed with utilized very prescriptive design and with far less quality of construction, known by the unflattering moniker of ‘projects’. They were not structured with adequate replacement reserves to provide for future repairs and upkeep. Another form of affordable housing we see comes in the form of older buildings that over time have become run down and have become affordable because they can no longer command top dollar rents. This is known as naturally occurring affordable housing. I’d like to compare this with what we are able to build using the Low Income Housing Tax Credit (LIHTC) in today’s world.

many cases exceeding that of what is being built in single family homes or market rate apartments.

Earlier this week I had the opportunity to look at a proposed acquisition and rehabilitation of an existing development that would fall under the naturally occurring affordable housing category. The redevelopment plan was not going to use LIHTC. I bring this up because I was surprised by the underwriting and rehabilitation plan for the project. Not only would the project not meet the standards of today’s LIHTC industry, but it wasn’t even close. The financial projections were not realistically feasible with inadequate reserves and the rehabilitation standards were half of what would be required by the LIHTC industry to ensure the property would hold up over time.

‘Affordable’ does not always mean less desirable and market-rate does not always mean better quality. Thank you for supporting our mission of developing safe, quality affordable housing. Have a great holiday season!

The LIHTC allows for freedom in design, allowing the development to be designed to fit in with our neighborhoods and with what the community would want to see. Almost every state has construction, design and energy efficiencies standards that call for top quality materials and longevity. In

Northwest Region Update Jen Oscarson

Affordable or market rate, which is which?

As we wind down 2016 I would like to highlight some exceptional partnerships that have been forged in the Northwest region: This year Pioneer Group out of Topeka, Kansas opened Victory Place a 20-unit new construction development for U.S. Veterans and their families in Grand Island, Nebraska, providing homes to those who have done so much for all of us. The property is north of the Grand Island Veterans Affairs Medical Center and includes one- and two-bedroom units. A special thank you to Cindy Koster at MHEG for working so diligently throughout the years to make this deal a reality.

Together with our exceptional partner Lloyd Companies we closed on 39 new units of housing in Sioux Falls, South Dakota with the Sioux Falls Housing Ministry (SFHM). This development compliments the mission of the SFHM Christian Outreach to offer centralize services, reduce the duplication of services holistic healing of individuals including programs that help neighbors with low rental rates. The goal is for individuals to thrive through peace spiritually, physically, emotionally and financially.

In November we celebrated Northfield at Stapleton Apartments, a 84-unit newly constructed affordable housing development in the tenth bestselling master planned community in the country, Stapleton, Colorado. Recognizing the critical need and great opportunity to produce affordable housing in a self-sustaining neighborhood where jobs, shopping, grocery and more amenities are a short walk, bike or bus ride away. The City of Denver, master developer Forest City, the State of Colorado, Northeast Denver Housing Center and MHEG partnered to develop housing that meets the need for 30-60% AMI’s in the community. The development has shared access to many amenities including swimming pools, fitness centers and an extensive park system with hiking and bike trails. This is truly an exemplary community.

Thank you to all that make our work possible and please remember to keep inviting elected officials to all open houses ensuring the viability of the housing credit and all the value it provides each and every resident for the years to come. Cheers to 2016 and a warm welcome to 2017!

South Region Update Andrea Frymire

It has been a very busy year for the Southern Region. Among a myriad of activities, we helped plan, sponsor and host a series of Regional Housing Forums across the state of Oklahoma, highlighting Oklahoma’s Housing Needs Assessment.

In Arkansas, we had a busy year, submitting lots of input on the 2017 QAP. We’ve added another two developments in Arkansas this year with one more pending closing and several others under review.

In Texas, we closed our second deal in Wichita Falls: Reserves at Summit West as well as a development in Perryton.

A special thank you to all of our partners who attended our Annual Affordable Housing Luncheon in Oklahoma at the Gaylord Pickens Museum. Once again we had a great venue, great company and great

food! This annual event is our thank you to the affordable housing community in Oklahoma and one of the many ways we serve our partners.

With many legislative issues expected at both the federal and state level in 2017, please know that I will be tracking issues, meeting with our respective delegation and continuing to support our Mission throughout the Southern Region. If there is anything I can do to be of assistance, please let me know.

Thank you to all of our partners throughout 2016 for another successful year! It is a pleasure working with each and every one of you!

I wish you all a wonderful holiday season and a prosperous New Year.

3

Volume 9, Issue 3

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

Property Spotlight: Model Cities BROWNstone Limited Partnership

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

1

Earlier this year MHEG closed on our second partnership in Minnesota with Model Cities for The BROWNstone in St. Paul. Model Cities in concert with the development initiative in St. Paul and the Central Corridor Light Rail Transit (LRT) line commission is poised to provide affordable workforce housing (35 units), commercial and retail uses, 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 sq. ft. of commercial space, including restaurants and offices. The second floor, approximately 12,700 sq. ft., 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.

2

3

1) MHEG was excited to participate in a ribbon cutting ceremony for Ridgeway Villas at the Legends (MHEG Fund 40) on July 11, 2016, in Raymore, Missouri. This new development will provide 56 new multifamily units.

2) Mesner Development Co and Schuyler Community Development held a ground breaking ceremony on September 6, 2016, for Kracl Meadows (MHEG Fund 44) in Schuyler, Nebraska. When complete, this property will provide 14 new units for people 55+.

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.

3) Pat Michaelis of MHEG (far left) participates in a ribbon cutting ceremony for Bluffview Place (MHEG Fund 44) on September 7, 2016, in Wichita, Kansas. This 28-unit development will be comanaged by Mennonite Housing Rehabilitation Services and StepStone, Inc., who will provide resident families that are survivors of domestic violence services such as counseling, group support, training and other assistance.

4) MACO Development Company and MACO Management Co held an open house ceremony on September 15, 2016, for Gardner Estates (MHEG Fund 44) in Gardner, Kansas. This recently renovated property will provide 24 units for families in the Gardner community.

Model Cities BROWNstone Limited Partnership General Partners

Model Cities BROWNstone, LLC

Developer

Model Cities of St. Paul, LLC

Property Manager

Sand Companies

December 2016

4

5

6

Closed Acquisitions LIHTC DEVELOPMENTS

FUND

CITY / STATE

OPG Summit West Partners, LLC

MHEG 44 Wichita Falls, TX

Willow Street Residences LLLP

MHEG 46 Denver, CO

UNITS DATE 36

July

DEVELOPER Overland Property Group

80

August

Community Housing Development Assoc

Briarwood Estates at Jonesboro Limited Partnership MHEG 44 Jonesboro, AR

40

August

NELA Properties, LLC

Boone County Special Needs Affordable Housing L.P. MHEG 46 Columbia, MO

28

August

North Star Housing

Eastside Estates, LLC

MHEG 44 Hastings, NE

28

October

Mesner Development Co

Dunbar Homes of Atoka, LLC

MHEG 44 Atoka, OK

32

October

Texoma Building Services, LLC

North Webster, L.P.

MHEG 46 Webster Groves, MO

24

October

Missouri Housing Partners, LLC

Hope Harbor Partners OKC, LP

MHEG 44 Oklahoma City, OK

54

October

Anchor Housing Development, LLC

Parkland Estates II, LP

MHEG 46 North Platte, NE

10

October

Dana Point Development Corp

KCV Reniassance, LLLP

MHEG 44 Denver, CO

172

October

Senior Homes of Colorado Foundation

Kracl Meadows, LLC

MHEG 44 Schuyler, NE

14

November Mesner Development Co

Suites Apartments LLLP

MHEG 46 Longmont, CO

81

November Longmont Housing Authority

OPG Perryton Partners, LLC

MHEG 46 Perryton, TX

48

November Overland Property Group

Keystone Place, LLC

MHEG 46 Wichita, KS

32

November Vintage Construction

Sunnydale Pointe Apartments, LP

MHEG 46 Wichita, KS

48

November Windy Ridge Development, LLC

Talia Apartments, LP

MHEG 46 Springfield, MO

46

November Talia Developers, LLC

Sabata Estates, LP

MHEG 44 David City, NE

12

November Dana Point Development Corp

Ivy Manor Limited Partnership

MHEG 46 Virginia, MN

41

November Arrowhead Economic Opportunity Agency

Brickstones at Riverbend, LLLP

MHEG 46 Des Moines, IA

30

November Anawim Housing

Total Units Closed from July - November Total Units Closed to Date in 2016

4

5) Anawim Housing hosted a groundbreaking celebration for Brickstones at Riverbend (MHEG Fund 46) in Des Moines, Iowa on October 6, 2016. Once complete, Brickstones will provide 30 new units for seniors in the Des Moines metro.

6) Brian Chamberlain (Andover State Bank), Mark Cox (Vintage Construction), Doug Wisby (MCDS), Dennis Mesa (KHRC) and Pat Michaelis (MHEG) participate in the ribbon cutting ceremony for Chestnut Place (MHEG Fund 44) on October 11, 2016, in McPherson, Kansas.

7) MHEG was very honored to participate in the recent ribbon cutting ceremony for Victory Place (MHEG Community Fund 45) on November 4, 2016, in Grand Island, Nebraska.

Developed by Pioneer Group, Victory Place will provide 26 units for veterans and their families.

8) Teresa Kile (NIFA), Cindy Koster (MHEG), Greg Dunlap (Horizon Bank), Jerad Reimers (Community Liaison for Rep. Adrian Smith), Mayor Jerry Oliver (City of Falls City), and Joel Anderson (Excel Development Group) participate in Wilderness Falls II (MHEG Fund 44) ribbon cutting ceremony in Falls City, Nebraska, on November 9, 2016.

8

7

856 1,362

5

Volume 9, Issue 3

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

Property Spotlight: Model Cities BROWNstone Limited Partnership

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

1

Earlier this year MHEG closed on our second partnership in Minnesota with Model Cities for The BROWNstone in St. Paul. Model Cities in concert with the development initiative in St. Paul and the Central Corridor Light Rail Transit (LRT) line commission is poised to provide affordable workforce housing (35 units), commercial and retail uses, 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 sq. ft. of commercial space, including restaurants and offices. The second floor, approximately 12,700 sq. ft., 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.

2

3

1) MHEG was excited to participate in a ribbon cutting ceremony for Ridgeway Villas at the Legends (MHEG Fund 40) on July 11, 2016, in Raymore, Missouri. This new development will provide 56 new multifamily units.

2) Mesner Development Co and Schuyler Community Development held a ground breaking ceremony on September 6, 2016, for Kracl Meadows (MHEG Fund 44) in Schuyler, Nebraska. When complete, this property will provide 14 new units for people 55+.

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.

3) Pat Michaelis of MHEG (far left) participates in a ribbon cutting ceremony for Bluffview Place (MHEG Fund 44) on September 7, 2016, in Wichita, Kansas. This 28-unit development will be comanaged by Mennonite Housing Rehabilitation Services and StepStone, Inc., who will provide resident families that are survivors of domestic violence services such as counseling, group support, training and other assistance.

4) MACO Development Company and MACO Management Co held an open house ceremony on September 15, 2016, for Gardner Estates (MHEG Fund 44) in Gardner, Kansas. This recently renovated property will provide 24 units for families in the Gardner community.

Model Cities BROWNstone Limited Partnership General Partners

Model Cities BROWNstone, LLC

Developer

Model Cities of St. Paul, LLC

Property Manager

Sand Companies

December 2016

4

5

6

Closed Acquisitions LIHTC DEVELOPMENTS

FUND

CITY / STATE

OPG Summit West Partners, LLC

MHEG 44 Wichita Falls, TX

Willow Street Residences LLLP

MHEG 46 Denver, CO

UNITS DATE 36

July

DEVELOPER Overland Property Group

80

August

Community Housing Development Assoc

Briarwood Estates at Jonesboro Limited Partnership MHEG 44 Jonesboro, AR

40

August

NELA Properties, LLC

Boone County Special Needs Affordable Housing L.P. MHEG 46 Columbia, MO

28

August

North Star Housing

Eastside Estates, LLC

MHEG 44 Hastings, NE

28

October

Mesner Development Co

Dunbar Homes of Atoka, LLC

MHEG 44 Atoka, OK

32

October

Texoma Building Services, LLC

North Webster, L.P.

MHEG 46 Webster Groves, MO

24

October

Missouri Housing Partners, LLC

Hope Harbor Partners OKC, LP

MHEG 44 Oklahoma City, OK

54

October

Anchor Housing Development, LLC

Parkland Estates II, LP

MHEG 46 North Platte, NE

10

October

Dana Point Development Corp

KCV Reniassance, LLLP

MHEG 44 Denver, CO

172

October

Senior Homes of Colorado Foundation

Kracl Meadows, LLC

MHEG 44 Schuyler, NE

14

November Mesner Development Co

Suites Apartments LLLP

MHEG 46 Longmont, CO

81

November Longmont Housing Authority

OPG Perryton Partners, LLC

MHEG 46 Perryton, TX

48

November Overland Property Group

Keystone Place, LLC

MHEG 46 Wichita, KS

32

November Vintage Construction

Sunnydale Pointe Apartments, LP

MHEG 46 Wichita, KS

48

November Windy Ridge Development, LLC

Talia Apartments, LP

MHEG 46 Springfield, MO

46

November Talia Developers, LLC

Sabata Estates, LP

MHEG 44 David City, NE

12

November Dana Point Development Corp

Ivy Manor Limited Partnership

MHEG 46 Virginia, MN

41

November Arrowhead Economic Opportunity Agency

Brickstones at Riverbend, LLLP

MHEG 46 Des Moines, IA

30

November Anawim Housing

Total Units Closed from July - November Total Units Closed to Date in 2016

4

5) Anawim Housing hosted a groundbreaking celebration for Brickstones at Riverbend (MHEG Fund 46) in Des Moines, Iowa on October 6, 2016. Once complete, Brickstones will provide 30 new units for seniors in the Des Moines metro.

6) Brian Chamberlain (Andover State Bank), Mark Cox (Vintage Construction), Doug Wisby (MCDS), Dennis Mesa (KHRC) and Pat Michaelis (MHEG) participate in the ribbon cutting ceremony for Chestnut Place (MHEG Fund 44) on October 11, 2016, in McPherson, Kansas.

7) MHEG was very honored to participate in the recent ribbon cutting ceremony for Victory Place (MHEG Community Fund 45) on November 4, 2016, in Grand Island, Nebraska.

Developed by Pioneer Group, Victory Place will provide 26 units for veterans and their families.

8) Teresa Kile (NIFA), Cindy Koster (MHEG), Greg Dunlap (Horizon Bank), Jerad Reimers (Community Liaison for Rep. Adrian Smith), Mayor Jerry Oliver (City of Falls City), and Joel Anderson (Excel Development Group) participate in Wilderness Falls II (MHEG Fund 44) ribbon cutting ceremony in Falls City, Nebraska, on November 9, 2016.

8

7

856 1,362

5

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

Volume 9, Issue 3

December 2016

City of Omaha Receives National Award for Prospect Village

Inside this Issue: Recent Highlights

1

CEO Update

2

Region Updates

2, 3

Property Spotlight

4

Closed Acquisitions

4

Recent Events

5

Upcoming Events

6

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

July 2016 30%PV

AFR

3.18%

2.18%

August 2016 30%PV

AFR

3.15%

1.90%

September 2016

January

IFA Board Meeting: Jan. 4th Des Moines, IA - IFA Office KHRC Board Meeting: Jan. 12th Topeka, KS - KDFA Board Room OHFA Board Meeting: Jan. 18th Oklahoma City, OK - OHFA Office ADFA Board Meeting: Jan. 19th Little Rock, AR - ADFA Office NIFA CRANE Meeting: Jan. 25th Lincoln, NE - NIFA Board Room TDHCA Board Meeting: Jan. 26th Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Jan. 26th Denver, CO - CHFA Board Room

The City of Omaha Planning Department partnered with 25 organizations to create and implement a holistic neighborhood revitalization model.

The initiative was launched in Prospect Village, a distressed, racially mixed neighborhood in north Omaha. As a result of the broad spectrum of community partners, residents’ needs were met through new housing construction, existing housing rehabilitation, healthy home and energy efficiency upgrades, establishment of community gardens, cultural fairs, neighborhood art projects, financial management training, parenting classes, gang prevention initiatives, and the formation of a viable neighborhood association.

Out of the 90 entries nominated this year, only 20 were selected to receive this honor. Awards were presented in October during NAHRO’s National Conference & Exhibition in New Orleans. Prospect Village was developed by Holy Name Housing Corporation. The development, funded in MHEG Fund 44, provides 30 single family homes.

MHEG is proud to partner with these leading organizations.

2016 Ad Astra Winners

30%PV

AFR

3.15%

1.90%

October 2016

Upcoming Events

The City of Omaha Planning Department was recently chosen as a recipient of the National Association of Housing and Redevelopment Officials (NAHRO) Awards of Excellence: Community Revitalization for its Prospect Village Initiative. The award recognizes the innovative housing and community development projects, programs, and services that member organizations provide to make a difference in the lives they serve.

30%PV

AFR

3.16%

1.95%

November 2016

February

March

IFA Board Meeting: Feb. 1st Des Moines, IA - IFA Office

IFA Board Meeting: Mar. 1st Des Moines, IA - IFA Office

KHRC Board Meeting: Feb. 2nd Topeka, KS - KDFA Board Room

KHRC Board Meeting: Mar. 2nd Topeka, KS - KDFA Board Room

ADFA Board Meeting: Feb. 16th Little Rock, AR - ADFA Office

MHDC Annual Commission Meeting: Mar. 10th Columbia, MO - TBD

TDHCA Board Meeting: Feb. 23rd Austin, TX - Capitol Extension Auditorium

ADFA Board Meeting: Mar. 16th Little Rock, AR - ADFA Office

Developments

CHFA Board Meeting: Feb. 23rd Denver, CO - CHFA Board Room

NIFA’s Housing Innovation Marketplace: Mar. 21st-22nd LaVista, NE - LaVista Conference Center

Counties Represented

181

Cities Represented

219

30%PV

AFR

3.17%

2.07%

Please note we will no longer show the 70% PVC rate as it was permanently fixed at 9% in December 2015. For more information view the Protecting Americans from Tax Hikes Acot of 2015.

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

MHEG was happy to learn that two of our partners received awards this year recognizing them for their outstanding service.

Partners of French Quarter II during the award presentation on August 26, 2016.

- French Quarter II (MHEG Fund 40) developed by Mennonite Housing, located in Wichita, Kansas - Simmons Senior Housing (MHEG Fund 40) developed by ANDA, located in Kansas City, Kansas Congratulations to these leading developers on their achievements.

Portfolio Update Units

Annual Nebraska Appreciation Dinner: Mar. 21st LaVista, NE - Nebraska Brewing Company OHFA Board Meeting: Mar. 22nd Oklahoma City, OK - OHFA Office

473 14,344

Vacancy Percentage

5.57%*

Debt Coverage Ratio

1.52*

Information current as of 12/01/16 *Percentage compiled from 10/31/16 figures using stabilized developments only, vacancy percentage is using economic vacancy.

CHFA Board Meeting: Mar. 23rd 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.

TDHCA Board Meeting: Mar. 23rd Austin, TX - Capitol Extension Auditorium NIFA CRANE Meeting: Mar. 29th Lincoln, NE - NIFA Board Room

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

6

Service Days MHEG loves to support its partners through fundraisers and donations, but we also enjoy giving time and sending staff to volunteer for service days.

Lisa Bryan and Brooke Smith from MHEG’s Topeka office participated in building a playground for Topeka Rescue Mission’s newest facility this past October. (top row pictures) Amy Leonard from MHEG’s Des Moines office partnered with several residents and community members for a service day at Home to Stay this past July. Volunteers helped with improving landscaping and building birdhouses for the property. (bottom row pictures) 1