2016 jul mheg newsletter

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

Volume 9, Issue 2

July 2016

Schenck Receives MHEG Pillar of Housing Award

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 March 2016 30%PV

AFR

3.21%

2.58%

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

April 2016 30%PV

AFR

3.20%

2.57%

August

30%PV

AFR

3.31%

2.61%

June 2016

September

30%PV

AFR

3.22%

2.65% July 2016

October

IFA Board Meeting: Aug. 3rd Des Moines, IA - IFA Office

KHRC Board Meeting: Sept. 1st Topeka, KS - KDFA Board Room

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

IFA Board Meeting: Sept. 7th Des Moines, IA - IFA Office

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

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

2016 HousingIowa Conference: Sept. 7th-8th Des Moines, IA - Marriott Downtown

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

SDHDA Annual Meeting: Aug. 23rd Pierre, SD - SDHDA

Annual Iowa Appreciation Dinner: Sept. 7th Des Moines, IA - Des Moines Arts Center

NIFA Board Meeting: Oct. 21st Lincoln, NE - NIFA Board Room

Developments

NIFA Board Meeting: Aug. 19th Lincoln, NE - NIFA Board Room

TDHCA Board Meeting: Sept. 8th Austin, TX - Capitol Extension Auditorium

SDHDA Annual Housing Conference: Oct. 25th-26th Pierre, SD - Ramkota Hotel & Conference Center

Counties Represented

170

Cities Represented

208

NIFA CRANE Meeting: Oct. 26th Lincoln, NE - NIFA Board Room

Vacancy Percentage

6.32%*

Debt Coverage Ratio

1.67*

CHFA Board Meeting: Oct. 27th Denver, CO - CHFA Board Room

Information current as of 7/29/16 *Percentage compiled from 3/31/16 figures using stabilized developments only, vacancy percentage is using economic vacancy.

NIFA CRANE Meeting: Aug 24th Lincoln, NE - NIFA Board Room

OHFA Board of Trustees Meeting: Sept. 14th Oklahoma City, OK - OHFA’s Conference Room

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

Kansas Housing Conference: Aug. 24th-26th Overland Park, KS - Overland Park Convention Center

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

Annual Kansas Appreciation Dinner: Aug. 25th Leawood, KS - Gaslight Grill

CHFA Board Meeting: Sept. 22nd and 23rd Denver, CO - CHFA Board Room

CHFA Board Meeting: Aug 25th Denver, CO - CHFA Board Room

MHDC Commission Meeting: Sept. 23rd Columbia, MO - TBD

IFA Board Meeting: Nov. 7th Des Moines, IA - IFA Office

TDHCA Board Meeting: Aug. 25th Austin, TX - Capitol Extension Auditorium

NIFA CRANE Meeting: Sept. 28th Lincoln, NE - NIFA Board Room

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

30%PV

AFR

3.22%

2.62%

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.

Portfolio Update Units

November

This award comes as Schenck resigns from his Chairman position on MHEG’s Board of Directors. Schenck an active participant in the affordable housing industry, joined the Board in 2000 and served as the Chairman for the past six years.

In addition, he has served on the Central, Northeast and Northwest Operations & Investment Committees as well as MHEG’s Audit & Investment Committee. His knowledge and leadership will be greatly missed as he’s become a permanent source of support and guidance to MHEG. Schenck retired from his position at Wells Fargo in the fall of 2013 after 45 years of service. He will remain on the MHDF Board of Directors for one more year.

Affordable Housing Day

May 2016

Upcoming Events

At this year’s annual June meeting, John Wiechmann presented Dick Schenck with the MHEG Pillar of Housing Award. The Pillar of Housing Award recognizes individuals who have not only had a significant impact on MHEG, but have shown vision, leadership and commitment to improving affordable housing.

453 13,455

On April 13, 2016, the Oklahoma Coalition for Affordable Housing hosted their First Annual Affordable Housing Day at the State Capitol.

The Coalition received a Proclamation from Governor Mary Fallin declaring April 13, 2016, as Affordable Housing Day in Oklahoma.

Advocates of the affordable housing industry gathered to commemorate the day and meet with lawmakers about the impact affordable housing has on the state.

MHEG was proud to be a sponsor of this event and support the affordable housing needs of Oklahomans. Andrea Frymire (MHEG) is currently serving as the inaugural President of the Board for the Coalition.

For more information about the Oklahoma Coalition for Affordable Housing, visit www. affordablehousingcoalition.org.

John Wiechmann presents Dick Schenck with the MHEG Pillar of Housing Award on June 6th.

Morgan Federal Bank Receives Community Leader Award Morgan Federal Bank in Fort Morgan, Colorado was this year’s recipient of the The Community Leader Award (CLA) presented by the FHLBank Topeka. The CLA award is rotated annually among the four states in its district and awarded to a member who demonstrates extraordinary vision and dedication to the communities it serves. The award also includes a $5,000 donation to an organization of the winning institution’s choice. Morgan Federal Bank chose to award the funds to Eben Ezer Lutheran Care Center to help with their upcoming capital campaign.

Morgan Federal Bank has invested $1.5 million in MHEG funds. MHEG is proud to partner with this great organization.

To learn more about Morgan Federal Bank and how they’ve helped their community, check out this video: https://youtu.be/sh7JZHIf3yM

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.

Annual Oklahoma Appreciation Luncheon: Nov. 16th

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

Andrea Frymire presents OHFA’s Board of Trustee’s Chairman Dick Lillard with a copy of Governor’s Proclamation that April 13th is Affordable Housing Day.

Morgan Federal Bank employees and Board Members with their award after the ceremony. (L to R) Jeff Morford, Jim Berryhill, Mike Berryhill and Tim Weimer.

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Volume 9, Issue 2

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

CEO Update

July 2016

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Greetings Friends!

It’s hard to believe the year is half over, but fall is just around the corner.

MHEG ended its second quarter with our Annual Meeting and Golf Outing at Quarry Oaks. One of the things I like best about this event is the opportunity to see so many of our partners together. It was a great day to be on the course and I hope those that attended had fun.

This year’s meeting was bittersweet as we recognized Dick Schenck for his 16 years of service to MHEG. I will miss Dick’s presence on the Board. He has been a mentor and friend to me during my first four years at MHEG. He was an excellent service leader for MHEG. As indicated earlier in this newsletter, our organization saw tremendous growth during his tenure.

Thankfully, we are fortunate to have a deep bench of leaders on our Board of Directors. Dave Fisher, Senior Executive Vice President and COO of FHLBank Topeka, was appointed as the new Chairman of the Board at the meeting. Dave has been a Board member since 2008 and also serves on our Audit Committee and Operations & Investment Committee for the Central Region and Northwest Region. Like Dick, Dave has been a great mentor and friend. Chris Hensley was appointed as our Vice-Chair. Chris, a member of the Des Moines City Council, is also a great service leader. I very much look forward to working with Dave, Chris and the rest of the Board to help MHEG reach even greater heights.

We also recognized Becky Christoffersen with a short video at this year’s annual meeting. She will formally celebrate her 20th anniversary with MHEG in October. Becky truly is the heart of MHEG; she is an invaluable member of our team. She is mission-driven, dedicated and

an inspiration to many. I cannot say enough about her and her role within MHEG. Thank you Becky, for your years of service and for all that you do for those not only inside of MHEG, but for our partners, investors and developers as well!

If you were unable to attend the annual meeting, I hope we can connect at one of the many state and national conferences MHEG is keeping busy with this summer. In June, staff attended Affordable Housing Association of Arkansas’s annual conference and NCSHA’s Housing Credit Connect, and in July we had staff attend and present at Missouri Workforce Housing Association’s annual summer conference. We’re looking forward to Texas, Kansas and Iowa annual housing conferences, all of which will be held in the coming weeks.

In closing, I would like to remind you that August is a great month to communicate and hold events for members of Congress to attend. Open houses, ribbon cuttings and tours are a great way for elected officials to see the developments and meet residents. Please contact us if MHEG can be of assistance.

This has been a busy summer so far for affordable housing in Iowa. The Iowa Finance Authority released the 2017 draft Qualified Allocation Plan earlier this month with some notable changes. First, the application deadline for the 2017 9% Low Income Housing Tax Credit round has been moved up to November 4th, a month earlier than the previous few years. This will provide a shorter window to complete applications once the final Qualified Allocation Plan is approved. In addition, there have been significant changes to the scoring categories. A few notable items include the Developer Contribution being removed for this year and location near services has been replaced by a category relating to density of units in census tracts. There are several other changes as well. The public hearing is to be held on August 23rd. Please be sure to download and review.

The Iowa Finance Authority has also started to develop the plan for implementation of the National Housing Trust Fund monies that Iowa will receive for the first time. A much needed new resource for the development of affordable housing for households with incomes at or below 30% of the Area Median Gross Income. The initial rules can be downloaded from their website as well. The public hearing for the Trust Fund rules will be August 10th.

Lastly, the 2016 HousingIowa will be held September 7-8th at the Des Moines Downtown Marriott. We look forward to seeing everyone there!

Northwest Region Update Jen Oscarson

We say it every newsletter, but please continue to invite local and federally elected officials to your groundbreakings and open houses. It is working to bring new and protect current valuable funding resources for affordable developments and ultimately the residents we serve.

With the work of housing advocates the Nebraska Legislature has adopted a state low-income housing tax credit to accelerate the development of low-income housing in Nebraska (Laws 2016, LB 884). Nebraska is now one of sixteen states that have a state low-income housing tax credit program.

Enjoy the rest of your summer!

In Colorado HB-1465 extends the state LIHTC program through 2019 and authorizes CHFA to allocate $5 million in state LIHTC annually in 2017, 2018, and 2019. Without passage of HB-1465, the state LIHTC program would have sunset at the end of this calendar year.

Kindest regards,

Minnesota had a bonding bill that would have allocated $60 million in Housing Infrastructure Bonds but at the 13th hour the legislature adjourned and no bonding bill was passed. Developers were encouraged to apply for both Housing Infrastructure Bonds and Low Income Housing Tax Credits during the competitive application process with the hope that a special legislative session will be called prior to the October 2016 announcement of the awards granting the much needed dollars to housing. We will have to wait and see….

John Wiechmann

Central Region Update

In South Dakota I led a training on what Investors are looking for and a high level Tax Credit 101 to a crowd of 50 or so participants from around the state including developers, city leaders and non-profits. Developments at all levels, transitional housing to executive housing, are in need in smaller communities around the state. A recent report shows homelessness in South Dakota is up 14% from last year.

We sincerely thank our partners and investors for your continued partnership and welcome the new partnerships being formed daily! With your support we will continue finance the development of quality, affordable housing.

Pat Michaelis Enjoy the Journey

Do you remember a few years back when it felt like there were a few months, okay, maybe a couple during the year when you could have a little downtime; an off season. Perhaps I was unique but I do remember there were a couple months after the first of the year when things slowed down, work could be at a slower pace, and a little time off was in order. If that is still true for you, great, good for you. It’s no longer the norm for most of us.

What has changed? The biggest one besides increased competition is expansion. Whether you are a developer, lender, contractor, appraiser, architect or syndicator, you are now covering more real-estate than before. Competition for a LIHTC award and resulting potential customers has motivated all of us to expand our footprint. Securing deals is our lifeline. MHEG added Missouri, Colorado, South Dakota, Minnesota, Arkansas and Texas to the foundation states of Nebraska, Kansas, Iowa and Oklahoma. The Central Region includes Kansas and Missouri so Chris, Brooke, Lisa, and the entire MHEG acquisition team are working on applications due in February and September, with awards announced in May and December and underwritings and closings in between. Investor cultivation is always on-going. MHEG’s other three regions are doing the same to meet your deadlines and be ready to close on time.

I am confident that you are feeling similar to what I am describing. It’s the way of our industry. It is a matter of survival.

Please don’t misunderstand me, I am not complaining, I am very happy to be working hard with all of you. The alternative is very unappealing. But my advice to you is to live a little along the way and enjoy the journey we are all on together.

Pat Michaelis attends the ribbon cutting ceremony for Wedgewood Apartments in Wellington, Kansas on June 2, 2016. Developed by Housing Investment Partners II, Wedgewood will provide 40 new multifamily units.

2

As always, the Central Region Team of Chris, Brooke, Lisa and I are willing and able to assist you.

South Region Update Andrea Frymire

It’s been a busy summer for MHEG, and that includes the Southern region too. We had the opportunity to sponsor the Oklahoma Coalition for Affordable Housing’s Regional Housing Forums, held in partnership with the Federal Reserve Bank of Kansas City-Oklahoma City. The forums were held in Alva, Ardmore, Lawton, Oklahoma City and Tulsa during the months of June and July. These events provided a great resource for community leaders, developers, nonprofits, bankers, etc. to hear the results of the Needs Assessment and discuss next steps.

Summer is also award season for our region. Oklahoma awards were announced in May, Texas was the last week of July and Arkansas awards will be announced in August. We look forward to working with old and new developers to create more affordable housing options throughout our footprint furthering our mission and providing excellent, local service for our partners.

It is also the time of year our states start drafting their 2017 QAPs. MHEG staff continues to monitor these processes and submits suggestions and ideas to HFA staff on a regular basis. It is the responsibility of the HFA’s to efficiently award credits in a manner that alleviates housing need and betters the lives of their citizens. With limited state and federal

resources, we must do all that we can to stretch our dollars for the most impact.

In closing, I’d like to share a photo from the OHFA’s Housing Summit this past April. MHEG was a Presenting Sponsor and I had the honor of meeting and introducing Noah Galloway as a keynote speaker. Noah is a veteran that lost his left arm and left leg during an IED attack in Operation Iraqi Freedom in 2005. He’s now a motivational speaker and personal trainer sharing his story and motivating others.

Noah discussed the loss of his limbs, the long road to recovery, the importance of family and how he now gives back through his No Excuses Dennis Shockley (OHFA), Noah Galloway and Andrea Frymire (MHEG) at OHFA’s Housing Charitable Fund.

Summit.

3

Volume 9, Issue 2

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

CEO Update

July 2016

Northeast Region Update

John Wiechmann

Scott Fitzpatrick

Greetings Friends!

It’s hard to believe the year is half over, but fall is just around the corner.

MHEG ended its second quarter with our Annual Meeting and Golf Outing at Quarry Oaks. One of the things I like best about this event is the opportunity to see so many of our partners together. It was a great day to be on the course and I hope those that attended had fun.

This year’s meeting was bittersweet as we recognized Dick Schenck for his 16 years of service to MHEG. I will miss Dick’s presence on the Board. He has been a mentor and friend to me during my first four years at MHEG. He was an excellent service leader for MHEG. As indicated earlier in this newsletter, our organization saw tremendous growth during his tenure.

Thankfully, we are fortunate to have a deep bench of leaders on our Board of Directors. Dave Fisher, Senior Executive Vice President and COO of FHLBank Topeka, was appointed as the new Chairman of the Board at the meeting. Dave has been a Board member since 2008 and also serves on our Audit Committee and Operations & Investment Committee for the Central Region and Northwest Region. Like Dick, Dave has been a great mentor and friend. Chris Hensley was appointed as our Vice-Chair. Chris, a member of the Des Moines City Council, is also a great service leader. I very much look forward to working with Dave, Chris and the rest of the Board to help MHEG reach even greater heights.

We also recognized Becky Christoffersen with a short video at this year’s annual meeting. She will formally celebrate her 20th anniversary with MHEG in October. Becky truly is the heart of MHEG; she is an invaluable member of our team. She is mission-driven, dedicated and

an inspiration to many. I cannot say enough about her and her role within MHEG. Thank you Becky, for your years of service and for all that you do for those not only inside of MHEG, but for our partners, investors and developers as well!

If you were unable to attend the annual meeting, I hope we can connect at one of the many state and national conferences MHEG is keeping busy with this summer. In June, staff attended Affordable Housing Association of Arkansas’s annual conference and NCSHA’s Housing Credit Connect, and in July we had staff attend and present at Missouri Workforce Housing Association’s annual summer conference. We’re looking forward to Texas, Kansas and Iowa annual housing conferences, all of which will be held in the coming weeks.

In closing, I would like to remind you that August is a great month to communicate and hold events for members of Congress to attend. Open houses, ribbon cuttings and tours are a great way for elected officials to see the developments and meet residents. Please contact us if MHEG can be of assistance.

This has been a busy summer so far for affordable housing in Iowa. The Iowa Finance Authority released the 2017 draft Qualified Allocation Plan earlier this month with some notable changes. First, the application deadline for the 2017 9% Low Income Housing Tax Credit round has been moved up to November 4th, a month earlier than the previous few years. This will provide a shorter window to complete applications once the final Qualified Allocation Plan is approved. In addition, there have been significant changes to the scoring categories. A few notable items include the Developer Contribution being removed for this year and location near services has been replaced by a category relating to density of units in census tracts. There are several other changes as well. The public hearing is to be held on August 23rd. Please be sure to download and review.

The Iowa Finance Authority has also started to develop the plan for implementation of the National Housing Trust Fund monies that Iowa will receive for the first time. A much needed new resource for the development of affordable housing for households with incomes at or below 30% of the Area Median Gross Income. The initial rules can be downloaded from their website as well. The public hearing for the Trust Fund rules will be August 10th.

Lastly, the 2016 HousingIowa will be held September 7-8th at the Des Moines Downtown Marriott. We look forward to seeing everyone there!

Northwest Region Update Jen Oscarson

We say it every newsletter, but please continue to invite local and federally elected officials to your groundbreakings and open houses. It is working to bring new and protect current valuable funding resources for affordable developments and ultimately the residents we serve.

With the work of housing advocates the Nebraska Legislature has adopted a state low-income housing tax credit to accelerate the development of low-income housing in Nebraska (Laws 2016, LB 884). Nebraska is now one of sixteen states that have a state low-income housing tax credit program.

Enjoy the rest of your summer!

In Colorado HB-1465 extends the state LIHTC program through 2019 and authorizes CHFA to allocate $5 million in state LIHTC annually in 2017, 2018, and 2019. Without passage of HB-1465, the state LIHTC program would have sunset at the end of this calendar year.

Kindest regards,

Minnesota had a bonding bill that would have allocated $60 million in Housing Infrastructure Bonds but at the 13th hour the legislature adjourned and no bonding bill was passed. Developers were encouraged to apply for both Housing Infrastructure Bonds and Low Income Housing Tax Credits during the competitive application process with the hope that a special legislative session will be called prior to the October 2016 announcement of the awards granting the much needed dollars to housing. We will have to wait and see….

John Wiechmann

Central Region Update

In South Dakota I led a training on what Investors are looking for and a high level Tax Credit 101 to a crowd of 50 or so participants from around the state including developers, city leaders and non-profits. Developments at all levels, transitional housing to executive housing, are in need in smaller communities around the state. A recent report shows homelessness in South Dakota is up 14% from last year.

We sincerely thank our partners and investors for your continued partnership and welcome the new partnerships being formed daily! With your support we will continue finance the development of quality, affordable housing.

Pat Michaelis Enjoy the Journey

Do you remember a few years back when it felt like there were a few months, okay, maybe a couple during the year when you could have a little downtime; an off season. Perhaps I was unique but I do remember there were a couple months after the first of the year when things slowed down, work could be at a slower pace, and a little time off was in order. If that is still true for you, great, good for you. It’s no longer the norm for most of us.

What has changed? The biggest one besides increased competition is expansion. Whether you are a developer, lender, contractor, appraiser, architect or syndicator, you are now covering more real-estate than before. Competition for a LIHTC award and resulting potential customers has motivated all of us to expand our footprint. Securing deals is our lifeline. MHEG added Missouri, Colorado, South Dakota, Minnesota, Arkansas and Texas to the foundation states of Nebraska, Kansas, Iowa and Oklahoma. The Central Region includes Kansas and Missouri so Chris, Brooke, Lisa, and the entire MHEG acquisition team are working on applications due in February and September, with awards announced in May and December and underwritings and closings in between. Investor cultivation is always on-going. MHEG’s other three regions are doing the same to meet your deadlines and be ready to close on time.

I am confident that you are feeling similar to what I am describing. It’s the way of our industry. It is a matter of survival.

Please don’t misunderstand me, I am not complaining, I am very happy to be working hard with all of you. The alternative is very unappealing. But my advice to you is to live a little along the way and enjoy the journey we are all on together.

Pat Michaelis attends the ribbon cutting ceremony for Wedgewood Apartments in Wellington, Kansas on June 2, 2016. Developed by Housing Investment Partners II, Wedgewood will provide 40 new multifamily units.

2

As always, the Central Region Team of Chris, Brooke, Lisa and I are willing and able to assist you.

South Region Update Andrea Frymire

It’s been a busy summer for MHEG, and that includes the Southern region too. We had the opportunity to sponsor the Oklahoma Coalition for Affordable Housing’s Regional Housing Forums, held in partnership with the Federal Reserve Bank of Kansas City-Oklahoma City. The forums were held in Alva, Ardmore, Lawton, Oklahoma City and Tulsa during the months of June and July. These events provided a great resource for community leaders, developers, nonprofits, bankers, etc. to hear the results of the Needs Assessment and discuss next steps.

Summer is also award season for our region. Oklahoma awards were announced in May, Texas was the last week of July and Arkansas awards will be announced in August. We look forward to working with old and new developers to create more affordable housing options throughout our footprint furthering our mission and providing excellent, local service for our partners.

It is also the time of year our states start drafting their 2017 QAPs. MHEG staff continues to monitor these processes and submits suggestions and ideas to HFA staff on a regular basis. It is the responsibility of the HFA’s to efficiently award credits in a manner that alleviates housing need and betters the lives of their citizens. With limited state and federal

resources, we must do all that we can to stretch our dollars for the most impact.

In closing, I’d like to share a photo from the OHFA’s Housing Summit this past April. MHEG was a Presenting Sponsor and I had the honor of meeting and introducing Noah Galloway as a keynote speaker. Noah is a veteran that lost his left arm and left leg during an IED attack in Operation Iraqi Freedom in 2005. He’s now a motivational speaker and personal trainer sharing his story and motivating others.

Noah discussed the loss of his limbs, the long road to recovery, the importance of family and how he now gives back through his No Excuses Dennis Shockley (OHFA), Noah Galloway and Andrea Frymire (MHEG) at OHFA’s Housing Charitable Fund.

Summit.

3

Volume 9, Issue 2

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

Property Spotlight: 3612 Cuming Limited Partnership The Salvation Army recently held a Topping Off Ceremony for the Renaissance Village, a new four-story development located at their 36th & Cuming Street campus in Omaha, Nebraska. The celebration included guests signing the final beam prior to it being placed atop of the deveropment.

July 2016

Closed Acquisitions 3612 Cuming Limited Partnership

General Partners

The Salvation Army Services, Inc

Developer

The Salvation Army

Seldin Company This new building will provide a variety of services and transitional housing. The Property Manager 1st floor will house their Early Head Start program for families and children and administrative offices. The Transitional Housing Residential Units (THRU) Program and 37th Street Residential Readiness Program will have tenants living in LIHTC units on the 2nd and 3rd floors. And the 4th floor will contain the Mental Health Respite program. Each program focuses on a specific population and addressing their specific housing needs. The building will also have space for counseling offices.

LIHTC DEVELOPMENTS

FUND

CITY / STATE

UNITS DATE

DEVELOPER

Columbia Heights Limited Partnership

MHEG 44 Camden, AR

33

March

PDC Companies

Hugo Affordable Housing IV, LLC

MHEG 45 Hugo, OK

10

March

Sunview Development

Grant Prairie Townhomes II LLC

MHEG 44 Ulysses, KS

10

April

Builders Development

Landmark Second, LP

MHEG 44 Topeka, KS

83

April

LP Developers, LLC

Valley View Place LP

MHEG 44 Woodland Park, CO

24

May

AmericaWest Housing Solutions

Central Villas Limited Partnership

MHEG 44 Aberdeen, SD

40

May

Lloyd Companies

Technology Heights Apartments Limited Partnership MHEG 44 Sioux Falls, SD

39

May

Lloyd Companies

Once complete, the Salvation Army will demolish the Lied Renaissance Center building, a 110-year-old former hospital that is currently home to their housing programs and services. Construction is on schedule to be completed in the summer of 2017.

Chloe Place Apartments, LP

MHEG 44 Hannibal, MO

25

May

Preferred Family Healthcare, Inc.

Buchanan’s Crossing Subdivision Kansas City LP

MHEG 42 Kansas City, KS

24

June

Tartan Residential, Inc.

This project was syndicated through FNBO Community Fund I, LP, a fund solely invested in by First National Bank of Omaha.

Model Cities BROWNstone Limited Partnership

MHEG 44 St. Paul, MN

35

June

Model Cities of St. Paul, LLC

Madill Affordable Housing II, LLC

MHEG 44 Madill, OK

32

June

LW Development, LLC

Arkoma Housing Associates, LP

MHEG 46 Arkoma, OK

24

July

MACO Development Company, LLC

Quaillan Courts, LLC

MHEG 44 McCook, NE

16

July

Mesner Development Co

Total Units Closed from March - July

395

Total Units Closed in 2016

473

Tim Hart from First National Bank of Omaha speaks at the Topping Off Ceremony on July 21, 2016.

MHEG staff Deb Swanson, Rachel Wiesner and Cindy Koster sign the beam.

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

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2

DIRECT INVESTMENT DEVELOPMENT

CITY / STATE

3612 Cuming Limited Partnership

Omaha, NE

UNITS DATE 49

Staff Announcements

May

The Salvation Army

2015 Annual Report

Paul McDonald, Asset Manager Paul was recently hired as an Asset Manager for our Omaha office. His duties will include overseeing a Nebraska and Colorado development portfolio with financial reviews, site visits and problem resolution/ workouts as needed. Paul comes to MHEG with over six years’ experience in the real estate industry, including property management experience. Most recently he served as the Director of Client Development for DayCloud Studios. He started with MHEG at the end of April.

1) Mennonite Housing Rehabilitation Services held a ribbon cutting ceremony for French Quarter II on March 31, 2016, in Wichita, Kansas. This new development will provide 44 new multifamily units.

Caleb Van Horn, Asset Manager

2) Vintage Construction held a ribbon cutting ceremony on March 31, 2016, for Rushpointe Apartments in Wichita, Kansas. Participating in the ceremony were (L to R) Pat Michaelis (MHEG), Congressman Pompeo, Mark Cox (Vintage Construction), Ron Pashmore (KETCH), Lavonta Williams (Wichita City Council Member) and Fred Bentley (KHRC). Rushpointe will provide 16 new units for those with special needs.

Caleb was recently hired on full-time as an Asset Manager for the Oklahoma City office. His duties will include overseeing the Oklahoma development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Caleb was previously an intern for our Asset Management department. He is a recent graduate of the University of Oklahoma with a degree in Finance. He started full-time at the end of May.

3) MHEG co-hosted a dinner with Sugar Creek Realty in conjunction with the Missouri Housing Summit in Springfield, Missouri in April.

4) MHEG staff Andrea Frymire, Pat MIchaelis and Rachel Wiesner, along with MHEG Board Member Barry Sandstrom, attended the Annual Management Conference for FHLBank Topeka this past April in Kansas City, Missouri.

5) Excel Development hosted it’s grand opening celebration for A&P II in Lincoln, Nebraska on May 5, 2016. City Councilman Carl Eskridge, Tom Thull (FHLBank Topeka), John Wiechmann (MHEG), Janet Latimer (Horizon Bank), Brent Williams (Excel Development), Bob Lange (Interfaith Housing Coalition), Paula Rhian (Horizon Bank) and Robin Ambroz (NIFA) participated in the ribbon cutting.

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4

5

Paper copies are still available, email Keely McAleer to request one.

MHEG would also like to recognize those employees who will be reaching a milestone service anniversary date in 2016. MHEG is proud to have a dedicated and experienced staff.

Becky Christoffersen, Chief Investment Officer 20 years

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MHEG’s 2015 Annual Report “New Beginnings” was released in June. Click here to view the report, or you can find a link to it on our News & Events page on our website.

Lisa Bryan, Administrative Coordinator 10 years

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Volume 9, Issue 2

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

Property Spotlight: 3612 Cuming Limited Partnership The Salvation Army recently held a Topping Off Ceremony for the Renaissance Village, a new four-story development located at their 36th & Cuming Street campus in Omaha, Nebraska. The celebration included guests signing the final beam prior to it being placed atop of the deveropment.

July 2016

Closed Acquisitions 3612 Cuming Limited Partnership

General Partners

The Salvation Army Services, Inc

Developer

The Salvation Army

Seldin Company This new building will provide a variety of services and transitional housing. The Property Manager 1st floor will house their Early Head Start program for families and children and administrative offices. The Transitional Housing Residential Units (THRU) Program and 37th Street Residential Readiness Program will have tenants living in LIHTC units on the 2nd and 3rd floors. And the 4th floor will contain the Mental Health Respite program. Each program focuses on a specific population and addressing their specific housing needs. The building will also have space for counseling offices.

LIHTC DEVELOPMENTS

FUND

CITY / STATE

UNITS DATE

DEVELOPER

Columbia Heights Limited Partnership

MHEG 44 Camden, AR

33

March

PDC Companies

Hugo Affordable Housing IV, LLC

MHEG 45 Hugo, OK

10

March

Sunview Development

Grant Prairie Townhomes II LLC

MHEG 44 Ulysses, KS

10

April

Builders Development

Landmark Second, LP

MHEG 44 Topeka, KS

83

April

LP Developers, LLC

Valley View Place LP

MHEG 44 Woodland Park, CO

24

May

AmericaWest Housing Solutions

Central Villas Limited Partnership

MHEG 44 Aberdeen, SD

40

May

Lloyd Companies

Technology Heights Apartments Limited Partnership MHEG 44 Sioux Falls, SD

39

May

Lloyd Companies

Once complete, the Salvation Army will demolish the Lied Renaissance Center building, a 110-year-old former hospital that is currently home to their housing programs and services. Construction is on schedule to be completed in the summer of 2017.

Chloe Place Apartments, LP

MHEG 44 Hannibal, MO

25

May

Preferred Family Healthcare, Inc.

Buchanan’s Crossing Subdivision Kansas City LP

MHEG 42 Kansas City, KS

24

June

Tartan Residential, Inc.

This project was syndicated through FNBO Community Fund I, LP, a fund solely invested in by First National Bank of Omaha.

Model Cities BROWNstone Limited Partnership

MHEG 44 St. Paul, MN

35

June

Model Cities of St. Paul, LLC

Madill Affordable Housing II, LLC

MHEG 44 Madill, OK

32

June

LW Development, LLC

Arkoma Housing Associates, LP

MHEG 46 Arkoma, OK

24

July

MACO Development Company, LLC

Quillan Courts, LLC

MHEG 44 McCook, NE

16

July

Mesner Development Co

Total Units Closed from March - July

395

Total Units Closed in 2016

473

Tim Hart from First National Bank of Omaha speaks at the Topping Off Ceremony on July 21, 2016.

MHEG staff Deb Swanson, Rachel Wiesner and Cindy Koster sign the beam.

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

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DIRECT INVESTMENT DEVELOPMENT

CITY / STATE

3612 Cuming Limited Partnership

Omaha, NE

UNITS DATE 49

Staff Announcements

May

The Salvation Army

2015 Annual Report

Paul McDonald, Asset Manager Paul was recently hired as an Asset Manager for our Omaha office. His duties will include overseeing a Nebraska and Colorado development portfolio with financial reviews, site visits and problem resolution/ workouts as needed. Paul comes to MHEG with over six years’ experience in the real estate industry, including property management experience. Most recently he served as the Director of Client Development for DayCloud Studios. He started with MHEG at the end of April.

1) Mennonite Housing Rehabilitation Services held a ribbon cutting ceremony for French Quarter II on March 31, 2016, in Wichita, Kansas. This new development will provide 44 new multifamily units.

Caleb Van Horn, Asset Manager

2) Vintage Construction held a ribbon cutting ceremony on March 31, 2016, for Rushpointe Apartments in Wichita, Kansas. Participating in the ceremony were (L to R) Pat Michaelis (MHEG), Congressman Pompeo, Mark Cox (Vintage Construction), Ron Pashmore (KETCH), Lavonta Williams (Wichita City Council Member) and Fred Bentley (KHRC). Rushpointe will provide 16 new units for those with special needs.

Caleb was recently hired on full-time as an Asset Manager for the Oklahoma City office. His duties will include overseeing the Oklahoma development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Caleb was previously an intern for our Asset Management department. He is a recent graduate of the University of Oklahoma with a degree in Finance. He started full-time at the end of May.

3) MHEG co-hosted a dinner with Sugar Creek Realty in conjunction with the Missouri Housing Summit in Springfield, Missouri in April.

4) MHEG staff Andrea Frymire, Pat MIchaelis and Rachel Wiesner, along with MHEG Board Member Barry Sandstrom, attended the Annual Management Conference for FHLBank Topeka this past April in Kansas City, Missouri.

5) Excel Development hosted it’s grand opening celebration for A&P II in Lincoln, Nebraska on May 5, 2016. City Councilman Carl Eskridge, Tom Thull (FHLBank Topeka), John Wiechmann (MHEG), Janet Latimer (Horizon Bank), Brent Williams (Excel Development), Bob Lange (Interfaith Housing Coalition), Paula Rhian (Horizon Bank) and Robin Ambroz (NIFA) participated in the ribbon cutting.

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4

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Paper copies are still available, email Keely McAleer to request one.

MHEG would also like to recognize those employees who will be reaching a milestone service anniversary date in 2016. MHEG is proud to have a dedicated and experienced staff.

Becky Christoffersen, Chief Investment Officer 20 years

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MHEG’s 2015 Annual Report “New Beginnings” was released in June. Click here to view the report, or you can find a link to it on our News & Events page on our website.

Lisa Bryan, Administrative Coordinator 10 years

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Volume 9, Issue 2

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

July 2016

MHEG Annual Meeting & Golf Outing: June 6, 2016 Our 2016 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 6th. It was probably the nicest of weather days we’ve had for the outing. Twenty-six teams participated in the outing and well over 100 people were in attendance for the meeting and lunch.

Thank you to all who attended for making the day such a success, we look forward to this outing each year and the fun it brings.

A BIG THANK YOU to our great sponsors!!!!

Horizon Bank - Luncheon Sponsor & Awards Presentation Sponsor Nebraska Investment Finance Authority - Luncheon Sponsor & Awards Presentation Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor First American Title Insurance Company - Golf Ball Sponsor Spectrum Companies - Golf Ball Sponsor Oklahoma Bankers Association - Breakfast & Registration Sponsor BancFirst - Breakfast & Registration Sponsor Wells Fargo - Refreshments Sponsor FHLBank Topeka - Refreshments Sponsor Lloyd Companies - Cart Sponsor Seldin Company - Cart Sponsor

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Hole & Contest Hole Sponsors: Countryside Bank, Herman & Kittle Properties, Horizon Bank, Integratec, INTRUST Bank, J. Development Company, Kansas Housing Resources Corp, Kutak Rock, Lutz Technology, Mesner Development Co, and Teckmeyer Financial Services

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1st Place

2nd Place

(L-R) Rick King, Mark Cox (Vintage Construction) and Brian Chamberlin (Andover State Bank)

(L-R) Dustin Daugherty (MHEG), Scott Bartels (Horizon Bank), Frank Mason (Horizon Bank) and Jake Jacobsen (MHEG)

6 5 1) MHEG Regional Vice Presidents, Scott Fitzpatrick, Jen Oscarson, Pat Michaelis and Andrea Frymire.

2) MHEG staff Brook Smith, Lisa Bryan, Amanda Bockelman, Cindy Wieck, Dana Oswald and Amy Leonard.

3) J Development’s Team: Steve Skala, Joel Dougherty, Jim Royer and Bill Stephany 4) JR Behan (KHRC), Shannon Powers (MHEG), Caleb VanHorn (MHEG) and Margot Wickman (Kutak Rock).

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3rd Place

Last Place

(L-R) First American Title Insurance Company’s Team: Dan Ertz, Jessie Shannon, Gordon Harnisch and Chris Erickson

(L-R) Jay Dunlap (Horizon Bank), Janet Latimer (Horizon Bank), Roy Miller (Farm & Home Insurance Agency) and Becky Christoffersen (MHEG)

5) Shannon Foster (MHEG) and Sean O’Connor (DOZ) heading out to the course.

6) HUD’s Team: Brent Ericson, Andrew Burgin-Anton, Brian Wells, and Charlie House 7) Rick Jackson (Capitol Federal Savings Bank), Dave Fisher (FHLBank Topeka), Randy Ilich (Colorado Federal Savings Bank) and Pat Michaelis (MHEG).

7 Save the date for next year’s annual meeting: Monday, June 5th, 2017!

7

Volume 9, Issue 2

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

July 2016

MHEG Annual Meeting & Golf Outing: June 6, 2016 Our 2016 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 6th. It was probably the nicest of weather days we’ve had for the outing. Twenty-six teams participated in the outing and well over 100 people were in attendance for the meeting and lunch.

Thank you to all who attended for making the day such a success, we look forward to this outing each year and the fun it brings.

A BIG THANK YOU to our great sponsors!!!!

Horizon Bank - Luncheon Sponsor & Awards Presentation Sponsor Nebraska Investment Finance Authority - Luncheon Sponsor & Awards Presentation Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor First American Title Insurance Company - Golf Ball Sponsor Spectrum Companies - Golf Ball Sponsor Oklahoma Bankers Association - Breakfast & Registration Sponsor BancFirst - Breakfast & Registration Sponsor Wells Fargo - Refreshments Sponsor FHLBank Topeka - Refreshments Sponsor Lloyd Companies - Cart Sponsor Seldin Company - Cart Sponsor

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Hole & Contest Hole Sponsors: Countryside Bank, Herman & Kittle Properties, Horizon Bank, Integratec, INTRUST Bank, J. Development Company, Kansas Housing Resources Corp, Kutak Rock, Lutz Technology, Mesner Development Co, and Teckmeyer Financial Services

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1st Place

2nd Place

(L-R) Rick King, Mark Cox (Vintage Construction) and Brian Chamberlin (Andover State Bank)

(L-R) Dustin Daugherty (MHEG), Scott Bartels (Horizon Bank), Frank Mason (Horizon Bank) and Jake Jacobsen (MHEG)

6 5 1) MHEG Regional Vice Presidents, Scott Fitzpatrick, Jen Oscarson, Pat Michaelis and Andrea Frymire.

2) MHEG staff Brook Smith, Lisa Bryan, Amanda Bockelman, Cindy Wieck, Dana Oswald and Amy Leonard.

3) J Development’s Team: Steve Skala, Joel Dougherty, Jim Royer and Bill Stephany 4) JR Behan (KHRC), Shannon Powers (MHEG), Caleb VanHorn (MHEG) and Margot Wickman (Kutak Rock).

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3rd Place

Last Place

(L-R) First American Title Insurance Company’s Team: Dan Ertz, Jessie Shannon, Gordon Harnisch and Chris Erickson

(L-R) Jay Dunlap (Horizon Bank), Janet Latimer (Horizon Bank), Roy Miller (Farm & Home Insurance Agency) and Becky Christoffersen (MHEG)

5) Shannon Foster (MHEG) and Sean O’Connor (DOZ) heading out to the course.

6) HUD’s Team: Brent Ericson, Andrew Burgin-Anton, Brian Wells, and Charlie House 7) Rick Jackson (Capitol Federal Savings Bank), Dave Fisher (FHLBank Topeka), Randy Ilich (Colorado Federal Savings Bank) and Pat Michaelis (MHEG).

7 Save the date for next year’s annual meeting: Monday, June 5th, 2017!

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

Volume 9, Issue 2

July 2016

Schenck Receives MHEG Pillar of Housing Award

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 March 2016 30%PV

AFR

3.21%

2.58%

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

April 2016 30%PV

AFR

3.20%

2.57%

August

30%PV

AFR

3.31%

2.61%

June 2016

September

30%PV

AFR

3.22%

2.65% July 2016

October

IFA Board Meeting: Aug. 3rd Des Moines, IA - IFA Office

KHRC Board Meeting: Sept. 1st Topeka, KS - KDFA Board Room

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

IFA Board Meeting: Sept. 7th Des Moines, IA - IFA Office

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

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

2016 HousingIowa Conference: Sept. 7th-8th Des Moines, IA - Marriott Downtown

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

SDHDA Annual Meeting: Aug. 23rd Pierre, SD - SDHDA

Annual Iowa Appreciation Dinner: Sept. 7th Des Moines, IA - Des Moines Arts Center

NIFA Board Meeting: Oct. 21st Lincoln, NE - NIFA Board Room

Developments

NIFA Board Meeting: Aug. 19th Lincoln, NE - NIFA Board Room

TDHCA Board Meeting: Sept. 8th Austin, TX - Capitol Extension Auditorium

SDHDA Annual Housing Conference: Oct. 25th-26th Pierre, SD - Ramkota Hotel & Conference Center

Counties Represented

170

Cities Represented

208

NIFA CRANE Meeting: Oct. 26th Lincoln, NE - NIFA Board Room

Vacancy Percentage

6.32%*

Debt Coverage Ratio

1.67*

CHFA Board Meeting: Oct. 27th Denver, CO - CHFA Board Room

Information current as of 7/29/16 *Percentage compiled from 3/31/16 figures using stabilized developments only, vacancy percentage is using economic vacancy.

NIFA CRANE Meeting: Aug 24th Lincoln, NE - NIFA Board Room

OHFA Board of Trustees Meeting: Sept. 14th Oklahoma City, OK - OHFA’s Conference Room

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

Kansas Housing Conference: Aug. 24th-26th Overland Park, KS - Overland Park Convention Center

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

Annual Kansas Appreciation Dinner: Aug. 25th Leawood, KS - Gaslight Grill

CHFA Board Meeting: Sept. 22nd and 23rd Denver, CO - CHFA Board Room

CHFA Board Meeting: Aug 25th Denver, CO - CHFA Board Room

MHDC Commission Meeting: Sept. 23rd Columbia, MO - TBD

IFA Board Meeting: Nov. 7th Des Moines, IA - IFA Office

TDHCA Board Meeting: Aug. 25th Austin, TX - Capitol Extension Auditorium

NIFA CRANE Meeting: Sept. 28th Lincoln, NE - NIFA Board Room

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

30%PV

AFR

3.22%

2.62%

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.

Portfolio Update Units

November

This award comes as Schenck resigns from his Chairman position on MHEG’s Board of Directors. Schenck an active participant in the affordable housing industry, joined the Board in 2000 and served as the Chairman for the past six years.

In addition, he has served on the Central, Northeast and Northwest Operations & Investment Committees as well as MHEG’s Audit & Investment Committee. His knowledge and leadership will be greatly missed as he’s become a permanent source of support and guidance to MHEG. Schenck retired from his position at Wells Fargo in the fall of 2013 after 45 years of service. He will remain on the MHDF Board of Directors for one more year.

Affordable Housing Day

May 2016

Upcoming Events

At this year’s annual June meeting, John Wiechmann presented Dick Schenck with the MHEG Pillar of Housing Award. The Pillar of Housing Award recognizes individuals who have not only had a significant impact on MHEG, but have shown vision, leadership and commitment to improving affordable housing.

453 13,455

On April 13, 2016, the Oklahoma Coalition for Affordable Housing hosted their First Annual Affordable Housing Day at the State Capitol.

The Coalition received a Proclamation from Governor Mary Fallin declaring April 13, 2016, as Affordable Housing Day in Oklahoma.

Advocates of the affordable housing industry gathered to commemorate the day and meet with lawmakers about the impact affordable housing has on the state.

MHEG was proud to be a sponsor of this event and support the affordable housing needs of Oklahomans. Andrea Frymire (MHEG) is currently serving as the inaugural President of the Board for the Coalition.

For more information about the Oklahoma Coalition for Affordable Housing, visit www. affordablehousingcoalition.org.

John Wiechmann presents Dick Schenck with the MHEG Pillar of Housing Award on June 6th.

Morgan Federal Bank Receives Community Leader Award Morgan Federal Bank in Fort Morgan, Colorado was this year’s recipient of the The Community Leader Award (CLA) presented by the FHLBank Topeka. The CLA award is rotated annually among the four states in its district and awarded to a member who demonstrates extraordinary vision and dedication to the communities it serves. The award also includes a $5,000 donation to an organization of the winning institution’s choice. Morgan Federal Bank chose to award the funds to Eben Ezer Lutheran Care Center to help with their upcoming capital campaign.

Morgan Federal Bank has invested $1.5 million in MHEG funds. MHEG is proud to partner with this great organization.

To learn more about Morgan Federal Bank and how they’ve helped their community, check out this video: https://youtu.be/sh7JZHIf3yM

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.

Annual Oklahoma Appreciation Luncheon: Nov. 16th

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

Andrea Frymire presents OHFA’s Board of Trustee’s Chairman Dick Lillard with a copy of Governor’s Proclamation that April 13th is Affordable Housing Day.

Morgan Federal Bank employees and Board Members with their award after the ceremony. (L to R) Jeff Morford, Jim Berryhill, Mike Berryhill and Tim Weimer.

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