MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 10, Issue 1
May 2017
MHDF Rural Housing Initiative
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Property Spotlight
4
Recent Events
4
Closed Acquisitions
5
Upcoming Events
6
Monthly LIHTC Rates 515 N. 162nd Ave., Ste. 202, Omaha, NE 68118
December 2016 30%PV
AFR
3.18%
2.26%
January 2017 30%PV
AFR
3.23%
2.75%
February 2017 30%PV
AFR
3.24%
2.81%
March 2017
Upcoming Events May
IFA Board Meeting: May 3rd Des Moines, IA - IFA Office
June
KHRC Board Meeting: Jun. 1st Topeka, KS - KDFA Board Room
IFA Board Meeting: Jul. 12th Des Moines, IA - IFA Office
MHEG Annual Meeting & Golf Outing: Jun. 5th Ashland, NE - Quarry Oaks Golf Course
OHFA Board Meeting: Jul. 12th Oklahoma City, OK - OHFA Office
OHFA Board Meeting: May 17th Oklahoma City, OK - OHFA Office
IFA Board Meeting: Jun. 7th Des Moines, IA - IFA Office
KHRC Board Meeting: Jul. 13th Topeka, KS - KDFA Board Room
ADFA Board Meeting: May 18th Little Rock, AR - ADFA Office
MHDC Annual Commission Meeting: Jun. 8th Columbia, MO - TBD
MHDC Annual Commission Meeting: Jul. 18th Columbia, MO - TBD
NIFA CRANE Meeting: May 24th Lincoln, NE - NIFA Board Room
NIFA Board Meeting: Jun. 9th Lincoln, NE - NIFA Board Room
NIFA CRANE Meeting: Jul. 26th Lincoln, NE - NIFA Board Room
CHFA Board Meeting: May 25th Denver, CO - CHFA Board Room TDHCA Board Meeting: May 25th Austin, TX - Capitol Extension Auditorium
ADFA Board Meeting: Jun. 15th Little Rock, AR - ADFA Office CHFA Board Meeting: Jun. 29th Denver, CO - CHFA Board Room
AFR
3.24%
2.78% April 2017
July
KHRC Board Meeting: May 4th Topeka, KS - KDFA Board Room
30%PV
30%PV
AFR
3.24%
2.82%
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 Developments Units
CHFA Board Meeting: Jul. 27th Denver, CO - CHFA Board Room TDHCA Board Meeting: Jul. 27th Austin, TX - Capitol Extension Auditorium
484 14,813
Counties Represented
183
Cities Represented
222
Vacancy Percentage
5.99%*
Debt Coverage Ratio
1.67*
Midwest Housing Development Fund (MHDF) is launching the Midwest Housing Development Rural Workforce Housing Nebraska Initiative. MHDF is looking to collaborate with developers, builders or community leaders that are interested in bringing affordable workforce housing to rural Nebraska. Through the Initiative, MHDF will provide technical assistance and expanded loan products to developers and owners that are meeting locally identified housing needs. The Initiative is focused on the development of affordable, rural workforce housing (for sale and for rent) which may include open market housing that is not incomerestricted but is available at an affordable price for low and moderate income workers.
Contact Lara Huskey, Senior Vice President for more information. lhuskey@mhdfinc.com
At no cost MHDF will provide the following: - Project development team formation & financial packaging - Discussion of required steps to develop the project - Review of market studies, appraisals, environmental studies to determine feasibility of the project - Review of financing applications (i.e. government funding) - Assistance with obtaining construction & permanent financing with conventional lenders - Assistance utilizing MHDF loans in project financing - Consultation through all phases of the project
If you’re unable to obtain a traditional loan, MHDF may also be able to assist you with securing your financial needs through their loan program. MHDF Loans are made based on market needs, how the property will satisfy these needs, community support and the borrower’s ability to support the property. Their loans are not grants, they must be repaid.
NIFA Conference Awards
Save the Date
This past March the Nebraska Investment Finance Authority (NIFA) hosted their annual Housing Innovation Marketplace Conference. During the conference, NIFA recognized individuals who dedication to affordable housing has made a difference in Nebraska.
Save the date Monday, June 5th, 2017, for MHEG’s Annual Meeting & Golf Outing. We will again host our meeting and tournament at Quarry Oaks Golf Course in Ashland, Nebraska.
MHEG was happy to learn that two of our partners received awards this year recognizing them for their outstanding service. Innovative Project of the Year: Lofts on 24th Street developed by Arch Icon Development Corporation, located in Omaha, Nebraska.
This event is an enjoyable occasion for our Board of Directors, committee members, staff, investors, developers and many other associates to come together for an afternoon of friendly competition. We look forward to seeing you there!
Property Manager of the Year: Jamie Wilson, of Cypress Property Management Group, has partnered with MHEG on over a dozen developments located throughout Nebraska. Congratulations to these leading organizations on their achievements.
Information current as of 4/01/17 *Percentage compiled from 2/15/17 figures using stabilized developments only, vacancy percentage is using economic vacancy.
TDHCA Board Meeting: Jun. 29th Austin, TX - Capitol Extension Auditorium
If you would like to receive our newsletter by email, go to our homepage to sign-up. For past issues of MHEG in a Minute check our website under News & Events. For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6
Left: Partners of 3101 S. 24th Street, LLC accepting the award are Cindy Koster (MHEG), Darin Smith (Arch Icon), Mindy Crook (Arch Icon), Tim Kenny (NIFA) and Teresa Kile (NIFA). Right: Jamie Wilson of Cypress Property Management Group with Tim Kenny (NIFA).
1
Volume 10, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann Greetings Friends and Happy Spring! As I write this, I am cautiously optimistic that we’ve seen the last of snow across our entire footprint. This time of year is always exciting – we see the shoots of new developments begin to sprout and the roots take hold. A few states have awarded tax credits and several more will make their announcements shortly. Soon thereafter, our partners will “spring” into action, creating more quality affordable housing for deserving families across our footprint. Much like growing a garden, creating, constructing and operating affordable housing is a process that requires patience, nurturing and persistence. Every day, our investors, developers, contractors, managers, lenders, housing finance agencies and other government officials work together to create as many safe, decent and affordable homes as possible – each demonstrates the required patience, nurturing and persistence. Last year, those traits allowed us to partner with you to grow over 1,600 additional homes. That’s a big garden that will change a lot of lives! I am optimistic we can do even more in 2017. As always, please stay in touch with our elected officials and their staff. As my colleagues mention later in this letter, advocacy for the Housing Credit, HOME and CDBG Funds and HUD funding is as important as ever. While we don’t know when (or if) tax reform will happen and we don’t know what the FY ’18 budget will hold, we do know that communication and relationship building pay off. These activities should take place both in Washington D.C. and back at home. What is the most effective activity you can participate in? Host an open house, ribbon cutting or property tour for a Member of Congress and/or their staff. When Senators and Representatives meet the residents, see the quality construction and hear firsthand
Scott Fitzpatrick how these programs change lives, it personalizes the value and impact of what you do and creates supporters of the Housing Credit, HOME, CDBG and HUD programs. Thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials for letting MHEG change lives for a better tomorrow! We are grateful for the partnerships. See you on June 5th at our Annual Meeting!
I’d like to highlight two recent events that took place in Des Moines. This past April, MHEG staff member Amy Leonard participated in a property beautification day hosted by Community Housing Initiatives (CHI) for Grant Terrace in Oskaloosa, Iowa. Several members of CHI’s staff, residents, students from Central College and Amy volunteered to make upgrades to the community areas, grounds and landscaping at this affordable senior housing development (see pictures below). The materials used in the event were paid for through a grant from
Kindest regards, John Wiechmann
I would also like to report on a property tour that we recently conducted here in Des Moines with local delegation representatives. On April 27th, Alec Kennedy (Senator Grassley’s office), Matthew Sexton (Senator Ernst’s office) and Eric Baker (Congressman Young’s office) toured three properties highlighting the success of the LIHTC program in Iowa. We greatly appreciate their time to view these developments and learn firsthand the impact made by the housing credit program.
Northwest Region Update Cindy Koster
MHEG closed equity on two projects in early 2017. Victory Park is a 70 unit Veterans project located on the Veteran Administration campus in Lincoln, NE. The entire project will have project based vouchers and supportive services for those who faithfully and honorably served our Country. We are proud to be a partner on this project with Burlington Capital. Construction completion is expected January 2018. Meeting with U.S. Congresswoman Lynn Jenkins, 2nd District of Kansas
Pat Michaelis
The Kansas Housing Association recently sponsored a trip to Washington D.C. and invited representatives from the Missouri and Oklahoma Housing Associations to join us. Attending were: Pat Beatty, Fred Bentley, Erica Dobreff, Beth Easter, Sophie George, Trey George, Matt Gillam, Chris Hite, Steve Hunt, Tony Krsnich, David Rhodes, Doug Smith, Jeff Smith, and Kathy Sorkin. Representing MHEG were John Wiechmann, Andrea Frymire, and yours truly. This was our third trip so we know our way around and the Delegations know us and our issues. My overall impression is that they are aware of the good we are doing for residents and economy. If you ask each of us about tax reform and when it will happen, there will be many different answers. I am confident that our delegations will be proponents of the LIHTC program when the time comes. All were supporters of the HOME program and none were in favor of the President’s budget proposal; good news for HUD funding. All in all, lots of uncertainty about when and what tax reform will be. Our timing was good in the legislative process.
We are pleased to welcome another new partner to the MHEG portfolio. Cohen Esrey Affordable Partners has been developing nationally the past two decades. With an allocation of LIHTC, the substantial rehabilitation for the development known as The Brewery Lofts (Hastings, NE), has begun construction. The two buildings are listed on the National Park Register of Historical Places and are eligible for both Federal and State Historical Credits. The brewery building and bottling building will be converted to 35 family units consisting of one-, two-and three-bedroom units. We look forward to our continued partnership and a successful project. Construction completion is expected January 2018. In February, four Nebraska CRANE (Collaborative Resources Allocation for Nebraska) projects were allocated credits. MHEG will be providing equity on three of these projects. CRANE is the “non-competitive” set-aside in Nebraska targeting developments with specific economic growth, community development and specific types of affordable housing. NIFA’s QAP requires a set-aside of up to 33% of the annual LIHTC for the CRANE allocation. We will discuss the specific projects later this year as we prepare for equity closing. This process from application to allocation has been known to take 1–3 years. Persistence pays off! Congratulations to our partners receiving an allocation! Thank you to all the funding partners with sources helping to escalate the projects to an allocation. The NIFA conference in March brought our partners from all over the state and region to Omaha. We enjoyed visiting and catching up during the annual MHEG “thank-you” dinner. It is always a pleasure to see all of you in person! Thank you to all of our investors, partners, and others that help make the projects in the northwest region successful!
Please keep in touch with your Congressional Delegation, specifically your Senator and Representative. Lots going on in Washington D.C. these days with the repair/repeal of the Affordable Care Act, tax reform, infrastructure, immigration and draining the swamp. Most, if not all impact each of us either in our business or personally.
South Region Update
When your livelihood is dependent on the stroke of the pen, it is critical to stay connected.
Spring is here and all of our applications are in with the respective HFAs. It will be a busy summer with awards coming in from Oklahoma, Texas and Arkansas between May and August. We look forward to award season, which begins with Oklahoma in May.
Andrea Frymire
So far, the Oklahoma Affordable Housing Act has managed to survive the 2017 Oklahoma legislature. With another significant budget deficit again this year, we are concerned that our industry might lose this valuable resource. The Oklahoma Coalition for Affordable Housing hosted their second annual Affordable Housing Day at the State Capitol in March. Showing your support at the state and national levels is one of the best things you can do for the industry.
2
NeighborWorks. This was a great day of team building and volunteering to help maintain quality affordable housing in our communities. Thank you to all that helped.
We at MHEG cannot emphasize enough the importance to reach out to your local representatives. Especially now, as our industry experiences uncertainty awaiting tax reform, reach out and show them the importance of affordable housing in our communities.
Central Region Update
Meeting with U.S. Senator Jerry Moran (Kansas)
May 2017
Meeting with U.S. Congressman Roger Marshall, 1st District of Kansas
I had the honor of representing Oklahoma in Washington D.C. in April and met with all seven offices for Oklahoma’s Senators and Representatives.
Our agenda is primarily support of The Affordable Housing Credit Improvement Act of 2017. The Oklahoma delegation was receptive to this legislation as we continue to show the need for affordable housing as demonstrated in the Oklahoma Statewide Housing Needs Assessment. For all of our partners in Oklahoma, please reach out to your Senators and Representatives and request their support. The National Association of REALTORS® recently signed on to the ACTION Campaign and now lends their support to these issues. We wish all of our partners the best of luck on their pending applications and look forward to working with everyone on 2017 awards. Please do not hesitate to contact me if I may be of assistance. It is a pleasure working with each and every one of you! 3
Volume 10, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann Greetings Friends and Happy Spring! As I write this, I am cautiously optimistic that we’ve seen the last of snow across our entire footprint. This time of year is always exciting – we see the shoots of new developments begin to sprout and the roots take hold. A few states have awarded tax credits and several more will make their announcements shortly. Soon thereafter, our partners will “spring” into action, creating more quality affordable housing for deserving families across our footprint. Much like growing a garden, creating, constructing and operating affordable housing is a process that requires patience, nurturing and persistence. Every day, our investors, developers, contractors, managers, lenders, housing finance agencies and other government officials work together to create as many safe, decent and affordable homes as possible – each demonstrates the required patience, nurturing and persistence. Last year, those traits allowed us to partner with you to grow over 1,600 additional homes. That’s a big garden that will change a lot of lives! I am optimistic we can do even more in 2017. As always, please stay in touch with our elected officials and their staff. As my colleagues mention later in this letter, advocacy for the Housing Credit, HOME and CDBG Funds and HUD funding is as important as ever. While we don’t know when (or if) tax reform will happen and we don’t know what the FY ’18 budget will hold, we do know that communication and relationship building pay off. These activities should take place both in Washington D.C. and back at home. What is the most effective activity you can participate in? Host an open house, ribbon cutting or property tour for a Member of Congress and/or their staff. When Senators and Representatives meet the residents, see the quality construction and hear firsthand
Scott Fitzpatrick how these programs change lives, it personalizes the value and impact of what you do and creates supporters of the Housing Credit, HOME, CDBG and HUD programs. Thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials for letting MHEG change lives for a better tomorrow! We are grateful for the partnerships. See you on June 5th at our Annual Meeting!
I’d like to highlight two recent events that took place in Des Moines. This past April, MHEG staff member Amy Leonard participated in a property beautification day hosted by Community Housing Initiatives (CHI) for Grant Terrace in Oskaloosa, Iowa. Several members of CHI’s staff, residents, students from Central College and Amy volunteered to make upgrades to the community areas, grounds and landscaping at this affordable senior housing development (see pictures below). The materials used in the event were paid for through a grant from
Kindest regards, John Wiechmann
I would also like to report on a property tour that we recently conducted here in Des Moines with local delegation representatives. On April 27th, Alec Kennedy (Senator Grassley’s office), Matthew Sexton (Senator Ernst’s office) and Eric Baker (Congressman Young’s office) toured three properties highlighting the success of the LIHTC program in Iowa. We greatly appreciate their time to view these developments and learn firsthand the impact made by the housing credit program.
Northwest Region Update Cindy Koster
MHEG closed equity on two projects in early 2017. Victory Park is a 70 unit Veterans project located on the Veteran Administration campus in Lincoln, NE. The entire project will have project based vouchers and supportive services for those who faithfully and honorably served our Country. We are proud to be a partner on this project with Burlington Capital. Construction completion is expected January 2018. Meeting with U.S. Congresswoman Lynn Jenkins, 2nd District of Kansas
Pat Michaelis
The Kansas Housing Association recently sponsored a trip to Washington D.C. and invited representatives from the Missouri and Oklahoma Housing Associations to join us. Attending were: Pat Beatty, Fred Bentley, Erica Dobreff, Beth Easter, Sophie George, Trey George, Matt Gillam, Chris Hite, Steve Hunt, Tony Krsnich, David Rhodes, Doug Smith, Jeff Smith, and Kathy Sorkin. Representing MHEG were John Wiechmann, Andrea Frymire, and yours truly. This was our third trip so we know our way around and the Delegations know us and our issues. My overall impression is that they are aware of the good we are doing for residents and economy. If you ask each of us about tax reform and when it will happen, there will be many different answers. I am confident that our delegations will be proponents of the LIHTC program when the time comes. All were supporters of the HOME program and none were in favor of the President’s budget proposal; good news for HUD funding. All in all, lots of uncertainty about when and what tax reform will be. Our timing was good in the legislative process.
We are pleased to welcome another new partner to the MHEG portfolio. Cohen Esrey Affordable Partners has been developing nationally the past two decades. With an allocation of LIHTC, the substantial rehabilitation for the development known as The Brewery Lofts (Hastings, NE), has begun construction. The two buildings are listed on the National Park Register of Historical Places and are eligible for both Federal and State Historical Credits. The brewery building and bottling building will be converted to 35 family units consisting of one-, two-and three-bedroom units. We look forward to our continued partnership and a successful project. Construction completion is expected January 2018. In February, four Nebraska CRANE (Collaborative Resources Allocation for Nebraska) projects were allocated credits. MHEG will be providing equity on three of these projects. CRANE is the “non-competitive” set-aside in Nebraska targeting developments with specific economic growth, community development and specific types of affordable housing. NIFA’s QAP requires a set-aside of up to 33% of the annual LIHTC for the CRANE allocation. We will discuss the specific projects later this year as we prepare for equity closing. This process from application to allocation has been known to take 1–3 years. Persistence pays off! Congratulations to our partners receiving an allocation! Thank you to all the funding partners with sources helping to escalate the projects to an allocation. The NIFA conference in March brought our partners from all over the state and region to Omaha. We enjoyed visiting and catching up during the annual MHEG “thank-you” dinner. It is always a pleasure to see all of you in person! Thank you to all of our investors, partners, and others that help make the projects in the northwest region successful!
Please keep in touch with your Congressional Delegation, specifically your Senator and Representative. Lots going on in Washington D.C. these days with the repair/repeal of the Affordable Care Act, tax reform, infrastructure, immigration and draining the swamp. Most, if not all impact each of us either in our business or personally.
South Region Update
When your livelihood is dependent on the stroke of the pen, it is critical to stay connected.
Spring is here and all of our applications are in with the respective HFAs. It will be a busy summer with awards coming in from Oklahoma, Texas and Arkansas between May and August. We look forward to award season, which begins with Oklahoma in May.
Andrea Frymire
So far, the Oklahoma Affordable Housing Act has managed to survive the 2017 Oklahoma legislature. With another significant budget deficit again this year, we are concerned that our industry might lose this valuable resource. The Oklahoma Coalition for Affordable Housing hosted their second annual Affordable Housing Day at the State Capitol in March. Showing your support at the state and national levels is one of the best things you can do for the industry.
2
NeighborWorks. This was a great day of team building and volunteering to help maintain quality affordable housing in our communities. Thank you to all that helped.
We at MHEG cannot emphasize enough the importance to reach out to your local representatives. Especially now, as our industry experiences uncertainty awaiting tax reform, reach out and show them the importance of affordable housing in our communities.
Central Region Update
Meeting with U.S. Senator Jerry Moran (Kansas)
May 2017
Meeting with U.S. Congressman Roger Marshall, 1st District of Kansas
I had the honor of representing Oklahoma in Washington D.C. in April and met with all seven offices for Oklahoma’s Senators and Representatives.
Our agenda is primarily support of The Affordable Housing Credit Improvement Act of 2017. The Oklahoma delegation was receptive to this legislation as we continue to show the need for affordable housing as demonstrated in the Oklahoma Statewide Housing Needs Assessment. For all of our partners in Oklahoma, please reach out to your Senators and Representatives and request their support. The National Association of REALTORS® recently signed on to the ACTION Campaign and now lends their support to these issues. We wish all of our partners the best of luck on their pending applications and look forward to working with everyone on 2017 awards. Please do not hesitate to contact me if I may be of assistance. It is a pleasure working with each and every one of you! 3
Volume 10, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: KCV Renaissance, LLLP - Denver, Colorado
Closed Acquisitions
Named “one of Denver’s most affordable senior living developments,” by the Denver Post, Kentucky Circle Village (KCV) is a prime example of the successful impact the LIHTC program can have. KCV is an existing 172-unit mixed income apartment community for people 62+. It has 31 residential buildings that include 11 studios, 99 one-bedroom units and 62 two-bedroom units. The property sits on an 8.7-acre site with a park-like setting. Built in 1959, with additional units built in 2000, KCV is owned and managed by Senior Homes of Colorado. They are an outreach mission jointly owned and operated by three churches in the Denver area. Located in the southeast area of Denver, it has a great location within walking distance to restaurants, grocery stores, entertainment and parks/trails. KCV is also easily accessible located within a few blocks of a bus stop. The rehabilitation consisted of new roofing, repairs to siding, replacement of windows, exterior painting, entry doors, a new water heater, improvements to the grounds and sidewalks. KCV is funded by MHEG Fund 44, LP. In addition, Energy Outreach Colorado recently installed over $525,000 in energy efficiency upgrades, including new furnaces, new insulation and new efficient lighting.
LIHTC DEVELOPMENTS
FUND
7400 Military Avenue, LLC
MHEG 46 Omaha, NE
23
December J Development Co
MorningStar Senior LP
MHEG 46 Kansas City, MO
40
December Missouri Housing Partners, LLC
Trail Ridge Partners II, LLC
MHEG 46 Great Bend, KS
48
December Overland Property Group
Coweta Senior Villas, LP
MHEG 46 Coweta, OK
43
December Pointe Royale Development
Lane Senior Residences, LLC
MHEG 46 Neosho, MO
48
December IRC Manager, LLC
Peaceful Village, LP
MHEG 46 Wichita, KS
72
December Central Plains Development
Schoolhouse Apartments, LP
MHEG 46 Baldwin City, KS
30
December Flint Hills Development
Victory Park Veterans Residence, LLC
MHEG 46 Lincoln, NE
70
January
American First Real Estate Group, LLC
The Brewery Lofts, LLC
MHEG 46 Hastings, NE
35
January
Cohen-Esrey Affordable Partners, LLC
Larkspur Gardens, an Arkansas LP
MHEG 46 Walnut Ridge, AR
30
February
White River Regional Housing Development Corp
Wellness Place LLC
MHEG 47 Wichita, KS
22
March
Wellness Affordable Housing, Inc.
Brittany Court Investor, LP
MHEG 46 Gardner, KS
45
April
Yarco Devco
Trinity Point Apartments Limited Parnership
MHEG 46 Sioux Falls, SD
48
April
Lloyd Companies
KCV Renaissance, LLLP General Partners
Senior Homes of Colorado Foundation, Inc.
Developer
Senior Homes of Colorado Foundation, Inc.
Property Manager
Senior Homes of Colorado Foundation, Inc.
1) Partners of Western Housing Partners, LP (MHEG Fund 44) came together on December 6th, 2016, to celebrate with a ribbon cutting ceremony in Ft. Scott, Kansas. This historic rehab now provides 35 affordable rental units for persons 55+.
3
UNITS DATE
Total Units Closed from December - April
554
Total Units Closed in 2017
250
DEVELOPER
MHEG would also like to recognize several employees who will be reaching their 5th, 10th and 15th service anniversary date in 2017. MHEG recognizes that dedicated employees are its most important asset. We are proud to have so many committed and experienced staff.
5 YEARS
2
2) Builders Development Corporation held a ribbing cutting ceremony on April 12, 2017, for Grant Prairie Townhomes II (MHEG Fund 44) in Ulysses, Kansas. Now complete, this property will provide 10 new units for people 55+.
10 YEARS
Scott Fitzpatrick, Vice President, Business Development Officer
Sammy Ehtisham, Assistant Vice President of Acquisitions
Cecelia Grossman, Accounting Assistant
Jordan Abboud, Deputy Director of Special Assets
John Wiechmann, Chief Executive Officer/President
Deb Swanson, Closing Coordinator
3) Guests and MHEG staff attend our annual Nebraska Appreciation Dinner at the Nebraska Brewing Company on March 21st, 2017, in LaVista, Nebraska. 4 & 5) Caleb VanHorn, Andrea Frymire and Sammy Ehtisham from MHEG’s Oklahoma office attend Affordable Housing Day at Oklahoma’s State Capital in March 2017.
4
5
15 YEARS Jason Main, Chief Financial Officer
Shannon Foster, Accounting Manager
4
CITY / STATE
Staff Announcements
Groundbreakings, Ribbon Cuttings, Dedications and Events....
1
May 2017
Ryan Harris, Deputy Director of Asset Stabilization Pat Michaelis, Vice President, Business Development Officer
5
Volume 10, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: KCV Renaissance, LLLP - Denver, Colorado
Closed Acquisitions
Named “one of Denver’s most affordable senior living developments,” by the Denver Post, Kentucky Circle Village (KCV) is a prime example of the successful impact the LIHTC program can have. KCV is an existing 172-unit mixed income apartment community for people 62+. It has 31 residential buildings that include 11 studios, 99 one-bedroom units and 62 two-bedroom units. The property sits on an 8.7-acre site with a park-like setting. Built in 1959, with additional units built in 2000, KCV is owned and managed by Senior Homes of Colorado. They are an outreach mission jointly owned and operated by three churches in the Denver area. Located in the southeast area of Denver, it has a great location within walking distance to restaurants, grocery stores, entertainment and parks/trails. KCV is also easily accessible located within a few blocks of a bus stop. The rehabilitation consisted of new roofing, repairs to siding, replacement of windows, exterior painting, entry doors, a new water heater, improvements to the grounds and sidewalks. KCV is funded by MHEG Fund 44, LP. In addition, Energy Outreach Colorado recently installed over $525,000 in energy efficiency upgrades, including new furnaces, new insulation and new efficient lighting.
LIHTC DEVELOPMENTS
FUND
7400 Military Avenue, LLC
MHEG 46 Omaha, NE
23
December J Development Co
MorningStar Senior LP
MHEG 46 Kansas City, MO
40
December Missouri Housing Partners, LLC
Trail Ridge Partners II, LLC
MHEG 46 Great Bend, KS
48
December Overland Property Group
Coweta Senior Villas, LP
MHEG 46 Coweta, OK
43
December Pointe Royale Development
Lane Senior Residences, LLC
MHEG 46 Neosho, MO
48
December IRC Manager, LLC
Peaceful Village, LP
MHEG 46 Wichita, KS
72
December Central Plains Development
Schoolhouse Apartments, LP
MHEG 46 Baldwin City, KS
30
December Flint Hills Development
Victory Park Veterans Residence, LLC
MHEG 46 Lincoln, NE
70
January
American First Real Estate Group, LLC
The Brewery Lofts, LLC
MHEG 46 Hastings, NE
35
January
Cohen-Esrey Affordable Partners, LLC
Larkspur Gardens, an Arkansas LP
MHEG 46 Walnut Ridge, AR
30
February
White River Regional Housing Development Corp
Wellness Place LLC
MHEG 47 Wichita, KS
22
March
Wellness Affordable Housing, Inc.
Brittany Court Investor, LP
MHEG 46 Gardner, KS
45
April
Yarco Devco
Trinity Point Apartments Limited Parnership
MHEG 46 Sioux Falls, SD
48
April
Lloyd Companies
KCV Renaissance, LLLP General Partners
Senior Homes of Colorado Foundation, Inc.
Developer
Senior Homes of Colorado Foundation, Inc.
Property Manager
Senior Homes of Colorado Foundation, Inc.
1) Partners of Western Housing Partners, LP (MHEG Fund 44) came together on December 6th, 2016, to celebrate with a ribbon cutting ceremony in Ft. Scott, Kansas. This historic rehab now provides 35 affordable rental units for persons 55+.
3
UNITS DATE
Total Units Closed from December - April
554
Total Units Closed in 2017
250
DEVELOPER
MHEG would also like to recognize several employees who will be reaching their 5th, 10th and 15th service anniversary date in 2017. MHEG recognizes that dedicated employees are its most important asset. We are proud to have so many committed and experienced staff.
5 YEARS
2
2) Builders Development Corporation held a ribbing cutting ceremony on April 12, 2017, for Grant Prairie Townhomes II (MHEG Fund 44) in Ulysses, Kansas. Now complete, this property will provide 10 new units for people 55+.
10 YEARS
Scott Fitzpatrick, Vice President, Business Development Officer
Sammy Ehtisham, Assistant Vice President of Acquisitions
Cecelia Grossman, Accounting Assistant
Jordan Abboud, Deputy Director of Special Assets
John Wiechmann, Chief Executive Officer/President
Deb Swanson, Closing Coordinator
3) Guests and MHEG staff attend our annual Nebraska Appreciation Dinner at the Nebraska Brewing Company on March 21st, 2017, in LaVista, Nebraska. 4 & 5) Caleb VanHorn, Andrea Frymire and Sammy Ehtisham from MHEG’s Oklahoma office attend Affordable Housing Day at Oklahoma’s State Capital in March 2017.
4
5
15 YEARS Jason Main, Chief Financial Officer
Shannon Foster, Accounting Manager
4
CITY / STATE
Staff Announcements
Groundbreakings, Ribbon Cuttings, Dedications and Events....
1
May 2017
Ryan Harris, Deputy Director of Asset Stabilization Pat Michaelis, Vice President, Business Development Officer
5
MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 10, Issue 1
May 2017
MHDF Rural Housing Initiative
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Property Spotlight
4
Recent Events
4
Closed Acquisitions
5
Upcoming Events
6
Monthly LIHTC Rates 515 N. 162nd Ave., Ste. 202, Omaha, NE 68118
December 2016 30%PV
AFR
3.18%
2.26%
January 2017 30%PV
AFR
3.23%
2.75%
February 2017 30%PV
AFR
3.24%
2.81%
March 2017
Upcoming Events May
IFA Board Meeting: May 3rd Des Moines, IA - IFA Office
June
KHRC Board Meeting: Jun. 1st Topeka, KS - KDFA Board Room
IFA Board Meeting: Jul. 12th Des Moines, IA - IFA Office
MHEG Annual Meeting & Golf Outing: Jun. 5th Ashland, NE - Quarry Oaks Golf Course
OHFA Board Meeting: Jul. 12th Oklahoma City, OK - OHFA Office
OHFA Board Meeting: May 17th Oklahoma City, OK - OHFA Office
IFA Board Meeting: Jun. 7th Des Moines, IA - IFA Office
KHRC Board Meeting: Jul. 13th Topeka, KS - KDFA Board Room
ADFA Board Meeting: May 18th Little Rock, AR - ADFA Office
MHDC Annual Commission Meeting: Jun. 8th Columbia, MO - TBD
MHDC Annual Commission Meeting: Jul. 18th Columbia, MO - TBD
NIFA CRANE Meeting: May 24th Lincoln, NE - NIFA Board Room
NIFA Board Meeting: Jun. 9th Lincoln, NE - NIFA Board Room
NIFA CRANE Meeting: Jul. 26th Lincoln, NE - NIFA Board Room
CHFA Board Meeting: May 25th Denver, CO - CHFA Board Room TDHCA Board Meeting: May 25th Austin, TX - Capitol Extension Auditorium
ADFA Board Meeting: Jun. 15th Little Rock, AR - ADFA Office CHFA Board Meeting: Jun. 29th Denver, CO - CHFA Board Room
AFR
3.24%
2.78% April 2017
July
KHRC Board Meeting: May 4th Topeka, KS - KDFA Board Room
30%PV
30%PV
AFR
3.24%
2.82%
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 Developments Units
CHFA Board Meeting: Jul. 27th Denver, CO - CHFA Board Room TDHCA Board Meeting: Jul. 27th Austin, TX - Capitol Extension Auditorium
484 14,813
Counties Represented
183
Cities Represented
222
Vacancy Percentage
5.99%*
Debt Coverage Ratio
1.67*
Midwest Housing Development Fund (MHDF) is launching the Midwest Housing Development Rural Workforce Housing Nebraska Initiative. MHDF is looking to collaborate with developers, builders or community leaders that are interested in bringing affordable workforce housing to rural Nebraska. Through the Initiative, MHDF will provide technical assistance and expanded loan products to developers and owners that are meeting locally identified housing needs. The Initiative is focused on the development of affordable, rural workforce housing (for sale and for rent) which may include open market housing that is not incomerestricted but is available at an affordable price for low and moderate income workers.
Contact Lara Huskey, Senior Vice President for more information. lhuskey@mhdfinc.com
At no cost MHDF will provide the following: - Project development team formation & financial packaging - Discussion of required steps to develop the project - Review of market studies, appraisals, environmental studies to determine feasibility of the project - Review of financing applications (i.e. government funding) - Assistance with obtaining construction & permanent financing with conventional lenders - Assistance utilizing MHDF loans in project financing - Consultation through all phases of the project
If you’re unable to obtain a traditional loan, MHDF may also be able to assist you with securing your financial needs through their loan program. MHDF Loans are made based on market needs, how the property will satisfy these needs, community support and the borrower’s ability to support the property. Their loans are not grants, they must be repaid.
NIFA Conference Awards
Save the Date
This past March the Nebraska Investment Finance Authority (NIFA) hosted their annual Housing Innovation Marketplace Conference. During the conference, NIFA recognized individuals who dedication to affordable housing has made a difference in Nebraska.
Save the date Monday, June 5th, 2017, for MHEG’s Annual Meeting & Golf Outing. We will again host our meeting and tournament at Quarry Oaks Golf Course in Ashland, Nebraska.
MHEG was happy to learn that two of our partners received awards this year recognizing them for their outstanding service. Innovative Project of the Year: Lofts on 24th Street developed by Arch Icon Development Corporation, located in Omaha, Nebraska.
This event is an enjoyable occasion for our Board of Directors, committee members, staff, investors, developers and many other associates to come together for an afternoon of friendly competition. We look forward to seeing you there!
Property Manager of the Year: Jamie Wilson, of Cypress Property Management Group, has partnered with MHEG on over a dozen developments located throughout Nebraska. Congratulations to these leading organizations on their achievements.
Information current as of 4/01/17 *Percentage compiled from 2/15/17 figures using stabilized developments only, vacancy percentage is using economic vacancy.
TDHCA Board Meeting: Jun. 29th Austin, TX - Capitol Extension Auditorium
If you would like to receive our newsletter by email, go to our homepage to sign-up. For past issues of MHEG in a Minute check our website under News & Events. For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6
Left: Partners of 3101 S. 24th Street, LLC accepting the award are Cindy Koster (MHEG), Darin Smith (Arch Icon), Mindy Crook (Arch Icon), Tim Kenny (NIFA) and Teresa Kile (NIFA). Right: Jamie Wilson of Cypress Property Management Group with Tim Kenny (NIFA).
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