2018 apr mheg newsletter

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

Volume 11, Issue 1

April

MHEG Celebrates 25 Years

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 2017 30%PV 3.23% AFR 2.64% January 2018 30%PV 3.24%

MHEG is celebrating 25 years in 2018, and we have a lot to celebrate. To date, we have created just under 16,000 units of affordable housing, closed over 500 developments and raised over $1.75B of equity capital.

MHEG hosted a 25th Anniversary Celebration on Tuesday, March 13th, 2018, in Omaha, Nebraska. It was a great dinner and opportunity to celebrate with our staff and partners that have helped MHEG achieve its success over the past 25 years.

We look forward to celebrating this milestone with you throughout the year at our many annual state appreciation dinners.

And we look forward to partnering with you for many more years to come.

2018 25 YEARS1993

AFR 2.59% February 2018 30%PV 3.25% AFR 2.66% March 2018

Upcoming Events May

IFA Board Meeting: May 2nd Des Moines, IA - IFA Office KHRC Board Meeting: May 3rd Topeka, KS - KDFA Board Room

June continued

MOWHA Annual Conference: June 27th-28th Kansas City, MO - InterContinental KC at the Plaza CHFA Board Meeting: June 28th Denver, CO - CHFA Board Room

OK Housing Conference: Aug. 22nd-23rd Oklahoma City, OK - Embassy Suites

MHDF Annual Meeting: May 23rd Omaha, NE - MHEG Office

July

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

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

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

TDHCA Board Meeting: Sept. 6th Austin, TX - Capitol Extension Auditorium

MHEG Annual Meeting & Golf Outing: June 4th Ashland, NE - Quarry Oaks Golf Course

TDHCA Board Meeting: July 12th Austin, TX - Capitol Extension Auditorium

Kansas Housing Conference: Sept. 12th-14th Topeka, KS - Capitol Plaza Hotel

IFA Board Meeting: June 6th Des Moines, IA - IFA Office

TAAHP Conference: July 23rd-25th Austin, TX - Fairmont Hotel

OHFA Board Meeting: Sept. 12th Oklahoma City, OK - OHFA Office

KHRC Board Meeting: June 7th Topeka, KS - KDFA Board Room

CHFA Board Meeting: July 26th Denver, CO - CHFA Board Room

KHRC Board Meeting: Sept. 13th Topeka, KS - KDFA Board Room

AHAA Conference: June 12th-13th Little Rock, AR - Wyndham Hotel

August

NASLEF Conference: Sept. 26th-28th Boston, MA

June

NIFA Board Meeting: June 15th Lincoln, NE - NIFA Board Room

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

30%PV 3.28% AFR 3.04% 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

September

OHFA Board Meeting: July 11th Oklahoma City, OK - OHFA Office

CHFA Board Meeting: May 24th Denver, CO - CHFA Board Room

April 2018

NIFA Board Meeting: Aug. 17th Lincoln, NE - NIFA Board Room

TDHCA Board Meeting: June 28th Austin, TX - Capitol Extension Auditorium

IFA Board Meeting: July 11th Des Moines, IA - IFA Office

AFR 2.88%

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

OHFA Board Meeting: May 16th Oklahoma City, OK - OHFA Office

TDHCA Board Meeting: May 24th Austin, TX - Capitol Extension Auditorium

30%PV 3.27%

August continued

Units

516 15,912

Counties Represented

187

Cities Represented

228

Vacancy Percentage

6.07%*

Debt Coverage Ratio

2.06*

Information current as of 4/20/18 *Data compiled from 12/31/17 figures using stabilized developments only, vacancy percentage is using economic vacancy.

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.

CHFA Board Meeting: Sept. 20th Denver, CO - CHFA Board Room 6

We’re Growing! Come Join Our MHEG Team.

MHEG is growing and we’re looking to hire associates to join our MHEG team! For complete job descriptions and requirements, visit our website’s Employment page: www.mheginc.com/about-mheg/employment. To apply, email your resume to kmcaleer@mheginc.com.

Acquisitions Manager – Responsible for underwriting equity investments in affordable housing developments financed with LIHTCs in compliance with MHEG processes, procedures and credit standards. This individual works with MHEG management, affordable housing developers, lenders, state Housing Finance Agencies and other government agencies to close our investments into operating partnerships.

Fund Reporting Manager – Responsible for reporting MHEG investments in multiple affordable housing developments financed with a variety of funding sources, which include LIHTCs, historic tax credits, state tax credits and other Federal and State Affordable Housing Financing Programs. The Fund Reporting Manager is responsible for maintaining and analyzing the company’s information systems, investor reporting and financial management processes. This individual works with investors, affordable housing developers, property managers and accounting firms.

Financial Analyst – Responsible for helping asset manage MHEG investments in multiple affordable housing developments financed with LIHTCs. This individual works with affordable housing developers, property managers and accounting firms. The Financial Analyst handles the intake and review of Operating Partnership financial reporting, and supports Asset Managers in their role of improving the financial, operational and physical health of our investments. This individual also helps foster strong relationships with our various partners.

1

Volume 10, Issue 2

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

CEO Update

Northeast Region Update

John Wiechmann Greetings Friend!

Well, we’re halfway through April and, of course, it just snowed across Nebraska. Hopefully warmer weather arrives soon.

Regardless, we’re working hard to grow more housing and help new deals spring to life: seven closings in the first quarter resulting in 243 rental homes. And 2017 was a banner year even with the political and legislative uncertainty. MHEG closed $129 million in investments into 29 developments, helping create over 1,000 safe, decent and affordable units.

While we wait for spring to arrive, MHEG is celebrating 25 years in business, growing and looking to the future years ahead. We hosted an anniversary dinner last month to celebrate this milestone and show our appreciation to our many, many partners. As I reflect on the success of the company, I want to recognize the staff that make up our MHEG family. We have an incredibly talented team that is passionate about achieving our mission of changing lives for a better tomorrow through the provision of quality affordable housing.

Their work and dedication, day in and day out, is how MHEG got this far. To the MHEG Team, thank you! We look forward to building on our past success as we expand once again, adding North Dakota to our footprint.

The past four months have seen lots of legislative activity. The end of last year brought enactment of the Tax Cuts and Jobs Act. Despite an initial scare from the House of Representatives that private activity bonds might be eliminated, at the end of the day Section 42 remained intact and relatively unscathed. However, other tax law changes in the bill ultimately reduced the economic value of the LIHTC and will likely impact production in the coming years. Thankfully, we have strong advocates in the House and Senate. In March, as part of the Omnibus spending package, Congress increased the amount of 9% LIHTC by 12.5%. In addition, the Omnibus fully funded Section 8 contracts and brings HOME funding to its highest level in

Scott Fitzpatrick many years. We are grateful for these provisions! Of course, the advocacy efforts must continue. Among other things, we need to permanently lock the floating 4% applicable percentage at 4% and allow Housing Finance Agencies to award basis boosts to LIHTC transactions financed with tax-exempt bonds.

Bringing Members of Congress and their staff to see the properties and meet the residents remains a very effective means of earning their support.

I close with another Thank You. Thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials for letting MHEG change so many lives over the past 25 years! We are incredibly grateful for all of the partnerships and friendships we’ve established these past two and a half decades. See you on June 4th at our Annual Meeting!

I’d like to start off by congratulating Arch Icon Development for the closing of their Aberdeen project in Sioux City, Iowa, and Community Housing Initiatives for their Court View project also located in Sioux City.

The Aberdeen is an adaptive reuse of the old Central High School Annex building and will add 46 units for families. Court View is the acquisition/ rehabilitation of 24 existing units for families. Both projects are due to complete construction in the fall of 2018.

I’d also like to congratulate Carolann Jenson on assuming the role of Interim Executive Director of the Iowa Finance Authority (IFA). The IFA Board approved the recipients for the 2018 application round on March 6th, 12 projects were selected from across the state. Comments for the 2019 QAP are due to IFA on May 4th.

Applications for the Minnesota 2019 Round 1 are due June 14th, 2018.

We are coming up on my six-year anniversary with MHEG, as I look back on the past several years it’s amazing to see what we’ve been able to accomplish.

When I began in 2012, MHEG was just under the 10,000-unit mark, something we celebrated in 2013, and at 347 projects. Now in 2018, as we celebrate MHEG’s 25th year anniversary, we are approaching 16,000 units and have invested in 516 projects. I’m honored to be working at MHEG with all our partners and to be contributing to our mission of creating and sustaining quality and safe affordable housing.

I’d like to close by asking that anyone who has not signed on with the ACTION Coalition to please do so! ACTION is a powerful advocate for affordable housing at the federal level. It is free and easy to do at: http:// rentalhousingaction.org/join

Northwest Region Update Cindy Koster

The Northwest Region closed three acquisitions since our last newsletter update in November. In Nebraska, Porter Estates, LLC, earned the title of the 500th project closed in MHEG’s portfolio. Congratulations to developer Excel Development Group for partnering with us on this milestone. Check out the Property Spotlight section on page 4 for more about Porter Estates.

Additionally, we closed Southview Estates, LP, a 20-unit family project located in Wayne, Nebraska. Mesner Development Co. served as the developer and Wayne Community Housing Development Corporation is the Managing Member. Mesner Development Co. has been a partner of MHEG’s since 2000 and has closed 49 projects with MHEG. In Colorado, MHEG closed into Tammen Hall Apartments LLC. Developed by Solvera Developers the project is in Denver and involves the historic rehabilitation of a former nurse dormitory and children’s hospital building into 49 units that will house senior residents.

MHEG celebrated it’s 500th acquisition during our 25th Year Celebration on March 13th, 2018. Partners of Porter Estates included, Horizon Bank (Trina Brown and Greg Dunlap), John Wiechmann, NIFA (Sara Tichota) and Excel Development Group (Brent Williams).

Central Region Update Pat Michaelis The word for the day in the Central Region is “Patience”. Developers have submitted applications to KHRC and MHDC and are awaiting LIHTC awards to be announced. Forty-two applications were submitted in Kansas and 115 in Missouri. Kansas awards should be announced in early May. The Missouri announcement date has not been set; however, a Commissions meeting is scheduled for June 14th.

Awards are always very competitive and this year is no exception. Tax reform reduced the value of LIHTC’s. However, the Omnibus Bill increased allocations to states by 12.5% for four years (as mentioned above), which mostly replaces the reduction from tax reform. It also allows for resident income averaging. Income may be as high as 80% of area medium income if the average in the development is 60%. This is very helpful to a potential resident whose income is at 62% and will now qualify. It will also help workforce housing with the 80% cap. I would note that the Kansas Delegation voted 100% for the Omnibus Bill; Missouri at 70%; and Oklahoma at 43%. John Wiechmann, Andrea Frymire and I were part of the Kansas and Oklahoma contingency that visited state delegations in Washington D.C. this past March. I would like to think we helped make a difference.

Welcome Brad Reiff to the Central Region and MHEG team. Brad is Acquisitions Manager serving the Central Region, Kansas and Missouri. He is responsible for underwriting MHEG equity investments in developments financed with Federal Low-Income Housing Tax Credits. Brad has extensive affordable housing experience with prior service as Loan Specialist, USDA Rural Development; Deputy Director, Housing & Neighborhood Development, City of Topeka; and HOME Program Director, Kansas Housing Resources Corporation. Brad is an experienced professional and wants to be a resource to all partners.

Brad and his wife, Debbie, have three children. Welcome Brad!

As always, Lisa, Brooke, Brad and I are always available to assist you 2

November 2017

MHEG recently signed a commitment letter for a new construction, senior project located in Aurora, Colorado, called Cornell Senior Apartments.

The property sponsor is Community Housing Development Association, Inc. (CHDA). MHEG is excited to partner with CHDA again and this will be the second project MHEG and CHDA have worked on together.

Looking ahead, Colorado LIHTC applications are in for the state’s first round with awards expected to be made in early May. We appreciate both our new and past relationships and partnerships and look forward to working with you again in the coming year. Thank you for continuing to make MHEG a company I am proud to work for.

South Region Update Andrea Frymire

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 July. We look forward to award season which begins in May in Oklahoma.

The Oklahoma Affordable Housing Act has survived another year of the Oklahoma Legislature. With a significant budget deficit again this year, we were concerned that our industry might lose this valuable resource.

Between 2015 and 2017, the Oklahoma Affordable Housing Act provided financing for 30 developments across 24 counties in 28 different cities.

The total number of housing units produced was 1,548. The Oklahoma Housing Finance Agency allocated $12,227,080 in state affordable housing credits during this three year period. The Oklahoma Coalition for Affordable Housing hosted their third 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.

I had the honor of representing Oklahoma in Washington D.C. in March and met with six of the seven offices for Oklahoma’s Senators and Representatives. Our agenda continues to be support of affordable

housing throughout the state. The Oklahoma delegation was receptive to our message 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.

We wish all of our partners the best of luck on their pending applications and look forward to working with everyone on 2018 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!

Greg Shinn (Mental Health Assoc OK), Representative Mark Lepak, Andrea Frymire (MHEG) and Wanda DeBruler (DeBruler Inc.) attending the 3rd Annual Affordable Housing Day at the Oklahoma State Capitol.

3

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

CEO Update

Northeast Region Update

John Wiechmann Greetings Friend!

Well, we’re halfway through April and, of course, it just snowed across Nebraska. Hopefully warmer weather arrives soon.

Regardless, we’re working hard to grow more housing and help new deals spring to life: seven closings in the first quarter resulting in 243 rental homes. And 2017 was a banner year even with the political and legislative uncertainty. MHEG closed $129 million in investments into 29 developments, helping create over 1,000 safe, decent and affordable units.

While we wait for spring to arrive, MHEG is celebrating 25 years in business, growing and looking to the future years ahead. We hosted an anniversary dinner last month to celebrate this milestone and show our appreciation to our many, many partners. As I reflect on the success of the company, I want to recognize the staff that make up our MHEG family. We have an incredibly talented team that is passionate about achieving our mission of changing lives for a better tomorrow through the provision of quality affordable housing.

Their work and dedication, day in and day out, is how MHEG got this far. To the MHEG Team, thank you! We look forward to building on our past success as we expand once again, adding North Dakota to our footprint.

The past four months have seen lots of legislative activity. The end of last year brought enactment of the Tax Cuts and Jobs Act. Despite an initial scare from the House of Representatives that private activity bonds might be eliminated, at the end of the day Section 42 remained intact and relatively unscathed. However, other tax law changes in the bill ultimately reduced the economic value of the LIHTC and will likely impact production in the coming years. Thankfully, we have strong advocates in the House and Senate. In March, as part of the Omnibus spending package, Congress increased the amount of 9% LIHTC by 12.5%. In addition, the Omnibus fully funded Section 8 contracts and brings HOME funding to its highest level in

Scott Fitzpatrick many years. We are grateful for these provisions! Of course, the advocacy efforts must continue. Among other things, we need to permanently lock the floating 4% applicable percentage at 4% and allow Housing Finance Agencies to award basis boosts to LIHTC transactions financed with tax-exempt bonds.

Bringing Members of Congress and their staff to see the properties and meet the residents remains a very effective means of earning their support.

I close with another Thank You. Thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials for letting MHEG change so many lives over the past 25 years! We are incredibly grateful for all of the partnerships and friendships we’ve established these past two and a half decades. See you on June 4th at our Annual Meeting!

I’d like to start off by congratulating Arch Icon Development for the closing of their Aberdeen project in Sioux City, Iowa, and Community Housing Initiatives for their Court View project also located in Sioux City.

The Aberdeen is an adaptive reuse of the old Central High School Annex building and will add 46 units for families. Court View is the acquisition/ rehabilitation of 24 existing units for families. Both projects are due to complete construction in the fall of 2018.

I’d also like to congratulate Carolann Jenson on assuming the role of Interim Executive Director of the Iowa Finance Authority (IFA). The IFA Board approved the recipients for the 2018 application round on March 6th, 12 projects were selected from across the state. Comments for the 2019 QAP are due to IFA on May 4th.

Applications for the Minnesota 2019 Round 1 are due June 14th, 2018.

We are coming up on my six-year anniversary with MHEG, as I look back on the past several years it’s amazing to see what we’ve been able to accomplish.

When I began in 2012, MHEG was just under the 10,000-unit mark, something we celebrated in 2013, and at 347 projects. Now in 2018, as we celebrate MHEG’s 25th year anniversary, we are approaching 16,000 units and have invested in 516 projects. I’m honored to be working at MHEG with all our partners and to be contributing to our mission of creating and sustaining quality and safe affordable housing.

I’d like to close by asking that anyone who has not signed on with the ACTION Coalition to please do so! ACTION is a powerful advocate for affordable housing at the federal level. It is free and easy to do at: http:// rentalhousingaction.org/join

Northwest Region Update Cindy Koster

The Northwest Region closed three acquisitions since our last newsletter update in November. In Nebraska, Porter Estates, LLC, earned the title of the 500th project closed in MHEG’s portfolio. Congratulations to developer Excel Development Group for partnering with us on this milestone. Check out the Property Spotlight section on page 4 for more about Porter Estates.

Additionally, we closed Southview Estates, LP, a 20-unit family project located in Wayne, Nebraska. Mesner Development Co. served as the developer and Wayne Community Housing Development Corporation is the Managing Member. Mesner Development Co. has been a partner of MHEG’s since 2000 and has closed 49 projects with MHEG. In Colorado, MHEG closed into Tammen Hall Apartments LLC. Developed by Solvera Developers the project is in Denver and involves the historic rehabilitation of a former nurse dormitory and children’s hospital building into 49 units that will house senior residents.

MHEG celebrated it’s 500th acquisition during our 25th Year Celebration on March 13th, 2018. Partners of Porter Estates included, Horizon Bank (Trina Brown and Greg Dunlap), John Wiechmann, NIFA (Sara Tichota) and Excel Development Group (Brent Williams).

Central Region Update Pat Michaelis The word for the day in the Central Region is “Patience”. Developers have submitted applications to KHRC and MHDC and are awaiting LIHTC awards to be announced. Forty-two applications were submitted in Kansas and 115 in Missouri. Kansas awards should be announced in early May. The Missouri announcement date has not been set; however, a Commissions meeting is scheduled for June 14th.

Awards are always very competitive and this year is no exception. Tax reform reduced the value of LIHTC’s. However, the Omnibus Bill increased allocations to states by 12.5% for four years (as mentioned above), which mostly replaces the reduction from tax reform. It also allows for resident income averaging. Income may be as high as 80% of area medium income if the average in the development is 60%. This is very helpful to a potential resident whose income is at 62% and will now qualify. It will also help workforce housing with the 80% cap. I would note that the Kansas Delegation voted 100% for the Omnibus Bill; Missouri at 70%; and Oklahoma at 43%. John Wiechmann, Andrea Frymire and I were part of the Kansas and Oklahoma contingency that visited state delegations in Washington D.C. this past March. I would like to think we helped make a difference.

Welcome Brad Reiff to the Central Region and MHEG team. Brad is Acquisitions Manager serving the Central Region, Kansas and Missouri. He is responsible for underwriting MHEG equity investments in developments financed with Federal Low-Income Housing Tax Credits. Brad has extensive affordable housing experience with prior service as Loan Specialist, USDA Rural Development; Deputy Director, Housing & Neighborhood Development, City of Topeka; and HOME Program Director, Kansas Housing Resources Corporation. Brad is an experienced professional and wants to be a resource to all partners.

Brad and his wife, Debbie, have three children. Welcome Brad!

As always, Lisa, Brooke, Brad and I are always available to assist you 2

April 2018

MHEG recently signed a commitment letter for a new construction, senior project located in Aurora, Colorado, called Cornell Senior Apartments.

The property sponsor is Community Housing Development Association, Inc. (CHDA). MHEG is excited to partner with CHDA again and this will be the second project MHEG and CHDA have worked on together.

Looking ahead, Colorado LIHTC applications are in for the state’s first round with awards expected to be made in early May. We appreciate both our new and past relationships and partnerships and look forward to working with you again in the coming year. Thank you for continuing to make MHEG a company I am proud to work for.

South Region Update Andrea Frymire

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 July. We look forward to award season which begins in May in Oklahoma.

The Oklahoma Affordable Housing Act has survived another year of the Oklahoma Legislature. With a significant budget deficit again this year, we were concerned that our industry might lose this valuable resource.

Between 2015 and 2017, the Oklahoma Affordable Housing Act provided financing for 30 developments across 24 counties in 28 different cities.

The total number of housing units produced was 1,548. The Oklahoma Housing Finance Agency allocated $12,227,080 in state affordable housing credits during this three year period. The Oklahoma Coalition for Affordable Housing hosted their third 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.

I had the honor of representing Oklahoma in Washington D.C. in March and met with six of the seven offices for Oklahoma’s Senators and Representatives. Our agenda continues to be support of affordable

housing throughout the state. The Oklahoma delegation was receptive to our message 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.

We wish all of our partners the best of luck on their pending applications and look forward to working with everyone on 2018 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!

Greg Shinn (Mental Health Assoc OK), Representative Mark Lepak, Andrea Frymire (MHEG) and Wanda DeBruler (DeBruler Inc.) attending the 3rd Annual Affordable Housing Day at the Oklahoma State Capitol.

3

Volume 10, Issue 2

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

Property Spotlight: Porter Estates, LLC - Beatrice, Nebraska

Closed Acquisitions

MHEG closed equity on its 500th acquisition, Porter Estates, LLC, in December 2017. This accomplishment comes from the collaboration and partnership of Excel Development Group, Midwest Housing Initiatives, Horizon Bank and Nebraska Investment Finance Authority.

Located in Beatrice, Nebraska, Porter Estates will provide 16 twobedroom units for persons 55+ of age and older. All units will include an attached garage, enclosed secure storage area, a washer/dryer, as well as kitchen appliances. The units will be one level with zero entry design with rear patios and raised garden beds. One unit will be fully handicapped accessible and one unit will accommodate individuals with sensory disabilities.

Porter Estates, LLC Managing Member

Midwest Housing Initiatives

Developer

Excel Development Group

Property Manager

Excel Development Group

LIHTC DEVELOPMENTS

FUND

CITY / STATE

Sunflower Gardens III, LLC

MHEG 48

Valley Center, KS

Washita Plains II, LLC

MHEG 48

Davis, OK

Merriam Sunflower LLC

MHEG 48

Merriam, KS

Oak Point Partners, LLC

MHEG 48

Kansas City, MO

Teal Lake Village Mexico, LP

MHEG 48

Link of Hutchinson LLC

MHEG 48 MHEG 48

Hutchinson, KS

Link of Hutchinson II LLC

UNITS DATE

DEVELOPER

28

January

Mennonite Housing Rehabilitation Services, Inc.

8

January

LW Development

108

January

Investment Resources Corp

30

February

CC&E, LLC

Mexico, MO

40

February

Holden Communities, LLC

Hutchinson, KS

17

March

Manske & Associates

12

March

Manske & Associates

Total Units Closed to Date in 2018 Total Units Closed in 2017

Excel Development Group hosted a ground breaking ceremony in March for the property. Twelve of the units will be constructed on the former site of Beatrice Community Hospital that was demolished.

Excel Development Group is a development, property, asset management and consulting firm that services the Midwest. MHEG has partnered with Excel on over 50 projects.

243 1,013

Staff Announcements

Above: A groundbreaking ceremony was held on March 19th, 2018, in Beatrice, Nebraska.

Josh Rauner, Financial Analyst Josh joined MHEG this past December as a Financial Analyst in our Omaha office. His duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Josh comes to MHEG with over four years of accounting experience. He is a graduate of the University of Nebraska at Lincoln with a degree in Accounting.

Right: An example of an Excel Development Group duplex unit.

Sara Church, Asset Manager

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

Sara joined MHEG as an Asset Manager in our Omaha office this past January. Her duties will include overseeing a development portfolio with financial reviews, analysis and reporting, along with site visits and problem resolution/workouts as needed. Sara previously worked for Mosaic in a variety of roles and has over 20 years of housing experience. She received her degree from Dana College.

Mike Powley, Deputy Director of Operations

Members of the Oklahoma Coalition for Affordable Housing attend the 3rd Annual Affordable Housing Day at the Oklahoma State Capitol on March 28th, 2018.

SAVE DATE the

On December 6th, 2017, partners of Keystone Place (MHEG Fund 46) celebrated the completion of 32 units for special need residents in Wichita, Kansas. Pictured (L-R) Colin McKenney (Starkey, Inc), Mark Cox (Vintage Construction), Jeff Longwell (Mayor of Wichita), Brian Chamberlain (Andover State Bank), Jeff Blubaugh (Wichita City Council) Fred Bentley (KHRC), Lori Marceau (Starkey, Inc.), Timothy Reimer (Starkey, Inc.), and Brad Reiff (MHEG).

JUNE 4th, 2018 MHEG ANNUAL MEETING & GOLF OUTING

MHEG is excited to partner with Rite Development on Whittier Place, a 36-multifamily-unit development for the community of Emporia, Kansas. A groundbreaking was held on December 14th, 2017.

4

November 2017

Left: Sheltering Tree hosted an open house celebration on April 15th, 2018, for its newly constructed 23-unit building for adults with developmental disabilities.

Resident Marshal Rabe showed off his new home to guests touring the facility. The project was developed by J. Development Company.

Mike was recently hired as our Deputy Director of Operations in our Omaha office. His duties will include overseeing day-to-day operations, IT systems, employee benefits and risk management. Mike previously worked for Lowe’s Companies with experience in IT systems management and operational process development. He is a graduate of the University of Nebraska at Omaha. He started working for MHEG at the end of January.

Colton Laface, Asset Management Intern Colton was recently hired as our Asset Management Intern for the Omaha office. He will be assisting the Asset Management department. Colton is currently attending Creighton University earning a degree in Business Administration-Financial Analysis. He previously worked as an intern for Northwestern Mutual. Colton started with MHEG in April.

Joshua Yurek, Director of Government Affairs Joshua was recently hired as our Director of Government Affairs. His duties will include overseeing MHEG’s federal and state policy agenda. He will travel to Washington D.C. and throughout the MHEG footprint to educate and advocate for affordable housing resources. Joshua comes to MHEG with over 10 years of Congressional work experience. He most recently served as a Senior Policy Advisor for Senator Pat Roberts (R-Kansas). Joshua has his undergraduate degree from Rockhurst University and his MBA from Indiana University, Kelley School of Business. He began working for MHEG in March.

MHEG would also like to recognize several employees who will be reaching their 5th and 15th service anniversary date in 2018. MHEG recognizes that dedicated employees are its most important asset.

We are proud to have so many committed and experienced staff.

5 YEARS Dustin Daugherty, Construction Manager Cindy Wieck, Administrative Assistant 15 YEARS Shannon Johnson, Financial Analyst

Tom Stratman, Vice President of Acquisitions Cindy Koster, Senior Acquisitions Manager

5

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

Property Spotlight: Porter Estates, LLC - Beatrice, Nebraska

Closed Acquisitions

MHEG closed equity on its 500th acquisition, Porter Estates, LLC, in December 2017. This accomplishment comes from the collaboration and partnership of Excel Development Group, Midwest Housing Initiatives, Horizon Bank and Nebraska Investment Finance Authority.

Located in Beatrice, Nebraska, Porter Estates will provide 16 twobedroom units for persons 55+ of age and older. All units will include an attached garage, enclosed secure storage area, a washer/dryer, as well as kitchen appliances. The units will be one level with zero entry design with rear patios and raised garden beds. One unit will be fully handicapped accessible and one unit will accommodate individuals with sensory disabilities.

Porter Estates, LLC Managing Member

Midwest Housing Initiatives

Developer

Excel Development Group

Property Manager

Excel Development Group

LIHTC DEVELOPMENTS

FUND

CITY / STATE

Sunflower Gardens III, LLC

MHEG 48

Valley Center, KS

Washita Plains II, LLC

MHEG 48

Davis, OK

Merriam Sunflower LLC

MHEG 48

Merriam, KS

Oak Point Partners, LLC

MHEG 48

Kansas City, MO

Teal Lake Village Mexico, LP

MHEG 48

Link of Hutchinson LLC

MHEG 48 MHEG 48

Hutchinson, KS

Link of Hutchinson II LLC

UNITS DATE

DEVELOPER

28

January

Mennonite Housing Rehabilitation Services, Inc.

8

January

LW Development

108

January

Investment Resources Corp

30

February

CC&E, LLC

Mexico, MO

40

February

Holden Communities, LLC

Hutchinson, KS

17

March

Manske & Associates

12

March

Manske & Associates

Total Units Closed to Date in 2018 Total Units Closed in 2017

Excel Development Group hosted a ground breaking ceremony in March for the property. Twelve of the units will be constructed on the former site of Beatrice Community Hospital that was demolished.

Excel Development Group is a development, property, asset management and consulting firm that services the Midwest. MHEG has partnered with Excel on over 50 projects.

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Staff Announcements

Above: A groundbreaking ceremony was held on March 19th, 2018, in Beatrice, Nebraska.

Josh Rauner, Financial Analyst Josh joined MHEG this past December as a Financial Analyst in our Omaha office. His duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Josh comes to MHEG with over four years of accounting experience. He is a graduate of the University of Nebraska at Lincoln with a degree in Accounting.

Right: An example of an Excel Development Group duplex unit.

Sara Church, Asset Manager

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

Sara joined MHEG as an Asset Manager in our Omaha office this past January. Her duties will include overseeing a development portfolio with financial reviews, analysis and reporting, along with site visits and problem resolution/workouts as needed. Sara previously worked for Mosaic in a variety of roles and has over 20 years of housing experience. She received her degree from Dana College.

Mike Powley, Deputy Director of Operations

Members of the Oklahoma Coalition for Affordable Housing attend the 3rd Annual Affordable Housing Day at the Oklahoma State Capitol on March 28th, 2018.

SAVE DATE the

On December 6th, 2017, partners of Keystone Place (MHEG Fund 46) celebrated the completion of 32 units for special need residents in Wichita, Kansas. Pictured (L-R) Colin McKenney (Starkey, Inc), Mark Cox (Vintage Construction), Jeff Longwell (Mayor of Wichita), Brian Chamberlain (Andover State Bank), Jeff Blubaugh (Wichita City Council) Fred Bentley (KHRC), Lori Marceau (Starkey, Inc.), Timothy Reimer (Starkey, Inc.), and Brad Reiff (MHEG).

JUNE 4th, 2018 MHEG ANNUAL MEETING & GOLF OUTING

MHEG is excited to partner with Rite Development on Whittier Place, a 36-multifamily-unit development for the community of Emporia, Kansas. A groundbreaking was held on December 14th, 2017.

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April 2018

Left: Sheltering Tree hosted an open house celebration on April 15th, 2018, for its newly constructed 23-unit building for adults with developmental disabilities.

Resident Marshal Rabe showed off his new home to guests touring the facility. The project was developed by J. Development Company.

Mike was recently hired as our Deputy Director of Operations in our Omaha office. His duties will include overseeing day-to-day operations, IT systems, employee benefits and risk management. Mike previously worked for Lowe’s Companies with experience in IT systems management and operational process development. He is a graduate of the University of Nebraska at Omaha. He started working for MHEG at the end of January.

Colton Laface, Asset Management Intern Colton was recently hired as our Asset Management Intern for the Omaha office. He will be assisting the Asset Management department. Colton is currently attending Creighton University earning a degree in Business Administration-Financial Analysis. He previously worked as an intern for Northwestern Mutual. Colton started with MHEG in April.

Joshua Yurek, Director of Government Affairs Joshua was recently hired as our Director of Government Affairs. His duties will include overseeing MHEG’s federal and state policy agenda. He will travel to Washington D.C. and throughout the MHEG footprint to educate and advocate for affordable housing resources. Joshua comes to MHEG with over 10 years of Congressional work experience. He most recently served as a Senior Policy Advisor for Senator Pat Roberts (R-Kansas). Joshua has his undergraduate degree from Rockhurst University and his MBA from Indiana University, Kelley School of Business. He began working for MHEG in March.

MHEG would also like to recognize several employees who will be reaching their 5th and 15th service anniversary date in 2018. MHEG recognizes that dedicated employees are its most important asset.

We are proud to have so many committed and experienced staff.

5 YEARS Dustin Daugherty, Construction Manager Cindy Wieck, Administrative Assistant 15 YEARS Shannon Johnson, Financial Analyst

Tom Stratman, Vice President of Acquisitions Cindy Koster, Senior Acquisitions Manager

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

Volume 11, Issue 1

April

MHEG Celebrates 25 Years

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 2017 30%PV 3.23% AFR 2.64% January 2018 30%PV 3.24%

MHEG is celebrating 25 years in 2018, and we have a lot to celebrate. To date, we have created just under 16,000 units of affordable housing, closed over 500 developments and raised over $1.75B of equity capital.

MHEG hosted a 25th Anniversary Celebration on Tuesday, March 13th, 2018, in Omaha, Nebraska. It was a great dinner and opportunity to celebrate with our staff and partners that have helped MHEG achieve its success over the past 25 years.

We look forward to celebrating this milestone with you throughout the year at our many annual state appreciation dinners.

And we look forward to partnering with you for many more years to come.

2018 25 YEARS1993

AFR 2.59% February 2018 30%PV 3.25% AFR 2.66% March 2018

Upcoming Events May

IFA Board Meeting: May 2nd Des Moines, IA - IFA Office KHRC Board Meeting: May 3rd Topeka, KS - KDFA Board Room

June continued

MOWHA Annual Conference: June 27th-28th Kansas City, MO - InterContinental KC at the Plaza CHFA Board Meeting: June 28th Denver, CO - CHFA Board Room

OK Housing Conference: Aug. 22nd-23rd Oklahoma City, OK - Embassy Suites

MHDF Annual Meeting: May 23rd Omaha, NE - MHEG Office

July

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

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

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

TDHCA Board Meeting: Sept. 6th Austin, TX - Capitol Extension Auditorium

MHEG Annual Meeting & Golf Outing: June 4th Ashland, NE - Quarry Oaks Golf Course

TDHCA Board Meeting: July 12th Austin, TX - Capitol Extension Auditorium

Kansas Housing Conference: Sept. 12th-14th Topeka, KS - Capitol Plaza Hotel

IFA Board Meeting: June 6th Des Moines, IA - IFA Office

TAAHP Conference: July 23rd-25th Austin, TX - Fairmont Hotel

OHFA Board Meeting: Sept. 12th Oklahoma City, OK - OHFA Office

KHRC Board Meeting: June 7th Topeka, KS - KDFA Board Room

CHFA Board Meeting: July 26th Denver, CO - CHFA Board Room

KHRC Board Meeting: Sept. 13th Topeka, KS - KDFA Board Room

AHAA Conference: June 12th-13th Little Rock, AR - Wyndham Hotel

August

NASLEF Conference: Sept. 26th-28th Boston, MA

June

NIFA Board Meeting: June 15th Lincoln, NE - NIFA Board Room

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

30%PV 3.28% AFR 3.04% 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

September

OHFA Board Meeting: July 11th Oklahoma City, OK - OHFA Office

CHFA Board Meeting: May 24th Denver, CO - CHFA Board Room

April 2018

NIFA Board Meeting: Aug. 17th Lincoln, NE - NIFA Board Room

TDHCA Board Meeting: June 28th Austin, TX - Capitol Extension Auditorium

IFA Board Meeting: July 11th Des Moines, IA - IFA Office

AFR 2.88%

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

OHFA Board Meeting: May 16th Oklahoma City, OK - OHFA Office

TDHCA Board Meeting: May 24th Austin, TX - Capitol Extension Auditorium

30%PV 3.27%

August continued

Units

516 15,912

Counties Represented

187

Cities Represented

228

Vacancy Percentage

6.07%*

Debt Coverage Ratio

2.06*

Information current as of 4/20/18 *Data compiled from 12/31/17 figures using stabilized developments only, vacancy percentage is using economic vacancy.

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.

CHFA Board Meeting: Sept. 20th Denver, CO - CHFA Board Room 6

We’re Growing! Come Join Our MHEG Team.

MHEG is growing and we’re looking to hire associates to join our MHEG team! For complete job descriptions and requirements, visit our website’s Employment page: www.mheginc.com/about-mheg/employment. To apply, email your resume to kmcaleer@mheginc.com.

Acquisitions Manager – Responsible for underwriting equity investments in affordable housing developments financed with LIHTCs in compliance with MHEG processes, procedures and credit standards. This individual works with MHEG management, affordable housing developers, lenders, state Housing Finance Agencies and other government agencies to close our investments into operating partnerships.

Fund Reporting Manager – Responsible for reporting MHEG investments in multiple affordable housing developments financed with a variety of funding sources, which include LIHTCs, historic tax credits, state tax credits and other Federal and State Affordable Housing Financing Programs. The Fund Reporting Manager is responsible for maintaining and analyzing the company’s information systems, investor reporting and financial management processes. This individual works with investors, affordable housing developers, property managers and accounting firms.

Financial Analyst – Responsible for helping asset manage MHEG investments in multiple affordable housing developments financed with LIHTCs. This individual works with affordable housing developers, property managers and accounting firms. The Financial Analyst handles the intake and review of Operating Partnership financial reporting, and supports Asset Managers in their role of improving the financial, operational and physical health of our investments. This individual also helps foster strong relationships with our various partners.

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