Midwest Housing Equity Group 2018 Annual Report
Under Every Roof, There is a
Corporate Philosophy Mission Statement:
Midwest Housingâ&#x20AC;&#x2122;s mission is to change lives for a better tomorrow by promoting the development and sustainability of quality affordable housing.
Midwest Housing aspires to be the leading regional syndicator of low-income housing tax credits, recognized for its excellent track record of selecting, investing in and protecting quality real estate developments that revitalize the communities in which they are built.
Integrity: as fiduciaries, we are honest and up front in all of our transactions, avoiding even the appearance of impropriety or conflict of interest transactions. Stewardship: we are excellent stewards of our investments (and thus the residents), honoring our written and implicit commitments to our investors, developers, residents and communities. Excellence: we strive to be the best in the business, employing the best individuals, utilizing up-to-date processes and infrastructure, and conservative underwriting parameters. Local Presence: we are and will remain local, believing that a â&#x20AC;&#x153;boots on the groundâ&#x20AC;? approach is the best way to understand and protect the developments. Employee-Focused: our employees are our strength. Recognizing that, we endeavor to provide ongoing development, training and advancement opportunities, to respect a work/ life balance and to recognize and reward personal, department and company achievements.
Message from our President
MHEG Portfolio Summary
Board of Directors & Committee Members
President & CEO’s Message Hello Friends! Thank you for taking the time to read our 2018 Annual Report. As always, we are excited to share our successes, your successes and our residents’ successes with all of our partners. The theme of our 2018 Annual Report is “Under Every Roof, There Is A Story.” The following resident profiles prove that statement. These are profiles of challenge, of adversity, of hardship. More importantly, these are profiles of hope, of beating the long odds and of lives changed for a better tomorrow. These residents, and their experiences, remind us that what we all do matters. They also give rise to a simple truth - a safe, decent and affordable home is the bedrock upon which people can build a successful life. And, in the alternative, demonstrate that the lack of a good place to call home makes it near impossible to hold down a job, complete a good education, maintain a healthy lifestyle and raise our kids. We are grateful to work with each of you to help build the roofs that create these success stories. In 2018, we raised over $200 million of new capital. We invested in 27 developments, helping build 1,399 safe, decent and affordable rental homes. On the MHEG side, I want to thank our great team and our volunteer Board of Directors and Operations & Investment Committee members. It is an honor to work alongside each of you as we execute on our mission of Changing Lives for a Better Tomorrow! Helping create and finance safe, decent and affordable housing is the raison d’etre for all of us at MHEG. There are thousands more stories of hope, of beating the long odds and of lives changed for a better tomorrow throughout the Midwest. If you, a resident or another individual have a story to share about how finding a safe, decent and affordable home changed a life, please let me know. The more we can communicate just how many lives are impacted, the more we can effectively advocate for more housing resources. Ultimately, it means we can all Change Lives for a Better Tomorrow! Please enjoy the rest of our 2018 Annual Report and be inspired by the great work you do! John Wiechmann President/CEO
Under Every Roof, There is a
“I’m grateful for what I have, and I have to be conscious that it’s just not me that made it possible. I have to think of more than just myself, it comes with responsibility.”
Meet Warren. Two and a half years ago, he relocated to Des Moines from Chicago in hopes of changing his life. He was leaving behind a time of madness and trouble and ready for a new city, new start. Soon after his arrival, Warren relapsed and found himself homeless. He made his way to Bethel Mission men’s shelter where he was eventually given an ultimatum to join their life recovery program or leave. The decision was easy. After completing the program, he began employment and was offered an opportunity to live at Brickstones at Riverbend. Today, Warren is in a much different situation. He spends his day cooking meals at Hope Ministries, the same organization that provided him shelter and rehabilitation. When he’s not working, he enjoys singing in his church’s choir group. He is content with his days being quiet and uncomplicated. He is humble and extremely appreciative of everyone that has helped him get to where he is today. He considers it a blessing to be able to live at Brickstones. His favorite part about living there are the washer and dryer. On a recent afternoon, Warren was sitting quietly in his living room, looking at his apartment, his brand-new kitchen, and he was in awe, “It hit me, wow, this is all yours.” Warren is very aware that the dark side of living is still alive and truly appreciates the chances he’s been given. “I’m grateful for what I have, and I have to be conscious that it’s not just me that made it possible. I have to think of more than just myself, it comes with responsibility.” Brickstones at Riverbend is a multifamily property for persons 55 and over. It was developed by Anawim Housing and funded through MHEG Fund 46, LP. Anawim Housing, founded in 1987, is nonprofit organization that develops and manages affordable housing in the state of Iowa. In addition, Anawim provides several programs and services for their residents to ensure their success.
Meet Victoria. Originally from California, she and her family moved to Oklahoma many years ago looking for a change, not realizing how much change she would go through. Victoria was in an unhealthy relationship and knew she needed to leave. Unsure of what the future would bring, and scared to be on her own, she finally made the decision. When she and the kids left, they left everything - their home, their school, their belongings. Victoria and her kids temporarily moved in with her mom, who lived nearby, while she searched for housing. On a whim, Victoria stopped by South Rock Creek Estates not realizing it was an affordable housing development. The property manager explained the program and went through all the forms needed for her to apply. After learning about the affordable rents and viewing the community, she knew she needed to get in there. “It’s not what you think it’s going to be, when you hear low-income,” explained Victoria. “I didn’t think they would be as nice as they are.” A week after applying, she received the call that they had a house available. Since moving into the home, Victoria says things have been moving forward. She works hard during the day at an auto body shop. In the evenings, she enjoys watching her kids play outside with all the children in the neighborhood. It’s been a fresh start for the family, they love the neighborhood, the schools; they feel safe and everyone is happier. “It’s a foundation, and if your foundation is solid, then anything can happen.” Victoria is so appreciative to be living at South Rock Creek Estates, “It may not be a lot to other people, but to people who have been through the things I have, it’s major. This is a really good program, it really is. It can really help people change their lives.” Today, Victoria lives for routine and her children. She loves her new home and is excited to be decorating. She has plans to go back to college to become a counselor. South Rock Creek Estates, located in Shawnee, Oklahoma, consists of 20 single family rental homes. It was funded through Oklahoma Fund IV, LP and developed by Excel Development Group.
“It’s a foundation. And if your foundation is solid, then anything can happen.” 5
Meet Marshal. About a year ago he moved into a Sheltering Tree Community, an affordable housing residence for persons with developmental disabilities, located in Omaha, Nebraska. He moved from his parentsâ&#x20AC;&#x2122; home and is living on his own for the first time. Marshal makes his own meals, is learning to do his own laundry, and follows his daily schedule of activities. He spends time with the other residents of Sheltering Tree, watching sports on tv or enjoying movie night. They hang out in the community space and have the occasional impromptu dance party, Marshal loves to dance, or participate in group outings, such as bowling. Marshal is employed at a nearby restaurant that he is transported to by MOBY, a local shared, advance reservation origin-to-destination complementary paratransit service for ADA certified residents.
“Security. If anything happens to us, he has a place to go to.”
Marshal is proud to show you around his new apartment, and his parents, Rod & Luann, are just as excited for Marshal’s new apartment. Since moving in they’ve already noticed an increased level of confidence and independence. They are also happy to see the extended family Marshal is developing. “If anything happens to us, he has a place to go,” explains Rod grateful Marshal is living in a community that can provide security in the future if anything were to happen to them. Many of the residents of Sheltering Tree have experienced similar positive outcomes. They’ve formed a group of support and friendships among each other. Their quality of life and level of happiness has grown in the short time since they’ve been residents of the newly constructed Sheltering Tree property. This property was developed by J Development Company and funded through MHEG Fund 46, LP. It provides 24 units for people with developmental disabilities. Sheltering Tree is a non-profit organization that was founded in 2006, to help address the shortage of supportive housing options for developmentally disabled adults. They provide empowerment initiatives to assist residents in reaching a great level of independence in their lives.
2018 Portfolio Summary 20,000 units
Breakdown of Development Type
age restricted single family
1993 1994 1995 1996 1997 1998 1999
2000 2001 2002 2003 2004 2005 2006 2007
2008 2009 2010 2011
2012 2013 2014 2015 2016 2017 2018
Development Status operational
13-24 units 25+ units
Construction Type new
rehab historic rehab
2018 Developments In 2018, MHEG partnered with 27 developers to close over $175 million in equity for 37 developments, creating 1,399 affordable housing units. This included 15 age restricted developments, 15 multifamily developments, four single family home properties and three special needs housing developments. Projects ranged from an 8 unit rural deal to a 108 unit age restricted deal and represented 37 Midwest communities.
Nine Mile Station Senior Living, LLC Aurora - 50 age restricted units Developed by: Community Housing Development Association
Eastridge Villas, LLC Scott City - 20 age restricted units Developed by: Mesner Development Co.
Iowa 1314 W 3rd LLC Sioux City - 20 multifamily units Developed by: Arch Icon Development Corp
Link of Hutchinson, L.L.C. Hutchinson - 17 special needs units Developed by: Manske & Associates, LLC
CHI Penn Oaks, LLLP North Liberty - 38 multifamily units Developed by: Community Housing Initiatives, Inc.
Link of Hutchinson II, L.L.C. Hutchinson - 12 multifamily units Developed by: Manske & Associates, LLC
Immanuel Elderly Housing II, LLC Council Bluffs - 56 age restricted units Developed by: Immanuel Health Systems
Merriam Sunflower LLC Merriam - 108 age restricted units Developed by: Merriam Consultants, LLC
Sunset Spencer, LLLP Spencer - 91 age restricted units Developed by: Community Housing Initiatives, Inc.
Solana Village Townhomes, LLC McPherson - 18 special needs units Developed by: Disability Supports of the Great Plains, Inc.
Ellinwood Properties, LP Ellinwood - 24 multifamily units Developed by: MACO Development Company, LLC
Sunflower Gardens III, LLC Valley Center - 28 age restricted units Developed by: Mennonite Housing Rehabilitation
Bethel Estates of Gardner Phase IV, LP Gardner - 48 age restricted units Developed by: Wheatland Investments, LLC
Waterman Residences, LLC Wichita - 11 multifamily units Developed by: Vintage Construction, LLC
Buchananâ&#x20AC;&#x2122;s Crossing Subdivision Kansas CIty II LP Kansas City - 8 multifamily units Developed by: Tartan Residential, Inc. & Allen Associates
Ybarra Place II LLC Topeka - 14 multifamily units Developed by: Mesner Development Co.
Finney Place LP St. Louis - 40 single family units Developed by: Finney Place Developer, LLC
Highland Trails LLC Duncan, Chickasha, Marietta - 100 single family units Developed by: LW Development, LLC
Oak Point Partners, LLC Kansas City - 30 multifamily units Developed by: CC&E, LLC
Jasmine Court LLC Cushing - 24 multifamily units Developed by: Excel Development Group
Rocktree Fulton, LP Fulton - 64 age restricted units Developed by: Holden Communities, LLC
Magnolia Ridge Apartments, LLC Stillwater - 23 multifamily units Developed by: Excel Development Group
Teal Lake Village Mexico, LP Mexico - 40 multifamily units Developed by: Holden Communities, LLC
Shady Acres, LLC Ardmore - 87 multifamily units Developed by: LW Development, LLC
The Villas of Smithville, L.P. Smithville - 34 age restricted units Developed by: Midcontinent Equity Holdings LLC
The Estates of Midwest City, LP Midwest City - 66 age restricted units Developed by: Wheatland Investments, LLC
Village Meadow LP Boonville - 52 age restricted units Developed by: Southeast Holding, LLC
Washita Plains II, LLC Davis - 8 single family units Developed by: LW Development, LLC
Adams Park Crown I Limited Partnership Omaha - 16 single family units Developed by: Holy Name Properties Inc.
Cleveland Center Apartments Limited Partnership Sioux Falls - 39 multifamily units Developed by: Y Housing II, LLC
Canterbury Estates, LLC Sidney - 10 special needs units Developed by: Sidney Housing Authority
Eastbrooke Gardens, LP Kearney - 32 multifamily units Developed by: Dana Point Development Corporation
OPG Lamar Partners, LLC Wichita Falls - 30 age restricted units Developed by: Overland Property Group
Jefferson Estates, LLC Fairbury - 16 age restricted units Developed by: Excel Development Group
OPG Wolfforth Partners, LLC Wolfforth - 49 age restricted units Developed by: Overland Property Group
Madison Villas, LP Madison & Norfolk - 48 multifamily units Developed by: Dana Point Development Corporation Nebraska City Senior Patio Homes, L.P. Nebraska City - 28 age restricted units Developed by: North Star Housing, LLC
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
In 2018, MHEG raised over $200 million in equity capital. Since inception, MHEG has raised just under $2 billion of equity capital to invest in affordable housing. 13
Board & Committees Board of Directors Chris Hensley - Retired Vice President, Bank of the West - Chairman of the Board Dennis Brand - Chairman of the Executive Committee, BancFirst - Vice Chairman of the Board Barry Sandstrom - Retired President/CEO, Home Federal Bank - Secretary of the Board Frank Hayes - President, Hayes & Associates, L.L.C. Chris Hite - President, Sugar Creek Capital Kirk Kellner - Tri-State Regional President, Wells Fargo Nicole Theophilus - Chief Human Resource Officer, West Corporation John Wiechmann - CEO/President, Midwest Housing Equity Group
Budget & Compensation Committee
Frank Hayes - Hayes & Associates
Dennis Brand - BancFirst
Chris Hensley - Retired, Bank of the West
Chris Hensley - Retired, Bank of the West
Chris Hite - Sugar Creek Capital
Barry Sandstrom - Retired, Home Federal Bank
Kirk Kellner - Wells Fargo
Nicole Theophilus - West Corporation
Central Region Operations & Investment Committee
Northwest Region Operations & Investment Committee
Bob Arthur - Commerce Bank, N.A.
David Fisher - Midwest Housing Development Fund
Mark Dennett - INTRUST Bank, N.A.
Tim Hart - First National Bank of Omaha
David Fisher - Midwest Housing Development Fund
Justin Horst - Pinnacle Bank
Tracy Howren - UMB Bank, n.a.
Randy Ilich - Colorado Federal Savings Bank
Michael Scheopner - Landmark National Bank
John Wiechmann - Midwest Housing Equity Group
John Wiechmann - Midwest Housing Equity Group
South Region Operations & Investment Committee Northeast Region Operations & Investment Committee Jennifer Cooper - Bankers Trust Tom Hanafan - Pottawattamie County Board of Supervisors Chris Hensley - Retired, Bank of the West Susan Whitson - First National Bank of Waverly John Wiechmann - Midwest Housing Equity Group
Brent Bates - Bank SNB Roger Beverage - Oklahoma Bankers Association Dennis Brand - BancFirst Tom Oâ&#x20AC;&#x2122;Keefe - INTRUST Bank, N.A. John Wiechmann - Midwest Housing Equity Group Mike Wynn - Mabrey Bank
MHEG Staff Executive Staff
John Wiechmann Chief Executive Officer & President
Becky Christoffersen Chief Investment Officer
Jordan Abboud Vice President of Asset Management
Pat Michaelis Vice President Business Development Officer Central Region
Jason Main Chief Financial Officer
Ann Burge Chief Operating Officer
Tom Stratman Vice President of Acquisitions
Andrea Frymire Scott Fitzpatrick Vice President Vice President Business Development Officer Business Development Officer South Region Northeast Region
Evan Andrews Financial Analyst
Kelli Baker Asset Manager
Lisa Bryan Administrative Coordinator
Sara Church Asset Manager
Traci Collins Acquisitions Manager
Tracy Connor Corporate Accountant
Dustin Daugherty Construction Manager
Sammy Ehtisham Assistant Vice President of Acquisitions
Shannon Foster Accounting Manager
Steve Gross Senior Financial Analyst
Ryan Harris Acquisitions Manager
Brett Helt Financial Analyst Asset Stabilization
Jake Jacobsen Construction Manager
Shannon Johnson Accounting Assistant
Cindy Koster Senior Acquisitions Manager
Keely McAleer Corp. Communications & HR Administrator
Dana Oswald Accounting Coordinator
Shannon Powers Closing Manager Real Estate
Mike Powley Deputy Director of Operations
Cole Rogers Financial Analyst
Brooke Smith Senior Asset Manager
Laurie Stephenson Deputy Director of Compliance
Joshua Yurek Director of Government Affairs
Paul McDonald Senior Asset Manager
Sharita Nelson Compliance Specialist
Amanda Raak Financial Analyst
Josh Rauner Fund Reporting Manager
Brad Reiff Acquisitions Manager
Deb Swanson Closing Manager
Shellie Vandeman Compliance Specialist
Cindy Wieck Administrative Assistant
Midwest Housing Equity Group 515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 www.mheginc.com