Page 1

Volume 12, Issue 2

November 2019

Staff Announcements Jennifer Niemier, Closing Manager

Trey Mendlik, Financial Analyst

Jennifer joined MHEG as a Closing Manager this past May in our Omaha office. She will work closely with the Acquisitions Managers to close our Funds’ investments in various developments. Her duties will include collecting and reviewing due diligence to ensure a timely closing of our investments. Jennifer has over 20+ years of paralegal experience and sits on the Sarpy County Habitat for Humanity Board of Directors. MHEG would also like to recognize several employees who reached their 5th and 10th service anniversary date in 2019. MHEG recognizes that dedicated employees are its most important asset. We are proud to have so many committed and experienced staff.

5 YEARS

10 YEARS Brooke Smith, Senior Asset Manager

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

Trey joined MHEG as Financial Analyst this past May in our Omaha office. His duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Trey is a recent graduate from the University of Nebraska at Lincoln, majoring in Business Administration & Finance.

Volume 12, Issue 2

Inside this Issue: Recent Highlights

1

CEO Update

2

Region Updates

2, 3

Property Spotlight

4

Government Affairs Update 4

We’re Hiring!!

Closed Acquisitions

4

Recent Events

5

MHEG & MHDF are looking to add associates to our team! For complete job descriptions and requirements, visit our website’s Employment page. To apply, email your resume to Keely McAleer.

Staff Updates

6

Upcoming Events

6

Monthly LIHTC Rates

MHEG - Acquisitions Manager (Omaha, NE)

Amanda Raak, Financial Analyst

Andrea Frymire, VP- Business Development Officer

Dana Oswald, Accounting Assistant

November 2019

July 2019

The Acquisitions Manager is responsible for underwriting equity investments in affordable housing developments financed with LIHTCs in compliance with MHEG’s 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. Together with our Business Development Officers, this individual also helps foster strong relationships with our various partners and potential partners.

AFR 2.50%

(L to R) Joshua Yurek (MHEG), along with Arch Icon’s staff Elizabeth Heistand, Dustin Crook, Darin Smith and Mindy Crook receive the award from Senator Chuck Grassley.

AFR 2.33% September 2019 30%PV 3.20% AFR 2.21% October 2019 30%PV 3.17% AFR 1.86%

Hensley Receives MHEG Pillar of Housing Award

November 2019 30%PV 3.17% 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 Act of 2015.

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

Portfolio Update

December

IFA Board Meeting: Dec. 4th Des Moines, IA - IFA Office

IFA Board Meeting: Jan. 8th Des Moines, IA - IFA Office

KHRC Board Meeting: Dec. 5th Topeka, KS - KDFA Board Room

KHRC Board Meeting: Jan. 9th Topeka, KS - KDFA Board Room

TDHCA Board Meeting: Jan. 16th TDHCA Board Meeting: Dec. 12th TDHCA Board Meeting: Nov. 7th Austin, TX - Capitol Extension Auditorium Austin, TX Capitol Extension Auditorium Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Jan. 23rd NIFA Board Meeting: Dec. 13th OHFA Board Meeting: Nov. 13th Denver, CO - CHFA Board Room Lincoln, NE NIFA Board Room Oklahoma City, OK - OHFA Office CHFA Board Meeting: Nov. 21st Denver, CO - CHFA Board Room

“Communities across the country continue to count on the work or organizations like our 2019 Edson Award winners to create affordable homes,” said AHTCC Executive Director Emily Cadik. “Affordable housing is needed in every part of the country.”

30%PV 3.21%

MHDF - Loan Administrator (Omaha, NE)

Upcoming Events IFA Board Meeting: Nov. 6th Des Moines, IA - IFA Office

Announced each year by the Affordable Housing Tax Credit Coalition (AHTCC) at an event on Capitol Hill that unites members of Congress, business and housing leaders, the award honors LIHTC developments that are strengthening communities, improving residents’ health and boosting economies in urban, suburban and rural areas across the country. Senator Chuck Grassley (R-IA), Chair of the Senate Finance Committee, presented the award to the development team.

August 2019

AFR 1.94%

November

In June, the Aberdeen Apartments received the Charles L. Edson Tax Credit Excellence Award. The Edson Awards recognize outstanding Low-Income Housing Tax Credit developments across the nation at the forefront of creating stronger, healthier communities. Aberdeen was included in the small metropolitan category.

Aberdeen Apartments was developed by Arch Icon Development Corp. MHEG Fund 48 LP is the investor. The historic adaptive re-use development transformed the Old Central High School Annex building into 46 multifamily rental units in Sioux City, Iowa.

30%PV 3.23%

The Loan Administrator is responsible for managing the day to day loan administration functions of MHDF. This position requires knowledge of, and experience in, loan and credit administration, as well as preparing reports. The Loan Administrator will report directly to the MHDF President.

January

Aberdeen Apartments Receives Edson Award

February

Developments

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

Units

KHRC Board Meeting: Feb. 6th Topeka, KS - KDFA Board Room TDHCA Board Meeting: Feb. 20th Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Feb. 27th Denver, CO - CHFA Board Room

574 18,370

Counties Represented

207

Cities Represented

259

Vacancy Percentage

5.43%*

Debt Coverage Ratio

1.85*

Information current as of 10/31/19 *Data compiled from 6/30/19 figures using stabilized developments only, vacancy percentage is using economic vacancy.

CHFA Board Meeting: Dec. 19th Denver, CO - CHFA Board Room

If you would like to receive our newsletter by email, go to our homepage to signup. For past issues of MHEG in a Minute check our website under News & Events.

SDHDA Board Meeting: Nov. 26th Pierre, SD - SDHDA Board Room

For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6

This past summer John Wiechmann presented Chris Hensley with the MHEG Pillar of Housing Award. The Pillar of Housing Award recognizes individuals who have not only had a significant impact on MHEG, but have shown vision, leadership and commitment to improving affordable housing. This award comes as Hensley steps away from her Chairman position on MHEG’s Board of Directors. Hensley was one of the initial members of the Iowa Equity Fund Management Committee, now known as the Northeast Operations & Investment Committee, when it was established in November 2001. She was instrumental in the founding and growth of MHEG’s Iowa Operations. Hensley joined the MHEG Board in 2010 and served as the Chairman for the past year. Her knowledge, service and leadership will be greatly missed. Hensley is the fifth recipient of the award.

Chris Hensley speaking at a press conference announcing the creation of the Iowa Equity Fund in April 2002.

2018 Annual Report Copies MHEG’s 2018 Annual Report “Under Every Roof, There Is A Story” was released in June. It features three separate resident stories and the impact affordable housing has had on their life. If you know of an individual that has a story to share about how affordable housing has changed their life, please let us know. To view the report online go to our News & Events page on our website. Hard copies are available, email Keely McAleer to request one. 1


Volume 12, Issue 2

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

CEO Update

Northeast Region Update

John Wiechmann Greetings Friends! The first snow has fallen in Omaha and as the end of the year is nearing, the memories of summer are fading (too fast for me!). So before they’re gone, let’s do a quick recap. It’s hard to believe, but in June we experienced our first ever rainout at our Annual Meeting and Golf Outing. A system that was supposed to move through the area relatively quickly stalled out right above the golf course, causing several hours of heavy rain. We appreciate everyone who came to the meeting and stayed for lunch! Even without the golf, it was still great to catch up with so many of you. The outing wasn’t only historic for its cancellation, but also because we’ve decided it will be MHEG’s last golf outing. I know, what a way to go out! Over the past two decades, this event has been a great opportunity bring our partners together. But as our footprint expanded to cover ten states, so did our network of partners expand. Going forward, we will focus on our state-specific appreciation dinners/luncheons (generally held in conjunction with the Housing Finance Agencies’ conferences or meetings). These will provide an opportunity for more local gatherings and better turn-out. We also recognized Chris Hensley this summer for her 18 years of service to MHEG (nine of them on MHEG’s Board of Directors and the last year as Board Chair). Chris played an enormous role in establishing the Iowa Equity Fund (as our Iowa operations

Scott Fitzpatrick was initially known). She was also instrumental in establishing Midwest Housing Development Fund, our lending arm. As many of you know, safe, decent and affordable housing has been a careerlong passion of Chris’s. The City of Des Moines would not have its robust housing platform but for her years of effort while serving on the City Council. Likewise, MHEG would not be where it is today without her passion, expertise and dedication to our mission. Chris - I cannot thank you enough for you time, commitment and service to MHEG! The colder weather and approaching holidays are an excellent reminder that what we all do truly matters. Creating safe, decent and affordable rental homes for individuals and families who may otherwise be without housing during the winter months is life changing for all involved. Helping families celebrate the holidays with a safe and warm affordable rental home is something to be proud of. It’s a great privilege to help positively impact on so many lives. Thank you to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for changing so many lives for a better tomorrow! We look forward to partnering with you again in 2020! All the best, John Wiechmann

Greetings partners and friends. As the saying goes, the only thing constant is change. We are seeing that in Kansas and Missouri. Kansas. Ryan Vincent has been appointed new Executive Director of the Kansas Housing Resources Corp., replacing Dennis Mesa. Dennis did an outstanding job for KHRC and affordable housing in Kansas. We wish him the best. Ryan has been KHRC’s in-house council for the past 15 years. We look forward to working with him. Also transitioning from KHRC is Fred Bentley, Director Rental Housing. Fred is a champion for affordable and workforce housing in Kansas. He’s respected, knowledgeable and known for being fair in his role. We wish him the best in his next professional adventure and thank him for his past 28 years of service. This past September, KHRC hosted their annual housing conference and presented their Ad Astra Awards. Two of MHEG’s partners received awards recognizing them for their outstanding service. Sophie George, past Executive Director of the Topeka Housing Authority, was honored with the Excellence in Housing Award for an individual. The Link at Hutchinson took home the group award for Excellence in Housing. The beautiful mixed-use development in downtown Hutchinson provides homes for seniors and residents with developmental disabilities. The Link was developed by Jack and Jay Manske, with TECH, Inc. as the managing member.

Kansas applications are due the first week of February. Missouri. Missouri applications were due in September. In business, I always want more than my fair share. We’ll see about that, but we did sponsor several deserving applications. I expect awards will be announced late November, early December. This round was Federal credits only. The legislature has not yet determined state tax credit funding levels. Hopefully, next session. All the best to you and your family this Holiday Season and for the coming year.

You may recall that I spoke about the recent formation of the Iowa Housing Partnership in our last issue. As we near the end of our first full year, I’d like to give you some updates. We currently have over 60 member organizations, including 19 charter memberships. Members of the IHP Board of Directors have given presentations to the Iowa Legislature as well as in several communities around the state. In addition, we were actively engaged in providing comments to the Iowa Finance Authority regarding the 2020 Qualified Allocation Plan. If you have not yet joined please do so. The stronger and more diverse our membership becomes, the more we can achieve! Find us on Facebook @iowahousingpartnership or feel free to contact me. Next, I’d like to provide some development updates. First, I’d like to congratulate Arch Icon Development on receiving the Affordable Housing Tax Credit Coalition’s Charles Edson Tax Credit Excellence Award in the Metropolitan Housing (Population 50,000300,000) Category for the Aberdeen Apartments in Sioux City (as mentioned on page 1). Arch Icon also recently completed the adaptive

re-use of The Everett School in Sioux City. Both are excellent examples of Historic Adaptive Re-use acquisitions! Community Housing Initiatives will be completing construction on three high quality acquisition/ rehabilitation Iowa developments in the next few months, including Sunset Apartments in Spencer, Penn Arch Icon celebrates the Everett School Oaks in North Liberty and North Bay Apartments with a ribbon cutting in Sioux Apartments in Fairfield. City, Iowa this past August. Lastly, Immanuel will complete construction on a new senior development in Council Bluffs in the first quarter of 2020, an excellent new affordable housing option for seniors in that community. We are honored to be a part of all these great developments. Happy Holidays!

Northwest Region Update 2019 is shaping up to be a great year for the Northwest Region thanks in large part to our partners who let us do what we do best. Thank you to our investor partners who trust us to invest their capital into properties that create safe, decent quality affordable rental homes for so many people. And thank you to our developer partners who have chosen to partner with us on their deals. Our success would not be possible without your support.

Pat Michaelis

MHEG again sponsored our annual dinner in conjunction with the conference. I was reluctant to begin our short program, as I very much appreciated seeing partners and friends enjoying the camaraderie filling the room. Thanks to all who attended.

Hello Friends,

Tom Stratman

Central Region Update

2

November 2019

We have been busy so far in 2019 with 11 closings, creating over 600 units of housing. Looking ahead to the fourth quarter, we expect to close an additional 5 deals bringing our total count for the year to just under 900 units in the Northwest region. Units will consist of both new construction and rehabilitations, including veteran’s housing, senior housing and family housing. This is what we are most proud of - being a part of creating homes for so many people. In between closings, we’ve enjoyed several opportunities to meet outside the office with our partners at groundbreakings, ribbon cuttings and housing conferences. In October, we attended the Housing Colorado conference in Keystone. Despite the snow it was a great conference!! At the end of October, we headed to Pierre for the South Dakota Housing Conference. Both organizations, Housing Colorado and South Dakota Housing Development Authority, put on informative and successful conferences. We always look forward to seeing our partners at these annual events and saying thank you in person. Have a wonderful holiday season, we look forward to working with you again in 2020.

South Region Update Andrea Frymire

Congratulations to all of the award winners in Arkansas, Texas and Oklahoma - Round 1! We look forward to working with you to expand affordable housing opportunities in our Region. Ad Astra Winners, Sophie George, past director of Topeka Housing Authority (above) and (below) Brenda Maxey, President of TECH, Inc, accepting for The Link at Hutchinson.

As a benefit to our partners, we continue to monitor and provide comments on QAP drafts in our region. With the passage of HB1411 by the State Legislature, the Oklahoma Affordable Housing Act is now applicable in all 77 counties across the state. The population cap is removed effective November 1, 2019. Special thanks to the Oklahoma Coalition for Affordable Housing for commissioning the economic impact of this vital funding resource. We continue to monitor local legislation affecting aesthetic design that increases construction costs. As we continue to have turn over in the state legislature, it is imperative we bring new Legislators up to speed on the need for housing in Oklahoma, as well as the importance of using the state affordable housing credit to create additional housing for all Oklahomans. We enjoy meeting with local and state officials and helping assist municipalities in bringing more housing to their community.

I’d like to take a moment and recognize Bryan Scoggins, new Executive Director at the Arkansas Development Finance Agency, as well as Bobby Wilkinson, new Executive Director at the Texas Department of Housing and Community Affairs. Running a state housing agency is no small feat and we enjoy our partnership and collaboration across all of our states. Reminder that the annual Midwest Housing Affordable Housing luncheon will be on Wednesday, November 13, 2019, at Top Golf, immediately following the OHFA Board of Trustees Meeting. Please contact Lisa Bryan to RSVP. We appreciate all our partners and thank you for the opportunity to serve your needs in 2019. We look forward to working with you in 2020. 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 12, Issue 2

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

CEO Update

Northeast Region Update

John Wiechmann Greetings Friends! The first snow has fallen in Omaha and as the end of the year is nearing, the memories of summer are fading (too fast for me!). So before they’re gone, let’s do a quick recap. It’s hard to believe, but in June we experienced our first ever rainout at our Annual Meeting and Golf Outing. A system that was supposed to move through the area relatively quickly stalled out right above the golf course, causing several hours of heavy rain. We appreciate everyone who came to the meeting and stayed for lunch! Even without the golf, it was still great to catch up with so many of you. The outing wasn’t only historic for its cancellation, but also because we’ve decided it will be MHEG’s last golf outing. I know, what a way to go out! Over the past two decades, this event has been a great opportunity bring our partners together. But as our footprint expanded to cover ten states, so did our network of partners expand. Going forward, we will focus on our state-specific appreciation dinners/luncheons (generally held in conjunction with the Housing Finance Agencies’ conferences or meetings). These will provide an opportunity for more local gatherings and better turn-out. We also recognized Chris Hensley this summer for her 18 years of service to MHEG (nine of them on MHEG’s Board of Directors and the last year as Board Chair). Chris played an enormous role in establishing the Iowa Equity Fund (as our Iowa operations

Scott Fitzpatrick was initially known). She was also instrumental in establishing Midwest Housing Development Fund, our lending arm. As many of you know, safe, decent and affordable housing has been a careerlong passion of Chris’s. The City of Des Moines would not have its robust housing platform but for her years of effort while serving on the City Council. Likewise, MHEG would not be where it is today without her passion, expertise and dedication to our mission. Chris - I cannot thank you enough for you time, commitment and service to MHEG! The colder weather and approaching holidays are an excellent reminder that what we all do truly matters. Creating safe, decent and affordable rental homes for individuals and families who may otherwise be without housing during the winter months is life changing for all involved. Helping families celebrate the holidays with a safe and warm affordable rental home is something to be proud of. It’s a great privilege to help positively impact on so many lives. Thank you to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for changing so many lives for a better tomorrow! We look forward to partnering with you again in 2020! All the best, John Wiechmann

Greetings partners and friends. As the saying goes, the only thing constant is change. We are seeing that in Kansas and Missouri. Kansas. Ryan Vincent has been appointed new Executive Director of the Kansas Housing Resources Corp., replacing Dennis Mesa. Dennis did an outstanding job for KHRC and affordable housing in Kansas. We wish him the best. Ryan has been KHRC’s in-house council for the past 15 years. We look forward to working with him. Also transitioning from KHRC is Fred Bentley, Director Rental Housing. Fred is a champion for affordable and workforce housing in Kansas. He’s respected, knowledgeable and known for being fair in his role. We wish him the best in his next professional adventure and thank him for his past 28 years of service. This past September, KHRC hosted their annual housing conference and presented their Ad Astra Awards. Two of MHEG’s partners received awards recognizing them for their outstanding service. Sophie George, past Executive Director of the Topeka Housing Authority, was honored with the Excellence in Housing Award for an individual. The Link at Hutchinson took home the group award for Excellence in Housing. The beautiful mixed-use development in downtown Hutchinson provides homes for seniors and residents with developmental disabilities. The Link was developed by Jack and Jay Manske, with TECH, Inc. as the managing member.

Kansas applications are due the first week of February. Missouri. Missouri applications were due in September. In business, I always want more than my fair share. We’ll see about that, but we did sponsor several deserving applications. I expect awards will be announced late November, early December. This round was Federal credits only. The legislature has not yet determined state tax credit funding levels. Hopefully, next session. All the best to you and your family this Holiday Season and for the coming year.

You may recall that I spoke about the recent formation of the Iowa Housing Partnership in our last issue. As we near the end of our first full year, I’d like to give you some updates. We currently have over 60 member organizations, including 19 charter memberships. Members of the IHP Board of Directors have given presentations to the Iowa Legislature as well as in several communities around the state. In addition, we were actively engaged in providing comments to the Iowa Finance Authority regarding the 2020 Qualified Allocation Plan. If you have not yet joined please do so. The stronger and more diverse our membership becomes, the more we can achieve! Find us on Facebook @iowahousingpartnership or feel free to contact me. Next, I’d like to provide some development updates. First, I’d like to congratulate Arch Icon Development on receiving the Affordable Housing Tax Credit Coalition’s Charles Edson Tax Credit Excellence Award in the Metropolitan Housing (Population 50,000300,000) Category for the Aberdeen Apartments in Sioux City (as mentioned on page 1). Arch Icon also recently completed the adaptive

re-use of The Everett School in Sioux City. Both are excellent examples of Historic Adaptive Re-use acquisitions! Community Housing Initiatives will be completing construction on three high quality acquisition/ rehabilitation Iowa developments in the next few months, including Sunset Apartments in Spencer, Penn Arch Icon celebrates the Everett School Oaks in North Liberty and North Bay Apartments with a ribbon cutting in Sioux Apartments in Fairfield. City, Iowa this past August. Lastly, Immanuel will complete construction on a new senior development in Council Bluffs in the first quarter of 2020, an excellent new affordable housing option for seniors in that community. We are honored to be a part of all these great developments. Happy Holidays!

Northwest Region Update 2019 is shaping up to be a great year for the Northwest Region thanks in large part to our partners who let us do what we do best. Thank you to our investor partners who trust us to invest their capital into properties that create safe, decent quality affordable rental homes for so many people. And thank you to our developer partners who have chosen to partner with us on their deals. Our success would not be possible without your support.

Pat Michaelis

MHEG again sponsored our annual dinner in conjunction with the conference. I was reluctant to begin our short program, as I very much appreciated seeing partners and friends enjoying the camaraderie filling the room. Thanks to all who attended.

Hello Friends,

Tom Stratman

Central Region Update

2

November 2019

We have been busy so far in 2019 with 11 closings, creating over 600 units of housing. Looking ahead to the fourth quarter, we expect to close an additional 5 deals bringing our total count for the year to just under 900 units in the Northwest region. Units will consist of both new construction and rehabilitations, including veteran’s housing, senior housing and family housing. This is what we are most proud of - being a part of creating homes for so many people. In between closings, we’ve enjoyed several opportunities to meet outside the office with our partners at groundbreakings, ribbon cuttings and housing conferences. In October, we attended the Housing Colorado conference in Keystone. Despite the snow it was a great conference!! At the end of October, we headed to Pierre for the South Dakota Housing Conference. Both organizations, Housing Colorado and South Dakota Housing Development Authority, put on informative and successful conferences. We always look forward to seeing our partners at these annual events and saying thank you in person. Have a wonderful holiday season, we look forward to working with you again in 2020.

South Region Update Andrea Frymire

Congratulations to all of the award winners in Arkansas, Texas and Oklahoma - Round 1! We look forward to working with you to expand affordable housing opportunities in our Region. Ad Astra Winners, Sophie George, past director of Topeka Housing Authority (above) and (below) Brenda Maxey, President of TECH, Inc, accepting for The Link at Hutchinson.

As a benefit to our partners, we continue to monitor and provide comments on QAP drafts in our region. With the passage of HB1411 by the State Legislature, the Oklahoma Affordable Housing Act is now applicable in all 77 counties across the state. The population cap is removed effective November 1, 2019. Special thanks to the Oklahoma Coalition for Affordable Housing for commissioning the economic impact of this vital funding resource. We continue to monitor local legislation affecting aesthetic design that increases construction costs. As we continue to have turn over in the state legislature, it is imperative we bring new Legislators up to speed on the need for housing in Oklahoma, as well as the importance of using the state affordable housing credit to create additional housing for all Oklahomans. We enjoy meeting with local and state officials and helping assist municipalities in bringing more housing to their community.

I’d like to take a moment and recognize Bryan Scoggins, new Executive Director at the Arkansas Development Finance Agency, as well as Bobby Wilkinson, new Executive Director at the Texas Department of Housing and Community Affairs. Running a state housing agency is no small feat and we enjoy our partnership and collaboration across all of our states. Reminder that the annual Midwest Housing Affordable Housing luncheon will be on Wednesday, November 13, 2019, at Top Golf, immediately following the OHFA Board of Trustees Meeting. Please contact Lisa Bryan to RSVP. We appreciate all our partners and thank you for the opportunity to serve your needs in 2019. We look forward to working with you in 2020. 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 12, Issue 2

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

Property Spotlight: Tammen Hall - Denver, Colorado

Closed Acquisitions

MGL Partners and Solvera Developers held a grand opening for Tammen Hall Senior Affordable Living on October 3rd in Denver, Colorado.

LIHTC DEVELOPMENTS

Built in the 1930s, Tammen Hall was originally a dormitory for nurses who worked at the nearby Children’s Hospital. It was named after Harry Tammen, the first publisher of The Denver Post. The building was later converted into administrative offices for the hospital and then eventually became vacant once the offices relocated in 2007.

OPG Maplewood Partners II, LLC

Today, the development provides 49 units for seniors 62+. The renovation complied with National Park Service standards and restored the historic entry and foyer, including molded ceilings, terrazzo floors, a carved fireplace, and a five-panel wall mural by Allen True that was original to the building. The property also offers an eighth-floor rooftop desk with views of the downtown skyline and mountains. MHEG is proud to be a partner of this historic landmark.

Tammen Hall Senior Living Apartments General Partner

Tammen Hall Manager, LLC

Developer

Solvera Developers LLC

Property Manager

Silva Markham Partners

Gross Equity Invested $10.275 million

Government Affairs Update

Joshua Yurek

In September, a continuing resolution (CR) was passed to fund the government through November 21. While Congress hasn’t finished any of the 12 annual spending bills, lawmakers are still trying to strike a compromise to move forward on appropriations for fiscal 2020. As we near year-end, Congress must pass a bill to keep the government funded beyond November 21. In addition, there are ongoing conversations in both chambers about trying to include key tax priorities, such as tax extenders or technical corrections to the Tax Cuts and Jobs Act, to a year-end spending bill. However, the House impeachment inquiry of President Trump complicates the legislative process as Congress seeks to fund the government and potentially attach any year-end tax legislation. This includes trying to add key Also, in June, the Affordable Housing Credit Improvement Act (AHCIA) provisions from the AHCIA to strengthen the Housing Credit. (S. 1703 and H.R. 3077) was reintroduced for consideration in the 116th Congress. The legislation was introduced by Senators Maria Cantwell (D- During the August congressional recess, we helped organize WA), Todd Young (R-IN), Ron Wyden (D-OR), Johnny Isakson (R-GA), and successful grand opening events with Senator Joni Ernst (R-IA) Representatives Suzan DelBene (D-WA-1), Kenny Marchant (R-TX-24), and Arch Icon Development at Everett Apartments in Sioux City, IA; Don Beyer (D-VA-8), and Jackie Walorski (R-IN-2). The AHCIA is estimated Rep. Sharice Davids (D-KS-3) and Wheatland Investments at Bethel to incentivize the building of over 500,000 affordable homes over the Estate of Gardner IV in Gardner, KS; and Rep. Steve Watkins (R-KSnext decade. The legislation reforms provisions of the LIHTC program by 2) and the Topeka Housing Authority at Ybarra Place II in Topeka, increasing the Housing Credit allocation and making the Housing Credit KS. In addition, during the October recess, Rep. Dusty Johnson a more effective tool, particularly in rural areas, to encourage additional (R-SD) participated in a grand opening event for Midtown Heights development. The legislation currently has strong bipartisan support, (Lloyd Companies) in Sioux Falls, SD. including 152 cosponsors in the House and 27 cosponsors in the Senate. Here are the members within the MHEG footprint that have cosponsored Members of Congress have often stated that they find great value in visiting affordable housing properties. It is especially important for the AHCIA legislation to date: them to directly hear personal stories from residents as we continue • Senator Cory Gardner (R-CO) • Rep. Don Bacon (R-NE-2) advocate for additional affordable housing resources in Congress. • Senator Michael Bennet (D-CO) • Rep. Jeff Fortenberry (R-NE-1) When you are a few months out from construction completion, and • Senator Kevin Cramer (R-ND) • Rep. Tom Cole (R-OK-4) begin thinking about showing off the finished product, please don’t • Senator Amy Klobuchar (D-MN) • Rep. Frank Lucas (R-OK-3) hesitate to reach out to me. I would be happy to help coordinate a • Senator Tina Smith (D-MN) • Rep. Dusty Johnson (R-SD-At Large) ribbon-cutting event with your Congressional delegation and their • Rep. Joe Neguse (D-CO-2) • Rep. Ron Estes (R-KS-4) staff to further demonstrate how effective the Housing Credit is in • Rep. Betty McCollum (D-MN-4) • Rep. Pete Stauber (R-MN-8) providing affordable housing in their district and state. In June, the Affordable Housing Tax Credit Coalition (AHTCC) announced that the Aberdeen Apartments in Sioux City, Iowa, were selected as a recipient of the Charles L. Edson Tax Credit Excellence Award, which recognizes the best in affordable housing. MHEG and our partners at Arch Icon Development were presented the Edson Award by Senate Finance Chairman Grassley (R-IA). Since the Senate Finance Committee has primary jurisdiction over the Housing Credit, it was significant to have Chairman Grassley at the event. He delivered positive remarks about the Aberdeen project and the importance of affordable housing developments like this is rural communities. The Aberdeen Apartments, formerly the Central High School Annex, is a historic adaptive re-use project by Arch Icon Development and syndicated by MHEG to provide 46 units of affordable rental housing near downtown Sioux City.

• Rep. Roger Marshall (R-KS-1) • Rep. Steve Watkins (R-KS-2)

4

• Rep. Kendra Horn (D-OK-5)

November 2019

CHI North Bay, LLLP Villas at Crystal Court III 4834 S. 23rd Street, LLC DeAnza Redevelopment, LP Technology Heights II Apartments

FUND

CITY / STATE

UNITS DATE

MHEG 50

Fairfield, IA

MHEG 50

Wichita Falls, TX

36

April

Overland Property Group

MHEG OZ I S. Sioux City, NE

36

April

Excel Development Group

44

April

Arch Icon Development Corp

36

May

William Simpson / Sleeping Indian, LLC

39

May

C.R. Lloyd Associates

MHEG 50

Omaha, Nebraska

MHEG 50

Poncha Springs, CO

MHEG OZ I Sioux Falls, SD

24

April

DEVELOPER Community Housing Initiatives

Wildwood, LLC

MHEG 50

Sayre, OK

12

May

Excel Development Group

Fort Scott Lofts, LLC

MHEG 50

Fort Scott, KS

25

June

Flint Hills Development Group

Goddard Senior Homes, LLC

MHEG 50

Goddard, KS

24

June

Excel Development Group

Epworth Senior Residences, LLC

MHEG 50

Hays, KS

90

June

Investment Resources Corp

Keeth Village Crocker LP

MHEG 50

Crocker, MO

16

July

HRM Development

Osborne View Estates, LLC

MHEG 50

Hastings, NE

30

July

Mesner Development Co

Stillwater Springs, LLC

MHEG 50

Stillwater, OK

120

July

LW Development

OPG Canyon Lake Partners, LLC

MHEG 50

Canyon Lake, TX

35

July

Overland Property Group

Westport Village Marshall LP

MHEG 50

Marshall, MO

24

August

Missouri Valley Community Action Agency

Columbus Cherry Creek, LLC

MHEG 50

Columbus, NE

32

August

Mesner Development Co

The Residences at Greenway LP

MHEG 51

Sioux Falls, SD

42

August

Affordable Housing Solutions

MRES Cedarwood Holdings, LP

MHEG 51

Omaha, NE

150

September Metonic Real Estate Solutions

MHEG OZ I Omaha, NE

60

September Brinshore Development & 75N Revitalization Co

Highlander Phase III, LLC Inola Villa, Limited Partnership

MHEG 51

Inola, OK

24

October

Green Companies Development Group

Victory Apartments, II - Omaha, LLC

MHEG 50

Omaha, NE

60

October

Burlington Capital Real Estate, LLC

Lindsborg Place LLC

MHEG 51

Lindsborg, KS

8

October

Vintage Construction

MHEG 51

Claremore, OK

54

October

Midcontinent Equity Holdings

Claremore Estates, LP

Total Units Closed April - October

1,021

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

Mesner Development Co. and partners celebrate the grand opening of Ybarra Place in Topeka, Kansas, on Aug. 26th, 2019.

Jasmine Court, developed by Excel Development Group, held a ribbon cutting on Sep. 19th, 2019, in Cushing, Oklahoma.

Canterbury Estates and the Sidney Housing Authority held a ribbon cutting on Oct. 30th, 2019, in Sidney, Nebraska.

Partners of Eastridge Villas, along with the Mesner Development Co, participate in a ribbon cutting on Oct. 17th, 2019, in Scott City, Kansas.

Metro Lutheran Ministries and partners participate in a groundbreaking ceremony for Eileen’s Place in Kansas City, Kansas on Oct. 24th, 2019.

Vintage Construction and KETCH celebrated Rushpointe II with a ribbon cutting on Jun. 25th, 2019, in Wichita, Kansas.

5


Volume 12, Issue 2

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

Property Spotlight: Tammen Hall - Denver, Colorado

Closed Acquisitions

MGL Partners and Solvera Developers held a grand opening for Tammen Hall Senior Affordable Living on October 3rd in Denver, Colorado.

LIHTC DEVELOPMENTS

Built in the 1930s, Tammen Hall was originally a dormitory for nurses who worked at the nearby Children’s Hospital. It was named after Harry Tammen, the first publisher of The Denver Post. The building was later converted into administrative offices for the hospital and then eventually became vacant once the offices relocated in 2007.

OPG Maplewood Partners II, LLC

Today, the development provides 49 units for seniors 62+. The renovation complied with National Park Service standards and restored the historic entry and foyer, including molded ceilings, terrazzo floors, a carved fireplace, and a five-panel wall mural by Allen True that was original to the building. The property also offers an eighth-floor rooftop desk with views of the downtown skyline and mountains. MHEG is proud to be a partner of this historic landmark.

Tammen Hall Senior Living Apartments General Partner

Tammen Hall Manager, LLC

Developer

Solvera Developers LLC

Property Manager

Silva Markham Partners

Gross Equity Invested $10.275 million

Government Affairs Update

Joshua Yurek

In September, a continuing resolution (CR) was passed to fund the government through November 21. While Congress hasn’t finished any of the 12 annual spending bills, lawmakers are still trying to strike a compromise to move forward on appropriations for fiscal 2020. As we near year-end, Congress must pass a bill to keep the government funded beyond November 21. In addition, there are ongoing conversations in both chambers about trying to include key tax priorities, such as tax extenders or technical corrections to the Tax Cuts and Jobs Act, to a year-end spending bill. However, the House impeachment inquiry of President Trump complicates the legislative process as Congress seeks to fund the government and potentially attach any year-end tax legislation. This includes trying to add key Also, in June, the Affordable Housing Credit Improvement Act (AHCIA) provisions from the AHCIA to strengthen the Housing Credit. (S. 1703 and H.R. 3077) was reintroduced for consideration in the 116th Congress. The legislation was introduced by Senators Maria Cantwell (D- During the August congressional recess, we helped organize WA), Todd Young (R-IN), Ron Wyden (D-OR), Johnny Isakson (R-GA), and successful grand opening events with Senator Joni Ernst (R-IA) Representatives Suzan DelBene (D-WA-1), Kenny Marchant (R-TX-24), and Arch Icon Development at Everett Apartments in Sioux City, IA; Don Beyer (D-VA-8), and Jackie Walorski (R-IN-2). The AHCIA is estimated Rep. Sharice Davids (D-KS-3) and Wheatland Investments at Bethel to incentivize the building of over 500,000 affordable homes over the Estate of Gardner IV in Gardner, KS; and Rep. Steve Watkins (R-KSnext decade. The legislation reforms provisions of the LIHTC program by 2) and the Topeka Housing Authority at Ybarra Place II in Topeka, increasing the Housing Credit allocation and making the Housing Credit KS. In addition, during the October recess, Rep. Dusty Johnson a more effective tool, particularly in rural areas, to encourage additional (R-SD) participated in a grand opening event for Midtown Heights development. The legislation currently has strong bipartisan support, (Lloyd Companies) in Sioux Falls, SD. including 152 cosponsors in the House and 27 cosponsors in the Senate. Here are the members within the MHEG footprint that have cosponsored Members of Congress have often stated that they find great value in visiting affordable housing properties. It is especially important for the AHCIA legislation to date: them to directly hear personal stories from residents as we continue • Senator Cory Gardner (R-CO) • Rep. Don Bacon (R-NE-2) advocate for additional affordable housing resources in Congress. • Senator Michael Bennet (D-CO) • Rep. Jeff Fortenberry (R-NE-1) When you are a few months out from construction completion, and • Senator Kevin Cramer (R-ND) • Rep. Tom Cole (R-OK-4) begin thinking about showing off the finished product, please don’t • Senator Amy Klobuchar (D-MN) • Rep. Frank Lucas (R-OK-3) hesitate to reach out to me. I would be happy to help coordinate a • Senator Tina Smith (D-MN) • Rep. Dusty Johnson (R-SD-At Large) ribbon-cutting event with your Congressional delegation and their • Rep. Joe Neguse (D-CO-2) • Rep. Ron Estes (R-KS-4) staff to further demonstrate how effective the Housing Credit is in • Rep. Betty McCollum (D-MN-4) • Rep. Pete Stauber (R-MN-8) providing affordable housing in their district and state. In June, the Affordable Housing Tax Credit Coalition (AHTCC) announced that the Aberdeen Apartments in Sioux City, Iowa, were selected as a recipient of the Charles L. Edson Tax Credit Excellence Award, which recognizes the best in affordable housing. MHEG and our partners at Arch Icon Development were presented the Edson Award by Senate Finance Chairman Grassley (R-IA). Since the Senate Finance Committee has primary jurisdiction over the Housing Credit, it was significant to have Chairman Grassley at the event. He delivered positive remarks about the Aberdeen project and the importance of affordable housing developments like this is rural communities. The Aberdeen Apartments, formerly the Central High School Annex, is a historic adaptive re-use project by Arch Icon Development and syndicated by MHEG to provide 46 units of affordable rental housing near downtown Sioux City.

• Rep. Roger Marshall (R-KS-1) • Rep. Steve Watkins (R-KS-2)

4

• Rep. Kendra Horn (D-OK-5)

November 2019

CHI North Bay, LLLP Villas at Crystal Court III 4834 S. 23rd Street, LLC DeAnza Redevelopment, LP Technology Heights II Apartments

FUND

CITY / STATE

UNITS DATE

MHEG 50

Fairfield, IA

MHEG 50

Wichita Falls, TX

36

April

Overland Property Group

MHEG OZ I S. Sioux City, NE

36

April

Excel Development Group

44

April

Arch Icon Development Corp

36

May

William Simpson / Sleeping Indian, LLC

39

May

C.R. Lloyd Associates

MHEG 50

Omaha, Nebraska

MHEG 50

Poncha Springs, CO

MHEG OZ I Sioux Falls, SD

24

April

DEVELOPER Community Housing Initiatives

Wildwood, LLC

MHEG 50

Sayre, OK

12

May

Excel Development Group

Fort Scott Lofts, LLC

MHEG 50

Fort Scott, KS

25

June

Flint Hills Development Group

Goddard Senior Homes, LLC

MHEG 50

Goddard, KS

24

June

Excel Development Group

Epworth Senior Residences, LLC

MHEG 50

Hays, KS

90

June

Investment Resources Corp

Keeth Village Crocker LP

MHEG 50

Crocker, MO

16

July

HRM Development

Osborne View Estates, LLC

MHEG 50

Hastings, NE

30

July

Mesner Development Co

Stillwater Springs, LLC

MHEG 50

Stillwater, OK

120

July

LW Development

OPG Canyon Lake Partners, LLC

MHEG 50

Canyon Lake, TX

35

July

Overland Property Group

Westport Village Marshall LP

MHEG 50

Marshall, MO

24

August

Missouri Valley Community Action Agency

Columbus Cherry Creek, LLC

MHEG 50

Columbus, NE

32

August

Mesner Development Co

The Residences at Greenway LP

MHEG 51

Sioux Falls, SD

42

August

Affordable Housing Solutions

MRES Cedarwood Holdings, LP

MHEG 51

Omaha, NE

150

September Metonic Real Estate Solutions

MHEG OZ I Omaha, NE

60

September Brinshore Development & 75N Revitalization Co

Highlander Phase III, LLC Inola Villa, Limited Partnership

MHEG 51

Inola, OK

24

October

Green Companies Development Group

Victory Apartments, II - Omaha, LLC

MHEG 50

Omaha, NE

60

October

Burlington Capital Real Estate, LLC

Lindsborg Place LLC

MHEG 51

Lindsborg, KS

8

October

Vintage Construction

MHEG 51

Claremore, OK

54

October

Midcontinent Equity Holdings

Claremore Estates, LP

Total Units Closed April - October

1,021

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

Mesner Development Co. and partners celebrate the grand opening of Ybarra Place in Topeka, Kansas, on Aug. 26th, 2019.

Jasmine Court, developed by Excel Development Group, held a ribbon cutting on Sep. 19th, 2019, in Cushing, Oklahoma.

Canterbury Estates and the Sidney Housing Authority held a ribbon cutting on Oct. 30th, 2019, in Sidney, Nebraska.

Partners of Eastridge Villas, along with the Mesner Development Co, participate in a ribbon cutting on Oct. 17th, 2019, in Scott City, Kansas.

Metro Lutheran Ministries and partners participate in a groundbreaking ceremony for Eileen’s Place in Kansas City, Kansas on Oct. 24th, 2019.

Vintage Construction and KETCH celebrated Rushpointe II with a ribbon cutting on Jun. 25th, 2019, in Wichita, Kansas.

5


Volume 12, Issue 2

November 2019

Staff Announcements Jennifer Niemier, Closing Manager

Trey Mendlik, Financial Analyst

Jennifer joined MHEG as a Closing Manager this past May in our Omaha office. She will work closely with the Acquisitions Managers to close our Funds’ investments in various developments. Her duties will include collecting and reviewing due diligence to ensure a timely closing of our investments. Jennifer has over 20+ years of paralegal experience and sits on the Sarpy County Habitat for Humanity Board of Directors. MHEG would also like to recognize several employees who reached their 5th and 10th service anniversary date in 2019. MHEG recognizes that dedicated employees are its most important asset. We are proud to have so many committed and experienced staff.

5 YEARS

10 YEARS Brooke Smith, Senior Asset Manager

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

Trey joined MHEG as Financial Analyst this past May in our Omaha office. His duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Trey is a recent graduate from the University of Nebraska at Lincoln, majoring in Business Administration & Finance.

Volume 12, Issue 2

Inside this Issue: Recent Highlights

1

CEO Update

2

Region Updates

2, 3

Property Spotlight

4

Government Affairs Update 4

We’re Hiring!!

Closed Acquisitions

4

Recent Events

5

MHEG & MHDF are looking to add associates to our team! For complete job descriptions and requirements, visit our website’s Employment page. To apply, email your resume to Keely McAleer.

Staff Updates

6

Upcoming Events

6

Monthly LIHTC Rates

MHEG - Acquisitions Manager (Omaha, NE)

Amanda Raak, Financial Analyst

Andrea Frymire, VP- Business Development Officer

Dana Oswald, Accounting Assistant

November 2019

July 2019

The Acquisitions Manager is responsible for underwriting equity investments in affordable housing developments financed with LIHTCs in compliance with MHEG’s 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. Together with our Business Development Officers, this individual also helps foster strong relationships with our various partners and potential partners.

AFR 2.50%

(L to R) Joshua Yurek (MHEG), along with Arch Icon’s staff Elizabeth Heistand, Dustin Crook, Darin Smith and Mindy Crook receive the award from Senator Chuck Grassley.

AFR 2.33% September 2019 30%PV 3.20% AFR 2.21% October 2019 30%PV 3.17% AFR 1.86%

Hensley Receives MHEG Pillar of Housing Award

November 2019 30%PV 3.17% 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 Act of 2015.

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

Portfolio Update

December

IFA Board Meeting: Dec. 4th Des Moines, IA - IFA Office

IFA Board Meeting: Jan. 8th Des Moines, IA - IFA Office

KHRC Board Meeting: Dec. 5th Topeka, KS - KDFA Board Room

KHRC Board Meeting: Jan. 9th Topeka, KS - KDFA Board Room

TDHCA Board Meeting: Jan. 16th TDHCA Board Meeting: Dec. 12th TDHCA Board Meeting: Nov. 7th Austin, TX - Capitol Extension Auditorium Austin, TX Capitol Extension Auditorium Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Jan. 23rd NIFA Board Meeting: Dec. 13th OHFA Board Meeting: Nov. 13th Denver, CO - CHFA Board Room Lincoln, NE NIFA Board Room Oklahoma City, OK - OHFA Office CHFA Board Meeting: Nov. 21st Denver, CO - CHFA Board Room

“Communities across the country continue to count on the work or organizations like our 2019 Edson Award winners to create affordable homes,” said AHTCC Executive Director Emily Cadik. “Affordable housing is needed in every part of the country.”

30%PV 3.21%

MHDF - Loan Administrator (Omaha, NE)

Upcoming Events IFA Board Meeting: Nov. 6th Des Moines, IA - IFA Office

Announced each year by the Affordable Housing Tax Credit Coalition (AHTCC) at an event on Capitol Hill that unites members of Congress, business and housing leaders, the award honors LIHTC developments that are strengthening communities, improving residents’ health and boosting economies in urban, suburban and rural areas across the country. Senator Chuck Grassley (R-IA), Chair of the Senate Finance Committee, presented the award to the development team.

August 2019

AFR 1.94%

November

In June, the Aberdeen Apartments received the Charles L. Edson Tax Credit Excellence Award. The Edson Awards recognize outstanding Low-Income Housing Tax Credit developments across the nation at the forefront of creating stronger, healthier communities. Aberdeen was included in the small metropolitan category.

Aberdeen Apartments was developed by Arch Icon Development Corp. MHEG Fund 48 LP is the investor. The historic adaptive re-use development transformed the Old Central High School Annex building into 46 multifamily rental units in Sioux City, Iowa.

30%PV 3.23%

The Loan Administrator is responsible for managing the day to day loan administration functions of MHDF. This position requires knowledge of, and experience in, loan and credit administration, as well as preparing reports. The Loan Administrator will report directly to the MHDF President.

January

Aberdeen Apartments Receives Edson Award

February

Developments

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

Units

KHRC Board Meeting: Feb. 6th Topeka, KS - KDFA Board Room TDHCA Board Meeting: Feb. 20th Austin, TX - Capitol Extension Auditorium CHFA Board Meeting: Feb. 27th Denver, CO - CHFA Board Room

574 18,370

Counties Represented

207

Cities Represented

259

Vacancy Percentage

5.43%*

Debt Coverage Ratio

1.85*

Information current as of 10/31/19 *Data compiled from 6/30/19 figures using stabilized developments only, vacancy percentage is using economic vacancy.

CHFA Board Meeting: Dec. 19th Denver, CO - CHFA Board Room

If you would like to receive our newsletter by email, go to our homepage to signup. For past issues of MHEG in a Minute check our website under News & Events.

SDHDA Board Meeting: Nov. 26th Pierre, SD - SDHDA Board Room

For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6

This past summer John Wiechmann presented Chris Hensley with the MHEG Pillar of Housing Award. The Pillar of Housing Award recognizes individuals who have not only had a significant impact on MHEG, but have shown vision, leadership and commitment to improving affordable housing. This award comes as Hensley steps away from her Chairman position on MHEG’s Board of Directors. Hensley was one of the initial members of the Iowa Equity Fund Management Committee, now known as the Northeast Operations & Investment Committee, when it was established in November 2001. She was instrumental in the founding and growth of MHEG’s Iowa Operations. Hensley joined the MHEG Board in 2010 and served as the Chairman for the past year. Her knowledge, service and leadership will be greatly missed. Hensley is the fifth recipient of the award.

Chris Hensley speaking at a press conference announcing the creation of the Iowa Equity Fund in April 2002.

2018 Annual Report Copies MHEG’s 2018 Annual Report “Under Every Roof, There Is A Story” was released in June. It features three separate resident stories and the impact affordable housing has had on their life. If you know of an individual that has a story to share about how affordable housing has changed their life, please let us know. To view the report online go to our News & Events page on our website. Hard copies are available, email Keely McAleer to request one. 1

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