2020 MHEG Annual Report

Resilience MHEG ANNUAL REPORT

2020

Resilience re•sil•ience

noun 1. the capacity to recover quickly from difficulties; toughness.

2. the ability of a substance or object to spring back into shape; elasticity

Contents Message from our President

1

MHEG Portfolio Summary

3

2020 Developments

5

Rita’s Story

7

Equity Summary

9

Board of Directors & Committee Members

10

MHEG Staff

11

Message from the President & CEO Greetings Friends! As I look back on 2020 and all that we overcame and accomplished the one word that best embodies 2020 is RESILIENT! Resilient partners, resilient investors, resilient developers and sponsors, resilient contractors, resilient property managers, resilient residents and our own resilient team. It’s been just over a year since the pandemic began and the world changed. It’s the worst health crisis in 100 years and worst economic crisis in over a decade. The economic and social disruption will be felt for a long time to come. But we adapted, tried to stay safe and worked harder to ensure our residents had a safe, decent and affordable place to call home. We all came together to Change Lives For A Better Tomorrow!

In 2020, we raised just under $200 million in new equity commitments and closed investments in 36 new developments, helping finance over 1,400 units of quality affordable housing. Together with you, 27 new developments reached construction completion, creating almost 1,000 safe, decent and affordable units for even more individuals and families. Your ability to adapt to the many new regulations and safety procedures kept these developments moving forward.

Operationally, the frequent communication and resource sharing allowed us all to keep our residents safe and healthy in their homes. 2020 required true partnership to achieve all this – partnership that you provided. When we work together, it makes everyone stronger. And 2020 demonstrated that to be a true statement.

Looking ahead at 2021, many challenges remain. The effects of the pandemic on poverty, education, long-term health, economic opportunity and society at

large will continue. These challenges drive our passion to provide even more safe, decent affordable housing. We look forward to continuing our existing partnerships and beginning new ones this year.

Of course, none of these accomplishments would be possible without all of our great partners. Thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials. I especially want to thank the MHEG team for their continued efforts and motivation, for their ability to deliver results during this unprecedented time and for their resiliency.

Thank you for taking the time to read our 2020 Annual Report. We look forward to Changing Lives for a Better Tomorrow in 2021!

John J. Wiechmann President/CEO

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2020 Portfolio Summary 25,000 units

Breakdown of Development Type

20,000 units

multifamily age restricted

34%

20,421 units

43%

single family

9%

special needs

14% 15,000 units

10,000 units

5,000 units

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 2019 2020

MHEG TOTAL

3

ARKANSAS

COLORADO

IOWA

KANSAS

MINNESOTA

MISSOURI

Developments

626

10

16

80

157

4

32

Housing Units

20,421

456

1,361

2,773

4,513

148

1,498

Counties

224

10

11

28

51

4

24

Cities

278

10

12

35

71

4

25

Development Status operational

73%

lease-up construction disposed

18%

8%1%

Development Size

0-12 units

19%

33%

13-24 units 25+ units

48%

Development Location

59%

rural urban

5%

suburban

36%

Construction Type new

75%

rehab historic rehab

6%

19% NEBRASKA

OKLAHOMA

S. DAKOTA

TEXAS

226

79

11

11

5,893

2,852

445

482

50

33

2

7

67

45

2

7

4

2020 Developments

36 developments

MHEG partnered with 30 developers to develop 36 developments within 31 Midwest communities.

$215 million

MHEG closed over $215 million in equity.

This included 11 age restricted developments, 19 multifamily developments, five single family home properties and one special needs housing development.

1,423 units

MHEG created 1,423 affordable housing units. Properties ranged from a 10-unit rural development in Nebraska to a 89-unit urban development in Texas.

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Colorado

Arkansas

Denver - 70 age restricted units Developed by: Medici Development LLC & MGL Partners

Little Rock - 85 multifamily units Developed by: Phillips Development Corporation

Kappa Tower II LLLP

Oakwood Senior II LLC

Castle Rock - 53 age restricted units Developed by: MGL Partners

The Mill Apartments, LLLP

Fraser - 60 multifamily units Developed by: Grand Park Homes LLC

Kansas

The Heights at Shackleford Limited Partnership PDC Rogers Limited Partnership

Rogers - 83 multifamily units Developed by: Phillips Development Corporation

Missouri

Cassville Heights Apartments Phase II LP Cassville - 32 multifamily units Developed by: Midcontinent Equity Holdins, LLC

Gold Leaf Senior Living LLC

Pine Ridge II, LP

Girard and Ellsworth County Affordable Housing, LP

NewView Place I LLC

Bethel Ridge 64, LLC

Wornall Estates Investor Partner, LP

Canyon Creek Apartments, LP

Logan West Living, LP

Heritage Townhomes of Rose Hill, L.L.C.

Doling Landing LP

Baldwin City - 24 age restricted units Developed by: United Enterprises, LLC Ellsworth, Kanopolis & Girard - 24 single family units Developed by: Holden Communities, LLC Kansas City - 63 multifamily units Developed by: Tier 1 Development Group, LLC Manhattan - 36 age restricted units Developed by: Excel Development Group Rose Hill - 16 age restricted units Developed by: Manske & Associates, L.L.C.

Residences at Central Landing LLC Wichita - 32 age restricted units Developed by: Vintage Construction, LLC

Nebraska

Farmington - 24 age restricted units Developed by: East Missouri Action Agency Inc. Kansas City - 66 multifamily units Developed by: FH Northeastview LLC Kansas City - 30 multifamily units Developed by: Yarco Company, Inc.

Rogersville - 39 multifamily units Developed by: Morelock Builders & Associates Springfield - 24 single family units Developed by: Raga Properties, LLC

Oklahoma

Lindenwood Townhomes III, LLC Durant - 13 multifamily units Developed by: Desert Ridge Investments

FRC Housing, LLC

Saddle Ridge Trails, LLC

Hidden Brook Townhomes, LLC

The Estates of New Castle LP

Hidden Brook Townhomes II, LLC

Apple Ridge Homes III, LLC

The Row Fremont, LP

Stilwell Wisdom Keepers, L.P.

Columbus - 34 age restricted units Developed by: Mesner Development Co. Fremont - 20 multifamily units Developed by: Mesner Development Co. Fremont - 20 multifamily units Developed by: Mesner Development Co. Fremont - 25 multifamily units Developed by: Hoppe & Son, LLC

McCoy Meadows, LP

Grand Island - 60 multifamily units Developed by: Dana Point Development Corporation

1404 Castelar, LLC

Omaha - 38 age restricted units Developed by: Foundations Development, L.L.C.

2315 S. 15th Street, LLC

Omaha - 15 multifamily units Developed by: Foundations Development, L.L.C.

CenterPointe Campus for Hope, LLC Omaha - 36 special needs units Developed by: CenterPointe, Inc.

Guymon - 40 single family units Developed by: LW Development, LLC New Castle - 60 age restricted units Developed by: Wheatland Investments, LLC Pauls Valley - 17 multifamily units Developed by: Express Development & Desert Ridge Investments Stilwell - 40 age restricted units Developed by: Green Companies Development Group, Inc.

South Dakota

Irving Center Apartments Limited Partnership Sioux Falls - 35 multifamily units Developed by: Sioux Falls YMCA

Lacey Village Townhomes Limited Partnership

Sioux Falls - 46 multifamily units Developed by: Inter-Lakes Community Action Partnership, Inc.

Texas

Maple 37 Limited Partnership

OPG Laurel Flats Partners LLC

Wisner Crown, LLC

OPG Saddleback Ranch Partners, LLC

Omaha - 24 single family units Developed by: Holy Name Properties, Inc. Wisner - 10 single family units Developed by: Foundations Development, L.L.C.

Tyler - 89 multifamily units Developed by: Overland Property Group Wolfforth - 40 multifamily units Developed by: Overland Property Group

6

Rita’s Story She is vivacious, positive, and resilient. Her energy to live life is contagious, and she has no plans to slow down. Rita knows life has many stages, and not all of them are easy, but she thinks attitude and gratitude are attributes that can help you transition and deal with the more challenging times. And she’s extremely thankful for Landmark at Lamar.

Rita found herself searching for a new home a few years ago when her dear friend with Alzheimer’s advanced to a stage that would no longer allow for them to live together.

It was an extremely difficult time for Rita. But as chance would have it, another friend mentioned to her a new senior living community that was being developed and her life took another turn.

Located in downtown Wichita Falls, Texas, Landmark at Lamar is an adaptive reuse and renovation of an existing historic, four-story building. Developed by Overland Property Group, the building is designated for persons 55+. Constructed in 1929, the original building was a furniture store, a retail store at various times and then served as the Maskat Shrine Temple and meeting space.

Rita cannot say enough about how much she enjoys living at Landmark at Lamar, I love it here. I love living downtown and I really like the amenities that they have, the washer and dryer, the elevator, secure entry. It’s a safe environment, I feel very safe here.” The building is within walking distance to many restaurants, shops, health care providers, and even a 50 Plus Club, a recreational facility that specializes in social activities for persons 50 and over.

Rita also loves the community Landmark at Lamar offers. They do many group activities from cards and puzzles, to weekly movie nights and coffee and donuts gatherings. “It is a very welcoming environment. I like to visit with the other residents,” Rita continued, “This is a wonderful place to live because you have people you can share with and communicate with. It’s a very positive and uplifting experience here.”

Jokingly Rita mentions that she has no plans to ever move. She feels reinvigorated living in a community that promotes an active, social lifestyle and has enjoyed finding happiness again. She smiles and says, “The best is yet to come.”

7

“This is a wonderful place to live because you have people you can share with and communicate with,” ~ Rita

8

Equity Summary

$2.0B

$2.4 billion

$2.5B

$1.5B

$1.0B

$500M

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 2019 2020

In 2020, MHEG raised just under $200 million in equity capital. Since inception, MHEG has raised over $2.4 billion of equity capital to invest in affordable housing.

9

Board & Committees Board of Directors Barry Sandstrom - Retired President/CEO, Home Federal Bank - Chairman of the Board Dennis Brand - Chairman of the Executive Committee, BancFirst - Vice Chairman of the Board Frank Hayes - President, Hayes & Associates, L.L.C. Chris Hite - President, Sugar Creek Capital Kirk Kellner - Retired Tri-State Regional President, Wells Fargo Dan Lonergan - Retired,Tenaska Capital Management Nicole Theophilus - Chief Human Resources Officer, Wabtec Corporation John Wiechmann - CEO/President, Midwest Housing Equity Group

Committees

Audit Committee

Budget & Compensation Committee

Central Region Operations & Investment Committee

Northwest Region Operations & Investment Committee

Frank Hayes - Hayes & Associates Chris Hite - Sugar Creek Capital Kirk Kellner - Retired, Wells Fargo Dan Lonergan - Retired, Tenaska Capital Management

Bob Arthur - Commerce Bank, N.A. Mark Dennett - INTRUST Bank, N.A. Tracy Howren - UMB Bank, n.a.

Michael Scheopner - Landmark National Bank John Wiechmann - Midwest Housing Equity Group

Northeast Region Operations & Investment Committee Jennifer Cooper - Bankers Trust Tom Hanafan - Pottawattamie County Board of Supervisors Susan Whitson - First National Bank of Waverly John Wiechmann - Midwest Housing Equity Group

Dennis Brand - BancFirst Barry Sandstrom - Retired, Home Federal Bank Nicole Theophilus - Wabtec Corporation

Anthony Cerasoli - First National Bank of Omaha Jerry Cihal, Retired, Mutual of Omaha Justin Horst - Pinnacle Bank Randy Ilich - Colorado Federal Savings Bank Lauren Pugliese, Nelnet John Wiechmann - Midwest Housing Equity Group

South Region Operations & Investment Committee Brent Bates - Bank SNB Roger Beverage - Oklahoma Bankers Association Dennis Brand - BancFirst Daving King - MidFirst Bank - Tulsa Tom O’Keefe - INTRUST Bank, N.A. John Wiechmann - Midwest Housing Equity Group Mike Wynn - Mabrey Bank

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MHEG Staff Executive Staff

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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

Tyler Arens Acquisitions Manager

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

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

Ryan Harris Acquisitions Manager

Brett Helt Financial Analyst Asset Stabilization

Jake Jacobsen Construction Manager

Shannon Johnson Accounting Assistant

Keely McAleer Corp. Communications & HR Administrator

Paul McDonald Senior Asset Manager

Trey Mendlik Financial Analyst

Sharita Nelson Compliance Specialist

Jennifer Niemier Closing Manager

Dana Oswald Accounting Coordinator

Shannon Powers Closing Manager Real Estate

Mike Powley Deputy Director of Operations

Amanda Raak Financial Analyst

Josh Rauner Fund Reporting Manager

Brad Reiff Acquisitions Manager

Cole Rogers Financial Analyst

Brooke Smith Senior Asset Manager

Laurie Stephenson Deputy Director of Compliance

Deb Swanson Closing Manager

Shellie Vandeman Compliance Specialist

Cindy Wieck Administrative Assistant

Joshua Yurek Director of Government Affairs

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Midwest Housing Equity Group 515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 www.mheginc.com