2021 MHEG Annual Report

Together We Are

MAKING AN IMPACT MHEG 2021 ANNUAL REPORT

On the cover: Technology Heights II, Sioux Falls, South Dakota

Contents Message from our President

1

MHEG Portfolio Summary

3

2021 Developments

5

Antonia’s Story

7

Equity Summary

9

Board of Directors & Committee Members

10

MHEG Staff

11

Message from the President & CEO Hello Friends! Thank you for taking the time to read our 2021 Annual Report.

Looking back on the successes of the past year, it is easy to see that Together We Are Making an Impact. With each new development, we are making an impact on the lives of the residents we all serve. This year’s report tells the story of Antonia and you can read how we’ve made an impact on her life. What we and you do matters — alot!.

MHEG had a record year in 2021 - raising $315 million in new equity capital and closing investments in 39 new developments, helping finance over 1,800 units of quality affordable housing. These developments are spread out over 34 Midwest communities. The impact we are making on those 1,800 families is because of your hard work.

Thank you to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2021 such a success. Thank you for letting us be a part of your organization. Thank you for helping us execute on our mission of Changing Lives for a Better Tomorrow!

We are excited for even greater things in 2022 and continuing to make an impact.

We are expanding into new states and look forward to bringing our mission to new communities and serving even more residents. As you likely notice, we added several new members to our team in 2021 to help achieve our desired growth. It takes real teamwork to provide quality affordable housing, and MHEG’s team is one of the best. I thank them for their commitment.

Together We Are Making an Impact.

All the best, John J. Wiechmann

2 2

Development Status operational

73%

lease-up construction

18%

disposed

1%

8%

Development Size

0-12 units

19%

33%

13-24 units

48%

25+ units

Development Location

59%

rural urban

5%

suburban

36%

Construction Type new

75%

rehab

6%

historic rehab

19% MHEG TOTAL

3

ARKANSAS

COLORADO

IOWA

Developments

665

10

18

81

Housing Units

22,246

456

1,470

2,809

Counties

231

10

11

28

Cities

292

10

12

35

2021 Portfolio Summary 25,000 units

Breakdown of Development Type

multifamily age restricted

34%

22,246 units

43%

20,000 units

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 2021

KANSAS

MINNESOTA

MISSOURI

NEBRASKA

OKLAHOMA

S. DAKOTA

TEXAS

161

5

41

237

86

15

11

4,603

172

1,930

6,337

3,407

580

482

51

5

29

50

35

5

7

71

5

32

67

48

5

7 4

2021 Developments MHEG closed over $215 million in equity in 2021, creating and preserving 1,825 affordable housing rental units. This included 14 age restricted developments, 22 multifamily developments, one single family home development and two special needs developments. Properties ranged from a 15 unit rural development in Nebraska to a 184 unit urban development in Oklahoma. MHEG partnered with 31 developers to develop these 39 developments throughout 34 Midwest communities.

Colorado

Iowa

Kansas

Fort Collins - 84 multifamily units Developed by: Care Housing Inc.

Pleasant Hill - 36 age restricted units Developed by: Torrent Developers LLC

Emporia - 24 multifamily units Developed by: Merak Development LLC

Swallow Road Apartments, LLLP Cinnamon Apartments LLLP

Longmont- 25 age restricted units Developed by: Senior Housing Options, Inc.

Spring Creek Housing Associates LP

Whittier Place II, LP Quail Cove, LLC

Great Bend - 24 age restricted units Developed by: Mesner Development Co.

OPG Stonepost Lofts Partners, LLC Hays- 18 multifamily units Developed by: Overland Property Group, LLC

Interfaith Townhomes II, LLC

Hutchinson - 24 age restricted units Developed by: Manske & Associates, L.L.C.

Minnesota

Ridgely Park Apartments LP

Kasota - 24 multifamily units Developed by: Three Rivers Community Action Inc.

5

Missouri

Nebraska

Oklahoma

Brunswick- 16 multifamily units Developed by: Central Missouri Community Action

Crete - 22 multifamily units Developed by: Dana Point Development Corporation

Claremore - 84 age restricted units Developed by: LW Development, LLC

Woodridge Brunswick, LP

Belohlavy Estates, L.P.

Woodland Commons, LLC

St. Regis Linwood, LP

Gatewood Village, LLC

Lake Ridge Senior Villas, LP

Laurie Family, LP

Fremont North Side Townhomes, LLC

Glenpool Ridge, LP

VHMM, LP

The Row Orchard, LP

Jay Wisdom Keepers, L.P.

Kodiak Village, LP

CenterPointe South Street Project, LLC

North Pointe DLP, LLC

Diamond Senior Potosi, LP

Gatehouse Rows, LP

The T OKC I, LLC

Logan Villas LP

131 Fort, LLC

Kansas City - 85 age restricted units Developed by: Millennia Development Laurie - 24 multifamily units Developed by: Cydecton Investments LLC Lebanon - 65 age restricted units Developed by: Missouri Housing Partners LLC Neosho - 36 multifamily units Developed by: Holden Communities, LLC Potosi - 32 age restricted units Developed by: 3 Diamond Development LLC Raytown - 50 age restricted units Developed by: Raga Properties, LLC

Cozad - 15 multifamily units Developed by: Mesner Development Co. Fremont - 18 multifamily units Developed by: Mesner Development Co. Grand Island - 24 multifamily units Developed by: Hoppe & Son LLC Lincoln - 32 special needs units Developed by: CenterPointe, Inc.

Lincoln - 98 multifamily units Developed by: Hoppe & Son LLC Omaha - 80 age restricted units Developed by: Foundations Development, L.L.C.

Diamond Apts Rolla MO, LP

2215 Q Street, LLC

Versailles Family, LP

HPIV, LLC

Rolla - 80 multifamily units Developed by: 3 Diamond Development LLC Versailles - 44 multifamily units Developed by: Cydecton Investments LLC

Omaha - 40 age restricted units Developed by: Foundations Development, L.L.C.

Eufaula - 24 age restricted units Developed by: Arzon Housing Corporation Glenpool - 76 age restricted units Developed by: Red-Wood Development, Inc. Jay - 40 age restricted units Developed by: Green Companies Development Group Oklahoma City - 184 multifamily units Developed by: DLP Development LLC Oklahoma City - 85 multifamily units Developed by: Express Development / Desert Ridge Investments

The Villages at A New Leaf, LP

Owasso - 62 special needs units Developed by: Excel Development Group

South Dakota

Omaha - 70 multifamily units Developed by: Seventy-Five North Revitalization Corp / Brinshore Development, LLC

Davison Court Limited Partnership

Villa Rows L.P.

Denali Ridge Limited Partnership

Omega West Point, LTD.

Heartland Heights Apartments LP

Omaha - 23 multifamily units Developed by: Holy Name Properties, Inc. West Point - 22 multifamily units Developed by: Hoppe & Son LLC

Mitchel - 25 multifamily units Developed by: Grandview LLC Pierre - 40 multifamily units Developed by: Grandview LLC

Rapid City - 41 multifamily units Developed by: Rapid City Club for Boys Inc.

Jefferson Village Apartments LP Sioux Falls - 29 multifamily units Developed by: Y Housing V LLC

6

Antonia’s Story Meet Antonia. Her laugh will make you smile, and her stories will make you laugh. She enjoys visiting with those in her community and loves to stop by her property management’s office to have a daily chat. If she’s not conversing with neighbors, listening to music, or watching a show in her apartment, she’s at church. The kinship and stability she has created at Technology Heights hasn’t always been her living experience.

Antonia, originally from St. Louis, moved around often while growing up in foster care and had become accustomed to the lifestyle of frequently relocating and eventually found herself in Sioux Falls, South Dakota. Unable to work full-time due to medical reasons, Antonia has relied on disability benefits to provide for her family sometimes finding herself living in places that weren’t as safe as she’d like. Fortunately, the housing authority connected her with Lloyd Companies and Technology Heights and she hasn’t left since.

“Lloyd Properties is amazing,” she gushes. “I appreciate living here, I value it.”

Antonia is aware that not all apartment communities are the same. “I didn’t feel safe in some of my previous places, they weren’t maintained, and they let anyone move-in.” Technology Heights provides secured entrances, nightly patrol, as well as several other amenities. “They have two community rooms, a computer/business center and utilities are included!”

Having the utilities included has been very beneficial. In the past there were times when she would have to choose food for her kids or the utilities. “It was very stressful, there were times when I almost had them turned off. There were times when I had to donate plasma to get money to buy food for my kids,” she remembered, or she would have to find other programs that could assist her.

Today, living at Technology Heights with affordable rents and utilities paid for allows Antonia some financial freedom. “This place has provided me stability, a community with family…

I’m not planning on moving anytime soon.”

Technology Heights (I and II) consist of 78 units and was funded through MHEG Fund 44, LP and MHEG OZ Fund 1, LP. It is currently managed by Lloyd Property Management.

7

“This place has provided me stability, a community with family.” ~ Antonia

8

Equity Summary $2.5B

$2.7 billion

$3.0B

$2.0B

$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 2021

In 2021, MHEG raised $315 million in equity capital. Since inception, MHEG has raised over $2.7 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 Kirk Kellner - Retired Tri-State Regional President, Wells Fargo - Secretary of the Board Frank Hayes - President, Hayes & Associates, L.L.C. Chris Hite - President, Sugar Creek Capital Dan Lonergan - President, 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 - President, 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 Victoria Facto - 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 Carl Sjulin - West Gate Bank John Wiechmann - Midwest Housing Equity Group

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

10

MHEG Staff Executive Staff

John Wiechmann Chief Executive Officer & President

Becky Christoffersen Chief Investment Officer

Jason Main Chief Financial Officer

Ann Burge Chief Operating Officer

Jordan Abboud Vice President of Asset Management

Pat Michaelis Vice President Business Development Officer

Andrea Frymire Vice President Business Development Officer

Scott Fitzpatrick Vice President Business Development Officer

Tyler Arens Acquisitions Manager

Kelli Baker Asset Manager

Lisa Bryan Administrative Coordinator

Sara Church Asset Manager

Carmen Clyde Financial Analyst

Emily Coleman Financial Analyst

Traci Collins Acquisitions Manager

Tracy Connor Corporate Accountant

Dustin Daugherty Construction Manager

Leah Davis Closing Manager

Not pictured: Dallas Anderson, Closing Manager

11

Tom Stratman Vice President of Acquisitions

2 Sammy Ehtisham Assistant Vice President of Acquisitions

Shannon Foster Accounting Manager

Steve Gross Senior Financial Analyst

Deb Holcomb Compliance Specialist

Jake Jacobsen Construction Manager

Shannon Johnson Accounting Assistant

Sharita Nelson Compliance Specialist

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

Hillary Shields Closing Manager Real Estate

Brooke Smith Senior Asset Manager

Laurie Stephenson Deputy Director of Compliance

Deb Swanson Closing Manager

Kara Tuccitto Compliance Specialist

Shellie Vandeman Compliance Specialist

Cindy Wieck Administrative Assistant

Mike Williams Director of Acquisitions

Laura Wilson Associate Counsel Real Estate

Joshua Yurek Director of Government Affairs

Ryan Harris Acquisitions Manager

Keely McAleer Corp. Communications & HR Administrator

Brett Helt Financial Analyst Asset Stabilization

Trey Mendlik Financial Analyst

12

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