MHEG in a Minute - Spring 2022

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Staff - Additions Recent Staff Additions Leah Davis, Closing Manager Leah joined MHEG as a Closing Manager in May 2021. 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. Leah has over 15+ years of paralegal experience.

Carmen Clyde, Financial Analyst Carmen joined MHEG as Financial Analyst in August 2021 in our Omaha office. Her duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Carmen has over 20+ years accounting experience recently serving as an Accounting Manager for Lueder Construction.

Emily Coleman, Financial Analyst Emily joined MHEG as Financial Analyst in May 2021 in our Omaha office. Her duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/ workouts as needed. Emily is a recent graduate from the University of Nebraska at Omaha, majoring in Business Administration and concentrations in Real Estate and Land Use Economics.

Dallas joined MHEG as a Closing Manager in November 2021. 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. Dallas has over 5+ years’ experience in LIHTC development. She most recently worked for Yarco Company as a Development Coordinator.

Laura joined MHEG as our Associate Counsel – Real Estate in November 2021 in our Omaha office. Her duties will include leading the Closing Managers through the due diligence collection/review process to keep our investments on track as well as handling MHEG’s entity formation and corporate filings. Laura will also draft and review contracts and amendments related to MHEG’s real estate transactions, and will work/coordinate with outside counsel as needed. Laura has over 7+ years’ experience in real estate law. Most recently she worked for Metonic Real Estate Solutions as Associate General Counsel.

Sara Schwartz, Corporate Staff Accountant Sara joined MHEG as a Corporate Staff Accounting in January 2022 in our Omaha office. She will work closely with the Controller and CFO to assist in a variety of accounting tasks. Sara has over 10+ years’ experience in various accounting roles, most recently she served as a Payroll Analyst for Kiewit.

MHEG in a Minute l P5

Property & Resident Spotlight

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Portfolio Update

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Staff - Additions & Spotlight

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Hillary joined MHEG as a Closing Manager – Real Estate in December 2021. She will work closely with the Acquisitions Managers to close our Funds’ investments in various developments. Her duties will include leading our real estate due diligence process across the portfolio, working closely with our lawyers, title companies and surveyors to assure the operating partnerships hold clean title to the real estate. Hillary has over 10+ years’ paralegal experience, in particular working with real estate matters. She previously worked for Polsinelli as a Real Estate Analyst.

Cheri Culbertson, Administrative Assistant Cherí joined MHEG as our new Omaha Administrative Assistant in January 2022. She is responsible for providing administrative support to MHEG’s C-suite, in addition to assisting with various duties for all staff. Cherí has over 20+ years’ experience in various administrative roles. Most recently she worked for Lincoln Financial.

We’re growing and MHEG is looking to add to our team! We offer competitive pay and great benefits including work from home arranagements. For complete job descriptions and requirements, visit our website’s Employment page. To apply, email your resume to Keely McAleer - kmcaleer@mheginc.com.

Fund Staff Accountant

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Hillary Shields, Closing Manager - Real Estate

We’re Hiring!! Financial Analyst

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MHEG & MHDF Updates

Kara joined MHEG as a Compliance Specialist in November 2021 in our Omaha office. Her duties will include monitoring the initial lease-up of new properties as well as monitoring existing MHEG properties for the compliance period ensuring that residents comply with all rent, income and other regulatory restrictions applicable to each property. Kara has over 25+ years in LIHTC compliance. She previously worked for NP Dodge Management.

Laura Wilson, Associate Counsel - Real Estate

Mike joined MHEG as a Director of Acquisitions in December 2021. He is responsible for originating, underwriting, and closing equity investments in affordable housing developments financed with tax credits in compliance with MHEG’s processes, procedures and credit standards. He will also be responsible for developing and maintaining relationships with current and potential developers. His region will cover Missouri and Arkansas. Michael has over 20+ years’ experience in the housing industry.

CEO Message & Recent Happenings

Kara Tuccitto, Compliance Specialist

Dallas Anderson, Closing Manager

Mike Williams, Director of Acquisitions

Content

Director of Acquisitions

Compliance Specialist

MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. l Spring 2022


CEO Message & Recent Happenings

MHEG & MHDF Updates

New Normal, New Faces, But Same MHEG John Wiechmann, CEO

MHEG is Expanding! Pat Michaelis, VP Business Development

Greetings Friends! I hope this newsletter finds each of you doing well. Hard to believe the first quarter of 2022 is almost over! Two years ago, the world changed and our ‘normal’ changed. MHEG closed its physical offices and staff began working remotely from home. As we settle into 2022, we are determining just what our new ‘normal’ is. For MHEG, this means our physical offices are open, but our staff have the flexibility to work at home or the office (or anywhere else where they can get the job done!). Our commitment to our investor and developer partners remains the same, regardless of where our team logs-in. Our success in 2021 confirms that commitment. MHEG had a record year raising $315 million in new equity and closing investments in 39 new developments, helping finance over 1,800 units of quality affordable housing. Together with you, 36 new developments reached construction completion, creating over 1,600 safe, decent and affordable units for even more individuals and families. We are excited for even greater things in 2022. As mentioned later in the newsletter, we’re expanding into new states and are excited to bring our mission to new communities and serve even more residents. We’ve also added several new members to our team to accommodate the growth. We look forward to you meeting them in person throughout the year at our annual state dinners.

All the best, John Wiechmann John Wiechmann along with Fred Hoppe and other partners at the Gatehouse Rows groundbreaking ceremony in Lincoln, Nebraska. September 2021

Recent Happenings... Vandeman, Swanson, Powers & Wieck Retire

MHEG’s mission is to “Change lives for a better tomorrow by helping create safe, quality, affordable housing.” To grow the mission, MHEG must secure additional investors to increase capacity. Both require syndicating additional LIHTC developments. Thus, we are expanding. Within MHEG’s current footprint, $91 million 9% LIHTC credits will be allocated in 2022. The allocation pool grows to $213.4 million with the addition of our new states. Clearly, significantly increasing development opportunity for MHEG and partners.

With 59% of our developments being rural in nature, we appreciate our community banks providing their local perspective on a wide range of issues from demographics, location, and economic viability. Our investor partners have long enjoyed the benefits of having deals in their backyard to help make their communities better and to provide banking opportunities. Our investors are generally driven by economic returns. Our Funds are charactered as low risk and low-levered (typically 25% or less), consist of mostly new construction developments, spread between rural and urban locations with a diverse mix of counterparties. We conservatively underwrite both rents and expenses. The result is that we have never experienced a foreclosure or any recapture of tax credits. In addition, our portfolio generally outperforms industry benchmarks. This conservative underwriting and strong portfolio performance help explain our success in raising more and more capital each year. COVID really brought home the need for quality, affordable housing to the public, but our investor partners have led the charge in helping us provide housing to families, seniors, and veterans for almost 30 years. I do hope to meet all of you in person this year, as time allows. If you or your peers need CRA assistance, please let me know. I value your continued partnership and appreciate the trust you have placed in us!

NE Creates More Affordable Housing With Bond Deals Ryan Harris, Director of Acquisitions In 2021, Nebraska Investment Finance Authority (NIFA) updated their Qualified Allocation Plan allowing tax-exempt bond deals to receive an allocation of State LIHTCs equal to the Victory Park View in Lincoln, Nebraska amount of Federal LIHTCs. NIFA approved three bond deals with State LIHTCs in 2021, which had a combined bond allocation of $29 million and will receive over $2.3 million of annual Federal and State LIHTCs. This additional resource was leveraged to generate 262 units of affordable housing among three deals and generate nearly $60 million of development in the State.

Shellie Vandeman has been with MHEG for 20 years and has been an invaluable asset to our company. Although she worked in the Compliance Department, Shellie took the time to know everyone at MHEG and always had a smile on her face. Her final day was January 6th, 2022. Deb Swanson has been with MHEG over 14 years. She has been a vital member of our Acquisitions team, but also a friendly face to all departments. She worked with many of our partners as we closed deals. Her last day was January 7th, 2022.

We understand we are not the only ones thinking growth. Due to limited allocations in each state, expansion is on the minds of many. We value and appreciate the relationships we have established. If you are considering expanding into New Mexico, Arizona, Nevada, Utah, Wyoming, Montana, and Texas, we welcome the opportunity to explore the possibility as your partner.

This year I’ve been charged with leading the process of raising capital from small and mid-size institutional investors throughout our now seventeen-state footprint. Since inception, MHEG has partnered and fostered investment with our local and regional community banks to further our mission of providing quality, affordable housing for low-income households while assisting banks with their CRA goals.

Now expanding into New Mexico, Arizona, Nevada, Utah, Wyoming, Montana, and all of Texas

This first quarter of 2022 was bittersweet with the retirement of four long-time employees. Shellie Vandeman, Deb Swanson, Shannon Powers and Cindy Wieck said their farewells to MHEG and started new chapters in their lives. Each of these ladies will be greatly missed; their knowledge, expertise and dedication to MHEG were evident in the many years of service to the company.

Left to Right: Shannon Powers, Deb Swanson and Cindy Wieck

Shannon Powers has been with MHEG over 20 years. She was the beginning of our due diligence department and implemented many of the protocols we still use today. Her last day was January 14th, 2022. Cindy Wieck has been with MHEG over 8 years. She has been the welcoming face to MHEG for many years now and has assisted everyone with a variety of tasks. She’s taken the time to get to know each staff member and truly made an effort to make things easier for everyone. Her final day was February 4th, 2022. MHEG in a Minute l P1

MHEG is expanding its geographic footprint into New Mexico, Arizona, Nevada, Utah, Wyoming, Montana, and all of Texas. If you are considering developing in these states, here’s what is happening at MHEG.

MHEG has a history of growing and expanding our footprint and the people we serve. Originally established in Nebraska in 1993, MHEG added Kansas, Iowa, and Oklahoma between 2001 and 2005. We expanded again in 2013 into South Dakota, Minnesota, Missouri, Arkansas, Colorado, and Northern Texas. MHEG spent the last year making initial contacts and performing due diligence with plans to begin syndication in 2022 in our new footprint.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2021 such a great year. Thank you for lettings us be a part of your organization. If there is anything that anyone at MHEG can do to help you reach your goals, please don’t hesitate to let me know. We may have a new normal, with new faces and new states, but we’re still the same MHEG looking to change lives for a better tomorrow.

Community Bank Investments Andrea Frymire, VP Community Investments

Gatehouse Rows is a 98-unit family deal by Hoppe & Son in Lincoln. Total development costs are just under $20 million. The fourth phase of Highlander – a partnership between Seventy-Five North and Brinshore Development – is a 70-unit addition to the campus in Omaha and will provide both apartments and townhomes to qualified families. Development costs are just under $27 million. Victory Park View is the latest addition to the Victory Campus in Lincoln, developed by Burlington Capital. The project consists of rehabbing two existing buildings, totaling 94 family units with a preference to housing veterans. Total costs are over $12 million. These deals will help serve part of the increasing need for affordable housing in the state of Nebraska and were made possible by NIFA’s efforts to include the State LIHTC program on tax-exempt bond deals. NIFA has also increased their Federal/State bond allocation for 2022 up to $35 million, furthering their commitment to utilize the State LIHTC resource to create affordable housing. Keeping you up to date on MHEG in just a minute’s time. l Spring 2022


CEO Message & Recent Happenings

MHEG & MHDF Updates

New Normal, New Faces, But Same MHEG John Wiechmann, CEO

MHEG is Expanding! Pat Michaelis, VP Business Development

Greetings Friends! I hope this newsletter finds each of you doing well. Hard to believe the first quarter of 2022 is almost over! Two years ago, the world changed and our ‘normal’ changed. MHEG closed its physical offices and staff began working remotely from home. As we settle into 2022, we are determining just what our new ‘normal’ is. For MHEG, this means our physical offices are open, but our staff have the flexibility to work at home or the office (or anywhere else where they can get the job done!). Our commitment to our investor and developer partners remains the same, regardless of where our team logs-in. Our success in 2021 confirms that commitment. MHEG had a record year raising $315 million in new equity and closing investments in 39 new developments, helping finance over 1,800 units of quality affordable housing. Together with you, 36 new developments reached construction completion, creating over 1,600 safe, decent and affordable units for even more individuals and families. We are excited for even greater things in 2022. As mentioned later in the newsletter, we’re expanding into new states and are excited to bring our mission to new communities and serve even more residents. We’ve also added several new members to our team to accommodate the growth. We look forward to you meeting them in person throughout the year at our annual state dinners.

All the best, John Wiechmann John Wiechmann along with Fred Hoppe and other partners at the Gatehouse Rows groundbreaking ceremony in Lincoln, Nebraska. September 2021

Recent Happenings... Vandeman, Swanson, Powers & Wieck Retire

MHEG’s mission is to “Change lives for a better tomorrow by helping create safe, quality, affordable housing.” To grow the mission, MHEG must secure additional investors to increase capacity. Both require syndicating additional LIHTC developments. Thus, we are expanding. Within MHEG’s current footprint, $91 million 9% LIHTC credits will be allocated in 2022. The allocation pool grows to $213.4 million with the addition of our new states. Clearly, significantly increasing development opportunity for MHEG and partners.

With 59% of our developments being rural in nature, we appreciate our community banks providing their local perspective on a wide range of issues from demographics, location, and economic viability. Our investor partners have long enjoyed the benefits of having deals in their backyard to help make their communities better and to provide banking opportunities. Our investors are generally driven by economic returns. Our Funds are charactered as low risk and low-levered (typically 25% or less), consist of mostly new construction developments, spread between rural and urban locations with a diverse mix of counterparties. We conservatively underwrite both rents and expenses. The result is that we have never experienced a foreclosure or any recapture of tax credits. In addition, our portfolio generally outperforms industry benchmarks. This conservative underwriting and strong portfolio performance help explain our success in raising more and more capital each year. COVID really brought home the need for quality, affordable housing to the public, but our investor partners have led the charge in helping us provide housing to families, seniors, and veterans for almost 30 years. I do hope to meet all of you in person this year, as time allows. If you or your peers need CRA assistance, please let me know. I value your continued partnership and appreciate the trust you have placed in us!

NE Creates More Affordable Housing With Bond Deals Ryan Harris, Director of Acquisitions In 2021, Nebraska Investment Finance Authority (NIFA) updated their Qualified Allocation Plan allowing tax-exempt bond deals to receive an allocation of State LIHTCs equal to the Victory Park View in Lincoln, Nebraska amount of Federal LIHTCs. NIFA approved three bond deals with State LIHTCs in 2021, which had a combined bond allocation of $29 million and will receive over $2.3 million of annual Federal and State LIHTCs. This additional resource was leveraged to generate 262 units of affordable housing among three deals and generate nearly $60 million of development in the State.

Shellie Vandeman has been with MHEG for 20 years and has been an invaluable asset to our company. Although she worked in the Compliance Department, Shellie took the time to know everyone at MHEG and always had a smile on her face. Her final day was January 6th, 2022. Deb Swanson has been with MHEG over 14 years. She has been a vital member of our Acquisitions team, but also a friendly face to all departments. She worked with many of our partners as we closed deals. Her last day was January 7th, 2022.

We understand we are not the only ones thinking growth. Due to limited allocations in each state, expansion is on the minds of many. We value and appreciate the relationships we have established. If you are considering expanding into New Mexico, Arizona, Nevada, Utah, Wyoming, Montana, and Texas, we welcome the opportunity to explore the possibility as your partner.

This year I’ve been charged with leading the process of raising capital from small and mid-size institutional investors throughout our now seventeen-state footprint. Since inception, MHEG has partnered and fostered investment with our local and regional community banks to further our mission of providing quality, affordable housing for low-income households while assisting banks with their CRA goals.

Now expanding into New Mexico, Arizona, Nevada, Utah, Wyoming, Montana, and all of Texas

This first quarter of 2022 was bittersweet with the retirement of four long-time employees. Shellie Vandeman, Deb Swanson, Shannon Powers and Cindy Wieck said their farewells to MHEG and started new chapters in their lives. Each of these ladies will be greatly missed; their knowledge, expertise and dedication to MHEG were evident in the many years of service to the company.

Left to Right: Shannon Powers, Deb Swanson and Cindy Wieck

Shannon Powers has been with MHEG over 20 years. She was the beginning of our due diligence department and implemented many of the protocols we still use today. Her last day was January 14th, 2022. Cindy Wieck has been with MHEG over 8 years. She has been the welcoming face to MHEG for many years now and has assisted everyone with a variety of tasks. She’s taken the time to get to know each staff member and truly made an effort to make things easier for everyone. Her final day was February 4th, 2022. MHEG in a Minute l P1

MHEG is expanding its geographic footprint into New Mexico, Arizona, Nevada, Utah, Wyoming, Montana, and all of Texas. If you are considering developing in these states, here’s what is happening at MHEG.

MHEG has a history of growing and expanding our footprint and the people we serve. Originally established in Nebraska in 1993, MHEG added Kansas, Iowa, and Oklahoma between 2001 and 2005. We expanded again in 2013 into South Dakota, Minnesota, Missouri, Arkansas, Colorado, and Northern Texas. MHEG spent the last year making initial contacts and performing due diligence with plans to begin syndication in 2022 in our new footprint.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2021 such a great year. Thank you for lettings us be a part of your organization. If there is anything that anyone at MHEG can do to help you reach your goals, please don’t hesitate to let me know. We may have a new normal, with new faces and new states, but we’re still the same MHEG looking to change lives for a better tomorrow.

Community Bank Investments Andrea Frymire, VP Community Investments

Gatehouse Rows is a 98-unit family deal by Hoppe & Son in Lincoln. Total development costs are just under $20 million. The fourth phase of Highlander – a partnership between Seventy-Five North and Brinshore Development – is a 70-unit addition to the campus in Omaha and will provide both apartments and townhomes to qualified families. Development costs are just under $27 million. Victory Park View is the latest addition to the Victory Campus in Lincoln, developed by Burlington Capital. The project consists of rehabbing two existing buildings, totaling 94 family units with a preference to housing veterans. Total costs are over $12 million. These deals will help serve part of the increasing need for affordable housing in the state of Nebraska and were made possible by NIFA’s efforts to include the State LIHTC program on tax-exempt bond deals. NIFA has also increased their Federal/State bond allocation for 2022 up to $35 million, furthering their commitment to utilize the State LIHTC resource to create affordable housing. Keeping you up to date on MHEG in just a minute’s time. l Spring 2022


MHEG & MHDF Updates

Property & Resident Spotlight

Government Affairs Update Joshua Yurek, VP Government Affairs & Community Outreach

OPG Lamar Partners, Wichita Falls, Texas Meet Rita

Last fall, the Affordable Housing Tax Credit Coalition announced that The Residence at Lamar in Wichita Falls, TX, was selected as a recipient of the Charles L. Edson Tax Credit Award for the category of historic preservation. The Edson Award recognizes the best developments in affordable housing. The Residence at Lamar development by Overland Property Group and syndicated by MHEG, is an adaptive reuse and renovation of an existing historic, four-story building designated for persons 55+. Constructed in 1929, the original building was a furniture store, a retail store and then served as the Maskat Shrine Temple. Since its reintroduction, the Affordable Housing Credit Improvement Act (AHCIA) (S. 1136 and H.R. 2573) continues to gain more support. The legislation reforms provisions of the Low-Income Housing Tax Credit (LIHTC) program by increasing the Housing Credit allocation and making the Housing Credit a more effective tool, particularly in rural areas, to encourage additional development. The legislation currently has strong bipartisan support, including 155 cosponsors in the House and 32 cosponsors in the Senate. Within the MHEG footprint, we have members that have cosponsored the AHCIA from CO, IA, KS, MN, MO, NE and OK. It is exciting to note that the entire Kansas delegation has cosponsored the legislation! While affordable housing, including a significant expansion of the Housing Credit, was a major element of the Build Back Better legislation that the House passed in November, the legislation ultimately stalled in the Senate in December. Several members had concerns with various provisions in the legislation, but the most vocal objections came from Senator Joe Manchin (D-WV). Although his objections over the bill’s cost and potential impact on inflation killed the Build Back Better legislation in its current form, he has recently laid out some high-level priorities for a bill that he could potentially support. In the meantime, as you all know, rising inflation has increased the cost of construction. Sadly, on top of the considerable inflation challenges facing the affordable housing industry, the Housing Credit is now facing its lowest allocation in four years due to the recent expiration of a temporary 12.5 percent allocation increase. Unfortunately, the impact of these combined problems is exacerbating the affordable housing crisis. In short, we need additional Housing Credit resources now more than ever. Recently, the bipartisan Fiscal Year (FY) 2022 omnibus spending bill was signed into law, which includes $1.5 trillion in government funding and $13.6 billion in aid tied to Ukraine. The legislation provides $53.7 billion for the Department of Housing and Urban Development (HUD) – an increase of $4 billion, or 8 percent, above FY 2021. It also included funding for U.S. Department of Agriculture (USDA) rural housing programs and a reauthorization of the Violence Against Women Act (VAWA), among many other provisions. The Omnibus did not include any Housing Credit provisions, since the bill did not contain a tax title.

During 2021, MHDF made our first loan in South Dakota to Jefferson Village Apartments sponsored by YMCA of Sioux Falls and C.R. Lloyd Company. Jefferson Village will be newly built with a mix of 1-bedroom, 2-bedroom and 3-bedroom apartments in the same area of Sioux Falls as the new Thomas Jefferson High School. MHDF received a $1.8 million CDFI Rapid Response Program grant for affordable housing loans from the U.S. Treasury as part of the federal COVID response package. We also received a $650,000 grant from the traditional CDFI Financial Assistance grant program for lending. These investments are being deployed across our footprint. Financing that enables the creation of affordable housing units is our top priority. MHDF now has loan products to assist from the predevelopment phase to a property’s LIHTC Year 15 transition and every step in between. For more information about providing affordable housing resources in your community, please reach out. MHEG in a Minute l P3

Developer Overland Property Group Property Manager Seldin Company Equity Invested $6 million

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.”

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

Landmark at Lamar was made possible through the use of the Low Income Housing Tax Credit Program. In addition to the tax credit equity, this development received state historic tax credits and a $300,000 city loan.

Finally, Members of Congress often state they see great value in visiting affordable housing properties. It is especially important for them to directly hear personal stories from residents as we continue to advocate for additional affordable housing resources in Congress. When you are a few months out from construction completion, and begin thinking about showing off the finished product, please don’t hesitate to reach out to me. I would be happy to help coordinate a ribbon-cutting event with your Congressional delegation and their staff to further demonstrate how effective the Housing Credit is in providing affordable housing in their district and state.

We saw some exciting growth in 2021. MHDF expanded our loan portfolio to help even more people gain access to affordable, safe housing during this second year of the global pandemic. We closed over $22 million in loans assisting with the creation of 716 affordable, rental units in 8 states.

General Partner OPG LR Managers, LLC

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.

Moving forward, we expect Congress to focus its attention on other legislative issues, such as potentially a new iteration of budget reconciliation or other legislation that could have a tax component. However, the current crisis in Ukraine and the upcoming Supreme Court nomination confirmation process are also taking up considerable focus. We will continue to look for opportunities in any upcoming legislative vehicle to deliver more affordable housing resources, including restoring the recent 12.5 percent Housing Credit reduction.

MHDF Update Lara Huskey, MHDF EVP

OPG Lamar Partners

She is vivacious, positive, and grateful. 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

Portfolio Updates MHEG Portfolio as of 3/1/2022

2022 Developments

Fund

Location

1120 Lofts, LLC

MHEG 53

Omaha, NE

30

JAN

MHEG 53

Pine Island, MN

24

JAN

MHEG 54

Fremont, NE

49

FEB

Developments

668

Units

22,349

Arch Icon Development Corp

Counties Represented

232

Wisner Crown, LLC

Cities Represented

293

Three Rivers Community Action Inc.

Vacancy Percentage

5.52%*

Hidden Brook Townhomes II, LLC

Debt Coverage Ratio

1.84*

*Data compiled from 12/31/21 figures using stabilized developments only, vacancy percentage is using economic vacancy.

Units Date

Developed by:

Developed by:

Developed by:

Hoppe & Son LLC Total Units Closed in 2022

103

Keeping you up to date on MHEG in just a minute’s time. l Spring 2022


MHEG & MHDF Updates

Property & Resident Spotlight

Government Affairs Update Joshua Yurek, VP Government Affairs & Community Outreach

OPG Lamar Partners, Wichita Falls, Texas Meet Rita

Last fall, the Affordable Housing Tax Credit Coalition announced that The Residence at Lamar in Wichita Falls, TX, was selected as a recipient of the Charles L. Edson Tax Credit Award for the category of historic preservation. The Edson Award recognizes the best developments in affordable housing. The Residence at Lamar development by Overland Property Group and syndicated by MHEG, is an adaptive reuse and renovation of an existing historic, four-story building designated for persons 55+. Constructed in 1929, the original building was a furniture store, a retail store and then served as the Maskat Shrine Temple. Since its reintroduction, the Affordable Housing Credit Improvement Act (AHCIA) (S. 1136 and H.R. 2573) continues to gain more support. The legislation reforms provisions of the Low-Income Housing Tax Credit (LIHTC) program by increasing the Housing Credit allocation and making the Housing Credit a more effective tool, particularly in rural areas, to encourage additional development. The legislation currently has strong bipartisan support, including 155 cosponsors in the House and 32 cosponsors in the Senate. Within the MHEG footprint, we have members that have cosponsored the AHCIA from CO, IA, KS, MN, MO, NE and OK. It is exciting to note that the entire Kansas delegation has cosponsored the legislation! While affordable housing, including a significant expansion of the Housing Credit, was a major element of the Build Back Better legislation that the House passed in November, the legislation ultimately stalled in the Senate in December. Several members had concerns with various provisions in the legislation, but the most vocal objections came from Senator Joe Manchin (D-WV). Although his objections over the bill’s cost and potential impact on inflation killed the Build Back Better legislation in its current form, he has recently laid out some high-level priorities for a bill that he could potentially support. In the meantime, as you all know, rising inflation has increased the cost of construction. Sadly, on top of the considerable inflation challenges facing the affordable housing industry, the Housing Credit is now facing its lowest allocation in four years due to the recent expiration of a temporary 12.5 percent allocation increase. Unfortunately, the impact of these combined problems is exacerbating the affordable housing crisis. In short, we need additional Housing Credit resources now more than ever. Recently, the bipartisan Fiscal Year (FY) 2022 omnibus spending bill was signed into law, which includes $1.5 trillion in government funding and $13.6 billion in aid tied to Ukraine. The legislation provides $53.7 billion for the Department of Housing and Urban Development (HUD) – an increase of $4 billion, or 8 percent, above FY 2021. It also included funding for U.S. Department of Agriculture (USDA) rural housing programs and a reauthorization of the Violence Against Women Act (VAWA), among many other provisions. The Omnibus did not include any Housing Credit provisions, since the bill did not contain a tax title.

During 2021, MHDF made our first loan in South Dakota to Jefferson Village Apartments sponsored by YMCA of Sioux Falls and C.R. Lloyd Company. Jefferson Village will be newly built with a mix of 1-bedroom, 2-bedroom and 3-bedroom apartments in the same area of Sioux Falls as the new Thomas Jefferson High School. MHDF received a $1.8 million CDFI Rapid Response Program grant for affordable housing loans from the U.S. Treasury as part of the federal COVID response package. We also received a $650,000 grant from the traditional CDFI Financial Assistance grant program for lending. These investments are being deployed across our footprint. Financing that enables the creation of affordable housing units is our top priority. MHDF now has loan products to assist from the predevelopment phase to a property’s LIHTC Year 15 transition and every step in between. For more information about providing affordable housing resources in your community, please reach out. MHEG in a Minute l P3

Developer Overland Property Group Property Manager Seldin Company Equity Invested $6 million

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.”

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

Landmark at Lamar was made possible through the use of the Low Income Housing Tax Credit Program. In addition to the tax credit equity, this development received state historic tax credits and a $300,000 city loan.

Finally, Members of Congress often state they see great value in visiting affordable housing properties. It is especially important for them to directly hear personal stories from residents as we continue to advocate for additional affordable housing resources in Congress. When you are a few months out from construction completion, and begin thinking about showing off the finished product, please don’t hesitate to reach out to me. I would be happy to help coordinate a ribbon-cutting event with your Congressional delegation and their staff to further demonstrate how effective the Housing Credit is in providing affordable housing in their district and state.

We saw some exciting growth in 2021. MHDF expanded our loan portfolio to help even more people gain access to affordable, safe housing during this second year of the global pandemic. We closed over $22 million in loans assisting with the creation of 716 affordable, rental units in 8 states.

General Partner OPG LR Managers, LLC

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.

Moving forward, we expect Congress to focus its attention on other legislative issues, such as potentially a new iteration of budget reconciliation or other legislation that could have a tax component. However, the current crisis in Ukraine and the upcoming Supreme Court nomination confirmation process are also taking up considerable focus. We will continue to look for opportunities in any upcoming legislative vehicle to deliver more affordable housing resources, including restoring the recent 12.5 percent Housing Credit reduction.

MHDF Update Lara Huskey, MHDF EVP

OPG Lamar Partners

She is vivacious, positive, and grateful. 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

Portfolio Updates MHEG Portfolio as of 3/1/2022

2022 Developments

Fund

Location

1120 Lofts, LLC

MHEG 53

Omaha, NE

30

JAN

MHEG 53

Pine Island, MN

24

JAN

MHEG 54

Fremont, NE

49

FEB

Developments

668

Units

22,349

Arch Icon Development Corp

Counties Represented

232

Knollwood Apartments LP

Cities Represented

293

Three Rivers Community Action Inc.

Vacancy Percentage

5.52%*

Hidden Brook Townhomes II, LLC

Debt Coverage Ratio

1.84*

*Data compiled from 12/31/21 figures using stabilized developments only, vacancy percentage is using economic vacancy.

Units Date

Developed by:

Developed by:

Developed by:

Hoppe & Son LLC Total Units Closed in 2022

103

Keeping you up to date on MHEG in just a minute’s time. l Spring 2022


Staff - Additions Recent Staff Additions Leah Davis, Closing Manager Leah joined MHEG as a Closing Manager in May 2021. 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. Leah has over 15+ years of paralegal experience.

Carmen Clyde, Financial Analyst Carmen joined MHEG as Financial Analyst in August 2021 in our Omaha office. Her duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Carmen has over 20+ years accounting experience recently serving as an Accounting Manager for Lueder Construction.

Emily Coleman, Financial Analyst Emily joined MHEG as Financial Analyst in May 2021 in our Omaha office. Her duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/ workouts as needed. Emily is a recent graduate from the University of Nebraska at Omaha, majoring in Business Administration and concentrations in Real Estate and Land Use Economics.

Dallas joined MHEG as a Closing Manager in November 2021. 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. Dallas has over 5+ years’ experience in LIHTC development. She most recently worked for Yarco Company as a Development Coordinator.

Laura joined MHEG as our Associate Counsel – Real Estate in November 2021 in our Omaha office. Her duties will include leading the Closing Managers through the due diligence collection/review process to keep our investments on track as well as handling MHEG’s entity formation and corporate filings. Laura will also draft and review contracts and amendments related to MHEG’s real estate transactions, and will work/coordinate with outside counsel as needed. Laura has over 7+ years’ experience in real estate law. Most recently she worked for Metonic Real Estate Solutions as Associate General Counsel.

Sara Schwartz, Corporate Staff Accountant Sara joined MHEG as a Corporate Staff Accounting in January 2022 in our Omaha office. She will work closely with the Controller and CFO to assist in a variety of accounting tasks. Sara has over 10+ years’ experience in various accounting roles, most recently she served as a Payroll Analyst for Kiewit.

MHEG in a Minute l P5

Property & Resident Spotlight

P4

Portfolio Update

P4

Staff - Additions & Spotlight

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© Midwest Housing Equity Group

Hillary joined MHEG as a Closing Manager – Real Estate in December 2021. She will work closely with the Acquisitions Managers to close our Funds’ investments in various developments. Her duties will include leading our real estate due diligence process across the portfolio, working closely with our lawyers, title companies and surveyors to assure the operating partnerships hold clean title to the real estate. Hillary has over 10+ years’ paralegal experience, in particular working with real estate matters. She previously worked for Polsinelli as a Real Estate Analyst.

Cheri Culbertson, Administrative Assistant Cherí joined MHEG as our new Omaha Administrative Assistant in January 2022. She is responsible for providing administrative support to MHEG’s C-suite, in addition to assisting with various duties for all staff. Cherí has over 20+ years’ experience in various administrative roles. Most recently she worked for Lincoln Financial.

We’re growing and MHEG is looking to add to our team! We offer competitive pay and great benefits including work from home arranagements. For complete job descriptions and requirements, visit our website’s Employment page. To apply, email your resume to Keely McAleer - kmcaleer@mheginc.com.

Fund Staff Accountant

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Hillary Shields, Closing Manager - Real Estate

We’re Hiring!! Financial Analyst

P1

MHEG & MHDF Updates

Kara joined MHEG as a Compliance Specialist in November 2021 in our Omaha office. Her duties will include monitoring the initial lease-up of new properties as well as monitoring existing MHEG properties for the compliance period ensuring that residents comply with all rent, income and other regulatory restrictions applicable to each property. Kara has over 25+ years in LIHTC compliance. She previously worked for NP Dodge Management.

Laura Wilson, Associate Counsel - Real Estate

Mike joined MHEG as a Director of Acquisitions in December 2021. He is responsible for originating, underwriting, and closing equity investments in affordable housing developments financed with tax credits in compliance with MHEG’s processes, procedures and credit standards. He will also be responsible for developing and maintaining relationships with current and potential developers. His region will cover Missouri and Arkansas. Michael has over 20+ years’ experience in the housing industry.

CEO Message & Recent Happenings

Kara Tuccitto, Compliance Specialist

Dallas Anderson, Closing Manager

Mike Williams, Director of Acquisitions

Content

Director of Acquisitions

Compliance Specialist

MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. l Spring 2022


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