MHEG in a Minute - Winter 2022

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Keeping you up to date on MHEG in just a minute’s time. l Winter 2022 MHEG in a Minute Sign up for our e-newsletter @ © Midwest Housing Equity Group Content CEO Message & Recent Happenings P1 P1 P2 P4 Portfolio Update MHEG & MHDF Updates Property & Resident Spotlight Staff - Additions P5

Season’s Greetings Friends! It is my sincere hope that, despite the uncertain economic environment and steep interest rate increases, 2022 has been a success for each of you!

At this time of year, I like to reflect on MHEG and our mission of changing lives. I’m excited to announce that last month when we closed MHEG Fund 56, MHEG surpassed just over $3 billion of private sector capital raised for investment into affordable rental housing. What a huge milestone for MHEG and for all of our partners! We are making a difference. Once deployed, that equity will help create around 30,000 safe, quality homes for thousands of people. We also closed our 700th acquisition in November. Another milestone as we near completion of 2022. Year to date, we’ve closed 38 new investments in our portfolio, helping finance over 1,600 units of quality affordable housing. And we still have two weeks of December to go!

I am excited for even greater things in 2023 as MHEG kicks off its 30th Anniversary of Changing Lives. We will commemorate this occasion with partner appreciation dinners throughout the year (usually held in conjunction with each State’s affordable housing conference). We have also redesigned our website and will be launching it in January. As I reflect on MHEG’s growth and achievements, it is vital to recognize the staff that make up our MHEG family. We have an incredibly talented team. Their work and dedication, day in and day out, is how MHEG got this far. To the MHEG Team, thank you!

The colder weather and holiday season are an excellent reminder that what we all do truly matters. It may seem repetitive to end each message by thanking you, but I appreciate all of you and what you contribute to MHEG and our mission, regardless of how long you’ve been with us. Thank you to our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2022 a successful year. Thank you for letting 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. I look forward to celebrating MHEG’s 30 years with you in 2023 and changing more lives for a better tomorrow.

All the best, John Wiechmann

In April 2022, MHEG participated in the ground breaking for The Cottages, a 50 unit tiny homes deal developed by Arch Icon and partnered with Siena Francis House in downtown Omaha, Nebraska (right), and the Hidden Brook Townhomes ribbon cutting in Fremont, Nebraska, with Mesner Development Company (left).

Underwood Terrace, LP

Developed by: Three Rivers Community Action, Inc.

CHI Tulip Tree, LLLP

Developed by: Community Housing Initiatives

Shenandoah Senior Villas, LP

Developed by: North Star Housing, LLC

Rodeo Hills, LLC

Developed by: Sunview Development, LLC

Shadow Lake Apartments, LLC

Developed by: Sheltering Tree, Inc.

OPG Holdsworth Partners, LLC

Developed by: Overland Property Group

OPG South Lake Partners, LLC

Developed by: Overland Property Group








Total Units Closed between October and November 2022 284

CEO Message & Recent Happenings Changing Lives in
MHEG in a Minute l P1 MHEG Portfolio as of 12/1/2022 Developments 701 Units 23,792 Counties Represented 243 Cities Represented 309 Vacancy Percentage 5.53%* Debt Coverage Ratio 1.86* Portfolio Updates
figures using stabilized developments only, vacancy percentage is using economic vacancy.
Location Units Date
*Data compiled from 9/30/22
Q4 2022 Developments Fund
56 Lake City, MN 32 OCT
54 Marion, IA 40 OCT
56 Shenandoah, IA 40 OCT
54 Dodge City, KS 40 NOV
56 Papillion, NE 48 NOV
56 Kerrville, TX 36 NOV
56 Grinnell, IA 48 NOV
Total Units Closed in 2022 1,546

MHEG is Expanding: Montana and North Dakota

Scott Fitzpatrick, Director of Acquisitions

As you may have read in our earlier newsletters, MHEG has recently added several new states to our footprint. For me that means that my territory has grown to include Iowa, Minnesota, North Dakota, Montana, and Wyoming.

I am pleased to report that we have now secured and closed on our first development in the state of Montana. Bicentennial Apartments is the acquisition/rehabilitation of former HUD 202 development containing 58 units that serves seniors 62 years of age and older. We partnered with Dawson Holdings, Inc. on this project. Dawson Holdings is an experienced developer that is active in the western United States.

In addition, we have now secured our first acquisition in North Dakota. We are proud to be partnering with Beyond Shelter, Inc. Beyond Shelter is an experienced non-profit developer that is active in North and South Dakota, as well as Minnesota. The Plaza Apartments is a new construction development that will contain 39 units for seniors 55 years of age and older.

We have closed on several deals in the past few months as well, which include Graceview Court II with Immanuel (Council Bluffs, IA), Underwood Terrace with Three Rivers Community Action (Lake City, MN), Tulip Tree Apartments with Community Housing Initiatives (Marion, IA), and Shenandoah Senior Villas with North Star Housing (Shenandoah, IA).

Lastly, we were pleased to work with the LIHTC community and staff from the Iowa Finance Authority to create a new Qualified Allocation Plan that will be more responsive to the rapidly changing economic climate that we have been experiencing.

We look forward to what I am sure will be an exciting year ahead, opportunities to reconnect with old friends and develop new relationships.

New Kansas Affordable Housing Tax Credit!

Brad Reiff, Director of Acquisitions

It is an exciting time to be in affordable housing in Kansas. In addition to other new or expanded housing programs, the State of Kansas will have a state LIHTC in 2023 titled the Kansas Affordable Housing Tax Credit (KAHTC). The KAHTC is a dollar for dollar match of the federal credit for both 4% and 9% deals and should allow Kansas Housing Resources Corporation, MHEG and our partners to stretch the federal resources more and develop additional housing in Kansas. I look forward to helping you with your syndication needs on both federal and state credits in 2023.

Towards the end of July, KHRC announced the 2022 awards of tax credits, HOME and National Housing Trust Fund (NHTF) dollars. MHEG and our partners had another successful year in Kansas. One such example is the Timbers Preservation Project, with Manske & Associates and the Cerebral Palsy Research Foundation. The Timbers is an existing Section 8 Project Based property for people with disabilities. The award of tax credits and NHTF, as well as HOME Program funds through the City of Wichita will allow the replacement of 18 units, creating new, modern units with enhanced accessibility features. We are proud to partner with this team to ensure continued successful operation of the Timbers.

MHEG was also happy to see the completion of construction on several developments over the past several months. This included the Stonepost Lofts in Hays, Kansas. Developed by Overland Property Group, Stonepost Lofts is the historic adaptive-reuse of the former Washington Elementary School into an 18-unit family development.

MHEG & MHDF Updates
l Winter 2022
Keeping you up to date on MHEG in just a minute’s time. Stonepost Lofts in Hays, Kansas Above: Bicentennial Apartments in Dillon, Montana. Below: Rendering of The Plaza Apartments in Fargo, North Dakota. Both properties are the first MHEG acquisitions in their respective state, as part of our new expansion.

MHEG & MHDF Updates

Government Affairs Update

This fall, the Affordable Housing Tax Credit Coalition announced that the Villages at A New Leaf in Owasso, OK, was selected as a recipient of the Charles L. Edson Tax Credit Excellence Award for Housing for Special Populations category. The Villages at A New Leaf, co-developed by A New Leaf, Inc. and Excel Development Group, and syndicated by MHEG, provides 62 affordable homes serving people with developmental disabilities and autism. The property is part of an “agrihood”, a type of planned community that integrates agriculture and farming into the residential neighborhood and represents the first of its kind in Oklahoma. As a result of this property’s unique agricultural features, residents of The Villages at A New Leaf are not only provided with safe, stable, and affordable homes, but also with employment opportunities right onsite. We appreciate that Oklahoma Senator James Lankford recently visited Villages at A New Leaf to see firsthand the incredible impact of this property and how it serves its residents.

While we are still waiting on one uncalled House race, it’s clear that Republicans will have a majority in the House next Congress, albeit a slim majority. At this point, the breakdown in the House next Congress currently sits at 221 for Republicans to 213 for the Democrats. In the Senate, Democrats will remain the majority party, and will have a 51-seat majority next year after incumbent Senator Raphael Warnock (D-GA) won his run-off election. Also, even though Senator Kyrsten Sinema (I-AZ) recently changed her party affiliation from Democrat to Independent, she will maintain her committee assignments, meaning she is effectively still caucusing with the Democrats. The 118th Congress convenes on January 3.

In September, a continuing resolution (CR) was passed to fund the government through December 16. 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 2023. As we near year-end, Congress must pass a bill to keep the government funded beyond December 16. In addition, there are ongoing conversations in both chambers about trying to include key tax priorities, such as tax extenders or other tax items, in a year-end spending bill. However, with limited calendar days left, Congress could potentially just pass a longer CR into the new Congress, which would complicate the legislative process of attaching any-year end tax legislation. This includes trying to add key provisions to strengthen the Housing Credit.

Recently, Rep. DelBene (D-WA) and Rep. Wenstrup (R-OH), along with 54 House members, asked House leadership to include important Housing Credit provisions in any year-end legislation. The bipartisan letter seeks to increase the affordable housing supply by restoring the 12.5% temporary Housing Credit allocation increase that expired at the end of 2021, along with lowering the 50 percent bond financing test to 25 percent. We need additional Housing Credit resources now more than ever to help address the affordable housing crisis. Within the MHEG footprint, Rep. Bacon (R-NE), Rep. Estes (R-KS), Rep. Feenstra (R-IA), Rep. Johnson (R-SD) and Rep. LaTurner (R-KS) all signed the letter in support. A big thanks to each of them for their support!

During the Memorial Day recess, we helped organize a successful grand opening event with Senator Jerry Moran (R-KS) and Overland Property Group at Stonepost Lofts in Hays, KS. In addition, during the August congressional recess, we helped coordinate a ribbon cutting event with our partners at Lloyd Companies for Heartland Heights in Rapid City, SD, that Rep. Dusty Johnson (R-SD) participated in.

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.

MHDF Update

Lara Huskey, MHDF EVP

Creation and preservation of affordable housing doesn’t happen without partnerships. We at MHDF are excited about new-to-us loan participations. Our participating lenders make meaningful capital investments in specific affordable rental housing properties while relying on us for the loan management and oversight. Our borrowers benefit from the consolidated processes at MHEG and MHDF, giving them less points of contact during the development process. We appreciate you, Capitol Federal Savings Bank, Home Federal Savings and Loan (Grand Island, NE), REI Oklahoma (Durant, OK), and Spark Capital (Omaha, NE) for your willingness to participate with MHDF. Lenders interested in exploring the possibility of an MHDF loan participation please contact our President, Dave Fisher, at

In June, MHDF received welcome news that we will be receiving a $6 million grant from the U.S Treasury CDFI Fund Capital Magnet Fund program. Just like many of you, we have been laser-focused on the management of our resources in this rising interest rate and inflationary environment. MHDF is working daily to mitigate this as best we can in our loan products for our customers. The Capital Magnet Fund grant enables us to offer some interest rate relief and other favorable terms on qualifying loans. We remain aware and educated about the effects of higher rates coupled with unprecedented construction cost increases on the provision of affordable rental housing in our region.

Jim Rohn

“Whatever good things we build end up building us.” –
MHEG in a Minute l P3

Property & Resident Spotlight

Victory Apartments II, Omaha, Nebraska Meet Bill

He’s humble and doesn’t need much. He’s not much of a social person outside of his church activities, but he does have a lot of stories he could tell. He’s traveled the world. From Ireland to Egypt, Zambia to Argentina, Ethiopia and more, he’s seen a lot. He served in the U.S. Army, spending time stateside and overseas. Once discharged, he took a job in the states that allowed him to travel. He’s been to all of the fifty states.

“I’ve lived most of my life in hotels...I haven’t really been homeless, but I’ve been running around all the time,” he reminisces. He landed in Omaha in the 1970’s and found a church community he didn’t want to leave. Although he traveled, he kept the Omaha area as his home. He’s lived in a few different apartments, sometimes with a roommate to get by, and sometimes alone.

“I always had this pie in the sky idea that I was going to set the world on fire, and I did a lot of things that other people couldn’t do because of my traveling, but I never really lived the luxury lifestyle or anything like that,” Bill states. “It seemed like every time I made a financial decision, it was always a bad one. So I’ve been able to survive by being here.”

Bill moved into Victory Park II in the fall of 2020. Victory Park II is a second phase to the Victory Apartments acquisition rehabilitation of Victory Apartments and located adjacent to Phase I on the previously occupied Grace University campus. The 60-unit apartment building consists of one-bedroom and studio units to house previously homeless veterans. The development also provides access to a full range of medical services and case management through the Department of Veteran Affairs, addiction counseling, access to a food pantry, cooking clinics, job training, community social events and other supportive services from Together, Inc., all at no cost to the veterans.

“If it wasn’t for this, I don’t know what I would do. I would have a tough time, with my income and my expenses,” he comments. The apartment has everything he needs, a bedroom, a nice sized bathroom, and a kitchen and living area. Bill is also very thankful for the elevator in the building due to his health conditions, stairs can be difficult. He was given some furniture when he moved in and a television, although he doesn’t watch it much. “No one living here has any money, and I don’t either. ” He continues, “This is a great place to live, it’s quiet, it’s safe. It’s small, but it has everything I need.”

Victory Apartments II was made possible for Bill and other veterans through the use of the Low Income Housing Tax Credit Program.

Victory Apartments II

“It’s really been a big blessing. It’s made it possible for me to live.”
General Partner Victory Apartments, II - Omaha GP, LLC Developer Burlington Capital Real Estate LLC Property Manager Burlington Capital Properties Equity
Keeping you up to date on MHEG in just a minute’s time. l Winter 2022
Invested $5.6 million

Staff - Additions

Recent Staff Additions

Karyn Johnson, Closing Manager

Karyn joined MHEG as a Closing Manager in June 2022. She will work closely with the acquisitions team 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. Karyn has over 20+ years’ experience in various financial roles with a focus in mortgage loans. More recently she worked for Midwest Heritage Bank.

Patrick Harmon, Financial Analyst

Patrick joined MHEG as Financial Analyst in April 2022 parttime, beginning full-time in June 2022 in our Omaha office. His duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/ workouts as needed. Patrick graduated from University of Nebraska at Lincoln in May with a B.A. in Finance with a minor in Accounting.

Misty Thorkildsen, Asset Manager

Misty joined MHEG as an Asset Manager in August 2022 in our Oklahoma City office. Her duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Misty has almost 10 years’ experience in various real estate roles with a focus in leasing, rent collection and property management. She most recently worked as a civilian for the U.S. Army overseas in Germany as a Housing Manager.

Edgar Silva, Director of Acquisitions

Edgar joined MHEG as a Director of Acquisitions in August 2022 in our Oklahoma City office. 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 Oklahoma and Texas. Edgar has over 3 years’ real estate experience, and most recently worked for OHFA. He has a B.A. in Finance from the University of Central Oklahoma and his MBA from Mid America Christian University.

James Grover, Fund Staff Accountant

James joined MHEG as a Fund Staff Accountant in October 2022 in our Omaha office. He will work closely with the Senior Fund Accountant and Controller to assist in a variety of accounting tasks. James has over 7+ years’ experience in various financial and accounting roles. He most recently worked for Nebraska Medicine. He has a B.A. in Accounting from San Diego State University and his Master of Science in Forensic Accounting from Liberty University.

Anne Andrew, Financial Analyst

Anne joined MHEG as a Financial Analyst in November 2022. Her duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Anne has over 30+ years’ experience in various housing roles from property manager to Director of Operations. She most recently worked for Liberty Property Management Company.

Jamie Corsey, Compliance Specialist

Jamie joined MHEG as a Compliance Specialist in November 2022 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. Jamie has over 8+ years’ experience in property management and housing. She most recently worked for Willowick Residential.

Michael Barrera, Financial Analyst

Michael joined MHEG as a Financial Analyst in December 2022. His duties will include overseeing a development portfolio with financial reviews, site visits and problem resolution/workouts as needed. Michael has over 8+ years’ experience in accounting roles, in addition to various operations management and customer service management positions. He most recently worked as a Staff Accountant for Outdoorsy.

MHEG in a Minute l P5
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