January 2013 newsletter

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

Volume 6, Issue 1

MHEG Celebrates 20 Years

Inside this Issue: Recent Highlights

1

CEO Update

2

State Updates

2, 3

Recent Events

4

Closed Acquisitions

5

Staff Announcements

5

Upcoming Events

6

Monthly LIHTC Rates October 2012 70% PV

30%PV

AFR

7.38%

3.16%

2.36%

13520 California St., Ste. 250 Omaha, NE 68154

November 2012 70% PV

30%PV

AFR

7.38%

3.16%

2.40%

December 2012 70% PV

30%PV

AFR

7.38%

3.16%

2.40%

January 2012

Upcoming Events January

OHFA Board of Trustees Meeting: Jan. 30th Oklahoma City, OK - OHFA Office

70% PV

30%PV

AFR

7.36%

3.16%

2.31%

February 2013

NIFA Housing Innovation Conference, Jan. 29th-30th Omaha, NE - Marriott Regency NE Annual Appreciation Dinner, Jan. 29th Omaha, NE

30%PV

AFR

7.40%

3.17%

2.52%

Portfolio Update Units

February

347 9,660

Kansas Tax Credit Applications due - Feb. 1st Nebraska Tax Credit Applications due - Feb. 4th

Counties Represented

NIFA Board Meeting, Feb. 15th Lincoln, NE - NIFA Board Room

Vacancy Percentage

3.71%*

Debt Coverage Ratio

1.56%*

Cities Represented

133 164

Information current as of 1/15/13 *Percentage compiled from 9/30/12 figures

March

OHFA Board of Trustees Meeting: Mar. 27th Oklahoma City, OK - OHFA Office

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

April

NIFA Board Meeting, Apr. 19th Lincoln, NE - NIFA Board Room

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

MHEG 20th Anniversary Celebration, Apr. 18th Omaha, NE - Henry Doorly Zoo 6

With a New Look and Website

MHEG is turning 20! And we’re celebrating with a new look and website to help us grow into the next twenty years. We also have big party plans to honor this special occasion. Be on the look out for save the dates.

When developing our new brand we wanted it to convey our passion for affordable housing as well as showcase the collaboration of partners it takes to achieve our mission. So we chose bright colors and an image of four individual houses coming together to create something much more. We hope you enjoy the new look as much as we do.

Our newly redesigned website should be easier to navigate and will include more features such as an interactive portfolio map and a digital publishing viewer. But if you’re looking for something and cannot find it please contact Keely McAleer for assistance.

One big change you’ll notice on the website is we’re moving our investor reports and voting from our website to an investor portal hosted by Integratec. This new portal will make finding, accessing and downloading reports much easier. You will still go to our homepage to log-in, but you’ll be redirected to another site.

Unfortunately, as we finalize the transition from our old website to the new portal, these reports will not be available online. So if you need anything, from a past K1 to a Quarterly Report, please contact Rachel Wiesner. She will be able to assist you with your requests. Once the new portal is complete (by mid-February) we will contact you with your new password and log-in credentials. Thank you in advance for your patience as we make this change.

A BIG thank you to Turnpost Creative Group for designing our new logo and website and Integratec for the investor portal. **Please note, if you have a copy of our old logo, contact Keely McAleer for our new logo for future use.**

70% PV

Developments

January 2013

MHEG Raises Over $92M in 2012 We are excited to announce that MHEG was able to raise over $92 million in equity capital in 2012. The equity total is comprised from IF VII, L.P., Kansas Fund X, L.P., Nebraska Fund XVII, L.P., and Oklahoma Fund IV, L.P. The equity raised in these funds will assist in the development of multiple properties and help create close to a thousand units of affordable housing.

Investors closed in 2012 included: Adams Bank & Trust, American Fidelity Assurance Company, BancFirst, Bank of the West, Capital City Bank, Capitol Federal Savings Bank, Commerce Bank, Community State Bank, Farm & Home Insurance Agency, Farmers and Merchants Investment, Inc., First National Bank of Omaha, Five Points Bank, Girard National Bank, Morgan Federal Bank, Northwestern Mutual Life Insurance Company, Pinnacle Bank, Two Rivers Bank & Trust, UMB Bank, United Bank & Trust, Wells Fargo, West Bank and West Gate Bank.

Spectrum Includes Open Door Mission in Charitable Giving The Spectrum Companies have a long history of donating to charities throughout the country. Starting in 2012, Spectrum decided to start including separate donations to reflect the work they do with affordable housing.

For every new property they begin working with they will donate $35 (the equivalent of one move-in approval charge) to select charitable organizations.

The Open Door Mission of Omaha, NE was selected as one of their 2012 charities. They received over $2500 from Spectrum.

The Spectrum Companies have been providing compliance services for over 25 years for affordable housing. MHEG is proud to partner with such a great organization.

Above: Laurie Stephenson (left) and Lisa Blalock (right) of MHEG present Richard Denherder of Open Door Mission with the check from Spectrum.

1

Volume 6, Issue 1

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

Kansas Update

CEO Update

Pat Michaelis

John Wiechmann Happy New Year! I hope that 2012 was a prosperous year for each of you and that your 2013 is off to a great start! Thanks to our outstanding team here at Midwest Housing, 2012 was a great success for us.

We closed investments in 28 different projects, representing equity commitments of over $142 million which will result in the creation of over 1,062 units of quality affordable housing throughout the Midwest.

This achievement would not have been possible without your trust, support and confidence in Midwest Housing - thanks to each of you too!

We are excited for even greater things in 2013. This year is Midwest Housing’s 20th Anniversary! We expect to reach two great milestones over the next twelve months - participating in the creation of our 10,000th unit and reaching $1 billion (with a “b”) in capital deployed since inception. The Anniversary and these benchmarks provide an excellent reason to honor and celebrate our partners, supporters, volunteers and team members who made this happen. On April 18, 2013, Midwest Housing will host a dinner and celebration in Omaha, Nebraska at the Henry Doorly Zoo’s newly remodeled Suzanne and Walter Scott Aquarium - watch your inboxes for more details. And as you may have noticed as you read this newsletter, Midwest Housing has rebranded as part of the 20th Anniversary celebration. Please take a minute to review our new logo and corporate image and visit our updated website at mheginc.com.

January 2013

fixed rate for projects allocated tax credits by December 31, 2013, there is still much work to be done. Both Democrats and Republicans are considering corporate tax reform - any overly broad proposals may jeopardize the future of the LIHTC. It is important to communicate just how effective this public/private partnership is in providing affordable housing. We have found that one of the most effective communication methods is to invite Senators and Representatives to groundbreakings, ribbon cuttings and especially open houses to see the finished product and meet the tenants. If you haven’t already done so, please join the Affordable Housing A.C.T.I.O.N. coalition. Their website (www. rentalhousingaction.org) is an excellent source of advocacy information and includes an “advocacy toolkit” and State-specific fact sheets, all of which are very helpful when contacting your elected officials.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2012 such a great year! We at MHEG look forward to partnering with all of you again for an even better 2013.

Kindest regards, John Wiechmann

On the legislative front, please stay in communication with your Congressional delegation. While Congress did extend the 9%

KF X, L.P. closed three projects this past quarter funded by ten investors including first timers Morgan Federal Bank and Girard National Bank. 2012 was a good year, we provided 266 units of affordable housing for families and seniors. We thank and appreciate all for their partnership.

I want to tell you about another event MHEG and the Kansas staff support.

This was the 14th year for “Party with a Purpose”, held each December.

The mission of Party with a Purpose is to create an environment where, not only good friends and new acquaintances have a Christmas ‘party’ together, but use the time and energy to help other people in our community. This is an attempt to add meaning, “purpose”, to the celebration of Christmas time. We had 225 people in attendance this year and adopted 28 families.

Our gifts had meaning and our party had a great purpose.

However, the real focus is to ‘change’ the givers! By participating, we open our eyes to see the needs in our community and help develop a culture of giving. Chris, Jessica, Lisa and I were very pleased to take part in this annual event.

2013 looks to be an interesting year. Balancing the budget, tax reform, and floating or fixed rate, all have an impact on our industry. Please call if you have questions. We may not know the answer, but we will work to find one. We look forward to working with you in 2013.

Above: Pat Michaelis (MHEG), Tim Schaller (Architect), Cliff and Kathy Mesner (Mesner Development Co.), Sophie George and John Johnston (Topeka Housing Authority), and Becky Christoffersen (MHEG) are recognized by KHRC for the project.

Right: Pat Michaelis (MHEG) visits with conference attendees at the KHRC Bringing Kansas Home conference in Wichita, Kansas.

Nebraska Update Thomas Judds

Iowa Update

Today is my 12 year anniversary at MHEG, and I’m writing this update from Scottsbluff, Nebraska. Each time I make the panhandle trip, I teasingly say, “I’m on the west coast swing.” Those of you who are golfers will chuckle - for those nongolfers, it’s in reference to the professional golf tour’s series of tournaments in southern California.

The Iowa office capped off a busy fourth quarter of 2012 with six closings. Currently we have seven projects under construction along with four projects in lease-up.

What’s ironic about this is...this morning when I set out for Scottsbluff it was 14 degrees and lightly snowing at home. To my surprise, when I stepped out of my car in SB, the mercury showed 73 degrees - drenched in sun with calm winds. Maybe, just maybe, I am in San Diego? Mother Nature has a sense of humor too.

Applications for the 2013 tax credit round were due to the Iowa Finance Authority (IFA) on December 10th, 2012. 2013 promises to be another competitive year as IFA received 38 applications. MHEG supported 17 applications for the 2013 round. Reservations from IFA are anticipated in March of this year, providing projects with an improved ability to start construction before winter.

Now for some shop talk. NF XVII, L.P. closed three projects last month for a total of over $23M in equity, providing housing for 270 qualified households. I have spent January raising capital to finish up NF XVII, L.P. I am very blessed by all the investor partners that continue to support the Nebraska fund. The trust and confidence they place in MHEG is so humbling. Once fundraising is complete, we expect to close our last project into the fund.

Dan Garrett

Looking ahead, we anticipate a busy spring with tax credit reservations and the process of updating the Qualified Allocation Plan for 2014.

Applications for NIFA’s CRANE allocation and Round 1 threshold are due February 4th. MHEG has written nearly 20 letters of intent for a total of $65M in equity and approximately $6M in credits. NIFA’s QAP states approximately $1.3M will be allocated for Round 1.

Oklahoma Update Andrea Frymire I hope everyone had a wonderful holiday season with family and friends. Although I’m not one to make New Year’s resolutions, I am excited for 2013 both professionally and personally.

With our new strategic plan, I will begin to cover NW Arkansas and northern Texas. The geographic expansion will also expand our investor and developer partners. In just the first few weeks of January, I’ve already received requests from developers. It is exciting to continue to spread our mission and to reach our company goals.

Above: John Wiechmann (left) speaks at the grand opening for Capital City Duplexes (IF VI, L.P.) in Des Moines, Iowa on November 19, 2012.

The recently renovated project (pictured right) will provide an additional 16 units for the Des Moines community.

2

Oklahoma Fund IV, L.P. is close to closing, we are waiting on documents from one final investor. With the closing of this Fund, we will have raised the highest dollar amount to date in our state, just shy of $43M. These funds will be disbursed among eight projects and construct 245

units of housing throughout our great state.

Personally, my daughter continues to grow and flourish into a quirky little lady. We are gearing up for Girl Scout cookie sales, and she is setting a big goal of 600 boxes for the year. As we were discussing her goal, I told her it was going to take a lot of hard work and dedication on her part. She says she is up for the task and is excited to set up her cookie headquarters. I’m not sure if there is a better working environment than a desk surrounded by cases of cookies!

My wish for everyone this year is that we all have the dedication and persistence to reach our goals, whatever they may be.

3

Volume 6, Issue 1

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

Kansas Update

CEO Update

Pat Michaelis

John Wiechmann Happy New Year! I hope that 2012 was a prosperous year for each of you and that your 2013 is off to a great start! Thanks to our outstanding team here at Midwest Housing, 2012 was a great success for us.

We closed investments in 28 different projects, representing equity commitments of over $142 million which will result in the creation of over 1,062 units of quality affordable housing throughout the Midwest.

This achievement would not have been possible without your trust, support and confidence in Midwest Housing - thanks to each of you too!

We are excited for even greater things in 2013. This year is Midwest Housing’s 20th Anniversary! We expect to reach two great milestones over the next twelve months - participating in the creation of our 10,000th unit and reaching $1 billion (with a “b”) in capital deployed since inception. The Anniversary and these benchmarks provide an excellent reason to honor and celebrate our partners, supporters, volunteers and team members who made this happen. On April 18, 2013, Midwest Housing will host a dinner and celebration in Omaha, Nebraska at the Henry Doorly Zoo’s newly remodeled Suzanne and Walter Scott Aquarium - watch your inboxes for more details. And as you may have noticed as you read this newsletter, Midwest Housing has rebranded as part of the 20th Anniversary celebration. Please take a minute to review our new logo and corporate image and visit our updated website at mheginc.com.

January 2013

fixed rate for projects allocated tax credits by December 31, 2013, there is still much work to be done. Both Democrats and Republicans are considering corporate tax reform - any overly broad proposals may jeopardize the future of the LIHTC. It is important to communicate just how effective this public/private partnership is in providing affordable housing. We have found that one of the most effective communication methods is to invite Senators and Representatives to groundbreakings, ribbon cuttings and especially open houses to see the finished product and meet the tenants. If you haven’t already done so, please join the Affordable Housing A.C.T.I.O.N. coalition. Their website (www. rentalhousingaction.org) is an excellent source of advocacy information and includes an “advocacy toolkit” and State-specific fact sheets, all of which are very helpful when contacting your elected officials.

Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2012 such a great year! We at MHEG look forward to partnering with all of you again for an even better 2013.

Kindest regards, John Wiechmann

On the legislative front, please stay in communication with your Congressional delegation. While Congress did extend the 9%

KF X, L.P. closed three projects this past quarter funded by ten investors including first timers Morgan Federal Bank and Girard National Bank. 2012 was a good year, we provided 266 units of affordable housing for families and seniors. We thank and appreciate all for their partnership.

I want to tell you about another event MHEG and the Kansas staff support.

This was the 14th year for “Party with a Purpose”, held each December.

The mission of Party with a Purpose is to create an environment where, not only good friends and new acquaintances have a Christmas ‘party’ together, but use the time and energy to help other people in our community. This is an attempt to add meaning, “purpose”, to the celebration of Christmas time. We had 225 people in attendance this year and adopted 28 families.

Our gifts had meaning and our party had a great purpose.

However, the real focus is to ‘change’ the givers! By participating, we open our eyes to see the needs in our community and help develop a culture of giving. Chris, Jessica, Lisa and I were very pleased to take part in this annual event.

2013 looks to be an interesting year. Balancing the budget, tax reform, and floating or fixed rate, all have an impact on our industry. Please call if you have questions. We may not know the answer, but we will work to find one. We look forward to working with you in 2013.

Above: Pat Michaelis (MHEG), Tim Schaller (Architect), Cliff and Kathy Mesner (Mesner Development Co.), Sophie George and John Johnston (Topeka Housing Authority), and Becky Christoffersen (MHEG) are recognized by KHRC for the project.

Right: Pat Michaelis (MHEG) visits with conference attendees at the KHRC Bringing Kansas Home conference in Wichita, Kansas.

Nebraska Update Thomas Judds

Iowa Update

Today is my 12 year anniversary at MHEG, and I’m writing this update from Scottsbluff, Nebraska. Each time I make the panhandle trip, I teasingly say, “I’m on the west coast swing.” Those of you who are golfers will chuckle - for those nongolfers, it’s in reference to the professional golf tour’s series of tournaments in southern California.

The Iowa office capped off a busy fourth quarter of 2012 with six closings. Currently we have seven projects under construction along with four projects in lease-up.

What’s ironic about this is...this morning when I set out for Scottsbluff it was 14 degrees and lightly snowing at home. To my surprise, when I stepped out of my car in SB, the mercury showed 73 degrees - drenched in sun with calm winds. Maybe, just maybe, I am in San Diego? Mother Nature has a sense of humor too.

Applications for the 2013 tax credit round were due to the Iowa Finance Authority (IFA) on December 10th, 2012. 2013 promises to be another competitive year as IFA received 38 applications. MHEG supported 17 applications for the 2013 round. Reservations from IFA are anticipated in March of this year, providing projects with an improved ability to start construction before winter.

Now for some shop talk. NF XVII, L.P. closed three projects last month for a total of over $23M in equity, providing housing for 270 qualified households. I have spent January raising capital to finish up NF XVII, L.P. I am very blessed by all the investor partners that continue to support the Nebraska fund. The trust and confidence they place in MHEG is so humbling. Once fundraising is complete, we expect to close our last project into the fund.

Dan Garrett

Looking ahead, we anticipate a busy spring with tax credit reservations and the process of updating the Qualified Allocation Plan for 2014.

Applications for NIFA’s CRANE allocation and Round 1 threshold are due February 4th. MHEG has written nearly 20 letters of intent for a total of $65M in equity and approximately $6M in credits. NIFA’s QAP states approximately $1.3M will be allocated for Round 1.

Oklahoma Update Andrea Frymire I hope everyone had a wonderful holiday season with family and friends. Although I’m not one to make New Year’s resolutions, I am excited for 2013 both professionally and personally.

With our new strategic plan, I will begin to cover NW Arkansas and northern Texas. The geographic expansion will also expand our investor and developer partners. In just the first few weeks of January, I’ve already received requests from developers. It is exciting to continue to spread our mission and to reach our company goals.

Above: John Wiechmann (left) speaks at the grand opening for Capital City Duplexes (IF VI, L.P.) in Des Moines, Iowa on November 19, 2012.

The recently renovated project (pictured right) will provide an additional 16 units for the Des Moines community.

2

Oklahoma Fund IV, L.P. is close to closing, we are waiting on documents from one final investor. With the closing of this Fund, we will have raised the highest dollar amount to date in our state, just shy of $43M. These funds will be disbursed among eight projects and construct 245

units of housing throughout our great state.

Personally, my daughter continues to grow and flourish into a quirky little lady. We are gearing up for Girl Scout cookie sales, and she is setting a big goal of 600 boxes for the year. As we were discussing her goal, I told her it was going to take a lot of hard work and dedication on her part. She says she is up for the task and is excited to set up her cookie headquarters. I’m not sure if there is a better working environment than a desk surrounded by cases of cookies!

My wish for everyone this year is that we all have the dedication and persistence to reach our goals, whatever they may be.

3

Volume 6, Issue 1

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

Groundbreakings, Ribbon Cuttings, Dedications and Events

January 2013

Closed Acquisitions

MHEG staff were able to take some time and enjoy the views and sites of San Franciso during NASLEF’s annual conference this past Septemeber.

Above Left: Tom Stratman, Mary Thompson (Dauby O’Connor & Zaleski), Jason Main, Sammy Ehtisham and Steve Gross.

Above Middle: Andrea Frymire, Rachel Wiesner and Sara Baker (Kutak Rock).

Above Right: Deb Swanson, Cindy Koster and Sammy Ehtisham.

Right: John Wiechmann (far left) attends and participates in a ribbon cutting for Crane Artist Lofts (far right) in Des Moines, Iowa on December 5, 2012. Joining Wiechmann, is Janet Latimer (Horizon Bank), Peter Noonan (Commerce Bank), Darlys Baum (IFA Board of Directors Chair), and Larry Olson (LWO Development).

DEVELOPMENT

FUND

CITY / STATE

UNITS

DATE

Corridor Woods Limited Partnership

IF VI

Iowa City, IA

22

August

Heritage Townhomes of Smith Center, LLC

KF IX

South Rock Creek Estates, LLC

OF IV

Smith Center, KS

8

September

Shawnee, OK

20

October

Hugo Affordable Housing, LLC Autumn Creek Villas, LP

OF IV

Hugo, OK

25

October

OF IV

Midwest City, OK

30

October

125 9th Street, LLLP

IF VII

Columbus Junction, IA

24

November

HRM III, LP

OF IV

McAlester, OK

38

November

FB Harlan, LP

IF VII

Harlan, IA

27

November

Paola Seniors, L.P.

KF X

Paola, KS

30

November

Fair Deal, L.P.

NF XVII

Omaha, NE

40

December

St. Margaret’s LIHTC, LP

KF X

Kansas City, KS

108

December

Baker Creek Senior Living I LLLP

IF VII

Des Moines, IA

33

December

Mannford Senior, Limited Partnership

OF IV

Mannford, OK

28

December

Stonewood Townhomes Phase II, LLC

NF XVII

Grand Island, NE

30

December

McKinley Crest, LLLP

IF VII

Des Moines, IA

60

December

Linden Woods II, LP

OF IV

Durant, OK

40

December

Riverview Senior Developers, LP

KF X

South Hutchinson, KS

36

December

West Heights Townhomes, LLLP

IF VII

Clinton, IA

30

December

Southern Meadows Homes, LP

IF VII

Des Moines, IA

38

December

Southgate Apartments Bellevue, LP

NF XVII

Bellevue, NE

200

December

Total Units Closed

867

Staff Announcements Left and Below: Guests at our Annual Kansas Appreciation dinner mingle and enjoy dinner at the Union Pacific Depot in Manhattan, Kansas on Sept. 13, 2012. The dinner coincided with the Kansas Housing Conference. We had over 60 people in attendance this year.

Kathi Mueller, Adminstrative Assistant Kathi was recently hired as the Administrative Assistant in our Omaha office. She will be responsible for providing secretarial support and administrative services for our CEO and COO, as well as all MHEG staff. Her main duties include covering the front reception area, answering all incoming calls and overseeing office equipment and supplies. Kathi has over 15 years experience in customer service and previously worked for Kleinfelder and CSG Systems Inc in Omaha. She started with MHEG on January 2nd.

Lisa Blalock, Compliance Assistant Lisa was recently hired as a part-time Compliance Assistant in our Omaha office. She will be responsible for assisting our compliance staff. Her main duties include document storage of files, completing audit sheets and data entry for our database.

Lisa just recently moved to the Omaha area and rejoined the workforce after staying home with her children and relocating her family across the country with her husband, who recently retired from the U.S. Navy. She started with MHEG on January 7th.

Dan Garrett, Director of Asset Management During the summer MHEG began the search for someone to take over our Director of Asset Management (DOAM) position, which was being held by our Chief Operating Officer, Ann Burge. It was decided in October that Dan Garrett, our Executive Vice President of Iowa Operations would take on the role.

Dan will be responsible for the management and leadership of MHEG’s asset management and compliance monitoring teams, managing a staff of eleven. He also participates in the selection of future properties to be acquired, oversees the transition of assets from underwriting to asset management, and is responsible for ensuring that the LIHTC portfolio remains in full compliance with all regulations.

Dan will also retain all EVP responsibilities for Iowa.

4

5

Volume 6, Issue 1

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

Groundbreakings, Ribbon Cuttings, Dedications and Events

January 2013

Closed Acquisitions

MHEG staff were able to take some time and enjoy the views and sites of San Franciso during NASLEF’s annual conference this past Septemeber.

Above Left: Tom Stratman, Mary Thompson (Dauby O’Connor & Zaleski), Jason Main, Sammy Ehtisham and Steve Gross.

Above Middle: Andrea Frymire, Rachel Wiesner and Sara Baker (Kutak Rock).

Above Right: Deb Swanson, Cindy Koster and Sammy Ehtisham.

Right: John Wiechmann (far left) attends and participates in a ribbon cutting for Crane Artist Lofts (far right) in Des Moines, Iowa on December 5, 2012. Joining Wiechmann, is Janet Latimer (Horizon Bank), Peter Noonan (Commerce Bank), Darlys Baum (IFA Board of Directors Chair), and Larry Olson (LWO Development).

DEVELOPMENT

FUND

CITY / STATE

UNITS

DATE

Corridor Woods Limited Partnership

IF VI

Iowa City, IA

22

August

Heritage Townhomes of Smith Center, LLC

KF IX

South Rock Creek Estates, LLC

OF IV

Smith Center, KS

8

September

Shawnee, OK

20

October

Hugo Affordable Housing, LLC Autumn Creek Villas, LP

OF IV

Hugo, OK

25

October

OF IV

Midwest City, OK

30

October

125 9th Street, LLLP

IF VII

Columbus Junction, IA

24

November

HRM III, LP

OF IV

McAlester, OK

38

November

FB Harlan, LP

IF VII

Harlan, IA

27

November

Paola Seniors, L.P.

KF X

Paola, KS

30

November

Fair Deal, L.P.

NF XVII

Omaha, NE

40

December

St. Margaret’s LIHTC, LP

KF X

Kansas City, KS

108

December

Baker Creek Senior Living I LLLP

IF VII

Des Moines, IA

33

December

Mannford Senior, Limited Partnership

OF IV

Mannford, OK

28

December

Stonewood Townhomes Phase II, LLC

NF XVII

Grand Island, NE

30

December

McKinley Crest, LLLP

IF VII

Des Moines, IA

60

December

Linden Woods II, LP

OF IV

Durant, OK

40

December

Riverview Senior Developers, LP

KF X

South Hutchinson, KS

36

December

West Heights Townhomes, LLLP

IF VII

Clinton, IA

30

December

Southern Meadows Homes, LP

IF VII

Des Moines, IA

38

December

Southgate Apartments Bellevue, LP

NF XVII

Bellevue, NE

200

December

Total Units Closed

867

Staff Announcements Left and Below: Guests at our Annual Kansas Appreciation dinner mingle and enjoy dinner at the Union Pacific Depot in Manhattan, Kansas on Sept. 13, 2012. The dinner coincided with the Kansas Housing Conference. We had over 60 people in attendance this year.

Kathi Mueller, Adminstrative Assistant Kathi was recently hired as the Administrative Assistant in our Omaha office. She will be responsible for providing secretarial support and administrative services for our CEO and COO, as well as all MHEG staff. Her main duties include covering the front reception area, answering all incoming calls and overseeing office equipment and supplies. Kathi has over 15 years experience in customer service and previously worked for Kleinfelder and CSG Systems Inc in Omaha. She started with MHEG on January 2nd.

Lisa Blalock, Compliance Assistant Lisa was recently hired as a part-time Compliance Assistant in our Omaha office. She will be responsible for assisting our compliance staff. Her main duties include document storage of files, completing audit sheets and data entry for our database.

Lisa just recently moved to the Omaha area and rejoined the workforce after staying home with her children and relocating her family across the country with her husband, who recently retired from the U.S. Navy. She started with MHEG on January 7th.

Dan Garrett, Director of Asset Management During the summer MHEG began the search for someone to take over our Director of Asset Management (DOAM) position, which was being held by our Chief Operating Officer, Ann Burge. It was decided in October that Dan Garrett, our Executive Vice President of Iowa Operations would take on the role.

Dan will be responsible for the management and leadership of MHEG’s asset management and compliance monitoring teams, managing a staff of eleven. He also participates in the selection of future properties to be acquired, oversees the transition of assets from underwriting to asset management, and is responsible for ensuring that the LIHTC portfolio remains in full compliance with all regulations.

Dan will also retain all EVP responsibilities for Iowa.

4

5

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

Volume 6, Issue 1

MHEG Celebrates 20 Years

Inside this Issue: Recent Highlights

1

CEO Update

2

State Updates

2, 3

Recent Events

4

Closed Acquisitions

5

Staff Announcements

5

Upcoming Events

6

Monthly LIHTC Rates October 2012 70% PV

30%PV

AFR

7.38%

3.16%

2.36%

13520 California St., Ste. 250 Omaha, NE 68154

November 2012 70% PV

30%PV

AFR

7.38%

3.16%

2.40%

December 2012 70% PV

30%PV

AFR

7.38%

3.16%

2.40%

January 2012

Upcoming Events January

OHFA Board of Trustees Meeting: Jan. 30th Oklahoma City, OK - OHFA Office

70% PV

30%PV

AFR

7.36%

3.16%

2.31%

February 2013

NIFA Housing Innovation Conference, Jan. 29th-30th Omaha, NE - Marriott Regency NE Annual Appreciation Dinner, Jan. 29th Omaha, NE

30%PV

AFR

7.40%

3.17%

2.52%

Portfolio Update Units

February

347 9,660

Kansas Tax Credit Applications due - Feb. 1st Nebraska Tax Credit Applications due - Feb. 4th

Counties Represented

NIFA Board Meeting, Feb. 15th Lincoln, NE - NIFA Board Room

Vacancy Percentage

3.71%*

Debt Coverage Ratio

1.56%*

Cities Represented

133 164

Information current as of 1/15/13 *Percentage compiled from 11/30/12 figures

March

OHFA Board of Trustees Meeting: Mar. 27th Oklahoma City, OK - OHFA Office

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

April

NIFA Board Meeting, Apr. 19th Lincoln, NE - NIFA Board Room

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

MHEG 20th Anniversary Celebration, Apr. 18th Omaha, NE - Henry Doorly Zoo 6

With a New Look and Website

MHEG is turning 20! And we’re celebrating with a new look and website to help us grow into the next twenty years. We also have big party plans to honor this special occasion. Be on the look out for save the dates.

When developing our new brand we wanted it to convey our passion for affordable housing as well as showcase the collaboration of partners it takes to achieve our mission. So we chose bright colors and an image of four individual houses coming together to create something much more. We hope you enjoy the new look as much as we do.

Our newly redesigned website should be easier to navigate and will include more features such as an interactive portfolio map and a digital publishing viewer. But if you’re looking for something and cannot find it please contact Keely McAleer for assistance.

One big change you’ll notice on the website is we’re moving our investor reports and voting from our website to an investor portal hosted by Integratec. This new portal will make finding, accessing and downloading reports much easier. You will still go to our homepage to log-in, but you’ll be redirected to another site.

Unfortunately, as we finalize the transition from our old website to the new portal, these reports will not be available online. So if you need anything, from a past K1 to a Quarterly Report, please contact Rachel Wiesner. She will be able to assist you with your requests. Once the new portal is complete (by mid-February) we will contact you with your new password and log-in credentials. Thank you in advance for your patience as we make this change.

A BIG thank you to Turnpost Creative Group for their assistance with the logo and website and Integratec for the investor portal. **Please note, if you have a copy of our old logo, contact Keely McAleer for our new logo for future use.**

70% PV

Developments

January 2013

MHEG Raises Over $92M in 2012 We are excited to announce that MHEG was able to raise over $92 million in equity capital in 2012. The equity total is comprised from IF VII, L.P., Kansas Fund X, L.P., Nebraska Fund XVII, L.P., and Oklahoma Fund IV, L.P. The equity raised in these funds will assist in the development of multiple properties and help create close to a thousand units of affordable housing.

Investors closed in 2012 included: Adams Bank & Trust, American Fidelity Assurance Company, BancFirst, Bank of the West, Capital City Bank, Capitol Federal Savings Bank, Commerce Bank, Community State Bank, Farm & Home Insurance Agency, Farmers and Merchants Investment, Inc., First National Bank of Omaha, Five Points Bank, Girard National Bank, Morgan Federal Bank, Northwestern Mutual Life Insurance Company, Pinnacle Bank, Two Rivers Bank & Trust, UMB Bank, United Bank & Trust, Wells Fargo, West Bank and West Gate Bank.

Spectrum Includes Open Door Mission in Charitable Giving The Spectrum Companies have a long history of donating to charities throughout the country. Starting in 2012, Spectrum decided to start including separate donations to reflect the work they do with affordable housing.

For every new property they begin working with they will donate $35 (the equivalent of one move-in approval charge) to select charitable organizations.

The Open Door Mission of Omaha, NE was selected as one of their 2012 charities. They received over $2500 from Spectrum.

The Spectrum Companies have been providing compliance services for over 25 years for affordable housing. MHEG is proud to partner with such a great organization.

Above: Laurie Stephenson (left) and Lisa Blalock (right) of MHEG present Richard Denherder of Open Door Mission with the check from Spectrum.

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