Jun 2013 newsletter

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

Volume 6, Issue 2

June 2013

MHEG’s 20th Anniversary Celebration

Inside this Issue: Recent Highlights

1

CEO Update

2

State Updates

2, 3

Recent Events

4

Closed Acquisitions

7

Staff Announcements

7

Upcoming Events

8

Monthly LIHTC Rates February 2013

MHEG hosted its 20th Anniversary Celebration on Thursday, April 18th at the Henry Doorly Zoo’s Scott Aquarium and Conference Center. Thank you to everyone who traveled to Omaha for the evening. We had a little under 200 people attend, making it MHEG’s largest event to date.

Guests were able to enjoy a private stroll through the aquarium while visiting with MHEG staff at stations throughout showcasing MHEG over the past two decades. Guests enjoyed dinner during our 20 Year Presentation and a viewing of our commemorative video, MHEG: Changing Lives for 20 Years (which can be found on our website). The night ended with the Dueling Duo performing.

MHEG also presented the MHEG Pillar of Housing Awards to three individuals, Senator E. Benjamin Nelson, Sister Marilyn Ross and Jim Rieker. The Pillar of Housing Award recognizes individuals who have not only had a significant impact on MHEG, but have shown vision, leadership and commitment to improving affordable housing.

It was a great night of celebration with our many partners, and we hope all enjoyed the evening.

70% PV

30%PV

AFR

7.40%

3.17%

2.52%

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

March 2013 70% PV

30%PV

AFR

7.43%

3.18%

2.66%

April 2013 70% PV

30%PV

AFR

7.43%

3.19%

2.70%

Above: Guests enjoy visiting in the shark tunnel, the viewing of MHEG’s commemorative video, the Dueling Duo entertain the crowd

May 2013

Upcoming Events July

OHFA Board of Trustees Meeting: Jul. 17th Oklahoma City, OK - OHFA Office

70% PV

30%PV

AFR

7.41%

3.18%

2.60%

June 2013

Texas Housing Conference, Jul. 22nd-24th Austin, TX - Four Seasons

70% PV

30%PV

AFR

7.39%

3.17%

2.47%

August

Portfolio Update

NIFA Board Meeting: Aug. 16th Lincoln, NE - NIFA Board Room

Developments Units

Kansas Housing Conference: Aug. 27th-29th Lawrence, KS - KU Memorial Union

351 9,797

Counties Represented

134

Cities Represented

165

KS Annual Appreciation Dinner: Aug. 27th Lawrence, KS

Vacancy Percentage

5.32%*

Debt Coverage Ratio

1.64%*

September

Information current as of 6/15/13 *Percentage compiled from 3/31/13 figures, vacancy percentage is using economic vacancy.

HousingIowa Conference: Sep. 4th-6th Coralville, IA - Marriott

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.

OHFA Board of Trustees Meeting: Sep. 18th Oklahoma City, OK - OHFA Office NASLEF’s Annual Conference: Sep. 25th-27th Portsmouth, VA - Renaissance Portsmouth Hotel

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

October

NIFA Board Meeting: Oct. 18th Lincoln, NE - NIFA Board Room 8

MHEG Raises Over $22K for Moore Tornado Relief On the afternoon of May 20th, 2013, an EF5 tornado passed through the city of Moore, Oklahoma taking the lives of 24 individuals, injuring hundreds more and destroying over 1,150 homes. MHEG was fortunate in that our Oklahoma City office, our Oklahoma City properties and our staffs’ homes and families were safe and unharmed. But MHEG cannot overlook the thousands of people who were less fortunate. What started as a collection of money from staff to send down to Oklahoma City, turned into a challenge at our June 3rd Annual Meeting to our partners to raise at least $5,000. MHEG committed to match another $5,000. The compassion of our investors, developers and many partners did not disappoint. In fact, we were incredibly humbled to receive over $11,000 in pledges in just five hours. With MHEG’s increased match of $10,000 and additional contributions from MHEG staff, we will be donating over $22,000 to the Moore Tornado relief efforts; $10,000 to the Salvation Army and $10,000 to the American Red Cross, and over $2,000 to the Shelter Oklahoma Schools charity. We sincerely thank each and every one of you who donated to this cause.

Heritage Estates Ribbon Cutting Spring and summer tend to bring warmer weather and a calendar filled with events, such as grand openings and ribbon cuttings for developments. If you are ever invited to one of these celebrations, MHEG strongly encourages you to attend. It is a perfect opportunity to truly see how affordable housing changes the lives of residents for a better tomorrow.

Last month, MHEG participated in the Ribbon Cutting for Heritage Estates - six newly constructed duplexes located in Neodesha, Kansas. Each of the twelve units will provide three bedrooms, two baths and approximately 1,250 square feet. Heritage Estates’ first resident, Alicia Anderson, attended the May 30th event and was able to share her story. She expressed her sincere gratitude and reminded those in attendance of the real reasons why the work we do is so important. Congresswoman Lynn Jenkins (R), member of the House Ways & Means Committee also attended the event and remarked on the good that the Housing Credit does.

(L-R) Mayor Terry Harper, Pat Michaelis (MHEG), Conresswoman Lynn Jenkins, Mark Cox (Vintage Construction), Alicia Anderson (Heritage Estates resident) John Wiechmann (MHEG) and Dennis Mesa (Kansas Housing Resources Corp.)

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 Greetings from Omaha! It’s June, it’s hot and the College World Series is well under way! While watching these great college baseball teams play ball, I reflected on how each reached the CWS and achieved such success. Was it the coaching? Individual talent? Or something else? While coaching and individual talent played a role, it seemed that teamwork made these teams successful. Seeing the sacrifice flies and the sacrifice bunts really brought this home – individuals willingly subordinating their own achievements for the betterment of the team.

Teamwork got me thinking about our industry and how much of a role it plays in the development of affordable housing. Affordable housing development is a collaborative process. Every day, investors, developers, lenders, contractors, property managers, allocating agencies, government officials and countless others work together to build and operate a property. Each makes individual sacrifices for the benefit of the greater good – creating safe, decent and affordable housing for those most in need. The manifestation of the “win” comes when the product is finished, the residents have moved in and lives have been changed for a better tomorrow.

But what’s really amazing about this Affordable Housing Team (that’s all of you reading this!) is that the teamwork doesn’t stop at creating more homes. Earlier this month, MHEG held its annual meeting and golf outing at the Quarry Oaks Golf Course. Prior to the start of the tournament, MHEG issued a challenge to our teammates – pledge up to $5,000 for the tornado relief effort in Oklahoma and MHEG would match that amount. We were overwhelmed by the response. By the end of the day, over $20,000 had been raised!! [see article on Page 1]. That overwhelming response says a lot about the Team – you are

January 2013

truly compassionate people who care about each other and our fellow human beings!

As Congress continues to contemplate tax reform, MHEG issues another challenge to our teammates – help preserve the Housing Credit! 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. 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 residents [see Article on Page 1]. With respect to timing of open houses and ribbon cuttings, note that Congress will be in recess from August 5 – September 6 and October 14 – October 18.

MHEG stands ready to help arrange these events in any way we can.

Specifically, we are willing and able to contact Members of Congress and request their presence at these events. Please don’t hesitate to reach out to me directly if you want help planning an event.

In closing, thank you all for letting MHEG be a part of the Affordable Housing Team and for being great teammates! Have a wonderful summer!

One of the most important characteristics a person can have is being on time. It tells you three things about that person: 1. Importance. The task at hand is important to them.

2. Respect. They respect others and their time.

3. Dependable. They can be counted on to do what they say.

I want you to feel this way about Midwest Housing Equity Group. We clearly understand that the work you do is important to you and your company but also the people we service by providing affordable energy efficient housing. Many people’s livelihood depends on us showing up on time.

All of us are working hard individually doing our part to get the job done, but it is obvious that it takes the entire team working together. There are many layers and moving parts. Respect and an appreciation of the different roles is critical.

Since it takes all of us working together to bring a project to the finish line, it is imperative that we can depend on each other to do what we say when promised.

We don’t live in a perfect world, so there are circumstances beyond our control, but if all of us make every effort to show up on time it would make life easier all the way around.

Chris, Lisa and I appreciate working with you. Please let us know how we can be of assistance.

Nebraska Update Thomas Judds

To begin this update I want to express my sincere gratitude to all our housing friends who attended MHEG’s annual meeting held June 3rd at Quarry Oaks Golf Club and to all who provided sponsorships for the event. It was a great day of fellowship and fun. MHEG was blessed again with an exceptional year in 2012 and much of that success goes to all our faithful partners (developers, investors, lenders and funders). The trust and confidence you place in MHEG is humbling.

So far June has been a very busy month. With the new regional fund in place and offering memorandums printed; I have been on the road touching new and existing relationships. I recently returned from a week’s travel to South Dakota participating in the QuadStates Banking Convention hosted in Rapid City. Prior to that my journey was northwestern Iowa sharing the story of affordable housing and MHEG to companies with investment interest.

NIFA (Nebraska Investment Finance Authority) announced their first round awards for 2013 in April. There were 21 applications submitted requesting approximately $9.4M in funding. Four projects received conditional reservations equaling nearly $1.4M of credits. I thank each of the development sponsors whom MHEG provided syndication letters for. In addition, congrats go out to Dana Point Development for being the recipient of two awards. I look forward to NIFA’s second round awards on Friday, June 21st. Well wishes to all our development sponsors! Now it’s back to the road.

Oklahoma Update Andrea Frymire Additional pictures of the Heritage Estates Ribbon Cutting and Congresswoman Lynn Jenkins addressing guests on May 30, 2013.

Iowa Update

Scott Fitzpatrick 2013 is shaping up to be a busy year for the Iowa Office. Twelve projects were awarded credits by the Iowa Finance Authority for the 2013 allocation round. MHEG is pleased to have supported six of those projects! In addition, we will be reviewing the updated 2014 Qualified Allocation Plan for Iowa.

As we work to execute on our strategic plan of growth into surrounding states, MHEG staff attended the Inaugural Minnesota Affordable Housing Conference in May. In addition, we have been actively developing relationships and reviewing the projects we will support for the Minnesota 2014 application deadline in June.

We are looking forward to Ribbon Cutting events in the coming months for projects that were closed during the fourth quarter of 2012 along with the HousingIowa Conference to be held this September in Coralville, Iowa.

2

On May 17th, Sammy and I had the pleasure of attending the ribbon cutting for a new development in Shawnee, Oklahoma: South Rock Creek Estates. All of the attendees were impressed that the developer, Excel Development Group, had provided individual storm shelters for single family homes. Unfortunately, no one knew they would be put to use so soon. Two days later, a tornado passed through the other side of Shawnee.

the Apartment Association and other parties to help connect displaced Oklahomans with available housing across the state. Our current volunteer work is with the Infant Crisis Center who is providing diapers, baby food and more for young children, the First Baptist Church in Moore and the Oklahoma Temporary Housing Network.

Despite the record breaking storms and tornados, our properties and residents are all fine. Our Oklahoma office is about ten miles north of the Moore May 20th tornado. All of our staff and immediate families are safe with no property damage. We have one site manager who lost her home.

The tornados on May 31 exacerbated our already tight housing supply in the OKC metro. The May 20th Moore tornado had over 12,000 homes in the impact area, an estimated 1,150 were completely destroyed and another 652 were seriously damaged.

In the aftermath, MHEG has been doing what we do best. Staff from other offices have contributed financially, with MHEG making a matching donation. In Oklahoma, we have been active to help out where we can. We are working with many relief groups, REALTORS,

I’d like to send a thank you to all of our partners across the nation that contacted our Oklahoma office to check on us during May and June.

Our state is going to be OK. We have strong spirits; we will rebuild and carry on. We send our thanks to all of our partners across the nation for their thoughts, prayers, phone calls and kind words.

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 Greetings from Omaha! It’s June, it’s hot and the College World Series is well under way! While watching these great college baseball teams play ball, I reflected on how each reached the CWS and achieved such success. Was it the coaching? Individual talent? Or something else? While coaching and individual talent played a role, it seemed that teamwork made these teams successful. Seeing the sacrifice flies and the sacrifice bunts really brought this home – individuals willingly subordinating their own achievements for the betterment of the team.

Teamwork got me thinking about our industry and how much of a role it plays in the development of affordable housing. Affordable housing development is a collaborative process. Every day, investors, developers, lenders, contractors, property managers, allocating agencies, government officials and countless others work together to build and operate a property. Each makes individual sacrifices for the benefit of the greater good – creating safe, decent and affordable housing for those most in need. The manifestation of the “win” comes when the product is finished, the residents have moved in and lives have been changed for a better tomorrow.

But what’s really amazing about this Affordable Housing Team (that’s all of you reading this!) is that the teamwork doesn’t stop at creating more homes. Earlier this month, MHEG held its annual meeting and golf outing at the Quarry Oaks Golf Course. Prior to the start of the tournament, MHEG issued a challenge to our teammates – pledge up to $5,000 for the tornado relief effort in Oklahoma and MHEG would match that amount. We were overwhelmed by the response. By the end of the day, over $20,000 had been raised!! [see article on Page 1]. That overwhelming response says a lot about the Team – you are

June 2013

truly compassionate people who care about each other and our fellow human beings!

As Congress continues to contemplate tax reform, MHEG issues another challenge to our teammates – help preserve the Housing Credit! 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. 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 residents [see Article on Page 1]. With respect to timing of open houses and ribbon cuttings, note that Congress will be in recess from August 5 – September 6 and October 14 – October 18.

MHEG stands ready to help arrange these events in any way we can.

Specifically, we are willing and able to contact Members of Congress and request their presence at these events. Please don’t hesitate to reach out to me directly if you want help planning an event.

In closing, thank you all for letting MHEG be a part of the Affordable Housing Team and for being great teammates! Have a wonderful summer!

One of the most important characteristics a person can have is being on time. It tells you three things about that person: 1. Importance. The task at hand is important to them.

2. Respect. They respect others and their time.

3. Dependable. They can be counted on to do what they say.

I want you to feel this way about Midwest Housing Equity Group. We clearly understand that the work you do is important to you and your company but also the people we service by providing affordable energy efficient housing. Many people’s livelihood depends on us showing up on time.

All of us are working hard individually doing our part to get the job done, but it is obvious that it takes the entire team working together. There are many layers and moving parts. Respect and an appreciation of the different roles is critical.

Since it takes all of us working together to bring a project to the finish line, it is imperative that we can depend on each other to do what we say when promised.

We don’t live in a perfect world, so there are circumstances beyond our control, but if all of us make every effort to show up on time it would make life easier all the way around.

Chris, Lisa and I appreciate working with you. Please let us know how we can be of assistance.

Nebraska Update Thomas Judds

To begin this update I want to express my sincere gratitude to all our housing friends who attended MHEG’s annual meeting held June 3rd at Quarry Oaks Golf Club and to all who provided sponsorships for the event. It was a great day of fellowship and fun. MHEG was blessed again with an exceptional year in 2012 and much of that success goes to all our faithful partners (developers, investors, lenders and funders). The trust and confidence you place in MHEG is humbling.

So far June has been a very busy month. With the new regional fund in place and offering memorandums printed; I have been on the road touching new and existing relationships. I recently returned from a week’s travel to South Dakota participating in the QuadStates Banking Convention hosted in Rapid City. Prior to that my journey was northwestern Iowa sharing the story of affordable housing and MHEG to companies with investment interest.

NIFA (Nebraska Investment Finance Authority) announced their first round awards for 2013 in April. There were 21 applications submitted requesting approximately $9.4M in funding. Four projects received conditional reservations equaling nearly $1.4M of credits. I thank each of the development sponsors whom MHEG provided syndication letters for. In addition, congrats go out to Dana Point Development for being the recipient of two awards. I look forward to NIFA’s second round awards on Friday, June 21st. Well wishes to all our development sponsors! Now it’s back to the road.

Oklahoma Update Andrea Frymire Additional pictures of the Heritage Estates Ribbon Cutting and Congresswoman Lynn Jenkins addressing guests on May 30, 2013.

Iowa Update

Scott Fitzpatrick 2013 is shaping up to be a busy year for the Iowa Office. Twelve projects were awarded credits by the Iowa Finance Authority for the 2013 allocation round. MHEG is pleased to have supported six of those projects! In addition, we will be reviewing the updated 2014 Qualified Allocation Plan for Iowa.

As we work to execute on our strategic plan of growth into surrounding states, MHEG staff attended the Inaugural Minnesota Affordable Housing Conference in May. In addition, we have been actively developing relationships and reviewing the projects we will support for the Minnesota 2014 application deadline in June.

We are looking forward to Ribbon Cutting events in the coming months for projects that were closed during the fourth quarter of 2012 along with the HousingIowa Conference to be held this September in Coralville, Iowa.

2

On May 17th, Sammy and I had the pleasure of attending the ribbon cutting for a new development in Shawnee, Oklahoma: South Rock Creek Estates. All of the attendees were impressed that the developer, Excel Development Group, had provided individual storm shelters for single family homes. Unfortunately, no one knew they would be put to use so soon. Two days later, a tornado passed through the other side of Shawnee.

the Apartment Association and other parties to help connect displaced Oklahomans with available housing across the state. Our current volunteer work is with the Infant Crisis Center who is providing diapers, baby food and more for young children, the First Baptist Church in Moore and the Oklahoma Temporary Housing Network.

Despite the record breaking storms and tornados, our properties and residents are all fine. Our Oklahoma office is about ten miles north of the Moore May 20th tornado. All of our staff and immediate families are safe with no property damage. We have one site manager who lost her home.

The tornados on May 31 exacerbated our already tight housing supply in the OKC metro. The May 20th Moore tornado had over 12,000 homes in the impact area, an estimated 1,150 were completely destroyed and another 652 were seriously damaged.

In the aftermath, MHEG has been doing what we do best. Staff from other offices have contributed financially, with MHEG making a matching donation. In Oklahoma, we have been active to help out where we can. We are working with many relief groups, REALTORS,

I’d like to send a thank you to all of our partners across the nation that contacted our Oklahoma office to check on us during May and June.

Our state is going to be OK. We have strong spirits; we will rebuild and carry on. We send our thanks to all of our partners across the nation for their thoughts, prayers, phone calls and kind words.

3

Volume 6, Issue 2

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

Groundbreakings, Ribbon Cuttings, Dedications and Events....

June 2013

MHEG Annual Meeting & Golf Outing: June 3, 2013 Our 2013 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 3rd. We had another great turnout with over 125 people in attendance for the meeting and lunch, and 25 golf teams participating in the outing. John Wiechmann, MHEG’s CEO/President gave a 2012 summary of MHEG’s operations and an update of where MHEG currently stands. In addition, Dick Schenck, Chairman of the Board, and each of our regional Executive Vice Presidents spoke a few words.

We would like to thank all those in attendance, it was a great day and we enjoy being able to show our appreciation to all of our partners. Our success is a direct result of you! And a big thank you to our great sponsors!!!!

Horizon Bank - Luncheon Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor Seldin Company - Awards Presentation Sponsor Nebraska Investment Finance Authority - Breakfast & Registration Sponsor & Golf Ball Sponsor BancFirst - Breakfast & Registration Sponsor FHLBank Topeka - Refreshments Sponsor Wells Fargo - Refreshments Sponsor Spectrum Companies - Golf Ball Sponsor Foutch Brothers, LLC - Cart Sponsor

Livestock Commons Open House and Ribbon Cutting on March 8, 2013, in Omaha, Nebraska. The first two floors are OneWorld clinics, while the top two floors will provide affordable rental apartments for seniors. Participating in the ribbon cutting are (L-R) Larry Gomez (Omaha Chamber of Commerce), Congressman Lee Terry, Dr. Paul Esposito (OneWorld Board Chair), Andrea Skolkin (OneWorld CEO), Mayor Jim Suttle, City Council Member Garry Gernandt, Dr. Kristine McVea, Jorge Ernesto Espejel Montes (Consul de Mexico), Nebraska State Senator Sara Howard, Nebraska State Senator Heath Mello and Joel Dougherty (OneWorld CFO).

South Rock Creek Estates Ribbon Cutting ceremony on May 17, 2013, in Shawnee, Oklahoma. This development will provide 20 single family units.

Participating in the ribbon cutting are (L-R) Brent Williams (Excel Development Group President), Janet Latimer (Horizon Bank President), Dr. Robert Barnard (DECO), Oklahoma State Senator Ron Sharp, Jennifer McCabe (Excel Development Group), Andrea Frymire (MHEG) and Dr. Dennis Shockley (Oklahoma Housing Finance Agency’s Executive Director).

Hole & Contest Hole Sponsors: Countryside Bank, Excel Development Group, Hatch Development, Home Federal Bank of Grand Island, Horizon Bank, INTRUST Bank, J. Development Company, Koester Construction Company, Kutak Rock, Nebraska Bankers Association, Mesner Development Co., Overland Property Group, Teckmeyer Financial Services and U.S. Bank.

First Place Winning Team: Bruce Bohrer (Lincoln Chamber of Commerce), Clark Froehlich (Bank First), Carly Froehlich (Bank First) and Thomas Judds (MHEG).

Congratulations to all of our winners from the golf outing!

1st Place: Thomas Judds (MHEG), Bruce Bohrer (Lincoln Chamber of Commerce), Clark Froehlich (Bank First), Carly Froehlich (Bank First) 2nd Place: Jake Jacobsen (MHEG), Dustin Daugherty (MHEG), Frank Mason (Horizon Bank), Scott Bartels (Horizon Bank) 3rd Place: Tom Stratman (MHEG), Justin Horst (Pinnacle Bank), Kathy Mesner (Mesner Development Co), Sean O’Connor (DOZ) Last Place: Scott Fitzpatrick (MHEG), Carolann Jensen (Iowa Finance Authority), Roy Miller (Farm and Home Insurance) Pin Prize Winners: Scott Fitzpatrick (MHEG), Scott Bartels (Horizon Bank), Pat Michaelis (MHEG), Kathy Mesner (Mesner Development Co), Carly Froehlich (Bank First) and Nicole Koster (MHEG)

Heritage Townhomes of Smith Center Grand Opening ceremony on May 10, 2013 in Smith Center, Kansas. This development will provide 8 new senior units.

(L to R) Brad Schroeder (Schroeder Building & Supply), Pam Barta (Smith Center Economic Development), Garoleen Wilson (Smith Center Economic Development), Pat Michaelis (MHEG), Jack Manske (Manske & Associates), Jay Manske (Manske & Associates), Fred Bentley (Kansas Housing Resources Corp) , Jim O’Hare (Horizon Bank) and Chris Imming (MHEG).

Above Left to Right: “Team Rachel” with Sara Baker (Kutak Rock), Lloyd Rainge (Capitol Federal Savings Bank), Bob Brandt (Countryside Bank) and Rachel Wiesner (MHEG).

Second place finishers “Team Jake” with Scott Bartels (Horizon Bank), Jake Jacobsen (MHEG), Frank Mason (Horizon Bank) and Dustin Daugherty (MHEG).

Jennie Lattimer (MHEG), Dave Fisher (FHLBank Topeka), James Behan (Kansas Housing Resources Corp), Andrea Frymire (MHEG) and Steve Foutch (Foutch Brothers).

City Impact Homes had their Ribbon Cutting on May 29, 2013, in Lincoln, Nebraska. This new single family development will provide homes for 14 families. Participating in the ribbon cutting are (L-R) Kurt Polzin (Excel Development Group), Janet Latimer (Horizon Bank), John Wiechmann (MHEG), Robin Ambroz (Nebraska Investment Finance Authority), Brad Bryan (City Impact), Brent Williams (Excel Development Group), Deng Bauk (City Impact tenant), City Council Member Carl Eskridge, Earl Redrick (Dept. of HUD), Bob Doty (NE DED), Tom Thull (FHLBank Topeka), Paula Rhian (Excel Development Group) and Steve Werthmann (City of Lincoln).

4

Above Left: Jason Main (MHEG) signing team #1 and Margot Wickman (Kutak Rock) head out to the course.

Above Right: Cindy Koster (MHEG) and Nicole Koster (MHEG).

5

Volume 6, Issue 2

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

Groundbreakings, Ribbon Cuttings, Dedications and Events....

June 2013

MHEG Annual Meeting & Golf Outing: June 3, 2013 Our 2013 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 3rd. We had another great turnout with over 125 people in attendance for the meeting and lunch, and 25 golf teams participating in the outing. John Wiechmann, MHEG’s CEO/President gave a 2012 summary of MHEG’s operations and an update of where MHEG currently stands. In addition, Dick Schenck, Chairman of the Board, and each of our regional Executive Vice Presidents spoke a few words.

We would like to thank all those in attendance, it was a great day and we enjoy being able to show our appreciation to all of our partners. Our success is a direct result of you! And a big thank you to our great sponsors!!!!

Horizon Bank - Luncheon Sponsor Dauby O’Connor & Zaleski, LLC - 19th Hole Sponsor Seldin Company - Awards Presentation Sponsor Nebraska Investment Finance Authority - Breakfast & Registration Sponsor & Golf Ball Sponsor BancFirst - Breakfast & Registration Sponsor FHLBank Topeka - Refreshments Sponsor Wells Fargo - Refreshments Sponsor Spectrum Companies - Golf Ball Sponsor Foutch Brothers, LLC - Cart Sponsor

Livestock Commons Open House and Ribbon Cutting on March 8, 2013, in Omaha, Nebraska. The first two floors are OneWorld clinics, while the top two floors will provide affordable rental apartments for seniors. Participating in the ribbon cutting are (L-R) Larry Gomez (Omaha Chamber of Commerce), Congressman Lee Terry, Dr. Paul Esposito (OneWorld Board Chair), Andrea Skolkin (OneWorld CEO), Mayor Jim Suttle, City Council Member Garry Gernandt, Dr. Kristine McVea, Jorge Ernesto Espejel Montes (Consul de Mexico), Nebraska State Senator Sara Howard, Nebraska State Senator Heath Mello and Joel Dougherty (OneWorld CFO).

South Rock Creek Estates Ribbon Cutting ceremony on May 17, 2013, in Shawnee, Oklahoma. This development will provide 20 single family units.

Participating in the ribbon cutting are (L-R) Brent Williams (Excel Development Group President), Janet Latimer (Horizon Bank President), Dr. Robert Barnard (DECO), Oklahoma State Senator Ron Sharp, Jennifer McCabe (Excel Development Group), Andrea Frymire (MHEG) and Dr. Dennis Shockley (Oklahoma Housing Finance Agency’s Executive Director).

Hole & Contest Hole Sponsors: Countryside Bank, Excel Development Group, Hatch Development, Home Federal Bank of Grand Island, Horizon Bank, INTRUST Bank, J. Development Company, Koester Construction Company, Kutak Rock, Nebraska Bankers Association, Mesner Development Co., Overland Property Group, Teckmeyer Financial Services and U.S. Bank.

First Place Winning Team: Bruce Bohrer (Lincoln Chamber of Commerce), Clark Froehlich (Bank First), Carly Froehlich (Bank First) and Thomas Judds (MHEG).

Congratulations to all of our winners from the golf outing!

1st Place: Thomas Judds (MHEG), Bruce Bohrer (Lincoln Chamber of Commerce), Clark Froehlich (Bank First), Carly Froehlich (Bank First) 2nd Place: Jake Jacobsen (MHEG), Dustin Daugherty (MHEG), Frank Mason (Horizon Bank), Scott Bartels (Horizon Bank) 3rd Place: Tom Stratman (MHEG), Justin Horst (Pinnacle Bank), Kathy Mesner (Mesner Development Co), Sean O’Connor (DOZ) Last Place: Scott Fitzpatrick (MHEG), Carolann Jensen (Iowa Finance Authority), Roy Miller (Farm and Home Insurance) Pin Prize Winners: Scott Fitzpatrick (MHEG), Scott Bartels (Horizon Bank), Pat Michaelis (MHEG), Kathy Mesner (Mesner Development Co), Carly Froehlich (Bank First) and Nicole Koster (MHEG)

Heritage Townhomes of Smith Center Grand Opening ceremony on May 10, 2013 in Smith Center, Kansas. This development will provide 8 new senior units.

(L to R) Brad Schroeder (Schroeder Building & Supply), Pam Barta (Smith Center Economic Development), Garoleen Wilson (Smith Center Economic Development), Pat Michaelis (MHEG), Jack Manske (Manske & Associates), Jay Manske (Manske & Associates), Fred Bentley (Kansas Housing Resources Corp) , Jim O’Hare (Horizon Bank) and Chris Imming (MHEG).

Above Left to Right: “Team Rachel” with Sara Baker (Kutak Rock), Lloyd Rainge (Capitol Federal Savings Bank), Bob Brandt (Countryside Bank) and Rachel Wiesner (MHEG).

Second place finishers “Team Jake” with Scott Bartels (Horizon Bank), Jake Jacobsen (MHEG), Frank Mason (Horizon Bank) and Dustin Daugherty (MHEG).

Jennie Lattimer (MHEG), Dave Fisher (FHLBank Topeka), James Behan (Kansas Housing Resources Corp), Andrea Frymire (MHEG) and Steve Foutch (Foutch Brothers).

City Impact Homes had their Ribbon Cutting on May 29, 2013, in Lincoln, Nebraska. This new single family development will provide homes for 14 families. Participating in the ribbon cutting are (L-R) Kurt Polzin (Excel Development Group), Janet Latimer (Horizon Bank), John Wiechmann (MHEG), Robin Ambroz (Nebraska Investment Finance Authority), Brad Bryan (City Impact), Brent Williams (Excel Development Group), Deng Bauk (City Impact tenant), City Council Member Carl Eskridge, Earl Redrick (Dept. of HUD), Bob Doty (NE DED), Tom Thull (FHLBank Topeka), Paula Rhian (Excel Development Group) and Steve Werthmann (City of Lincoln).

4

Above Left: Jason Main (MHEG) signing team #1 and Margot Wickman (Kutak Rock) head out to the course.

Above Right: Cindy Koster (MHEG) and Nicole Koster (MHEG).

5

Volume 6, Issue 2

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

MHEG 20th Anniversary Celebration: April 18, 2013

June 2013

Service Day A few of the Omaha office was able to spend a “service day” at LAP Housing Wahoo Limited Partnership (EFN IX, L.P.) in Wahoo, Nebraska this past May. Along with staff from Perry Reid Properties and Lincoln Action Program, the group completed several projects. Dead or dying bushes, plants and trees were removed and replaced with new mulch and grass seed. Overgrown landscaping was trimmed and new plants and mulch were installed underneath the decks. In addition to landscaping, the installation of a new playground was started.

If you have a property that has some projects that could be completed in a day, such as landscaping, painting or cleanup, please contact your Asset Manager to inquire about setting up a service day with MHEG.

a

Kathi Mueller, Shannon Johnson, Keely McAleer and Jordan Bottorff volunteered their afternoon to help spruce up LAP Housing Wahoo along with staff from Perry Reid Properties and Lincoln Action Program.

Closed Acquisitions LIHTC DEVELOPMENTS

FUND

CITY / STATE

UNITS

DATE

La Estancia Partners II, lCC

KF X

Dodge City, KS

48

March

North Omaha Senior Cottages Limited Partnership Phase II NF XVII

Omaha, NE

20

March

Duncan Affordable Housing LLC

OF IV

Duncan, OK

40

April

Scenic Pointe, LP

KF X

Manhattan, KS

29

June

Total Units Closed

137

HISTORIC CREDIT DEVELOPMENTS 2401 Farnam, LLC

Omaha, NE

12, plus

April

commerical space

Total Units Closed

12

Staff Announcements Dustin Daugherty, Construction Manager Dustin was hired as a Construction Manager to assist our construction department. When he’s not traveling, Dustin will work out of our Omaha office. He will be responsible for conducting site inspections, overseeing the construction or renovation of developments in our portfolio. Dustin has over six years experience in the construction field and is working toward his Construction Management degree from the University of Nebraska at Lincoln. He started with MHEG on March 29th.

MHEG would also like to recognize those employees who will be reaching their 5 and 10 year service anniversary date in 2013. MHEG is proud to have a dedicated and experienced staff.

6

Shannon Johnson, Asset Manager 10 years

Cindy Koster, Senior Acquisitions Manager 10 years

Tom Stratman, Vice Presidet of Acquisitions 10 years

Kristina Tolander, Asset Manager 5 years

7

Volume 6, Issue 2

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

MHEG 20th Anniversary Celebration: April 18, 2013

June 2013

Service Day A few of the Omaha office was able to spend a “service day” at LAP Housing Wahoo Limited Partnership (EFN IX, L.P.) in Wahoo, Nebraska this past May. Along with staff from Perry Reid Properties and Lincoln Action Program, the group completed several projects. Dead or dying bushes, plants and trees were removed and replaced with new mulch and grass seed. Overgrown landscaping was trimmed and new plants and mulch were installed underneath the decks. In addition to landscaping, the installation of a new playground was started.

If you have a property that has some projects that could be completed in a day, such as landscaping, painting or cleanup, please contact your Asset Manager to inquire about setting up a service day with MHEG.

a

Kathi Mueller, Shannon Johnson, Keely McAleer and Jordan Bottorff volunteered their afternoon to help spruce up LAP Housing Wahoo along with staff from Perry Reid Properties and Lincoln Action Program.

Closed Acquisitions LIHTC DEVELOPMENTS

FUND

CITY / STATE

UNITS

DATE

La Estancia Partners II, lCC

KF X

Dodge City, KS

48

March

North Omaha Senior Cottages Limited Partnership Phase II NF XVII

Omaha, NE

20

March

Duncan Affordable Housing LLC

OF IV

Duncan, OK

40

April

Scenic Pointe, LP

KF X

Manhattan, KS

29

June

Total Units Closed

137

HISTORIC CREDIT DEVELOPMENTS 2401 Farnam, LLC

Omaha, NE

12, plus

April

commerical space

Total Units Closed

12

Staff Announcements Dustin Daugherty, Construction Manager Dustin was hired as a Construction Manager to assist our construction department. When he’s not traveling, Dustin will work out of our Omaha office. He will be responsible for conducting site inspections, overseeing the construction or renovation of developments in our portfolio. Dustin has over six years’ experience in the construction field and is working toward his Construction Management degree from the University of Nebraska at Lincoln. He started with MHEG on March 29th.

MHEG would also like to recognize those employees who will be reaching their 5 and 10 year service anniversary date in 2013. MHEG is proud to have a dedicated and experienced staff.

6

Shannon Johnson, Asset Manager 10 years

Cindy Koster, Senior Acquisitions Manager 10 years

Tom Stratman, Vice Presidet of Acquisitions 10 years

Kristina Tolander, Asset Manager 5 years

7

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

Volume 6, Issue 2

June 2013

MHEG’s 20th Anniversary Celebration

Inside this Issue: Recent Highlights

1

CEO Update

2

State Updates

2, 3

Recent Events

4

Closed Acquisitions

7

Staff Announcements

7

Upcoming Events

8

Monthly LIHTC Rates February 2013

MHEG hosted its 20th Anniversary Celebration on Thursday, April 18th at the Henry Doorly Zoo’s Scott Aquarium and Conference Center. Thank you to everyone who traveled to Omaha for the evening. We had a little under 200 people attend, making it MHEG’s largest event to date.

Guests were able to enjoy a private stroll through the aquarium while visiting with MHEG staff at stations throughout showcasing MHEG over the past two decades. Guests enjoyed dinner during our 20 Year Presentation and a viewing of our commemorative video, MHEG: Changing Lives for 20 Years (which can be found on our website). The night ended with the Dueling Duo performing.

MHEG also presented the MHEG Pillar of Housing Awards to three individuals, Senator E. Benjamin Nelson, Sister Marilyn Ross and Jim Rieker. The Pillar of Housing Award recognizes individuals who have not only had a significant impact on MHEG, but have shown vision, leadership and commitment to improving affordable housing.

It was a great night of celebration with our many partners, and we hope all enjoyed the evening.

70% PV

30%PV

AFR

7.40%

3.17%

2.52%

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

March 2013 70% PV

30%PV

AFR

7.43%

3.18%

2.66%

April 2013 70% PV

30%PV

AFR

7.43%

3.19%

2.70%

Above: Guests enjoy visiting in the shark tunnel, the viewing of MHEG’s commemorative video, the Dueling Duo entertain the crowd

May 2013

Upcoming Events July

OHFA Board of Trustees Meeting: Jul. 17th Oklahoma City, OK - OHFA Office

70% PV

30%PV

AFR

7.41%

3.18%

2.60%

June 2013

Texas Housing Conference, Jul. 22nd-24th Austin, TX - Four Seasons

70% PV

30%PV

AFR

7.39%

3.17%

2.47%

August

Portfolio Update

NIFA Board Meeting: Aug. 16th Lincoln, NE - NIFA Board Room

Developments Units

Kansas Housing Conference: Aug. 27th-29th Lawrence, KS - KU Memorial Union

351 9,797

Counties Represented

134

Cities Represented

165

KS Annual Appreciation Dinner: Aug. 27th Lawrence, KS

Vacancy Percentage

5.32%*

Debt Coverage Ratio

1.64%*

September

Information current as of 6/15/13 *Percentage compiled from 3/31/13 figures, vacancy percentage is using economic vacancy.

HousingIowa Conference: Sep. 4th-6th Coralville, IA - Marriott

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.

OHFA Board of Trustees Meeting: Sep. 18th Oklahoma City, OK - OHFA Office NASLEF’s Annual Conference: Sep. 25th-27th Portsmouth, VA - Renaissance Portsmouth Hotel

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

October

NIFA Board Meeting: Oct. 18th Lincoln, NE - NIFA Board Room 8

MHEG Raises Over $22K for Moore Tornado Relief On the afternoon of May 20th, 2013, an EF5 tornado passed through the city fo Moore, Oklahoma taking the lives of 24 individuals, injuring hundreds more and destroying over 1,150 homes. MHEG was fortunate in that our Oklahoma City office, our Oklahoma City properties and our staffs’ homes and families were safe and unharmed. But MHEG can not overlook the thousands of people who were less fortunate. What started as a collection of money from staff to send down to Oklahoma City, turned into a challenge at our June 3rd Annual Meeting to our partners to raise at least $5,000. MHEG committed to match another $5,000. The compassion of our investors, developers and many partners did not disappoint. In fact, we were incredibly humbled to receive over $11,000 in pledges in just 5 hours. With MHEG’s increased match of $10,000 and additional contributions from MHEG staff, we will be donating over $22,000 to the Moore Tornado relief efforts; $10,000 to the Salvation Army and $10,000 to the American Red Cross, and over $2,000 to the Shelter Oklahoma Schools charity. We sincerely thank each and every one of you who donated to this cause.

Heritage Estates Ribbon Cutting Spring and summer tend to bring warmer weather and a calendar filled with events, such as grand openings and ribbon cuttings for developments. If you are ever invited to one of these celebrations, MHEG strongly encourages you to attend. It is a perfect opportunity to truly see how affordable housing changes the lives of residents for a better tomorrow.

Last month, MHEG participated in the Ribbon Cutting for Heritage Estates - six newly constructed duplexes located in Neodesha, Kansas. Each of the twelve units will provide three bedrooms, two baths and approximately 1,250 square feet. Heritage Estates’ first resident, Alice Anderson, attended the May 30th event and was able to share her story. She expressed her sincere gratitude and reminded those in attendance of the real reasons why the work we do is so important. Congresswoman Lynn Jenkins (R), member of the House Ways & Means Committee also attended the event and remarked on the good that the Housing Credit does.

(L-R) Mayor Terry Harper, Pat Michaelis (MHEG), Conresswoman Lynn Jenkins, Mark Cox (Vintage Construction), (Heritage Estates resident) John Wiechmann (MHEG) and Dennis Mesa (Kansas Housing Resources Corp.)

1