MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 6, Issue 3
20th Anniversary NASLEF Conference: Portsmouth, VA
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Recent Events
4
Closed Acquisitions
5
Staff Announcements
5
Upcoming Events
6
Monthly LIHTC Rates June 2013
13520 California St., Ste. 250 Omaha, NE 68154
70% PV 7.39%
30%PV 3.17%
October 2013
This year’s annual NASLEF Conference was hosted in Portsmouth, Virginia at the Renaissance Waterfront Hotel from September 24th-26th. Several of MHEG’s staff was able to attend the three-day conference, including our new VP of Asset Management, Ben Henderson, who was included in their long list of great speakers. Ben offered his expertise for the session “AHIC, Watch Lists and Investor Scrutiny.” The conference had over 15 sessions, such as “Please Don’t Take My CRA Away” and “50 Shades of Green: Sustainable Design, Construction, Monitoring and More,” and included some local sightseeing with a Harbor Tour Cruise and an evening dinner at the Virginia Sports Hall of Fame & Museum.
AFR 2.47%
July 2013 70% PV
30%PV
AFR
7.46%
3.20%
2.80%
Next year’s conference will be held September 17th-19th, 2014, in Savannah, Georgia.
Schenck Retires From Wells Fargo Richard (Dick) Schenck retired at the end of September from Wells Fargo, after 45 years with the bank. Some of MHEG’s staff was fortunate enough to attend a reception in honor of his retirement. During the reception, Dick’s dedication, knowledge, leadership and work ethic were the theme of the evening, in addition to his ongoing commitment to the community and housing needs.
August 2013
TDHCA Board Meeting: Oct. 10th Austin, TX - Capitol Extension Auditorium
December cont.
TDHCA Board Meeting: Dec. 12th Austin, TX - Capitol Extension Auditorium
NIFA Board Meeting: Oct. 18th Aurora, NE - The Leadership Center
NIFA Board Meeting: Dec. 13th Lincoln, NE - NIFA Board Room
November
January
IFA Board Meeting: Nov. 6th Des Moines, IA - IFA Office
30%PV
AFR
7.55
3.24%
3.16%
September 2013
Upcoming Events October
70% PV
70% PV
30%PV
AFR
7.57%
3.24%
3.28%
Fortunately for us, although retiring from Wells Fargo, Dick will remain active with MHEG and continue to serve as Chairman of the Board of Directors and participate in many of our committees. Dick’s commitment to help the community and address the needs for affordable housing will continue, and MHEG is thankful for his guidance and knowledge.
October 2013 70% PV
30%PV
AFR
7.63%
3.27%
3.50%
Portfolio Update
NIFA Housing Innovation Marketplace Conference: Jan. 21st-22nd Omaha, NE - Regency Marriott
Developments Units
TDHCA Board Meeting: Nov. 7th Austin, TX - Capitol Extension Auditorium
Counties Represented Cities Represented
352 9,807 134 165
SDHDA Annual Housing Conference: Nov. 19th-20th Pierre, SD - Ramkota RiverCentre
Vacancy Percentage
5.32%*
Debt Coverage Ratio
1.64%*
OHFA Board of Trustees Meeting: Nov. 20th Oklahoma City, OK - Metro Tech - Business Conference Center
Information current as of 10/1/13 *Percentage compiled from 3/31/13 figures, vacancy percentage is using economic vacancy.
AHF LIVE Summit: Nov. 20th-22nd Chicago, IL - Fairmont Millennium Park
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.
December
IFA Board Meeting: Dec. 4th Des Moines, IA - IFA Office
For any other inquiries about the content of this newsletter, please contact Keely McAleer.
MHDC Commission Meeting: Dec. 6th Columbia, MO - Stoney Creek Inn 6
Several of the MHEG staff enjoy visiting with industry partners such as Kutak Rock, Dauby O’Connor & Zaleski, Horizon Bank and Integratec.
Dick Schenck (left) is honored for his 45 years at Wells Fargo.
Dick, congratulations on your 45 years of service!
2013 Ad Astra Award Winners MHEG is proud to partner with many leading organizations in the affordable housing industry, and is even more proud when those organizations, developments or colleagues are recognized for their outstanding service. This past fall the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Lawrence, Kansas and presented Ad Astra Awards. The awards honor individuals and organizations who demonstrate excellence in developing affordable housing, shaping housing policy and creating innovative housing solutions to meet the daily needs of low and moderate-income Kansans. MHEG was excited to learn that two of our partners received awards this year recognizing them for their outstanding service to the affordable housing industry in Kansas. Special Achievement in Affordable Housing Development - Rural: Heritage Estates developed by Vintage Construction and located in Neodesha, Kansas (KF IX) Affordable Housing Trail Blazer: John Johnston, Executive Director of the Topeka Housing Authority (Managing Member of Echo Ridge and Tennesse Townhomes II, both KF VIII developments)
Fred Bentley (left), Director of Rental Housing Allocation for KHRC, and Dennis Mesa (right), Executive Director of KHRC, present Mark Cox of Vintage Construction with his Ad Astra Award.
1
Volume 6, Issue 3
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Greetings Friends! I hope this missive finds each of you doing well! The fall season is upon us. This is my favorite time of year – college football is back, trees are reaching peak color and the bitter cold days of winter have not yet arrived. Professionally, the varied efforts of the previous nine months begin to coalesce around year-end goals.
sponsor. We especially enjoyed the chance to host our annual appreciation dinners and welcomed the chance to catch up with so many of our good friends and partners. It is always nice to build relationships in an informal setting.
Team Changes We have two exiting team changes to announce. First, Ben Henderson joined MHEG as our Vice President of Asset Management on July 29th. Ben brings with him a wealth of experience and knowledge, having spent over 20 years in the affordable housing industry. Not only is he a great mentor for our entire team, he is a great management resource for our partners! Scott Fiztpatrick was promoted to Vice-President/Business Development Officer for Iowa and Minnesota on October 1st. This is a well-deserved promotion for Scott. Although he has been with MHEG for just under two years, he has over ten years of affordable housing experience. In his new role, Scott will serve as an ambassador for MHEG in Iowa and Minnesota, working with government and community organizations, developers and investors to promote affordable housing development. He will also continue to work with our developer partners on the underwriting and closing of new developments. Please congratulate Scott and Ben when you see them!
Advocacy Efforts As Pat points out below, it is very important to stay in contact with our elected officials. Many of you did a great job this summer getting Members of Congress to ground breakings, open houses and ribbon cuttings. Congressman Lee Terry (R-NE), Congressman Tom Latham (R-IA), Congresswoman Lynn Jenkins (R-KS), Senator Jerry Moran (R-KS) and Senator Pat Roberts (R-KS) all attended affordable housing events in the past few months. That is really impressive!! Each had the chance to see the finished product and, most importantly, interact with the residents we all serve. Also, note that Senator Roberts, a member of the Senate Finance Committee, co-sponsored legislation to permanently fix the 9% credit rate. Please be sure to communicate to his staff how much we appreciate him doing so and please keep up the great advocacy work. Your efforts are paying off!
State Housing Conferences A big thanks to the Iowa Finance Authority and Kansas Housing Resources Corporation! IFA and KHRC each recently hosted its annual housing conference. Both events were informative and very well run, as usual, and MHEG was proud to be a
In close, I want to thank all of our partners 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. Kindest regards, John Wiechmann
October 2013
I’m pleased to report on several affordable housing developments that have recently been completed and are nearing completion. This past quarter we participated in several grand openings. On August 29th, we celebrated with a ribbon cutting for The Crest at Baker Creek and Baker Creek Senior Living in Des Moines. These two developments will provide 60 units for families and 33 units for seniors. We’d like to congratulate our development partners Anawim Housing for The Crest and The Baker Group and Nelson Construction for Baker Creek Senior. On September 23rd, we celebrated another ribbon cutting for the Des Moines Greystone Homes by Hatch Development Group. This development will provide homes for 26 families in Des Moines. We are proud to be a part of these three developments. FB Harlan by Foutch Development wrapped up construction and lease-up earlier this summer; while Corridor Woods with The Housing Fellowship, Valley View Apartments and West Heights Townhomes, both with Community Housing Initiatives, are also nearing completion. In addition to monitoring our busy portfolio, we attended IFA’s annual HousingIowa Conference which took place in Coralville, Iowa this year on September 4th-6th. The conference was well attended and offered several great sessions and compliance training. As we look ahead to the 2014 tax credit application round, we expect there to be heavy competition for credits in Iowa along with the awards for 2014 credits in Minnesota. The 2014 Qualified Allocation Plan (QAP) was approved by the IFA Board of Directors at the October 2nd Board Meeting. The points for reductions in developer fee have been removed from QAP; we commend the IFA Staff and Board of Directors for receptiveness to comments on this topic. The change will help maintain developer financial capacity, especially as we will face challenges this year including the return to the floating tax credit rate and increasing interest rates on debt and construction costs. Applications will be due December 9th. We look forward to a busy fourth quarter with the anticipation of closing six more acquisitions in Iowa.
Northwest Region Update Thomas Judds
Without a doubt, I have the best job at MHEG. In a recent meeting, a potential investor referred to my position as “sales.” Although I can understand and respect the reference, honestly, I view the position as “tales.” I have the distinct honor and privilege to share the amazing story of affordable housing across the Midwest to various audiences. I speak sincerely from the heart and not from a script. The message I carry is real and personal - people and life experiences I’ve encountered along this journey.
Left: Riverview Senior Ribbon Cutting on July 7th, 2013 in South Hutchinson, Kansas. Center: John Wiechmann (MHEG), Congresswoman Lynn Jenkins, Rebecca Buford (Tenants to Homeowners) and Pat Michaelis (MHEG) as they toured local LIHTC developments in Lawrence, Kansas. Right: Senator Jerry Moran and Senator Pat Roberts participated in the ribbon cutting for Scenic Pointe on August 30th, 2013, in Manhattan, Kansas.
Central Region Update
Last week I attended a meeting in Lincoln with the primary focus of serving youth aging out of foster care. There I met Sarah - a very confident and competent young lady who turns 19 years of age October 11th. She told me over her life she has moved 41 times and encountered 38 different placements while in foster care. In a couple of weeks she will no longer be a ward of the state and subsequently on her own. Among other things, this means finding housing. I was completely taken back by Sarah’s story. Her words and outlook inspired me to become further engaged in the housing committee that will develop creative thinking to address her and the many other young adults facing these challenges. You see, the other part of the story I talk about is how affordable housing has touched and changed me - meaning and purpose. In many respects, it has put my faith into action. When you believe in something it becomes part of you. Authentic and powerful - it’s about being something more...it’s not sales.
Pat Michaelis Federal Tax Reform, Balancing the Budget and the Debt Ceiling: What’s going to happen to LIHTC’s? Every day we are hearing about federal tax reform, balancing the budget and the debt ceiling. It is coming from both sides of the aisle. These issues will be resolved, but expect changes as a result. We are concerned about the impact on the Low Income Housing Tax Credit (LIHTC) Program. Since its inception in 1987 under President Regan, the program has provided more than 2,400,000 units of affordable housing, and is an important source of economic development for many communities. The LIHTC program is effective, efficient and should be retained. What can you do? Communicate with your Senators and Representatives. Let them know how important they are in your community and to the residents served. Invite them to open houses and ribbon cuttings. Take them on tours and introduce them to tenants. Visit their Washington office if you happen to be there. Let them see firsthand the benefits. The House Ways and Means Committee is currently meeting on tax reform. If your representative is on the committee, as Kansas Representative Lynn Jenkins is, get in touch and let them know you support the program. Please be proactive now! Next quarter I will report to you about our activity and successes in Kansas and Missouri. We are doing well thanks to your help and support. All the best to each of you.
2
South Region Update Andrea Frymire The expansion of our region is going well. We have received additional opportunities with existing relationships in our new territory, as well as cultivated many new relationships. We have spent the summer and early fall working to secure deals from Arkansas, Oklahoma and Texas.
For Oklahoma, we are working on a senior development in Pauls Valley, single family homes in Ardmore and Stilwell and a historic rehab in Durant.
Midwest Housing will syndicate our first deal in Arkansas with the Paragould Housing Authority. This development will provide 16 new construction duplexes for seniors in Paragould. We are excited to be working with the Paragould Housing Authority on such a beautiful site.
Oklahoma’s Round 2 Allocations will be announced November 20th at OHFA’s Board of Trustees meeting. This is another highly competitive round with forty submitted applications.
In Texas, we will syndicate a multifamily development with Overland Property Group. This 36-unit development will be located in Wichita Falls and will be our first development to syndicate in Texas.
Our annual Oklahoma Affordable Housing Luncheon will be held immediately following OHFA’s meeting on November 20th at the National Cowboy and Western Heritage Museum. Look for more information to be emailed soon.
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Volume 6, Issue 3
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
October 2013
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Greetings
I’m pleased to report on several affordable housing developments that have recently been completed and are nearing completion. This past quarter we participated in several grand openings. On August 29th, we celebrated with a ribbon cutting for The Crest at Baker Creek and Baker Creek Senior Living in Des Moines. These two developments will provide 60 units for families and 33 units for seniors. We’d like to congratulate our development partners Anawim Housing for The Crest and The Baker Group and Nelson Construction for Baker Creek Senior. On September 23rd, we celebrated another ribbon cutting for the Des Moines Greystone Homes by Hatch Development Group. This development will provide homes for 26 families in Des Moines. We are proud to be a part of these three developments. FB Harlan by Foutch Development wrapped up construction and lease-up earlier this summer; while Corridor Woods with The Housing Fellowship, Valley View Apartments and West Heights Townhomes, both with Community Housing Initiatives, are also nearing completion. In addition to monitoring our busy portfolio, we attended IFA’s annual HousingIowa Conference which took place in Coralville, Iowa this year on September 4th-6th. The conference was well attended and offered several great sessions and compliance training. As we look ahead to the 2014 tax credit application round, we expect there to be heavy competition for credits in Iowa along with the awards for 2014 credits in Minnesota. The 2014 Qualified Allocation Plan (QAP) was approved by the IFA Board of Directors at the October 2nd Board Meeting. The points for reductions in developer fee have been removed from QAP; we commend the IFA Staff and Board of Directors for receptiveness to comments on this topic. The change will help maintain developer financial capacity, especially as we will face challenges this year including the return to the floating tax credit rate and increasing interest rates on debt and construction costs. Applications will be due December 9th. We look forward to a busy fourth quarter with the anticipation of closing six more acquisitions in Iowa.
Northwest Region Update Thomas Judds
Without a doubt, I have the best job at MHEG. In a recent meeting, a potential investor referred to my position as “sales.” Although I can understand and respect the reference, honestly, I view the position as “tales.” I have the distinct honor and privilege to share the amazing story of affordable housing across the Midwest to various audiences. I speak sincerely from the heart and not from a script. The message I carry is real and personal - people and life experiences I’ve encountered along this journey.
Left: Riverview Senior Ribbon Cutting on July 7th, 2013 in South Hutchinson, Kansas. Center: John Wiechmann (MHEG), Congresswoman Lynn Jenkins, Rebecca Buford (Tenants to Homeowners) and Pat Michaelis (MHEG) as they toured local LIHTC developments in Lawrence, Kansas. Right: Senator Jerry Moran and Senator Pat Roberts participated in the ribbon cutting for Scenic Pointe on August 30th, 2013, in Manhattan, Kansas.
Central Region Update Pat Michaelis Federal Tax Reform, Balancing the Budget and the Debt Ceiling: What’s going to happen to LIHTC’s? Every day we are hearing about federal tax reform, balancing the budget and the debt ceiling. It is coming from both sides of the aisle. These issues will be resolved, but expect changes as a result. We are concerned about the impact on the Low Income Housing Tax Credit (LIHTC) Program. Since its inception in 1987 under President Regan, the program has provided more than 2,400,000 units of affordable housing, and is an important source of economic development for many communities. The LIHTC program is effective, efficient and should be retained. What can you do? Communicate with your Senators and Representatives. Let them know how important they are in your community and to the residents served. Invite them to open houses and ribbon cuttings. Take them on tours and introduce them to tenants. Visit their Washington office if you happen to be there. Let them see firsthand the benefits. The House Ways and Means Committee is currently meeting on tax reform. If your representative is on the committee, as Kansas Representative Lynn Jenkins is, get in touch and let them know you support the program. Please be proactive now! Next quarter I will report to you about our activity and successes in Kansas and Missouri. We are doing well thanks to your help and support. All the best to each of you. 2
Last week I attended a meeting in Lincoln with the primary focus of serving youth aging out of foster care. There I met Sarah - a very confident and competent young lady who turns 19 years of age October 11th. She told me over her life she has moved 41 times and encountered 38 different placements while in foster care. In a couple of weeks she will no longer be a ward of the state and subsequently on her own. Among other things, this means finding housing. I was completely taken back by Sarah’s story. Her words and outlook inspired me to become further engaged in the housing committee that will develop creative thinking to address her and the many other young adults facing these challenges. You see, the other part of the story I talk about is how affordable housing has touched and changed me - meaning and purpose. In many respects, it has put my faith into action. When you believe in something it becomes part of you. Authentic and powerful - it’s about being something more...it’s not sales.
South Region Update Andrea Frymire The expansion of our region is going well. We have received additional opportunities with existing relationships in our new territory, as well as cultivated many new relationships. We have spent the summer and early fall working to secure deals from Arkansas, Oklahoma and Texas.
For Oklahoma, we are working on a senior development in Pauls Valley, single family homes in Ardmore and Stilwell and a historic rehab in Durant.
Midwest Housing will syndicate our first deal in Arkansas with the Paragould Housing Authority. This development will provide 16 new construction duplexes for seniors in Paragould. We are excited to be working with the Paragould Housing Authority on such a beautiful site.
Oklahoma’s Round 2 Allocations will be announced November 20th at OHFA’s Board of Trustees meeting. This is another highly competitive round with forty submitted applications.
In Texas, we will syndicate a multifamily development with Overland Property Group. This 36-unit development will be located in Wichita Falls and will be our first development to syndicate in Texas.
Our annual Oklahoma Affordable Housing Luncheon will be held immediately following OHFA’s meeting on November 20th at the National Cowboy and Western Heritage Museum. Look for more information to be emailed soon.
3
Volume 6, Issue 3
Keeping you up to date on MHEG in just a minute’s time.
Groundbreakings, Ribbon Cuttings, Dedications and Events....
October 2013
Kansas Housing Conference Below are some pictures of our annual Kansas Appreciation Dinner and KHRC’s annual Bringing Kansas Home Housing Conference in Lawrence, Kansas (conference photos provided by KHRC).
Left: French Quarter hosted an Open House on June 6th, 2013, in Wichita, Kansas. Participating in the ribbon cutting are (L-R): Andy Bias (Mennonite Housing), Keith Dater (Representative of Congressman Mike Pompeo), Tom Stratman (MHEG), Pat Michaelis (MHEG), Fred Bentley (KHRC), Lavonta Williams (Wichita City Council, District 1), Jim O’Hare (Horizon Bank) and John Santer (NeighborWorks). Right: Cypress Pointe’s Ribbon Cutting took place on August 16th, 2013, in Omaha, Nebraska. Speakers, such as Congressman Lee Terry (above) spoke of the importance of offering affordable senior housing in our communities. Participating in the ribbon cutting are (L-R): Paula Rhian (Excel Development Group), Congressman Lee Terry, Dean Graham (MHI) Kelly Schultze (NIFA), Janet Latimer (Horizon Bank) Pamela Forster (Board Member of MHI), Brent Williams (Excel Development Group), Mayor Jean Stothert (City of Omaha) and Cindy Koster (MHEG).
Closed Acquisitions Above: Baker Creek Senior (left) and McKinley Crest (right) both hosted ribbon cuttings on August 29th, 2013, in Des Moines, Iowa. Baker Creek Senior, developed by Baker Creek Development, will provide 33 senior units. McKinley Crest, developed by Anawim Housing, will provide 60 multifamily units. Both properties will be managed by Anawim Housing. Among the many participants in the ribbon cutting were Congressman Tom Latham, Iowa Representative Kevin Koester, and Des Moines City Council Member Bob Mahaffey. Right: Frontier Housing celebrated their Ribbon Cutting on September 4th, 2013, in Parsons, Kansas. Participating in the ribbon cutting are (L-R): Kirk Wyckoff (Labette Bank), Fred Bentley (KHRC), Fred Gress (Parsons City Manager), Mark Cox (Vintage Construction), Peggy Wiens (tenant), Pat Michaelis (MHEG), Mayor Kevin Cruse (City of Parsons), Parsons City Commissioner Dan Goddard, Parsons City Commissioner Jeff Perez, Parsons City Comissioner Bill Hogelin.
LIHTC DevelopmentS
fund
city / State
Monument View Villa, L.L.C.
NF XVII
Gering, NE Total Units Closed
units 10
DATE September
10
While this past quarter did not see many closings, MHEG has been and is preparing for its busiest quarter of the year. The majority of MHEG’s 2013 acquisitions will be closed during the 4th quarter.
Staff Announcements Ben Henderson, Vice President of Asset Management Ben was recently hired as Vice President of Asset Management for our Omaha office. He will be responsible for the leadership of MHEG’s asset management and compliance monitoring teams, ensuring that MHEG’s portfolio is in excellent physical and financial condition and in compliance with the Housing Credit regulations. Ben comes to MHEG with over 20 years’ experience in the affordable housing industry. Most recently, he served as the Vice President of Community Investments and Vice President of LIHTC Asset Management during his seven years with AEGON USA Realty Advisors LLC in Cedar Rapids, Iowa. Prior to joining AEGON, he worked with USAA Real Estate Company and USAA Financial Services Company for over 20 years, successfully overseeing its Housing Credit portfolio. Ben also served as an original member of the Affordable Housing Investors Council and was integral in the development and implementation of a nationally recognized Housing Credit standard reporting format and watch list criteria. MHEG is very excited to have Ben join our team. He started with MHEG on July 29th.
Scott Fitzpatrick, Vice President - Business Development Officer, NE Region Left: Jackson Meadows celebrated their Ribbon Cutting on August 16th, 2013, in Columbus, Nebraska. Participating in the ribbon cutting are (L-R): Matt Thomas (Dana Point Development Corp), Jamie Wilson (Cypress Property Management Group), Jesse McCoy (ILH Construction), Mayor Michael Moser (City of Columbus), Norma Dreifurst (tenant), Tom Stratman (MHEG), Jim Rieker (Horizon Bank) and Teresa Kile (NIFA). After the ribbon cutting, guests were invited to tour Norma’s home, where she shared her stories and home baked cookies.
Scott was recently promoted from Acquisitions Manager of the Northeast Region (Iowa and Minnesota) to Vice President Business Development Officer of the Northeast Region. In his new position, he will be responsible for all affairs and activities in his region, including identifying and contacting potential investors and developers along with assisting the Acquisitions Department in the closing of all approved developments in his region.
Right: Senator Harkin speaks with Senator Jack Hatch and Ryan Galloway of Hatch Development Group at the Des Moines Greystone Homes Ribbon Cutting on September 23rd, 2013, in Des Moines, Iowa. Participating in the ribbon cutting are (L-R): Senator Harkin, Ryan Galloway (Hatch Development Group), Senator Jack Hatch, Sonja Roberts (Perennial Properties), Chris Hensley (MHEG), Dan Garrett (Garrett Development Group) and Carmela Brown (IFA Board of Directors).
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5
Volume 6, Issue 3
Keeping you up to date on MHEG in just a minute’s time.
Groundbreakings, Ribbon Cuttings, Dedications and Events....
October 2013
Kansas Housing Conference Below are some pictures of our annual Kansas Appreciation Dinner and KHRC’s annual Bringing Kansas Home Housing Conference in Lawrence, Kansas (conference photos provided by KHRC).
Left: French Quarter hosted an Open House on June 6th, 2013, in Wichita, Kansas. Participating in the ribbon cutting are (L-R): Andy Bias (Mennonite Housing), Keith Dater (Representative of Congressman Mike Pompeo), Tom Stratman (MHEG), Pat Michaelis (MHEG), Fred Bentley (KHRC), Lavonta Williams (Wichita City Council, District 1), Jim O’Hare (Horizon Bank) and John Santer (NeighborWorks). Right: Cypress Pointe’s Ribbon Cutting took place on August 16th, 2013, in Omaha, Nebraska. Speakers, such as Congressman Lee Terry (above) spoke of the importance of offering affordable senior housing in our communities. Participating in the ribbon cutting are (L-R): Paula Rhian (Excel Development Group), Congressman Lee Terry, Dean Graham (MHI) Kelly Schultze (NIFA), Janet Latimer (Horizon Bank) Pamela Forster (Board Member of MHI), Brent Williams (Excel Development Group), Mayor Jean Stothert (City of Omaha) and Cindy Koster (MHEG).
Closed Acquisitions Above: Baker Creek Senior (left) and McKinley Crest (right) both hosted ribbon cuttings on August 29th, 2013, in Des Moines, Iowa. Baker Creek Senior, developed by Baker Creek Development, will provide 33 senior units. McKinley Crest, developed by Anawim Housing, will provide 60 multifamily units. Both properties will be managed by Anawim Housing. Among the many participants in the ribbon cutting were Congressman Tom Latham, Iowa Representative Kevin Koester, and Des Moines City Council Member Bob Mahaffey. Right: Frontier Housing celebrated their Ribbon Cutting on September 4th, 2013, in Parsons, Kansas. Participating in the ribbon cutting are (L-R): Kirk Wyckoff (Labette Bank), Fred Bentley (KHRC), Fred Gress (Parsons City Manager), Mark Cox (Vintage Construction), Peggy Wiens (tenant), Pat Michaelis (MHEG), Mayor Kevin Cruse (City of Parsons), Parsons City Commissioner Dan Goddard, Parsons City Commissioner Jeff Perez, Parsons City Comissioner Bill Hogelin.
LIHTC DevelopmentS
fund
city / State
Monument View Villa, L.L.C.
NF XVII
Gering, NE Total Units Closed
units 10
DATE September
10
While this past quarter did not see many closings, MHEG has been and is preparing for its busiest quarter of the year. The majority of MHEG’s 2013 acquisitions will be closed during the 4th quarter.
Staff Announcements Ben Henderson, Vice President of Asset Management Ben was recently hired as Vice President of Asset Management for our Omaha office. He will be responsible for the leadership of MHEG’s asset management and compliance monitoring teams, ensuring that MHEG’s portfolio is in excellent physical and financial condition and in compliance with the Housing Credit regulations. Ben comes to MHEG with over 20 years’ experience in the affordable housing industry. Most recently, he served as the Vice President of Community Investments and Vice President of LIHTC Asset Management during his seven years with AEGON USA Realty Advisors LLC in Cedar Rapids, Iowa. Prior to joining AEGON, he worked with USAA Real Estate Company and USAA Financial Services Company for over 20 years, successfully overseeing its Housing Credit portfolio. Ben also served as an original member of the Affordable Housing Investors Council and was integral in the development and implementation of a nationally recognized Housing Credit standard reporting format and watch list criteria. MHEG is very excited to have Ben join our team. He started with MHEG on July 29th.
Scott Fitzpatrick, Vice President - Business Development Officer, NE Region Left: Jackson Meadows celebrated their Ribbon Cutting on August 16th, 2013, in Columbus, Nebraska. Participating in the ribbon cutting are (L-R): Matt Thomas (Dana Point Development Corp), Jamie Wilson (Cypress Property Management Group), Jesse McCoy (ILH Construction), Mayor Michael Moser (City of Columbus), Norma Dreifurst (tenant), Tom Stratman (MHEG), Jim Rieker (Horizon Bank) and Teresa Kile (NIFA). After the ribbon cutting, guests were invited to tour Norma’s home, where she shared her stories and home baked cookies.
Scott was recently promoted from Acquisitions Manager of the Northeast Region (Iowa and Minnesota) to Vice President Business Development Officer of the Northeast Region. In his new position, he will be responsible for all affairs and activities in his region, including identifying and contacting potential investors and developers along with assisting the Acquisitions Department in the closing of all approved developments in his region.
Right: Senator Harkin speaks with Senator Jack Hatch and Ryan Galloway of Hatch Development Group at the Des Moines Greystone Homes Ribbon Cutting on September 23rd, 2013, in Des Moines, Iowa. Participating in the ribbon cutting are (L-R): Senator Harkin, Ryan Galloway (Hatch Development Group), Senator Jack Hatch, Sonja Roberts (Perennial Properties), Chris Hensley (MHEG), Dan Garrett (Garrett Development Group) and Carmela Brown (IFA Board of Directors).
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MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 6, Issue 3
20th Anniversary NASLEF Conference: Portsmouth, VA
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 June 2013
13520 California St., Ste. 250 Omaha, NE 68154
70% PV 7.39%
30%PV 3.17%
October 2013
This year’s annual NASLEF Conference was hosted in Portsmouth, Virginia at the Renaissance Waterfront Hotel from September 24th-26th. Several of MHEG’s staff was able to attend the three-day conference, including our new VP of Asset Management, Ben Henderson, who was included in their long list of great speakers. Ben offered his expertise for the session “AHIC, Watch Lists and Investor Scrutiny.” The conference had over 15 sessions, such as “Please Don’t Take My CRA Away” and “50 Shades of Green: Sustainable Design, Construction, Monitoring and More,” and included some local sightseeing with a Harbor Tour Cruise and an evening dinner at the Virginia Sports Hall of Fame & Museum.
AFR 2.47%
July 2013 70% PV
30%PV
AFR
7.46%
3.20%
2.80%
Next year’s conference will be held September 17th-19th, 2014, in Savannah, Georgia.
Schenck Retires From Wells Fargo Richard (Dick) Schenck retired at the end of September from Wells Fargo, after 45 years with the bank. Some of MHEG’s staff was fortunate enough to attend a reception in honor of his retirement. During the reception, Dick’s dedication, knowledge, leadership and work ethic were the theme of the evening, in addition to his ongoing commitment to the community and housing needs.
August 2013
TDHCA Board Meeting: Oct. 10th Austin, TX - Capitol Extension Auditorium
December cont.
TDHCA Board Meeting: Dec. 12th Austin, TX - Capitol Extension Auditorium
NIFA Board Meeting: Oct. 18th Aurora, NE - The Leadership Center
NIFA Board Meeting: Dec. 13th Lincoln, NE - NIFA Board Room
November
January
IFA Board Meeting: Nov. 6th Des Moines, IA - IFA Office
30%PV
AFR
7.55
3.24%
3.16%
September 2013
Upcoming Events October
70% PV
70% PV
30%PV
AFR
7.57%
3.24%
3.28%
Fortunately for us, although retiring from Wells Fargo, Dick will remain active with MHEG and continue to serve as Chairman of the Board of Directors and participate in many of our committees. Dick’s commitment to help the community and address the needs of affordable housing will continue, and MHEG is thankful for his guidance and knowledge.
October 2013 70% PV
30%PV
AFR
7.63%
3.27%
3.50%
Portfolio Update
NIFA Housing Innovation Marketplace Conference: Jan. 21st-22nd Omaha, NE - Regency Marriott
Developments Units
TDHCA Board Meeting: Nov. 7th Austin, TX - Capitol Extension Auditorium
Counties Represented Cities Represented
352 9,807 134 165
SDHDA Annual Housing Conference: Nov. 19th-20th Pierre, SD - Ramkota RiverCentre
Vacancy Percentage
5.32%*
Debt Coverage Ratio
1.64%*
OHFA Board of Trustees Meeting: Nov. 20th Oklahoma City, OK - Metro Tech - Business Conference Center
Information current as of 10/1/13 *Percentage compiled from 9/15/13 figures, vacancy percentage is using economic vacancy.
AHF LIVE Summit: Nov. 20th-22nd Chicago, IL - Fairmont Millennium Park
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December
IFA Board Meeting: Dec. 4th Des Moines, IA - IFA Office
For any other inquiries about the content of this newsletter, please contact Keely McAleer.
MHDC Commission Meeting: Dec. 6th Columbia, MO - Stoney Creek Inn 6
Several of the MHEG staff enjoy visiting with industry partners such as Kutak Rock, Dauby O’Connor & Zaleski, Horizon Bank and McGladrey.
Dick Schenck (left) is honored for his 45 years at Wells Fargo.
Dick, congratulations on your 45 years of service!
2013 Ad Astra Award Winners MHEG is proud to partner with many leading organizations in the affordable housing industry, and is even more proud when those organizations, developments or colleagues are recognized for their outstanding service. This past fall the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Lawrence, Kansas and presented Ad Astra Awards. The awards honor individuals and organizations who demonstrate excellence in developing affordable housing, shaping housing policy and creating innovative housing solutions to meet the daily needs of low and moderate-income Kansans. MHEG was excited to learn that two of our partners received awards this year recognizing them for their outstanding service to the affordable housing industry in Kansas. Special Achievement in Affordable Housing Development - Rural: Heritage Estates developed by Vintage Construction and located in Neodesha, Kansas (KF IX) Affordable Housing Trail Blazer: John Johnston, Executive Director of the Topeka Housing Authority (Managing Member of Echo Ridge and Tennesse Townhomes II, both KF VIII developments)
Fred Bentley (left), Director of Rental Housing Allocation for KHRC, and Dennis Mesa (right), Executive Director of KHRC, present Mark Cox of Vintage Construction with his Ad Astra Award.
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