MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 7, Issue 2
May 2014
20th Anniversary Annual Report
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Property Spotlight
4
Recent Events
4
Closed Acquisitions
5
Staff Announcements
5
Upcoming Events
6
MHEG recently mailed out its “20th Anniversary” Annual Report. This special edition report provides not only an overview of 2013’s successes, but of MHEG’s many successes over the past 20 years. Also included is a portfolio guide showcasing all of the properties we’ve been a part of, listed by city and fund. We’ve also enclosed a Guide to Low Income Housing Tax Credits for those that might be new to the affordable housing industry. If you would like additional copies of the 20th Anniversary report, please email Keely McAleer with your request. The report can also be found on our website, underneath the News & Events page.
Monthly LIHTC Rates
13520 California St., Ste. 250 Omaha, NE 68154
January 2013 70% PV
30%PV
AFR
7.60%
3.26%
3.49%
February 2013 70% PV 7.64%
30%PV
AFR
3.56%
3.56%
March 2013
Upcoming Events June
September
ADFA Board Meeting: Jul. 17th Little Rock, AR - ADFA Office
IFA Board Meeting: Jun. 4th Des Moines, IA - IFA Office
CHFA Board Meeting: Jul. 24th Denver, CO - CHFA Board Room
HousingIowa Conference: Sep. 3rd-5th Des Moines, IA - Marriott Downtown Hotel
KHRC Board Meeting: Jun. 4th Topeka, KS - KDFA Board Room
Texas Housin Conference: Jul. 28th-30th Austin, TX - Hilton Austin Hotel
KHRC Board Meeting: Sep. 4th Topeka, KS - KDFA Board Room
ADFA Board Meeting: Jun. 19th Little Rock, AR - ADFA Office
TDHCA Board Meeting: Jul. 31st Austin, TX - Capitol Extension Auditorium
TDHCA Board Meeting: Sep. 4th Austin, TX - Capitol Extension Auditorium
August
NASLEF’s 21st Annual Conference: Sep 17th-19th Savannah, GA - Westin Savannah Harbor Golf Resort & Spa
NIFA Board Meeting: Jun. 20th Lincoln, NE - NIFA Board Room NCSHA Housing Credit Connect: Jun. 24th-27th Chicago, IL - Hyatt Regency Chiacgo TDHCA Board Meeting: Jun. 5th, Jun. 26th Austin, TX - Capitol Extension Auditorium
July
KHRC Board Meeting: Jul. 3rd Topeka, KS - KDFA Board Room IFA Board Meeting: Jul. 9th Des Moines, IA - IFA Office OHFA Board of Trustees Meeting: Jul. 16th Oklahoma City, OK - OHFA’s Conference Room
IFA Board Meeting: Aug. 6th Des Moines, IA - IFA Office
KHRC Board Meeting: Aug. 7th Topeka, KS - KDFA Board Room TDHCA Board Meeting: Apr. 10th Austin, TX - Capitol Extension Auditorium NIFA Board Meeting: Aug. 15th Lincoln, NE - NIFA Board Room ADFA Board Meeting: Aug. 21st Little Rock, AR - ADFA Office
30%PV
AFR
7.60%
3.26%
3.36%
April 2013
MHEG Annual Meeting & Golf Outing: Jun. 2nd Ashland, NE - Quarry Oaks Golf Course
MHDC Commission Meeting: Jun. 20th Columbia, MO
70% PV
IFA Board Meeting: Sep. 3rd Des Moines, IA - IFA Office
70% PV
30%PV
AFR
7.59%
3.25%
3.32%
May 2014 70% PV
30%PV
AFR
7.60%
3.26%
3.27%
Units
378 10,579
ADFA Board Meeting: Sep. 18th Little Rock, AR - ADFA Office
Counties Represented
MHDC Commission Meeting: Sep. 18th Columbia, MO
Vacancy Percentage
5.51%*
Debt Coverage Ratio
1.68%*
OHFA Board of Trustees Meeting: Sep. 24th Oklahoma City, OK - OHFA’s Will Rogers Conference Room
Information current as of 5/23/14 *Percentage compiled from 3/31/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.
Cities Represented
CHFA Board Meeting: Sep. 25th Denver, CO - CHFA Board Room
144 179
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.
Kansas Housing Conference: Aug. 27th-29th Wichita, KS - Hyatt Regency Wichita
For any other inquiries about the content of this newsletter, please contact Keely McAleer.
CHFA Board Meeting: Aug. 28th Denver, CO - CHFA Board Room 6
Congratulations to the Colorado Housing and Finance Authority (CHFA) for celebrating their 40th anniversary this year. CHFA has invested over $10 billion into Colorado’s economy, strengthening affordable housing and economic development in the state. Over the past 40 years they have been able to assist in the development or preservation of over 60,000 affordable rental housing units. We are proud to partner with this great organization. To learn more about CHFA and their mission, check out their 40th Anniversary video.
Spectrum Companies Donates to People City’s Mission
Portfolio Update Developments
CHFA Celebrates 40 Years
The Spectrum Companies have a long history of donating to charities throughout the country. A couple of years ago they started a “Charitable Giving Initiative” program, meant to supplement the programs already supported by Spectrum making separate donations to certain charities at the recommendation of partners and clients. In 2014, at the suggestion of MHEG, People City’s Mission of Lincoln, Nebraska was selected as one of their recipients. They received over $1,600 from Spectrum. People City’s Mission developed and manages the Curtis Center (EFN XII) a transitional housing development in Lincoln, Nebraska that provides 60 single room occupancy units. 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.
The Curtis Center located in Lincoln, Nebraska.
1
Volume 7, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Spring has sprung! We’re finally emerging from a very cold winter. It is a season of rejuvenation and new life. Trees and flowers are blooming; farmers are planting their fields. Likewise, State Housing Finance Agencies have started allocating Housing Credits, sowing the seeds of more affordable housing and providing all of us the chance to change lives for a better tomorrow. It is an exciting time! Government officials, developers, investors, contractors, property managers - we all have our part in nurturing this latest crop of much needed development. Thanks to all of you for letting us be a part of it! In this update, I want to really focus on legislative affairs at both the federal and state level. The Federal: On February 26, 2014, House Ways & Means Chairman David Camp (R – MI) released his comprehensive tax reform discussion draft. This much anticipated blueprint has been several years in the making and is the first meaningful step towards overhauling the 1986 Internal Revenue Code. Importantly, it preserved the Low-Income Housing Tax Credit (one of only three business tax credits to make the cut). The draft was silent on the New Markets Tax Credit (which have expired) and eliminates the Historic Tax Credit and Renewable Energy Tax Credit. I am very grateful for the role each of you played in protecting the Housing Credit. Getting our elected officials to the properties to meet the residents really demonstrated the value of this program – it really is an effective public/private partnership. Of course, our work is not done. First, it is highly unlikely that tax reform will happen in 2014 (and possibly not until after the next Presidential election in 2016). Accordingly, we must continue to educate Senators and Representatives, especially freshman members who may not be familiar with the program. Second, Congressmen Tiberi (R-OH) and Neal (D-MA) are going to be reintroducing legislation very soon dealing with the tax credit rate for Housing Credit properties. The bill will be identical to H.R. 3661 from the last Congress and would permanently establish a 9% minimum tax credit rate for new construction and substantial rehabilitation of Housing Credit properties, and a 4% minimum tax credit for acquisition of existing property. Since
Housing Credits are capped and fully subscribed in every state, this legislation has very little cost but is tremendously important to affordable housing because it would give states more latitude in determining the amount of tax credits to award to development projects. The minimum 9% credit expired at the end of 2013. Please reach out to your Representatives and ask them to co-sponsor this important piece of legislation. The State: There is also plenty going on at the state level. Nebraska now has a state Historic Tax Credit. This last session also saw concerted efforts to reform the property tax treatment of Housing Credit properties. While we weren’t able to change the law this time around, advocates continue to work towards a solution that doesn’t discriminate against affordable housing developments via unequal taxation (the current system does). Oklahoma and Colorado are both seriously considering a state Low Income Housing Tax Credit. In Missouri, the state Low Income Housing Tax Credit came under attack but emerged unscathed thanks to the efforts of many advocates. In short, whether at the Federal or State level, it is important that each of us does all we can to preserve every single housing finance tool available. Members of Congress will be back home frequently during the summer months. August, in particular, is a good month to host an event, as both chambers are in recess. It is also important to include State and local elected officials at these events. MHEG stands ready and willing to help you with ground breakings and especially ribbon cuttings and open houses. Please reach out to Keely McAleer, our Business Development Officers or me if we can provide assistance
It’s been a busy and productive spring for the Northeast Region. On March 12th, the Iowa Finance Authority announced the 2014 tax credit reservations for Iowa. There were 15 projects awarded in total. MHEG provided letters of support to four of the projects awarded and we are working diligently on the underwriting of each. The first round application deadline for 2015 tax credits in Minnesota is approaching quickly on June 10th! Last week I was a first time participant in the Greater Des Moines Partnership’s annual Des Moines to Washington D.C. Trip. The trip is very beneficial and has been conducted by the GDMP for several years. This year MHEG sponsored the panel discussion “Housing and the Community Impact”. The panelists included: Bobby Rozen with the Bipartisan Policy Center, Sham Manglik with the National Low Income Housing Coalition, Kirsten Johnson-Obey from NeighborWorks and Eric Burmeister with the Polk County Housing Trust Fund. This discussion provided a very thought provoking insight into the importance of affordable housing on economic development from a broad national perspective right now to the community level. Eric noted that for every one six figure job created there are one and a fourth service industry jobs created. Thank you to all of the panelists for their participation and doing an excellent job. Not only was the session well attended, but it ran long due to the interaction and many questions from the audience! On a final note, we recently learned and are pleased to report that the Des Moines Greystone Homes are amongst the finalists in the Affordable Housing Finance Reader’s Choice Awards in the Family category. This innovative development concept provided highly sought after fourbedroom homes in the historic neighborhood of Sherman Hill in Des Moines. Look for the article in the upcoming July/August issue of Affordable Housing Finance magazine.
Northwest Region Update Cindy Koster
MHEG has closed its first tax credit project in the state of Colorado, Tabor Grand Hotel, LLLP. The project is a substantial rehabilitation of the Tabor Grand Hotel building in downtown Leadville and will provide housing for low and moderate income households. The Tabor Grand Hotel, originally constructed in 1885, was a grand hotel developed by mining magnate, Horace Tabor, during Leadville’s historic silver boom. The community has been a huge supporter, as preservation of the building is key to maintaining the economic viability of the city’s central business district. The building contains 37 affordable housing units and is the only affordable housing in Lake County. MHEG has also had the opportunity to write letters of interest on four projects in Colorado. We expect to learn of the projects awarded credits in the next month.
Have a great summer!
We are excited to announce the news of five projects receiving an award in Nebraska and two projects in South Dakota were allocated credits. We have written letters for round 2 in Nebraska and will learn of the outcome in June. The current list of projects which MHEG will be moving forward with in the Northwest Region will consist of 170 total units: 38 single family units, 94 senior units and 38 special needs units. We expect to add more projects to our pipeline once the remaining allocations are announced.
Kindest regards, John Wiechmann
Central Region Update Pat Michaelis The first and second quarters of 2014 are keeping us busy working with developers and general partners securing LIHTC awards for this year’s properties, which are beginning to be announced. Some of the advantages MHEG offers to developers and general partners are: we are local and experts at what we do; we have an “all in this together mentality”, your success is our success; we pride ourselves in long term relationships; we are willing and able to provide technical assistance as needed; and most importantly, we are dependable and do what we say. Please call us we if can be of assistance with your project. On the fundraising side, things are going very well. In recent years raising capital has had some challenges, but we are happy to report that MHEG’s new regional fund structure and the expansion of our territory has assisted with the placement of investors into the fund. On another positive note, I’d like to welcome Brooke Smith to MHEG and the Central Region Team as Asset Manager. Brooke brings loads of experience from her previous positions in real estate and property management. Please feel free to contact and welcome her to the Central Region. I also want to give you an update on Kansas Housing Association. In March several members traveled to Washington D.C. to meet with members of the Kansas Congressional Delegation. Our mission was to inform them about the importance of affordable housing to our communities and ask for their support as tax reform progresses. I especially want to give a shout out and thank you to Representative Lynn Jenkins (KS). Representative Jenkins is on the House Ways and Means Committee and her support was one of the primary reasons LIHTC’s were included by Chairman Camp in his tax reform proposal. The next KHA meeting is in conjunction with KHRC’s Housing Conference in August. Go to http://kansashousingassociation.com/ for more information. In closing, we value and appreciate our relationship with all of you, thank you for your business. Lisa, Brooke, Chris and I are ready to assist you!
2
May 2014
Above: Tabor Grand in Leadville, Colorado.
I would like to thank our wonderful partners, investors and staff for making this a great start in 2014.
South Region Update Andrea Frymire Oklahoma Legislature Passes State Housing Credit Pending Governor’s Signature
Oklahoma Tornadoes Year Anniversary
On May 22nd, the Oklahoma House of Representatives voted to pass SB2128 - the Oklahoma Affordable Housing Act; the bill passed the Senate earlier in the week. This bill will allow OHFA to allocate a state affordable housing tax credit to qualified projects placed in service after July 1, 2015. This state credit will be restricted to counties with populations of less than 150,000. For now, Cleveland, Oklahoma and Tulsa counties will be excluded from eligibility. These credits may not be used to reduce tax liability accruing prior to January 1, 2016. The amount of the state credit allocation will be equal to that of the federal allocation award not to exceed $4 million in state credits. The state credit will have a ten year credit period and be subject to the same recapture as the federal credit. The state credit may be carried forward for five years, but may not reduce a tax liability to less than zero.
It’s hard to believe that just a year ago the Oklahoma City metro and Moore community were devastated by severe storms and tornadoes. Almost 2,000 homes were heavily damaged or destroyed.
As of this writing, Governor Fallin has not signed SB2128, she has 15 days from session adjournment to sign or it is pocket vetoed. For our Oklahoma partners wanting to take action, please take a moment to call the Governor’s office to request her support and signature of SB2128.
As we remember the one year anniversary, we’d like to again sincerely thank all of our partners who donated to this cause.
It was also a year ago, at our 2013 Annual Meeting that MHEG asked partners attending the meeting for donations to assist those impacted by the tornadoes. MHEG was humbled to receive over $11,000 in pledges in five short hours and matched those contributions to raise over $22,000 for relief efforts.
3
Volume 7, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Spring has sprung! We’re finally emerging from a very cold winter. It is a season of rejuvenation and new life. Trees and flowers are blooming; farmers are planting their fields. Likewise, State Housing Finance Agencies have started allocating Housing Credits, sowing the seeds of more affordable housing and providing all of us the chance to change lives for a better tomorrow. It is an exciting time! Government officials, developers, investors, contractors, property managers - we all have our part in nurturing this latest crop of much needed development. Thanks to all of you for letting us be a part of it! In this update, I want to really focus on legislative affairs at both the federal and state level. The Federal: On February 26, 2014, House Ways & Means Chairman David Camp (R – MI) released his comprehensive tax reform discussion draft. This much anticipated blueprint has been several years in the making and is the first meaningful step towards overhauling the 1986 Internal Revenue Code. Importantly, it preserved the Low-Income Housing Tax Credit (one of only three business tax credits to make the cut). The draft was silent on the New Markets Tax Credit (which have expired) and eliminates the Historic Tax Credit and Renewable Energy Tax Credit. I am very grateful for the role each of you played in protecting the Housing Credit. Getting our elected officials to the properties to meet the residents really demonstrated the value of this program – it really is an effective public/private partnership. Of course, our work is not done. First, it is highly unlikely that tax reform will happen in 2014 (and possibly not until after the next Presidential election in 2016). Accordingly, we must continue to educate Senators and Representatives, especially freshman members who may not be familiar with the program. Second, Congressmen Tiberi (R-OH) and Neal (D-MA) are going to be reintroducing legislation very soon dealing with the tax credit rate for Housing Credit properties. The bill will be identical to H.R. 3661 from the last Congress and would permanently establish a 9% minimum tax credit rate for new construction and substantial rehabilitation of Housing Credit properties, and a 4% minimum tax credit for acquisition of existing property. Since
Housing Credits are capped and fully subscribed in every state, this legislation has very little cost but is tremendously important to affordable housing because it would give states more latitude in determining the amount of tax credits to award to development projects. The minimum 9% credit expired at the end of 2013. Please reach out to your Representatives and ask them to co-sponsor this important piece of legislation. The State: There is also plenty going on at the state level. Nebraska now has a state Historic Tax Credit. This last session also saw concerted efforts to reform the property tax treatment of Housing Credit properties. While we weren’t able to change the law this time around, advocates continue to work towards a solution that doesn’t discriminate against affordable housing developments via unequal taxation (the current system does). Oklahoma and Colorado are both seriously considering a state Low Income Housing Tax Credit. In Missouri, the state Low Income Housing Tax Credit came under attack but emerged unscathed thanks to the efforts of many advocates. In short, whether at the Federal or State level, it is important that each of us does all we can to preserve every single housing finance tool available. Members of Congress will be back home frequently during the summer months. August, in particular, is a good month to host an event, as both chambers are in recess. It is also important to include State and local elected officials at these events. MHEG stands ready and willing to help you with ground breakings and especially ribbon cuttings and open houses. Please reach out to Keely McAleer, our Business Development Officers or me if we can provide assistance
It’s been a busy and productive spring for the Northeast Region. On March 12th, the Iowa Finance Authority announced the 2014 tax credit reservations for Iowa. There were 15 projects awarded in total. MHEG provided letters of support to four of the projects awarded and we are working diligently on the underwriting of each. The first round application deadline for 2015 tax credits in Minnesota is approaching quickly on June 10th! Last week I was a first time participant in the Greater Des Moines Partnership’s annual Des Moines to Washington D.C. Trip. The trip is very beneficial and has been conducted by the GDMP for several years. This year MHEG sponsored the panel discussion “Housing and the Community Impact”. The panelists included: Bobby Rozen with the Bipartisan Policy Center, Sham Manglik with the National Low Income Housing Coalition, Kirsten Johnson-Obey from NeighborWorks and Eric Burmeister with the Polk County Housing Trust Fund. This discussion provided a very thought provoking insight into the importance of affordable housing on economic development from a broad national perspective right now to the community level. Eric noted that for every one six figure job created there are one and a fourth service industry jobs created. Thank you to all of the panelists for their participation and doing an excellent job. Not only was the session well attended, but it ran long due to the interaction and many questions from the audience! On a final note, we recently learned and are pleased to report that the Des Moines Greystone Homes are amongst the finalists in the Affordable Housing Finance Reader’s Choice Awards in the Family category. This innovative development concept provided highly sought after fourbedroom homes in the historic neighborhood of Sherman Hill in Des Moines. Look for the article in the upcoming July/August issue of Affordable Housing Finance magazine.
Northwest Region Update Cindy Koster
MHEG has closed its first tax credit project in the state of Colorado, Tabor Grand Hotel, LLLP. The project is a substantial rehabilitation of the Tabor Grand Hotel building in downtown Leadville and will provide housing for low and moderate income households. The Tabor Grand Hotel, originally constructed in 1885, was a grand hotel developed by mining magnate, Horace Tabor, during Leadville’s historic silver boom. The community has been a huge supporter, as preservation of the building is key to maintaining the economic viability of the city’s central business district. The building contains 37 affordable housing units and is the only affordable housing in Lake County. MHEG has also had the opportunity to write letters of interest on four projects in Colorado. We expect to learn of the projects awarded credits in the next month.
Have a great summer!
We are excited to announce the news of five projects receiving an award in Nebraska and two projects in South Dakota were allocated credits. We have written letters for round 2 in Nebraska and will learn of the outcome in June. The current list of projects which MHEG will be moving forward with in the Northwest Region will consist of 170 total units: 38 single family units, 94 senior units and 38 special needs units. We expect to add more projects to our pipeline once the remaining allocations are announced.
Kindest regards, John Wiechmann
Central Region Update Pat Michaelis The first and second quarters of 2014 are keeping us busy working with developers and general partners securing LIHTC awards for this year’s properties, which are beginning to be announced. Some of the advantages MHEG offers to developers and general partners are: we are local and experts at what we do; we have an “all in this together mentality”, your success is our success; we pride ourselves in long term relationships; we are willing and able to provide technical assistance as needed; and most importantly, we are dependable and do what we say. Please call us we if can be of assistance with your project. On the fundraising side, things are going very well. In recent years raising capital has had some challenges, but we are happy to report that MHEG’s new regional fund structure and the expansion of our territory has assisted with the placement of investors into the fund. On another positive note, I’d like to welcome Brooke Smith to MHEG and the Central Region Team as Asset Manager. Brooke brings loads of experience from her previous positions in real estate and property management. Please feel free to contact and welcome her to the Central Region. I also want to give you an update on Kansas Housing Association. In March several members traveled to Washington D.C. to meet with members of the Kansas Congressional Delegation. Our mission was to inform them about the importance of affordable housing to our communities and ask for their support as tax reform progresses. I especially want to give a shout out and thank you to Representative Lynn Jenkins (KS). Representative Jenkins is on the House Ways and Means Committee and her support was one of the primary reasons LIHTC’s were included by Chairman Camp in his tax reform proposal. The next KHA meeting is in conjunction with KHRC’s Housing Conference in August. Go to http://kansashousingassociation.com/ for more information. In closing, we value and appreciate our relationship with all of you, thank you for your business. Lisa, Brooke, Chris and I are ready to assist you!
2
May 2014
Above: Tabor Grand in Leadville, Colorado.
I would like to thank our wonderful partners, investors and staff for making this a great start in 2014.
South Region Update Andrea Frymire Oklahoma Legislature Passes State Housing Credit Pending Governor’s Signature
Oklahoma Tornadoes Year Anniversary
On May 22nd, the Oklahoma House of Representatives voted to pass SB2128 - the Oklahoma Affordable Housing Act; the bill passed the Senate earlier in the week. This bill will allow OHFA to allocate a state affordable housing tax credit to qualified projects placed in service after July 1, 2015. This state credit will be restricted to counties with populations of less than 150,000. For now, Cleveland, Oklahoma and Tulsa counties will be excluded from eligibility. These credits may not be used to reduce tax liability accruing prior to January 1, 2016. The amount of the state credit allocation will be equal to that of the federal allocation award not to exceed $4 million in state credits. The state credit will have a ten year credit period and be subject to the same recapture as the federal credit. The state credit may be carried forward for five years, but may not reduce a tax liability to less than zero.
It’s hard to believe that just a year ago the Oklahoma City metro and Moore community were devastated by severe storms and tornadoes. Almost 2,000 homes were heavily damaged or destroyed.
As of this writing, Governor Fallin has not signed SB2128, she has 15 days from session adjournment to sign or it is pocket vetoed. For our Oklahoma partners wanting to take action, please take a moment to call the Governor’s office to request her support and signature of SB2128.
As we remember the one year anniversary, we’d like to again sincerely thank all of our partners who donated to this cause.
It was also a year ago, at our 2013 Annual Meeting that MHEG asked partners attending the meeting for donations to assist those impacted by the tornadoes. MHEG was humbled to receive over $11,000 in pledges in five short hours and matched those contributions to raise over $22,000 for relief efforts.
3
Volume 7, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: Monument View Villas, L.L.C. Located in the Midwest, many of us are familiar with severe weather and the damaging effects it can have on housing. Often times a storm shelter or safe room can make all the difference to those in the direct path of a tornado. For this reason, Scotts Bluff Housing Authority is very excited to have their most recent project, Monument View Villas, be the first development in the area to feature a “safe room” for residents. The room is made of 6” concrete slab walls and ceiling that withstand winds of 200 miles per hour, the equivalent of a F3 tornado. In February, SBHA invited the public to watch as the walls and roof for the safe room were put into place. Monument View Villa is a 10-unit complex that will serve persons with disabilities with a preference for persons with severe and persistent mental illness in the Gering, Nebraska community. Other special needs can include physical disabilities, sleep apnea, COPD or other disorders that affect one’s ability to move, breathe or work. All units will meet ADA standards. The duplexes will offer eight one-bedroom units and two two-bedroom units ranging from 650-862 square feet. In addition to the safe room, Monument View Villas will provide an onsite laundry facility, community garden and a community building with a computer, TV, library and meeting space. In addition to tax credits syndicated by MHEG, funding for Monument View Villa was made available from the Federal Home Loan Bank of Topeka, Nebraska Department of Economic Development, Valley Bank & Trust and Housing Partners of Western Nebraska. For leasing information contact Nancy Bentley with the Housing Partners of Western Nebraska at #308-632-0473.
Monument View Villa, L.L.C. Managing Member
Scotts Bluff Housing Authority
Developer
Scotts Bluff Housing Authority
Property Manager
Scotts Bluff Housing Authority
May 2014
Closed Acquisitions LIHTC DevelopmentS
fund
city / State
units
DATE
DEVELOPER
Tabor Grand, LLLP
MHEG 40
Leadville, Colorado
37
March
Overland Property Group
Hilltop Senior Limited Partnership
MHEG 40
Des Moines, Iowa
62
April
Conlin Development / Barnes Realty
Total Units Closed
99
Staff Announcements Jennifer Meaike, Compliance Specialist Jennifer was hired as a Compliance Specialist for our Omaha office. She will be responsible for assisting the compliance department and working with property managers/owners regarding compliance/asset management issues. Her main duties include reviewing and retaining all initial tenant files for properties, assisting with lease-up and providing technical support for property managers, as well as monitoring and maintaining folders on MHEG’s portfolio of projects tracking rent/income percentages. Jennifer joins MHEG with over 8 years property management experience and previously worked for Seldin Company. She started with MHEG at the end of January 2014.
Brooke Smith, Asset Manager Brooke was recently hired as an Asset Management for our Topeka office. Her duties will include overseeing the Kansas development portfolio with financial reviews, site visits and problem resolution/workouts as needed. In addition, Brooke will also provide monthly financial projects for her portfolio and assist property managers as needed. Brooke comes to MHEG with over 15 years’ experience in the real estate industry. Most recently she served as Regional Manager for Nolan Real Estate Services. She started with MHEG at the end of May 2014.
Geoff Grafford, Asset Manager
Groundbreakings, Ribbon Cuttings, Dedications and Events....
Geoff was recently hired as an Asset Management for our Oklahoma City office. His duties will include overseeing the Oklahoma development portfolio with financial reviews, site visits and problem resolution/workouts as needed. In addition, Geoff will also provide monthly financial projects for his portfolio and assist property managers as needed. Geoff comes to MHEG with over 15 years’ experience in the real estate industry, including asset manager experience with the U.S. Department of HUD. Most recently he served as an Appraisal Auditor for Adfitech, Inc. He started with MHEG at the end of May 2014.
Above Left: Autumn Creek Villas (OF IV) celebrated with a ribbon cutting event on January 27, 2014 in Midwest City, Oklahoma. This newly constructed community of duplexes will offer 30 affordable housing rental units for seniors in the Midwest City community. Andrea Frymire from MHEG (sixth person from the left) was able to attend the event and help celebrate. Above Center: The Open Door Mission received the “Making a Difference Award” from NIFA at their 2014 Housing Innovation Marketplace Conference in January for their Rebuilding Lives Campaign. Partners of the campaign: MHEG, J. Development Company, Alley Poyner Architecture, Lund-Ross Construction and Horizon Bank also received recognition from NIFA. Right: Some of MHEG’s staff was able to attend the recent groundbreaking ceremony for the North Omaha Intergenerational Campus for Human Services on April 29, 2014 in Omaha, Nebraska. The campus is a collaborative effort between Holy Name Housing Corporation and Heartland Family Service. It not only includes affordable senior housing developments North Omaha Senior Cottages Phase I and II (NF XVI and NF XVII), but will also provide a community senior center, residential program for youth in crisis, a health clinic, community gardens and substance abuse treatment facility for pregnant women and mothers of young children. MHEG staff Deb Swanson, Nicole Koster, Laurie Stephenson and Jordan Abboud are shown in the picture to the right attending the event.
4
5
Volume 7, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: Monument View Villas, L.L.C. Located in the Midwest, many of us are familiar with severe weather and the damaging effects it can have on housing. Often times a storm shelter or safe room can make all the difference to those in the direct path of a tornado. For this reason, Scotts Bluff Housing Authority is very excited to have their most recent project, Monument View Villas, be the first development in the area to feature a “safe room” for residents. The room is made of 6” concrete slab walls and ceiling that withstand winds of 200 miles per hour, the equivalent of a F3 tornado. In February, SBHA invited the public to watch as the walls and roof for the safe room were put into place. Monument View Villa is a 10-unit complex that will serve persons with disabilities with a preference for persons with severe and persistent mental illness in the Gering, Nebraska community. Other special needs can include physical disabilities, sleep apnea, COPD or other disorders that affect one’s ability to move, breathe or work. All units will meet ADA standards. The duplexes will offer eight one-bedroom units and two two-bedroom units ranging from 650-862 square feet. In addition to the safe room, Monument View Villas will provide an onsite laundry facility, community garden and a community building with a computer, TV, library and meeting space. In addition to tax credits syndicated by MHEG, funding for Monument View Villa was made available from the Federal Home Loan Bank of Topeka, Nebraska Department of Economic Development, Valley Bank & Trust and Housing Partners of Western Nebraska. For leasing information contact Nancy Bentley with the Housing Partners of Western Nebraska at #308-632-0473. Nancy Bentley quote.
Monument View Villa, L.L.C. Managing Member
Scotts Bluff Housing Authority
Developer
Scotts Bluff Housing Authority
Property Manager
Scotts Bluff Housing Authority
May 2014
Closed Acquisitions LIHTC DevelopmentS
fund
city / State
units
DATE
DEVELOPER
Tabor Grand, LLLP
MHEG 40
Leadville, Colorado
37
March
Overland Property Group
Hilltop Senior Limited Partnership
MHEG 40
Des Moines, Iowa
62
April
Conlin Development / Barnes Realty
Total Units Closed
99
Staff Announcements Jennifer Meaike, Compliance Specialist Jennifer was hired as a Compliance Specialist for our Omaha office. She will be responsible for assisting the compliance department and working with property managers/owners regarding compliance/asset management issues. Her main duties include reviewing and retaining all initial tenant files for properties, assisting with lease-up and providing technical support for property managers, as well as monitoring and maintaining folders on MHEG’s portfolio of projects tracking rent/income percentages. Jennifer joins MHEG with over 8 years property management experience and previously worked for Seldin Company. She started with MHEG at the end of January 2014.
Brooke Smith, Asset Manager Brooke was recently hired as an Asset Management for our Topeka office. Her duties will include overseeing the Kansas development portfolio with financial reviews, site visits and problem resolution/workouts as needed. In addition, Brooke will also provide monthly financial projects for her portfolio and assist property managers as needed. Brooke comes to MHEG with over 15 years’ experience in the real estate industry. Most recently she served as Regional Manager for Nolan Real Estate Services. She started with MHEG at the end of May 2014.
Geoff Grafford, Asset Manager
Groundbreakings, Ribbon Cuttings, Dedications and Events....
Geoff was recently hired as an Asset Management for our Oklahoma City office. His duties will include overseeing the Oklahoma development portfolio with financial reviews, site visits and problem resolution/workouts as needed. In addition, Geoff will also provide monthly financial projects for his portfolio and assist property managers as needed. Geoff comes to MHEG with over 15 years’ experience in the real estate industry, including asset manager experience with the U.S. Department of HUD. Most recently he served as an Appraisal Auditor for Adfitech, Inc. He started with MHEG at the end of May 2014.
Above Left: Autumn Creek Villas (OF IV) celebrated with a ribbon cutting event on January 27, 2014 in Midwest City, Oklahoma. This newly constructed community of duplexes will offer 30 affordable housing rental units for seniors in the Midwest City community. Andrea Frymire from MHEG (sixth person from the left) was able to attend the event and help celebrate. Above Center: The Open Door Mission received the “Making a Difference Award” from NIFA at their 2014 Housing Innovation Marketplace Conference in January for their Rebuilding Lives Campaign. Partners of the campaign: MHEG, J. Development Company, Alley Poyner Architecture, Lund-Ross Construction and Horizon Bank also received recognition from NIFA. Right: Some of MHEG’s staff was able to attend the recent groundbreaking ceremony for the North Omaha Intergenerational Campus for Human Services on April 29, 2014 in Omaha, Nebraska. The campus is a collaborative effort between Holy Name Housing Corporation and Heartland Family Service. It not only includes affordable senior housing developments North Omaha Senior Cottages Phase I and II (NF XVI and NF XVII), but will also provide a community senior center, residential program for youth in crisis, a health clinic, community gardens and substance abuse treatment facility for pregnant women and mothers of young children. MHEG staff Deb Swanson, Nicole Koster, Laurie Stephenson and Jordan Abboud are shown in the picture to the right attending the event.
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MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 7, Issue 2
May 2014
20th Anniversary Annual Report
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Property Spotlight
4
Recent Events
4
Closed Acquisitions
5
Staff Announcements
5
Upcoming Events
6
MHEG recently mailed out its “20th Anniversary” Annual Report. This special edition report provides not only an overview of 2013’s successes, but of MHEG’s many successes over the past 20 years. Also included is a portfolio guide showcasing all of the properties we’ve been a part of, listed by city and fund. We’ve also enclosed a Guide to Low Income Housing Tax Credits for those that might be new to the affordable housing industry. If you would like additional copies of the 20th Anniversary report, please email Keely McAleer with your request. The report can also be found on our website, underneath the News & Events page.
Monthly LIHTC Rates
13520 California St., Ste. 250 Omaha, NE 68154
January 2013 70% PV
30%PV
AFR
7.60%
3.26%
3.49%
February 2013 70% PV 7.64%
30%PV
AFR
3.56%
3.56%
March 2013
Upcoming Events June
September
ADFA Board Meeting: Jul. 17th Little Rock, AR - ADFA Office
IFA Board Meeting: Jun. 4th Des Moines, IA - IFA Office
CHFA Board Meeting: Jul. 24th Denver, CO - CHFA Board Room
HousingIowa Conference: Sep. 3rd-5th Des Moines, IA - Marriott Downtown Hotel
KHRC Board Meeting: Jun. 4th Topeka, KS - KDFA Board Room
Texas Housin Conference: Jul. 28th-30th Austin, TX - Hilton Austin Hotel
KHRC Board Meeting: Sep. 4th Topeka, KS - KDFA Board Room
ADFA Board Meeting: Jun. 19th Little Rock, AR - ADFA Office
TDHCA Board Meeting: Jul. 31st Austin, TX - Capitol Extension Auditorium
TDHCA Board Meeting: Sep. 4th Austin, TX - Capitol Extension Auditorium
August
NASLEF’s 21st Annual Conference: Sep 17th-19th Savannah, GA - Westin Savannah Harbor Golf Resort & Spa
NIFA Board Meeting: Jun. 20th Lincoln, NE - NIFA Board Room NCSHA Housing Credit Connect: Jun. 24th-27th Chicago, IL - Hyatt Regency Chiacgo TDHCA Board Meeting: Jun. 5th, Jun. 26th Austin, TX - Capitol Extension Auditorium
July
KHRC Board Meeting: Jul. 3rd Topeka, KS - KDFA Board Room IFA Board Meeting: Jul. 9th Des Moines, IA - IFA Office OHFA Board of Trustees Meeting: Jul. 16th Oklahoma City, OK - OHFA’s Conference Room
IFA Board Meeting: Aug. 6th Des Moines, IA - IFA Office
KHRC Board Meeting: Aug. 7th Topeka, KS - KDFA Board Room TDHCA Board Meeting: Apr. 10th Austin, TX - Capitol Extension Auditorium NIFA Board Meeting: Aug. 15th Lincoln, NE - NIFA Board Room ADFA Board Meeting: Aug. 21st Little Rock, AR - ADFA Office
30%PV
AFR
7.60%
3.26%
3.36%
April 2013
MHEG Annual Meeting & Golf Outing: Jun. 2nd Ashland, NE - Quarry Oaks Golf Course
MHDC Commission Meeting: Jun. 20th Columbia, MO
70% PV
IFA Board Meeting: Sep. 3rd Des Moines, IA - IFA Office
70% PV
30%PV
AFR
7.59%
3.25%
3.32%
May 2014 70% PV
30%PV
AFR
7.60%
3.26%
3.27%
Units
378 10,579
ADFA Board Meeting: Sep. 18th Little Rock, AR - ADFA Office
Counties Represented
MHDC Commission Meeting: Sep. 18th Columbia, MO
Vacancy Percentage
5.51%*
Debt Coverage Ratio
1.68%*
OHFA Board of Trustees Meeting: Sep. 24th Oklahoma City, OK - OHFA’s Will Rogers Conference Room
Information current as of 5/23/14 *Percentage compiled from 3/31/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.
Cities Represented
CHFA Board Meeting: Sep. 25th Denver, CO - CHFA Board Room
144 179
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.
Kansas Housing Conference: Aug. 27th-29th Wichita, KS - Hyatt Regency Wichita
For any other inquiries about the content of this newsletter, please contact Keely McAleer.
CHFA Board Meeting: Aug. 28th Denver, CO - CHFA Board Room 6
Congratulations to the Colorado Housing and Finance Authority (CHFA) for celebrating their 40th anniversary this year. CHFA has invested over $10 billion into Colorado’s economy, strengthening affordable housing and economic development in the state. Over the past 40 years they have been able to assist in the development or preservation of over 60,000 affordable rental housing units. We are proud to partner with this great organization. To learn more about CHFA and their mission, check out their 40th Anniversary video.
Spectrum Companies Donates to People City’s Mission
Portfolio Update Developments
CHFA Celebrates 40 Years
The Spectrum Companies have a long history of donating to charities throughout the country. A couple of years ago they started a “Charitable Giving Initiative” program, meant to supplement the programs already supported by Spectrum making separate donations to certain charities at the recommendation of partners and clients. In 2014, at the suggestion of MHEG, People City’s Mission of Lincoln, Nebraska was selected as one of their recipients. They received over $1,600 from Spectrum. People City’s Mission developed and manages the Curtis Center (EFN XII) a transitional housing development in Lincoln, Nebraska that provides 60 single room occupancy units. 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.
The Curtis Center located in Lincoln, Nebraska.
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