MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 8, Issue 1
January 2015
Oklahoma Annual Appreciation Luncheon
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
Midwest Housing’s annual luncheon in Oklahoma was a success again this year. We hosted over eighty guests on the 50th floor of the Devon Tower on November 19th, 2014, following OHFA’s Board Meeting. This annual event is an opportunity to say thank you to the affordable housing community in Oklahoma and one of the many ways that we serve our partners.
515 N. 162nd Ave., Ste. 202, Omaha, NE 68118
Monthly LIHTC Rates October 2014 70% PV
30%PV
AFR
7.54%
3.23%
2.89%
November 2014 70% PV
30%PV
AFR
7.55%
3.24%
2.91%
December 2014
Upcoming Events February
ADFA Board Meeting: Mar. 19th Little Rock, AR - ADFA Office
IFA Board Meeting: Feb. 4th Des Moines, IA - IFA Office
OHFA Board of Trustees Meeting: Mar. 25th Oklahoma City, OK - OHFA’s Conference Room
KHRC Board Meeting: May 6th Topeka, KS - KDFA Board Room
KHRC Board Meeting: Feb. 5th Topeka, KS - KDFA Board Room
CHFA Board Meeting: Mar. 26th Denver, CO - CHFA Board Room
TDHCA Board Meeting: May 7th Austin, TX - Capitol Extension Auditorium
ADFA Board Meeting: Feb. 19th Little Rock, AR - ADFA Office
April
OHFA Board of Trustees Meeting: May 20th Oklahoma City, OK - OHFA’s Conference Room OHFA Round 2 Announcements
NIFA Board Meeting: Feb. 20th Lincoln, NE - NIFA Board Room CHFA Board Meeting: Feb. 26th Denver, CO - CHFA Board Room
March
ADFA Applications Due: Mar. 2nd KHRC Board Meeting: Mar. 5th Topeka, KS - KDFA Board Room IFA Board Meeting: Mar. 11th Des Moines, IA - IFA Office
IFA Board Meeting: Apr. 1st Des Moines, IA - IFA Office KHRC Board Meeting: Apr. 2nd Topeka, KS - KDFA Board Room ADFA Board Meeting: Apr. 16th Little Rock, AR - ADFA Office
30%PV
AFR
7.51%
3.22%
2.74%
January 2015
May
Housing Innovation Marketplace: Feb. 3rd-4th Omaha, NE - Omaha Marriott Regency Hotel
TDHCA Board Meeting: Feb. 19th Austin, TX - Capitol Extension Auditorium
70% PV
IFA Board Meeting: May 6th Des Moines, IA - IFA Office
70% PV
30%PV
AFR
7.51%
3.22%
2.67%
February 2015 70% PV
30%PV
AFR
7.47%
3.20%
2.41%
Portfolio Update Developments Units
CHFA Board Meeting: May 28th Denver, CO - CHFA Board Room
Counties Represented Cities Represented
Save the Date!
401 11,327 148 183
Vacancy Percentage
6.32%*
NASLEF 2015
Debt Coverage Ratio
1.51*
NIFA Board Meeting: Apr. 17th Lincoln, NE - NIFA Board Room
NASLEF’s 22nd Annual Conference will be held September 16th-18th, 2015, in Kansas City, Missouri!
Information current as of 1/30/15 *Percentage compiled from 9/30/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.
TDHCA Board Meeting: Dec. 18th Austin, TX - Capitol Extension Auditorium
Check www.naslef.org for additional information about the conference.
TDHCA Board Meeting: Apr. 16th Austin, TX - Capitol Extension Auditorium
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.
CHFA Board Meeting: Apr. 23rd Denver, CO - CHFA Board Room
TDHCA Board Meeting: Mar. 12th Austin, TX - Capitol Extension Auditorium
For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6
Left: MHEG staff Jordan Abboud, Sammy Ehtisham, Andrea Frymire, Geoff Grafford and Lisa Bryan attend the event. Center: John Wiechmann (MHEG) says a few words during the luncheon. Right: Attendees of the luncheon included (sitting left to right) Andrea Frymire (MHEG), Carl Hudgins (Commerce Bank), Fred Fellers (Commerce Bank), David Brooks (MidFirst), Charles Lee (MidFirst), David Attaway (First Bank & Trust). And standing Jeff Hairston (FHLBank Topeka) and Tom Behrens (American Fidelity).
MHEG Raises Over $175M in 2014 We are excited to announce that MHEG was able to raise over $175 million in equity capital in 2014. The equity total is comprised from Kansas Fund X, L.P., MHEG Fund 40, LP, MHEG Fund 42, LP and MHEG Community Fund 43, LP. The equity raised in these funds will assist in the development of multiple properties and help create almost a thousand units of affordable housing. Investors closed in 2014 included: American Fidelity Assurance Company, Andover State Bank, BancFirst, Bank of Hays, Bank of the West, Bank SNB, Capital City Bank, Capitol Federal Savings Bank, Colorado Federal Savings Bank, Commerce Bank, Elkhorn Valley Bank & Trust, Farm & Home Insurance Agency, Farmers and Merchants Investment, Inc., First National Bank of Omaha, Garmin International, INTRUST Bank, Iowa State Bank, Kaw Valley Bank, Landmark National Bank, MetLife, Mutual of Omaha Bank, North Central Bancorp, Northwestern Mutual Life Insurance Company, Pinnacle Bank, The Citizens State Bank, UMB Bank, Wells Fargo and West Bank.
We Moved!
Website Update
MHEG officially relocated to its new Omaha headquarters on December 15th. Please make sure to update your records with our new address:
Please note we are no longer listing the names of our investors or providing links to their websites on the Midwest Housing website. Some of our investors were receiving solicitations as a result of being listed on our website. We apologize for any unwanted communication due to this.
515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 Our open house is set for the first week in February, look for pictures of our new space in the spring/summer issue of MHEG in a Minute.
We decided to be proactive and remove your information from our site in an effort to stop this. Thank you for your understanding in our removal.
1
Volume 8, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Happy New Year! It is my sincere hope that 2014 was a success for each of you and that 2015 is off to a strong start! I really enjoy this time of year. Everything is new – new office space, new opportunities, new deals, a new Congress and new goals. We have successfully relocated our Omaha office (basically to 162nd and West Dodge) and look forward to welcoming many of you to it during our Open House on February 3rd. If you can’t make the Open House, please feel free to stop by whenever you have the chance. We are always happy to see our partners and friends. 2014 saw us continuing to expand our presence in Missouri, Arkansas, Texas, Colorado, South Dakota and Minnesota while still serving our core states of Nebraska, Kansas, Iowa and Oklahoma. The great MHEG team raised $175 million of new capital, made investments in 25 different developments and helped finance over 800 units of quality affordable housing. Thanks to our wonderful partners (that’s each of you reading this), we’ve helped create more than 11,000 units of quality affordable housing since 1993! 2015 will be another exciting year, full of new opportunities! Nebraska now has a state historic tax credit, Oklahoma enacted a state low income housing tax credit and Colorado brought back its state low income housing tax credit. These are welcome resources at a time when many other funding sources are being reduced or eliminated. On the development front, applications for new deals have already been submitted in Iowa and Oklahoma (Round 1). Nebraska Round 1 applications and Kansas applications are due the first week of February. It’s great to work with our developer partners on these applications and see the enthusiasm, innovation and hard work that drives the next round of affordable housing development.
House leaders have all signaled their willingness to tackle only corporate tax reform. While there are still major differences between Republicans and Democrats on just what corporate tax reform should look like, there are also several areas of agreement. Combined with both parties’ desire to demonstrate to voters that each is capable of governing effectively, this corporate-only approach increases the chances of tax reform occurring in the next 12 – 24 months. What does this mean for us? We must continue to educate our elected officials on the value of the Housing Credit program, ensuring that it is preserved if and when tax reform takes place. We must also push for legislation to permanently lock the credit rate at 9%. We must get Members of Congress to the properties and let them meet the residents we serve. When it comes to selling the program to our elected officials, seeing is believing. Please hold groundbreakings, ribbon cuttings and open houses to showcase these great developments. Schedule these events when Congress is in recess (even if it means waiting a few months to hold your event). Offer speaking opportunities for our Senators and Representatives and invite newspaper and television coverage. As always, if MHEG can help you plan an open house or ribbon cutting, please let us know. Please also join the A.C.T.I.O.N. coalition (www.rentalhousing.org) to learn what else you can do to protect the Housing Credit.
We are pleased to introduce Amy Leonard as our new Asset Manager in the Des Moines office. Amy comes to us most recently from Neighborhood Finance Corporation and Hubbell Realty prior to that. She has a great foundation of real estate and accounting experience. We are excited to have Amy join the MHEG team and look forward to her expertise assisting our portfolio in our NE region.
Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2014 such a great year! We at MHEG look forward to partnering with all of you again in 2015 to change even more lives for a better tomorrow.
Winter has come with a vengeance in the Northwest region including a shift in territories. With all of the wonderful work Cindy Koster has done in Nebraska over the years she is going to remain the point of contact for new development in Nebraska, allowing me to focus on my home state of Minnesota. I am the point of contact for Minnesota, South Dakota and Colorado.
Last but not least, we should talk about our new Congress. Republicans won back the Senate in the November ’14 elections and now control both houses of Congress. The White House, Senate leaders and
Central Region Update Pat Michaelis
Over the past few months we have witnessed an increased level of “NIMBYism” (Not In My Back Yard viewpoints) in relation to the development of affordable housing utilizing tax credits. Perceived impacts on property values, schools, density and traffic congestion are cited as reasons for opposition to further development. However, comments such as ‘tenements’ and ‘those people’ are common in arguments against the development of affordable housing, perhaps in an unconscious way to dehumanize the topic. Counter to these arguments are numerous studies indicating that affordable housing development has negligible impact and perhaps a positive impact on property values, as well as schools. Economists from the Federal Reserve Bank have published two articles looking at those very things in recent years. Click on the article titles below for the links: The Impact of LIHTC Program on Local Schools Low-Income Housing Tax Credit Developments and Neighborhood Property Conditions It is important to remember the population that affordable housing is serving. Teachers, administrative assistants, the staff at the dry cleaner, the barista at the coffee shop, bank tellers, the vet tech, and many more people that we encounter everyday are in occupations where the average salaries require them to live in affordable housing. Our senior population is another group assisted by affordable housing. Most people are not even aware that many of the quality developments they see every day are affordable housing.
Northwest Region Update Jen Oscarson
The Northwest region had a wonderful 2014 with the first development closed in Colorado, a historic renovation in Leadville and our second deal closed in South Dakota, new construction of supportive housing in Sioux Falls and a promising 2015 with the anticipation of closing MHEG’s first development in Minnesota. In addition to Minnesota Housing annual allocation of tax credits, Governor Dayton signed a bill allocating an unprecedented amount of Housing Infrastructure Bonds ($100 million) to provide new and preserved affordable housing units in the state. The results, Minnesota has a record state investment in multifamily affordable housing with an estimated syndication of nearly $210 million. While not enough to house the 10,000 to 14,000 Minnesotans who sleep on the streets any given night, these dollars will provide nearly 4,000 units of affordable housing, of that amount 325 units will be directed to new and preserved long term homeless housing and 154 units will target new supportive housing units for veterans. The Governor estimates this investment in housing will also create 5,700 new jobs. This is an exciting year for Minnesota and a wonderful example of how the private and public sector work together to create substantial differences in people’s lives.
2014 was another very strong year for MHEG overall. The Central Region signed eleven properties into MHEG Fund 42, L.P. These were funded by many excellent repeat investors. Nine properties were in Kansas and two in Missouri. Based on MHDC awards we will have a very strong 2015 in Missouri. Kansas applications are due February 6th and we will be providing syndicator letters for many.
Happy 2015, I am looking forward to working with all of you to make a difference in each of the resident’s lives we impact!
I want to make a few comments about the changing LIHTC market. Clearly there is more money looking to invest than projects to fund. The reverse was the case a few short years ago. Developers and General Partners have choices like never before. We can assure you that MHEG will be very competitive in both terms and pricing. But more importantly we are dependable, show up on time, and do what we say. With the manpower and funding available, our experienced and professional staff stands ready to assist and get deals closed. We understand and are well informed about our markets. Local offices mean you know our decision makers and team. Thank you for your prior business; we look forward to working with you in the future.
The Southern Region is pleased to announce the completion of several developments. The first is in Arkansas, Rolling Hills Estate, a senior development located in Paragould. I had an opportunity to visit the site in December just as construction was wrapping up. The property is located in a lovely area with gentle, rolling hills and includes a walking trail among other amenities for the residents. We are enjoying our partnership with the Paragould Housing Authority and White River Regional Housing. They have already leased 22 of 32 units and currently have another 9 applications pending. Next up in Arkansas is an RD acquisition/rehab with PDC Companies. This development is located in Huntsville. We look forward to partnering with PDC on this and future developments.
The longer I am in this business it is clearer and clearer to me we are all in this together. This is a very complex business and we need knowledgeable and dependable partners. We appreciate being your trusted partner. As always, Lisa, Brooke, Chris or I stand ready to assist you. We thank you and appreciate your business. All the best in 2015. Left: Several people gathered to celebrate the grand opening and ribbon cutting of Bedford Place (KF X) on Oct. 30, 2014 in Great Bend, Kansas. Including Pat Michaelis (center). Bedford Place will offer 22 units for senior residents in the Great Bend community.
2
January 2015
South Region Update Andrea Frymire
In Oklahoma our first historic rehab was completed on December 31, 2014. The Dennis Huggins Memorial Apartments in downtown Durant has received a beautiful renovation courtesy of Big 5 Community Services and Strategic Realty. Brent Lacefield and Jim Petty (both with Strategic Realty) coordinated the renovation which had to meet some pretty tight deadlines. Dennis Huggins will provide 24 units of housing within walking distance of many downtown amenities. Dennis Huggins also provides the first ghost in
our portfolio with some site workers reporting seeing the face of a gentleman in a window. Special thanks to Brent and Jim for all of their hard work on this development. In Texas, The Reserves at Maplewood, a 36 multifamily unit development in Wichita Falls, is nearing completion. We look forward to receiving COs on this development soon. We are currently working on closing our second development in Texas, The Reserves at Brookside. This development is with longtime partner, Overland Property Group. We look forward to another successful partnership with OPG as we provide 48 units of family housing to the town of Borger. We are looking forward to a busy and productive 2015 in the Southern Region, especially with our new state housing tax credit in Oklahoma. Thank you to all of our partners throughout 2014 for another successful year!
3
Volume 8, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Happy New Year! It is my sincere hope that 2014 was a success for each of you and that 2015 is off to a strong start! I really enjoy this time of year. Everything is new – new office space, new opportunities, new deals, a new Congress and new goals. We have successfully relocated our Omaha office (basically to 162nd and West Dodge) and look forward to welcoming many of you to it during our Open House on February 3rd. If you can’t make the Open House, please feel free to stop by whenever you have the chance. We are always happy to see our partners and friends. 2014 saw us continuing to expand our presence in Missouri, Arkansas, Texas, Colorado, South Dakota and Minnesota while still serving our core states of Nebraska, Kansas, Iowa and Oklahoma. The great MHEG team raised $175 million of new capital, made investments in 25 different developments and helped finance over 800 units of quality affordable housing. Thanks to our wonderful partners (that’s each of you reading this), we’ve helped create more than 11,000 units of quality affordable housing since 1993! 2015 will be another exciting year, full of new opportunities! Nebraska now has a state historic tax credit, Oklahoma enacted a state low income housing tax credit and Colorado brought back its state low income housing tax credit. These are welcome resources at a time when many other funding sources are being reduced or eliminated. On the development front, applications for new deals have already been submitted in Iowa and Oklahoma (Round 1). Nebraska Round 1 applications and Kansas applications are due the first week of February. It’s great to work with our developer partners on these applications and see the enthusiasm, innovation and hard work that drives the next round of affordable housing development.
House leaders have all signaled their willingness to tackle only corporate tax reform. While there are still major differences between Republicans and Democrats on just what corporate tax reform should look like, there are also several areas of agreement. Combined with both parties’ desire to demonstrate to voters that each is capable of governing effectively, this corporate-only approach increases the chances of tax reform occurring in the next 12 – 24 months. What does this mean for us? We must continue to educate our elected officials on the value of the Housing Credit program, ensuring that it is preserved if and when tax reform takes place. We must also push for legislation to permanently lock the credit rate at 9%. We must get Members of Congress to the properties and let them meet the residents we serve. When it comes to selling the program to our elected officials, seeing is believing. Please hold groundbreakings, ribbon cuttings and open houses to showcase these great developments. Schedule these events when Congress is in recess (even if it means waiting a few months to hold your event). Offer speaking opportunities for our Senators and Representatives and invite newspaper and television coverage. As always, if MHEG can help you plan an open house or ribbon cutting, please let us know. Please also join the A.C.T.I.O.N. coalition (www.rentalhousing.org) to learn what else you can do to protect the Housing Credit.
We are pleased to introduce Amy Leonard as our new Asset Manager in the Des Moines office. Amy comes to us most recently from Neighborhood Finance Corporation and Hubbell Realty prior to that. She has a great foundation of real estate and accounting experience. We are excited to have Amy join the MHEG team and look forward to her expertise assisting our portfolio in our NE region.
Thank you again to all of our volunteers, investors, developers, general partners, property managers, financing partners and government officials for making 2014 such a great year! We at MHEG look forward to partnering with all of you again in 2015 to change even more lives for a better tomorrow.
Winter has come with a vengeance in the Northwest region including a shift in territories. With all of the wonderful work Cindy Koster has done in Nebraska over the years she is going to remain the point of contact for new development in Nebraska, allowing me to focus on my home state of Minnesota. I am the point of contact for Minnesota, South Dakota and Colorado.
Last but not least, we should talk about our new Congress. Republicans won back the Senate in the November ’14 elections and now control both houses of Congress. The White House, Senate leaders and
Central Region Update Pat Michaelis
Over the past few months we have witnessed an increased level of “NIMBYism” (Not In My Back Yard viewpoints) in relation to the development of affordable housing utilizing tax credits. Perceived impacts on property values, schools, density and traffic congestion are cited as reasons for opposition to further development. However, comments such as ‘tenements’ and ‘those people’ are common in arguments against the development of affordable housing, perhaps in an unconscious way to dehumanize the topic. Counter to these arguments are numerous studies indicating that affordable housing development has negligible impact and perhaps a positive impact on property values, as well as schools. Economists from the Federal Reserve Bank have published two articles looking at those very things in recent years. Click on the article titles below for the links: The Impact of LIHTC Program on Local Schools Low-Income Housing Tax Credit Developments and Neighborhood Property Conditions It is important to remember the population that affordable housing is serving. Teachers, administrative assistants, the staff at the dry cleaner, the barista at the coffee shop, bank tellers, the vet tech, and many more people that we encounter everyday are in occupations where the average salaries require them to live in affordable housing. Our senior population is another group assisted by affordable housing. Most people are not even aware that many of the quality developments they see every day are affordable housing.
Northwest Region Update Jen Oscarson
The Northwest region had a wonderful 2014 with the first development closed in Colorado, a historic renovation in Leadville and our second deal closed in South Dakota, new construction of supportive housing in Sioux Falls and a promising 2015 with the anticipation of closing MHEG’s first development in Minnesota. In addition to Minnesota Housing annual allocation of tax credits, Governor Dayton signed a bill allocating an unprecedented amount of Housing Infrastructure Bonds ($100 million) to provide new and preserved affordable housing units in the state. The results, Minnesota has a record state investment in multifamily affordable housing with an estimated syndication of nearly $210 million. While not enough to house the 10,000 to 14,000 Minnesotans who sleep on the streets any given night, these dollars will provide nearly 4,000 units of affordable housing, of that amount 325 units will be directed to new and preserved long term homeless housing and 154 units will target new supportive housing units for veterans. The Governor estimates this investment in housing will also create 5,700 new jobs. This is an exciting year for Minnesota and a wonderful example of how the private and public sector work together to create substantial differences in people’s lives.
2014 was another very strong year for MHEG overall. The Central Region signed eleven properties into MHEG Fund 42, L.P. These were funded by many excellent repeat investors. Nine properties were in Kansas and two in Missouri. Based on MHDC awards we will have a very strong 2015 in Missouri. Kansas applications are due February 6th and we will be providing syndicator letters for many.
Happy 2015, I am looking forward to working with all of you to make a difference in each of the resident’s lives we impact!
I want to make a few comments about the changing LIHTC market. Clearly there is more money looking to invest than projects to fund. The reverse was the case a few short years ago. Developers and General Partners have choices like never before. We can assure you that MHEG will be very competitive in both terms and pricing. But more importantly we are dependable, show up on time, and do what we say. With the manpower and funding available, our experienced and professional staff stands ready to assist and get deals closed. We understand and are well informed about our markets. Local offices mean you know our decision makers and team. Thank you for your prior business; we look forward to working with you in the future.
The Southern Region is pleased to announce the completion of several developments. The first is in Arkansas, Rolling Hills Estate, a senior development located in Paragould. I had an opportunity to visit the site in December just as construction was wrapping up. The property is located in a lovely area with gentle, rolling hills and includes a walking trail among other amenities for the residents. We are enjoying our partnership with the Paragould Housing Authority and White River Regional Housing. They have already leased 22 of 32 units and currently have another 9 applications pending. Next up in Arkansas is an RD acquisition/rehab with PDC Companies. This development is located in Huntsville. We look forward to partnering with PDC on this and future developments.
The longer I am in this business it is clearer and clearer to me we are all in this together. This is a very complex business and we need knowledgeable and dependable partners. We appreciate being your trusted partner. As always, Lisa, Brooke, Chris or I stand ready to assist you. We thank you and appreciate your business. All the best in 2015. Left: Several people gathered to celebrate the grand opening and ribbon cutting of Bedford Place (KF X) on Oct. 30, 2014 in Great Bend, Kansas. Including Pat Michaelis (center). Bedford Place will offer 22 units for senior residents in the Great Bend community.
2
January 2015
South Region Update Andrea Frymire
In Oklahoma our first historic rehab was completed on December 31, 2014. The Dennis Huggins Memorial Apartments in downtown Durant has received a beautiful renovation courtesy of Big 5 Community Services and Strategic Realty. Brent Lacefield and Jim Petty (both with Strategic Realty) coordinated the renovation which had to meet some pretty tight deadlines. Dennis Huggins will provide 24 units of housing within walking distance of many downtown amenities. Dennis Huggins also provides the first ghost in
our portfolio with some site workers reporting seeing the face of a gentleman in a window. Special thanks to Brent and Jim for all of their hard work on this development. In Texas, The Reserves at Maplewood, a 36 multifamily unit development in Wichita Falls, is nearing completion. We look forward to receiving COs on this development soon. We are currently working on closing our second development in Texas, The Reserves at Brookside. This development is with longtime partner, Overland Property Group. We look forward to another successful partnership with OPG as we provide 48 units of family housing to the town of Borger. We are looking forward to a busy and productive 2015 in the Southern Region, especially with our new state housing tax credit in Oklahoma. Thank you to all of our partners throughout 2014 for another successful year!
3
Volume 8, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: 2723 Q Street, LLC (Stephen Center II)
January 2015
Closed Acquisitions
MHEG was honored to participate in the Grand Opening celebration of Stephen Center’s new Pettigrew Emergency Shelter and Permanent Supportive Housing earlier this month. The Pettigrew facility was carefully and thoughtfully planned out to ensure the continued success of the Stephen Center’s mission. This brand new facility offers so much for those in need in the Omaha community.
LIHTC DevelopmentS
fund
Graham Park Estates, LP
MHEG 43 Seward, NE
11
October
Dana Point Development Corp.
Meadow Vista, LP
MHEG 42 North Platte, NE
12
October
Dana Point Development Corp.
The ground level will provide emergency shelter for men, women and families. This level will also have a large cafeteria and kitchen, free pantry, children’s playroom, laundry facility, storage rooms and offices. The street level will house more administrative offices, as well as a wellness center for caseworkers, meeting rooms, a completely kids’ room and a computer center. The second and third floors will offer 62 permanent supportive housing units (comprised of studio, one, two and three-bedroom units), tenant lounges and 2723 Q Street, LLC more laundry facilities.
Trail Ridge Partners, LLC
MHEG 42 Great Bend, KS
48
October
Overland Property Group
PPR, LP
MHEG 42 McPherson, KS
45
October
Prairie Fire Development
NFW, LLC
MHEG 42 Omaha, NE
24
November J. Development Company
Prairie Heights, LLC
MHEG 42 Orange City, IA
14
November Excel Development Group
The building and units have been decorated with wall quilts provided by the Cottonwood Quilt Guild. Coincidentally, one of MHEG’s staff members, Shellie Vandeman, belongs to the Cottonwood guild and now has her work proudly displayed in one of the units.
2
units DATE
DEVELOPER
Managing Member
Stephen Center, Inc.
French Quarter II, LLC
MHEG 40 Wichita, KS
48
November Mennonite Housing & Rehab
Developer
J Development Company
Wedgewood Apartments, LP
MHEG 42 Wellington, KS
40
November Housing Investment Partners II
Property Manager
Stephen Center, Inc.
Rushpointe Apts. LLC
MHEG 42 Wichita, KS
16
November Vintage Construction
Heritage Gardens, LP
MHEG 42 Cozad, Gothenburg, Lexington, NE
32
December Dana Point Development Corp.
Meadow Brooks, LLC
MHEG 42 Larned, KS
12
December Mesner Development Co
Cypress Pointe II, LLC
MHEG 42 Omaha, NE
80
December Excel Development Group
Ridgeway Villas, LP
MHEG 40 Raymore, MO
56
December North Star Housing, LLC
A & P II, LLC
MHEG 43 Lincoln, NE
71
December Excel Development Group
Apple Ridge Seniors II, LLC
MHEG 42 Pauls Valley, OK
15
December Express Dev./Desert Ridge Investments
Emerson Estates, LLC
MHEG 42 Hastings, NE
24
December Mesner Development Co
Groundbreakings, Ribbon Cuttings, Dedications and Events....
1
city / State
3
Total Units Closed from October-December
548
Total Units Closed in 2014
820
Historic Credit Development city / State 4318 Fort Street HTC LLC
Omaha, NE
units DATE 24
December
Staff Announcements Amy Leonard, Asset Manager Amy was recently hired as an Asset Manager for our Des Moines office. Her duties will include overseeing the Iowa development portfolio with financial reviews, site visits and problem resolution/workouts as needed. In addition, Amy will also provide monthly financial projects for her portfolio and assist property managers as needed. Amy comes to MHEG with over 18 years’ experience in real estate, property management and accounting. Most recently she served as a Staff Accountant for Neighborhood Finance Corporation. Prior to her position at NFC, Amy worked as a Lease Administrator for Hubbell Realty Company. She started with MHEG in December 2014.
4
5
6
In addition to recent staff additions, we’re happy to announce the following promotions.
Sammy Ehtisham, Assistant Vice President of Acquisitions -
As Assistant VPA, Sammy will work closely with the VPA on all aspects of underwriting, acquisition and closing of developments acquired by MHEG. He will also work closely with all members of the Acquisitions Team and provide direction and advice regarding project-specific questions and issues. Sammy will also continue his role as Acquisition Manager for the Southern region.
Laurie Stephenson, Deputy Director of Compliance - Laurie will continue with her current compliance duties of managing and reviewing the lease-up of properties and maintaining of property files by the Compliance staff, as well as training property managers. Her title was changed to better reflect her responsibilites, as well as her supervisory duties, overseeing the Compliance Department. 1) Beacon Apartments (MHEG 42) located in Sioux Falls, South Dakota, held a groundbreaking event on October 29, 2014. Jen Oscarson, Cindy Koster, Tom Stratman, Laurie Stephenson and Deb Swanson from MHEG were able to attend the event. The apartments will provide 14 affordable housing rental units for persons with special needs. 2) Bedford Place (KF X) celebrated with a ribbon cutting event on October 30, 2014 in Great Bend, Kansas. This newly constructed community of duplexes will offer 22 affordable housing rental units for seniors. Dennis Mesa (KHRC), Kathy Mesner (Mesner Development Co.), Christine Reimler (KHRC), Vicky Dayton (HOI), Barry McMurphy (KHRC), Pat Michaelis (MHEG) and Tom Thull (FHLBank Topeka) are pictured above. 3) Prairie Fire Development held a groundbreaking for Prairie Pointe Reserves (MHEG 42) on November 10, 2014 in McPherson, Kansas. Pat Michaelis (MHEG) was able to participate in the event (fourth from the left). PPR will provide 45 rental homes for families in the McPherson community. 4) Pat Michaelis (third from left) was able to attend Rushpointe Apartments (MHEG 42) groundbreaking on December 2, 2014, in Wichita, Kansas. This new development will provide 16 new rental units for persons with special needs. 5 & 6) Del Bomberger, Executive Director of Stephen Center speaks to the very large crowd in attendance for the grand opening celebration of the new Pettigrew Emergency Shelter and Permanent Supportive Housing facility. John Wiechmann (MHEG) also had the opportunity to address the crowd on the importance of housing and great projects like this.
4
Jordan Abboud, Deputy Director of Special Assets - As Deputy Director of Special Assets, Jordan be involved with
properties that are performing below expectations. She will work closely with other asset management team members to develop strategies and action plans in order to improve operations of watch list properties. Jordan has also taken on supervisory duties, overseeing the Financial Analysts in the Asset Management department.
Ryan Harris, Deputy Director of Asset Stabilization - As Deputy Director of Asset Stabilization, Ryan will be involved
with properties that have recently closed, from construction through stabilization. He will also continue to be involved with the disposition process for those projects where the initial compliance period has expired.
5
Volume 8, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: 2723 Q Street, LLC (Stephen Center II)
January 2015
Closed Acquisitions
MHEG was honored to participate in the Grand Opening celebration of Stephen Center’s new Pettigrew Emergency Shelter and Permanent Supportive Housing earlier this month. The Pettigrew facility was carefully and thoughtfully planned out to ensure the continued success of the Stephen Center’s mission. This brand new facility offers so much for those in need in the Omaha community.
LIHTC DevelopmentS
fund
Graham Park Estates, LP
MHEG 43 Seward, NE
11
October
Dana Point Development Corp.
Meadow Vista, LP
MHEG 42 North Platte, NE
12
October
Dana Point Development Corp.
The ground level will provide emergency shelter for men, women and families. This level will also have a large cafeteria and kitchen, free pantry, children’s playroom, laundry facility, storage rooms and offices. The street level will house more administrative offices, as well as a wellness center for caseworkers, meeting rooms, a completely kids’ room and a computer center. The second and third floors will offer 62 permanent supportive housing units (comprised of studio, one, two and three-bedroom units), tenant lounges and 2723 Q Street, LLC more laundry facilities.
Trail Ridge Partners, LLC
MHEG 42 Great Bend, KS
48
October
Overland Property Group
PPR, LP
MHEG 42 McPherson, KS
45
October
Prairie Fire Development
NFW, LLC
MHEG 42 Omaha, NE
24
November J. Development Company
Prairie Heights, LLC
MHEG 42 Orange City, IA
14
November Excel Development Group
The building and units have been decorated with wall quilts provided by the Cottonwood Quilt Guild. Coincidentally, one of MHEG’s staff members, Shellie Vandeman, belongs to the Cottonwood guild and now has her work proudly displayed in one of the units.
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units DATE
DEVELOPER
Managing Member
Stephen Center, Inc.
French Quarter II, LLC
MHEG 40 Wichita, KS
48
November Mennonite Housing & Rehab
Developer
J Development Company
Wedgewood Apartments, LP
MHEG 42 Wellington, KS
40
November Housing Investment Partners II
Property Manager
Stephen Center, Inc.
Rushpointe Apts. LLC
MHEG 42 Wichita, KS
16
November Vintage Construction
Heritage Gardens, LP
MHEG 42 Cozad, Gothenburg, Lexington, NE
32
December Dana Point Development Corp.
Meadow Brooks, LLC
MHEG 42 Larned, KS
12
December Mesner Development Co
Cypress Pointe II, LLC
MHEG 42 Omaha, NE
80
December Excel Development Group
Ridgeway Villas, LP
MHEG 40 Raymore, MO
56
December North Star Housing, LLC
A & P II, LLC
MHEG 43 Lincoln, NE
71
December Excel Development Group
Apple Ridge Seniors II, LLC
MHEG 42 Pauls Valley, OK
15
December Express Dev./Desert Ridge Investments
Emerson Estates, LLC
MHEG 42 Hastings, NE
24
December Mesner Development Co
Groundbreakings, Ribbon Cuttings, Dedications and Events....
1
city / State
3
Total Units Closed from October-December
548
Total Units Closed in 2014
820
Historic Credit Development city / State 4318 Fort Street HTC LLC
Omaha, NE
units DATE 24
December
Staff Announcements Amy Leonard, Asset Manager Amy was recently hired as an Asset Manager for our Des Moines office. Her duties will include overseeing the Iowa development portfolio with financial reviews, site visits and problem resolution/workouts as needed. In addition, Amy will also provide monthly financial projects for her portfolio and assist property managers as needed. Amy comes to MHEG with over 18 years’ experience in real estate, property management and accounting. Most recently she served as a Staff Accountant for Neighborhood Finance Corporation. Prior to her position at NFC, Amy worked as a Lease Administrator for Hubbell Realty Company. She started with MHEG in December 2014.
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In addition to recent staff additions, we’re happy to announce the following promotions.
Sammy Ehtisham, Assistant Vice President of Acquisitions -
As Assistant VPA, Sammy will work closely with the VPA on all aspects of underwriting, acquisition and closing of developments acquired by MHEG. He will also work closely with all members of the Acquisitions Team and provide direction and advice regarding project-specific questions and issues. Sammy will also continue his role as Acquisition Manager for the Southern region.
Laurie Stephenson, Deputy Director of Compliance - Laurie will continue with her current compliance duties of managing and reviewing the lease-up of properties and maintaining of property files by the Compliance staff, as well as training property managers. Her title was changed to better reflect her responsibilites, as well as her supervisory duties, overseeing the Compliance Department. 1) Beacon Apartments (MHEG 42) located in Sioux Falls, South Dakota, held a groundbreaking event on October 29, 2014. Jen Oscarson, Cindy Koster, Tom Stratman, Laurie Stephenson and Deb Swanson from MHEG were able to attend the event. The apartments will provide 14 affordable housing rental units for persons with special needs. 2) Bedford Place (KF X) celebrated with a ribbon cutting event on October 30, 2014 in Great Bend, Kansas. This newly constructed community of duplexes will offer 22 affordable housing rental units for seniors. Dennis Mesa (KHRC), Kathy Mesner (Mesner Development Co.), Christine Reimler (KHRC), Vicky Dayton (HOI), Barry McMurphy (KHRC), Pat Michaelis (MHEG) and Tom Thull (FHLBank Topeka) are pictured above. 3) Prairie Fire Development held a groundbreaking for Prairie Pointe Reserves (MHEG 42) on November 10, 2014 in McPherson, Kansas. Pat Michaelis (MHEG) was able to participate in the event (fourth from the left). PPR will provide 45 rental homes for families in the McPherson community. 4) Pat Michaelis (third from left) was able to attend Rushpointe Apartments (MHEG 42) groundbreaking on December 2, 2014, in Wichita, Kansas. This new development will provide 16 new rental units for persons with special needs. 5 & 6) Del Bomberger, Executive Director of Stephen Center speaks to the very large crowd in attendance for the grand opening celebration of the new Pettigrew Emergency Shelter and Permanent Supportive Housing facility. John Wiechmann (MHEG) also had the opportunity to address the crowd on the importance of housing and great projects like this.
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Jordan Abboud, Deputy Director of Special Assets - As Deputy Director of Special Assets, Jordan be involved with
properties that are performing below expectations. She will work closely with other asset management team members to develop strategies and action plans in order to improve operations of watch list properties. Jordan has also taken on supervisory duties, overseeing the Financial Analysts in the Asset Management department.
Ryan Harris, Deputy Director of Asset Stabilization - As Deputy Director of Asset Stabilization, Ryan will be involved
with properties that have recently closed, from construction through stabilization. He will also continue to be involved with the disposition process for those projects where the initial compliance period has expired.
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MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 8, Issue 1
January 2015
Oklahoma Annual Appreciation Luncheon
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
Annual Meeting
6, 7
Upcoming Events
8
Midwest Housing’s annual luncheon in Oklahoma was a success again this year. We hosted over eighty guests on the 50th floor of the Devon Tower on November 19th, 2014, following OHFA’s Board Meeting. This annual event is an opportunity to say thank you to the affordable housing community in Oklahoma and one of the many ways that we serve our partners.
515 N. 162nd Ave., Ste. 202, Omaha, NE 68118
Monthly LIHTC Rates October 2014 70% PV
30%PV
AFR
7.54%
3.23%
2.89%
November 2014 70% PV
30%PV
AFR
7.55%
3.24%
2.91%
December 2014
Upcoming Events February
ADFA Board Meeting: Mar. 19th Little Rock, AR - ADFA Office
IFA Board Meeting: Feb. 4th Des Moines, IA - IFA Office
OHFA Board of Trustees Meeting: Mar. 25th Oklahoma City, OK - OHFA’s Conference Room
KHRC Board Meeting: May 6th Topeka, KS - KDFA Board Room
KHRC Board Meeting: Feb. 5th Topeka, KS - KDFA Board Room
CHFA Board Meeting: Mar. 26th Denver, CO - CHFA Board Room
TDHCA Board Meeting: May 7th Austin, TX - Capitol Extension Auditorium
ADFA Board Meeting: Feb. 19th Little Rock, AR - ADFA Office
April
OHFA Board of Trustees Meeting: May 20th Oklahoma City, OK - OHFA’s Conference Room OHFA Round 2 Announcements
NIFA Board Meeting: Feb. 20th Lincoln, NE - NIFA Board Room CHFA Board Meeting: Feb. 26th Denver, CO - CHFA Board Room
March
ADFA Applications Due: Mar. 2nd KHRC Board Meeting: Mar. 5th Topeka, KS - KDFA Board Room IFA Board Meeting: Mar. 11th Des Moines, IA - IFA Office
IFA Board Meeting: Apr. 1st Des Moines, IA - IFA Office KHRC Board Meeting: Apr. 2nd Topeka, KS - KDFA Board Room ADFA Board Meeting: Apr. 16th Little Rock, AR - ADFA Office
30%PV
AFR
7.51%
3.22%
2.74%
January 2015
May
Housing Innovation Marketplace: Feb. 3rd-4th Omaha, NE - Omaha Marriott Regency Hotel
TDHCA Board Meeting: Feb. 19th Austin, TX - Capitol Extension Auditorium
70% PV
IFA Board Meeting: May 6th Des Moines, IA - IFA Office
70% PV
30%PV
AFR
7.51%
3.22%
2.67%
February 2015 70% PV
30%PV
AFR
7.47%
3.20%
2.41%
Portfolio Update Developments Units
CHFA Board Meeting: May 28th Denver, CO - CHFA Board Room
Counties Represented Cities Represented
Save the Date!
401 11,327 148 183
Vacancy Percentage
6.32%*
NASLEF 2015
Debt Coverage Ratio
1.51*
NIFA Board Meeting: Apr. 17th Lincoln, NE - NIFA Board Room
NASLEF’s 22nd Annual Conference will be held September 16th-18th, 2015, in Kansas City, Missouri!
Information current as of 1/30/15 *Percentage compiled from 9/30/14 figures using stabilized developments only, vacancy percentage is using economic vacancy.
TDHCA Board Meeting: Dec. 18th Austin, TX - Capitol Extension Auditorium
Check www.naslef.org for additional information about the conference.
TDHCA Board Meeting: Apr. 16th Austin, TX - Capitol Extension Auditorium
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.
CHFA Board Meeting: Apr. 23rd Denver, CO - CHFA Board Room
TDHCA Board Meeting: Mar. 12th Austin, TX - Capitol Extension Auditorium
For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6
Left: MHEG staff Jordan Abboud, Sammy Ehtisham, Andrea Frymire, Geoff Grafford and Lisa Bryan attend the event. Center: John Wiechmann (MHEG) says a few words during the luncheon. Right: Attendees of the luncheon included (sitting left to right) Andrea Frymire (MHEG), Carl Hudgins (Commerce Bank), Fred Fellers (Commerce Bank), David Brooks (MidFirst), Charles Lee (MidFirst), David Attaway (First Bank & Trust). And standing Jeff Hairston (FHLBank Topeka) and Tom Behrens (American Fidelity).
MHEG Raises Over $175M in 2014 We are excited to announce that MHEG was able to raise over $175 million in equity capital in 2014. The equity total is comprised from Kansas Fund X, L.P., MHEG Fund 40, LP, MHEG Fund 42, LP and MHEG Community Fund 43, LP. The equity raised in these funds will assist in the development of multiple properties and help create almost a thousand units of affordable housing. Investors closed in 2014 included: American Fidelity Assurance Company, Andover State Bank, BancFirst, Bank of Hays, Bank of the West, Bank SNB, Capital City Bank, Capitol Federal Savings Bank, Colorado Federal Savings Bank, Commerce Bank, Elkhorn Valley Bank & Trust, Farm & Home Insurance Agency, Farmers and Merchants Investment, Inc., First National Bank of Omaha, Garmin International, INTRUST Bank, Iowa State Bank, Kaw Valley Bank, Landmark National Bank, MetLife, Mutual of Omaha Bank, North Central Bancorp, Northwestern Mutual Life Insurance Company, Pinnacle Bank, The Citizens State Bank, UMB Bank, Wells Fargo and West Bank.
We Moved!
Website Update
MHEG officially relocated to its new Omaha headquarters on December 15th. Please make sure to update your records with our new address:
Please note we are no longer listing the names of our investors or providing links to their websites on the Midwest Housing website. Some of our investors were receiving solicitations as a result of being listed on our website. We apologize for any unwanted communication due to this.
515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 Our open house is set for the first week in February, look for pictures of our new space in the spring/summer issue of MHEG in a Minute.
We decided to be proactive and remove your information from our site in an effort to stop this. Thank you for your understanding in our removal.
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