MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 10, Issue 2
2017 Ad Astra Winners
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Property Spotlight
4
Recent Events
4
Closed Acquisitions
5
Upcoming Events
6
Monthly LIHTC Rates 515 N. 162nd Ave., Ste. 202, Omaha, NE 68118
July 2017 30%PV
AFR
3.22%
2.60%
30%PV
AFR
3.22%
2.58%
September 2017 30%PV
AFR
3.22%
2.60%
October 2017
November
IFA Board Meeting: Nov. 1st Des Moines, IA - IFA Office
KHRC Board Meeting: Dec. 7th Topeka, KS - KDFA Board Room
KHRC Board Meeting: Nov. 2nd Topeka, KS - KDFA Board Room
IFA Board Meeting: Dec. 6th Des Moines, IA - IFA Office
TDHCA Board Meeting: Nov. 9th Austin, TX - Capitol Extension Auditorium
MHDC Regular Commission Meeting: Dec. 19th Jefferson City, MO - Double Tree Hotel
OHFA Board Meeting: Nov. 15th Oklahoma City, OK - OHFA Office
NIFA Board Meeting: Dec. 15th Lincoln, NE - NIFA Board Room
Annual Oklahoma Appreciation Luncheon: Nov. 15th Oklahoma City, OK - Top Golf
ADFA Board Meeting: Dec. 21st Little Rock, AR - ADFA Office
ADFA Board Meeting: Nov. 16th Little Rock, AR - ADFA Office
CHFA Board Meeting: Dec. 14th Denver, CO - CHFA Board Room
CHFA Board Meeting: Nov. 16th Denver, CO - CHFA Board Room
30%PV
AFR
3.21%
2.50%
November 2017
December
30%PV
AFR
3.23%
2.60%
Please note we will no longer show the 70% PVC rate as it was permanently fixed at 9% in December 2015. For more information view the Protecting Americans from Tax Hikes Acot of 2015.
Portfolio Update Developments Units
TDHCA Board Meeting: Dec. 14th Austin, TX - Capitol Extension Auditorium
499 15,364
Counties Represented
187
Cities Represented
228
Vacancy Percentage
5.96%*
Debt Coverage Ratio
1.60*
Information current as of 10/31/17 *Data compiled from 10/15/17 figures using stabilized developments only, vacancy percentage is using economic vacancy.
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. For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6
This past August the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Wichita, Kansas and presented their Ad Astra Awards. The awards honor individuals and organizations who demonstrate excellence in developing affordable housing, shaping housing policy and creating innovative housing solutions to meet the daily needs of low and moderate-income Kansans. MHEG was excited to learn that three of our partners received awards this year recognizing them for their outstanding service to the affordable housing industry in Kansas. Innovation in Housing Award: Rebecca Buford, Executive Director of Tenants to Home Owners
August 2017
Upcoming Events
November
Above: Byron Adrian, President of Mennonite Housing Rehabilitation Services, some of his staff and Pat Michaelis and Brooke Smith from MHEG during the Ad Astra Awards presentation. Below: Brooke Smith and Pat Michaelis, both of MHEG, celebrate with Rebecca Buford as she receives her Innovation in Housing Award.
Preservation Award: Commerce Gardens Apartments (MHEG Fund 42) developed by Investment Resources Corporation and located in Hutchinson, Kansas Innovation in Housing Award: Bluffview Place (MHEG Fund 44) developed by Mennonite Housing Rehabilitation Services and located in Wichita, Kansas
Chris Imming to Retire It is with mixed feelings that we announce the retirement of Chris Imming. His last day will be December 21, 2017. Chris has been an integral part of our company for the last 7½ years working as an Acquisitions Manager in the Topeka office. His hard work, contributions to the Central Region, and dedication will always be valued. His knowledge, guidance and humor will be greatly missed. Prior to MHEG, Chris worked for the FHLBank Topeka as the Director of Housing & Community Development. We would like to thank him for the almost 30 years of combined service that he has dedicated to housing and development. On behalf of every one at MHEG, I would like to wish him the best of luck in retirement. We invite you to join us for a retirement celebration, which will be held at the Topeka office on Tuesday, December 12, 2017, at 2pm. Please RSVP to Lisa Bryan if you will be attending.
2016 Annual Report Copies
Des Moines Office Moving!
MHEG’s 2016 Annual Report “Making It Happen” was released in June. To view the report online go to our News & Events page on our website.
Our Des Moines office is moving locations.
Paper copies are still available, email Keely McAleer to request one.
The phone number is remaining the same: #515-280-6000
Effective December 1st, the new address will be:
699 Walnut Street, Suite 471 Des Moines, IA 50309
Please note the address change in your files.
1
Volume 10, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Greetings Friends! Fall and cooler weather has arrived! It’s hard to believe there are less than two months left in 2017! We hope you had an enjoyable summer. MHEG kick-started the season with our Annual Meeting & Golf Outing at Quarry Oaks. It was a great day to be outside with so many of our partners. We also hosted appreciation events in Missouri, Kansas, Iowa and South Dakota during each State’s housing conference. Attending these events is one of the best parts of my job (along with visiting developments and meeting residents). It is always a pleasure to spend quality time with our partners in a relaxed setting. Our success is your success, and we look forward to these yearly dinners to show our gratitude! As Thanksgiving approaches, we have a lot to be thankful for at MHEG. We are preparing to celebrate our 500th acquisition in the next week or so; an accomplishment you, our partners, made possible. We are also nearing completion on our 2017 fundraising. I am happy to report that by year end we will have raised over $210 million for affordable housing in 2017. A huge “thank you” to our investor partners and their commitment to providing quality, safe affordable housing! Another thing we are thankful for is Congress’ recognition of the importance of the Low Income Housing Tax Credit (“LIHTC”). Yeserday, on November 16th, the U.S. House of Representatives passed its comprehensive tax reform bill by a vote of 227-205. We are very pleased that this bill preserves the LIHTC. That is a great win for affordable housing and the residents we serve. However, the bill eliminates Private Activity Bonds (“PABs”). This is a huge loss for our industry. PABs, combined with the 4% LIHTC, were responsible
for almost 50% of all affordable housing constructed or preserved in 2016. But all is not lost. On the Senate side, the Finance Committee introduced and adopted its tax reform bill on November 16th as well. The plan is that the entire Senate will then work on the bill the week after Thanksgiving. Affordable housing development fairs better under the Senate bill – it preserves both the LIHTC and PABs. Both bills drop the corporate tax rate to 20%, which will further erode LIHTC pricing. Both bills also modify depreciation and interest deduction rules, though the exact impact of those provisions is not yet certain. In any event, this is a critical time for affordable housing. This is the time to talk to our Congressional delegations. PLEASE CALL 202-224-3121 (US CAPITOL SWITCHBOARD) AND REACH OUT TO YOUR ELECTED OFFICIALS TODAY. COMMUNICATE THE FOLLOWING: 1. THANK YOU FOR PRESERVING THE LIHTC. 2. HOUSE – RESTORE PABs; SENATE – THANK YOU FOR PRESERVING PABs 3. PLEASE ADOPT THE PROVISIONS OF CANTWELL-HATCH (SENATE) AND TIBERRI-NEAL LIHTC BILLS. In closing, I want to recognize and thank one of our long time service leaders, Richard (Dick) Hoiekvam, for his 13 years of service on MHEG’s Board of Directors. He provided invaluable leadership, guidance and advice to MHEG over the last decade. The commitment and time Dick and all of our Board members and O&I Committee members make to MHEG and affordable housing is something we truly appreciate. Happy Holidays!
Central Region Update Pat Michaelis
Chris Imming has announced his retirement effective the end of 2017. Chris has been a valued partner and friend of developers and MHEG associates for the past 7 years. He will be missed. We are planning a retirement reception 2:00 to 4:00 pm, Tuesday, December 12th in the Topeka MHEG office. Please stop by and help us wish him farewell. Brad Reiff joined the MHEG staff on Monday, November 6th. Brad is an experienced affordable housing professional. He is coming from Rural Development with prior experience at KHRC and the Topeka Housing Department. Brad and his family live in Topeka. Please join us is welcoming Brad to the MHEG team. KHRC is about to release the Kansas QAP. Fred Bentley, Director or Rental Housing, is working to simplify the application process until an initial review and determination of a LIHTC award is likely. I encourage you to study the QAP and make yourself aware of the initial application requirements. Historically, Missouri has had a robust State LIHTC credit providing substantial affordable housing. But things may be changing. In the past, the QAP is issued with applications due in September and awards made at the first MHDC meeting in December. To date the QAP has not been approved, and applications have not been submitted. By the time you read this, the QAP may be approved, and hopefully, without a haircut to the state program. Time will tell. As you know, Federal Tax Reform is at the forefront of the news. From all indications, the LIHTC credit program will survive and be a part of the proposed revisions. But tax rates may be lowered which will reduce the number of units provided by the program. In all of our states, and at the Federal level, it is very important we stay informed and in contact with our allocating agencies, and our state and federal elected officials. I have always believed our biggest risk is the stroke of the pen. That is certainly true today.
Pat Michaelis (MHEG) speaks with guests Aubrey Coufal (Topeka Housing Authority), Trey George (Topeka Housing Authority), Andrew Brown (Mesner Development Company) and Fred Bentley (KHRC) at the annual Kansas appreciation dinner.
2
November 2017
To end on a positive note, I continually see our partners and the MHEG team being successful in providing qualify affordable housing to the people we serve. We are all resourceful, flexible and creative. Good job. Thank you for your trust and friendship. Please let us know how we can be of service.
Hello again everyone, as we move into fall with gorgeous weather I wanted to recap some recent events.
anxiously awaiting the announcement of the LIHTC recipients in Minnesota.
The HousingIowa Conference took place in early September this year in Cedar Rapids. The conference saw great turn out with record numbers. MHEG once again sponsored our annual dinner for our industry partners and friends at the 360 Restaurant in the Doubletree Hotel. It was an evening filled with great conversation and an excellent meal!
As we look forward into next year, we should be mindful that tax reform is still very much an open discussion and we should all be vigilant in educating our elected officials on the merits of the program and the need for quality affordable housing in our communities.
LIHTC applications in Iowa are due a little earlier this year on November 16th. If we can be of assistance, please give us a call. In addition, we are
Northwest Region Update Cindy Koster
MHEG closed equity on two projects in Nebraska during the third quarter of 2017. Jack Estates, LP is a 15 unit single-family project located in Waverly, NE and construction is well underway. Dana Point Development Corporation, owned and operated by Matt Thomas, has been a partner of MHEG’s since 2008. Holy Name Housing Corporation and Holy Name Properties, Inc., has collaborated with MHEG since 1996. Their most recent award was Adam Park Senior Cottages I, LP, which is a mixed income project with 28 elderly units, located in Adam Park Development in the northeast area of Omaha. This project was particularly unique in the fact that Mike Gawley and his staff literally had to move a forest. The newly revitalized area of Adam Park will make a splendid location for this new project and wonderful home for persons meeting the 55+ age requirement. We celebrated the Adam Park Senior Ground Breaking with the rest of the community and look forward to it coming on line. We attended a ribbon cutting in Schuyler, NE for Kracl Meadows, LLC. The Mesner Development Co. teamed up with the Schuyler Community Development, Inc. to build seven new elderly duplexes for a total of 14 units. They were also responsible for building new single-family workforce housing in the same development. We have partnered on nearly 50 projects with the Mesner Development Co. over the past couple of decades and consider them a great partner as well. On August 21, 2017, we all stepped outside our office to view the “Great Eclipse”. According to different reports, Nebraska had over 500,000 tourists from all over the world in our state to view the eclipse. One of the closest and best sightings occurred in Beatrice and we understand the clouds cleared in time for a full view! Beatrice is significant because we plan to close a project in this lovely community during November with another great and long-time partner, Excel Development Group. More to come next issue. One additional note, we are happy to have closed our first of many projects which are using the new Nebraska Affordable Housing Tax Credits this quarter. It was a very welcome source of funding and we appreciate all our advocates for making this available for the projects so we can continue our mission of helping to provide quality affordable housing. Thank you to all our investors, partners and others who help continue to make MHEG a company I am proud to work.
South Region Update Andrea Frymire
Congratulations to all of the award winners in Arkansas, Texas and Round 1 Oklahoma! We look forward to working with you to expand affordable housing opportunities in our region. As a benefit to our partners, we continue to monitor and provide comments on QAP drafts in our region.
speed on the need for housing in Oklahoma as well as the importance of using the state affordable housing credit to create additional housing for all Oklahomans.
Although the Oklahoma Affordable Housing Act survived the regular session with the Oklahoma Legislature, it was on the chopping block again during special session. We continue to monitor state legislation affecting the state affordable housing credit but also legislation that would place a sales tax on services and increase operating costs across the board on developments in Oklahoma. As we continue to have turn over Dennis Shockley (OHFA), Andrea Frymire (MHEG), Steve in the state legislature, Shepelwich (Federal Reserve Bank of KC), Deborah it is imperative we bring Jenkins (OHFA) and Gloria Reynolds (FDIC) at the OCAH new Legislators up to
This summer, Midwest Housing once again participated in the Regional Housing Forums presented across the state by the Oklahoma Coalition for Affordable Housing. We enjoy meeting with city officials and helping assist municipalities in bringing more housing to their community. I’d like to take a moment and recognize Deborah Jenkins, new Executive Director at the Oklahoma Housing Finance Agency and thank outgoing Executive Director Dennis Shockley. Running a state housing agency is no small feat and we enjoy our partnership and collaboration across all of our states. We appreciate all of our partners and thank you for the opportunity to serve your needs in 2017. We look forward to working with you in 2018. Please do not hesitate to contact me if I may be of assistance.
annual meeting.
3
Volume 10, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann
Scott Fitzpatrick
Greetings Friends! Fall and cooler weather has arrived! It’s hard to believe there are less than two months left in 2017! We hope you had an enjoyable summer. MHEG kick-started the season with our Annual Meeting & Golf Outing at Quarry Oaks. It was a great day to be outside with so many of our partners. We also hosted appreciation events in Missouri, Kansas, Iowa and South Dakota during each State’s housing conference. Attending these events is one of the best parts of my job (along with visiting developments and meeting residents). It is always a pleasure to spend quality time with our partners in a relaxed setting. Our success is your success, and we look forward to these yearly dinners to show our gratitude! As Thanksgiving approaches, we have a lot to be thankful for at MHEG. We are preparing to celebrate our 500th acquisition in the next week or so; an accomplishment you, our partners, made possible. We are also nearing completion on our 2017 fundraising. I am happy to report that by year end we will have raised over $210 million for affordable housing in 2017. A huge “thank you” to our investor partners and their commitment to providing quality, safe affordable housing! Another thing we are thankful for is Congress’ recognition of the importance of the Low Income Housing Tax Credit (“LIHTC”). Yeserday, on November 16th, the U.S. House of Representatives passed its comprehensive tax reform bill by a vote of 227-205. We are very pleased that this bill preserves the LIHTC. That is a great win for affordable housing and the residents we serve. However, the bill eliminates Private Activity Bonds (“PABs”). This is a huge loss for our industry. PABs, combined with the 4% LIHTC, were responsible
for almost 50% of all affordable housing constructed or preserved in 2016. But all is not lost. On the Senate side, the Finance Committee introduced and adopted its tax reform bill on November 16th as well. The plan is that the entire Senate will then work on the bill the week after Thanksgiving. Affordable housing development fairs better under the Senate bill – it preserves both the LIHTC and PABs. Both bills drop the corporate tax rate to 20%, which will further erode LIHTC pricing. Both bills also modify depreciation and interest deduction rules, though the exact impact of those provisions is not yet certain. In any event, this is a critical time for affordable housing. This is the time to talk to our Congressional delegations. PLEASE CALL 202-224-3121 (US CAPITOL SWITCHBOARD) AND REACH OUT TO YOUR ELECTED OFFICIALS TODAY. COMMUNICATE THE FOLLOWING: 1. THANK YOU FOR PRESERVING THE LIHTC. 2. HOUSE – RESTORE PABs; SENATE – THANK YOU FOR PRESERVING PABs 3. PLEASE ADOPT THE PROVISIONS OF CANTWELL-HATCH (SENATE) AND TIBERRI-NEAL LIHTC BILLS. In closing, I want to recognize and thank one of our long time service leaders, Richard (Dick) Hoiekvam, for his 13 years of service on MHEG’s Board of Directors. He provided invaluable leadership, guidance and advice to MHEG over the last decade. The commitment and time Dick and all of our Board members and O&I Committee members make to MHEG and affordable housing is something we truly appreciate. Happy Holidays!
Central Region Update Pat Michaelis
Chris Imming has announced his retirement effective the end of 2017. Chris has been a valued partner and friend of developers and MHEG associates for the past 7 years. He will be missed. We are planning a retirement reception 2:00 to 4:00 pm, Tuesday, December 12th in the Topeka MHEG office. Please stop by and help us wish him farewell. Brad Reiff joined the MHEG staff on Monday, November 6th. Brad is an experienced affordable housing professional. He is coming from Rural Development with prior experience at KHRC and the Topeka Housing Department. Brad and his family live in Topeka. Please join us is welcoming Brad to the MHEG team. KHRC is about to release the Kansas QAP. Fred Bentley, Director or Rental Housing, is working to simplify the application process until an initial review and determination of a LIHTC award is likely. I encourage you to study the QAP and make yourself aware of the initial application requirements. Historically, Missouri has had a robust State LIHTC credit providing substantial affordable housing. But things may be changing. In the past, the QAP is issued with applications due in September and awards made at the first MHDC meeting in December. To date the QAP has not been approved, and applications have not been submitted. By the time you read this, the QAP may be approved, and hopefully, without a haircut to the state program. Time will tell. As you know, Federal Tax Reform is at the forefront of the news. From all indications, the LIHTC credit program will survive and be a part of the proposed revisions. But tax rates may be lowered which will reduce the number of units provided by the program. In all of our states, and at the Federal level, it is very important we stay informed and in contact with our allocating agencies, and our state and federal elected officials. I have always believed our biggest risk is the stroke of the pen. That is certainly true today.
Pat Michaelis (MHEG) speaks with guests Aubrey Coufal (Topeka Housing Authority), Trey George (Topeka Housing Authority), Andrew Brown (Mesner Development Company) and Fred Bentley (KHRC) at the annual Kansas appreciation dinner.
2
November 2017
To end on a positive note, I continually see our partners and the MHEG team being successful in providing qualify affordable housing to the people we serve. We are all resourceful, flexible and creative. Good job. Thank you for your trust and friendship. Please let us know how we can be of service.
Hello again everyone, as we move into fall with gorgeous weather I wanted to recap some recent events.
anxiously awaiting the announcement of the LIHTC recipients in Minnesota.
The HousingIowa Conference took place in early September this year in Cedar Rapids. The conference saw great turn out with record numbers. MHEG once again sponsored our annual dinner for our industry partners and friends at the 360 Restaurant in the Doubletree Hotel. It was an evening filled with great conversation and an excellent meal!
As we look forward into next year, we should be mindful that tax reform is still very much an open discussion and we should all be vigilant in educating our elected officials on the merits of the program and the need for quality affordable housing in our communities.
LIHTC applications in Iowa are due a little earlier this year on November 16th. If we can be of assistance, please give us a call. In addition, we are
Northwest Region Update Cindy Koster
MHEG closed equity on two projects in Nebraska during the third quarter of 2017. Jack Estates, LP is a 15 unit single-family project located in Waverly, NE and construction is well underway. Dana Point Development Corporation, owned and operated by Matt Thomas, has been a partner of MHEG’s since 2008. Holy Name Housing Corporation and Holy Name Properties, Inc., has collaborated with MHEG since 1996. Their most recent award was Adam Park Senior Cottages I, LP, which is a mixed income project with 28 elderly units, located in Adam Park Development in the northeast area of Omaha. This project was particularly unique in the fact that Mike Gawley and his staff literally had to move a forest. The newly revitalized area of Adam Park will make a splendid location for this new project and wonderful home for persons meeting the 55+ age requirement. We celebrated the Adam Park Senior Ground Breaking with the rest of the community and look forward to it coming on line. We attended a ribbon cutting in Schuyler, NE for Kracl Meadows, LLC. The Mesner Development Co. teamed up with the Schuyler Community Development, Inc. to build seven new elderly duplexes for a total of 14 units. They were also responsible for building new single-family workforce housing in the same development. We have partnered on nearly 50 projects with the Mesner Development Co. over the past couple of decades and consider them a great partner as well. On August 21, 2017, we all stepped outside our office to view the “Great Eclipse”. According to different reports, Nebraska had over 500,000 tourists from all over the world in our state to view the eclipse. One of the closest and best sightings occurred in Beatrice and we understand the clouds cleared in time for a full view! Beatrice is significant because we plan to close a project in this lovely community during November with another great and long-time partner, Excel Development Group. More to come next issue. One additional note, we are happy to have closed our first of many projects which are using the new Nebraska Affordable Housing Tax Credits this quarter. It was a very welcome source of funding and we appreciate all our advocates for making this available for the projects so we can continue our mission of helping to provide quality affordable housing. Thank you to all our investors, partners and others who help continue to make MHEG a company I am proud to work.
South Region Update Andrea Frymire
Congratulations to all of the award winners in Arkansas, Texas and Round 1 Oklahoma! We look forward to working with you to expand affordable housing opportunities in our region. As a benefit to our partners, we continue to monitor and provide comments on QAP drafts in our region.
speed on the need for housing in Oklahoma as well as the importance of using the state affordable housing credit to create additional housing for all Oklahomans.
Although the Oklahoma Affordable Housing Act survived the regular session with the Oklahoma Legislature, it was on the chopping block again during special session. We continue to monitor state legislation affecting the state affordable housing credit but also legislation that would place a sales tax on services and increase operating costs across the board on developments in Oklahoma. As we continue to have turn over Dennis Shockley (OHFA), Andrea Frymire (MHEG), Steve in the state legislature, Shepelwich (Federal Reserve Bank of KC), Deborah it is imperative we bring Jenkins (OHFA) and Gloria Reynolds (FDIC) at the OCAH new Legislators up to
This summer, Midwest Housing once again participated in the Regional Housing Forums presented across the state by the Oklahoma Coalition for Affordable Housing. We enjoy meeting with city officials and helping assist municipalities in bringing more housing to their community. I’d like to take a moment and recognize Deborah Jenkins, new Executive Director at the Oklahoma Housing Finance Agency and thank outgoing Executive Director Dennis Shockley. Running a state housing agency is no small feat and we enjoy our partnership and collaboration across all of our states. We appreciate all of our partners and thank you for the opportunity to serve your needs in 2017. We look forward to working with you in 2018. Please do not hesitate to contact me if I may be of assistance.
annual meeting.
3
Volume 10, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: Victory Park Veterans Residence, LLC - Lincoln, Nebraska On November 3, 2017, several MHEG staff were able to attend the Victory Park Veterans Residence ribbon cutting ceremony in Lincoln, Nebraska. Victory Park is part of a comprehensive planned redevelopment of the VA Medical Center campus located at 600 S. 70th Street, approximately 60 acres. The development of the campus will occur over the next few years and also include senior housing, medical office buildings and renovation of the former VA hospital. Victory Park is a three-story building comprising of 70 units of permanent supportive housing supported by HUD/VASH housing vouchers. All 70 units will be restricted to Veterans at or below 50% of the area median income. Amenities include a complimentary laundry center, dishwasher, outdoor patio, an elevator, private rooms in the building to be used for supportive services, controlled building access and on-site surveillance camera. Four of the units will be ADA accessible units. The on-site manager will spend 40 hours per week at the building. The property will also have a part time maintenance employee. Every effort will be made to employ a Veteran in these positions. All veterans receiving a voucher will be medically eligible for VA services and will be able to utilize the services at the VA including primary and mental health care in addition to case management services.
Closed Acquisitions LIHTC DEVELOPMENTS
FUND
CITY / STATE
Paola Seniors II, LP
MHEG 46
Paola, KS
42
May
Dean Development LLC
OPG Autumn Sage Partners, LLC
MHEG 46
Abilene, TX
35
May
Overland Property Group
Horizon Place Apartments LP
MHEG 47
Sioux Falls, SD
62
May
Inter-Lakes Community Action Partnership
Delaware Place, LLC
MHEG 46
Valley Fall, KS
14
June
Mesner Development Company
Washita Plains, LLC
MHEG 2017
Davis, OK
10
June
LW Development
Jack Estates, LP
MHEG 46
Waverly, NE
15
July
Dana Point Development Corp
Prague Terrace Limited Partnership
BFCF I
Prague, OK
24
July
Green Companies Development Group
Adam Park Senior Cottages I LP
MHEG 46
Omaha, NE
18
August
Holy Name Housing Corp
Heritage Place Bowling Green, LP
MHEG 2017
Bowling Green, MO
40
August
Dow Con LLC
Prairie Flats, LLC
Victory Park Residence GP, LLC
Developer
Burlington Capital Real Estate, LLC
Property Manager
Burlington Capital Properties
DEVELOPER
MHEG 2017
Enid, OK
36
September Excel Development Group
Chandler, OK
60
September
Green Companies Development Group
Odd Fellow Housing Associates, LP
MHEG 46
Norfolk, NE
92
October
Odd Fellow Developers LLC
The Row Lexington, LP
MHEG 48
Lexington, NE
10
October
Ward F. Hoppe, LLC
Total Units Closed from May - October
458
Total Units Closed to Date in 2017
708
MHEG Annual Meeting & Golf Outing
Groundbreakings, Ribbon Cuttings, Dedications and Events....
1
UNITS DATE
Chandler Terrace Limited Partnership BFCF I
Victory Park Veterans Residence, LLC General Partners
November 2017
2
3
Our 2017 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 5th. We had over 20 teams participate in the outing. Thank you to all who attended for making the day such a success, we look forward to this outing each year and the fun it brings.
1st Place (L-R) Mark Dennett (INTRUST Bank), Randy Ilich (Colorado Federal Savings Bank), Dave Fisher (MHEG Board Chairman), Pat Michaelis (MHEG) 1) Partners of Willow Ridge Apartments (MHEG Fund 44) came together on June 1st, 2017, to celebrate with a ribbon cutting ceremony in Manhattan, Kansas. This new multifamily complex developed by Excel Development Group will provide 42 families with safe, qualifty affordable rental housing. 2) On August 2nd, 2017, MHEG, LP Developers and other partners of Landmark Plaza (MHEG Fund 44) celebrated the completed renovation of this ten-story building, providing 83 rental units for eldery persons. 3) North Star Housing hosted a grand opening ribbon cutting for Boone County Special Needs Affordable Housing (MHEG Fund 46) on August 28th, 2017 in Columbia, Missouri. This much needed development will provide 28 housing units for people with special needs.
4
5
6
4) MHEG is excited to partner with DowCon, LLC to develop Heritage Place Apartments (MHEG Fund 2017) a 40-unit new construction development for seniors and special needs tenants in Bowling Green, Missouri. A groundbreaking was held on September 5th, 2017. 5) Tartan Residential, Inc. held a ribbing cutting ceremony on October 18, 2017, for Buchanan’s Crossing (MHEG Fund 42) in Kansas City, Kansas. Now complete, these duplexes will provide 24 new units for families. 6) Guests and MHEG staff attend our 10th Annual Kansas Appreciation Dinner at the Wichita Boathouse on August 24th, 2017, in Wichita, Kansas.
4
2nd Place
3rd Place
Last Place
(L-R) Jim Rieker (Advantage Capital), Sammy Ehtisham (MHEG), Brian Tucker (MHEG Consultant), John Kroeker (Teckmeyer Financial Services)
(L-R) Karla Burck (Herman & Kittle), Ann Burge (MHEG), Scott Kroeger (Lutz), Gary Newton (Lutz)
(L-R) Gregg Yeutter (Kutak Rock), Janet Latimer (Horizon Bank), John Wiechmann (MHEG), Jay Dunlap (Farmers & Merchants Investment)
5
Volume 10, Issue 2
Keeping you up to date on MHEG in just a minute’s time.
Property Spotlight: Victory Park Veterans Residence, LLC - Lincoln, Nebraska On November 3, 2017, several MHEG staff were able to attend the Victory Park Veterans Residence ribbon cutting ceremony in Lincoln, Nebraska. Victory Park is part of a comprehensive planned redevelopment of the VA Medical Center campus located at 600 S. 70th Street, approximately 60 acres. The development of the campus will occur over the next few years and also include senior housing, medical office buildings and renovation of the former VA hospital. Victory Park is a three-story building comprising of 70 units of permanent supportive housing supported by HUD/VASH housing vouchers. All 70 units will be restricted to Veterans at or below 50% of the area median income. Amenities include a complimentary laundry center, dishwasher, outdoor patio, an elevator, private rooms in the building to be used for supportive services, controlled building access and on-site surveillance camera. Four of the units will be ADA accessible units. The on-site manager will spend 40 hours per week at the building. The property will also have a part time maintenance employee. Every effort will be made to employ a Veteran in these positions. All veterans receiving a voucher will be medically eligible for VA services and will be able to utilize the services at the VA including primary and mental health care in addition to case management services.
Closed Acquisitions LIHTC DEVELOPMENTS
FUND
CITY / STATE
Paola Seniors II, LP
MHEG 46
Paola, KS
42
May
Dean Development LLC
OPG Autumn Sage Partners, LLC
MHEG 46
Abilene, TX
35
May
Overland Property Group
Horizon Place Apartments LP
MHEG 47
Sioux Falls, SD
62
May
Inter-Lakes Community Action Partnership
Delaware Place, LLC
MHEG 46
Valley Fall, KS
14
June
Mesner Development Company
Washita Plains, LLC
MHEG 2017
Davis, OK
10
June
LW Development
Jack Estates, LP
MHEG 46
Waverly, NE
15
July
Dana Point Development Corp
Prague Terrace Limited Partnership
BFCF I
Prague, OK
24
July
Green Companies Development Group
Adam Park Senior Cottages I LP
MHEG 46
Omaha, NE
18
August
Holy Name Housing Corp
Heritage Place Bowling Green, LP
MHEG 2017
Bowling Green, MO
40
August
Dow Con LLC
Prairie Flats, LLC
Victory Park Residence GP, LLC
Developer
Burlington Capital Real Estate, LLC
Property Manager
Burlington Capital Properties
DEVELOPER
MHEG 2017
Enid, OK
36
September Excel Development Group
Chandler, OK
60
September
Green Companies Development Group
Odd Fellow Housing Associates, LP
MHEG 46
Norfolk, NE
92
October
Odd Fellow Developers LLC
The Row Lexington, LP
MHEG 48
Lexington, NE
10
October
Ward F. Hoppe, LLC
Total Units Closed from May - October
458
Total Units Closed to Date in 2017
708
MHEG Annual Meeting & Golf Outing
Groundbreakings, Ribbon Cuttings, Dedications and Events....
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UNITS DATE
Chandler Terrace Limited Partnership BFCF I
Victory Park Veterans Residence, LLC General Partners
November 2017
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Our 2017 Annual Meeting & Golf Outing took place at Quarry Oaks on Monday, June 5th. We had over 20 teams participate in the outing. Thank you to all who attended for making the day such a success, we look forward to this outing each year and the fun it brings.
1st Place (L-R) Mark Dennett (INTRUST Bank), Randy Ilich (Colorado Federal Savings Bank), Dave Fisher (MHEG Board Chairman), Pat Michaelis (MHEG) 1) Partners of Willow Ridge Apartments (MHEG Fund 44) came together on June 1st, 2017, to celebrate with a ribbon cutting ceremony in Manhattan, Kansas. This new multifamily complex developed by Excel Development Group will provide 42 families with safe, qualifty affordable rental housing. 2) On August 2nd, 2017, MHEG, LP Developers and other partners of Landmark Plaza (MHEG Fund 44) celebrated the completed renovation of this ten-story building, providing 83 rental units for eldery persons. 3) North Star Housing hosted a grand opening ribbon cutting for Boone County Special Needs Affordable Housing (MHEG Fund 46) on August 28th, 2017 in Columbia, Missouri. This much needed development will provide 28 housing units for people with special needs.
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4) MHEG is excited to partner with DowCon, LLC to develop Heritage Place Apartments (MHEG Fund 2017) a 40-unit new construction development for seniors and special needs tenants in Bowling Green, Missouri. A groundbreaking was held on September 5th, 2017. 5) Tartan Residential, Inc. held a ribbing cutting ceremony on October 18, 2017, for Buchanan’s Crossing (MHEG Fund 42) in Kansas City, Kansas. Now complete, these duplexes will provide 24 new units for families. 6) Guests and MHEG staff attend our 10th Annual Kansas Appreciation Dinner at the Wichita Boathouse on August 24th, 2017, in Wichita, Kansas.
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2nd Place
3rd Place
Last Place
(L-R) Jim Rieker (Advantage Capital), Sammy Ehtisham (MHEG), Brian Tucker (MHEG Consultant), John Kroeker (Teckmeyer Financial Services)
(L-R) Karla Burck (Herman & Kittle), Ann Burge (MHEG), Scott Kroeger (Lutz), Gary Newton (Lutz)
(L-R) Gregg Yeutter (Kutak Rock), Janet Latimer (Horizon Bank), John Wiechmann (MHEG), Jay Dunlap (Farmers & Merchants Investment)
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MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. Volume 10, Issue 2
2017 Ad Astra Winners
Inside this Issue: Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Property Spotlight
4
Recent Events
4
Closed Acquisitions
5
Upcoming Events
6
Monthly LIHTC Rates 515 N. 162nd Ave., Ste. 202, Omaha, NE 68118
July 2017 30%PV
AFR
3.22%
2.60%
30%PV
AFR
3.22%
2.58%
September 2017 30%PV
AFR
3.22%
2.60%
October 2017
November
IFA Board Meeting: Nov. 1st Des Moines, IA - IFA Office
KHRC Board Meeting: Dec. 7th Topeka, KS - KDFA Board Room
KHRC Board Meeting: Nov. 2nd Topeka, KS - KDFA Board Room
IFA Board Meeting: Dec. 6th Des Moines, IA - IFA Office
TDHCA Board Meeting: Nov. 9th Austin, TX - Capitol Extension Auditorium
MHDC Regular Commission Meeting: Dec. 19th Jefferson City, MO - Double Tree Hotel
OHFA Board Meeting: Nov. 15th Oklahoma City, OK - OHFA Office
NIFA Board Meeting: Dec. 15th Lincoln, NE - NIFA Board Room
Annual Oklahoma Appreciation Luncheon: Nov. 15th Oklahoma City, OK - Top Golf
ADFA Board Meeting: Dec. 21st Little Rock, AR - ADFA Office
ADFA Board Meeting: Nov. 16th Little Rock, AR - ADFA Office
CHFA Board Meeting: Dec. 14th Denver, CO - CHFA Board Room
CHFA Board Meeting: Nov. 16th Denver, CO - CHFA Board Room
30%PV
AFR
3.21%
2.50%
November 2017
December
30%PV
AFR
3.23%
2.60%
Please note we will no longer show the 70% PVC rate as it was permanently fixed at 9% in December 2015. For more information view the Protecting Americans from Tax Hikes Acot of 2015.
Portfolio Update Developments Units
TDHCA Board Meeting: Dec. 14th Austin, TX - Capitol Extension Auditorium
499 15,364
Counties Represented
187
Cities Represented
228
Vacancy Percentage
5.96%*
Debt Coverage Ratio
1.60*
Information current as of 10/31/17 *Data compiled from 10/15/17 figures using stabilized developments only, vacancy percentage is using economic vacancy.
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. For any other inquiries about the content of this newsletter, please contact Keely McAleer. 6
This past August the Kansas Housing Resources Corporation (KHRC) hosted their annual Bringing Kansas Home Housing Conference in Wichita, Kansas and presented their Ad Astra Awards. The awards honor individuals and organizations who demonstrate excellence in developing affordable housing, shaping housing policy and creating innovative housing solutions to meet the daily needs of low and moderate-income Kansans. MHEG was excited to learn that three of our partners received awards this year recognizing them for their outstanding service to the affordable housing industry in Kansas. Innovation in Housing Award: Rebecca Buford, Executive Director of Tenants to Home Owners
August 2017
Upcoming Events
November
Above: Byron Adrian, President of Mennonite Housing Rehabilitation Services, some of his staff and Pat Michaelis and Brooke Smith from MHEG during the Ad Astra Awards presentation. Below: Brooke Smith and Pat Michaelis, both of MHEG, celebrate with Rebecca Buford as she receives her Innovation in Housing Award.
Preservation Award: Commerce Gardens Apartments (MHEG Fund 42) developed by Investment Resources Corporation and located in Hutchinson, Kansas Innovation in Housing Award: Bluffview Place (MHEG Fund 44) developed by Mennonite Housing Rehabilitation Services and located in Wichita, Kansas
Chris Imming to Retire It is with mixed feelings that we announce the retirement of Chris Imming. His last day will be December 21, 2017. Chris has been an integral part of our company for the last 7½ years working as an Acquisitions Manager in the Topeka office. His hard work, contributions to the Central Region, and dedication will always be valued. His knowledge, guidance and humor will be greatly missed. Prior to MHEG, Chris worked for the FHLBank Topeka as the Director of Housing & Community Development. We would like to thank him for the almost 30 years of combined service that he has dedicated to housing and development. On behalf of every one at MHEG, I would like to wish him the best of luck in retirement. We invite you to join us for a retirement celebration, which will be held at the Topeka office on Tuesday, December 12, 2017, at 2pm. Please RSVP to Lisa Bryan if you will be attending.
2016 Annual Report Copies
Des Moines Office Moving!
MHEG’s 2016 Annual Report “Making It Happen” was released in June. To view the report online go to our News & Events page on our website.
Our Des Moines office is moving locations.
Paper copies are still available, email Keely McAleer to request one.
The phone number is remaining the same: #515-280-6000
Effective December 1st, the new address will be:
699 Walnut Street, Suite 471 Des Moines, IA 50309
Please note the address change in your files.
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