MHEG ANNUAL REPORT 2020
Resilience re•sil•ience
noun
1. the capacity to recover quickly from difficulties; toughness.
2. the ability of a substance or object to spring back into shape; elasticity
Message from our President MHEG Portfolio Summary 2020 Developments Rita’s Story Equity Summary Board of Directors & Committee Members MHEG Staff 1 3 5 7 9 10 11 Contents
Message from the President & CEO
Greetings Friends! As I look back on 2020 and all that we overcame and accomplished the one word that best embodies 2020 is RESILIENT!
Resilient partners, resilient investors, resilient developers and sponsors, resilient contractors, resilient property managers, resilient residents and our own resilient team. It’s been just over a year since the pandemic began and the world changed. It’s the worst health crisis in 100 years and worst economic crisis in over a decade. The economic and social disruption will be felt for a long time to come. But we adapted, tried to stay safe and worked harder to ensure our residents had a safe, decent and affordable place to call home. We all came together to Change Lives For A Better Tomorrow!
In 2020, we raised just under $200 million in new equity commitments and closed investments in 36 new developments, helping finance over 1,400 units of quality affordable housing. Together with you, 27 new developments reached construction completion, creating almost 1,000 safe, decent and affordable units for even more individuals and families. Your ability to adapt to the many new regulations and safety procedures kept these developments moving forward. Operationally, the frequent communication and resource sharing allowed us all to keep our residents safe and healthy in their homes. 2020 required true partnership to achieve all this – partnership that you provided. When we work together, it makes everyone stronger. And 2020 demonstrated that to be a true statement.
Looking ahead at 2021, many challenges remain. The effects of the pandemic on poverty, education, long-term health, economic opportunity and society at
large will continue. These challenges drive our passion to provide even more safe, decent affordable housing. We look forward to continuing our existing partnerships and beginning new ones this year.
Of course, none of these accomplishments would be possible without all of our great partners. Thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials. I especially want to thank the MHEG team for their continued efforts and motivation, for their ability to deliver results during this unprecedented time and for their resiliency.
Thank you for taking the time to read our 2020 Annual Report. We look forward to Changing Lives for a Better Tomorrow in 2021!
John J. Wiechmann President/CEO
2
5,000 units 10,000 units 15,000 units 20,000 units 25,000 units 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20,421 units 1996 1997 1998 1999 2000 2001 2002 2003 1993 1994 1995 2015 2014 2016 2017 2018 2019 2020 MHEG TOTAL ARKANSAS COLORADO IOWA KANSAS MINNESOTA MISSOURI Developments 626 10 16 80 157 4 32 Housing Units 20,421 456 1,361 2,773 4,513 148 1,498 Counties 224 10 11 28 51 4 24 Cities 278 10 12 35 71 4 25 2020 Portfolio Summary Breakdown of Development Type 43% 9% 14% 34% multifamily age restricted single family special needs 3
NEBRASKA OKLAHOMA S. DAKOTA TEXAS 226 79 11 11 5,893 2,852 445 482 50 33 2 7 67 45 2 7 Development Size 19% 48% 33% 0-12 units 13-24 units 25+ units Development Location 5% 36% 59% rural urban suburban Construction Type 6% 75% 19% new rehab historic rehab Development Status 18% 8% 73% 1% operational lease-up construction disposed 4
2020 Developments
36 developments
MHEG partnered with 30 developers to develop 36 developments within 31 Midwest communities.
$215 million
MHEG closed over $215 million in equity. This included 11 age restricted developments, 19 multifamily developments, five single family home properties and one special needs housing development.
1,423 units
MHEG created 1,423 affordable housing units. Properties ranged from a 10-unit rural development in Nebraska to a 89-unit urban development in Texas.
5
Kappa Tower II LLLP
Denver - 70 age restricted units
Developed by: Medici Development LLC & MGL Partners
Oakwood Senior II LLC
Castle Rock - 53 age restricted units
Developed by: MGL Partners
The Mill Apartments, LLLP
Fraser - 60 multifamily units
Developed by: Grand Park Homes LLC
Kansas
Gold Leaf Senior Living LLC
Baldwin City - 24 age restricted units
Developed by: United Enterprises, LLC
Girard and Ellsworth County Affordable Housing, LP
Ellsworth, Kanopolis & Girard - 24 single family units
Developed by: Holden Communities, LLC
Bethel Ridge 64, LLC
Kansas City - 63 multifamily units
Developed by: Tier 1 Development Group, LLC
Canyon Creek Apartments, LP
Manhattan - 36 age restricted units
Developed by: Excel Development Group
Heritage Townhomes of Rose Hill, L.L.C.
Rose Hill - 16 age restricted units
Developed by: Manske & Associates, L.L.C.
Residences at Central Landing LLC
Wichita - 32 age restricted units
Developed by: Vintage Construction, LLC
Nebraska
FRC Housing, LLC
Columbus - 34 age restricted units
Developed by: Mesner Development Co.
Hidden Brook Townhomes, LLC
Fremont - 20 multifamily units
Developed by: Mesner Development Co.
Hidden Brook Townhomes II, LLC
Fremont - 20 multifamily units
Developed by: Mesner Development Co.
The Row Fremont, LP
Fremont - 25 multifamily units
Developed by: Hoppe & Son, LLC
McCoy Meadows, LP
Grand Island - 60 multifamily units
Developed by: Dana Point Development Corporation
1404 Castelar, LLC
Omaha - 38 age restricted units
Developed by: Foundations Development, L.L.C.
2315 S. 15th Street, LLC
Omaha - 15 multifamily units
Developed by: Foundations Development, L.L.C.
CenterPointe Campus for Hope, LLC
Omaha - 36 special needs units
Developed by: CenterPointe, Inc.
Maple 37 Limited Partnership
Omaha - 24 single family units
Developed by: Holy Name Properties, Inc.
Wisner Crown, LLC
Wisner - 10 single family units
Developed by: Foundations Development, L.L.C.
Arkansas
The Heights at Shackleford Limited Partnership
Little Rock - 85 multifamily units
Developed by: Phillips Development Corporation
PDC Rogers Limited Partnership
Rogers - 83 multifamily units
Developed by: Phillips Development Corporation
Missouri
Cassville Heights Apartments Phase II LP
Cassville - 32 multifamily units
Developed by: Midcontinent Equity Holdins, LLC
Pine Ridge II, LP
Farmington - 24 age restricted units
Developed by: East Missouri Action Agency Inc.
NewView Place I LLC
Kansas City - 66 multifamily units
Developed by: FH Northeastview LLC
Wornall Estates Investor Partner, LP
Kansas City - 30 multifamily units
Developed by: Yarco Company, Inc.
Logan West Living, LP
Rogersville - 39 multifamily units
Developed by: Morelock Builders & Associates
Doling Landing LP
Springfield - 24 single family units
Developed by: Raga Properties, LLC
Oklahoma
Lindenwood Townhomes III, LLC
Durant - 13 multifamily units
Developed by: Desert Ridge Investments
Saddle Ridge Trails, LLC
Guymon - 40 single family units
Developed by: LW Development, LLC
The Estates of New Castle LP
New Castle - 60 age restricted units
Developed by: Wheatland Investments, LLC
Apple Ridge Homes III, LLC
Pauls Valley - 17 multifamily units
Developed by: Express Development & Desert Ridge Investments
Stilwell Wisdom Keepers, L.P.
Stilwell - 40 age restricted units
Developed by: Green Companies Development Group, Inc.
South Dakota
Irving Center Apartments Limited Partnership
Sioux Falls - 35 multifamily units
Developed by: Sioux Falls YMCA
Lacey Village Townhomes Limited Partnership
Sioux Falls - 46 multifamily units
Developed by: Inter-Lakes Community Action Partnership, Inc.
Texas
OPG Laurel Flats Partners LLC
Tyler - 89 multifamily units
Developed by: Overland Property Group
OPG Saddleback Ranch Partners, LLC
Wolfforth - 40 multifamily units
Developed by: Overland Property Group
Colorado
6
Rita’s Story
She is vivacious, positive, and resilient. Her energy to live life is contagious, and she has no plans to slow down. Rita knows life has many stages, and not all of them are easy, but she thinks attitude and gratitude are attributes that can help you transition and deal with the more challenging times. And she’s extremely thankful for Landmark at Lamar.
Rita found herself searching for a new home a few years ago when her dear friend with Alzheimer’s advanced to a stage that would no longer allow for them to live together. It was an extremely difficult time for Rita. But as chance would have it, another friend mentioned to her a new senior living community that was being developed and her life took another turn.
Located in downtown Wichita Falls, Texas, Landmark at Lamar is an adaptive reuse and renovation of an existing historic, four-story building. Developed by Overland Property Group, the building is designated for persons 55+. Constructed in 1929, the original building was a furniture store, a retail store at various times and then served as the Maskat Shrine Temple and meeting space.
Rita cannot say enough about how much she enjoys living at Landmark at Lamar, I love it here. I love living downtown and I really like the amenities that they have, the washer and dryer, the elevator, secure entry. It’s a safe environment, I feel very safe here.” The building is within walking distance to many restaurants, shops, health care providers, and even a 50 Plus Club, a recreational facility that specializes in social activities for persons 50 and over.
Rita also loves the community Landmark at Lamar offers. They do many group activities from cards and puzzles, to weekly movie nights and coffee and donuts gatherings. “It is a very welcoming environment. I like to visit with the other residents,” Rita continued, “This is a wonderful place to live because you have people you can share with and communicate with. It’s a very positive and uplifting experience here.”
Jokingly Rita mentions that she has no plans to ever move. She feels reinvigorated living in a community that promotes an active, social lifestyle and has enjoyed finding happiness again. She smiles and says, “The best is yet to come.”
7
8
“This is a wonderful place to live because you have people you can share with and communicate with,” ~ Rita
Equity Summary
In 2020, MHEG raised just under $200 million in equity capital. Since inception, MHEG has raised over $2.4 billion of equity capital to invest in affordable housing.
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1996 1997 1998 1999 2000 2001 2002 2003 1993 1994 1995 2015 2014 2016 2017 2018 2019 2020
9
$500M $1.0B $1.5B $2.0B $2.5B
$2.4 billion
Board & Committees
Board of Directors
Barry Sandstrom - Retired President/CEO, Home Federal Bank - Chairman of the Board
Dennis Brand - Chairman of the Executive Committee, BancFirst - Vice Chairman of the Board
Frank Hayes - President, Hayes & Associates, L.L.C.
Chris Hite - President, Sugar Creek Capital
Kirk Kellner - Retired Tri-State Regional President, Wells Fargo
Dan Lonergan - Retired,Tenaska Capital Management
Nicole Theophilus - Chief Human Resources Officer, Wabtec Corporation
John Wiechmann - CEO/President, Midwest Housing Equity Group
Committees
Audit Committee
Frank Hayes - Hayes & Associates
Chris Hite - Sugar Creek Capital
Kirk Kellner - Retired, Wells Fargo
Dan Lonergan - Retired, Tenaska Capital Management
Central Region Operations & Investment Committee
Bob Arthur - Commerce Bank, N.A.
Mark Dennett - INTRUST Bank, N.A.
Tracy Howren - UMB Bank, n.a.
Michael Scheopner - Landmark National Bank
John Wiechmann - Midwest Housing Equity Group
Northeast Region Operations & Investment Committee
Jennifer Cooper - Bankers Trust
Tom Hanafan - Pottawattamie County Board of Supervisors
Susan Whitson - First National Bank of Waverly
John Wiechmann - Midwest Housing Equity Group
Budget & Compensation Committee
Dennis Brand - BancFirst
Barry Sandstrom - Retired, Home Federal Bank
Nicole Theophilus - Wabtec Corporation
Northwest Region Operations & Investment
Committee
Anthony Cerasoli - First National Bank of Omaha
Jerry Cihal, Retired, Mutual of Omaha
Justin Horst - Pinnacle Bank
Randy Ilich - Colorado Federal Savings Bank
Lauren Pugliese, Nelnet
John Wiechmann - Midwest Housing Equity Group
South Region Operations & Investment Committee
Brent Bates - Bank SNB
Roger Beverage - Oklahoma Bankers Association
Dennis Brand - BancFirst
Daving King - MidFirst Bank - Tulsa
Tom O’Keefe - INTRUST Bank, N.A.
John Wiechmann - Midwest Housing Equity Group
Mike Wynn - Mabrey Bank
10
MHEG Staff
Executive Staff
Becky Christoffersen
Chief Investment Officer Jason Main Chief Financial Officer
Shannon Foster Accounting Manager
Tom Stratman Vice President of Acquisitions
Sammy Ehtisham Assistant Vice President of Acquisitions
Jordan Abboud Vice President of Asset Management
Sara Church Asset Manager
Traci Collins Acquisitions Manager
Pat Michaelis Vice President Business Development Officer Central Region
Andrea Frymire Vice President Business Development Officer South Region
Ann Burge Chief Operating Officer
Steve Gross Senior Financial Analyst
Scott Fitzpatrick Vice President Business Development Officer Northeast Region
John Wiechmann Chief Executive Officer & President
Dustin Daugherty Construction Manager
Lisa Bryan Administrative Coordinator
Kelli Baker Asset Manager
Tracy Connor Corporate Accountant
11
Tyler Arens Acquisitions Manager
Laurie Stephenson Deputy Director of Compliance
Shannon Powers Closing ManagerReal Estate
Josh Rauner Fund Reporting Manager
Brooke Smith Senior Asset Manager
Dana Oswald Accounting Coordinator
Keely McAleer Corp. Communications & HR Administrator
Deb Swanson Closing Manager
Ryan Harris Acquisitions Manager
Brad Reiff Acquisitions Manager
Brett Helt Financial AnalystAsset Stabilization
Jake Jacobsen Construction Manager
Amanda Raak Financial Analyst
Cindy Wieck Administrative Assistant
Shellie Vandeman Compliance Specialist
Shannon Johnson Accounting Assistant
Sharita Nelson Compliance Specialist
Paul McDonald Senior Asset Manager
Mike Powley Deputy Director of Operations
Joshua Yurek Director of Government Affairs
Cole Rogers Financial Analyst
Trey Mendlik Financial Analyst
12
Jennifer Niemier Closing Manager
Midwest Housing Equity Group
515 N. 162nd Avenue, Suite 202 Omaha, NE 68118 www.mheginc.com