Volume 13, Issue 1
March 2021
Staff Announcements Tyler Arens, Acquisitions Manager
MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time.
Tyler Arens joined MHEG as an Acquisitions Manager in 2020 and works from our Sioux Falls office. He is responsible for underwriting equity investments in affordable housing developments financed with tax credits in compliance with MHEG’s processes, procedures and credit standards. He works with MHEG management, affordable housing developers, lenders, state Housing Finance Agencies and other government agencies to close our investments into operating partnerships. He was previously Housing Development Director for Affordable Housing Solutions. Tyler is a graduate from the University of Iowa with a B.A. in Economics.
Deb Holcomb, Compliance Specialist
Volume 13, Issue 1
March 2021
Victory Park Veterans Residence Receives Edson Award Inside this Issue:
Deb joined MHEG as a Compliance Specialist during the summer of 2020 in our Omaha office. Her duties will include monitoring the initial lease-up of new properties as well as monitoring existing MHEG properties for the compliance period ensuring that residents of the affordable housing developments comply with all rent, income and other regulatory restrictions applicable to each property. Deb has over 25+ years of affordable housing experience from various roles, including positions at Excel Development Group, NIFA and most recently with Liberty Property Management Company.
Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Government Affairs Update 4
Karen Boyd, Closing/Risk Manager
MHDF Update
4
Karen joined MHEG as a Closing/Risk Manager this past fall in our Omaha office. She will work closely with both the Acquisitions Managers and Asset Managers. Her duties will include collecting and reviewing due diligence to ensure a timely closing of our investments, as well as collecting and analyzing all of our operating partnerships’ insurance policies. Karen has over 15+ years of paralegal experience and several years of experience with risk management and internal auditing. Prior to MHEG, she worked at Mutual of Omaha Insurance Company and Abrahams Kaslow & Cassman LLP. Karen received a B.S. in Criminal Justice from the University of Nebraska at Omaha and is currently pursuing her Master of Business Administration through Midland University’s Dunklau School of Business.
Closed Acquisitions
5
Property Spotlight
5
Staff Updates
6
Upcoming Events
6
MHDF
Portfolio Update
Paula Rhian, Loan Administrator Paula joined MHDF as a Loan Administrator during the first quarter of 2020. She is responsible for managing the day to day loan administration functions of MHDF. Her duties include loan documentation, credit administration, reporting, as well as assisting with MHDF marketing and external communications. She has over 15+ years of affordable housing experience from various roles, including positions at DED, Excel Development Group, and most recently with Horizon Bank. Paula received her Bacehlor’s degree from Nebraska Wesleyan University.
Developments Units
627 20,497
Counties Represented
221
Cities Represented
279
Vacancy Percentage
5.66%*
Debt Coverage Ratio
1.83*
Information current as of 2/15/21 *Data compiled from 12/31/20 figures using stabilized developments only, vacancy percentage is using economic vacancy.
Upcoming Events March
April
May
IFA Board Meeting: May 5th Des Moines, IA - IFA Office
June
KHRC Board Meeting: Apr. 1st Topeka, KS - KDFA Board Room
KHRC Board Meeting: Mar. 4th Topeka, KS - KDFA Board Room
IFA Board Meeting: Apr. 7th Des Moines, IA - IFA Office
KHRC Board Meeting: May 6th Topeka, KS - KDFA Board Room
KHRC Board Meeting: Jun. 3rd Topeka, KS - KDFA Board Room
SDHDA Board Meeting: Mar. 9th Pierre, SD - SDHDA Board Room
TDHCA Board Meeting: Apr. 8th Austin, TX - Capitol Extension Auditorium
TDHCA Board Meeting: May 13th Austin, TX - Capitol Extension Auditorium
NIFA Board Meeting: Jun. 18th Lincoln, NE - NIFA Board Room
IFA Board Meeting: Mar. 3rd Des Moines, IA - IFA Office
TDHCA Board Meeting: Mar. 11th Austin, TX - Capitol Extension Auditorium OHFA Board Meeting: Mar. 17th Oklahoma City, OK - OHFA Office
NIFA Board Meeting: Apr. 16th Lincoln, NE - NIFA Board Room
OHFA Board Meeting: May 26th Oklahoma City, OK - OHFA Office
CHFA Board Meeting: Apr. 22nd Denver, CO - CHFA Board Room
CHFA Board Meeting: May 27th Denver, CO - CHFA Board Room
IFA Board Meeting: Jun. 2nd Des Moines, IA - IFA Office
Last August, the Victory Park Veterans Residence received the Charles L. Edson Tax Credit Excellence Award and has been recognized as one of the nation’s outstanding affordable apartment projects developed with low-income housing tax credits. Announced each year by the Affordable Housing Tax Credit Coalition (AHTCC), the award honors LIHTC developments that are strengthening communities, improving residents’ health and boosting economies in urban, suburban and rural areas across the country. Victory Park, developed and managed by Burlington Capital, provides 70 new affordable homes for very low-income veterans of the United States Armed Forces. It is located on the beautiful 58-acre VA Historical Campus in Lincoln, which includes a VA hospital, providing residents with nearby access to health services in addition to services provided on-site. Victory Park was invested in by MHEG Fund 46 LP. In a congratulatory video, Senator Deb Fischer (R-NE) stated, “I would just like to congratulate Victory Park for the service they provide for our veterans,” calling the Edson award “one more way we can thank our veterans for their service and sacrifice that they have given to our country. Thank you to our veterans and congratulations to Victory Park.” HUD estimates that approximately 60,000 Veterans are without appropriate shelter on any given night, and that 1.4 million Veterans are at risk of homelessness due to poverty, lack of support networks, and dismal living conditions in substandard housing. MHEG is proud to partner with Burlington Capital on this exceptional development.
Koster Retires It is with bittersweetness that we announce the retirement of Cindy Koster. Her last day was February 5th, 2021. Cindy has been with MHEG for over 17 years and has been an invaluable asset to our company. She started in October 2003 as a Development Associate, eventually becoming a Senior Acquisitions Manager. She trained many members of the Acquisitions department but was always available to share her vast knowledge of LIHTC to all employees at MHEG. Her expertise and dedication will be greatly missed. Prior to MHEG, Cindy worked for a developer with a combined service of almost 25 years in the affordable housing industry. We thank her for her many years of service that she has dedicated to housing and development.
Unfortunately, due to current restrictions, we were unable to host a retirement celebration for Cindy. If you have any kind words you would like to share, please email them to kmcaleer@mheginc.com and we will pass them along.
We’re Hiring!! MHEG is looking to add to our team! For complete job descriptions and requirements, visit our website’s Employment page. To apply, email your resume to Keely McAleer.
MHEG - Closing Manager (Omaha, NE)
CHFA Board Meeting: Jun. 24th Denver, CO - CHFA Board Room
If you would like to receive our newsletter, go to our homepage to sign-up or email kmcaleer@mheginc.com to be added to the list. For past issues of MHEG in a Minute check our website under News & Events.
NIFA Board Meeting: Mar. 19th Lincoln, NE - NIFA Board Room CHFA Board Meeting: Mar. 25th Denver, CO - CHFA Board Room 6
Cindy Koster (right) and Candace Gregory during a celebration for MHEG’s 300th Acquisition in October 2011.
The Closing Manager works closely with Midwest Housing Equity Group, Inc.’s (“MHEG”) Acquisitions Managers to close equity investments in multifamily residential real estate developments (“Operating Partnerships”) financed with federal Low Income Housing Tax Credits (“LIHTC”). This person leads the due diligence collection/review process and keeps our investments on track for timely closing. The Closing Manager also plays a critical role developing and maintaining MHEG’s relationships with our developer partners.
MHEG - Financial Analyst (Omaha, NE)
Responsible for helping asset manage MHEG investments in multiple affordable housing developments financed with LIHTCs. This individual works with affordable housing developers, property managers and accounting firms. The Financial Analyst handles the intake and review of Operating Partnership financial reporting, and supports Asset Managers in their role of improving the financial, operational and physical health of our investments. This individual also helps foster strong relationships with our various partners. 1
Volume 13, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann Greetings Friends! As we freeze our way through the first two months of 2021, I look back on 2020 and all that we overcame and accomplished. For me, 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 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! Some quick 2020 highlights: 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
Scott Fitzpatrick 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 back at 2020, it was certainly a different year. Without in-person meetings or travel to state housing conferences, we learned the etiquette of zoom calls and still found a way to get housing built. As a vaccine becomes reality and it looks like life will to get back to normal, I’m anxious to get back out traveling to see everyone again.
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.
I’d also like to touch on some exciting things happening in the Iowa legislature regarding affordable housing. The Iowa Governor, Kim I look forward to 2021 and partnering with you again for another Reynolds, has introduced a very ambitious agenda to promote successful year of providing safe, quality affordable housing. housing in Iowa. There is currently legislation pending that will Please reach out if I can assist you in anyway. increase funding for the state housing trust funds, enhance the Workforce Housing Credit and a new state tax credit to be called the Iowa Housing Tax Credit program.
In closing, thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials for living the MHEG mission of Changing Lives For A Better Tomorrow. 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. All the best, John Wiechmann
Central Region Update Pat Michaelis Hope everyone is doing well in these unprecedented times. After COVID is under control and warmer weather arrives, I am looking forward to a return to normal, whatever that may be. That said, we had an excellent 2020 in the Central Region. On the investor side, we welcomed back First National Bank of Hutchinson, and new investors Community National Bank of Chanute and SFC Bank of Springfield. They joined repeat investors Capital Federal Savings Bank (Topeka), UMB Bank ( KCM). Commerce Bank (KCM), INTRUST Bank (Wichita), Bank of Hays, Fidelity Bank (Wichita), and Landmark Bank (Manhattan). MHEG is like a bank in that we need investors (depositors) and developers to build affordable housing (loans). Thank you for your investment and trust in MHEG. We placed $57,507,968 in equity in 12 developments in KS and MO. It is especially meaningful that we are providing safe and affordable housing to so many during these extraordinary times. We are getting started on 2021. MHEG Fund 54 is being finalized at this time. Missouri awards were announced in December. Kansas is in the application phase with awards to be announced in July. I expect another strong year in the Central Region. Regionally, there were some significant changes. KHRC welcomed Alissa Ice as Director of Housing Development, replacing Fred Bentley. Alissa brings a new perspective and energy to the position. We are pleased to be working with her. As previously reported Ryan Vincent was named Executive Director of KHRC. I want to give a shot out to Ryan for connecting with Lt. Governor David Tolland to coordinate affordable housing in Kansas. I have always felt it extremely important to connect Kansas economic development with KHRC. Missouri has had state and federal LIHTC to work with for many years. Three years ago the state credits were stopped by the Missouri Governor. They have been reinstated for 2021 at 70% of the federal LIHTC’s awards which will provide more affordable housing in the state. Brad, Brooke, Lisa and I are here to help you with your LIHTC needs. Please call if we can help. The Central Region staff and the entire MHEG team thank you for your support and confidence. All the best. 2
March 2021
This legislation will add much needed additional resources to promote affordable housing within the state. The bills are S.F 295 and H.S.B. 178., please reach out to your local elected officials and request their support. We at MHEG cannot emphasize enough the importance to reach out to your local representatives.
Northwest Region Update Tom Stratman
2020, what a year! Despite all the challenges we had a great year in Nebraska, South Dakota, and Colorado. Working with our great partners we were able to invest in 15 developments, creating nearly 550 units in these states. Creating over 550 homes in a year when we saw how desperately people need safe, affordable housing is something we can all be proud of. Thanks to our partners who allowed us to be a part of such a great accomplishment. Last year we also welcomed new team members as we prepared to say farewell to others. Tyler Arens joined the MHEG team in March. Tyler lives in Sioux Falls and brings years of experience in affordable housing development. Deb Holcomb joined MHEG in August in the Compliance Department. We also welcomed Karen Boyd to MHEG in October. Karen has a background in risk management and is in Omaha helping the Asset Management and Acquisitions teams. We welcomed Tyler, Deb and Karen as we said farewell to Cindy Koster. Cindy has been with MHEG for 17 years and retired at the beginning of February. We can’t thank Cindy enough for all she has done for MHEG. Her knowledge and passion for her job will truly be missed. We hope our partners have a chance to meet and welcome Tyler and Karen very soon. We look forward to working with all our partners again in 2021 (and hopefully seeing you all in person!).
Construction is underway on The Row Fremont. Developed by Hoppe & Son, LLC, this development will provide 25 multifamily units in Fremont, NE
South Region Update Andrea Frymire
Thank you to all of our partners for a busy and successful 2020! Despite a pandemic, we closed 9 deals in the Southern Region and deployed $60M in equity for Arkansas, Oklahoma and Texas. We are excited to bring affordable housing to Rogers and Little Rock in Arkansas; Durant, Glenpool, Guymon, Newcastle, Pauls Valley and Stilwell in Oklahoma; and Tyler and Wolfforth in Texas. I thought all the trials of 2020 were behind us until Oklahoma was hit with a massive snowstorm in February. Now that we’ve dug out from that, hopefully we are back on track for vaccines and kids going back to school! My daughter and I just recently received our first dose of the vaccine so we are ready to get back to normal.
With the new year comes the new pipeline of developments. Thank you for trusting us with your syndication letters for application. We appreciate the opportunity to work with you in the new year. It will be a busy summer with awards coming in from Oklahoma, Texas and Arkansas between May and August. We look forward to award season which begins in May in Oklahoma. We wish all of our partners the best of luck on their pending applications. Please do not hesitate to contact me if I may be of assistance. I hope we all get to meet in person at some point this year. It is a pleasure working with each and every one of you! 3
Volume 13, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
CEO Update
Northeast Region Update
John Wiechmann Greetings Friends! As we freeze our way through the first two months of 2021, I look back on 2020 and all that we overcame and accomplished. For me, 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 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! Some quick 2020 highlights: 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
Scott Fitzpatrick 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 back at 2020, it was certainly a different year. Without in-person meetings or travel to state housing conferences, we learned the etiquette of zoom calls and still found a way to get housing built. As a vaccine becomes reality and it looks like life will to get back to normal, I’m anxious to get back out traveling to see everyone again.
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.
I’d also like to touch on some exciting things happening in the Iowa legislature regarding affordable housing. The Iowa Governor, Kim I look forward to 2021 and partnering with you again for another Reynolds, has introduced a very ambitious agenda to promote successful year of providing safe, quality affordable housing. housing in Iowa. There is currently legislation pending that will Please reach out if I can assist you in anyway. increase funding for the state housing trust funds, enhance the Workforce Housing Credit and a new state tax credit to be called the Iowa Housing Tax Credit program.
In closing, thank you to all of our volunteer leaders, investors, developers, property managers, financing partners and government officials for living the MHEG mission of Changing Lives For A Better Tomorrow. 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. All the best, John Wiechmann
Central Region Update Pat Michaelis Hope everyone is doing well in these unprecedented times. After COVID is under control and warmer weather arrives, I am looking forward to a return to normal, whatever that may be. That said, we had an excellent 2020 in the Central Region. On the investor side, we welcomed back First National Bank of Hutchinson, and new investors Community National Bank of Chanute and SFC Bank of Springfield. They joined repeat investors Capital Federal Savings Bank (Topeka), UMB Bank ( KCM). Commerce Bank (KCM), INTRUST Bank (Wichita), Bank of Hays, Fidelity Bank (Wichita), and Landmark Bank (Manhattan). MHEG is like a bank in that we need investors (depositors) and developers to build affordable housing (loans). Thank you for your investment and trust in MHEG. We placed $57,507,968 in equity in 12 developments in KS and MO. It is especially meaningful that we are providing safe and affordable housing to so many during these extraordinary times. We are getting started on 2021. MHEG Fund 54 is being finalized at this time. Missouri awards were announced in December. Kansas is in the application phase with awards to be announced in July. I expect another strong year in the Central Region. Regionally, there were some significant changes. KHRC welcomed Alissa Ice as Director of Housing Development, replacing Fred Bentley. Alissa brings a new perspective and energy to the position. We are pleased to be working with her. As previously reported Ryan Vincent was named Executive Director of KHRC. I want to give a shot out to Ryan for connecting with Lt. Governor David Tolland to coordinate affordable housing in Kansas. I have always felt it extremely important to connect Kansas economic development with KHRC. Missouri has had state and federal LIHTC to work with for many years. Three years ago the state credits were stopped by the Missouri Governor. They have been reinstated for 2021 at 70% of the federal LIHTC’s awards which will provide more affordable housing in the state. Brad, Brooke, Lisa and I are here to help you with your LIHTC needs. Please call if we can help. The Central Region staff and the entire MHEG team thank you for your support and confidence. All the best. 2
March 2021
This legislation will add much needed additional resources to promote affordable housing within the state. The bills are S.F 295 and H.S.B. 178., please reach out to your local elected officials and request their support. We at MHEG cannot emphasize enough the importance to reach out to your local representatives.
Northwest Region Update Tom Stratman
2020, what a year! Despite all the challenges we had a great year in Nebraska, South Dakota, and Colorado. Working with our great partners we were able to invest in 15 developments, creating nearly 550 units in these states. Creating over 550 homes in a year when we saw how desperately people need safe, affordable housing is something we can all be proud of. Thanks to our partners who allowed us to be a part of such a great accomplishment. Last year we also welcomed new team members as we prepared to say farewell to others. Tyler Arens joined the MHEG team in March. Tyler lives in Sioux Falls and brings years of experience in affordable housing development. Deb Holcomb joined MHEG in August in the Compliance Department. We also welcomed Karen Boyd to MHEG in October. Karen has a background in risk management and is in Omaha helping the Asset Management and Acquisitions teams. We welcomed Tyler, Deb and Karen as we said farewell to Cindy Koster. Cindy has been with MHEG for 17 years and retired at the beginning of February. We can’t thank Cindy enough for all she has done for MHEG. Her knowledge and passion for her job will truly be missed. We hope our partners have a chance to meet and welcome Tyler and Karen very soon. We look forward to working with all our partners again in 2021 (and hopefully seeing you all in person!).
Construction is underway on The Row Fremont. Developed by Hoppe & Son, LLC, this development will provide 25 multifamily units in Fremont, NE
South Region Update Andrea Frymire
Thank you to all of our partners for a busy and successful 2020! Despite a pandemic, we closed 9 deals in the Southern Region and deployed $60M in equity for Arkansas, Oklahoma and Texas. We are excited to bring affordable housing to Rogers and Little Rock in Arkansas; Durant, Glenpool, Guymon, Newcastle, Pauls Valley and Stilwell in Oklahoma; and Tyler and Wolfforth in Texas. I thought all the trials of 2020 were behind us until Oklahoma was hit with a massive snowstorm in February. Now that we’ve dug out from that, hopefully we are back on track for vaccines and kids going back to school! My daughter and I just recently received our first dose of the vaccine so we are ready to get back to normal.
With the new year comes the new pipeline of developments. Thank you for trusting us with your syndication letters for application. We appreciate the opportunity to work with you in the new year. It will be a busy summer with awards coming in from Oklahoma, Texas and Arkansas between May and August. We look forward to award season which begins in May in Oklahoma. We wish all of our partners the best of luck on their pending applications. Please do not hesitate to contact me if I may be of assistance. I hope we all get to meet in person at some point this year. It is a pleasure working with each and every one of you! 3
Volume 13, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
Government Affairs Update
Closed Acquisitions
Joshua Yurek
I want to start by highlighting our successes from last year. As mentioned on page 1, the Affordable Housing Tax Credit Coalition announced that Victory Park Veterans Residence in Lincoln, Nebraska, was selected as a recipient of the Charles L. Edson Tax Credit Award, which recognizes the best in affordable housing. MHEG and our partners at Burlington Capital received congratulatory videos from U.S. Senator Deb Fischer (R-NE) and Rep. Don Bacon (R-NE-2). The Victory Park development by Burlington Capital and syndicated by MHEG, provides 70 units of affordable housing for low-income veterans on the VA Historical Campus in Lincoln. Additionally, the bipartisan legislative package that was signed into law in December 2020 contained significant victories for affordable housing, including a permanent minimum 4 percent Housing Credit rate, a key provision from the Affordable Housing Credit Improvement Act (AHCIA). This provision is estimated to finance an additional 130,000 affordable homes over the next decade. The package also included $25 billion in emergency rental assistance, as well as additional Housing Credit allocations for areas impacted by disasters in 2020, including Iowa. While we are grateful for this increased investment, there is still more work to be done. As the 117th Congress kicked-off in January, the Senate shifted to Democratic control. After the inauguration of President Joe Biden, Democrats have unified government control, albeit with slim majorities in both the House and Senate. The Senate will be evenly divided, with Vice President Kamala Harris breaking any tied votes. Additionally, within the MHEG footprint, we have new Representatives in several states, including Colorado, Iowa, Kansas, Missouri, Oklahoma, and Texas, as well as new Senators in Colorado (Senator Hickenlooper) and Kansas (Senator Marshall). With a new Congress, Senator Ron Wyden (D-OR), an affordable housing champion, will become Chairman of the Senate Finance Committee, while Senator Mike Crapo (R-ID), also a supporter of the Housing Credit, will serve as Ranking Member. Senators Warren (DMA) and Barrasso (R-WY) have been added to the Senate Finance Committee. Within our footprint, Senators Bennet (D-CO), Grassley (R-IA), Cornyn (R-TX), Thune (R-SD), Lankford (R-OK) and Sasse (R-NE) continue to serve on the Committee. The House Ways and Means Committee has four new members, including Rep. Kevin Hern (R-OK-1). Rep. Adrian Smith (R-NE-3), Rep. Jason Smith (R-
March 2021
MO-8), Rep. Jodey Arrington (R-TX-19) and Rep. Ron Estes (R-KS-4) continue to serve on the Committee. Both Committees have primary jurisdiction over the Housing Credit. Immediately following his inauguration, President Biden and Democratic leadership in Congress committed to passing additional COVID-19 relief legislation before current unemployment benefits expire on March 14. Last week, the House passed the COVID-19 relief package, based on President Biden’s $1.9 trillion American Rescue Plan, and then sent it to the Senate for consideration. As currently drafted, the package includes $19 billion for emergency rental and utility assistance and additional $1,400 direct stimulus checks, among other relief provisions. It would also increase temporary federal unemployment benefits from $300 to $400 per week through August 29, 2021. Since congressional leaders are using the budget reconciliation process to pass the COVID-19 relief package, Democrats can pass the legislation without Republican support. Budget reconciliation allows the majority party to bypass filibuster rules, and instead pass the legislation with a simple majority instead of the 60 votes usually required in the Senate. Once COVID-19 relief legislation is complete, attention will turn to President Biden’s Build Back Better plan, and its focus on infrastructure. We are optimistic that the recovery package will offer opportunities to deliver additional affordable housing resources. In the coming weeks, we expect our Housing Credit champions in the Senate and House to reintroduce the Affordable Housing Credit Improvement Act. While members are finalizing the legislation to expand and strengthen the Housing Credit, I cannot stress enough the value of building and strengthening relationships with Congressional offices as we move toward reintroduction of the AHCIA. One of the reasons we were successful last year was due to robust bipartisan support. After reintroduction, ensuring strong cosponsorship will once again be a top priority.
LIHTC DEVELOPMENTS
FUND
CITY / STATE
NewView Place I LLC
UMBKC CF I
Kansas City, MO
66
December
FH Hortheastview LLC
Wisner, NE
10
December
Foundations Development, L.L.C.
Fremont, NE
20
December
Mesner Development Co
Grand Island, NE
60
December
Dana Point Development Corp
Wisner Crown, LLC
MHEG 51
Hidden Brook Townhomes II, LLC MCoy Meadows, LP
MHEG 2020 MHEG 50
The Mill Apartments, LLLP
BOTW CF I
Wornall Estates Investor Partner LP
UMBKC CF I
UNITS DATE
DEVELOPER
Fraser, CO
60
December
Grand Park Homes LLC
Kansas City, MO
30
December
Yarco Development
Saddle Ridge Trails, LLC
MHEG 52
Guymon, OK
40
December
LW Development
Bethel Ridge 64, LLC
MHEG 52
Kansas City, KS
63
December
Fulson Group
OPG Laurel Flats Partners LLC
MHEG 52
Tyler, TX
89
December
Overland Property Group
The Row Fremont, LP
MHEG 52
Fremont, NE
25
December
Hoppe & Son, LLC
2315 S 15th Street LLC
MHEG 52
Omaha, NE
15
December
Foundations Development, L.L.C.
Doling Landing LP
MHEG 52
Springfield, MO
24
December
Raga Properties
Stilwell, OK
40
December
Green Companies Development Group
Glenpool, KS
76
January
Red-Wood Development, Inc.
Stilwell Wisdom Keepers, L.P. Glenpool Ridge, LP
BFCF I MHEG 52
Total Units Closed December - February
618
Property Spotlight: Victory Apartments II - Omaha, NE Burlington Capital held a grand opening for Victory Apartments II on September 18, 2020, in Omaha, Nebraska. To celebrate the occasion, General (Retired) John F. Kelly was the keynote speaker at the event.
Victory Apartments, II - Omaha, LLC General Partner
Victory Apartments, II - Omaha GP, LLC
Developer
Burlington Capital Real Estate LLC
Property Manager
Burlington Capital Properties, LLC
The building, a former part of Grace University, was renovated Gross Equity Invested $5.5 million into 60 studio and one-bedroom apartments for homeless and at-risk veterans, and are supported by HUD-VASH housing vouchers. The residents will enjoy amenities such as a community gathering space, laundry facilities, gymnasium and fitness center, restored grounds and landscaping. Residents will also have access to on-site services such as counseling, health and wellness, and job training. Victory II is the third property Burlington Capital has created for veterans who are at or below 50% of the area median income. Founded in 1984 by Michael B. Yanney, Burlington Capital is an Omaha-based investment firm. Burlington Capital creates and pursues innovative business ventures through its experience, knowledge and relationships in the areas of multifamily real estate, international agribusiness and financial services.
MHDF Update Lara Huskey
MHDF closed over $18 million in new loans in 2020. MHDF loans are helping LIHTC developers finance workforce rental housing in Schuyler, David City and Lexington, Nebraska. The first MHDF workforce housing loan in Schuyler has successfully sold seven of the eight homes. MHDF received two grants from the U.S. Treasury CDFI Fund totaling $1.3 million for the Loan Fund. MHDF also received $30,000 from the DED Nebraska Affordable Housing Trust Fund for technical assistance to MHDF and Partners on how to identify and prepare buildable lots for housing in Nebraska Congressional Districts 1 and 2 (Omaha, Bellevue, Lincoln, Nebraska City, Blair, Fremont, etc.). We look forward to another successful and busy year. If you have a moment, please visit our newly updated website: www.mhdfinc.com.
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Volume 13, Issue 1
Keeping you up to date on MHEG in just a minute’s time.
Government Affairs Update
Closed Acquisitions
Joshua Yurek
I want to start by highlighting our successes from last year. As mentioned on page 1, the Affordable Housing Tax Credit Coalition announced that Victory Park Veterans Residence in Lincoln, Nebraska, was selected as a recipient of the Charles L. Edson Tax Credit Award, which recognizes the best in affordable housing. MHEG and our partners at Burlington Capital received congratulatory videos from U.S. Senator Deb Fischer (R-NE) and Rep. Don Bacon (R-NE-2). The Victory Park development by Burlington Capital and syndicated by MHEG, provides 70 units of affordable housing for low-income veterans on the VA Historical Campus in Lincoln. Additionally, the bipartisan legislative package that was signed into law in December 2020 contained significant victories for affordable housing, including a permanent minimum 4 percent Housing Credit rate, a key provision from the Affordable Housing Credit Improvement Act (AHCIA). This provision is estimated to finance an additional 130,000 affordable homes over the next decade. The package also included $25 billion in emergency rental assistance, as well as additional Housing Credit allocations for areas impacted by disasters in 2020, including Iowa. While we are grateful for this increased investment, there is still more work to be done. As the 117th Congress kicked-off in January, the Senate shifted to Democratic control. After the inauguration of President Joe Biden, Democrats have unified government control, albeit with slim majorities in both the House and Senate. The Senate will be evenly divided, with Vice President Kamala Harris breaking any tied votes. Additionally, within the MHEG footprint, we have new Representatives in several states, including Colorado, Iowa, Kansas, Missouri, Oklahoma, and Texas, as well as new Senators in Colorado (Senator Hickenlooper) and Kansas (Senator Marshall). With a new Congress, Senator Ron Wyden (D-OR), an affordable housing champion, will become Chairman of the Senate Finance Committee, while Senator Mike Crapo (R-ID), also a supporter of the Housing Credit, will serve as Ranking Member. Senators Warren (DMA) and Barrasso (R-WY) have been added to the Senate Finance Committee. Within our footprint, Senators Bennet (D-CO), Grassley (R-IA), Cornyn (R-TX), Thune (R-SD), Lankford (R-OK) and Sasse (R-NE) continue to serve on the Committee. The House Ways and Means Committee has four new members, including Rep. Kevin Hern (R-OK-1). Rep. Adrian Smith (R-NE-3), Rep. Jason Smith (R-
March 2021
MO-8), Rep. Jodey Arrington (R-TX-19) and Rep. Ron Estes (R-KS-4) continue to serve on the Committee. Both Committees have primary jurisdiction over the Housing Credit. Immediately following his inauguration, President Biden and Democratic leadership in Congress committed to passing additional COVID-19 relief legislation before current unemployment benefits expire on March 14. Last week, the House passed the COVID-19 relief package, based on President Biden’s $1.9 trillion American Rescue Plan, and then sent it to the Senate for consideration. As currently drafted, the package includes $19 billion for emergency rental and utility assistance and additional $1,400 direct stimulus checks, among other relief provisions. It would also increase temporary federal unemployment benefits from $300 to $400 per week through August 29, 2021. Since congressional leaders are using the budget reconciliation process to pass the COVID-19 relief package, Democrats can pass the legislation without Republican support. Budget reconciliation allows the majority party to bypass filibuster rules, and instead pass the legislation with a simple majority instead of the 60 votes usually required in the Senate. Once COVID-19 relief legislation is complete, attention will turn to President Biden’s Build Back Better plan, and its focus on infrastructure. We are optimistic that the recovery package will offer opportunities to deliver additional affordable housing resources. In the coming weeks, we expect our Housing Credit champions in the Senate and House to reintroduce the Affordable Housing Credit Improvement Act. While members are finalizing the legislation to expand and strengthen the Housing Credit, I cannot stress enough the value of building and strengthening relationships with Congressional offices as we move toward reintroduction of the AHCIA. One of the reasons we were successful last year was due to robust bipartisan support. After reintroduction, ensuring strong cosponsorship will once again be a top priority.
LIHTC DEVELOPMENTS
FUND
CITY / STATE
NewView Place I LLC
UMBKC CF I
Kansas City, MO
66
December
FH Hortheastview LLC
Wisner, NE
10
December
Foundations Development, L.L.C.
Fremont, NE
20
December
Mesner Development Co
Grand Island, NE
60
December
Dana Point Development Corp
Wisner Crown, LLC
MHEG 51
Hidden Brook Townhomes II, LLC MCoy Meadows, LP
MHEG 2020 MHEG 50
The Mill Apartments, LLLP
BOTW CF I
Wornall Estates Investor Partner LP
UMBKC CF I
UNITS DATE
DEVELOPER
Fraser, CO
60
December
Grand Park Homes LLC
Kansas City, MO
30
December
Yarco Development
Saddle Ridge Trails, LLC
MHEG 52
Guymon, OK
40
December
LW Development
Bethel Ridge 64, LLC
MHEG 52
Kansas City, KS
63
December
Fulson Group
OPG Laurel Flats Partners LLC
MHEG 52
Tyler, TX
89
December
Overland Property Group
The Row Fremont, LP
MHEG 52
Fremont, NE
25
December
Hoppe & Son, LLC
2315 S 15th Street LLC
MHEG 52
Omaha, NE
15
December
Foundations Development, L.L.C.
Doling Landing LP
MHEG 52
Springfield, MO
24
December
Raga Properties
Stilwell, OK
40
December
Green Companies Development Group
Glenpool, KS
76
January
Red-Wood Development, Inc.
Stilwell Wisdom Keepers, L.P. Glenpool Ridge, LP
BFCF I MHEG 52
Total Units Closed December - February
618
Property Spotlight: Victory Apartments II - Omaha, NE Burlington Capital held a grand opening for Victory Apartments II on September 18, 2020, in Omaha, Nebraska. To celebrate the occasion, General (Retired) John F. Kelly was the keynote speaker at the event.
Victory Apartments, II - Omaha, LLC General Partner
Victory Apartments, II - Omaha GP, LLC
Developer
Burlington Capital Real Estate LLC
Property Manager
Burlington Capital Properties, LLC
The building, a former part of Grace University, was renovated Gross Equity Invested $5.5 million into 60 studio and one-bedroom apartments for homeless and at-risk veterans, and are supported by HUD-VASH housing vouchers. The residents will enjoy amenities such as a community gathering space, laundry facilities, gymnasium and fitness center, restored grounds and landscaping. Residents will also have access to on-site services such as counseling, health and wellness, and job training. Victory II is the third property Burlington Capital has created for veterans who are at or below 50% of the area median income. Founded in 1984 by Michael B. Yanney, Burlington Capital is an Omaha-based investment firm. Burlington Capital creates and pursues innovative business ventures through its experience, knowledge and relationships in the areas of multifamily real estate, international agribusiness and financial services.
MHDF Update Lara Huskey
MHDF closed over $18 million in new loans in 2020. MHDF loans are helping LIHTC developers finance workforce rental housing in Schuyler, David City and Lexington, Nebraska. The first MHDF workforce housing loan in Schuyler has successfully sold seven of the eight homes. MHDF received two grants from the U.S. Treasury CDFI Fund totaling $1.3 million for the Loan Fund. MHDF also received $30,000 from the DED Nebraska Affordable Housing Trust Fund for technical assistance to MHDF and Partners on how to identify and prepare buildable lots for housing in Nebraska Congressional Districts 1 and 2 (Omaha, Bellevue, Lincoln, Nebraska City, Blair, Fremont, etc.). We look forward to another successful and busy year. If you have a moment, please visit our newly updated website: www.mhdfinc.com.
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Volume 13, Issue 1
March 2021
Staff Announcements Tyler Arens, Acquisitions Manager
MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time.
Tyler Arens joined MHEG as an Acquisitions Manager in 2020 and works from our Sioux Falls office. He is responsible for underwriting equity investments in affordable housing developments financed with tax credits in compliance with MHEG’s processes, procedures and credit standards. He works with MHEG management, affordable housing developers, lenders, state Housing Finance Agencies and other government agencies to close our investments into operating partnerships. He was previously Housing Development Director for Affordable Housing Solutions. Tyler is a graduate from the University of Iowa with a B.A. in Economics.
Deb Holcomb, Compliance Specialist
Volume 13, Issue 1
March 2021
Victory Park Veterans Residence Receives Edson Award Inside this Issue:
Deb joined MHEG as a Compliance Specialist during the summer of 2020 in our Omaha office. Her duties will include monitoring the initial lease-up of new properties as well as monitoring existing MHEG properties for the compliance period ensuring that residents of the affordable housing developments comply with all rent, income and other regulatory restrictions applicable to each property. Deb has over 25+ years of affordable housing experience from various roles, including positions at Excel Development Group, NIFA and most recently with Liberty Property Management Company.
Recent Highlights
1
CEO Update
2
Region Updates
2, 3
Government Affairs Update 4
Karen Boyd, Closing/Risk Manager
MHDF Update
4
Karen joined MHEG as a Closing/Risk Manager this past fall in our Omaha office. She will work closely with both the Acquisitions Managers and Asset Managers. Her duties will include collecting and reviewing due diligence to ensure a timely closing of our investments, as well as collecting and analyzing all of our operating partnerships’ insurance policies. Karen has over 15+ years of paralegal experience and several years of experience with risk management and internal auditing. Prior to MHEG, she worked at Mutual of Omaha Insurance Company and Abrahams Kaslow & Cassman LLP. Karen received a B.S. in Criminal Justice from the University of Nebraska at Omaha and is currently pursuing her Master of Business Administration through Midland University’s Dunklau School of Business.
Closed Acquisitions
5
Property Spotlight
5
Staff Updates
6
Upcoming Events
6
MHDF
Portfolio Update
Paula Rhian, Loan Administrator Paula joined MHDF as a Loan Administrator during the first quarter of 2020. She is responsible for managing the day to day loan administration functions of MHDF. Her duties include loan documentation, credit administration, reporting, as well as assisting with MHDF marketing and external communications. She has over 15+ years of affordable housing experience from various roles, including positions at DED, Excel Development Group, and most recently with Horizon Bank. Paula received her Bacehlor’s degree from Nebraska Wesleyan University.
Developments Units
627 20,497
Counties Represented
221
Cities Represented
279
Vacancy Percentage
5.66%*
Debt Coverage Ratio
1.83*
Information current as of 2/15/21 *Data compiled from 12/31/20 figures using stabilized developments only, vacancy percentage is using economic vacancy.
Upcoming Events March
April
May
IFA Board Meeting: May 5th Des Moines, IA - IFA Office
June
KHRC Board Meeting: Apr. 1st Topeka, KS - KDFA Board Room
KHRC Board Meeting: Mar. 4th Topeka, KS - KDFA Board Room
IFA Board Meeting: Apr. 7th Des Moines, IA - IFA Office
KHRC Board Meeting: May 6th Topeka, KS - KDFA Board Room
KHRC Board Meeting: Jun. 3rd Topeka, KS - KDFA Board Room
SDHDA Board Meeting: Mar. 9th Pierre, SD - SDHDA Board Room
TDHCA Board Meeting: Apr. 8th Austin, TX - Capitol Extension Auditorium
TDHCA Board Meeting: May 13th Austin, TX - Capitol Extension Auditorium
NIFA Board Meeting: Jun. 18th Lincoln, NE - NIFA Board Room
IFA Board Meeting: Mar. 3rd Des Moines, IA - IFA Office
TDHCA Board Meeting: Mar. 11th Austin, TX - Capitol Extension Auditorium OHFA Board Meeting: Mar. 17th Oklahoma City, OK - OHFA Office
NIFA Board Meeting: Apr. 16th Lincoln, NE - NIFA Board Room
OHFA Board Meeting: May 26th Oklahoma City, OK - OHFA Office
CHFA Board Meeting: Apr. 22nd Denver, CO - CHFA Board Room
CHFA Board Meeting: May 27th Denver, CO - CHFA Board Room
IFA Board Meeting: Jun. 2nd Des Moines, IA - IFA Office
Last August, the Victory Park Veterans Residence received the Charles L. Edson Tax Credit Excellence Award and has been recognized as one of the nation’s outstanding affordable apartment projects developed with low-income housing tax credits. Announced each year by the Affordable Housing Tax Credit Coalition (AHTCC), the award honors LIHTC developments that are strengthening communities, improving residents’ health and boosting economies in urban, suburban and rural areas across the country. Victory Park, developed and managed by Burlington Capital, provides 70 new affordable homes for very low-income veterans of the United States Armed Forces. It is located on the beautiful 58-acre VA Historical Campus in Lincoln, which includes a VA hospital, providing residents with nearby access to health services in addition to services provided on-site. Victory Park was invested in by MHEG Fund 46 LP. In a congratulatory video, Senator Deb Fischer (R-NE) stated, “I would just like to congratulate Victory Park for the service they provide for our veterans,” calling the Edson award “one more way we can thank our veterans for their service and sacrifice that they have given to our country. Thank you to our veterans and congratulations to Victory Park.” HUD estimates that approximately 60,000 Veterans are without appropriate shelter on any given night, and that 1.4 million Veterans are at risk of homelessness due to poverty, lack of support networks, and dismal living conditions in substandard housing. MHEG is proud to partner with Burlington Capital on this exceptional development.
Koster Retires It is with bittersweetness that we announce the retirement of Cindy Koster. Her last day was February 5th, 2021. Cindy has been with MHEG for over 17 years and has been an invaluable asset to our company. She started in October 2003 as a Development Associate, eventually becoming a Senior Acquisitions Manager. She trained many members of the Acquisitions department but was always available to share her vast knowledge of LIHTC to all employees at MHEG. Her expertise and dedication will be greatly missed. Prior to MHEG, Cindy worked for a developer with a combined service of almost 25 years in the affordable housing industry. We thank her for her many years of service that she has dedicated to housing and development.
Unfortunately, due to current restrictions, we were unable to host a retirement celebration for Cindy. If you have any kind words you would like to share, please email them to kmcaleer@mheginc.com and we will pass them along.
We’re Hiring!! MHEG is looking to add to our team! For complete job descriptions and requirements, visit our website’s Employment page. To apply, email your resume to Keely McAleer.
MHEG - Closing Manager (Omaha, NE)
CHFA Board Meeting: Jun. 24th Denver, CO - CHFA Board Room
If you would like to receive our newsletter, go to our homepage to sign-up or email kmcaleer@mheginc.com to be added to the list. For past issues of MHEG in a Minute check our website under News & Events.
NIFA Board Meeting: Mar. 19th Lincoln, NE - NIFA Board Room CHFA Board Meeting: Mar. 25th Denver, CO - CHFA Board Room 6
Cindy Koster (right) and Candace Gregory during a celebration for MHEG’s 300th Acquisition in October 2011.
The Closing Manager works closely with Midwest Housing Equity Group, Inc.’s (“MHEG”) Acquisitions Managers to close equity investments in multifamily residential real estate developments (“Operating Partnerships”) financed with federal Low Income Housing Tax Credits (“LIHTC”). This person leads the due diligence collection/review process and keeps our investments on track for timely closing. The Closing Manager also plays a critical role developing and maintaining MHEG’s relationships with our developer partners.
MHEG - Financial Analyst (Omaha, NE)
Responsible for helping asset manage MHEG investments in multiple affordable housing developments financed with LIHTCs. This individual works with affordable housing developers, property managers and accounting firms. The Financial Analyst handles the intake and review of Operating Partnership financial reporting, and supports Asset Managers in their role of improving the financial, operational and physical health of our investments. This individual also helps foster strong relationships with our various partners. 1