Staff - Additions Recent Staff Additions Jennifer Deason - MHDF, Loan Closing Specialist
Content
Jennifer joined MHDF as a Loan Closing Specialist in August 2023. Her duties will include managing the day-to-day loan closing and reporting functions of MHDF. Jennifer has over 10+ years of customer service experience and 3+ years in loan processing/closing positions. She most recently worked as a Small Business Loan Closing Coordinator for Aegis Investment Group. Jennifer will work remotely from her home in the St. Louis area.
CEO Message & Recent Happenings
P1
MHEG & MHDF Updates
P2
Property & Resident Spotlight
P4
Staff - Additions
P5
Portfolio Update
P5
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© Midwest Housing Equity Group
Portfolio Updates Q4 2023 Developments
Location
Units
Date
MHEG 56
Central City, NE
16
OCT
Portland Place Apartments, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 55
Edmond, OK
180
OCT
CSV, LP Developed by: AMD Partners, LLC
MHEG 55
Crete, NE
30
OCT
OPG Heritage at Abilene Partners, LLC Developed by: Overland Property Group
MHEG 54
Abilene, TX
29
NOV
State Street Villas, LLC Developed by: Mesner Development Co.
MHEG 56
Grand Island, NE
20
NOV
Lindenwoods IV, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 56
Durant, OK
24
NOV
Lindenwoods V, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 56
Durant, OK
16
NOV
Avalon at Oklahoma City Phase I, LP Developed by: Domera Development, LLC
MHEG 57
Oklahoma City, OK
41
NOV
Avalon at Oklahoma City Phase II, LP Developed by: Domera Development, LLC
MHEG 56
Oklahoma City, OK
40
NOV
41 Paseo East LLC Developed by: Swope Community Builders/Community Builders of Kansas City
MHEG 55
Kansas City, MO
54
DEC
Garner Villas, LP Developed by: Housing Plus, LLC
MHEG 57
West Plains, MO
48
DEC
Osborn PSH LLLP Developed by: TC Developer LLC
MHEG 56
Rocky Ford, CO
30
DEC
The T OKC III, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 56
Oklahoma City, OK
18
DEC
Lindenwoods Phase VI, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 55
Durant, OK
24
DEC
Avenue 25 Villas, LLC Developed by: Mesner Development Co.
Fund
Total Units Closed between October and December 2023
570
Total Units Closed in 2023
1,970
MHEG Portfolio as of 12/2023 Developments
754
Units
26,016
Counties Represented
252
Cities Represented
322
Vacancy Percentage
5.68%*
Debt Coverage Ratio
1.68*
*Data compiled from 9/30/23 figures using stabilized developments only, vacancy percentage is using economic vacancy.
MHEG in a Minute l P5
MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. l Winter 2023
CEO Message & Recent Happenings
MHEG & MHDF Updates
Changing Lives in 2023! John Wiechmann, CEO
30 Years of Changing Lives
Season’s Greetings Friends! As I reflect on 2023, a milestone year for MHEG, I am sincerely grateful to be a part of such a great company. I had the opportunity to travel our footprint this year and attend many of the state appreciation dinners/luncheons. I really enjoy meeting with our partners in person. We wouldn’t be celebrating 30 years without your trust and confidence. Check out our 30-year stats on page 2 – I am humbled by what you’ve let us accomplish over the years. This fall we recognized and thanked one of our long-time service leaders, Dennis Brand, for his 12 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 Dennis and all our Board members give to MHEG, and affordable housing, is something we truly appreciate. Best wishes on your next adventure Dennis! I would also like to recognize two new leaders that have joined our Board of Directors, Gregg Yeutter and Kevin Lawrence. Gregg has been actively involved in the low-income housing tax credit arena since the inception of the LIHTC program in 1986. He also has extensive experience in closing historic rehabilitation tax credit, renewable energy tax credit and new markets tax credit transactions across the country. Gregg is Of Counsel for Kutak Rock LLP. Kevin has served as the Chief Financial Officer of BancFirst Corp. since 2013. Prior to his role as CFO, Kevin worked in public accounting, primarily with Ernst & Young, LLP. I am grateful that both have decided to give their time and talent to MHEG. Thank you also to our many other partners, investors, developers, general partners, property managers, financing partners and government officials. Last but certainly not least, I want to recognize our awesome team! Between MHEG and Midwest Housing Development Fund, we have almost 60 individuals working hard every day to provide more affordable housing. I am proud of their dedication to our mission and values. Together with you, we’re Changing Lives For A Better Tomorrow! With gratitude, we look forward to the next 30 years of shared success. See you all in ’24. Until then, Happy New Year! John Wiechmann
Recent Happenings Groundbreakings and Ribbon Cuttings
64%
43% multifamily age restricted single family special needs
In 2023, MHEG celebrated 30 years of Changing Lives. Over the past three decades we have deployed over $3 billion of investor capital into 750+ developments, helping create more than 26,000 units of safe, decent, and affordable housing.
8%
Equity Raised MHEG closed its inaugural fund in 1993, raising $4.75 million from 8 investors. MHEG has since closed equity into 66 funds comprised of 133 investors. Our smallest fund, NAHF 1994, LP, raised $3.25 million, and our largest fund to date, MHEG 56, LP, raised $209.5M.
Housing Type
Development Status
75%
32%
6%
MHEG
AR
CO
IA
KS
MN
MO
MT
16%
20%
Construction Type
0-12 units 13-24 units 25+ units
52%
Development Size
57%
States Served MHEG started in Nebraska, and later expanded into Kansas, Iowa, and Oklahoma. In 2013, MHEG then expanded into six additional states, Arkansas, Colorado, Minnesota, Missouri, South Dakota, and Texas. Today, MHEG now serves 18 states, with the addition of Arizona, Idaho, Montana, Nevada, New Mexico North Dakota, Utah, and Wyoming. We have developments in over 252 counties and over 322 cities.
By Individual State
1% 13%
22%
13%
new rehab historic rehab
Acquisitions Closed MHEG has closed 754 developments to date, partnering with 150+ developers. Our largest acquisition deal located in Denver, CO, is 237 units and our smallest acquisition is a 6-unit development, we have several in rural towns throughout Nebraska and Kansas. Over 300 acquisitions are multifamily units, over 250 acquisitions are for persons 55+, almost 100 acquisitions are single family homes and just over 50 developments are targeted to special populations: transitional homeless facilities, developmentally disabled residents, veterans.
operational lease-up construction disposed
36%
rural urban suburban
5%
37% Location
NE
ND
OK
SD
TX
Developments
754
12
22
87
173
9
50
1
251
1
96
19
15
Housing Units
26,016
591
1,673
3,063
5,025
320
2,370
58
6,819
39
3,881
726
629
Counties Represented
252
11
13
31
52
8
32
1
51
1
36
6
10
Cities Represented
322
11
14
39
73
9
35
1
69
1
54
6
10
Equity Invested
$3B
$73M
$207M
$328M
$574M
$62M
$219M
$5M
$845M
$12M
$481M
$104M
$108M
Michaelis to Retire Becky Christoffersen, Chief Investment Officer With a mix of gratitude and nostalgia, we announce the retirement of Patrick Michaelis, our Vice President of Community Development. Pat’s journey at MHEG began in 2005, initially as part of our KEF Management Committee and later joining the team in 2007. He played pivotal roles at MHEG including Interim Director of Kansas Operations and Executive Vice President and Business Development Officer for MHEG’s Central Region. His role in expanding MHEG’s operations into Missouri in 2013 exemplifies his strategic vision and commitment to the MHEG’s mission of Changing Lives. Letf: Southern Hills Senior Homes in Topeka, KS (June 2023); Center: Harvest Pointe in Newton, KS (Oct 2023); Right: NewView Place II in Kansas City, MO (Oct 2023)
Pat’s dedication significantly impacted our Central Region. He lead the region from under 50 properties in Kansas to an impressive 221 properties, with over 7,293 affordable rental homes. These homes are located across 73 cities in Kansas and Missouri and financed with over $775 million in investor capital. As we bid farewell to Pat in his full-time capacity, we express our deepest appreciation for his contributions, his inspiring leadership, and the countless lives he has positively impacted. Pat’s legacy at MHEG is not just in the housing created but in the lives he’s touched and the community he’s helped build. While stepping back from full-time duties, Pat will continue to share his expertise with us all in a consultant role. We wish Pat all the best in his well-deserved retirement. May this new chapter bring joy, relaxation, and time to pursue adventures and passions.
Letf: The Cottages in Omaha, NE (Oct 2023); Center: Underwood Terrace in Lake City, MN (Nov 2023); Right: Monett Homes Estates in Monett, MO (Nov 2023) MHEG in a Minute l P1
Patrick Michaelis Keeping you up to date on MHEG in just a minute’s time. l Winter 2023
CEO Message & Recent Happenings
MHEG & MHDF Updates
Changing Lives in 2023! John Wiechmann, CEO
30 Years of Changing Lives
Season’s Greetings Friends! As I reflect on 2023, a milestone year for MHEG, I am sincerely grateful to be a part of such a great company. I had the opportunity to travel our footprint this year and attend many of the state appreciation dinners/luncheons. I really enjoy meeting with our partners in person. We wouldn’t be celebrating 30 years without your trust and confidence. Check out our 30-year stats on page 2 – I am humbled by what you’ve let us accomplish over the years.. This fall we recognized and thanked one of our long-time service leaders, Dennis Brand, for his 12 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 Dennis and all our Board members give to MHEG, and affordable housing, is something we truly appreciate. Best wishes on your next adventure Dennis! I would also like to recognize two new leaders that have joined our Board of Directors, Gregg Yeutter and Kevin Lawrence. Gregg has been actively involved in the low-income housing tax credit arena since the inception of the LIHTC program in 1986. He also has extensive experience in closing historic rehabilitation tax credit, renewable energy tax credit and new markets tax credit transactions across the country. Gregg is Of Counsel for Kutak Rock LLP. Kevin has served as the Chief Financial Officer of BancFirst Corp. since 2013. Prior to his role as CFO, Kevin worked in public accounting, primarily with Ernst & Young, LLP. I am grateful that both have decided to give their time and talent to MHEG. Thank you also to our many other partners, investors, developers, general partners, property managers, financing partners and government officials. Last but certainly not least, I want to recognize our awesome team! Between MHEG and Midwest Housing Development Fund, we have almost 60 individuals working hard every day to provide more affordable housing. I am proud of their dedication to our mission and values. Together with you, we’re Changing Lives For A Better Tomorrow! With gratitude, we look forward to the next 30 years of shared success. See you all in ’24. Until then, Happy New Year! John Wiechmann
Recent Happenings Groundbreakings and Ribbon Cuttings
64%
43% multifamily age restricted single family special needs
In 2023, MHEG celebrated 30 years of Changing Lives. Over the past three decades we have deployed over $3 billion of investor capital into 750+ developments, helping create more than 26,000 units of safe, decent, and affordable housing.
8%
Equity Raised MHEG closed its inaugural fund in 1993, raising $4.75 million from 8 investors. MHEG has since closed equity into 66 funds comprised of 133 investors. Our smallest fund, NAHF 1994, LP, raised $3.25 million, and our largest fund to date, MHEG 56, LP, raised $209.5M.
Housing Type
Development Status
75%
32%
6%
MHEG
AR
CO
IA
KS
MN
MO
MT
16%
20%
Construction Type
0-12 units 13-24 units 25+ units
52%
Development Size
57%
States Served MHEG started in Nebraska, and later expanded into Kansas, Iowa, and Oklahoma. In 2013, MHEG then expanded into six additional states, Arkansas, Colorado, Minnesota, Missouri, South Dakota, and Texas. Today, MHEG now serves 18 states, with the addition of Arizona, Idaho, Montana, Nevada, New Mexico North Dakota, Utah, and Wyoming. We have developments in over 252 counties and over 322 cities.
By Individual State
1% 13%
22%
13%
new rehab historic rehab
Acquisitions Closed MHEG has closed 754 developments to date, partnering with 150+ developers. Our largest acquisition deal located in Denver, CO, is 237 units and our smallest acquisition is a 6-unit development, we have several in rural towns throughout Nebraska and Kansas. Over 300 acquisitions are multifamily units, over 250 acquisitions are for persons 55+, almost 100 acquisitions are single family homes and just over 50 developments are targeted to special populations: transitional homeless facilities, developmentally disabled residents, veterans.
operational lease-up construction disposed
36%
rural urban suburban
5%
37% Location
NE
ND
OK
SD
TX
Developments
754
12
22
87
173
9
50
1
251
1
96
19
15
Housing Units
26,016
591
1,673
3,063
5,025
320
2,370
58
6,819
39
3,881
726
629
Counties Represented
252
11
13
31
52
8
32
1
51
1
36
6
10
Cities Represented
322
11
14
39
73
9
35
1
69
1
54
6
10
Equity Invested
$3B
$73M
$207M
$328M
$574M
$62M
$219M
$5M
$845M
$12M
$481M
$104M
$108M
Michaelis to Retire Becky Christoffersen, Chief Investment Officer With a mix of gratitude and nostalgia, we announce the retirement of Patrick Michaelis, our Vice President of Community Development. Pat’s journey at MHEG began in 2005, initially as part of our KEF Management Committee and later joining the team in 2007. He played pivotal roles at MHEG including Interim Director of Kansas Operations and Executive Vice President and Business Development Officer for MHEG’s Central Region. His role in expanding MHEG’s operations into Missouri in 2013 exemplifies his strategic vision and commitment to the MHEG’s mission of Changing Lives. Letf: Southern Hills Senior Homes in Topeka, KS (June 2023); Center: Harvest Pointe in Newton, KS (Oct 2023); Right: NewView Place II in Kansas City, MO (Oct 2023)
Pat’s dedication significantly impacted our Central Region. He lead the region from under 50 properties in Kansas to an impressive 221 properties, with over 7,293 affordable rental homes. These homes are located across 73 cities in Kansas and Missouri and financed with over $775 million in investor capital. As we bid farewell to Pat in his full-time capacity, we express our deepest appreciation for his contributions, his inspiring leadership, and the countless lives he has positively impacted. Pat’s legacy at MHEG is not just in the housing created but in the lives he’s touched and the community he’s helped build. While stepping back from full-time duties, Pat will continue to share his expertise with us all in a consultant role. We wish Pat all the best in his well-deserved retirement. May this new chapter bring joy, relaxation, and time to pursue adventures and passions.
Letf: The Cottages in Omaha, NE (Oct 2023); Center: Underwood Terrace in Lake City, MN (Nov 2023); Right: Monett Homes Estates in Monett, MO (Nov 2023) MHEG in a Minute l P1
Patrick Michaelis Keeping you up to date on MHEG in just a minute’s time. l Winter 2023
MHEG & MHDF Updates
Property & Resident Spotlight
Government Affairs Update Joshua Yurek, VP Government Affairs & Community Outreach
Fieldcrest, Valley Center, Kansas Meet Marion
Since its reintroduction this year, the Affordable Housing Credit Improvement Act (AHCIA) (S. 1557 and H.R. 3238) continues to gain more support. The legislation reforms provisions of the Low-Income Housing Tax Credit (LIHTC) program by increasing the Housing Credit allocation and making the Housing Credit a more effective tool, particularly in rural areas, to encourage additional development. The legislation currently has strong bipartisan support, including 200 cosponsors in the House and 30 cosponsors in the Senate. Within the MHEG footprint, we have members that have cosponsored the AHCIA from AR, CO, IA, KS, MN, MO, MT, ND, NE, OK and SD. It is exciting to note that the entire Kansas delegation has cosponsored the legislation, along with the full Iowa House delegation! This fall, the historic ousting of Rep. Kevin McCarthy (R-CA-20) from the speakership caused significant delays in legislative negotiations on government spending and potential tax legislation, among other items, as the House worked to elect a new speaker. It’s important to note that the House can’t process any legislation without a duly elected speaker. On October 25th, Rep. Mike Johnson (R-LA-4), was elected as the 56th speaker of the House. In November, Congress passed staggered continuing resolutions to keep the federal government funded through January 19th and February 2, 2024. The “laddered” continuing resolution extended government funding until January 19th for four spending bills: Agriculture, Energy and Water, Military Construction-VA and Transportation-HUD, while funding for the rest of the federal government (eight remaining bills including Defense funding) was extended until February 2nd. The legislation also included a short-term extension of the National Flood Insurance Program through February 2. Congress recently adjourned for the holidays without significant year-end legislative activity since they punted the government funding deadlines into next year. However, as lawmakers work to strike a compromise to move forward on appropriations, the staggered funding deadlines present opportunities for tax legislation early in 2024. There are ongoing and productive conversations in both chambers about trying to include key tax priorities in a spending bill or other legislative vehicle. While negotiations on a potential tax bill will need to pick up again in early 2024, it’s encouraging that our Housing Credit priorities are in the mix of potential provisions if a tax package comes to fruition. As we all know, we need additional Housing Credit resources now more than ever, including restoring the recent 12.5 percent Housing Credit reduction. Earlier this year, we helped organize a successful affordable housing tour in Sioux City, IA with Rep. Randy Feenstra (I-IA-4) and our partners at Arch Icon Development. We appreciate Rep. Feenstra for visiting the Aberdeen Apartments and the Everett School Apartments in Sioux City to see firsthand the important impact of this property for the community and how it serves its residents. Finally, Members of Congress often state they see great value in visiting affordable housing properties. It is especially important for them to directly hear personal stories from residents as we continue to advocate for additional affordable housing resources in Congress. When you are a few months out from construction completion, and begin thinking about showing off the finished product, please don’t hesitate to reach out to me. I would be happy to help coordinate a ribbon-cutting event with your Congressional delegation and their staff to further demonstrate how effective the Housing Credit is in providing affordable housing in their district and state.
She’s 85 years young and still plays the organ each Sunday at her church. She’ll take requests on the piano, but will make you sing along. Full of stories, warmth and laughter, she’s a joy to sit and converse with. Almost three years ago her story could have taken another direction. Marion was living in an apartment complex with mold in Wichita, Kansas, and her health was deteriorating because of improper treatment. When she first reported the issue to the manager, they painted over the mold instead of correctly treating it. The mold came back, and spread from the ceiling to the walls, due to a water issue in the apartment above. Marion reported it again, and again they painted over it. The continued exposure of mold led to Marion getting sicker and sicker, and eventually she called her family to pick her up and she never went back. Unable to return to the moldy apartment, Marion needed a new place to live. A friend of hers began helping her search for a new apartment, but every place she called was filled. Finally, she connected to a property manager at Mennonite Housing Rehabilitation Services (MHRS) and told her Marion’s story. MHRS had a resident that would be moving out soon, and Marion could take her unit. Marion moved into Sunflowers Gardens and then transferred over to Fieldcrest when a two-bedroom unit became available. Fieldcrest and Sunflower Gardens are located in Valley Center, Kansas, about a mile apart. Both properties were developed and are managed by MHRS, which has been providing affordable housing options for low-income and elderly residents in Wichita and surrounding areas for over 40 years. As soon as she moved, Marion’s health began improving. “I couldn’t even breathe when I got here, I was using my nebulizer three times a day. I’ve been so much better since I’ve got here.” She also loves the property and the other residents. When she does have a maintenance issue, it’s fixed properly and quickly. “They go over and beyond.” Marion gets emotional when she thinks about moving to Valley Center and is so appreciative. “I don’t think I’ve ever lived any place where the apartments are so well kept. You want to keep it that way.” Fieldcrest and Sunflower Gardens were made possible for Marion and other seniors through the use of the Low Income Housing Tax Credit Program. Fieldcrest was funded through MHEG Fund 51, LP.
Fieldcrest General Partner Fieldcrest, LLC Developer Mennonite Housing Rehabilitation Services, Inc.
MHDF Update Lara Huskey, MHDF EVP
Property Manager Mennonite Housing Rehabilitation Services, Inc. Equity Invested $6 million
“I don’t think I’ve ever lived any place where the apartments are so well kept.” ~ Marion
We are proud of MHDF’s reach across the Midwest. For instance, Marshalltown, IA, which has a population over 27,000 and a median household income of $57,000. MHDF provided a construction loan and perm loans to support Conlin Properties’ Timber Ridge development of 42 new rental homes in Marshalltown. MHDF financed properties in Oklahoma City, OK - population of over 650,000 people, a median household income of $64,000 and a diverse economy with industries such as agriculture, energy, aviation, health care, and manufacturing. And MHDF is working with Buxton Enterprises to finance Peak View Apartments in Spearfish, South Dakota. Spearfish is home to Black Hills State University and has a population of over 12,000 people with a median household income of $58,000. These cities have a growing demand for affordable housing due to the increasing population and the need for affordable rental housing units. MHDF’s loans have helped create affordable rental housing units in these cities and many others, providing a safe and comfortable living environment for low-income families and individuals. In 2022, MHDF provided over $30 million in financing distributed between 17 loans. To date, MHDF has provided 275+ loans totaling over $150 million. These loans have helped create over 9,000 affordable rental housing units for individuals and families across the Midwest.
MHEG in a Minute l P3
Keeping you up to date on MHEG in just a minute’s time. l Winter 2023
MHEG & MHDF Updates
Property & Resident Spotlight
Government Affairs Update Joshua Yurek, VP Government Affairs & Community Outreach
Fieldcrest, Valley Center, Kansas Meet Marion
Since its reintroduction this year, the Affordable Housing Credit Improvement Act (AHCIA) (S. 1557 and H.R. 3238) continues to gain more support. The legislation reforms provisions of the Low-Income Housing Tax Credit (LIHTC) program by increasing the Housing Credit allocation and making the Housing Credit a more effective tool, particularly in rural areas, to encourage additional development. The legislation currently has strong bipartisan support, including 200 cosponsors in the House and 30 cosponsors in the Senate. Within the MHEG footprint, we have members that have cosponsored the AHCIA from AR, CO, IA, KS, MN, MO, MT, ND, NE, OK and SD. It is exciting to note that the entire Kansas delegation has cosponsored the legislation, along with the full Iowa House delegation! This fall, the historic ousting of Rep. Kevin McCarthy (R-CA-20) from the speakership caused significant delays in legislative negotiations on government spending and potential tax legislation, among other items, as the House worked to elect a new speaker. It’s important to note that the House can’t process any legislation without a duly elected speaker. On October 25th, Rep. Mike Johnson (R-LA-4), was elected as the 56th speaker of the House. In November, Congress passed staggered continuing resolutions to keep the federal government funded through January 19th and February 2, 2024. The “laddered” continuing resolution extended government funding until January 19th for four spending bills: Agriculture, Energy and Water, Military Construction-VA and Transportation-HUD, while funding for the rest of the federal government (eight remaining bills including Defense funding) was extended until February 2nd. The legislation also included a short-term extension of the National Flood Insurance Program through February 2. Congress recently adjourned for the holidays without significant year-end legislative activity since they punted the government funding deadlines into next year. However, as lawmakers work to strike a compromise to move forward on appropriations, the staggered funding deadlines present opportunities for tax legislation early in 2024. There are ongoing and productive conversations in both chambers about trying to include key tax priorities in a spending bill or other legislative vehicle. While negotiations on a potential tax bill will need to pick up again in early 2024, it’s encouraging that our Housing Credit priorities are in the mix of potential provisions if a tax package comes to fruition. As we all know, we need additional Housing Credit resources now more than ever, including restoring the recent 12.5 percent Housing Credit reduction. Earlier this year, we helped organize a successful affordable housing tour in Sioux City, IA with Rep. Randy Feenstra (I-IA-4) and our partners at Arch Icon Development. We appreciate Rep. Feenstra for visiting the Aberdeen Apartments and the Everett School Apartments in Sioux City to see firsthand the important impact of this property for the community and how it serves its residents. Finally, Members of Congress often state they see great value in visiting affordable housing properties. It is especially important for them to directly hear personal stories from residents as we continue to advocate for additional affordable housing resources in Congress. When you are a few months out from construction completion, and begin thinking about showing off the finished product, please don’t hesitate to reach out to me. I would be happy to help coordinate a ribbon-cutting event with your Congressional delegation and their staff to further demonstrate how effective the Housing Credit is in providing affordable housing in their district and state.
She’s 85 years young and still plays the organ each Sunday at her church. She’ll take requests on the piano, but will make you sing along. Full of stories, warmth and laughter, she’s a joy to sit and converse with. Almost three years ago her story could have taken another direction. Marion was living in an apartment complex with mold in Wichita, Kansas, and her health was deteriorating because of improper treatment. When she first reported the issue to the manager, they painted over the mold instead of correctly treating it. The mold came back, and spread from the ceiling to the walls, due to a water issue in the apartment above. Marion reported it again, and again they painted over it. The continued exposure of mold led to Marion getting sicker and sicker, and eventually she called her family to pick her up and she never went back. Unable to return to the moldy apartment, Marion needed a new place to live. A friend of hers began helping her search for a new apartment, but every place she called was filled. Finally, she connected to a property manager at Mennonite Housing Rehabilitation Services (MHRS) and told her Marion’s story. MHRS had a resident that would be moving out soon, and Marion could take her unit. Marion moved into Sunflowers Gardens and then transferred over to Fieldcrest when a two-bedroom unit became available. Fieldcrest and Sunflower Gardens are located in Valley Center, Kansas, about a mile apart. Both properties were developed and are managed by MHRS, which has been providing affordable housing options for low-income and elderly residents in Wichita and surrounding areas for over 40 years. As soon as she moved, Marion’s health began improving. “I couldn’t even breathe when I got here, I was using my nebulizer three times a day. I’ve been so much better since I’ve got here.” She also loves the property and the other residents. When she does have a maintenance issue, it’s fixed properly and quickly. “They go over and beyond.” Marion gets emotional when she thinks about moving to Valley Center and is so appreciative. “I don’t think I’ve ever lived any place where the apartments are so well kept. You want to keep it that way.” Fieldcrest and Sunflower Gardens were made possible for Marion and other seniors through the use of the Low Income Housing Tax Credit Program. Fieldcrest was funded through MHEG Fund 51, LP.
Fieldcrest General Partner Fieldcrest, LLC Developer Mennonite Housing Rehabilitation Services, Inc.
MHDF Update Lara Huskey, MHDF EVP
Property Manager Mennonite Housing Rehabilitation Services, Inc. Equity Invested $6 million
“I don’t think I’ve ever lived any place where the apartments are so well kept.” ~ Marion
We are proud of MHDF’s reach across the Midwest. For instance, Marshalltown, IA, which has a population over 27,000 and a median household income of $57,000. MHDF provided a construction loan and perm loans to support Conlin Properties’ Timber Ridge development of 42 new rental homes in Marshalltown. MHDF financed properties in Oklahoma City, OK - population of over 650,000 people, a median household income of $64,000 and a diverse economy with industries such as agriculture, energy, aviation, health care, and manufacturing. And MHDF is working with Buxton Enterprises to finance Peak View Apartments in Spearfish, South Dakota. Spearfish is home to Black Hills State University and has a population of over 12,000 people with a median household income of $58,000. These cities have a growing demand for affordable housing due to the increasing population and the need for affordable rental housing units. MHDF’s loans have helped create affordable rental housing units in these cities and many others, providing a safe and comfortable living environment for low-income families and individuals. In 2022, MHDF provided over $30 million in financing distributed between 17 loans. To date, MHDF has provided 275+ loans totaling over $150 million. These loans have helped create over 9,000 affordable rental housing units for individuals and families across the Midwest.
MHEG in a Minute l P3
Keeping you up to date on MHEG in just a minute’s time. l Winter 2023
Staff - Additions Recent Staff Additions Jennifer Deason - MHDF, Loan Closing Specialist
Content
Jennifer joined MHDF as a Loan Closing Specialist in August 2023. Her duties will include managing the day-to-day loan closing and reporting functions of MHDF. Jennifer has over 10+ years of customer service experience and 3+ years in loan processing/closing positions. She most recently worked as a Small Business Loan Closing Coordinator for Aegis Investment Group. Jennifer will work remotely from her home in the St. Louis area.
CEO Message & Recent Happenings
P1
MHEG & MHDF Updates
P2
Property & Resident Spotlight
P4
Staff - Additions
P5
Portfolio Update
P5
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© Midwest Housing Equity Group
Portfolio Updates Q4 2023 Developments
Location
Units
Date
MHEG 56
Central City, NE
16
OCT
Portland Place Apartments, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 55
Edmond, OK
180
OCT
CSV, LP Developed by: AMD Partners, LLC
MHEG 55
Crete, NE
30
OCT
OPG Heritage at Abilene Partners, LLC Developed by: Overland Property Group
MHEG 54
Abilene, TX
29
NOV
State Street Villas, LLC Developed by: Mesner Development Co.
MHEG 56
Grand Island, NE
20
NOV
Lindenwoods IV, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 56
Durant, OK
24
NOV
Lindenwoods V, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 56
Durant, OK
16
NOV
Avalon at Oklahoma City Phase I, LP Developed by: Domera Development, LLC
MHEG 57
Oklahoma City, OK
41
NOV
Avalon at Oklahoma City Phase II, LP Developed by: Domera Development, LLC
MHEG 56
Oklahoma City, OK
40
NOV
41 Paseo East LLC Developed by: Swope Community Builders/Community Builders of Kansas City
MHEG 55
Kansas City, MO
54
DEC
Garner Villas, LP Developed by: Housing Plus, LLC
MHEG 57
West Plains, MO
48
DEC
Osborn PSH LLLP Developed by: TC Developer LLC
MHEG 56
Rocky Ford, CO
30
DEC
The T OKC III, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 56
Oklahoma City, OK
18
DEC
Lindenwoods Phase VI, LLC Developed by: Express Development/Desert Ridge Investments
MHEG 55
Durant, OK
24
DEC
Avenue 25 Villas, LLC Developed by: Mesner Development Co.
Fund
Total Units Closed between October and December 2023
570
Total Units Closed in 2023
1,970
MHEG Portfolio as of 12/2023 Developments
754
Units
26,016
Counties Represented
252
Cities Represented
322
Vacancy Percentage
5.68%*
Debt Coverage Ratio
1.68*
*Data compiled from 9/30/23 figures using stabilized developments only, vacancy percentage is using economic vacancy.
MHEG in a Minute l P5
MHEG in a Minute Keeping you up to date on MHEG in just a minute’s time. l Winter 2023