2014 mheg annualreport

building

hope

MIDWEST HOUSING EQUITY GROUP2014 Annual report

corporatePhilosophy

Mission Statement:Midwest Housing’s mission is to change lives for a better tomorrow by promoting the development and sustainability of quality affordable housing.

Vision:Midwest Housing aspires to be the leading regional syndicator of low-income housing tax credits, recognized for its excellent track record of selecting, investing in and protecting quality real estate projects that revitalize the communities in which they are built.

Core Values:

Integrity: as fiduciaries, we are honest and up front in all of our transactions, avoiding even the appearance of impropriety or conflict of interest transactions.

Stewardship: we are excellent stewards of our investments (and thus the residents), honoring our written and implicit commitments to our investors, developers, residents and communities.

Excellence: we strive to be the best in the business, employing the best individuals, utilizing up-to-date processes and infrastructure, and conservative underwriting parameters.

Local Presence: we are and will remain local, believing that a “boots on the ground” approach is the best way to understand and protect the projects.

Employee-Focused: our employees are our strength. Recognizing that, we endeavor to provide ongoing development, training and advancement opportunities, to respect a work/life balance and to recognize and reward personal, department and company achievements.

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CONTENTSmessage from our president

Equity & portfolio growth

summary of investors

2014 Developments

Board of Directors& Committee Members

MHEG Staff

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Left: Tabor Grand, LLLP in Leadville, Colorado

messagefrom ourpresident

Above: DH Housing LP in Durant, Oklahoma

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Building Homes; Creating Hope; Changing Lives,,

2014 was a great year for affordable housing generally and for Midwest Housing Equity Group, Inc. One of our industry’s greatest accomplishments was the retention of the Low Income Housing Tax Credit (“Housing Credit”) in Rep. Camp’s (R-MI; Chairman of House Ways & Means Committee) tax reform discussion draft released in February ’14. The Housing Credit was one of only three tax credits included in the tax reform proposal. We achieved that result because of all the great ribbon cuttings and open houses that so many of you hosted. Seeing is believing – when our Senators and Representatives visit the finished product and meet the residents we serve, they understand just how important the Housing Credit is to America’s success. Let us know how we can help you with more events in 2015! On the market side, existing properties benefitted from strong resident demand; occupancy levels generally improved, further demonstrating the need for even more resources in this space. New developments continued to benefit from strong investor demand, pushing credit pricing to levels not seen since before the Great Recession. These national trends helped translate into success for Midwest Housing and our partners.

Building Homes. As you read through this year’s annual report, you will note that the photos are dedicated to the properties in construction. It’s an exciting time! These developments, following years of hard work from developers, begin to manifest themselves in a physical sense. The ground work, the foundation and finally going vertical – it’s great to see the idea turning into reality. In that vein, in 2014, Midwest Housing invested over $115 million into 24 different properties, helping build almost 900 quality affordable rental homes for families in need. We were only able to do that because of the trust of our investors and the willingness of our developers to partner with our organization.

Creating Hope. It’s been said that hope is not strategy. That may be an accurate statement. But it’s also true that without hope, most people won’t bother to develop a strategy, let alone implement it. A big part of giving people hope is giving them, and their families, a safe, decent and affordable place to live. A place that they can, with pride, call home. Each of you reading this report is a provider of that all-important hope! Our state housing finance agencies, the great folks at HUD, our investor partners, our developer partners, our lender partners, property managers, builders, the city and county officials that support affordable housing, our supporters in Congress – thank you! What you do on a daily basis makes a difference to millions of families who have safe, affordable rental homes. It is a great pleasure to partner with you. And it’s the only way that Midwest Housing is able to change lives!

Changing Lives. Since Midwest Housing’s founding in 1993, we’ve been fortunate to help finance almost 12,000 units. In last year’s report, we conservatively estimated that we’ve been able to change the lives of 40,000 families for a better tomorrow! This does not happen in a vacuum. We only get to change lives because our partners, the hope providers, let us. We do not take our partnerships for granted and we remain grateful for the trust you place in us. In addition to our partners, we need to recognize and thank the great team here at Midwest Housing (featured on p.14). Each day, these teammates show up, work hard, lead with their hearts, think creatively and change the lives of our current and future residents for a better tomorrow. I am grateful and humbled to coach a great team. Our service leaders are also key to changing lives – we would not have been successful in 2014 (or in any prior year) but for the strong leadership provided by our Board of Directors and others volunteers. Thank you all!

Here’s to a great 2015 for all hope providers!

John WiechmannPresident/CEO

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0

$300M

$600M

$900M

$1.2B

$1.5B

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$1.2 b

illio

n

1996 1997 1998 1999 2000 2001 2002 20031993 1994 1995 2014

Nebraska Funds

Kansas Funds

Iowa Funds

Oklahoma Funds

MHEG Regional Funds

equitygrowth

portfoliogrowth

0

2,000

units

4,000

units

6,000

units

8,000

units

10,000

units

12,000

units

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

11,2

95 u

nit

s

1996 1997 1998 1999 2000 2001 2002 20031993 1994 1995 2014

Multifamily

age restricted

Single Family

Special Needs/Transitional

Development Type

9%

42%

16%

33%

MHEG TOTAL ARKANSAS COLORADO IOWA KANSAS MISSOURI NEBRASKA OKLAHOMA S. DAKOTA TEXAS

Developments 400 1 1 69 102 3 177 44 2 1

Housing Units 11,295 32 37 2,354 2,709 111 4,392 1,569 55 36

Counties 148 1 1 27 45 3 46 22 2 1

Cities 183 1 1 32 54 3 60 29 2 1

Fund Breakdown

11%

14%

26%

17%32%

3

mheg footprint

All information compiled from 12/31/2014 data.

1 - 250 units

250 - 500 units

500 - 1,000 units

1,000+ units

0-1213-24

25+

Development Size

24%

39%

37%

Operational

In Lease-Up

Construction

Disposed

Development Status

9%9%

81%

2%

Rural

Urban

Suburban

Development Location

4%

37%

59%

New

Rehab

HistoricRehab

Construction Type

6%

80%

MHEG TOTAL ARKANSAS COLORADO IOWA KANSAS MISSOURI NEBRASKA OKLAHOMA S. DAKOTA TEXAS

Developments 400 1 1 69 102 3 177 44 2 1

Housing Units 11,295 32 37 2,354 2,709 111 4,392 1,569 55 36

Counties 148 1 1 27 45 3 46 22 2 1

Cities 183 1 1 32 54 3 60 29 2 1

14%

4

Nebraska Affordable Housing Fund 1993, L.P. l $4.75 million l 8 investors Bank of the West Berkshire Hathaway, Inc. Central States Health & Life Company Farmers & Merchants Investment, Inc. Jefferson PilotLevel 3 Communications Mutual of Omaha Insurance Company US Bancorp

Nebraska Affordable Housing Fund 1994, L.P. l $3.25 million l 5 investors Bank of the West Berkshire Hathaway, Inc. Jefferson Pilot Mutual of Omaha Insurance Company US Bancorp

Nebraska Affordable Housing Fund 1995, L.P. l $5.25 million l 11 investors Bank of the West Behlen Mfg. Company Berkshire Hathaway, Inc. Cargill Financial Service Corp. Consolidated CompaniesFannie Mae Farmers & Merchants Investment, Inc. Jefferson Pilot Level 3 Communications Qwest Communications, Inc.US Bancorp

Nebraska Affordable Housing Fund 1996, L.P. l $7 million l 13 investors Bank of the West Berkshire Hathaway, Inc. Cargill Financial Service Corp. Consolidated Companies Fannie MaeFarmers & Merchants Investment, Inc. First State Bank InfoUSA Jefferson Pilot Level 3 CommunicationsPinnacle Bank US Bancorp Wells Fargo

Nebraska Affordable Housing Fund 1997, L.P. l $6 million l 8 investors Bank of the West Berkshire Hathaway, Inc. Fannie Mae Farmers & Merchants Investment, Inc. First State BancsharesJefferson Pilot US Bancorp Wells Fargo

Equity Fund of Nebraska VI, L.P. l $16 million l 12 investors Bank of America CDC Bank of the West Berkshire Hathaway, Inc. Equitable Federal Savings Bank Fannie MaeFarmers & Merchants Investment, Inc. Jefferson Pilot Summit Investments United Nebraska Bank US BancorpWells Fargo Windstream Communications

Equity Fund of Nebraska VII, L.P. l $15.75 million l 13 investors Bank of the West Berkshire Hathaway, Inc. Commerce Bank, N.A. Equitable Federal Savings Bank Fannie MaeFarmers & Merchants Investment, Inc. First State Bancshares National Education Loan Network, Inc. Pinnacle Bank Summit InvestmentsUS Bancorp Wells Fargo Windstream Communications

Equity Fund of Nebraska VIII, L.P. l $16.5 million l 13 investors Bank of the West Country Bank Shares Fannie Mae Farm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc.First State Bank Marine Bank National Education Loan Network, Inc. Pinnacle Bank Summit InvestmentsTierOne Bank US Bancorp Wells Fargo

Equity Fund of Nebraska IX, L.P. & Equity Fund of Nebraska IX-B, L.P. l $36.05 million l 14 investors Bank of the West Berkshire Hathaway, Inc. Country Bank Shares Fannie Mae Farm & Home Insurance Agency, Inc.Farmers & Merchants Investment, Inc. Freddie Mac Home Federal Savings & Loan National Education Loan Network, Inc. Pinnacle BankSummit Investments TierOne Bank US Bancorp Wells Fargo

Equity Fund of Nebraska X, L.P. l $44.5 million l 11 investors Bank of the West Country Bank Shares Fannie Mae Farm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc.Freddie Mac National Education Loan Network, Inc. Pinnacle Bank TierOne Bank US BancorpWells Fargo

Equity Fund of Nebraska XI, L.P. l $45 million l 10 investors Bank of the West Fannie Mae Farm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc. Freddie MacNational Education Loan Network, Inc. Pinnacle Bank TierOne Bank US Bancorp Wells Fargo

Equity Fund of Nebraska XII, L.P. l $40 million l 9 investors Bank of Bennington Bank of the West Fannie Mae Farm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc.North Central Bancorp, Inc. Principal Financial Services TierOne Bank Wells Fargo

Nebraska Fund XIII, L.P. l $19 million l 6 investors Farm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc. National Education Loan Network, Inc. North Central Bancorp, Inc. Principal Financial ServicesWells Fargo

Nebraska Fund XIV, L.P. l $26.5 million l 12 investors Farm & Home Insurance Agency, Inc. Farmers & Merchants Bank Farmers & Merchants Investment, Inc. Geneva State Bank Home Federal Savings & LoanNational Education Loan Network, Inc. Pinnacle Bank Platte Valley Bank RiverHills Bank South Central State BankValley Bank & Trust Company Wells Fargo

Nebraska Fund XV, L.P. l $38 million l 21 investors Adams Bank & Trust Company Adams County Bank Bank of the West Capitol Federal Savings Bank Countryside BankFarm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc. First Community Bank of Beemer Five Points Bank Henderson State BankHome Federal Savings & Loan Horizon Bank National Education Loan Network, Inc. North Central Bancorp, Inc. Reinke Mfg. CompanySeaboard Corporation South Central State Bank The State National Bank & Trust Company Valley Bank & Trust Company Wells FargoWorld’s Foremost Bank

Nebraska Fund XVI, L.P. l $36.378 million l 16 investors Adams Bank & Trust Company Bank of the West Capitol Federal Savings Bank Countryside Bank Farm & Home Insurance Agency, Inc.Farmers & Merchants Investment, Inc. First National Bank of Omaha National Education Loan Network, Inc. North Central Bancorp, Inc. Northwestern Mutual Life InsurancePinnacle Bank Platte Valley Bank South Central State Bank Valley Bank & Trust Company Wells FargoWest Gate Bank

Nebraska Fund XVII, L.P. l $31 million l 17 investors Adams Bank & Trust Company Bank of the West Bruning State Bank Capitol Federal Savings Bank Everett InvestmentsFarm & Home Insurance Agency, Inc. Farmers & Merchants Bank Farmers & Merchants Investment, Inc. First Community Bank of Beemer First National Bank of OmahaFive Points Bank Henderson State Bank National Education Loan Network, Inc. North Central Bancorp, Inc. Pinnacle BankWells Fargo West Gate Bank

Kansas Equity Fund I, L.P. l $3.125 million l 9 investors Bank of the West Central National Bank Commerce Bank, N.A. ESIC on behalf of Fannie Mae First National Bank of HutchinsonIndustrial State Bank Landmark National Bank The Mission Bank Valley VIew Bank

Kansas Equity Fund II, L.P. l $7.606 million l 11 investors Bank of the West Capital City Bank Capitol Federal Savings Bank Commerce Bank, N.A. Fannie MaeFarmers & Merchants Investment, Inc. First National Bank of Olathe Industrial State Bank Landmark National Bank The Mission BankWells Fargo

Kansas Equity Fund III, L.P. l $24 million l 9 investors Bank of the West Capitol Federal Savings Bank Commerce Bank, N.A. Fannie Mae Farmers & Merchants Investment, Inc.Freddie Mac INTRUST Bank, N.A. The Mission Bank Wells Fargo

summary of investors

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Kansas Equity Fund IV, L.P. l $28 million l 9 investors Bank of the West Capitol Federal Savings Bank Commerce Bank, N.A. Fannie Mae Farmers & Merchants Investment, Inc.

Freddie Mac INTRUST Bank, N.A. UMB Bank, n.a. Wells Fargo

Kansas Equity Fund V, L.P. l $19.416 million l 11 investors Bank of the West Capitol Federal Savings Bank Fannie Mae Farmers & Merchants Investment, Inc. First National Bank of OlatheFreddie Mac Kaw Valley Bank Landmark National Bank The Mission Bank UMB Bank, n.a.Wells Fargo

Kansas Fund VI, L.P. l $14.5 million l 9 investors Capital City Bank Capitol Federal Savings Bank Commerce Bank, N.A. Farmers & Merchants Investment, Inc. First Federal Savings & Loan AssociationFirst National Bank of Hutchinson Kaw Valley Bank Principal Financial Services UMB Bank, n.a.

Kansas Fund VII, L.P. l $16.25 million l 6 investors Capitol Federal Savings Bank Citizens Savings & Loan Association, FSB Commerce Bank, N.A. Farmers & Merchants Investment, Inc. Kaw Valley BankWells Fargo

Kansas Fund VIII, L.P. l $28.5 million l 11 investors Bank of Hays Capital City Bank Capitol Federal Savings Bank Central National Bank Citizens State Bank of MoundridgeCommerce Bank, N.A. Farmers & Merchants Investment, Inc. Kaw Valley Bank Seaboard Corporation United Bank & TrustWells Fargo

Kansas Fund IX, L.P. l $37.381 million l 13 investors Bank of the West Capital City Bank Capitol Federal Savings Bank Commerce Bank, N.A. Equity BankFarm Bureau Life Insurance Company Farmers & Merchants Investment, Inc. INTRUST Bank, N.A. Labette Bank Mc Elroy’s Inc.Northwestern Mutual Life Insurance UMB Bank, n.a. Wells Fargo

Kansas Fund X, L.P. l $29.5 million l 12 investors Bank of the West Capital City Bank Capitol Federal Savings Bank Commerce Bank, N.A. Farmers & Merchants Investment, Inc.Garmin International Girard National Bank INTRUST Bank, N.A. Morgan Federal Bank UMB Bank, n.a.United Bank & Trust Wells Fargo

Iowa Equity Fund I, L.P. l $10 million l 8 investors Bank of the West Central State Bank Dubuque Bank & Trust CDC Fannie Mae First National Bank of WaverlyGrundy Nattional Bank of Grundy Center Maquoketa State Bank Wells Fargo

Iowa Equity Fund II, L.P. l $19.896 million l 6 investors Bank of the West Fannie Mae Farmers & Merchants Investment, Inc. First National Bank of Waverly Principal Financial ServicesWells Fargo

Iowa Equity Fund III, L.P. l $25.25 million l 6 investors Bank of the West Community State Bank - Ankeny Fannie Mae Principal Financial Services TierOne BankWells Fargo

Iowa Fund IV, L.P. l $22 million l 7 investors Community State Bank - Tipton Farmers & Merchants Investment, Inc. Fidelity Bank & Trust Midwest Heritage Bank Principal Financial ServicesSecurity State Bank Wells Fargo

Iowa Fund V, L.P. l $25 million l 12 investors Bankers Trust Carroll County State Bank Cedar Rapids Bank and Trust Central Bank Community State Bank - TiptonFarmers & Merchants Investment, Inc. Fidelity Bank & Trust First Federal Savings Bank of Iowa Security State Bank Treynor State BankWells Fargo West Bank

Iowa Fund VI, L.P. l $39.75 million l 11 investors Bank of the West Bankers Trust Bankers Trust Company Capitol Federal Savings Bank Farmers & Merchants Investment, Inc.First National Bank of Waverly MidwestOne Bank Northwestern Mutual Life Insurance Principal Financial Services Seaboard CorporationWells Fargo

Iowa Fund VII, L.P. l $32.25 million l 10 investors Bank of the West Bankers Trust Company Capitol Federal Savings Bank Community State Bank - Ankeny Farmers & Merchants Investment, Inc.First National Bank of Omaha Northwestern Mutual Life Insurance Two Rivers Bank & Trust Wells Fargo West Bank

Oklahoma Equity Fund I, L.P. l $25 million l 5 investors Aegon Bank of the West Fannie Mae INTRUST Bank, N.A. Principal Financial Services

Oklahoma Equity Fund II, L.P. l $40 million l 6 investors Arvest BancFirst Bank of the West Fannie Mae JP Morgan ChasePrincipal Financial Services

Oklahoma Fund III, L.P. l $25 million l 8 investors American Fidelity Assurance Company BancFirst Bank of Oklahoma Commerce Bank, N.A. Farmers & Merchants Investment, Inc.Lifeshield National Insurance Company Seaboard Corporation Wells Fargo

Oklahoma Fund IV, L.P. l $42.95 million l 9 investors American Fidelity Assurance Company BancFirst Bank of Oklahoma Bank of the West Capitol Federal Savings BankCommerce Bank, N.A. Farmers & Merchants Investment, Inc. Northwestern Mutual Life Insurance Wells Fargo

MHEG Fund 40, L.P. l $116.25 million l 14 investors BancFirst Bank of the West Capitol Federal Savings Bank Colorado Federal Savings Bank Farm Bureau Life Insurance CompanyFidelity Bank First Bank Trust of South Dakota First National Bank of Omaha Garmin International GuideOne Mutual Insurance CompanyMutual of Omaha Bank Northwestern Mutual Life Insurance Platte Valley Bank Tri County Bank Wells Fargo

MHEG Community Fund 41, L.P. l $25 million l 20 investors Adams Bank & Trust Company American Fidelity Assurance Company Assurity Life Insurance Company Pinnacle Bank of Moundridge Commerce Bank, N.A.Community State Bank - Ankeny Equity Bank Farm & Home Insurance Agency, Inc. Farmers & Merchants Investment, Inc. Girard National BankGreat Southern Bank INTRUST Bank, N.A. Iowa State Bank Lincoln Federal Savings Bank Morgan Federal BankNorth Central Bancorp, Inc. Pinnacle Bank South Central State Bank UMB Bank, n.a. West Bank

MHEG Fund 42, L.P. l $149 million l 9 investorsBancFirst Capitol Federal Savings Bank Colorado Federal Savings Bank First National Bank of Omaha Garmin InternationalMetLife Mutual of Omaha Bank Northwestern Mutual Life Insurance Wells Fargo

MHEG Community Fund 43, L.P. l $17.5 million l 17 investorsAmerican Fidelity Assurance Company Andover State Bank Bank of Hays Bank SNB Capital City BankCommerce Bank, N.A. Elkhorn Valley Bank & Trust Farm & Home Insurance Agency, Inc. INTRUST Bank, N.A. Iowa State BankKaw Valley Bank Landmark National Bank North Central Bancorp, Inc. Pinnacle Bank The Citizens State BankUMB Bank, n.a. West Bank

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shady bend villas

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multifamily housingWe closed $53.5 million in equity for ten multifamily developments in 2014,

creating 376 units in ten communities in the Midwest.

dh housing lp: Developed by Strategic Realty, DH Housing will offer 24 newly rehabbed units in the historic hotel. Located in downtown Durant, Oklahoma, the building was built in 1906 as Atwood Hotel, years later it was sold and renamed Hotel Bryan with additions made to the building. The hotel was converted into apartments in 2000. Once renovations are complete the Dennis Huggins Memorial Apartments will provide 3 studio units and 21 one-bedroom units. french quarter ii, LLC: This development involves the construction of 22 new duplexes to provide 44 units of housing for the community of Wichita, Kansas. The first phase was built just north of this site. The property will consist of 6 one-bedroom, 14 two-bedroom and 24 three-bedroom units. The site was previously occupied by abandoned, four-plex buildings constructed in the 1950’s. Mennonite Housing Rehabilitation Services will serve as the developer and property manager.

ironwood partners, llc & Trail ridge Partners, LLC: The Reserves at Ironwood, located in Oskaloosa, Iowa, and the Reserves at Trail Ridge, located in Great Bend, Kansas, are both 48 multifamily unit properties developed by Overland Property Group. These developments will mirror similar projects that MHEG has partnered on with OPG. The building exterior will feature hardi-plank siding, stone accents, varied elevations and pitched roofs. The developments will offer two- and three-bedroom units in garden style buildings (four-bedroom units will also be available at Ironwood) . A clubhouse will be available to all residents and will feature a fitness center, community room, computer learning center and property management office. The properties will also include a gardening area and will incorporate green design elements.

ppr, LP: Prairie Pointe Residences, located in McPherson, Kansas, will consist of newly constructed buildings that offer two- and three-bedroom units, for a total of 45 multifamily units. Prairie Fire Development Group and Prairie Fire Management Company will serve as the developer and property manager, respectively.

prairie heights, LLC: Developed by Excel Development Group, Prairie Heights will offer 14 newly constructed units for families in the community of Orange City, Iowa. The property will consist of eight single family homes and six duplexes. In addition to common household amenities, Prairie Heights will provide patios, double car garages, a community garden and walking trails.

ridgeway villas, LP: MHEG partnered for the first time with North Star, LLC to develop Ridgeway Villas. This new construction development offers 56 multifamily units for the community of Raymore, Missouri, just south of the Kansas City metro. The townhomes and duplexes will offer two- and three-bedroom units.

shady bend villas, llc: Located in Grand Island, Nebraska, Shady Bend will provide the community with 20 new duplex units, offering three- and four-bedroom units. Mesner Development Co. will serve as the developer.

Tabor GRAND, lllp: Tabor Grand Hotel opened in 1885 as an elite and prestigious hotel during the silver boom in Leadville, Colorado. The hotel flourished until the 1900's when it slowly began to fall into disrepair. In 1993 the hotel was renovated into apartments. And in 2014, Overland Property Group purchased the hotel to fully renovate and restore the building to its original integrity. Once complete, the Tabor Grand Hotel Apartments will offer 37 units.

wedgewood apartments, lp: Developed by Housing Investment Partners II, Wedgewood Apartments will provide 48 units for the families of Wellington, Kansas. Residents will also be able to use the community clubhouse, which provides a community room, kitchenette, a library with computer access, an exercise room, green space to enjoy, as well as covered and uncovered outdoor seating. This is MHEG’s first time partnering with Housing Investment.

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single family homes

chambrooke homes of durant, llc: This new development will consist of 40 scattered site single family homes in Durant, Oklahoma. The development will target households with at least one family member that has a disability. There will be 32 three-bedroom units, and 8 four-bedroom units. The developer will include a number of energy efficiency amenities in each unit, including: Energy Star HVAC systems, Low E windows, low flow shower heads, Energy Star water heaters, radiant barriers in the attic, and R-38. Other amenities include: a playground, a library, outdoor covered seating, FEMA approved storm shelters in each unit and a soccer field. Sunview Development, LLC served as the developer for this property.

graham park estates, lp: Developed by Dana Point Development Corporation, Graham Park will provide 11 newly constructed single family homes for the community of Seward, Nebraska. The three- and four-bedroom homes will have two baths, a two car garage, washer/dryers, dishwashers, security system, extra storage area and a community garden. Supportive Services will also include an Annual Spring Cleaning, Transportation Services and Child-Care Subsidy which are all included in the annual operating expenses.

village crown ii limited partnership: Located in Omaha, Nebraska, the second phase Village Crown will provide 27 new three- and four-bedroom single family homes with several amenities, attached garages and full size basements. This is the ninth phase of Holy Name Housing Corporation’s Credit to Own (“CROWN”) program. The residents take special pride in their homes knowing they are building up an escrow for home ownership.

We closed $12.7 million in equity for three single family home developments in

2014, creating 26 units in three communities in the Midwest.

chambrooke homes of

durant

9

special needs housing

A & P ii, LLC: Located in Lincoln, Nebraska, the President and Ambassador Apartments are a pair of five-story, flat-roofed, apartment buildings with a shared courtyard that sit adjacent to the State Capitol. They were constructed in 1928-29 of reinforced concrete with red brick veneer and limestone trim. The substantial rehab will increase the square footage of the units and decrease the number of units from 84 to 71. The proposed acquisition/rehabilitation of the existing buildings will involve replacing all mechanical systems and increasing the number of handicapped units. Excel Development Group served as the developer.

beacon apartments limited partnership: This new construction development is a 14-unit multi-site project that will serve residents with development disabilities in Sioux Falls, South Dakota. Beacon Apartments will consist of three separate buildings, offering a total of 4 one-bedroom and 10 two-bedroom units. Additional amenities include on-site management, case management, medical services, employment training and residential services that can provide up to 24 hours of care per day if needed. Lloyd Companies served as developer for this project.

nfw, llc: Nebraska Family Works, located in Omaha, Nebraska, involves the redevelopment of existing apartments into a new, state of art facility for Heartland Family Service. The Family Works Program is a unique program for pregnant women and/or mothers of young children that allow a parent to complete treatment while maintaining custody of their children. This has proven to be more effective than substance abuse treatment alone because of its dual focus on the parent’s success in their recovery as well as the success of their families. HFS will provide addiction treatment, child care, and 24 supportive housing units for those undergoing treatment and recovery. J Development Company served as developer for this project.

rushpointe apts. LLC: Rushpointe is a project devoted to persons with special needs by providing 16 newly constructed units in Wichita, Kansas. The property will provide wheelchair accessible bathrooms, grab bars and hand-rails, lowered or modified kitchen cabinets and equipment, handicapped parking, as well as a in-house tornado shelter and safe room. Vintage Construction served as the developer and Kansas Elks Training Center for the Handicapped, Inc. will provide services to persons with physical developmental disabilities.

beacon apartments

We closed over $16 million in equity for four special needs developments in

2014, creating 125 units in four communities in the Midwest.

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age restricted housing

apple ridge seniors ii, llc: Located in Pauls Valley, Apple Ridge Seniors II will consist of the newly constructed duplex units for people 62+. There will be 6 one-bedroom units and 9 two-bedroom units. The developer, Express Development and Desert Ridge Investments, will incorporate a number of energy efficient features into the units, including: low flow shower heads, insulation on exposed hot water pipes, Energy Star appliances and windows, Energy Star water heaters, use of radiant barriers in the attic, roof or exterior walls, programmable thermostats, and R-38 attic insulation. Including these features into the construction of the development will enable residents to keep more of their disposable income each month instead of spending it on utility expenses. The community room will be attached to one of the duplex buildings and provide residents with a library, fitness center and large meeting space. Outdoor covered seating and walking trails will also be added for the residents’ enjoyment.

cypress pointe ii, llc: MHEG partnered with Excel Development Group to complete Phase II of Cypress Pointe. Located in Omaha, Nebraska, this development will provide 80 units for people 55+. Unlike Phase I, which consisted of duplexes, Phase II will consist of two three-story elevator buildings. Each building will have 40 units, 14 one-bedroom units and 66 two-bedroom units. All units will be fully handicap accessible and have roll-in showers and higher toilet seats. Amenities will include a storage area, washer/dryer, dishwasher, refrigerator, stove and microwave. A storm shelter will be provided in the basement of each building.

emerson estates, llc & meadow brooks, llc: Developed by Mesner Development Company, Emerson Estates and Meadow Brooks will provide people 55+ affordable rental units in their communities. Emerson Estates located in Hastings, Nebraska, will provide a total of 24 units, 18 two-bedroom units and 6 three-bedroom units. Meadow Brooks, located in Larned, Kansas, will provide 12 two-bedroom units. All units will include an attached garage, storm shelters, washer/dryer, stove, refrigerator, garage door openers, dishwasher and microwave. Lawn care, snow removal and trash pickup will be available at no cost to the resident. The development will be designed with Green Standards and all of the units are handicapped adaptable.

heritage gardens, lp & meadow vista, lp: MHEG partnered with Dana Point Development Corporation to develop two age-restricted properties in Nebraska. Heritage Gardens is located in three Dawson County communities, Lexington, Cozad and Gothenburg, and will provide 32 units total. Meadow Vista, located in North Platte, will provide 12 units (two of which are market rate). All units will have three-bedrooms, two baths and a finished garage. Although each unit will have the same floor plan, each exterior will be uniquely different with the use of different color combinations, windows, brick placement, roof lines. The properties will also include a gardening area and offer supportive services such as annual spring cleaning, transportation services and web-based training and education.

Hilltop Senior Limited Partnership: Hilltop Senior will consist of 62 units in a single building for people 55+. The unit mix will offer 20 one-bedroom units, 42 two-bedroom units. Property amenities include a monitored security system, underground parking, storage units, laundry room, game/craft room and media center. Conlin Development and Barnes Realty served as developer.

We closed $28.6 million in equity for seven age restricted developments in

2014, creating 237 units in nine communities in the Midwest.

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hilltop senior

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Audit CommitteeSteve Bodner - U.S. Bank

David Fisher - FHLBank Topeka

Dick Hoiekvam - Retired Partner, Deloitte

Dick Schenck - Retired Senior Vice President, Wells Fargo

Budget & Compensation CommitteeDennis Brand - BancFirst


Chris Hensley - Retired Vice President, Bank of the West

Rick Jackson - Capitol Federal Savings Bank

Barry Sandstrom - Home Federal Savings & Loan

Central Region Operations & Investment CommitteeBob Arthur - Commerce Bank, N.A.

Mark Dennett - INTRUST Bank, N.A.


Bob Kobbeman - Capital City Bank

Lloyd Rainge - Capitol Federal Savings Bank


Michael Scheopner - Landmark National Bank

Northeast Region Operations & Investment CommitteeEd Benjamin - MidwestOne Bank

Jennifer Cooper - Bankers Trust

Tom Hanafan - Former Mayor of Council Bluffs, Iowa


Kristi Knous - Community Foundation of Greater Des Moines


Susan Whitson - First National Bank of Waverly

Northwest Region Operations & Investment CommitteeSteve Bodner - U.S. Bank


Tim Hart - First National Bank of Omaha


Justin Horst - Pinnacle Bank

Randy Ilich - Colorado Federal Savings Bank


South Region Operations & Investment CommitteeRoger Beverage - Oklahoma Bankers Association

Dennis Brand - BancFirst

Carl Hudgins - Commerce Bank

David King - First united bank

Brad Krieger - Arvest Bank

Mike Wynn - Mabrey bank

Dick Schenck, Chairman of the Board - Retired Senior Vice President, Wells Fargo

David Fisher, Vice Chairman of the Board - FHLBank Topeka

Steve Bodner, Secretary - U.S. Bank

Dennis Brand - BancFirst



Rick Jackson - Capitol Federal Savings Bank

Barry Sandstrom - Home Federal Savings & Loan

board of directors

committee members

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mheg staff

Becky ChristoffersenChief Investment Officer

Laurie StephensonDeputy Director of

Compliance

Shannon PowersClosing Coordinator

Jason MainChief Financial Officer

Shannon FosterAccounting Manager

Tom StratmanVice President of

Acquisitions

Shannon JohnsonAsset Manager

Brooke SmithAsset Manager

Geoff GraffordAsset Manager

Cindy KosterSenior Acquisitions

Manager

Chris PangkeregoDirector of Information

Technology

Dana OswaldAccounting Coordinator

Keely McAleerCorp. Communications &

HR Administrator

Rachel WiesnerInvestor Relations

Manager

Sammy EhtishamAssistant Vice President

of Acquisitions

Jordan AbboudDeputy Director of

Specal Assets

Deb SwansonClosing Coordinator

Ryan HarrisDeputy Director ofAsset Stabilization

Amy LeonardAsset Manager

Chris ImmingAcquisitions Manager

Traci CollinsAcquisitions Manager

Pat MichaelisVice President - Business

Development OfficerCentral Region

Andrea FrymireVice President - Business

Development OfficerSouth Region

Nicole KosterFinancial Analyst

Jake JacobsenConstruction Manager

Ann BurgeChief Operating Officer

Steve GrossFinancial Analyst

Amanda BockelmanFinancial Analyst

Scott FitzpatrickVice President - Business

Development Officer Northeast Region

Jen Oscarson Vice President - Business

Development Officer Northwest Region

John WiechmannPresident / ChiefExecutive Officer

Dustin DaughertyConstruction Manager

Lisa BryanAdministrative Coordinator

Cindy WieckAdminstrative Assistant

Shellie VandemanCompliance Specialist

Cecelia GrossmanAccounting Specialist

Jennifer MeaikeCompliance Specialist

14

Edit, Concept & Design By: Keely McAleer

midwest housing equity group515 N. 162nd Avenue, Suite 202

omaha, ne 68118www.mheginc.com

2014 mheg annualreport

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