REGULAR MEETING OF THE HOUSING DEVELOPMENT COMMISSION THURSDAY, APRIL 29, 2021 AT 10:00 A.M.

Notice is hereby given that the Missouri Housing Development Commission will conduct its Regular Meeting virtually on Thursday, April 29, 2021. Members of the public may attend this meeting via telephone:

Toll Free Conference Line: 800-201-5203 Kansas City: 816-897-0010 St. Louis: 314-627-1157 Access Code: 264716

The agenda of this meeting is attached to this notice.

The news media may obtain copies of this notice by contacting:

Lynn Sigler Missouri Housing Development Commission 920 Main Street, Suite 1400 Kansas City, MO 64105 (816)759-6822 [email protected]

MHDC will make reasonable accommodations for persons with disabilities at the public site. To request an accommodation, please contact Lynn Sigler at (816) 759-6822 or [email protected].

REGULAR MEETING OF THE MISSOURI HOUSING DEVELOPMENT COMMISSION THURSDAY, APRIL 29, 2021 AT 10:00 A.M.

AGENDA MEETING WILL BE CONDUCTED VIRTUALLY PUBLIC ACCESS TO THE MEETING IS AVAILABLE BY TELEPHONE: TOLL FREE CONFERENCE LINE: 800-201-5203 KANSAS CITY: 816-897-0010 ST. LOUIS: 314-627-1157 ACCESS CODE: 264716

Regular Meeting

1. Roll Call

2. Approval of Minutes for the March 31, 2021 Regular Meeting

3. Report of Chairman

4. Report of Staff a. SAFHR Update b. Recommendation for AHAP Approvals c. Recommendation for Selection of Bond Underwriters d. Recommendation to Fund 4% Rolling Applications e. Recommendation to Extend Master Servicer Agreement

5. Such other matters that may come before the Commission

1) Roll Call

Missouri Housing Development Commission

Roster

Governor:

Mike Parson Governor

Commissioner: Lieutenant Governor and Chairman: Garrick Hamilton Lieutenant Governor Commissioner:

Treasurer: Danny P. Chadakhtzian

Scott Fitzpatrick State Treasurer Commissioner:

Stephen J. Parshall Attorney General:

Eric Schmitt Attorney General

Vice Chairman:

Tracey S.C. Lewis

Secretary/Treasurer:

Mark Elliff

Commissioner:

Rick McDowell

Page 1 of 1 Rev. 1.28.21 2) Approval of Minutes for the March 31, 2021 Regular Meeting

MISSOURI HOUSING DEVELOPMENT COMMISSION Regular Meeting Minutes of Meeting Held Friday, March 31, 2021

The Regular Meeting of the Missouri Housing Development Commission was held virtually on Wednesday, March 31, 2021 at 10:00am.

Those present were: Commissioners and Persons Present to Vote for Mike Kehoe, Lieutenant Governor and Ex-Officio Members Chairman , State Treasurer Justin Smith, on behalf of Attorney General Schmitt Tracey Lewis, Vice Chairman Mark Elliff, Secretary-Treasurer Rick McDowell, Commissioner Garrick Hamilton, Commissioner Danny Chadakhtzian, Commissioner

Others Present Kayla Hahn, Governor Parson’s Office Leslie Korte, State Treasurer Fitzpatrick’s Office Henry Herschel, Lieutenant Governor Kehoe’s Office Commissioners Absent , Governor Eric Schmitt, Attorney General Stephen Parshall, Commissioner Staff Members Kip Stetzler, Executive Director Tina Beer, Director of Operations Marilyn Lappin, Director of Finance Frank Quagraine, Director of Rental Production Katie Jeter-Boldt, General Counsel Jennifer Schmidt, Deputy Director of Operations Scott Hanak, Director of Asset Management David Nickum, Director of Information Technology Sara Turk, Fiscal and Accounting Manager Gus Metz, Chief Underwriter Steve Whitson, Community Initiatives Manager Jenni Miller, Manager of HUD Programs Lynn Sigler, Operations Manager Anne Powell, Senior Staff Attorney Megan Word, Legislative Coordinator

Chairman Lieutenant Governor Kehoe called the meeting to order.

Commission meeting roll call was taken by Ms. Sigler; a quorum was present.

A motion to approve the Minutes of the Regular Meeting held on February 19, 2021 was made by Vice Chairman Lewis and seconded by Commissioner McDowell. The motion passed unanimously with a vote of 8-0.

Staff presented the State Assistance for Housing Relief (SAFHR) Program. A motion was made by Chairman Lieutenant Governor Kehoe to approve the four organizations presented to provide housing stability services. The motion was seconded by Secretary-Treasurer Elliff. The motion passed unanimously with a vote of 8-0.

A motion to approve Resolution No. 1064 authorizing the issuance of multifamily housing refunding revenue bonds was made by Chairman Lieutenant Governor Kehoe and seconded by Secretary- Treasurer Elliff. The motion passed unanimously with a vote of 8-0.

A motion to approve the 2020 Round 2, 4% Low-Income Housing Tax Credit Notice of Funding Availability was made by Chairman Lieutenant Governor Kehoe and seconded by State Treasurer Fitzpatrick. The motion passed unanimously with a vote of 8-0.

A motion to approve funding the Federal 4% rolling application presented was made by Commissioner McDowell and seconded by Vice Chairman Lewis. The motion passed unanimously with a vote of 8-0.

After inquiring of Commissioners and staff if there were other matters for the Commission to take up, and upon hearing none, Chairman Lieutenant Governor Kehoe concluded the meeting.

______Lieutenant Governor Mike Kehoe, Chairman 3) Report of Chairman

4) Report of Staff a. State Assistance for Housing Relief (SAFHR) Update

April 29, 2021

TO: Commissioners Missouri Housing Development Commission

FROM: Jenni Miller Mike Parson Manager of HUD Programs Governor Mike Kehoe SUBJECT: State Assistance for Housing Relief (SAFHR) Update Lieutenant Governor Chairman Staff developed the State Assistance for Housing Relief Program (the “SAFHR Scott Fitzpatrick Program”) to administer the state share of federal Emergency Rental Assistance funds State Treasurer authorized by the Consolidated Appropriations Act, 2021 and distributed by the U.S. Eric Schmitt Department of the Treasury. The SAFHR Program assists qualifying households unable Attorney General to pay rent and utilities due to the COVID-19 pandemic. Staff provides the following Mark Elliff SAFHR updates on marketing, funding, duplication of benefits clearinghouse, housing Secretary-Treasurer stability services and general stimulus funding. Rick McDowell Commissioner Marketing Garrick Hamilton  Website/Social Media Commissioner  Landlord and Renter Brochures Tracey S.C. Lewis  Targeted Outreach Efforts Vice Chairman  Housing Stability Agencies Outreach Danny P. Chadakhtzian Commissioner  Comprehensive Report of Activities  Schedule of Future Outreach Stephen J. Parshall Commissioner  Coordinated Outreach Event

Funding  SAFHR Awards Approved Kip Stetzler  Landlord Portal Open Executive Director Duplication of Benefits Clearing House Kansas City  Database Now Operating 920 Main, Suite 1400 Kansas City, MO 64105  SAFHR Opened to entire State April 1, 2021 816-759-6600 Fax 816-301-7000 Housing Stability Services RFP Responses St. Louis  Brought on Two New Service Providers 505 N. 7th Street  RFP Remains Open 20th Floor, Suite 2000  Service Coverage St. Louis, MO 63101 www.mhdc.com General Stimulus Funding  Federal Funding Summaries  Evaluating New Eligible Activities to Plan for Future  American Rescue Plan: Homeowner Assistance Funds

4) Report of Staff b. Recommendation for AHAP Approvals

2021 - Recommended AHAP Production Applications

AHAP Credits Project # Non-Profit Name Agency City Purpose Recommended

21-001-AHAP Habitat for Humanity of St. Francois County, Inc. Farmington New construciton of Habitat for Humanity single family homes. $ 70,000

New construction of a building to house 11 aged out of foster 21-003-AHAP Drumm Center for Children Kansas City care children. $ 345,615

21-004-AHAP Council Apts., Inc University City New construction of senior center in Crown Center Apartments. $ 550,000 Funds will be used to help fund 2 buildings that focus on housing and services for individuals, families, youth and 21-005-AHAP The Kitchen, Inc Springfield veterans of an emergency shelter. $ 400,000

New construction of a building to house victims of domestic and 21-006-AHAP Hope Haven of Cass County INC Harrisonville sexual violence. $ 55,000

Rehabilitation of the 2nd floor of a facility which will add 11 ADA 21-007-AHAP River of Refuge Kansas City apartments for families that are homeless. $ 1,000,000 4) Report of Staff c. Recommendation for Selection of Bond Underwriters

April 29, 2021

TO: Board of Commissioners Missouri Housing Development Commission Mike Parson Governor FROM: Marilyn Lappin Mike Kehoe Director of Finance Lieutenant Governor Chairman SUBJECT: Recommendation to Select Bond Underwriters Scott Fitzpatrick and Selling Group Members State Treasurer

Eric Schmitt Attorney General Proposals were received from twenty-two firms in response to the RFP for Bond Tracey S.C. Lewis Underwriters and Selling Group Members. The responses include eight proposals to Vice Chairman serve as senior manager/book-runner to underwrite and sell MHDC’s single family and Mark Elliff multifamily mortgage revenue bonds. Secretary‐Treasurer Rick McDowell Currently, the bond underwriting team as selected in 2016 includes the following firms: Commissioner Garrick Hamilton Rotating Senior Managers/Book-Runners Commissioner George K. Baum & Company1 and Stifel, Nicolaus & Company Danny P. Chadakhtzian Co-Managers Commissioner BoA Securities, RBC Capital Markets, Stern Brothers & Co. and UMB Bank Stephen J. Parshall Rotating Co-Managers/Selling Group Members: Commissioner Drexel Hamilton, Fidelity Capital Markets, and Raymond James & Associates 2 Selling Group FTN Financial Capital Markets, Great Pacific Securities, Piper Sandler and Robert

W. Baird & Co. Kip Stetzler Executive Director Staff reviewed and evaluated the proposals taking into consideration qualifications and experience, including housing finance experience, sales and distribution capabilities, state Kansas City 920 Main, Suite 1400 housing finance agencies served, prior experience with MHDC, and presence in the state Kansas City, MO 64105 of Missouri. Proposals for Senior Manager were also considered for selection as a Co- 816‐759‐6600 Fax 816‐301‐7000 Manager or Selling Group Member and applicants for Co-Manager were also considered as Selling Group Member. St. Louis 505 N. 7th Street 20th Floor, Suite 2000 St. Louis, MO 63101 www.mhdc.com

1 Stifel, Nicolaus & Company acquired George K. Baum & Company in September 2019.

2 In 2020 FTN Financial Capital Markets declined further participation and Great Pacific Securities submitted no orders (2016-2021). RECOMMENDATION

Staff completed review of the proposals and makes the following recommendations.

Rotating Senior Managers/Book-Runners: Stifel, Nicolaus & Company and Raymond James & Associates

Staff recommends the book running responsibility be rotated between Stifel, Nicolaus & Company (Stifel) and Raymond James & Associates (RJ). These firms are among the top ten housing senior bond underwriters and have significant experience, serving as senior book-runners for a number of state housing finance agencies. Stifel, headquartered in Missouri, has provided quality service as MHDC’s current senior book-runner. RJ has performed well as a rotating co-manager and selling group member, providing orders for MHDC’s bonds. These firms have extensive experience in municipal housing finance and together have 35 full-time tax-exempt housing professionals on staff. The leadership and depth of expertise of these firms should serve MHDC well in the current market environment. The sales and distribution capabilities of the two firms align well for successful retail and institutional bond sales.

Co-Managers: BofA Securities, RBC Capital Markets, Stern Brothers & Co. (WBE), and UMB Bank

The co-managers share in a portion of the underwriting responsibility and liability with the senior firms. These firms consist of Missouri firms, including one woman-owned firm, and firms with a significant number of Missouri accounts that provide additional access to Missouri retail markets, as well as national firms, providing expanded access to national retail sales. Each of these firms has provided sales support for MHDC bond issues as current co-managers.

Rotating Co-Managers/Selling Group Members: Drexel Hamilton (SDVOB) and Robert W. Baird & Co.

A rotation of firms to serve as co-manager or selling group member is proposed so that a fifth firm is included as a co-manager in the underwriting syndicate for each bond series marketed. These rotating firms will share in a portion of the underwriting responsibility and liability when serving in the co- manager capacity. Plans are to rotate these firms in the co-manager and selling group capacities with any adjustments to the rotation role of these firms, if warranted, based on staff’s assessment of performance. Drexel Hamilton has been active in the Commission’s underwriting syndicate as a rotating co-manager/selling group member and R.W. Baird has served as a selling group member. Drexel Hamilton, a service disabled veteran owned firm, has continued to expand its municipal expertise. R.W. Baird is a top underwriter of municipal bonds.

Selling Group: Bancroft Capital (SDVOB), Mischler Financial Group (SDVOSB/MBE), Piper Sandler, Hilltop Securities, Morgan Stanley, Siebert Williams Shank & Co. (MWBE), and UBS Financial Services

These firms, including two service-disabled veteran-owned businesses and a minority & women- owned business enterprise, provide additional access to Missouri retail markets as well as expanded access to national retail sales. This selling group is proposed to provide an opportunity to firms and to enhance the distribution of MHDC bonds. Based on evaluation of sales performance, staff may terminate non-performing members of the selling group on future bond transactions, if warranted. As stated in the RFP, MHDC reserves the right to end the term of service or change the status and role of any firm selected pursuant to this RFP at any time prior to the expiration of the stated term of service.

Staff does not recommend the following firms: 280 Securities, American Veterans Group, AmeriVet Securities, DA Davidson & Co., Great Pacific Securities, J.P. Morgan, and KeyBanc Capital Markets due to past limited participation on MHDC bond issues, lack of Missouri presence and missing information from the proposal such as standard of conduct and federal work authorization requirements.

Staff recommends the above firms as listed for senior underwriters, co-managers, rotating co- managers/selling group members and selling group members for a period of three years with the Commission’s option to extend for one additional two-year period. In addition, the recommendation includes authorizing staff to change the status of the rotating co-managers/selling group members and terminating any non-performing members of the selling group on future bond transactions, if warranted. 4) Report of Staff d. Recommendation to Fund 4% Rolling Applications

2020 - Recommended Tax Exempt Bond *Rolling Applications 4% Federal LIHTC

New Set-Aside preference / Rehab Senior / Service Enriched / Federal 4% Tax Exempt Project # Units Conv Family Veteran's Services Development Name Developer City Tax Credits Bond - Const.

Wellington Family Wellston Community Empowerment 20-422 186 Rehab Family Yes Homes Corp. w/BGC Advantage St. Louis $ 1,461,000 $ 19,350,000

Senior Park Place Senior Housing Developer, 20-424 242 Rehab 62+ Yes Park Place Apartments LLC St. Louis $ 2,405,792 $ 35,500,000

Ridgeview Heights 20-425 192 Rehab Family No Apartments EPD Series 3, LLC Kansas City $ 750,609 $ 10,500,000

20-426 204 Rehab Family No Cloverleaf Apartments EPD Series 3, LLC Kansas City $ 1,118,579 $ 17,200,000

* Rolling Applications are "applications for 4% Credits that do not include a request for other MHDC-administered funds..." (Page 3, MHDC FY2020 Qualified Allocation Plan) Salient Facts:

Region Saint Louis MHDC Property Number 20-422 Property Name Wellington Family Homes Developer Name Wellston Community Empowerment Corp. w/BGC Advantage (Master Develooper) Location St. Louis Occupancy Family Construction Acquisition/Rehab Priority (if applicable) Non-Profit, Service Enriched, Special Needs Population Property Type Single Family Two Story Row Building with Elevator Duplexes Single Story Row Building without Elevator Description of Property: Acquisition/Rehab of 186 studio, one, two, three, four and five bedroom apartments for families in 76 buildings in Wellston, Missouri. The development will offer services to the residences and the proposal will set aside 28 units for special needs housing.

Reasons for Recommendations: 1. Development has 100% rental subsidy so tenants only pay 30% of their income in rent. 2. Service enriched proposal with services for families with children and formerly homeless individuals. 3. Set-aside preference proposal with 28 units set aside for special needs population.

Loan Information

Permanent Sources Construction Sources Dwight Capital 221d4 Mortgage $19,350,000 MHDC Seller Financing $2,000,000 Tax Credit Equity $2,512,669 Seller Financing $2,000,000 Federal LIHTC Equity $12,563,344 Const. Tax Exempt Bond Loan $19,350,000 Federal and State Historic $0 Dwight Capital Const. Loan $6,950,000 AHAP Donation $0 Costs/Fees Post Construction $3,360,750 Deferred Developer Fee $260,075 Total Construction Sources $34,173,419 Total Sources: $34,173,419

Uses: Construction Costs $19,000,000 Architect and Engineering $465,000 Construction Interest $1,264,989 Contingency $1,900,000 Closing Legal $200,000 Environmental Abatement $200,000 Relocation Expense $465,000 Furniture and Fixtures $30,000 Acquisition Costs $4,710,010 Developer\Construction Fee $2,325,000 MHDC and Related Costs $32,000 Reserves $1,647,000 Other Development Costs $1,934,420 Total Uses: $34,173,419 w/o Reserves & Total Reserves MHDC Fees MHDC Fees Development Costs $34,173,419 $1,647,000 $32,000 $32,494,419 Costs per Unit $183,728 $8,855 $172 $174,701 Property Data:

Breakdown by Unit Type Type # of Units Sq Ft Net Rent Market % of Market Efficiency 20 341 $671 $450 149% 1 Bed 40 565 $731 $550 133% 2 Bed 26 930 $938 $650 144% 3 Bed 45 1475 $1,224 $930 132% 4 Bed 27 1285 $1,440 $958 150% 5 Bed 28 1630 $1,656 $1,110 149%

Total Number of Units 186 Total LIHTC Units 186 Total Market Units 0

Income and Expense Data Total Per Unit Gross Income $2,314,751 $12,445 Underwritten Expenses $1,318,542 $7,089 Operating Income $996,209 $5,356 Debt Service $899,522 $4,836 Net Operating Income $96,688 $520

Year 1 Year 15 Debt Service Coverage 1.11 1.18

Tax Credit Information Amount Price Per Credit Per LIHTC Unit Per Unit (All) Federal Low Income $1,461,000 $0.86 $7,855 $7,855 State Low Income $0 $0.00 $0 $0 Federal Historic $0 $0.00 $0 $0 State Historic $0 $0.00 $0 $0 Salient Facts:

Region Saint Louis MHDC Property Number 20-424 Property Name Park Place Apartments Developer Name Park Place Senior Housing Developer, LLC Location St. Louis Occupancy Senior 62+ Construction Acquisition/Rehab Priority (if applicable) Service Enriched, Preservation Property Type Single Family Two Story Row Building with Elevator Duplexes Single Story Row Building without Elevator Description of Property: Acquisition/Rehab of a 242, one bedroom unit, 4-story elevator building for seniors 62 and older with project-based Section 8 rental assistance.

Reasons for Recommendations: 1. Development has 100% rental subsidy so tenants only pay 30% of their income in rent. 2. Great service package with two full-time service coordinators. 3. Preserves 242 quality post-rehab affordable units for seniors

Loan Information

Permanent Sources Construction Sources Income from Operations $1,978,000 Tax-Exempt Bond Mortgage $35,500,000 Tax-Exempt Bond Mortgage $35,500,000 Tax Credit Equity $17,319,970 Income from Operations $1,978,000 Federal LIHTC Equity $21,649,963 Costs/Fees Post Construction $4,480,376 Federal and State Historic $0 Total Construction Sources $59,278,346 AHAP Donation $0 Deferred Developer Fee $150,383 Total Sources: $59,278,346

Uses: Construction Costs $12,517,023 Architect and Engineering $375,000 Construction Interest $1,513,188 Contingency $1,136,162 Closing Legal $0 Environmental Abatement Relocation Expense $423,500 Furniture and Fixtures $75,000 Acquisition Costs $35,770,500 Developer\Construction Fee $3,750,000 MHDC and Related Costs $15,500 Reserves $1,798,068 Other Development Costs $1,904,405 Total Uses: $59,278,346 w/o Reserves & Total Reserves MHDC Fees MHDC Fees Development Costs $59,278,346 $1,798,068 $15,500 $57,464,778 Costs per Unit $244,952 $7,430 $64 $237,458 Property Data:

Breakdown by Unit Type Type # of Units Sq Ft Net Rent Market % of Market 1 Bed 242 497 $1,295 $1,295 100%

Total Number of Units 242 Total LIHTC Units 242 Total Market Units 0

Income and Expense Data Total Per Unit Gross Income $3,899,644 $16,114 Underwritten Expenses $1,463,442 $6,047 Operating Income $2,436,202 $10,067 Debt Service $1,738,476 $7,184 Net Operating Income $697,726 $2,883

Year 1 Year 15 Debt Service Coverage 1.40 1.69

Tax Credit Information Amount Price Per Credit Per LIHTC Unit Per Unit (All) Federal Low Income $2,405,792 $0.90 $9,941 $9,941 State Low Income $0.00 $0 $0 Federal Historic $0 $0.00 $0 $0 State Historic $0 $0.00 $0 $0 Salient Facts:

Region Kansas City MHDC Property Number 20-425 Property Name Ridgeview Heights Apartments Developer Name EPD Series 3, LLC Location Kansas City Occupancy Family Construction Acquisition/Rehab Priority (if applicable) Preservation Property Type Single Family Two Story Row Building with Elevator Duplexes Single Story Row Building without Elevator Description of Property: Acquisition/Rehab of 192 one, two and three bedroom apartments for families in 18 garden style residential buildings in Kansas City near the VA Medical Center.

Reasons for Recommendations: 1. Property includes 45 project based vouchers so tenants only pay 30% of their income toward rent. 2. Healthcare, retail and recreational uses are located in close proximately to site. 3. Property provides good quality affordable housing for families that is in strong demand in the area. 4. Preserves 192 quality post-rehab affordable units for families.

Loan Information

Permanent Sources Construction Sources Cash Flow from Operations $500,000 MHDC Perm Tax Exempt Bond Mortgage $10,500,000 Tax Credit Equity $4,623,643 Const. Tax Exempt Bond Loan $10,500,000 Federal LIHTC Equity $6,604,699 Income from Operations $500,000 Federal and State Historic $0 Costs/Fees Post Construction $2,513,425 AHAP Donation $0 Total Construction Sources $18,137,068 Deferred Developer Fee $532,369 Total Sources: $18,137,068

Uses: Construction Costs $8,200,000 Architect and Engineering $230,000 Construction Interest $445,000 Contingency $820,000 Closing Legal $75,000 Environmental Abatement $0 Relocation Expense $100,000 Furniture and Fixtures $10,000 Acquisition Costs $4,625,000 Developer\Construction Fee $1,560,875 MHDC and Related Costs $15,500 Reserves $1,077,550 Other Development Costs $978,143 Total Uses: $18,137,068 w/o Reserves & Total Reserves MHDC Fees MHDC Fees Development Costs $18,137,068 $1,077,550 $15,500 $17,044,018 Costs per Unit $94,464 $5,612 $81 $88,771 Property Data:

Breakdown by Unit Type Type # of Units Sq Ft Net Rent Market % of Market 1 Bed 20 734 $635 $735 86% 2 Bed 152 861 $735 $860 85% 3 Bed 20 990 $895 $1,060 84%

Total Number of Units 192 Total LIHTC Units 192 Total Market Units 0

Income and Expense Data Total Per Unit Gross Income $1,616,191 $8,418 Underwritten Expenses $949,130 $4,943 Operating Income $667,061 $3,474 Debt Service $546,361 $2,846 Net Operating Income $120,700 $629

Year 1 Year 15 Debt Service Coverage 1.22 1.28

Tax Credit Information Amount Price Per Credit Per LIHTC Unit Per Unit (All) Federal Low Income $750,609 $0.88 $3,909 $3,909 State Low Income $0 $0.60 $0 $0 Federal Historic $0 $0.00 $0 $0 State Historic $0 $0.00 $0 $0 Salient Facts:

Region Kansas City MHDC Property Number 20-426 Property Name Cloverleaf Apartments Developer Name EPD Series 3, LLC Location Kansas City Occupancy Family Construction Acquisition/Rehab Priority (if applicable) Preservation Property Type Single Family Two Story Row Building with Elevator Duplexes Single Story Row Building without Elevator Description of Property: Acquisition/Rehab of 204 units (108 two-bedroom and 96 three-bedroom) in 17 residential buildings. The property was originaly built in 1972.

Reasons for Recommendations: 1. Development has 100% rental subsidy so tenants only pay 30% of their income in rent. 2. Preserves 204 quality post-rehab affordable units for families. 3. Demonstrates need of rehabilitation and updates

Loan Information

Permanent Sources Construction Sources Cash Flow from Operations $250,000 MHDC $0 Tax Exempt Bond Loan $17,200,000 Tax Credit Equity $7,392,155 Cash Flow from Operations $250,000 Federal LIHTC Equity $9,842,512 Tax Exempt Bond Loan $17,200,000 Federal and State Historic $0 Costs/Fees Post Construction $3,082,600 AHAP Donation $0 Total Construction Sources $27,924,755 Deferred Developer Fee $632,243 Total Sources: $27,924,755

Uses: Construction Costs $10,500,000 Architect and Engineering $245,000 Construction Interest $718,100 Contingency $1,050,000 Closing Legal $100,000 Environmental Abatement $0 Relocation Expense $175,000 Furniture and Fixtures $0 Acquisition Costs $10,137,500 Developer\Construction Fee $2,144,456 MHDC and Related Costs $15,500 Reserves $1,453,144 Other Development Costs $1,386,055 Total Uses: $27,924,755 w/o Reserves & MHDC Total Reserves MHDC Fees Fees Development Costs $27,924,755 $1,453,144 $15,500 $26,456,111 Costs per Unit $136,886 $7,123 $76 $129,687 Property Data:

Breakdown by Unit Type Type # of Units Sq Ft Net Rent Market % of Market 2 Bed 108 750 $675 - $985 $805 84% - 122% 3 Bed 96 900 $775 - $1070 $960 81% - 111%

Total Number of Units 204 Total LIHTC Units 204 Total Market Units 0

Income and Expense Data Total Per Unit Gross Income $2,344,437 $11,492 Underwritten Expenses $1,281,572 $6,282 Operating Income $1,062,865 $5,210 Debt Service $901,531 $4,419 Net Operating Income $161,334 $791

Year 1 Year 15 Debt Service Coverage 1.18 1.28

Tax Credit Information Amount Price Per Credit Per LIHTC Unit Per Unit (All) Federal Low Income $1,118,579 $0.88 $5,483 $5,483 State Low Income $0 $0.00 $0 $0 Federal Historic $0 $0.00 $0 $0 State Historic $0 $0.00 $0 $0 4) Report of Staff e. Recommendation to Extend Master Servicer Agreement

April 29, 2021

To: Commissioners Missouri Housing Development Commission Mike Parson Governor From: Rick Laughrey Mike Kehoe Homeownership Manager Lieutenant Governor Chairman Scott Fitzpatrick Subject: Request for Approval to Extend Master Servicer Agreement State Treasurer Eric Schmitt Attorney General In April 2020, the Commission selected a master servicer through a Tracey S.C. Lewis Vice Chairman competitive request for proposal process. At that time, proposals were Mark Elliff received from the following 3 firms: Secretary-Treasurer Rick McDowell  ServiSolutions, Alabama Housing Finance Authority Commissioner  U.S. Bank Garrick Hamilton Commissioner  Lakeview Loan Servicing Danny P. Chadakhtzian Commissioner The Commission selected U.S. Bank to serve for a period of one year with Stephen J. Parshall the option to extend for two additional one year terms. Commissioner

Staff recommended U.S. Bank last year due to their financial strength, depth and experience of HFA loan servicing, competitive pricing, and their vast Kip Stetzler banking presence in the state of Missouri. Staff has been pleased with the Executive Director service provided by U.S. Bank and servicing rights pricing will remain consistent and competitive if the term is extended. Kansas City 920 Main, Suite 1400 Kansas City, MO 64105 Staff recommends exercising the option to extend the term of service an 816-759-6600 Fax 816-301-7000 additional one year with the option of extending another additional one year.

St. Louis 505 N. 7th Street 20th Floor, Suite 2000 St. Louis, MO 63101 www.mhdc.com

5) Such other matters that may come before the Commission