annual meeting of the missouri housing development

Annual Meeting of the Missouri Housing Development Commission

Friday, April 20, 2012

Meeting Materials

of 2 Rev. 02/09/12 dg

Date Meeting Type and Location Additional Information

February 17, 2012 Friday – 8:00 AM

Asset Management Committee Meeting Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

Discussion of Watch List Properties

February 17, 2012 Friday – 9:00 AM

Asset Management Committee Meeting Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

Approval of Rental Production Proposals (Remainder of Funds) Approval of 4% Round 2 Notice of Funding Availability

April 20, 2012 Friday – 9:00 AM

Annual Commission Meeting Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

Election of Officers

May 24, 2012 Thursday – 9:00 AM (Full Day Event)

Planning Session Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

Staff presentation regarding proposed operations and financial plan

Full day dedicated to strategic planning

May 25, 2012 Friday – 8:00 AM

Audit Committee Meeting Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

May 25, 2012 Friday – 9:00 AM

Regular Commission Meeting Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

Draft of Rental Production Qualified Allocation Plan

Draft of Trust Fund Allocation Plan Approval to present draft plans at public

meetings throughout the state Approval of Rental Production 4% Round 2

Proposals

June 22, 2012 Friday – 9:00 AM


Approval of Rental Production Qualified Allocation Plan and Trust Fund Allocation Plan

Missouri Housing Development Commission Meeting Calendar

of 2 Rev. 02/09/12 dg

Date Meeting Type and Location Additional Information

September 21, 2012 Friday – 8:00 AM

Audit Committee Meeting Stoney Creek Inn 2601 S. Providence Columbia, MO 65203

September 21, 2012 Friday – 9:00 AM


Regularly Scheduled Meeting Audit Committee Report Independent Audit Reports

December 21, 2012 Friday – 9:00 AM


Approval of Rental Production Proposals Approval of Trust Fund Proposals

Missouri Housing Development Commission will make reasonable accommodations for persons with disabilities at the public meeting site. To request an accommodation, please contact Diana Greener at (816) 759-6822.

Notice is hereby given that the Missouri Housing Development Commission will conduct its annual meeting at 9:00 AM on Friday, April 20, 2012, at

Stoney Creek Inn & Conference Center Salon B

2601 S. Providence Columbia, MO 65203

The tentative agenda of this meeting is attached to this notice. The news media may obtain copies of this notice by contacting

Diana Greener

Missouri Housing Development Commission 3435 Broadway

Kansas City, MO 64111 (816) 759-6822

[email protected]

ANNUAL COMMISSION MEETING OF THE

MISSOURI HOUSING DEVELOPMENT COMMISSION FRIDAY, APRIL 20, 2012, AT 9:00 A.M.

mailto:[email protected]�

STONEY CREEK INN & CONFERENCE CENTER, SALON B – COLUMBIA, MO

1. Roll call

2. Approval of Minutes a. Approval of minutes for the regular meeting of February 17, 2012

3. Report of Chairman

a. Nominating Committee – Election of Officers

4. Report of Staff a. Financial report and distribution of initial draft Budget for FY2013 b. Request for approval of Memorandum of Understanding for Section 811 funding c. Request for approval of funding recommendations for Homeless Management

Information Systems (HMIS) d. Request for approval of funding recommendations for Housing First Program e. Rental Production update f. Asset Management watch list

5. Such other matters that may come before the commission

6. Adjourn

ANNUAL MEETING OF THE

MISSOURI HOUSING DEVELOPMENT COMMISSION FRIDAY, APRIL 20, 2012 - 9:00 A.M.

AGENDA

TAB 1 Roll Call

of 1 Rev. 02/06/12 dg

Governor:

Jeremiah W. (Jay) Nixon Governor State Capitol Building P.O. Box 720 Jefferson City, MO 65102 573.751.3222 Attn: Ted Ardini

Brian May State of Missouri Office of the Governor Wainwright Building, Room 929 111 North 7th Street St. Louis, MO 63101 314.340.7518

Lieutenant Governor:

Peter Kinder Lieutenant Governor State Capitol Building Room 224 Jefferson City, MO 65101 573.751.4727 Attn: Bill Kenney Pam Dixon

Treasurer:

Clint Zweifel State Treasurer State Capitol Building P.O. Box 210 Jefferson City, MO 65102 573.751.8533 Attn: Angie Heffner Robyn Jon Galloway

Attorney General:

Chris Koster Attorney General Supreme Court Building 207 W. High Street P.O. Box 899 Jefferson City, MO 65102 573.751.3321 Attn: Andrew Hartnett

Chairman:

Jeffrey S. Bay (Chairman) Van Osdol and Magruder, P.C. 911 Main St., Suite 2400 Kansas City, MO 64105 816.421.0644

Vice Chairman:

Troy L. Nash (Vice Chairman) Zimmer Real Estate 1220 Washington Street, Suite 100 Kansas City, MO 64105 816.268.4230

Secretary Treasurer:

John Stanfield (Secretary-Treasurer) 427 Waterway St. Charles, MO 63304 Phone: 314.574.5611

Commissioners:

David B. Cosgrove 527 Newport Avenue Webster Groves, MO 63119 Phone: 314-563-2490

Missouri Housing Development Commission Roster

TAB 2 Approval of Minutes

MISSOURI HOUSING DEVELOPMENT COMMISSION Regular Meeting

Minutes of Meeting Held on Friday, February 17, 2012

A regular meeting of the Missouri Housing Development Commission was held on Friday, December 17, 2011, at 9:00 a.m., at the Stoney Creek Inn, 2601 S. Providence Road, Columbia, Missouri. Those present were:

Commissioners and Persons Present to Vote for Ex-Officio Members

Jeffrey S. Bay, Chairman Peter Kinder, Lieutenant Governor (via telephone) Clint Zweifel, State Treasurer Joe Dandurand, Assistant Attorney General Troy Nash, Vice Chairman (via telephone) John Stanfield, Secretary/Treasurer David Cosgrove, Commissioner

Commissioners Absent Jay Nixon, Governor Chris Koster, Attorney General

Staff Members Kip Stetzler, Interim Executive Director Tina Beer, Deputy Director Heather Bradley-Geary, Community Initiatives

Manager Darnell Busch, Information Technologist Marian Campbell, Director of Asset Management Diana Greener, Purchasing Supervisor Marilyn Lappin, Director of Finance Gary Meyer, Tax Credit Administrator Sandy Middleton, Construction Manager Jennifer Tidwell, Deputy Director William Ulm, Director of Underwriting Weylin Watson, General Counsel Sheldon White, Information Technologist Megan Word, Public Relations Coordinator

Other Meeting Participants Brian May, Governor’s Office Pam Dixon, Lieutenant Governor’s Office Jon Galloway, Treasurer’s Office

Chairman Bay called the meeting to order and roll call was taken by Ms. Word. A quorum was present. A motion was made by Commissioner Stanfield and seconded by Commissioner Nash to approve minutes from the last Commission meeting held on December 16, 2011. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0.

Chairman Bay discussed the appointment of Commissioners to the Nominating Committee – Chairman Bay, Commissioners Nash, Cosgrove and Stanfield, and Brian May from the Governor’s office were appointed. Commissioner Cosgrove and Marian Campbell presented the Asset Management Committee report. The Report of Staff followed. Marilyn Lappin presented the financial statement information as of December 2011 and a mid-year review of the Operating Fund budget as of December 31, 2011. Weylin Watson requested approval of the final Administrative Rules for the Missouri Housing Trust Fund. A motion was made by Commissioner Cosgrove and seconded by Commissioner Nash to approve the rules. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. Heather Bradley-Geary requested approval to issue the Notice of Funding Availability for Housing First. A motion was made by State Treasurer Zweifel and seconded by Commissioner Cosgrove to approve the issuance of the NOFA. A roll call vote was taken and the motion passed unanimously with a vote 7 to 0. Heather Bradley-Geary requested approval to issue the Notice of Funding Availability for the HMIS system. A motion was made by State treasurer Zweifel and seconded by Commissioner Stanfield to approve the issuance of the NOFA. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. Marilyn Lappin requested approval to extend MHDC’s agreement with bond counsel. A motion was made by Lieutenant Governor Kinder and seconded by Commissioner Nash to extend the agreement for an additional year through April 2013, with an option remaining for one additional one-year extension. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. Marilyn Lappin requested approval to extend MHDC’s agreement with financial advisors. A motion was made by Commissioner Stanfield and seconded by Commissioner Cosgrove to extend the agreement for an additional year through July 31, 2013, with the option remaining for an additional extension for one year. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. Bill Ulm requested approval of funding recommendations for Rental Production; he presented MHDC staff recommendations. State Treasurer Zweifel asked that a stakeholder meeting be held to review the FY 2012 process for special needs projects. Commissioner Nash complimented MHDC staff on the new MBE / WBE goals for the FY 2012 process. A motion was made by State Treasurer Zweifel and seconded by Commissioner Stanfield to approve the funding recommendations for the Kansas City region. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. A motion was made by State Treasurer Zweifel and seconded by Commissioner Nash to approve staff’s funding recommendations for the St. Louis region. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0.

A motion was made by State Treasurer Zweifel and seconded by Commissioner Cosgrove to approve staff’s funding recommendations for the outstate region. A roll call vote was taken and the motion passed with a vote of 6 to 0; Commissioner Nash abstained from the vote. A motion was made by Commissioner Cosgrove and seconded by Commissioner Stanfield to approve staff’s funding recommendations for reservation of 4% tax credits. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. Bill Ulm requested approval of Resolution 1021: the issuance of multifamily housing revenue bonds for Friendship Village Apartments. A motion was made by Commissioner Nash and seconded by Commissioner Cosgrove to approve the Resolution. A roll call vote was taken and the motion passed unanimously with a vote of 7 to 0. Bill Ulm requested approval to issue the Notice of Funding Availability for the 4% Federal and State Low Income Housing Tax Credits, Round II. A motion was made by State Treasurer Zweifel and seconded by Commissioner Cosgrove to approve the issuance of the NOFA. A roll call vote was taken and the motion passed unanimously with a vote 7 to 0. Bill Ulm presented a rental production update. No questions were asked. Marian Campbell presented the asset management watch list. No questions were asked. Chairman Bay asked if there were any other matters for the Commission’s consideration. Lieutenant Governor Kinder discussed the prevailing wage requirement and the process by which the QAP is amended. A motion was made by State Treasurer Zweifel and seconded by Commissioner Stanfield to adjourn. The meeting was adjourned. ________________________________________________ Jeffrey S. Bay, Chairman

TAB 3 Report of Chairman

Nominating Committee (no documents are included under this tab)

TAB 4(a) Report of Staff

Financial report and distribution

initial draft budget for FY2013

FINANCIAL REPORT

FOR THE MONTH OF FEBRUARY 2012

Financial Reporting Package

for the month of February 2012 and the period then ended

Index Page: 1 – 2 Executive Summary for the month 3 Key Financial Information 4 Asset Quality 5 Balance Sheet

6 Budget for Use of Net Assets (Fund Balances) for Fiscal Year 2012 Mortgage Revenue Bond Activity HUD Purchase Loan Program

7 Condensed Statement of Revenue and Expenses for the month,

including the effects of GASB Statement No. 31 7a Condensed Statement of Revenues and Expenses for the month, actual

compared to budget (excluding the effects of GASB Statement No. 31)

8 Condensed Statement of Revenue and Expenses for the period July 1,

2011 to February 29, 2012, including the effects of GASB Statement No. 31

8a Condensed Statement of Revenue and Expenses for the period July 1,

2011 to February 29, 2012, actual compared to budget (excluding the effects of GASB Statement No. 31)

9 Loan Servicing Report

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MISSOURI HOUSING DEVELOPMENT COMMISSION FINANCIAL REPORT - EXECUTIVE SUMMARY

February 2012

Assets Total assets, as reported, were $2,292,212,000 as compared to $2,378,078,000 at the end of the previous fiscal year. Excluding the effects of GASB Statement No. 31, assets totaled $2,192,389,000 at February 29, 2012 as compared to $2,290,517,000 at June 30, 2011. MHDC’s asset base continues to have a high-quality and low-risk profile. Approximately 48% of total assets are comprised of guaranteed mortgage-backed securities (page 4). MHDC has no subprime loans, no variable rate debt and no interest rate swaps or similar instruments. MHDC’s conservative asset base and careful management has MHDC well positioned in the current economic environment. Mortgages and Mortgage-Backed Securities The cost basis of new homeownership mortgage-backed securities purchased total $143.1 million in the fiscal year. Net of scheduled principal payments and loan prepayments, the cost basis of homeownership bond-financed mortgage-backed securities and loan portfolio has decreased $66.2 million in the fiscal year. In the Rental bond-financed program, one conduit rental project loan has been closed in the amount of $6.8 million in the fiscal year. Principal pay-downs and prepayments in the Single Family Homeownership portfolio are 14% annualized (17% in 2011 and 25% in 2010). In the Multifamily Rental portfolio, principal pay-downs and prepayments are 17% annualized (2% in 2011 and 4% in 2010). Bond Issues and Other Debt One conduit multifamily bond issue in the amount of $6.8 million has been funded during the fiscal year. One Single Family Homeownership bond issue in the amount of $50.0 million has been funded during the fiscal year (page 6). Bond pay downs have totaled $158.7 million. During this fiscal year, new FHLB Advances totaling $126.2 million have financed the MBS Warehousing Program. Results of Operations: Month of February For the month of February (page 7a), net operating results amounted to an increase of $1,264,000 before including the effects of GASB Statement No. 31, (see additional information below). Operating Revenue over Expenses is $570,000 more than budget. Results of Operations: Year-to-Date Fiscal 2012 Year-to-date for this fiscal year (see page 8a), net operating results amounted to an increase of $17,125,000 before including the effects of GASB Statement No. 31, (see additional information below). Operating Revenue over Expenses, excluding GASB 31,

2

is $12,251,000 more than budget. Federal Programs Year to date, Federal Grant Revenues include $82.3 million in Project Based Section 8 Housing Assistance Payments, $5.5 million in TCAP and LIHTC Exchange funds and $11.4 million in HOME Investment Partnership Program funds. These federal programs provide important resources for achieving the objectives of the Commission. The Commission’s efforts to preserve affordable housing, including preservation of the Housing Assistance Payment Contracts, are vital for continuing this economic resource for the State of Missouri. Effects of GASB 31 Governmental Accounting Standards Board (GASB) Statement No. 31 “Accounting and Financial Reporting for Certain Investments and for External Investment Pools” was instituted in 1998 and established fair value accounting for investment securities, such as U.S. government and agency securities; and GNMA, Fannie Mae and FHLMC mortgage-backed securities. GASB Statement No. 31 requires that these investments be reported at fair value on the balance sheet and that changes in fair value be reported as revenue in the operating statement. During periods of rising market interest rates relative to the stated rates of our portfolio, the fair value of our investments and mortgage-backed securities will decline. Conversely, when market interest rates fall below those of the stated rates of our portfolio, the fair value of our investments and mortgage-backed securities will increase. The required implementation of GASB Statement No. 31 has caused a decrease of $4,454,000 in the fair value of investments and our mortgage-backed security portfolio during February (see page 7). During February, interest rates have increased above the level of the previous month-end, causing a corresponding decrease in the fair value of mortgage-backed securities and other investments. Overall, the required implementation of GASB Statement No. 31 has caused an increase of $17,998,000 in the fair value of investments and our mortgage-backed security portfolio during the fiscal year (page 8). During this fiscal year, interest rates have decreased below the level of the previous year-end, causing a corresponding increase in the fair value of mortgage-backed securities and other investments. Depending on future financial markets, we can expect interest rate fluctuations to have a continuing material effect on our financial statements.

Missouri Housing Development CommissionKey Financial Information as of February 29, 2012

($ in thousands) 2009 2010 2011 2/29/12

Total assets * 2,182,093 2,259,015 2,192,899 2,102,120

Total debt * 1,542,646 1,574,198 1,467,351 1,357,358

Total equity * 531,338 561,600 592,210 615,071

Revenues * 112,506 102,719 102,957 96,489

Net income * 15,923 16,029 5,714 13,709

Total loans and MBS 1,601,845 1,559,247 1,628,287 1,523,126

FHA Risk-Share Loans 157,740 173,885 201,175 182,408

Nonperforming assets 599 2,602 2,453 275

Loan loss reserves 42,768 44,100 44,362 44,172

* NOTES:

Asset values exclude conduit debt issues and are adjusted to eliminate the effects of market value accounting (GASB Statement No. 31).

Debt values exclude conduit issues.

Equity values are adjusted to exclude the effects of market value accounting (GASB Statement No. 31).

Revenue and net income values exclude the effects of market value accounting (GASB Statement No. 31) and

federal grants and assistance (pass-through revenues and disbursements). These values are projected for FY 2012.

6/30/2010 6/30/2011 FY 12 Budget 2/29/12

PROFITABILITY (%)

Financial Ratio Analysis

Trend Analysis

Annualized growth rate of total assets is -6.21% at February 29, 2012, compared to -2.93% in FY11. Strategic Plan target is 5% annually.

Return on Average Assets ** 0.72 0.26 (0.05) 0.64 Return on average assets, excluding subsidy programs & special initiative 0.87 0.99 0.36 0.92 Return on Assets before Loan Loss Provision and Extraordinary item 0.77 0.27 (0.01) 0.65 Return on assets before loan loss provision and extraordinary item, excluding subsidy programs & special initiatives 0.91 1.02 0.39 0.94 Return on Average Equity *** 2.93 0.99 (0.17) 2.27 Net interest margin 0.86 1.04 0.68 0.97 ASSET QUALITY (%)Non-performing assets / Total Loans, MBS and real estate owned 0.167 0.150 0.050 0.018 Loan Loss Reserves / Total Loans and MBS 2.83 2.72 2.89 2.90 Loan Loss Reserves / Risk-Share Loans and Non-Performing Assets 24.99 21.79 22.46 24.18 LEVERAGE (%)Total Equity / Total Assets 24.86 27.01 26.91 29.26 Total Equity and Reserves / Total Loans and MBS 38.85 39.09 41.18 43.28

** 1% Strategic Plan target

*** 4% Strategic Plan target

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Missouri Housing Development CommissionAsset Quality Information and Summary Effects of GASB Statement No. 31($ in thousands)

Balance Sheet 6/30/2009 6/30/2010 6/30/2011 9/30/2011 12/31/2011 2/29/2012

Total Assets as Reported 2,310,391$ 2,439,078$ 2,378,078$ 2,379,308$ 2,344,175$ 2,292,212$ Unrealized gains/losses (effect of GASB 31) # (23,978) (80,873) (87,561) (107,124) (105,256) (99,823)

Total Assets at Cost 2,286,413$ 2,358,205$ 2,290,517$ 2,272,184$ 2,238,919$ 2,192,389$

Mortgage-Backed Securities Portfolio 6/30/2009 6/30/2010 6/30/2011 9/30/2011 12/31/2011 2/29/2012

Mortgage-Backed Securities at cost 1,176,642$ 1,130,195$ 1,151,375$ 1,149,584$ 1,073,800$ 1,064,346$ as % of Total Assets at Cost 51.5% 47.9% 50.3% 50.6% 48.0% 48.5%

Mortgage-Backed Securities Portfolio Composition: % GNMA 75.3% 79.3% 83.6% 84.4% 84.1% 84.3% % Fannie Mae 21.3% 18.0% 14.3% 13.6% 13.9% 13.7% % FHLMC 3.4% 2.7% 2.1% 2.0% 2.0% 2.0%

Loan Portfolio 6/30/2009 6/30/2010 6/30/2011 9/30/2011 12/31/2011 2/29/2012

Total Loans at par 547,785$ 575,495$ 622,088$ 623,616$ 618,522$ 596,253$ Uninsured loans (includes Risk-Share, HOME & TCAP) 335,731$ 364,570$ 403,791$ 406,843$ 404,866$ 396,405$

as % of Total Assets at Cost 14.7% 15.5% 17.6% 17.9% 18.1% 18.1%

Risk-Share loans 157,740$ 173,885$ 201,175$ 200,393$ 196,125$ 182,408$ HOME loans 151,818$ 159,226$ 172,449$ 176,150$ 178,760$ 179,106$ TCAP loans -$ 14,077$ 30,081$ 30,311$ 30,320$ 30,367$ Non-performing assets (uninsured) 599$ 2,602$ 2,453$ 398$ 393$ 275$

Allowance for loan losses 42,768$ 44,100$ 44,362$ 44,362$ 44,287$ 44,172$ as % of Uninsured/Non-guaranteed loans 12.7% 12.1% 11.0% 10.9% 10.9% 11.1%

Asset Quality Ratios 6/30/2009 6/30/2010 6/30/2011 9/30/2011 12/31/2011 2/29/2012

Non-performing assets / Total Loans, MBS and real estate owned 0.037% 0.167% 0.150% 0.024% 0.025% 0.018%Loan Loss Reserves / Total Loans and MBS 2.67% 2.83% 2.72% 2.72% 2.86% 2.90%Loan Loss Reserves / Risk-Share Loans

and Non-Performing Assets 27.01% 24.99% 21.79% 22.09% 22.54% 24.18%

Fiscal Year Fiscal Year Fiscal Year Year-to-date Year-to-date Year-to-date

2009 2010 2011 Sep. 2011 Dec 2011 Feb. 2012

Revenues over expenses 70,765$ 87,157$ 37,298$ 27,411$ 39,643$ 35,123$ Reverse change in fair value (effect of GASB 31) # (49,686) (51,074) (3,524) (18,945) (24,376) (17,998) Revenues over expenses, excluding GASB 31 effects 21,079$ 36,083$ 33,774$ 8,466$ 15,267$ 17,125$

# - Effect of GASB Statement No. 31 reflects the changes in fair value of investments and mortgage-backed securities that result from changes in market interest rates.

Statement of Revenues & Expenses

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Missouri Housing Development CommissionBALANCE SHEET, unaudited (In Thousands)February 29, 2012

Rental HomeownershipOperating Bond-Financed Bond-Financed

Funds Program Program February 29, 2012 June 30, 2011(audited)

ASSETS:

CASH AND TEMPORARY INVESTMENTS 34,938$ 45,019$ 174,594$ 254,551$ 239,489$

INVESTMENTS:Certificates of Deposit 3,200 - - 3,200 Investment Agreements - 1,504 33,690 35,194 36,872 U.S. Government and Agency Securities 196,230 74,598 - 270,828 265,370

---------------------------- ---------------------------- ---------------------------- -------------------------------- -------------------------------- Total 199,430 76,102 33,690 309,222 302,242

LOANS RECEIVABLE, net of allowance for loan losses ($44,172) 269,076 280,902 1,160,040 1,710,018 1,811,764

OTHER ASSETS:Accrued Interest Receivable 2,028 1,328 4,669 8,025 8,391 Deferred Financing Charges 20 68 8,817 8,905 9,546 Fixed Assets, net of accumulated depreciation ($3,166) 976 - - 976 1,295 Real Estate Owned - - - - 2,051 Accounts Receivable, Other 728 (213) - 515 3,300

---------------------------- ---------------------------- ---------------------------- -------------------------------- -------------------------------- Total 3,752 1,183 13,486 18,421 24,583

---------------------------- ---------------------------- ---------------------------- -------------------------------- -------------------------------- Total Assets 507,196$ 403,206$ 1,381,810$ 2,292,212$ 2,378,078$

================ ================ ================ ================== ==================

LIABILITIES AND NET ASSETS:

LIABILITIESBonds and Notes Payable 90$ 284,622$ 1,162,915$ 1,447,627$ 1,564,969$ Interest Payable - 1,613 21,998 23,611 20,574 Escrow Deposits 6,997 87,407 - 94,404 97,312 Funds Due Others 341 - - 341 324 Accounts Payable 997 95 177 1,269 4,823 Deferred Fees 10,066 - - 10,066 10,305

---------------------------- ---------------------------- ---------------------------- -------------------------------- -------------------------------- Total Liabilities 18,491 373,737 1,185,090 1,577,318 1,698,307

NET ASSETSInvested in Capital Assets 976 - - 976 1,295

Restricted 226,665 29,469 196,720 452,854 423,612

Commission Designated (Unrestricted) 172,710 - - 172,710 176,528 Unrestricted and Undesignated 88,354 - - 88,354 78,336

---------------------------- ---------------------------- ---------------------------- -------------------------------- -------------------------------- Total Unrestricted 261,064 - - 261,064 254,864

Total Net Assets 488,705 29,469 196,720 714,894 679,771 ---------------------------- ---------------------------- ---------------------------- -------------------------------- --------------------------------

Total Liabilities and Net Assets 507,196$ 403,206$ 1,381,810$ 2,292,212$ 2,378,078$ ================ ================ ================ ================== ==================

Combined Totals

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BUDGET DISBURSED

Rental Housing Production and Preservation Program 7,000,000$ -$ Single-Family MRB Program Equity Contribution (see below for detail) 1,740,000 1,250,000 Bellefontaine Habilitation Center Rehabilitation Grant 6,948,952 * 4,223,613 Rental & Operating Assistance Program 579,000 110,228 Transitional Housing 420,000 - Downtown Revitalization Plan 300,000 150,000 Disaster Credit Counseling 150,000 5,600 Multifamily and Home Improvement Interest Subsidy Program 4,000 2,998

TOTAL FUND BALANCE PROGRAM BUDGET 17,141,952$ 5,742,439$

* $9,787,220 funding committed to Bellefontaine Habilitation Center rehabilitation approved 10/8/2010; $2,838,268 disbursed in FY 2011.

Authorized AppliedConstruction Lending 30,000,000$ (1) 928,000$ Single Family Homeownership Program 20,000,000 (2) 345,000 Homeowner Cash Assistance 21,500,000 (3) 5,265,000

AMOUNT AMOUNT MHDCBOND ISSUES AUTHORIZED ISSUED CONTRIBUTION

H hi

Fund Balance Revolving Funds as of February 29, 2012

FY2012 Fund Balance Budget

Mortgage Revenue Bond Activity

February 29, 2012

(1) This revolving fund is used to make market‐rate multifamily construction loans. In August 2011, $10 million of this program was set‐aside for single family construction lending for Joplin

(2) This established a $20 million fund to finance GNMA, Fannie Mae or FHLMC mortgage‐backed securities (MBS) in conjunction with MHDC's First Place bond program, or direct sale including forward delivery, as a source of continuous lending as approved at the April 17, 2009 Commission meeting. In addition, this fund will be utilized to finance MBS in conjunction with first‐time and repeat buyers from disaster areas as approved at the May 26, 2011 Commission meeting.

(3) This established funding totaling $21,500,000 for 3% cash assistance to fund homeownership closing costs and down payment. This cash assistance is recovered by means of the first loan rate or amortizing seconds. Recovered funds are recycled and reused for this same purpose. These funds include $1,000,000 earmarked for 5% cash assistance funding for borrowers from disaster areas as approved at the May 26, 2011 Commission meeting.

Homeownership: 2009 Series E-4 - NIBP Market Bonds closed 12-21-11 50,000,000$ 50,000,000$ 1,250,000$

As of February 29, 2012 $ 50,000,000 $ 1,250,000

Rental: 2011 Series I (Brookstone Village Apts.) closed 11-28-11 6,800,000$ 6,800,000$ -$

As of February 29, 2012 $ 6,800,000 $ -

Mortgage-backed securities are purchased with short-term financing provided by the FHLB. After market bondsare issued, these MBS will be transferred to the SF NIBP and the FHLB advances repaid.

Mortgage-backed Securities warehoused as of February 29, 2012 -$ FHLB Advances as of February 29, 2012 -$ Pledged general investments 25,682,000$

Since the purchase of 26 loans from HUD during 1996, we have collected principal and interest paymentfunds, which are available for rehabilitation work and tenant initiatives. These are restricted funds.

Program Receipts, since 1996 25,061,804$ Grants and Loans, since 1996 (16,708,370) Available for Rehab/Tenant Initiatives as of February 29, 2012 8,353,434$

HUD Purchase Loan Program

MBS Warehousing Program as of February 29, 2012

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Missouri Housing Development CommissionCONDENSED STATEMENT OF REVENUE AND EXPENSES, unaudited (In Thousands)Includes the effects of GASB Statement No. 31For the Month Ending February 29, 2012


Funds Program Program Combined

UnauditedREVENUES:Interest on Mortgage Loans 602$ 969$ 4,577$ 6,148$ Interest on Investments 398 33 115 546 Fair Market Value of Investments (2,595) (242) (1,617) (4,454) Administrative Fees 501 - - 501 Net Rental Property Income - - - - Financing Fees and Other 257 - 32 289 Housing Trust Fund Receipts - - - - Grants & Federal Assistance 11,406 - - 11,406

----------------- ------------------------ ------------------------- --------------------Total Revenues 10,569 760 3,107 14,436

EXPENSES:Interest Expense on Bonds and Notes 6 795 4,106 4,907 Miscellaneous Bond Debt Expense 10 15 - 25 Compensation 659 - - 659 Administrative Expenses 177 - - 177 Provision for Loan Losses - - - - Housing Trust Fund Grants 248 - - 248 Grants & Federal Assistance 11,290 - - 11,290

----------------- ------------------------ ------------------------- --------------------Total expenses 12,390 810 4,106 17,306

----------------- ------------------------ ------------------------- --------------------REVENUES OVER (UNDER) EXPENSES (1,821) (50) (999) (2,870) FROM OPERATIONS

Subsidy Programs and Special Initiatives 320 - - 320 ----------------- ------------------------ ------------------------- --------------------

REVENUE FROM OPERATIONS AFTER SUBSIDY PROGRAMS & SPECIAL INITIATIVES (2,141)$ (50)$ (999)$ (3,190)$

========== ============== ============== ============

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Missouri Housing Development CommissionCONDENSED STATEMENT OF REVENUE AND EXPENSES, unaudited (In Thousands)Excludes the effects of GASB No. 31For the Month Ending February 29, 2012

Actual Budget Actual Budget Actual Budget Actual Budget

UnauditedREVENUES:Interest on Mortgage Loans 602$ 531$ 969$ 1,035$ 4,577$ 4,583$ 6,148$ 6,149$ Interest on Investments 398 363 33 29 115 117 546 509 Administrative Fees 501 225 - - - - 501 225 Net Rental Property Income - - - - - - - - Financing Fees and Other 257 219 - - 32 27 289 246 Housing Trust Fund Receipts - - - - - - - - Grants & Federal Assistance 11,406 12,298 - - - - 11,406 12,298

--------------- --------------- --------------- --------------- ------------------ ------------------ ------------------ ---------------Total Revenues 13,164 13,636 1,002 1,064 4,724 4,727 18,890 19,427

EXPENSES:Interest Expense on Bonds and Notes 6 - 795 821 4,106 4,592 4,907 5,413 Miscellaneous Bond Debt Expense 10 6 15 46 - 2 25 54 Compensation 659 765 - - - - 659 765 Administrative Expenses 177 464 - - - - 177 464 Provision for Loan Losses - 63 - - - - - 63 Housing Trust Fund Grants 248 275 - - - - 248 275 Grants & Federal Assistance 11,290 11,548 - - - - 11,290 11,548

--------------- --------------- --------------- --------------- ------------------ ------------------ ------------------ ---------------Total expenses 12,390 13,121 810 867 4,106 4,594 17,306 18,582

--------------- --------------- --------------- --------------- ------------------ ------------------ ------------------ ---------------REVENUES OVER (UNDER) EXPENSES 774 515 192 197 618 133 1,584 845 FROM OPERATIONS

Subsidy Programs and Special Initiatives 320 151 - - - - 320 151 --------------- --------------- --------------- --------------- ------------------ ------------------ ------------------ ---------------

REVENUE FROM OPERATIONS AFTER SUBSIDY PROGRAMS & SPECIAL INITIATIVES 454$ 364$ 192$ 197$ 618$ 133$ 1,264$ 694$

======== ======== ======== ======== ========== ========== ========== ========

Number of Employees: 111Number of Employees at Prior Year End: 113Compensation and administrative expenses as percentage of Total Revenue - actual 4.43%; budget 6.33%

CombinedOperating

Funds

RentalBond-Financed

Program

HomeownershipBond-Financed

Program

7a

Missouri Housing Development CommissionCONDENSED STATEMENT OF REVENUE AND EXPENSES, unaudited (In Thousands)Includes the effects of GASB Statement No. 31For the Eight Months Ending February 29, 2012


Funds Program Program Combined

UnauditedREVENUES:Interest on Mortgage Loans 4,646$ 8,351$ 37,970$ 50,967$ Interest on Investments 3,195 240 766 4,201 Fair Market Value of Investments 5,906 1,336 10,756 17,998 Administrative Fees 5,303 - - 5,303 Net Rental Property Income 2,248 - - 2,248 Financing Fees and Other 1,974 - 1,359 3,333 Housing Trust Fund Receipts 3,338 - - 3,338 Grants & Federal Assistance 99,258 - - 99,258

------------------ ------------------------ ------------------------- ----------------------Total Revenues 125,868 9,927 50,851 186,646

EXPENSES:Interest Expense on Bonds and Notes 83 6,663 33,336 40,082 Miscellaneous Bond Debt Expense 51 134 158 343 Compensation 5,437 - - 5,437 Administrative Expenses 2,445 - - 2,445 Provision for Loan Losses - - - - Housing Trust Fund Grants 2,884 - - 2,884 Grants & Federal Assistance 93,446 - - 93,446

------------------ ------------------------ ------------------------- ----------------------Total expenses 104,346 6,797 33,494 144,637

------------------ ------------------------ ------------------------- ----------------------REVENUES OVER (UNDER) EXPENSES 21,522 3,130 17,357 42,009 FROM OPERATIONS

Subsidy Programs and Special Initiatives 6,886 - - 6,886 ------------------ ------------------------ ------------------------- ----------------------

REVENUE FROM OPERATIONS AFTER SUBSIDY PROGRAMS & SPECIAL INITIATIVES 14,636$ 3,130$ 17,357$ 35,123$

=========== ============== ============== =============

8

Missouri Housing Development CommissionCONDENSED STATEMENT OF REVENUE AND EXPENSES, unaudited (In Thousands)Excludes the effects of GASB No. 31For the Eight Months Ending February 29, 2012

Actual Budget Actual Budget Actual Budget Actual Budget

UnauditedREVENUES:Interest on Mortgage Loans 4,646$ 4,248$ 8,351$ 8,280$ 37,970$ 36,668$ 50,967$ 49,196$ Interest on Investments 3,195 2,904 240 232 766 932 4,201 4,068 Administrative Fees 5,303 3,969 - - - - 5,303 3,969 Net Rental Property Income 2,248 - - - - - 2,248 - Financing Fees and Other 1,974 1,752 - - 1,359 486 3,333 2,238 Housing Trust Fund Receipts 3,338 3,300 - - - - 3,338 3,300 Grants & Federal Assistance 99,258 98,389 - - - - 99,258 98,389

----------------- ----------------- ----------------- ----------------- -------------------- ----------------- -------------------- -----------------Total Revenues 119,962 114,562 8,591 8,512 40,095 38,086 168,648 161,160

EXPENSES:Interest Expense on Bonds and Notes 83 105 6,663 6,573 33,336 36,732 40,082 43,410 Miscellaneous Bond Debt Expense 51 48 134 121 158 107 343 276 Compensation 5,437 6,107 - - - - 5,437 6,107 Administrative Expenses 2,445 3,125 - - - - 2,445 3,125 Provision for Loan Losses - 498 - - - - - 498 Housing Trust Fund Grants 2,884 2,200 - - - - 2,884 2,200 Grants & Federal Assistance 93,446 92,389 - - - - 93,446 92,389

----------------- ----------------- ----------------- ----------------- -------------------- ----------------- -------------------- -----------------Total expenses 104,346 104,472 6,797 6,694 33,494 36,839 144,637 148,005

----------------- ----------------- ----------------- ----------------- -------------------- ----------------- -------------------- -----------------REVENUES OVER (UNDER) EXPENSES 15,616 10,090 1,794 1,818 6,601 1,247 24,011 13,155 FROM OPERATIONS

Subsidy Programs and Special Initiatives 6,886 8,281 - - - - 6,886 8,281 ----------------- ----------------- ----------------- ----------------- -------------------- ----------------- -------------------- -----------------

REVENUE FROM OPERATIONS AFTER SUBSIDY PROGRAMS & SPECIAL INITIATIVES 8,730$ 1,809$ 1,794$ 1,818$ 6,601$ 1,247$ 17,125$ 4,874$

========= ========= ========= ========= =========== ========= =========== =========

Compensation and administrative expenses as percentage of Total Revenue - actual 4.67%; budget 5.73%

CombinedOperating

Funds

RentalBond-Financed

Program

HomeownershipBond-Financed

Program

8a

Loans Units RemarksRental Programs

FHA Insured 90 8,413 Includes FHA Insured, Section 8, Market Rate & Risk Share.

FNMA 20 675 Includes FNMA Participation Loans.

US Bank 50 - Includes US Bank Participation Loans

Uninsured 201 6,981 Includes Acquisition/Construction/Permanent Financing for Special Needs, Elderly & Family housingusing MHDC fund balances.

HUD Purchased Loans 28 712 Includes HUD Purchased Loans, special financing relating to the HUD Purchased Loan Program.

Real Estate Owned - -

HOME Funds 382 11,412 Federal HOME Funds Construction Preservation non-profit and for profit and Federal HOME FundsEmergency Relief.

Housing Trust Fund 18 - Includes permanent financing for Family housing.

Rural Development Guaranteed 1 40 Includes a multifamily permanent financing.

Rural Initiative Loans 3 40 Rural Initiative Loan units are based on lots.

TCAP 24 709 Tax Credit Assistance Program.

TC Exchange 25 741 Low-income Housing Tax Credit Exchange Program.

Rental Program Totals 842 29,723

Homeownership Programs

GNMA Master Servicer 11,966 11,966 Serviced by Master Servicer, MHDC funded through MRB.

FNMA Master Servicer 1,752 1,752 Serviced by Master Servicer, MHDC funded through MRB.

FHLMC Master Servicer 216 216 Serviced by Master Servicer, MHDC funded through MRB.

MRB Issues 68 68 Serviced by Participant/Servicers. MHDC reconciles bank accounts, audits foreclosures and processes assumptions.

GNMA MRB Issues 764 764 Serviced by GNMA Contract Servicers. MHDC processes assumptions, servicing fees and audits foreclosures.

Rural Growth Master Servicer 10 10 Resolution 853 Serviced by Master Servicer, MHDC funded through MRB.

Cash Assistance Loans (CAL) 4,425 - Serviced by Master Servicer, MHDC funded; convert to grants over 60 months.

Tax Credit Advance Loans (TCAL) 630 - Serviced by Master Servicer, MHDC funded.

HOME Funds/Other 1,360 1,360 Includes MHDC DPA/MRB Issues/Flood Program Funds and Federal HOME Funds/FmHA, Weatherization andHome Improvement, Habitat for Humanity. MHDC performs all servicing functions.

Homeownership Program Totals 21,191 16,136

TOTALS 22,033 45,859

LOAN SERVICING REPORTAs of February 29, 2012

9

TAB 4(b) Report of Staff

Request for approval of MOU for 811 Funding

1

MEMORANDUM OF UNDERSTANDING

Between The State of Missouri Department of Health and Senior Services,

The State of Missouri Department of Mental Health, The State of Missouri Department of Social Services,

The State of Missouri Department of Corrections and

The Missouri Housing Development Commission

I. Definitions For the purposes of this Memorandum of Understanding (MOU), the following are considered definitions: Disability: An individual having a physical, mental or emotional impairment: (1) that is expected to be of long continued and indefinite duration, (2) that substantially impedes his or her ability to live independently, and (3) is of a nature that the ability to live independently could be improved by more suitable housing conditions. Inappropriately Housed: A Missouri citizen is not living in proper or suitable housing, including places that are not inhabitable, safe or sanitary; or situations in which a Missouri citizen is living in congregate housing, but would choose independent living if available. Lead Referral Agency: Refers to the provider of services in a designated special needs Low-Income Housing Tax Credit community. Qualified Allocation Plan (QAP): Plan that Missouri Housing Development Commission uses to decide which entities and individuals receive tax credits each year. Section 811 Subsidy: To offer additional methods of financing supportive housing for non-elderly adults with disabilities. Under this program, state housing agencies that have entered into partnerships with state health and human services and Medicaid agencies can apply for Section 811 Project Rental Assistance for new or existing affordable housing developments funded by Low-Income Housing Tax Credits, HOME, or other sources of funds. State Partners: Includes the Department of Health and Senior Services, Department of Mental Health, Department of Social Services, Department of Corrections and the Missouri Housing Development Commission. Target Population: Refers to the eligible recipients of the services, as identified in Section II of this MOU.

II. Purpose The purpose of this MOU is to establish a working relationship and a partnership agreement between the Missouri Department of Health and Senior Services (DHSS), Missouri Department of Mental Health (DMH), Missouri Department of Social Services (DSS), Missouri Department of Corrections (DOC) and the Missouri Housing Development Commission (MHDC) for the implementation of services and housing associated with the re-entering of individuals and/or families into the community. The targeted population is limited to disabled Missouri citizens who qualify for Money Follows the Person, citizens currently on probation, parole or incarcerated in a facility operated by the DOC, children transitioning from the care and custody of DSS Children’s Division (CD) and Division of Youth Services (DYS), and citizens who are

2

inappropriately housed, including citizens receiving protective services from Missouri Division of Senior and Disability Services (DSDS).

III. Goals of the Partnership

A. To set priorities for the Section 811 subsidy program. B. To ensure access to safe, decent, and sanitary housing for the targeted population. C. To create linkages and strengthen relationships between community agencies and to provide a wider array of housing options for the targeted population.

IV. Roles and Responsibilities

The Roles and Responsibilities for each agency are as follows:

A. Department of Health and Senior Services:

To share information on housing resources in the community with agencies and appropriate staff.

To encourage appropriate staff and provider agencies to collaborate with housing developers.

To refer potential recipients of housing to appropriate lead referral agency. It is understood that this MOU does not obligate DHSS to any financial obligation and is

only for data, referral, and collaborative purposes.

B. Department of Mental Health:

To provide data on the number of citizens in Residential Care Facilities (RCFs) and number of citizens on the Shelter Plus Care waiting lists to MHDC at the end of every state fiscal year.

To share information on housing resources in the community with agencies and appropriate staff.

To encourage appropriate staff and provider agencies to collaborate with housing developers.

To refer potential recipients of housing to appropriate lead referral agency.

C. Department of Social Services: To provide Money Follows the Person data to MHDC at the end of every state fiscal

year. To provide the number of youth exiting to independent living to MHDC at the end of

every state fiscal year. DYS to provide the number of youth exiting DYS programs at age eighteen (18), and

older, to MHDC at the end of every state fiscal year. To share information on housing resources in the community with agencies and

appropriate staff. To encourage appropriate staff and provider agencies to collaborate with housing

developers.

3

To develop procedures for the dissemination of information and appropriate referral of potential recipients of housing to the appropriate lead agency.

It is understood that this MOU does not obligate DSS to any financial obligation and is only for data, referral, and collaborative purposes.

D. Department of Corrections:

To provide baseline outcome results to MHDC at the end of every state fiscal year. To share information on housing resources in the community with appropriate staff.

E. Missouri Housing Development Commission:

Ensure the Qualified Allocation Plan is in accordance with applicable program

regulations and requirements.

Provide technical assistance to housing developers wanting to develop special needs housing.

Provide technical assistance to agencies providing supportive services in affordable housing communities.

Encourage collaboration between social service agencies, housing developers, and state partner agencies.

Ensure that state partner agencies are notified of available special needs housing units.

Analyze data from partner agencies to determine areas of greatest housing needs.

Monitor compliance in relation to the Low Income Housing Tax Credit Program and 811 subsidy requirements.

V. Confidentiality

A. All discussions between the parties and all information gained by the parties as a result of

this agreement shall be confidential. No reports, documentation, or material prepared pursuant to this MOU shall be released to the public without the prior written consent of each party, except to the extent such disclosure is required under the “Sunshine Law” (RSMo Chapter 610).

VI. Term of Agreement/Modifications

A. This agreement shall be effective upon execution by all parties through June 30, 2013. B. This MOU may be renewed upon written agreement of all parties. C. Any changes to this MOU must be by formal amendment reviewed, approved and signed

by all parties. No other documents, including correspondence, acts and oral communications by or from any person, shall be construed as an amendment to this MOU.

D. Any party may terminate this MOU after providing a minimum of thirty (30) days notice to all parties.

4

E. This MOU may be signed in any number of counterparts, and signature to any one counterpart shall be deemed signature to all other counterparts, which when taken together shall constitute one agreement.

5

IN WITNESS WHEREOF, this Memorandum of Understanding has been executed as of the ___ day of ______, 2012. _______________________________ ________________________ Authorized Signature for the date Office of the Governor ______________________________ ______________________ Authorized Signature for the date Department of Health and Senior Services _______________________________ ________________________ Authorized Signature for the date Department of Mental Health _______________________________ _______________________ Authorized Signature for the date Department of Social Services _______________________________ ________________________ Authorized Signature for the date Department of Corrections ______________________________ ________________________ Authorized Signature for the date Missouri Housing Development Commission

TAB 4(c) Report of Staff

Request for approval of funding recommendations for HMIS

2012 Homeless Management Information Systems (HMIS) Funding Recommendations

Grant Number: Agency Name: CoC Represented: Amount Requested: Recommended:

12‐600‐CI Mid America Assistance Coalition Kansas City‐St. Joseph 5,906.25$ 5,906.25$ 12‐601‐CI Community Council of St. Charles County, Inc. St. Charles 5,500.00$ 5,500.00$ 12‐602‐CI Economic Security Corporation of Southwest Area Joplin 6,800.00$ 6,800.00$ 12‐603‐CI Missouri Association for Social Welfare Balance of State 30,360.00$ 30,360.00$

Totals: 48,566.25$ 48,566.25$

TAB 4(d) Report of Staff

Request for approval of funding recommendations for Housing First

2012 Housing First Funding Recommendations

Balance of State Region

Grant Number: Agency Name: Site City: Amount Requested: Recommended:

12‐502‐CI Christian Associates of Table Rock Lake Kimberling City 80,000.00$ 80,000.00$ 12‐503‐CI North East Community Action Corporation Bowling Green 75,000.00$ 75,000.00$

Totals: 155,000.00$ 155,000.00$

Kansas City Metro


12‐511‐CI reStart, Inc. Kansas City 155,900.00$ 155,900.00$ Totals: 155,900.00$ 155,900.00$

St. Louis Metro


12‐505‐CI Sts. Joachim and Ann Care Service St. Charles 98,560.00$ 98,560.00$ Totals: 98,560.00$ 98,560.00$

Grand Total: 409,460.00$ 409,460.00$

TAB 4(e) Report of Staff

Rental Production Update

TAB 4(f) Report of Staff

Asset Management Watch List

Rental Production Watch List April 2012Asset Management PortfolioMHDC Financed Portfolio 583,624,117 Federally Funded Portfolio 40,506,630 4/2/2012

TOTAL 624,130,747

Loan Balance 96.56%

602,682,365

Loan Balance

1.96%

CP 2004-Castlepoint St. Louis St. Louis 2005 Federal -

Uninsured

627,164$ Occupancy Family 15 73% Market Medium Beyond

Housing

(NFP)

81% 50% 6

Grand Court Apartments Brunswick Chariton 1995 & 2001 Federal -

Uninsured /

Uninsured

456,324$ Occupancy Family 20 75% Market Low Lockwood

Group (FP)

89% 25% 2

Greyhound Assoc. Windsor Henry 1997 Federal -

Uninsured

446,525$ Occupancy Family 24 75% Owner/Market Low West Central

Missouri

Community

Action (NFP)

90% 25% 3

Leschen Place St. Louis St. Louis 2005 Federal -

Uninsured

411,529$ Occupancy Family 15 73% Owner/Market Low Housing

Revitalization

John Wuest

(FP)

68% 60% 4

Lost Tree North Branson Taney 2006 Uninsured 946,768$ Occupancy Family 24 83% Market Low New

Beginnings

(John Harpole)

(FP)

92% 25% 7

Lucas and Hunt Heights St. Louis St. Louis 2008 Uninsured 614,749$ Occupancy Family 20 80% Market Low Housing

Revitalization

(John Wuest)

(FP)

68% 60% 1

Maple Avenue Independence Jackson 2002 Uninsured 457,879$ Occupancy /

Physical

Family 64 61% Owner/Market Low Cohen-Esrey

Historic Hsg

Rehab

Development

(FP)

87% 33% 3

Loan & Reserve Balances as of

Ownership interest was transferred to Beyond Housing in March 2011. Beyond Housing is also the managing agent.

Decline in occupancy is primarily due to significant neighborhood issues i.e. crime, violence, and excessive vandalism

which has caused residents not to renew their leases. Management is working to improve security and is offering rental

incentives which have helped to increase occupancy. Staff inspected the property in July 2011 and found the physical

condition, marketing techniques, and overall management of the property to be satisfactory. Currently, there is one

application pending.

Months

on List

COMMENTS

Beyond Housing also serves as management agent. The property was built in anticipation of neighborhood revitalization

which did not take place as planned. For this reason the neighborhood presents security challenges. Increased crime has

resulted in residents choosing not to renew leases and there is one application pending. Staff last inspected the property

in August 2010 and found the physical condition, marketing techniques, and overall management of the property to be

satisfactory. Occupancy has increased since the last report.

Kodiak Management (related party) serves as management agent. Decline in occupancy is primarily due to very low

income limits, job loss, and low home prices. Management is offering various incentives to attract residents. Staff

inspected the property in March 2012, and found the physical condition, marketing techniques, and overall management of

the property to be satisfactory. Walk-in traffic and telephone calls continue to be minimal. Currently, there are two

applications pending. Occupancy has increased since the last report.

Property is managed by Action Management at the request of MHDC. Ownership previously self-managed the property,

but was removed by MHDC in late 2008 because of non-compliance. Decline in occupancy is primarily due to very low

income limits and the expiration of the property's MHDC 2004 Trust Fund Grant which helped subsidize rents for existing

residents. Ownership applied for a new Trust Fund Grant in 2010 but was denied due to repeated non-compliance issues.

Property is competing with several other affordable apartment communities that are providing rental assistance. Staff

inspected the property in March 2012 and found the physical condition, marketing techniques, and overall management of

the property needing improvement. Currently, there are no applications pending. Walk-in traffic and telephone calls

continue to be minimal. Occupancy has increased since the last report.

Property is managed by Action Management. Management reports that the Mo Census Data Center is reporting a 26%

vacancy in overall housing units for the City of Brunswick. High vacancy is due to limited employment opportunities within

the city as the largest percentage of workers commute to other communities and eventually relocate. Staff inspected the

property in April 2011 and found the physical condition, marketing techniques, and overall management of the property to

be satisfactory. Walk-in traffic and telephone calls continue to be minimal. Currently, there are no applications pending.

Occupancy has decreased since the last report.

Loan Date Program Weakness Type Total

Units

Occupancy

PASS

% of

portfolio on

watch list

Risk Developer Overall

Portfolio

Occ Rate

ResponsibilitySPECIAL MENTION City County

Ownership interest was transferred to Beyond Housing in March 2011. Beyond Housing is also the managing agent.

Decline in occupancy is primarily due to significant neighborhood issues i.e. crime, violence, and excessive vandalism

which has caused residents not to renew their leases. Management is working to improve security and is offering rental

incentives which have helped to increase occupancy. Staff inspected the property in May 2010 and found the physical

condition, marketing techniques, and overall management of the property to be satisfactory. Currently, there are no

applications pending. Occupancy has remained the same since the last report.

Cohen-Esrey (related party) serves as management agent. Decline in occupancy is primarily due to the decline in

economic conditions causing increased skips and evictions for non payment of rent. Management recently hired a new site

manager in November 2011. Management is offering incentives to attract residents. Staff inspected the property in

October 2011 and found the physical condition, marketing techniques, and overall management of the property needing

improvement. Currently, there are four applications pending; walk-in traffic and telephone calls are increasing.

Occupancy has decreased since the last report.

Pattonsburg Manor Pattonsburg Daviess 1997 Federal -

Uninsured

499,668$ Occupancy Family 20 75% Market Low Green Hills

Community

Action Agency

(NFP ) /

Lockwood

Group (FP)

75% 50% 5

Pemberton Park for

Grandfamilies

Kansas City Jackson 2009 Tax Credit

Exchange

Program

7,325,000$ Occupancy Elderly 36 78% Market Low Cougar Capital,

LLC

(Bob Rousey)

(FP)

88% 50% 1

River Bend Apartments Orrick Ray 1995 Federal -

Uninsured

323,593$ Occupancy Family 20 75% Market Low Lockwood

Group (FP)

89% 25% 2

Truman Towers Osceola St. Clair 2000 Uninsured 129,023$ Occupancy Elderly 25 76% Market Low Carlson

Gardner (FP)

93% 4% 3

12,238,222$

Loan Balance

1.48%

Ashley Park Kansas City Jackson 2006 Risk Share 6,470,843$ Occupancy Family 184 81% Owner/Market High Capstone

Development

(Ken Vitor) (FP)

94% 10% 16

FP-San Remo St. Louis St. Louis

City

2004 Risk Share $ 2,582,232 Occupancy /

Physical

Family 75 72% Owner/Market High Tyler

Development,

Inc (Bob Wood)

(FP)

70% 100% 4

Labadie Apts. St. Louis St. Louis

City

1992 Uninsured 157,085$ Occupancy /

Physical

Family 18 0% Owner/Market High Housing

Revitalization

(John Wuest)

(FP)

68% 60% 29

9,210,160$

Loan Balance

0.45%

Joplin Apts II Joplin Jasper 2000 Federal -

Uninsured

359,871$ Physical Family 36 0% Natural

Disaster

Low Red-Wood

Development,

Inc.

N/A N/A 4

Joplin Sr. Apts Joplin Jasper 1998 Federal -

Uninsured

908,856$ Physical Senior 56 21% Natural

Disaster

Low Red-Wood

Development,

Inc.

N/A N/A 4

Springview Gardens Joplin Jasper 2009 Federal -

Uninsured

1,522,805$ Physical Family 80 0% Natural

Disaster

Low HJS

Development,

LLC

N/A N/A 4

2,791,532$

YARCO serves as management agent. Lease up began March 2011 and the property is experiencing slower than

expected lease up. This property targets grandparents who have legal custody of their grandchildren, but is having

difficulty attracting residents in this target market. Currently, there are two applications pending; walk-in traffic and

telephone calls continue to be minimal.

COMMENTS

Green Hills Community Action Agency is self-managing. Decline in occupancy is primarily due to the decline in economic

conditions, the high cost of transportation to travel to near-by cities for employment, and the inability for prospective

residents to make the required security and utility deposits. A new factory is scheduled to open in the area and

management is preparing to market the property heavily in anticipation of the opening. In addition, management has begun

offering rental incentives to new residents. Staff inspected the property in November 2009, and found the physical

condition, marketing techniques, and overall management of the property to be satisfactory. Currently, there are three

applications pending. Occupancy has increased since the last report.

Mid America (related party) serves as management agent. The property is an elderly property and during the past four

months several residents have relocated to assisted living facilities or have become deceased. Property is located in a

small town making it difficult to improve occupancy by attracting new residents. Management is offering incentives. Staff

inspected the property in July 2011, and found the physical condition, marketing techniques, and overall management of

the property to be satisfactory. Currently, there are no are applications pending, and walk-in traffic and telephone calls

continue to be minimal. Occupancy has increased since the last report.

MACO Management serves as the management agent. Decline in occupancy is primarily due to the decline in economic

conditions causing increased skips and evictions for non payment of rent. Staff inspected the property in February 2011

and found the physical condition, marketing techniques, and overall management of the property to be satisfactory. Walk-

in traffic and telephone calls continue to be minimal. Currently, there are two applications pending. Two move-ins are

scheduled for April. Occupancy has increased since the last report.

Adverse

Classification

Substandard

Program Weakness % of

portfolio on

watch list

Occupancy Responsibility RiskType Total

Units

Substandard

Removed from the last report: Brookfield Village; Cardinal Apartments; Gallatin Plaza

CONCERNS:

(Substandard, Doubtful,

Loss)

City County Loan Date

Insurance determined 3 buildings salvageable. Construction has commenced and is estimated to be approximately 68%

complete. Eight residents moved back to the property in March. Estimated completion date is April 2012.

Buildings 1,2,3,4,5,6,7,11,13,14, and ½ of buildings 8 & 9 have been determined a total loss. Building 10, 12, and ½ of

buildings 8 & 9 were salvaged. Construction has commenced and is estimated to be approximately 27% complete.

Properties Affected by

Joplin Tornado

City County Loan Date Program

All buildings have been determined a total loss for insurance purposes. Owner has settled with insurance, and is using the

original architect to draft plans. Construction has commenced and is estimated to be approximately 35% complete.

This property is located in a high crime area and all units are boarded up. Owner has made the

determination not to renovate or market the property. Staff continues to be in communication with HRI

to discuss an exit plan. The property is 100% vacant.

Substandard

Existing GP transferred management to the LP and their related management company. CAMCO took

over management January 2012. The site manager was replaced. The property has suffered from an

increase in gang and drug-related activity, and overall neglect from previous management. CAMCO

has recently reached out to MHDC, HUD and city police to discuss management's proposed action

plan. Management is still assessing unit conditions and current tenant history. There is one

application pending. Occupancy has increased since the last report.

The reputation was poor prior to rehabilitation and management continues to have a difficult time

keeping the bad element out. Staff has placed the property on a corrective action plan; security

cameras and police foot patrols are both achieving positive results. Staff inspected the property in

January 2012 and found the physical condition, marketing techniques, and overall management of the

property to be satisfactory. Decline in occupancy is due to evictions for non-payment of rent and

illegal activity. Currently, there are 13 applications pending. The property now has a wait list for 1 BR

units. Ownership recently met with MHDC regarding the financial stability of the property. Ownership

has planned meetings with other financing sources to discuss possible mortgage restructuring.

Occupancy has increased since the last report.

Months

on List

Weakness Type Total

Units

Occupancy Responsibility Months

on List

Risk Developer Overall

Portfolio

Occ Rate

% of

portfolio on

watch list

COMMENTS

Developer Overall

Portfolio

Occ Rate

Watch List Thresholds

ADD Occupancy

Physical

Financial

Participation: A portion of the loan is sold to a partcipating lender and MHDC is only liable for the remaining balance.

REMOVE The occupancy rate reaches 85%

Physical deficiencies are remedied

Mortgage payment is current

Loss: An asset that is considered uncollectible and of such little value that continuance as an asset is not warranted. This classification does not necessarily mean that an asset has absolutely no

recovery value; but rather, it is not practical or desirable to defer writing off a basically worthless asset even though partial recovery may be effected in the future.

Program Descriptions:Risk Share: HUD insures 50% of the loan balance and MHDC assumes the risk on the other 50%. In addition, MHDC collects 50% of the annual mortgage insurance premium to off-set potential

claims.

HUD-insured: 100% of the loan balance is guaranteed by HUD in the event of default.

Uninsured: Fund Balance loans in which MHDC is responsible for 100% of the losses incurred.

Substandard: An asset that has a well-defined weakness and is inadequately protected by the current net worth and paying capacity of the obligor. These assets are characterized by the distinct

possibility that the Commission will sustain some loss if the deficiencies are not corrected.

Doubtful: An asset that has the weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable.

The occupancy rate has reached 84% or below for three (3) consecutive months

The site inspection resulted in a less than satisfactory rating and the owner is unwilling/unable to

remedy the physical deficiencies

The mortgage payment is more than 45 days past due

Federal-uninsured: Funds issued by the federal government for which MHDC administers. Once the affordability period has expired, MHDC no longer has a responsibility to repay the federal funds.

Special Mention: An asset with potential weaknesses that deserve management's close attention. Special mention assets are not adversely classified and do not expose the Commission to sufficient

risk.

Adverse Classifications: (Substandard, Doubtful, Loss)

annual meeting of the missouri housing development

Documents