MGROUP

EXECUTIVE SUMMARY AND DEVELOPMENT PLAN Catalon at Harvest Green

Houston, Texas

About the Proposed Housing

Catalon at Harvest Green is proposed as a newly constructed mixed income urban infill garden style property of 143
units located in the new master planned Harvest Green Community off of Toll 99 and Harlem in the ETJ of Houston,
Texas. This community will include an upscale three story garden design with tuck-in direct access garages, stone
elevations along with metal roofing, cedar plank siding and awnings. The property also has unique town house units
with large wrap around porches that anchor the corners of the buildings. Common amenities will include an elaborate
Clubhouse and leasing facility with resort style pools, gated access, 24 hour fitness and community ponds with water
features.

The location offers superb access to the explosive growth corridor along Toll Road 99 in the south west part of the
Houston Rosenberg MSA. The location is in the new Harvest Green Master planned subdivision and next door to Aliana
which was ranked number 16 in the country for residential sales in 2015. The site location is considered a high
opportunity location with numerous highly rated schools, retail, churches, and restaurants all within walking distance of
the site. The development site is 7 acres and is well suited for a low density garden style design. There are no unusual
site features or offsite improvements required for development.
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The project will target a mix of incomes as follows:

# of units Type Square Footage Rent Income Eligibility

7 1 Br/1 Ba 653 sq. ft. $389 30% of median

15 1 Br/1 Ba 653 sq. ft. $649 50% of median
11 1 Br/1 Ba 653 sq. ft. $779 60% of median
16 1 Br/1 Ba 710 sq. ft. $779 60% of median
20 1 Br/1 Ba 710 sq. ft. $900 market
4 1 Br/1 Ba/attached 768 sq. ft. $975 market
3 2 Br/1 Ba/study 865 sq. ft. $467 30% of median
24 2 Br/1 Ba/study 865 sq. ft. $778 50% of median
14 2 Br/2 Ba 1060 sq. ft. $934 60% of median
10 2 Br/2 Ba 1060 sq. ft $1150 market
8 2 Br/2 Ba 1042 sq. ft $1100 market
4 3 Br/2 Ba 1272 sq.ft $1080 60% of median
4 3 Br/2 Ba 1272 sq.ft $1400 market
3 3 Br/2 Ba 1290 sq.ft $1080 60% of median

143 total units 51 % one bedroom

66% affordable 34% market rate 41 % two bedroom
97 total affordable units 8 % three bedroom
Page 3 Catalon at Harvest Green

Currently, the income eligibility level (depending on household size) for a 30% income household is between $14,550
and $20,760; the 50% income limit is between $24,250 and $34,600 and the 60% income limit is between $29,100
and $48,180. Market rate units have no income restrictions. These limits are based on the 2016 area median income
for the Houston-Sugarland MSA of $69,200 and are adjusted annually. Income only is calculated based on sources of
income, distributions from investments, employment, etc.

Each apartment unit will include 9 ceilings, deluxe kitchens with gourmet islands in select units and stainless
appliance package, washer/dryer hookups, ceiling fans, computer desks for home office applications, upgraded finish
packages to include designer hardwood floors, stain concrete in select units, crown moldings, granite counters in select
units, designer plumbing and lighting fixtures. Select units will be universally designed to accommodate mobility
impaired persons with features such as roll in accessible showers, grab bars and special plumbing fixtures. All units will
have oversized doors and circulation routes for mobility access throughout. The projects common area amenities
include:

Typical common area

State of the art leasing and community center

Wi-fi caf, on-site Starbucks coffee, morning newspapers
Wi-fi enabled common area including the pool and outdoor area
Fully equipped fitness and Wellness facility open 24-hours
Theater and media room
Sports room with shuffle board and pool table
Business center with high speed internet access, faxing, scanning
and business software available at no charge to residents
Resort style pool, outdoor cooking center
Comprehensive outdoor recreation including basketball, playground, climbing
Zone and bocce ball lawn area
Gated entry with 24 hour video surveillance and security
Unique multi story townhome units with wrap porches

About Sustainability
Catalon will deliver features and amenities common to the local area, while also creating a community that
seamlessly integrates new building technologies and techniques that help reduce energy and water consumption, and
improve indoor environmental quality.

Through LEED certification for Homes, MGroup expects significant energy savings will be realized by installing and using
Energy Star rated windows and appliances, high-efficiency HVAC units, compact fluorescent and LED lighting.
Additionally, MERV 8 air filters, CRI Green Label Plus carpets, bamboo flooring and low-VOC paints will enhance the
quality of the indoor environment.
Page 4 Catalon at Harvest Green

As part of MGroups commitment to Green Building and minimizing development impact to the environment, Catalon
will undertake numerous exterior and site elements to improve overall energy savings and building performance.
Alternative energy options are being explored such as combined heating and power (CHP), and photo-voltaic panels to
offset much of the electricity used in the communitys shared common areas. Additionally, the design will consider rain
harvest collection systems, high efficiency drip irrigation systems, limiting conventional turf and using local and drought
tolerant plants.

Map location of site

Note- no existing LIHTC funded developments within 2 miles of the proposed site.
Page 5 Catalon at Harvest Green

About the Development Team

Development services will be provided by MGroup, LLC. MGroup has successfully developed over 3200 units of market
rate and affordable housing in over 27 communities throughout Texas. Construction services will be provided by
Camden Builders Inc., one of the largest multifamily REITs in the nation with headquarters in Houston. MGroup has
also originated and sold over 200 million dollars of housing tax credits to direct investors including Boston Financial,
Bank of America, Wachovia/Wells Fargo and Capital One. MGroup provides in-house architecture, development and
construction services which ensure a high level of quality and budget control

About the Financing

Catalon HG Partners, Ltd. will be applying to the Texas Department of Housing and Community Affairs (TDHCA) for
funding under the Housing Tax Credit program. This program, established by the Congress in 1986, provides incentives
to the private sector for investing in affordable housing. Working individuals, first responders, returning veterans and
young families saving for home down payments are just a few examples of who benefit from the program. It is not a
subsidized housing program which is a common misunderstanding because no rental assistance is provided. In order
to qualify for the set aside affordable units, prospective tenants must be employed and must pass rigorous background
screening as well as income and employment verification tests. Applicants that do not meet the affordable rental
criteria are offered a market rate unit that has no income restriction.

The program is regulated by the Internal Revenue Service and administered by State Housing Finance Agencies such as
TDHCA. Private investors infuse equity into the affordable developments, receiving in return a dollar for dollar federal
income tax credit for their equity contributions. This infusion of equity insures that the property have a relatively low
mortgage, allowing the development to charge rents on some units that are affordable to persons with incomes at or
below 60% of the Area Median.

Catalon HG Partners, Ltd. will also receive private financing of approximately twenty one million from Capital One Bank
N.A. for construction and permanent financing and fourteen million from Hudson Housing for tax credit investment.

Under these programs, this development will pay property taxes with no abatement or exemption.

Typical unit interior

Page 6 Catalon at Harvest Green

Typical unit interior

About the Economic Impact and key development plan characteristics

Catalon will cost over Twenty five million dollars to construct and will create numerous short term construction jobs,
but also numerous permanent jobs when opened. Economic stimulus to the local area, retail, hospitality and
commercial industries will be significant.

Catalon will offer a rental price point for working individuals that is otherwise not being met in the fast growing
Southwest Houston Toll Road 99 corridor. Many low to moderate income individuals work in and around the Southwest
Houston and Richmond area but are otherwise not able to live in close proximity to their workplace due to the
extremely high rental rates in the sub market. Comparable rental rates at properties are in some cases over $500-
$700 more per month for the exact same size and quality of units proposed at Catalon.

The proposed development will allow the City of Houston and Fort Bend County to meet its goals and vision for
integrated affordable housing as follows:

Immediate adjacency to Neighborhoods of Opportunity

Mixed income quality rental housing with 97 units designated as affordable
Direct access to Harlem and Toll 99.
Significant expansion opportunities underway and will be further enhanced by the development
Close proximity to outdoor recreation parks and facilities
Zoned to Oakland Elementary, Bowie Middle and Travis High School, all recognized as academic
excellence schools in the preferred Fort Bend ISD.
Immediate proximity to major retail, schools, churches and food establishments. Tremendous retail
and commercial growth underway in the one mile sub market.
Highly experienced development team with proven track record.
Stable ownership who will own and operate for 25+ years.
Integrates and promotes fair housing choices

For additional information, contact Mark Musemeche at 713-522-4141 or by mail at 1013 Van Buren, Houston, Texas
77019.

MGROUP