$11 Million Community Revitalization Project Reaches Major Milestone; Travelers and Citigroup, with Mortson/Putnam Heights Ventures, Host Open House.

Business Editors

HARTFORD, Conn.--(BUSINESS WIRE)--June 21, 2001

The first building in an $11 million collaborative neighborhood revitalization effort made its debut today. With the placement of a ceremonial welcome mat on the doorstep, 28 Mortson Street opened its doors to the public. The event was sponsored by Travelers and Citigroup and the members of Mortson/Putnam Heights Ventures, LLC, which include: Broad Park Development Corporation, Corporation for Independent Living, Greater Hartford Realty Management and Milano Corporation. After remarks from neighborhood, city and state leaders, the celebration concluded with Open House tours. Ceremonies took place in the lot next door.

This event showcases the effort of Mortson/Putnam Heights Ventures, LLC, supported by Travelers and Citigroup and other lenders, to revitalize two blocks of lower-income, inner-city housing. With an overall development price tag of $11.2 million, the project will rehabilitate blighted buildings and increase homeownership on two streets -- Mortson Street and Putnam Heights. Each of the streets is one block long. They are located southwest of the State Capitol in the Frog Hollow neighborhood of the city.

Many of the buildings in the Mortson/Putnam Heights neighborhood have been abandoned or destroyed in fires. The buildings to be renovated are the best surviving examples of a signature style of Hartford architecture: the Perfect Six. These three-story brick structures -- built for turn-of-the-century immigrants attracted to Hartford by jobs in expanding industries -- had two apartment units on each floor.

Citigroup units, including Travelers, Citigroup Center for Community Development Enterprise (CCDE), CitiMortgage and the Citigroup Foundation, have agreed to provide up to $7 million in funding. Plans for the project call for the creation of 53 owner-occupied single- and two-family homes through the rehabilitation of existing buildings and the construction of new housing. The plans also call for "streetscape" improvements and a low-interest loan fund to encourage existing property owners to improve their buildings.

"This is just one example of our commitment to the city that we have called home since Travelers first opened its doors 137 years ago," says Geoffrey Siedor, Citigroup CCDE's Director of Community Development Lending in Connecticut. "Our financial partnership in the Mortson/Putnam Heights project is proof of our ongoing confidence in Hartford and underscores the importance of housing to the overall success of the city's revitalization. This is an exciting step forward for a city that has the lowest homeownership rate in the country on a per-capita basis. Our support also builds on our record of community involvement, which includes recent commitments of nearly $80 million to Adriaen's Landing and $2.7 million to the Urban League of Greater Hartford."

"No project of this nature can be successful without the proper funding," says Romulo Samaniego, Executive Director of Broad-Park Development Corporation, Inc., one of the four members of Mortson/Putnam Heights Ventures, LLC. "Mortson/Putnam Heights Ventures has worked closely with several community lenders during the development process of the past 2 1/2 years. Many different scenarios were developed and analyzed before the final construction and permanent financing package could be put in place."

"Community revitalization is a collaborative effort," adds Mr. Samaniego. He explains how the four partners, who represent both non-profit and for-profit organizations, came together. "Originally, all four partners separately targeted the same area at the same time. The city put everyone together - it was a brilliant move."

"There is a lot of talk about the Six Pillars of Hartford's revitalization," continues Mr. Samaniego. "Projects like Mortson/Putnam Heights are the foundation for the six pillars. Without neighborhood revitalization, the pillars would crumble." Mr. Samaniego is also quick to point out that community revitalization reaches beyond the city's borders to positively impact the region as well.

CitiMortgage will offer competitive mortgage rates to those who buy the new housing units created by this project and Travelers will offer eligible homeowners an insurance discount program offered under its urban markets program. To date, three families have already signed housing contracts.

The purchase by Travelers of the tax credits generated from the project make use of The Connecticut Historic Homeownership Tax Credit Act. This act was developed as a result of the efforts of the Local Initiatives Support Corporation (LISC) and approved by the General Assembly in 1999. Under provisions of this legislation, tax credits are available for the rehabilitation of certain owner-occupied, historic residential structures. The credits were purchased by Travelers from the developer, Mortson/Putnam Heights Ventures, and applied against taxes owed to the state by the company.

"The tax credit legislation represents a creative approach to urban revitalization by the state of Connecticut," says Mr. Siedor. "These credits will attract the involvement of private enterprises, like Travelers, in the rebuilding of our state's cities. In addition, this project gives us the opportunity to expand our already sizeable presence in the minority homeowners market for insurance."

About Citigroup, Travelers and the Center for Community Development Enterprise (CCDE)

Citigroup (NYSE:C), the preeminent global financial services company, provides some 120 million consumers, corporations, governments and institutions in more than 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. Major brand names under Citigroup's trademark red umbrella are Travelers, Salomon Smith Barney, Citibank, CitiFinancial and Primerica. The Citigroup Foundation will lend support to organizations that contribute to the vitality of communities worldwide. With a focus on educational and community development grants, the Foundation recognizes its mission: to improve the quality of life now and in the future for children, families and the communities in which all of us live and do business. Additional information may be found at www.citigroup.com. The formation of Citigroup's Center for Community Development Enterprise was announced in 1998 as part of a commitment to lend and invest $115 billion over 10 years in low- and moderate-income communities and small businesses. CCDE is a business unit that harnesses the resources and skills of Citibank, CitiMortgage, Salomon Smith Barney, Travelers and the Citigroup Foundation to help satisfy broad lending and investing needs.

About Mortson/Putnam Heights Ventures, LLC

Through the rehabilitation of existing buildings and the construction of new housing, Mortson/Putnam Heights Ventures LLC will create 53 owner-occupied single- and two-family housing units. The partnership was formed in 1999 by Broad Park Development Corporation, Corporation for Independent Living, Greater Hartford Realty Management and Milano Corporation. Combined, these four members have more than 60 years of experience in housing development. The goal of this partnership is to transform two blocks in Hartford known as Mortson/Putnam Heights. These two streets have a greater concentration of "perfect sixes" than any other street in the city. This area is also an important gateway to the Park Street Business District and Trinity College. Located at 617 Park St., Mortson/Putnam Heights Ventures can be reached at [phone].

About Broad Park Development Corporation, Inc.

Founded in 1978, Broad Park's mission is the comprehensive economic, social and physical revitalization of its neighborhoods. Its primary focus is the financing, construction and management of housing and related retail commercial space. The organization's efforts have led to more than $28 million of public and private investment in housing and commercial space and it has played a major role in the revitalization of Hartford's Frog Hollow and South Green neighborhoods.

About the Corporation for Independent Living

The Corporation for Independent Living is a nonprofit housing development corporation that finances and builds affordable, safe and barrier-free housing for individuals so that they can live as independently as possible. Since 1979, more than 6,000 people have benefited from the organization's work. As a consultant, the organization provides a full range of services including asset management, capital improvement finance, financial consulting and home construction and remodeling. It also collaborates with neighborhood organizations for community and neighborhood rebuilding projects.

About Greater Hartford Realty Management Corporation

Greater Hartford Realty Management Corporation has helped to develop more than 2,500 units of affordable housing. Started in 1970 by Richard Weaver-Bey, the organization oversees the day-to-day administration of more than 1,000 housing units. These units include properties financed through Low Income Housing Tax Credits, conventional market rates and low and moderate federally subsidized Section 8 complexes and condominiums.

About Milano Corporation, Inc.

Formed by John Reveruzzi in 1994, Milano Corporation has served as the developer and co-developer for a variety of multifamily housing projects in the city of Hartford. In this role, Milano Corporation coordinates all development phases, including site acquisition, rehabilitation design, financing and construction. Milano Corporation has participated in the rehabilitation of 239 units of housing within the city of Hartford.