$7.5 Million in Affordable Housing Commitments Finalized From Citizens Bank.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--June 29, 2000

The Massachusetts Housing Partnership Fund (MHP) announced today that it has finalized a $2.5 million grant from Citizens Bank Massachusetts to increase the development of affordable housing in the state. An additional $5 million of outstanding Citizens funds are being set aside at reduced locked-in rates for affordable housing projects sponsored by nonprofit organizations.

"We are delighted to receive this grant and the accompanying $5 million set aside from Citizens Bank to support affordable housing and neighborhood development," said MHP Executive Director Clark L. Ziegler. "Citizens Bank has been a critical partner in our effort to expand the availability of affordable housing across the Commonwealth."

Citizens has agreed to convert from loan to grant, at a rate of $1 of grant for $9 of loans, the total amount that the bank is required to make available to MHP pursuant to state law through its acquisition of USTrust Corporation. The grant will total $2,595,451.

"This is terrific news for Massachusetts," Ziegler said. "The grant and low-interest loan from Citizens allows smart public and private investments that will produce immediate results. The timing could not be better because the Commonwealth's housing needs have never been greater."

"Citizens Bank is strongly committed to helping strengthen Massachusetts communities and helping Massachusetts families in need of affordable housing is one way we are pleased to demonstrate that commitment," said Thomas J. Hollister, President of Citizens Bank of Massachusetts. "Last year, Citizens Bank of Massachusetts signed a $148 million Community Reinvestment Act agreement with low and moderate income and minority communities to help their credit and service needs. Today's announcement is another step towards fulfilling our promise."

Citizens Bank of Massachusetts is a $15 billion company with over 150 branches, over 400 ATMs, comprehensive commercial banking services, a thriving commercial real estate business and expertise in specialized lending nationwide. Citizens Bank of Massachusetts is a subsidiary of Citizens Financial Group, Inc., a $29.3 billion Providence-based financial services company with more than 330 offices and over 800 ATMs, operating as Citizens Bank in Connecticut, Massachusetts, New Hampshire and Rhode Island.

The Massachusetts Housing Partnership Fund (MHP) is a public agency that uses lines of credit from the banking industry to provide long-term loans for affordable housing and neighborhood development. Banks are required to provide funding to MHP as a condition of state approval for certain acquisitions. Established by an act of the Legislature in 1985, MHP has helped more than 4,500 families buy their first home, financed the rehabilitation of more than 10,000 housing units and helped organize housing partnerships in more than 200 cities and towns across the state.