Citigroup CCDE Provides SRO Housing Corporation with $403,000 Mortgage for 55-Units of Affordable Housing for Homeless Veterans.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 24, 2001

Citigroup Center for Community Development Enterprise (CCDE) has announced that it has provided a $403,000, 10-year fixed-rate mortgage loan to SRO (Single Room Occupancy) Housing Corporation, a non-profit housing development organization.

The financing will be used to create new affordable housing for homeless veterans at the Southern Hotel, which is located at 412 East 5th Street in downtown Los Angeles. SRO also is receiving for this project an acquisition/permanent loan from the Los Angeles Homeless Services Authority (LAHSA), a construction/permanent loan from the Housing Authority of the City of Los Angeles (HACLA), and a Federal Affordable Housing Program (AHP) direct subsidiary of $299,400 through an application that was submitted by Citibank.

"We are pleased to strengthen our commitment to serving low- and moderate-income communities by providing SRO with this financing," said Steve Hall, CCDE Director of Community Lending in California. "SRO has focused on improving the quality of life in Los Angeles for 17 years. We are pleased with our association with SRO Housing as a community partner and know that the Southern Hotel will provide quality affordable housing for the homeless and social services that will help them gain self-sufficiency."

Said Vera Fleischman, Director of Housing Development for SRO Housing Corporation, "The Southern demonstrates SRO Housing's ongoing commitment to creating a clean and safe environment and affordable housing. We are pleased to have received financing for this project and know that many individuals will benefit from the availability of this new housing."

SRO is a non-profit corporation established in 1984 to provide affordable housing in Los Angeles' Central City East or Skid Row neighborhood. SRO currently operates 17 residential hotels and two shelters containing a combined 1,400 units and are also contracted by the City of Los Angeles to manage two of the City's parks. A team of skilled SRO resident managers oversee the hotels and provide a range of social services to the residents and their surrounding areas. These services include case management, employment development, health and fitness programs, meals, art classes and special events.

Citigroup CCDE offers non-profit and for-profit developers and businesses innovative and comprehensive financing packages for their projects in low- and moderate-income areas. As a member of Citigroup, CCDE taps resources and skills from across the company's units, which include Citibank, Salomon Smith Barney, CitiMortgage, Travelers, and the Citigroup Foundation. Together, this diverse mix can finance projects, support operations through lines of credit, purchase tax credits, underwrite and market municipal bonds, manage funds, and address routine and specialty insurance needs. For our clients, this means "one-stop shopping" for comprehensive financing packages that are customized and cost-effective.

Citigroup CCDE is a business unit of Citigroup (NYSE:C), the preeminent global financial services company which 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 Citibank, Travelers, Salomon Smith Barney, CitiFinancial and Primerica. Citigroup primarily focuses community support in three areas: financial education, educating the next generation, and building communities and entrepreneurs. Additional information may be found at http://www.citigroup.com.