CITIFINANCIAL KICKS OFF TOUR OF NPA NEIGHBORHOODS!

When CitiFinancial entered into a historic agreement with National People�s Action (NPA) in May, the company made a commitment to focus on families and neighborhoods in trouble.

Speaking in front of one thousand community leaders from across the country at the 2003 NPA conference, officials agreed to find opportunities to work with NPA affiliated community groups to help families help themselves.

But many of these officials, from both CitiFinancial and its parent company Citigroup, had never had an up close and personal experience with low-income communities devastated by abusive lending, foreclosures and abandoned buildings. They also were eager to learn about the effects of successful community organizing when tackling a variety of neighborhood issues ranging from neighborhood safety, youth organizing to jobs.

On July 24 NPA and CitiFinancial kicked off the first of seven scheduled tours of NPA neighborhoods in Chicago�s Austin community Ë the home and starting point for NPA founder Gale Cincotta.

The South Austin Coalition Community Council (SACCC), located in Chicago�s largest neighborhood (boasting over 118,000 residents) hosted the tour that included key executives from Citigroup and CitiFinancial, neighborhood residents, partners and community leaders.

SACCC highlighted several organizational and neighborhood victories and projects in development during the tour. Stops on the tour included: new bank branches won through community reinvestment campaigns, 40 new homes which SACCC was a partner in building in 1988, a new $2.1 million program and advocacy senior center that SACCC will manage in cooperation with the Chicago Department on Aging and Community Heroes Park, which is dedicated in honor of local community activists Ë including Gale Cincotta.

Citigroup executives also saw the evidence of predatory lending - blocks littered by boarded up homes where drug dealers operated openly. øWe showed them how much still needs to be done to make Austin the community it needs to be,Ó said Juanita Ruetes of SACCC�s CRA and Predatory Lending Committee.

Citigroup officials also saw the struggles that SACCCC and Austin residents continue to face. Despite a 20-year campaign by SACCC, Brach�s Candy Company will be moving its operations to Mexico by year�s end. HOW MANY PEOPLE WILL LOSE THEIR JOB? Unemployment and its side effects of crime and blight are prevalent in Austin, but the neighborhood is on the rise.

øYou know the Citigroup people remarked that they were expecting a much more run down neighborhood Ë which showed what this community would have looked like without SACCCC,Ó commented George Lawson, a long-time SACCC member, as well as the Housing Chair and key moderator of the tour. øTheir comments reminded us of how important organizing is and that it�s a marathon, not a sprint.Ó

The next day the same officials traveled to Cleveland, OH to meet with members of the East Side Organizing Project (ESOP). øThis was an excellent opportunity for Citigroup to learn more about us and for us to learn more about them as we implement the partnership agreement,Ó said Sheila Ferguson, an ESOP board member. øWe could have spent all day showing them the different things we do and the issues that confront our community.Ó

The day began with Citigroup officials touring ESOP�s office. Over coffee, ESOP shared its history and the work the organization has done on safety, housing, education, banking and predatory lending during its ten-year history.

After nearly an hour of conversation, ESOP and Citigroup loaded a van and toured ESOP�s neighborhood. The first stop was at Harvard and E. 100 th St. where ESOP board member, Henry Hankins, explained that the nearly dozen boarded houses that could be seen were the result of a foreclosure by a predatory lender. øThis used to be a nice neighborhood but now these houses are just used by the drug boys,Ó Hankins explained.

Next stop was the home of Endia and William Eason who, working with ESOP, have fought their predatory lender to have the terms of their loan re-structured. øThey almost got me and they can get anyone,Ó said William Eason in the front of his house. øThese lenders need to be stopped,Ó he said.

At the corner of E. 131 st St. and Miles Ave., Inez Killingsworth, ESOP�s President, explained that the spot to be the home of a new Charter One Bank branch. øWe are working with Charter One to get more loans and banking services into our community,Ó Killingsworth said. øWe are looking forward to doing the same thing with CitiFinancial,Ó she added.

The tour concluded at Mount Olive Missionary Baptist Church where Rev. Larry Harris shared how the church is partnering with ESOP and other faith based organizations to create a jobs training program geared towards younger people.

After the two tours concluded, Citigroup executives commented that the tours were extremely beneficial. øI was impressed by the breadth of the involvement of the groups and€how committed they are to the issues,Ó commented Kathy Jordan, Citigroup Associate General Counsel.

In a letter to NPA leadership, Citigroup�s Director of Consumer Planning, Kevin Thurm stated, øThe driving tour, and our stops were important in helping us gain a better understanding of the work you and your colleagues and affiliates do. We look forward to€making progress on the issues we�ve discussed.Ó

In May of this year, NTIC entered into an historical agreement with CitiFinancial. This agreement, ceremoniously signed at this year�s annual NPA Conference, is a two-year partnership with the company and the first of its kind. While the agreement was widely touted for its focus on repairing bad mortgage loans made by the company in our communities, it also guaranteed that families would be offered traditional loans if they qualify, rather than being automatically offered high interest rate loans through CitiFinancial offices.

Citigroup officials are also set for tours in cities including Syracuse, NY; Cincinnati, OH and Bloomington, IL.