Centerline Capital Group Closes $108.2 Million Low Income Housing Tax Credit Investment Fund.

NEW YORK -- Centerline Capital Group ("Centerline" or the "Company"), a subsidiary of Centerline Holding Company (NYSE:CHC), today announced the Company's Affordable Housing Group closed Centerline Credit Enhanced Partnership LP - Series L, Number 1 ("CCEP"), a $108.2 million low income housing tax credit ("LIHTC") investment fund, during the third quarter of 2007. Centerline Financial LLC ("Centerline Financial"), Centerline's credit risk products subsidiary, provided a credit default swap to CCEP in order to provide to the investor a minimum internal rate of return.

"We are exceptionally pleased to have closed this $108 million fund, given the current unrest in the broader capital markets," said Andrew J. Weil, Executive Managing Director of Centerline and Head of the Affordable Housing Group. "In times of market instability, there tends to be a flight to quality and capital flows to strong investment sponsors like Centerline and stable investments like affordable housing."

CCEP will finance a portion of the development costs of 10 affordable multifamily properties. Five of the properties were also financed, in part, with the proceeds from $53.3 million of tax-exempt mortgage revenue bonds acquired by Centerline.

About the Company

Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE:CHC), lends, invests and manages capital, with a core focus on the real estate industry. Centerline Capital Group is headquartered in New York, New York and has over 500 employees in nine offices throughout the United States. For more information, please visit Centerline's website at http://www.centerline.com or contact the Investor Relations Department directly at [phone].

Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission, and include, among others, adverse changes in real estate markets; competition with other companies; interest rate fluctuations; general economic and business conditions; environmental/safety requirements; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; risk of default associated with the mortgage revenue bonds and other securities held by us or our subsidiaries; risks associated with providing credit intermediation; risk of loss under mortgage loan loss sharing agreements; risk of loss from direct and indirect investments in CMBS; the risk that relationships with key investors and developers may not continue; our ability to generate fee income may not continue; and risks related to the form and structure of our financing arrangements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.