Centerline Capital Group Closes Two Low-income Housing Tax-credit Funds for $70MM to Finance Production and Preservation of 615 Units.

NEW YORK -- Centerline Capital Group ("Centerline" or the "Company"), a subsidiary of Centerline Holding Company (OTCBB:CLNH) and a provider of real estate financial and asset management services, today announced it closed two proprietary low-income housing tax-credit (LIHTC) funds to raise approximately $70 million of gross equity. The equity proceeds are intended to finance the production or preservation of eight affordable multifamily housing developments, containing 615 units of affordable housing.

Centerline's affordable housing transaction team led by Andrew J. Weil, Executive Managing Director of the Affordable Housing Group, acknowledges the capital markets have been constrained for well over a year, and raising money in the current environment, especially in the tax credit arena, has been difficult. "Raising two new investment funds speaks to investor confidence in Centerline's ability to raise capital and find opportunities that still exist in the tax-credit housing market," said Mr. Weil.

The eight properties designated to receive equity proceeds from the two investment funds include four located in Southern California, one near Philadelphia, one on the Gulf Coast, one in central Pennsylvania, and one in Virginia. All five geographic regions where the properties are located exhibit stresses in their single-family housing markets, where, as foreclosures increase, the need for adequate affordable multifamily housing increases.

The LIHTC Program was created as part of the Tax Reform Act of 1986 and is widely considered one of the most successful housing programs ever established, creating over 2 million affordable housing units since its inception. Part of its success is based on its public-private partnership between investors who gain tax benefits from investing in low-income housing and the state agencies that allocate the tax credits. Since inception of the LIHTC Program, Centerline-sponsored LIHTC funds have raised more than $9.8 billion of gross equity from third-party investors to support production of affordable multifamily housing.

About Centerline Capital Group

Centerline Capital Group, a subsidiary of Centerline Holding Company (OTC:CLNH), provides real estate financial and asset management services, including institutional debt and equity fund management, mortgage banking and primary and special loan servicing. As of March 31, 2009, Centerline had more than $14.3 billion of assets under management. Centerline is headquartered in New York, New York and has eight offices throughout the United States. For more information, please visit Centerline's website at http://www.centerline.com or contact Elizabeth Haukaas at 212.521.6453.

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. Other risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; risks related to the form and structure of our financing arrangements; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss from direct and indirect investments in commercial mortgage-backed securities ("CMBS") and collateralized debt obligations ("CDOs") and mortgage revenue bonds; risk of loss under mortgage banking loss sharing agreements; risks associated with providing credit intermediation; and risks associated with enforcement by our creditors of any rights or remedies which they may possess. 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.