Centerline Capital Group Closes Two Tax Credit Funds Totaling $405 Million.

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 two low income housing tax credit ("LIHTC") funds totaling approximately $405.0 million during the second quarter of 2007.

The first fund closed, Centerline Credit Enhanced Partnership LP - Series H, Number 1 ("CCEP"), was a $96.5 million credit intermediated fund. 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. CCEP will finance a portion of the development and ownership of eleven properties. The properties were also financed with the proceeds from approximately $94.8 million of tax-exempt mortgage bonds, which were acquired by Centerline.

The second fund closed, Centerline Corporate Partners XXXV, L.P. ("CCP 35"), was a $308.5 million multi-investor fund. CCP 35 is expected to be comprised of equity investments in approximately 32 LIHTC properties located throughout the United States, and was sold to 12 institutional investors.

"Centerline Corporate Partners XXXV is the largest institutional tax credit fund our Company has closed to date, demonstrating the continued investor demand for quality affordable housing investment products with strong sponsorship," said Andrew J. Weil, Executive Managing Director and Head of Centerline's Affordable Housing Group. "These two funds combined will provide over 5,194 units of affordable housing throughout the United States."

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 ten 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 800-831-4826.

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 the 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 banking 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. 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.