Charter Municipal Mortgage Acceptance Company Completes Third Guaranteed Tax Credit Transaction and $100 Million Bond Securitization.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 6, 2003

Charter Municipal Mortgage Acceptance Company ("CharterMac" or the "Company") (AMEX:CHC) today announced that it has closed its third transaction to guarantee tax benefits to investors in a partnership designed to earn federal low-income housing tax credits ("LIHTCs"). In addition, the Company announced that it has completed a $100 million revenue bond securitization, which is its first auction rate securitization.

"CharterMac is very pleased to complete two very significant transactions for the Company," said Stuart J. Boesky, President and Chief Executive Officer of CharterMac. "The guarantee transaction continues to present itself as a unique opportunity for the Company to receive a very attractive fee and return on equity for assuming risks implicit in our core business of acquiring tax-exempt revenue bonds that fund construction and ownership primarily of LIHTC properties. CharterMac's participation in the auction-rate securitization program will also strongly benefit CharterMac, as it will help reduce our exposure to the liquidity market, which has become of short supply and expensive as of late."

Guaranteed Tax Credit Transaction

On October 31, 2003, CharterMac completed its third guaranteed transaction in two years and its second in just two months, whereby CharterMac's wholly owned subsidiary agreed to back-up the guarantee of an investment grade-rated financial institution ("Primary Guarantor") of an agreed upon internal rate of return ("IRR") to the investors in Related Capital Guaranteed Corporate Partners II, L.P. - Series C ("RCGCP"). CharterMac's wholly owned subsidiary will receive a guarantee fee totaling approximately $3.4 million.

As with the previous two transactions, RCGCP is a fund sponsored by Related Capital Company ("RCC"), an affiliate of Related Charter, LP, CharterMac's manager. The investors in RCGCP will be allocated LIHTCs and other tax benefits in return for investing approximately $60.6 million to fund, in part, the development and ownership of seven multifamily properties. The properties were also financed with approximately $113.3 million of tax-exempt and taxable debt, $110.8 million of which were revenue bonds acquired by CharterMac.

The transaction was structured with two distinct phases: one to guarantee the IRR through the lease-up phase of the properties and the second to guarantee the IRR until the end of the tax credit compliance period. CharterMac received approximately $2.0 million of its guarantee fee for participation in the transaction at closing. CharterMac will receive an additional $1.0 million in October 2004 and a final payment of approximately $341,000 in April 2005.

Auction Rate Securitization

In response to an expiring liquidity contract in our current Private Label Tender Options Program ("TOPs"), on October 30, 2003, CharterMac redeemed $118 million of low-floater certificates outstanding under this program's Nat-1 Series. Certain bonds were then removed from the Nat-1 Series Trust and redeposited into CharterMac Auction Rate Certificate Trust I, along with additional bonds. On October 30, 2003, this new trust issued $100 million of auction rate certificates.

The auction rate certificates pertaining to this transaction, which are secured by tax-exempt revenue bonds, will be auctioned through UBS Financial Services Inc. and are sold primarily to corporations as a tax-exempt money market alternative. The $100 million tranche of auction rate certificates, which is divided into two $50 million sub-series, will have an initial rate of 1% and will then be reset every 35 days through a dutch auction process.

About the Company

CharterMac is one of the nation's leading full-service multifamily finance companies, providing capital solutions to developers and owners of multifamily rental housing throughout the country. CharterMac's current revenue bond portfolio includes direct and indirect interests in revenue bonds securing over 33,800 units of multifamily housing in 24 states and the District of Columbia.

For more information, please visit our website at http://www.chartermac.com or contact the Shareholder Services Department directly at [phone].

Certain statements in this press release 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. Such forward-looking statements speak only as of the date of this press release. CharterMac 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 CharterMac's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.