CharterMac Closes Three Tax Credit Funds Totaling $386 Million.

NEW YORK -- CharterMac (the "Company") (NYSE: CHC) today announced that its subsidiary, CharterMac Capital LLC ("CharterMac Capital"), closed three low income housing tax credit ("LIHTC") funds totaling nearly $386 million during the third quarter of 2006.

Two of the three funds closed, representing over $175 million of equity, were credit intermediated funds, whereby the investor is to receive a guaranteed rate of return. The credit intermediation was provided by IXIS Financial Products Inc. ("IXIS"). Charter Mac Corporation ("CM Corp."), CharterMac's wholly owned subsidiary, has agreed to back-up IXIS' obligation, and CM Corp. and IXIS will share the credit intermediation fee. The third fund, CharterMac Corporate Partners XXXIII, L.P. ("CCP 33") is a multi-investor corporate tax credit fund which is expected to be comprised of equity investments in approximately 25 LIHTC properties located throughout the United States, and was sold to six institutional investors.

"The third quarter was very strong for our tax credit fund management business," commented Marc D. Schnitzer, Chief Executive Officer and President of CharterMac. "Year-to-date, CharterMac Capital has raised approximately $802 million of equity from institutional investors for investments in LIHTC funds. Tax credit fund sponsorship continues to be an extremely stable business for CharterMac and we are well positioned to meet our volume and profit goals for the remainder of the year for this division."

About the Company

CharterMac, through its subsidiaries, is one of the nation's leading full-service real estate finance companies. CharterMac offers capital solutions to developers and owners of properties throughout the country and quality real estate investment products to institutional and retail investors. For more information, please visit CharterMac's website at http://www.chartermac.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 CharterMac'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 including, among other things, competition with other companies; interest rate fluctuations; general economic and business conditions, which will, among other things, affect the availability and credit worthiness of prospective tenants, lease rents and the terms and availability of financing for properties financed by mortgage revenue bonds we own; environment/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; 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. 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.