NEW YORK CITY GETS $32 MILLION IN NEW AFFORDABLE HOUSING

CharterMac’s $19 Million Investment Made Possible Through New Freddie Mac Underwriting Initiative for Affordable Housing

New York, NY– CharterMac (AMEX: CHC) today announced that its subsidiaries have provided debt and equity financing for the development of two new affordable housing complexes totaling $19.2 million in the Bronx borough of New York City. New York City has an ongoing initiative to create and preserve affordable housing units. The new complexes will add 159 more units under that initiative. This is made possible by CharterMac teaming with Freddie Mac (NYSE: FRE) under a new financing program which expedites transactions, and therefore, the development of critically needed affordable units.

Freddie Mac and CharterMac joined together to help revitalize two underserved communities in the Bronx. Using Freddie Mac’s delegated underwriting initiative, CharterMac was able to expedite the underwriting of the transactions in exchange for sharing a portion of the risk. This initiative comes at a critical time for the Bronx areas involved, with many affordable properties close to 100% occupied and others with wait lists up to ten years. The Arker Companies, one of the premier affordable housing developers in New York City, and the developer of both properties, was also able to take advantage of Freddie Mac’s Forward Commitment product. This involved a four percent tax-exempt bond, “unfunded” forward commitment, and enabled the borrower to use variable rate financing with a swap credit enhancement execution.

“In affordable housing transactions timing is key, and developments can lose incentives if strict timelines are not adhered to,” said Patrick Martin, Managing Director of Related Capital Company, the subsidiary of CharterMac, which provided equity for the transaction. “Our new program with Freddie Mac adds a level of immediacy that was previously unheard of in affordable housing transactions.”

Related Capital Company provided $11.8 million in equity in exchange for tax credits generated by the two developments, while CharterMac Mortgage Capital provided $7.4 million in first mortgage financing that is credit enhanced with Freddie Mac’s backing under the risk-share program. The loan was originated by Timothy Leonhard, a vice president of CharterMac Mortgage.

"CharterMac’s track record for financing affordable housing was very impressive to us when we selected them as a partner in this initiative,” said Paul McDermott, Freddie Mac’s vice president of Multifamily Structured & Affordable Sourcing. “We look forward to continuing to support New York City’s goal of creating and preserving 65,000 affordable apartments through 2008. We hope to provide financing for more of these kinds of affordable housing across the nation. Our delegated underwriting initiative allows us to provide a higher level of convenience and service to borrowers in addition to furthering our goals of promoting affordable housing.”

In the case of the two Bronx financings, one was for a property on White Plains Road near the Bronx Zoo, and the other on Ogden Road in the Highbridge section. Both new developments also benefited from a New York City tax incentive program, 421a. The program encourages new multifamily housing in certain geographic areas by providing developers with benefits in the form of a tax exemption on the new value created by the development.

The end result, says Sol Arker of The Arker Companies, is that, “We’re bringing sorely needed new affordable apartments to the Bronx at a time when affordability in New York City has never been a more critical issue.” Mr. Arker cites skyrocketing prices for urban infill and condo conversions as contributing to the scarcity of quality affordable rental units in the city, as well as the aging of existing housing stock.

In the first of the two transactions, White Plains Courtyard will consist of a 100-unit, seven-story building at 2040 White Plains Road. Residences will range from studio to three-bedroom units of 512 square feet to 1,126 square feet, larger than typical apartments in the area, with rents expected to start at $562 per month. A rooftop playground adds to the attractiveness of the property, as do superior security measures. 16,200 square feet of ground level retail space will be occupied by Staples, the office supply chain.

The second transaction involves Ogden Avenue II Apartments, a 59-unit complex at 1471 Ogden Avenue in the Highbridge section, an area on the upswing with significant capital investment of late. The eight-story building will contain studio to two-bedroom apartments ranging in size from 411 square feet to 750 square feet, with rents expected to start at $562 per month. Amenities include a community room, playground and superior security measures. There is also 3,867 square feet of ground level commercial space.

All of the units at both properties will be targeted towards tenants earning 60% or less of the area median income, with 10% set-aside for formerly homeless households. The complexes are expected to be complete in the summer of 2007.

The Arker Companies, based in Woodmere, New York, is one of the preeminent developers of affordable housing in the New York City metropolitan area. The firm has nearly 50 years of residential and commercial development experience and has developed and constructed over 2,500 residential housing units, including over 1,000 affordable units.

CharterMac, through its subsidiaries, is one of the nation’s leading full-service real estate finance companies, with a strong core focus on multifamily financing. CharterMac offers capital solutions to developers and owners of commercial properties throughout the country and quality investment products to institutional and retail investors. Related Capital Company is a subsidiary of CharterMac that provides equity financing and related service to mid-market multifamily developers, also with an emphasis on affordable housing. CharterMac Mortgage Capital is a mortgage banking subsidiary of CharterMac that offers developers a full complement of conventional and tax-exempt mortgage products for market-rate and affordable multifamily properties through Fannie Mae, Freddie Mac, FHA, proprietary portfolio lending, and capital markets executions. For more information please visit www.chartermac.com, www.relatedcapital.com and www.chartermacmortgage.com.

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 30,000 multifamily properties totaling more than $75 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass-through securities and debt instruments in the capital markets. Freddie Mac invests in LIHTC funds sponsored by nonprofit and for-profit syndicators, and purchases tax credits in the secondary market. Over the years, Freddie Mac has made home possible for one in six homebuyers.

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. These risks are uncertainties are detailed in CharterMac’s Annual Report on Form 10-K for the period ending December 31, 2004, and in its other filings with the Securities and Exchange Commission. 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.

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