UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549



                                   FORM 8-K

            Current Report Pursuant to Section 13 or 15 (d) of the
                        Securities Exchange Act of 1934



                                 July 17, 2003
              (Date of Report (Date of Earliest Event Reported))



                       MUNICIPAL MORTGAGE & EQUITY, LLC
            (Exact Name of Registrant as Specified in Its Charter)

         Delaware                      011-11981             52-1449733
(State or other jurisdiction   (Commission File Number)   (I.R.S. Employer
  of incorporation or                                      Identification No.)
   organization)

 218 North Charles Street, Suite 500,                            21201
       Baltimore, Maryland
(Address of Principal Executive Offices)                       (Zip Code)

                                (443) 263-2900
              (Registrant's Telephone Number, including Area Code)


<PAGE>

Item 7.  Financial Statements and Exhibits.

         (c) Exhibits.
                  Exhibit No.       Description of Document

                  99.1              Earnings Package, dated June 30, 2003

                  99.2              Earnings Press Release and Financial
                                    Statements, dated June 30, 2003

                  99.3              Production Press Release,
                                    dated June 30, 2003


Item 12.  Results of Operations and Financial Condition.

     On July 17,  2003,  Municipal  Mortgage  &  Equity,  LLC  (the  "Company"),
distributed an earnings package to Analysts relating to the Company's  financial
performance  for the quarter  ended June 30, 2003. A copy of the package,  dated
June 30, 2003, is attached hereto as Exhibit 99.1.

     On July 17, 2003,  the Company  distributed  an earnings  press release and
financial  statements  relating to the Company's  financial  performance for the
quarter  ended  June  30,  2003.  A copy  of the  press  release  and  financial
statements, dated June 30, 2003, is attached hereto as Exhibit 99.2.

     On July 17,  2003,  the Company  distributed  a  production  press  release
relating to the Company's production volume for the quarter ended June 30, 2003.
A copy of the press release,  dated June 30, 2003, is attached hereto as Exhibit
99.3.


<PAGE>

Exhibit 99.1
------------









                       MUNICIPAL MORTGAGE AND EQUITY, LLC

                                EARNINGS PACKAGE

                           QUARTER ENDED JUNE 30, 2003








<PAGE>
                                TABLE OF CONTENTS



GAAP Income Statement for the three and
  six months ended June 30, 2003                                      Page 5

Variance Analysis for GAAP                                            Page 6

Rolling Five Quarters - GAAP                                          Page 8

Calculation of Diluted Earnings Per Share                             Page 9

GAAP Net Income to CAD reconcilation for
  the Rolling Five Quarters                                           Page 10

CAD Statement for the three and six months
  ended June 30, 2003                                                 Page 12

Variance Analysis for CAD                                             Page 13

Rolling Five Quarters - CAD                                           Page 15

Condensed Balance Sheets and Book Value Per Share                     Page 16

Summary of 2nd Quarter 2003 Investment Activity                       Page 17

Participating Portfolio Property Net Operating
  Income Trends                                                       Page 18

Units and Average Rents for Bond Portfolio                            Page 19

Conference Call Script - Combined Tax Credit Equity Business          Page 25


<PAGE>
<TABLE>

                                               MUNICIPAL MORTGAGE & EQUITY, LLC
                                          CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (In thousands, except share and per share data)
                                                         (unaudited)

                                                                         For the three months ended     For the six months ended
                                                                                 June 30,                        June 30,
                                                                       -----------------------------   -----------------------------
                                                                          2003            2002            2003            2002
                                                                       -------------  --------------   -------------  --------------
<S>                                                                    <C>             <C>              <C>            <C>
INCOME:
Interest income
     Interest on bonds and residual interests in bond securitizations  $     13,929    $     15,399     $    29,914    $     30,561
     Interest on loans                                                        7,563           8,594          17,066          17,024
     Interest on short-term investments                                         332             244             524             731
                                                                       -------------  --------------   -------------  --------------
        Total interest income                                                21,824          24,237          47,504          48,316
                                                                       -------------  --------------   -------------  --------------
Fee income
     Syndication fees                                                         1,825           2,380           3,236           3,998
     Origination fees                                                         2,219           1,505           2,917           2,594
     Loan servicing fees                                                      1,838           1,660           3,747           3,568
     Asset management and advisory fees                                       1,198           1,040           2,274           1,907
     Other income                                                             3,309           1,259           5,506           2,404
                                                                       -------------  --------------   -------------  --------------
        Total fee income                                                     10,389           7,844          17,680          14,471
                                                                       -------------  --------------   -------------  --------------
Net gain on sales                                                             1,453             703           2,731           2,869
                                                                       -------------  --------------   -------------  --------------
Total income                                                                 33,666          32,784          67,915          65,656
                                                                       -------------  --------------   -------------  --------------
EXPENSES:
Interest expense                                                              8,724           8,487          19,092          17,459
Salaries and benefits                                                         8,671           5,930          14,637          10,757
General and administrative                                                    2,113           1,697           3,938           3,423
Professional fees                                                               877           1,967           1,866           2,604
Amortization of mortgage servicing rights and other intangibles                 414             333             803             651
                                                                       -------------  --------------   -------------  --------------
Total expenses                                                               20,799          18,414          40,336          34,894
                                                                       -------------  --------------   -------------  --------------
Net holding gains (losses) on derivatives                                    (2,449)         (7,721)            424          (4,609)
Impairments and valuation allowances related to investments                  (1,144)              -          (1,144)           (110)
Net gains (losses) from equity investments in partnerships                   (2,157)             94          (2,904)           (229)
Income tax benefit (expense)                                                    540            (828)            472          (1,859)
Income allocable to preferred shareholders and minority interests in
     subsidiary companies                                                    (2,854)         (2,995)         (5,679)         (5,989)
                                                                       -------------  --------------   -------------  --------------
Net income from continuing operations                                         4,803           2,920          18,748          17,966
Discontinued operations                                                      25,748               -          25,748               -
                                                                       -------------  --------------   -------------  --------------
Net Income                                                             $     30,551    $      2,920     $    44,496    $     17,966
                                                                       =============  ==============   =============  ==============
LESS:
     Net income allocable to term growth shares                                   -               -               -             153
                                                                       -------------  --------------   -------------  --------------
Net income allocated to common shares                                  $     30,551    $      2,920     $    44,496    $     17,813
                                                                       =============  ==============   =============  ==============

EARNINGS PER COMMON SHARE:
Basic earnings per common share:
     Net income from continuing operations                             $       0.17    $       0.12     $      0.67    $       0.73
     Discontinued operations                                                   0.89               -            0.91               -
                                                                       -------------  --------------   -------------  --------------
     Basic earnings per common share                                   $       1.06    $       0.12     $      1.58    $       0.73
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          28,857,305      25,252,124      28,104,281      24,423,091
Diluted earnings per common share:
     Net income from continuing operations                             $       0.16    $       0.11     $      0.66    $       0.71
     Discontinued operations                                                   0.89               -            0.90               -
                                                                       -------------  --------------   -------------  --------------
     Diluted earnings per common share                                 $       1.05    $       0.11     $      1.56    $       0.71
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          29,213,062      25,835,808      28,451,480      25,022,631

</TABLE>
<PAGE>
VARIANCE ANALYSIS FOR GAAP

2nd Quarter 2003 Compared to 2nd Quarter 2002:

Total income for the second quarter of 2003 increased $0.9 million over the same
period last year due  primarily  to the  following  changes:  (1) a $2.1 million
increase in other income due primarily to: (i) a $1.0 million fee collected on a
conventional  equity  deal;  (ii)  $0.8  million  collected  as the  result of a
collateral  release  after  the  sale  of a  property;  (iii)  $0.8  million  in
prepayment fees collected from the early payment of tax-exempt bond investments;
and (iv) a $0.5  million  decrease  in  commission  income;  (2) a $0.8  million
increase in net gain on sales due to the termination of interest rate swaps; (3)
a $0.7 million increase in origination fees due to increased  volume;  and (4) a
$2.5  million  decrease in accrual of interest on bonds,  residual  interests in
bond securitizations and loans.

Total  expenses  for the second  quarter  increased  $2.4  million over the same
period last year due  primarily  to the  following  changes:  (1) a $2.7 million
increase in salaries and  benefits  resulting  from a $0.8  million  increase in
salaries and other  compensation  and a $2.0 million  increase in bonus expense;
(2) a $0.4 million increase in general and administrative expenses due primarily
to: (i) increases totaling $0.3 million due to telephone, bank fees, memberships
and dues and costs  related to the  integration  of HCI; and (ii) a $0.1 million
increase in travel and  entertainment;  (3) a $0.2 million  increase in interest
expense   associated   with  an  increase   in   financing   costs   related  to
on-balance-sheet  securitizations  and larger  average  notes  payable  balances
outstanding during the quarter;  and (4) a $1.1 million decrease in professional
fees due primarily to: (i) a $0.5 million  decrease in commission  expense;  and
(ii) a $0.4 million decrease in legal fees due to information  systems and other
corporate  initiatives  in the  prior  year.  Commission  expense  is no  longer
incurred  by the Company  because  the  pass-through  of  commission  income and
expense has been transferred to the syndicated tax credit equity funds.

The Company recorded net holding losses of $2.4 million for the change in market
value of the Company's derivative financial instruments, which is a $5.3 million
decrease  from the same  period  of 2002 due  primarily  to the  termination  of
interest rate swaps. The Company recorded  impairments  totaling $1.1 million on
one bond and three taxable loans.  Losses from equity  investments  totaled $2.2
million,  which is a $2.3 million  increase  from the same period of 2002 due to
losses  from the  CAPREIT  Tera  investment  and  warehoused  tax credit  equity
properties. The Company also recorded $0.5 million in income tax benefit. Income
tax expense  decreased  $1.4 million from the same period in 2002 primarily as a
result of taxable losses generated by the CAPREIT investments.

The Company also recorded  $25.7 million in  discontinued  operations  resulting
from the sale of a property that was previously held by the Company.


Year-to-Date 2003 Compared to Year-to-Date 2002:

Total income for the six months ended June 30, 2003  increased $2.3 million over
the same period last year due  primarily to the  following  changes:  (1) a $3.1
million  increase in other  income due  primarily  to: (i) $1.6  million in fees
collected on a conventional  equity deal;  (ii) $1.7 million in prepayment  fees
collected  from the early payment of  tax-exempt  bond  investments;  (iii) $0.8
million  collected  as the result of a  collateral  release  after the sale of a
property;  and (iv) a $1.0 million decrease in commission income; and (2) a $0.8
million  decrease  in  syndication  fees  due to a  decrease  in the  volume  of
syndications  closed  combined  with taking $0.5 million in  organizational  and
offering  cost  reimbursements  related to closed  syndicated  tax credit equity
funds into income  during the first  quarter of 2002,  whereas no such fees were
recognized during 2003.

Total  expenses  for the six months ended June 30, 2003  increased  $5.4 million
over the same period last year due  primarily to the  following  changes:  (1) a
$3.9 million  increase in salaries and  benefits  resulting  from a $1.0 million
increase in salaries and other compensation and a $2.9 million increase in bonus
expense;  (2) a $1.6 million  increase in interest  expense  associated  with an
increase in financing  costs  related to  on-balance-sheet  securitizations  and
larger average notes payable balances outstanding during the quarter; (3) a $0.5
million  increase in general and  administrative  expenses due primarily to: (i)
increases  totaling $0.4 million due to telephone,  bank fees,  letter of credit
fees, memberships and dues and costs related to the integration of HCI; and (ii)
a $0.1  million  increase in  investment  acquisition  expenses;  and (4) a $0.7
million  decrease in  professional  fees due  primarily  to: (i) a $1.0  million
decrease in  commission  expense and (ii) a $0.3 million  increase in consulting
fees  due to an  internal  controls  project  and  research  related  to the HCI
acquisition.

The Company recorded net holding losses of $0.4 million for the change in market
value of the Company's derivative financial instruments, which is a $5.0 million
decrease  from the $4.6 million of losses  recorded in 2002 due primarily to the
termination of interest rate swaps.  The Company recorded  impairments  totaling
$1.1 million on one bond and three taxable loans. Losses from equity investments
totaled $2.9 million,  which is a $2.7 million  increase from the same period of
2002 due to losses from the CAPREIT Tera  investment  and  warehoused tax credit
equity properties. The Company also recorded $0.5 million in income tax benefit.
Income tax expense  decreased  $2.3 million  from 2002  primarily as a result of
taxable losses generated by the CAPREIT investments.

The Company also recorded  $25.7 million in  discontinued  operations  resulting
from the sale of a property that was previously held by the Company.

<PAGE>
<TABLE>

                                               MUNICIPAL MORTGAGE & EQUITY, LLC
                                         CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (In thousands, except share and per share data)
                                                         (unaudited)

                                                         Qtr Ended       Qtr Ended      Qtr Ended      Qtr Ended      Qtr Ended
INCOME:                                                   06/30/03        03/31/03       12/31/02       09/30/02       06/30/02
                                                       --------------  --------------  -------------  ------------- -------------
<S>                                                     <C>             <C>            <C>            <C>           <C>
Interest income
     Interest on bonds and residual interests in
       bond securitizations                             $     13,929    $     15,985   $     13,953   $     15,409  $     15,399
     Interest on loans                                         7,563           9,503          9,195          8,676         8,594
     Interest on short-term investments                          332             192            264            260           244
                                                       --------------  --------------  -------------  ------------- -------------
        Total interest income                                 21,824          25,680         23,412         24,345        24,237
                                                       --------------  --------------  -------------  ------------- -------------
Fee income
     Syndication fees                                          1,825           1,411          2,456            767         2,380
     Origination fees                                          2,219             698          2,023          2,014         1,505
     Loan servicing fees                                       1,838           1,909          1,711          1,544         1,660
     Asset management and advisory fees                        1,198           1,076          1,011            969         1,040
     Other income                                              3,309           2,197          1,132            899         1,259
                                                       --------------  --------------  -------------  ------------- -------------
        Total fee income                                      10,389           7,291          8,333          6,193         7,844
                                                       --------------  --------------  -------------  ------------- -------------
Net gain on sales                                              1,453           1,278          5,032            657           703
                                                       --------------  --------------  -------------  ------------- -------------
Total income                                                  33,666          34,249         36,777         31,195        32,784
                                                       --------------  --------------  -------------  ------------- -------------
EXPENSES:
Interest expense                                               8,724          10,368         10,366          8,771         8,487
Salaries and benefits                                          8,671           5,966          6,475          5,446         5,930
General and administrative                                     2,113           1,825          1,880          1,756         1,697
Professional fees                                                877             989          1,472            884         1,967
Amortization of mortgage servicing rights and
  other intangibles                                              414             389            329            334           333
                                                       --------------  --------------  -------------  ------------- -------------
Total expenses                                                20,799          19,537         20,522         17,191        18,414
                                                       --------------  --------------  -------------  ------------- -------------
Net holding gains (losses) on derivatives                     (2,449)          2,873           (333)        (9,921)       (7,721)
Impairments and valuation allowances related to
  investments                                                 (1,144)              -           (620)             -             -
Net gains (losses) from equity investments in
  partnerships                                                (2,157)           (747)        (1,341)        (1,487)           94
Income tax benefit (expense)                                     540             (68)          (260)           635          (828)
Income allocable to preferred shareholders and
  minority interests in subsidiary companies                  (2,854)         (2,825)        (2,955)        (2,994)       (2,995)
                                                       --------------  --------------  -------------  ------------- -------------
Net income from continuing operations                          4,803          13,945         10,746            237         2,920
Discontinued operations                                       25,748               -              -              -             -
                                                       --------------  --------------  -------------  ------------- -------------
Net income allocated to common shares                   $     30,551    $     13,945   $     10,746   $        237  $      2,920
                                                       ==============  ==============  =============  ============= =============
EARNINGS PER COMMON SHARE:
Basic earnings per common share:
     Net income from continuing operations              $       0.17    $       0.51   $       0.42   $       0.01  $       0.12
     Discontinued operations                                    0.89               -              -              -             -
                                                       --------------  --------------  -------------  ------------- -------------
     Basic earnings per common share                    $       1.06    $       0.51   $       0.42   $       0.01  $       0.12
                                                       ==============  ==============  =============  ============= =============
     Weighted average common shares outstanding           28,857,305      27,342,870     25,426,254     25,329,103    25,252,124
Diluted earnings per common share:
     Net income from continuing operations              $       0.16    $       0.50   $       0.41   $       0.01  $       0.11
     Discontinued operations                                    0.89               -              -              -             -
                                                       --------------  --------------  -------------  ------------- -------------
     Diluted earnings per common share                  $       1.05    $       0.50   $       0.41   $       0.01  $       0.11
                                                       ==============  ==============  =============  ============= =============
     Weighted average common shares outstanding           29,213,062      27,681,511     25,917,641     25,916,151    25,835,808

Note: Certain prior quarter amounts have been reclassified to conform to the 06/30/03 presentation.

</TABLE>
<PAGE>
<TABLE>

                                                       Municipal Mortgage & Equity, LLC
                                                   Reconciliation of Basic and Diluted EPS
                                                                 (unaudited)



                                           For the three months ended June 30, 2003     For the three months ended June 30, 2002
                                             Income          Shares       Per Share       Income         Shares        Per Share
                                            (Numerator)   (Denominator)     Amount      (Numerator)    (Denominator)    Amount
                                           ------------------------------------------  -------------------------------------------
<S>                                         <C>              <C>           <C>           <C>             <C>            <C>
(in thousands, except share and per share data)

Basic EPS

Net income from continuing operations       $    4,803                     $    0.17     $    2,920                     $    0.12
Discontinued operations                         25,748                          0.89              -                             -
                                           ------------                   -----------    -----------                  ------------
Income allocable to common shares           $   30,551       28,857,305    $    1.06     $    2,920      25,252,124     $    0.12
                                           ============                   ===========    ===========                  ============

Effect of Dilutive Securities

Options and deferred shares                                     355,757                                     450,829

Earnings contingency                                                  -                                     132,855
                                                         ---------------                              --------------

Diluted EPS

Net income from continuing operations       $    4,803                     $    0.16     $    2,920                     $    0.11
Discontinued operations                         25,748                          0.89              -                             -
                                           ------------                   -----------  -------------                  ------------
Income allocable to common shares
   plus assumed conversions                 $   30,551       29,213,062    $    1.05     $    2,920      25,835,808     $    0.11
                                           ============  ===============  ===========  =============  ==============  ============

                                            For the six months ended June 30, 2003       For the six months ended June 30, 2002
                                             Income          Shares       Per Share       Income         Shares        Per Share
                                            (Numerator)   (Denominator)     Amount      (Numerator)    (Denominator)    Amount
                                           ------------------------------------------  -------------------------------------------
(in thousands, except share and per share data)

Basic EPS

Net income from continuing operations       $   18,748                     $    0.67     $   17,813                     $    0.73
Discontinued operations                         25,748                          0.91              -                             -
                                           ------------                   -----------    -----------                  ------------
Income allocable to common shares           $   44,496       28,104,281    $    1.58     $   17,813      24,423,091     $    0.73
                                           ============                   ===========                                 ============
Effect of Dilutive Securities

Options and deferred shares                                     347,199                                     466,685

Earnings contingency                                                  -                                     132,855
                                                         ---------------                              --------------
Diluted EPS

Net income from continuing operations       $   18,748                     $    0.66     $    2,920                     $    0.71
Discontinued operations                         25,748                          0.90              -                             -
                                           ------------                   -----------    -----------                  ------------
Income allocable to common shares
   plus assumed conversions                 $   44,496       28,451,480    $    1.56     $   17,813      25,022,631     $    0.71
                                           ============  ===============  ===========  =============  ==============  ============

</TABLE>
<PAGE>
<TABLE>

                                                MUNICIPAL MORTGAGE & EQUITY, LLC
                                 RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
                                                         (In thousands)
                                                          (unaudited)

                                                      Qtr Ended        Qtr Ended       Qtr Ended       Qtr Ended       Qtr Ended
INCOME:                                                06/30/03        03/31/03        12/31/02        09/30/02         06/30/02
                                                    ---------------  --------------  --------------  --------------  --------------
<S>                                                  <C>              <C>             <C>             <C>             <C>
Interest income
      Interest on bonds and residual
        interests in bond securitizations            $      13,929    $     15,985    $     13,953    $     15,409    $     15,399
      Interest on loans                                      7,563           9,503           9,195           8,676           8,594
      Interest on short-term investments                       332             192             264             260             244
                                                    ---------------  --------------  --------------  --------------  --------------
         Total interest income                              21,824          25,680          23,412          24,345          24,237
                                                    ---------------  --------------  --------------  --------------  --------------
Fee income
      Syndication fees                                       1,825           1,411           2,456             767           2,380
      Origination fees                                       2,219             698           2,023           2,014           1,505
      Loan servicing fees                                    1,838           1,909           1,711           1,544           1,660
      Asset management and advisory fees                     1,198           1,076           1,011             969           1,040
      Other income                                           3,309           2,197           1,132             899           1,259
                                                    ---------------  --------------  --------------  --------------  --------------
         Total fee income                                   10,389           7,291           8,333           6,193           7,844
                                                    ---------------  --------------  --------------  --------------  --------------
Net gain on sales                                            1,453           1,278           5,032             657             703
                                                    ---------------  --------------  --------------  --------------  --------------
Total income                                                33,666          34,249          36,777          31,195          32,784
                                                    ---------------  --------------  --------------  --------------  --------------
EXPENSES:
Interest expense                                             8,724          10,368          10,366           8,771           8,487
Salaries and benefits                                        8,671           5,966           6,475           5,446           5,930
General and administrative                                   2,113           1,825           1,880           1,756           1,697
Professional fees                                              877             989           1,472             884           1,967
Amortization of mortgage servicing rights
  and other intangibles                                        414             389             329             334             333
                                                    ---------------  --------------  --------------  --------------  --------------
Total expenses                                              20,799          19,537          20,522          17,191          18,414
                                                    ---------------  --------------  --------------  --------------  --------------
Net holding gains (losses) on derivatives                   (2,449)          2,873            (333)         (9,921)         (7,721)
Impairments and valuation allowances related
  to investments                                            (1,144)              -            (620)              -               -
Net gains (losses) from equity investments
  in partnerships                                           (2,157)           (747)         (1,341)         (1,487)             94
Income tax benefit (expense)                                   540             (68)           (260)            635            (828)
Income allocable to preferred shareholders
  and minority interests in subsidiary companies            (2,854)         (2,825)         (2,955)         (2,994)         (2,995)
                                                    ---------------  --------------  --------------  --------------  --------------
Net income from continuing operations                        4,803          13,945          10,746             237           2,290
Discontinued operations                                     25,748               -               -               -               -
                                                    ---------------  --------------  --------------  --------------  --------------
Net income allocated to common shares                $      30,551    $     13,945    $     10,746    $        237    $      2,920
                                                    ===============  ==============  ==============  ==============  ==============

Conversion to Cash Available for Distribution:
      (1)Mark to market adjustments                  $       2,449    $     (2,873)   $        333    $      9,921    $      7,721
      (2)Equity investments                                  3,732           2,409           2,837           3,247              79
      (3)Net gain on sales                                 (10,486)           (327)         (3,395)           (450)           (601)
      (3)Amortization of capitalized mortgage
           servicing fees                                      414             352             329             334             333
      (4)Origination fees and other income, net              1,335             282           1,376              54           1,450
      (5)Valuation allowances and
           other-than-temporary impairments                  1,097               -             620               -               -
      (6)Deferred tax expense                                  984             628             703            (462)            483
      (7)Discontinued operations                           (25,748)              -               -               -               -
      (7)Interest income                                    10,793               -               -               -               -
                                                    ---------------  --------------  --------------  --------------  --------------
Cash Available for Distribution (CAD)                $      15,121    $     14,416    $     13,549    $     12,881    $     12,385
                                                    ===============  ==============  ==============  ==============  ==============

Notes
(1)  For GAAP  reporting,  the Company records the non-cash change in fair value
     of its  investment  in interest rate swaps and other  derivative  financial
     instruments  through net income.  These  non-cash  gains and losses are not
     included in the Company's calculation of CAD.
(2)  For GAAP  reporting,  the  Company  accounts  for  various  investments  in
     partnerships using the equity accounting method. As a result, the Company's
     allocable share of the income or loss from the  partnerships is reported in
     income (losses) from equity  investments in  partnerships.  The income from
     these partnerships  includes  depreciation  expense and changes in the fair
     value of investments in derivatives. For GAAP reporting,  distributions are
     treated as a return of capital. For CAD reporting,  the Company records the
     cash  distributions it receives from the  partnerships as other income.  In
     addition, a portion of the income or loss from partnerships is reduced by a
     minority interest for both GAAP and CAD.
(3)  For GAAP  reporting,  the  Company  recognizes  non-cash  gains and  losses
     associated with the sale of assets or capitalization of mortgage  servicing
     rights.  The  capitalized  mortgage  servicing  rights are  amortized  into
     expense over the estimated life of the serviced  loans.  The non-cash gains
     and the associated amortization expense are not included in CAD.
(4)  Origination  fees and certain other income amounts are recognized as income
     when  received for CAD  purposes,  but for GAAP  reporting  these items are
     deferred  and  amortized  into  income  over  the  life  of the  associated
     investment. This adjustment represents the net difference, for the relevant
     period,  between  fees  taken into  income  when  received  for CAD and the
     amortization of fees recorded for GAAP.
(5)  For  GAAP  reporting,   the  Company  records   valuation   allowances  and
     other-than-temporary  impairments on its  investments  in loans,  bonds and
     other  bond-related  investments.  Such non-cash  charges do not affect the
     cash  flow  generated  from the  operation  of the  underlying  properties,
     distributions  to shareholders,  or the tax-exempt  status of the income of
     the financial  obligation under the bonds.  Therefore,  these items are not
     included in the calculation of CAD.
(6)  For GAAP  reporting,  the  Company's  income tax  expense  contains  both a
     current and a deferred  component.  Only the Company's  current  income tax
     expense is reflected in CAD.
(7)  For  GAAP  reporting,  the  Company  recognized  a gain  upon the sale of a
     property.   This  gain  was  required  to  be  classified  as  discontinued
     operations  because the Company owned the property  prior to the sale.  For
     CAD reporting,  the gain was significantly  less due to recording a portion
     of the proceeds as interest income. In addition,  the carrying value of the
     tax-exempt bond associated with the property was significantly more for CAD
     due to an impairment previously recognized for GAAP.

</TABLE>
<PAGE>
<TABLE>
                                                MUNICIPAL MORTGAGE & EQUITY, LLC
                                        CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
                                                        (Unaudited)
                                        (In thousands, except share and per share data)

                                                                           For the three months ended      For the six months ended
                                                                                   June 30,                        June 30,
                                                                          ----------------------------   ---------------------------
                                                                             2003           2002             2003           2002
                                                                          ------------  --------------   -------------  ------------
<S>                                                                       <C>            <C>              <C>            <C>
SOURCES OF CASH:
Interest on bonds, residual interests in bond securitizations and loans   $    31,597    $   23,377       $   56,445     $   46,340
Interest on short-term investments                                                332           244              524            731
Syndication fees                                                                1,825         2,380            3,236          3,998
Origination fees                                                                2,711         3,005            3,871          4,513
Loan servicing fees                                                             1,835         1,660            3,744          3,568
Asset management and advisory fees                                              1,198         1,040            2,274          1,907
Distributions from equity investments in partnerships                           1,716           173            3,547            290
Other income                                                                    4,221         1,238            6,312          2,584
Net gain (loss) on sales                                                       (9,033)          102           (8,082)           142
                                                                          ------------  --------------   -------------  ------------
TOTAL SOURCES OF CASH                                                          36,402        33,219           71,871         64,073
                                                                          ------------  --------------   -------------  ------------
EXPENSES:
Interest expense                                                                8,102         7,900           17,941         16,190
Salaries and benefits                                                           8,671         5,930           14,637         10,757
Professional fees                                                                 877         1,967            1,866          2,604
General and administrative                                                      2,113         1,697            3,938          3,423
Loan loss expense                                                                  47             -               47              -
Income tax expense (benefit)                                                   (1,524)          345           (2,084)           759
                                                                          ------------  --------------   -------------  ------------
TOTAL EXPENSES                                                                 18,286        17,839           36,345         33,733
                                                                          ------------  --------------   -------------  ------------

CASH AVAILABLE FOR DISTRIBUTION                                                18,116        15,380           35,526         30,340
                                                                          ------------  --------------   -------------  ------------

LESS:
Cash allocable to preferred shareholders and term growth shares,
including preferred shareholders in a subsidiary company                        2,995         2,995            5,989          6,142
                                                                          ------------  --------------   -------------  ------------

 CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES                         $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

CAD PER COMMON SHARE                                                      $      0.52    $     0.49       $     1.02     $     0.96
                                                                          ============  ==============   =============  ============

CALCULATION OF CASH DISTRIBUTION:

CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                                      $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

ACTUAL AMOUNT PAID                                                        $    12,903    $   11,072       $   25,740     $   22,040
                                                                          ============  ==============   =============  ============

PAYOUT RATIO                                                                     85.3%         89.4%            87.3%          91.1%
                                                                          ============  ==============   =============  ============

COMMON SHARES OUTSTANDING                                                  28,832,443    25,308,022
                                                                          ============  ==============

CASH DISTRIBUTION PER COMMON SHARE                                        $    0.4475    $   0.4375       $   0.8925     $   0.8725
                                                                          ============  ==============   =============  ============


     The primary  differences  between Net Income as calculated  under generally
accepted  accounting  principles  ("GAAP") and Cash  Available For  Distribution
("CAD")  result from the timing of income and expense  recognition  and non-cash
events.  These differences  between CAD and GAAP income include the treatment of
loan  origination  fees, which for CAD purposes are recognized when received but
for  GAAP  purposes  are  amortized  over the life of the  associated  loan.  In
addition,  there are differences related to non-cash gains and losses associated
with bond  valuations  and  sales,  non-cash  gains and losses  associated  with
changes in market value of derivative  financial  instruments,  amortization  of
goodwill and intangibles and capitalization of mortgage servicing rights, net of
deferred taxes for GAAP purposes,  which are not included in the  calculation of
CAD.
     The common shares outstanding  reported for Cash Available for Distribution
are the actual  shares  outstanding  at the end of the  quarter.  For GAAP,  the
weighted average shares outstanding during the period are reported for the basic
net income per share  calculation.  The weighted average shares  outstanding for
diluted net income per share  include  the  potential  dilutive  effect from the
exercise of options,  vesting of restricted shares,  conversion of the preferred
shares and provision for shares to be awarded under the Midland acquisition earn
out provision.
</TABLE>
<PAGE>
VARIANCE ANALYSIS FOR CAD


2nd Quarter 2003 Compared to 2nd Quarter 2002:

Total income for the second quarter of 2003 increased $3.2 million over the same
period last year due  primarily to the  following  changes:  (1) an $8.2 million
increase in interest on bonds,  residual interests in bond  securitizations  and
loans due  primarily  to: (i) $10.8  million of deferred base interest and yield
maintenance  collected upon the sale of a property;  offset by (ii) $1.0 million
of interest that was reclassified to other income due to the Company holding the
property  prior to sale to a third party;  and (iii) a $1.6 million  decrease in
collections of interest on bonds, residual interests in bond securitizations and
loans;  (2) a $3.0 million increase in other income due primarily to: (i) a $1.0
million fee  collected  on a  conventional  equity  deal;  (ii) $1.0  million of
interest collected from a property that was held by the Company prior to sale to
a third  party;  (iii) $0.8  million  collected  as the  result of a  collateral
release  after the sale of a  property;  (iv) $0.8  million in  prepayment  fees
collected from the early payment of tax-exempt bond investments;  and (v) a $0.5
million  decrease  in  commission   income;  (3)  a  $1.5  million  increase  in
distributions  from equity  investments  in  partnerships  due  primarily  to an
increase in income from the CAPREIT investments;  (4) a $9.1 million decrease in
net  gain  (loss)  on  sales  due  primarily  to a  $10.8  million  loss  on the
termination  of  interest  rate  swaps  offset  in part by a $1.5  million  gain
recorded on the payoff of the  tax-exempt  bond and  taxable  loan on a property
that was sold during the quarter; and (5) a $0.6 million decrease in syndication
fees due to a decrease in the volume of syndications closed.

Total  expenses  for the second  quarter  increased  $0.4  million over the same
period last year due  primarily  to the  following  changes:  (1) a $2.7 million
increase in salaries and  benefits  resulting  from a $0.8  million  increase in
salaries and other  compensation  and a $2.0 million  increase in bonus expense;
(2) a $0.4 million increase in general and administrative expenses due primarily
to: (i) increases totaling $0.3 million due to telephone, bank fees, memberships
and dues and costs  related to the  integration  of HCI; and (ii) a $0.1 million
increase in travel and  entertainment;  (3) a $0.2 million  increase in interest
expense   associated   with  an  increase   in   financing   costs   related  to
on-balance-sheet  securitizations  and larger  average  notes  payable  balances
outstanding  during  the  quarter;  (4) a $1.9  million  decrease  in income tax
expense  primarily  as a result  of  taxable  losses  generated  by the  CAPREIT
investments;  and (5) a $1.1 million decrease in professional fees due primarily
to: (i) a $0.5 million decrease in commission  expense;  and (ii) a $0.4 million
decrease  in  legal  fees  due  to  information   systems  and  other  corporate
initiatives in the prior year.  Commission  expense is no longer incurred by the
Company  because  the  pass-through  of  commission  income and expense has been
transferred to the syndicated tax credit equity funds.


Year-to-Date 2003 Compared to Year-to-Date 2002:

Total income for the six months ended June 30, 2003  increased $7.8 million over
the same period last year due  primarily to the following  changes:  (1) a $10.1
million   increase   in   interest  on  bonds,   residual   interests   in  bond
securitizations  and loans due  primarily to: (i) $10.8 million of deferred base
interest and yield maintenance collected upon the sale of a property;  partially
offset by (ii) $1.0 million of interest  that was  reclassified  to other income
due to the Company  holding the property  prior to sale to a third party;  (2) a
$3.7  million  increase in other  income due  primarily  to: (i) $1.7 million in
prepayment fees collected from the early payment of tax-exempt bond investments;
(ii) $1.6 million in fees  collected on a conventional  equity deal;  (iii) $1.0
million of interest collected from a property that was held by the Company prior
to sale to a third  party;  (iv)  $0.8  million  collected  as the  result  of a
collateral release after the sale of a property;  (v) a $1.0 million decrease in
commission  income;  and (vi) a $0.3 million  decrease in the collection of loan
related fees such as  cancellation,  application  and extension fees; (3) a $3.3
million  increase in distributions  from equity  investments in partnerships due
primarily  to an increase in income  from the CAPREIT  investments;  (4) an $8.2
million  decrease  in net gain  (loss) on sales due  primarily  to:  (i) a $10.8
million loss on the termination of interest rate swaps; (ii) a $1.5 million gain
recorded on the payoff of the  tax-exempt  bond and  taxable  loan on a property
that was sold; and (iii) a $1.1 million  increase in gain on sales related to an
increase  in  premiums  on the  delivery  of  loans  to HUD and  gain on sale on
delivery  of loans to a new  conduit  lender;  (5) a $0.8  million  decrease  in
syndication fees due to a decrease in the volume of syndications closed combined
with taking $0.5  million in  organizational  and offering  cost  reimbursements
related to closed  syndicated  tax credit  equity  funds into income  during the
first quarter of 2002, whereas no such fees were recognized during 2003; and (6)
a $0.6 million  decrease in origination fees due primarily to an origination fee
recognized on the CAPREIT transaction in 2002.

Total  expenses  for the six months ended June 30, 2003  increased  $2.6 million
over the same period last year due  primarily to the  following  changes:  (1) a
$3.9 million  increase in salaries and  benefits  resulting  from a $1.0 million
increase in salaries and other compensation and a $2.9 million increase in bonus
expense;  (2) a $1.8 million  increase in interest  expense  associated  with an
increase in financing  costs  related to  on-balance-sheet  securitizations  and
larger average notes payable balances outstanding during the quarter; (3) a $0.5
million  increase in general and  administrative  expenses due primarily to: (i)
increases  totaling $0.4 million due to telephone,  bank fees,  letter of credit
fees, memberships and dues and costs related to the integration of HCI; and (ii)
a $0.1 million increase in investment  acquisition expenses;  (4) a $2.8 million
decrease in income tax expense  primarily as a result of tax losses generated by
the CAPREIT  investments;  and (5) a $0.7 million decrease in professional  fees
due primarily to: (i) a $1.0 million decrease in commission expense;  and (ii) a
$0.3 million increase in consulting fees due to an internal controls project and
the HCI acquisition.


<PAGE>
<TABLE>

                                                        MUNICIPAL MORTGAGE & EQUITY, LLC
                                                CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
                                                (In thousands, except share and per share data)
                                                                  (unaudited)

                                                                 Qtr Ended     Qtr Ended     Qtr Ended     Qtr Ended     Qtr Ended
                                                                  06/30/03      03/31/03      12/31/02      09/30/02      06/30/02
                                                               ------------- ------------- ------------- ------------- -------------
<S>                                                             <C>           <C>           <C>           <C>           <C>
SOURCES OF CASH:
Interest on bonds, residual interests in bond
     securitizations and loans                                  $    31,597   $    24,848   $    22,596   $    23,331   $    23,377
Interest on short-term investments                                      332           192           264           260           244
Syndication fees                                                      1,825         1,411         2,456           767         2,380
Origination fees                                                      2,711         1,160         3,007         2,206         3,005
Loan servicing fees                                                   1,835         1,909         1,711         1,544         1,660
Asset management and advisory fees                                    1,198         1,076         1,011           969         1,040
Distributions from equity investments in partnerships                 1,716         1,831         1,535         1,760           173
Other income                                                          4,221         2,091         1,609           878         1,238
Net gain (loss) on sales                                             (9,033)          951         1,637           207           102
                                                               ------------- ------------- ------------- ------------- -------------
     TOTAL SOURCES OF CASH                                           36,402        35,469        35,826        31,922        33,219
                                                               ------------- ------------- ------------- ------------- -------------
EXPENSES:
Interest expense                                                      8,102         9,839         9,899         8,134         7,900
Salaries and benefits                                                 8,671         5,966         6,475         5,446         5,930
Professional fees                                                       877           989         1,472           884         1,967
General and administrative                                            2,113         1,825         1,880         1,756         1,697
Loan loss expense                                                        47             -             -             -             -
Income tax expense (benefit)                                         (1,524)         (560)         (443)         (173)          345
                                                               ------------- ------------- ------------- ------------- -------------
     TOTAL EXPENSES                                                  18,286        18,059        19,283        16,047        17,839
                                                               ------------- ------------- ------------- ------------- -------------
CASH AVAILABLE FOR DISTRIBUTION                                      18,116        17,410        16,543        15,875        15,380
LESS:
     Cash allocable to preferred shareholders in a
        subsidiary company and term growth shares                     2,995         2,994         2,994         2,994         2,995
                                                               ------------- ------------- ------------- ------------- -------------

CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                            $    15,121   $    14,416   $    13,549   $    12,881   $    12,385
                                                               ============= ============= ============= ============= =============

CAD PER COMMON SHARE                                            $      0.52   $      0.50   $      0.53   $      0.51   $      0.49
                                                               ============= ============= ============= ============= =============

CALCULATION OF CASH DISTRIBUTION:
CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                            $    15,121   $    14,416   $    13,549   $    12,881   $    12,385
                                                               ============= ============= ============= ============= =============

ACTUAL AMOUNT PAID                                              $    12,903   $    12,837   $    11,304   $    11,154   $    11,072
                                                               ============= ============= ============= ============= =============

PAYOUT RATIO                                                          85.3%         89.0%         83.4%         86.6%         89.4%
                                                               ============= ============= ============= ============= =============

COMMON SHARES OUTSTANDING                                        28,832,443    28,846,327    25,546,010    25,349,585    25,308,022
                                                               ============= ============= ============= ============= =============

CASH DISTRIBUTION PER COMMON SHARE                              $    0.4475   $    0.4450   $    0.4425   $    0.4400   $    0.4375
                                                               ============= ============= ============= ============= =============

Note: Certain prior quarter amounts have been reclassified to conform to the 06/30/03 presentation.

     CAD differs from net income  because of variations  between GAAP income and
actual cash received.  There are three primary  differences between CAD and GAAP
income.  The first is the  treatment  of loan  origination  fees,  which for CAD
purposes  are  recognized  as income when  received  but for GAAP  purposes  are
amortized  into income over the life of the  associated  investment.  The second
difference is the non-cash gain and loss  recognized  for GAAP  associated  with
valuations,  sales of  investments  and  capitalization  of  mortgage  servicing
rights,  which are not included in the calculation of CAD. The third  difference
is the treatment of the Company's  investments  in  partnerships.  For GAAP, the
Company records its allocable share of the income (loss) from the partnership as
income,  while for CAD reporting,  the Company records the cash distributions it
receives from the partnership as income. For a reconciliation of GAAP net income
to CAD, see page 10.
     CAD  per  common  share  is  calculated  based  on  the  number  of  shares
outstanding  at the end of each quarter.  For GAAP,  basic earnings per share is
calculated based on the weighted average shares  outstanding  during the period.
The weighted  average shares  outstanding for diluted earnings per share include
the  potential  dilutive  effect  from  the  exercise  of  options,  vesting  of
restricted  shares,  and  provision  for shares to be awarded  under the Midland
acquisition earn out provision.

</TABLE>
<PAGE>
<TABLE>

                                                 MUNICIPAL MORTGAGE & EQUITY, LLC
                                              CONDENSED CONSOLIDATED BALANCE SHEETS
                                                         (In thousands)

                                                                                   (unaudited)
                                                                                     June 30,       December 31,
                                                                                      2003             2002
                                                                                ---------------- ---------------
<S>                                                                              <C>              <C>
ASSETS:
Investment in tax-exempt bonds and residual interests
    in bond securitizations                                                      $      788,892   $     781,384
Loans receivable, net                                                                   451,397         422,299
Loans receivable held for sale                                                           11,023          39,149
Investments in partnerships                                                              97,688          99,966
Investment in derivative financial instruments                                            3,170          18,762
Cash, cash equivalents and interest receivable                                           98,587          59,902
Other assets                                                                            115,798          97,919
Goodwill                                                                                 33,607          33,537
                                                                                ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                                ================ ===============
LIABILITIES AND EQUITY:
Notes payable                                                                    $      436,949   $     450,924
Short-term debt                                                                         211,670         219,945
Long-term debt                                                                          142,006         147,357
Residual interests in bond securitizations                                                1,343           1,447
Investment in derivative financial instruments                                           21,792          49,359
Other liabilities                                                                        48,150          36,370
Preferred shareholders' and minority interests' equity in subsidiary companies          160,142         160,452
Shareholders' equity                                                                    578,110         487,064
                                                                               ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                               ================ ===============

BOOK VALUE PER COMMON SHARE                                                      $        20.05   $       19.07
                                                                               ================ ===============

</TABLE>
<PAGE>
<TABLE>
                                                    MUNICIPAL MORTGAGE & EQUITY, LLC
                                                          2003 INVESTMENTS
                                                           SECOND QUARTER
                                                           (In thousands)


BOND PRODUCTION:                                                                      QUARTER                          YTD
                                                           PERMANENT                 BOND AMOUNT                    PRODUCTION
                                                           INTEREST        ------------------------------  -------------------------
           PROPERTY                CITY        STATE         RATE           CONSTRUCTION     PERMANENT     CONSTRUCTION   PERMANENT
------------------------------- ------------ ---------- ----------------   -------------- ---------------  ------------- -----------
<S>                               <C>           <C>         <C>             <C>             <C>            <C>           <C>
Eden Park of Ironwood (1)       Gainesville     FL          7.200%          $      4,250    $    4,250     $    4,250    $   17,625
Lake Pleasant Village (2)         Peoria        AZ          7.200%                 9,450         9,450         18,800        18,800
Stapleton                         Denver        CO          7.875%                11,000        11,000         11,000        11,000
Woodland Village (3)            Leavenworth     KS          6.950%                 8,160         8,160          8,160         8,160
                                                                           -------------- ---------------  ------------- -----------
TOTAL                                                                       $     32,860    $   32,860     $   42,210    $   55,585
                                                                           ============== ===============  ============= ===========

(1) The Company's initial investment was $0.2 million.  The Company earned a 1.25% origination fee on this deal.
(2) The Company's initial investment was $1.5 million.  The Company earned a 1.25% origination fee on this deal.
(3) The Company's initial investment was $2.8 million.  The Company earned a 1.25% origination fee on this deal.


CONSTRUCTION/PERMANENT LENDING, SYNDICATION AND OTHER PRODUCTION:
                                                                                            TOTAL FEES                   TOTAL FEES
                                                                                            RECOGNIZED                   RECOGNIZED
                                                                               QUARTER     THIS QUARTER       YTD            YTD
                                                                               VOLUME        FOR CAD         VOLUME        FOR CAD
                                                                           -------------- ---------------  -------------------------
Tax Credit Equity Syndications (Equity Raised)                              $     31,318    $    1,825     $   66,637    $    3,236

Tax Credit Lending Production                                               $     65,984    $        -     $   91,757    $        -

Conventional Equity Production                                              $     46,865    $    1,493     $   50,175    $    1,609

Taxable Construction Loan Production (generating a weighted average
  spread of 1.12%)                                                          $     93,986    $      262     $  132,578    $      669

Taxable Permanent Loan Production                                           $    118,379    $    1,751     $  155,572    $    2,314

Supplemental Loans                                                          $      7,660    $      125     $   24,478    $      353

OTHER INFORMATION:
Balance as of 6/30/03 of Midland Servicing Portfolio under Management       $  1,126,819    $    1,068

Balance as of 6/30/03 of Midland Equity Syndication Portfolio under
  Management                                                                $    917,138    $      854

</TABLE>
<PAGE>
<TABLE>

                                                    MUNICIPAL MORTGAGE & EQUITY, LLC
                                                     PARTICIPATING BOND PORTFOLIO
                                                     NET OPERATING INCOME - TREND
                                                         As of June 30, 2003




                                                     Q2 2002     Q1 2003    Q2 2003 (2)         Q2 '03/   Q2 '03/
Property                                              Actual      Actual       Actual            Q2 '02    Q1 '03
---------                                            ---------   --------   -----------         --------  --------
<S>                                                   <C>         <C>           <C>                <C>        <C>
Alban (4)                                             268,978     260,814       242,359           -9.9%      -7.1%
Arlington (1)                                               0     -39,943         3,078             N/A        N/A
Barkley Place                                         255,837     331,248       322,958           26.2%      -2.5%
Barrington at Beach Street (1)(3)                      41,853     201,476       275,036          557.1%      36.5%
Cobblestone                                           179,912     147,956       142,040          -21.1%      -4.0%
Cool Springs (1)                                      -54,690      -2,816        98,309             N/A        N/A
Creekside                                             271,875     291,969       281,675            3.6%      -3.5%
Crossings                                             179,332     182,192       164,531           -8.3%      -9.7%
Gilman Meadows                                        158,870     172,281       139,078          -12.5%     -19.3%
Hamilton Grove                                        212,804     173,874       201,481           -5.3%      15.9%
Jefferson Commons                                     513,627     400,144       401,808          -21.8%       0.4%
Lakeview                                              187,987     164,215       179,455           -4.5%       9.3%
Mallard I                                              25,891      38,539        23,398           -9.6%     -39.3%
Mallard II                                             95,771     102,270        96,956            1.2%      -5.2%
Montclair                                             288,782     344,427       379,300           31.3%      10.1%
Newport Village                                       242,984     193,723       215,054          -11.5%      11.0%
Nicollet Ridge                                        362,343     320,571       345,463           -4.7%       7.8%
Palisades Park                                        245,556     245,324       245,127           -0.2%      -0.1%
Riverset I                                            316,555     376,154       372,406           17.6%      -1.0%
Riverset II                                           139,242     162,217       146,790            5.4%      -9.5%
Steeplechase Falls                                    377,633     343,626       391,736            3.7%      14.0%
Meadows                                               129,467     120,149       146,680           13.3%      22.1%
Timber Ridge                                          137,432     129,561       137,329           -0.1%       6.0%
Villas at LaRiviera (3)                               193,778     226,573       223,566           15.4%      -1.3%
Whispering Lake                                       326,079     316,850       337,477            3.5%       6.5%
Winter Oaks                                           282,800     275,783       287,367            1.6%       4.2%
                                                  --------------------------------------     ----------------------
Total                                               5,380,697   5,479,179     5,800,457            7.8%       5.9%

Same Store Growth                                   5,393,534   5,320,462     5,424,035            0.6%       1.9%


(1) In  Lease-up.  Quarterly  totals  are  not  included  in Same  Store  Growth
    calculations.
(2) Q2 2003 uses April and May  actuals  plus the June budget  unless  otherwise
    noted.
(3) Q2 2003 - operating  budget is not  available,  total includes April actuals
    and two times May actual results.
(4) Q2 3003 - includes April actual results plus May and June budget.
</TABLE>
<PAGE>
<TABLE>


                                                                                         Occupancy
                                                                --------------------------------------------------------
                                                                 Month Ended   Month Ended   Month Ended   Month Ended
                                      Month/Year     Apartment     June 30,      March 31,      June 30,      June 30,
       Apartment Community            Acquired        Units         2003          2003           2002          2001
      ---------------------         -------------    ---------- --------------------------------------------------------
<S>                                            <C>         <C>          <C>           <C>            <C>          <C>
Alban Place                                Sep-86          194          96.0%         94.8%          94.8%        97.9%
Cobblestone                                Aug-99          184          95.7%         92.4%          95.1%        94.0%
Creekside Village                          Nov-87          296          98.3%         99.7%          99.3%        99.3%
Crossings                                  Jan-97          200          89.5%         89.0%          95.5%        98.5%
Jefferson Commons                          Dec-00          173          87.9%         87.9%          91.9%        94.8%
Lakeview                                   Sep-87          180          98.9%         96.1%          96.1%        98.9%
Timber Ridge                               Dec-00          168          94.0%         96.4%          97.6%        91.7%
Villas at LaRiviera                        Jun-99          199          80.5%         91.0%          81.5%        92.5%
                                                    -----------
    Subtotal Participating Mortgage Bonds                1,594
                                                    -----------

Mortgage Bonds
Applewood (a.k.a. Paola)                   Jul-99           48          95.8%         93.8%          91.7%        89.6%
Autumn Oaks/Crest at Thousand Oaks         Feb-03          410         100.0%         95.4%            N/A          N/A
Buchanan Bay                               Mar-01          228          86.4%         89.0%          82.0%        90.4%
Charter House (2)                          Dec-96            -            N/A           N/A            N/A          N/A
Cielo Vista                                Aug-99          378          96.3%         90.5%          95.0%        90.2%
Country Club                               Jul-99          101          84.2%         85.1%          90.1%        86.1%
Delta Village                              Jun-99           80          97.5%         95.0%         100.0%        96.3%
Elmbrooke                                  Aug-00           54         100.0%        100.0%         100.0%       100.0%
Florida A&M                                Feb-00           96          57.3%         86.5%          69.8%        91.1%
Gannon (Dade) (3)                          Feb-98          575          96.3%         96.7%          95.5%        95.9%
Gannon (St. Louis)                         Feb-98          336          93.5%         93.2%          92.9%        94.9%
Hidden Valley                              Dec-96           82          91.5%         93.9%          92.7%        93.9%
Honey Creek                                Mar-99          656          89.6%         97.7%          95.1%        97.0%
Hunter's Glen                              Mar-01          383          75.0%           N/A          86.7%        88.0%
Lake Piedmont                              Apr-98          648          92.1%         88.4%          95.2%        83.8%
Monroe (Oakmont, Towne Oak)                Dec-98          364          93.7%         97.5%          98.9%        98.6%
Mountain View (Willowgreen)                Nov-86          241          94.6%         91.3%          98.3%        94.6%
Northridge Park II                         Aug-87          128          99.2%         90.6%          96.9%        98.4%
Oakbrook                                   Dec-96          170          83.5%        100.0%          95.3%        98.2%
Oklahoma City (4)                          Aug-98          774          90.9%         95.3%          91.3%        89.9%
Orangevale                                 Apr-98           64         100.0%         98.4%          98.4%       100.0%
Parkwood                                   Jun-99          180          97.2%         99.4%          97.8%        97.2%
Riverset II (1)                            Jan-96            -            N/A           N/A            N/A          N/A
Riverview                                  Jun-00          228          96.1%         97.8%          50.4%          N/A
Sahuarita                                  Jun-99           52         100.0%         86.5%         100.0%        98.1%
Santa Fe Springs                           Jun-00          310          78.1%         77.1%          91.9%        90.6%
Shadowbrook                                Jun-99          193          95.3%         97.9%          97.4%        94.8%
Silver Springs                             Dec-99          250          92.4%         90.0%          70.0%        44.8%
Southwind                                  Aug-00           88         100.0%        100.0%         100.0%        80.7%
Torries Chase                              Dec-96           99          92.9%         89.9%          92.9%        94.9%
Village Apartments                         May-00          210          95.2%         96.7%          96.2%        81.9%
Village at Stone Mountain                  Oct-97          722          84.9%         88.9%          91.6%        92.7%
Village Green                              Feb-00          200          81.5%         87.0%          86.5%        91.5%
Weatherstone                               Sep-00          100          97.0%         90.0%          91.0%          N/A
Western Hills                              Dec-98           80          75.0%         77.5%          95.0%        97.5%
Willow Key                                 Mar-99          384          95.3%         95.8%          99.5%        99.5%
Woodglen                                   Dec-99          250          79.2%         82.4%          90.8%        85.6%
Woodmark                                   Jun-99          173          97.1%         97.7%          98.3%        97.7%
                                                    -----------
   Subtotal Mortgage Bonds                              9,335
                                                    -----------


Participating Subordinate Mortgage Bonds:
Barkley Place                              May-87          156          95.5%         98.7%          89.7%        92.9%
Gilman Meadows                             Mar-87          125          93.6%         91.2%          90.4%        90.4%
Hamilton Chase                             Feb-87          300          92.7%         91.7%          93.7%        96.0%
Mallard Cove I & II                        Feb-87          198          94.9%         94.4%          90.4%        97.5%
Meadows                                    Jan-88          200          93.0%         91.0%          94.0%        94.5%
Montclair                                  Oct-86          159          93.1%         92.5%          97.5%        97.5%
Newport Village                            Dec-86          220          84.1%         85.5%          94.1%        98.2%
Nicollet Ridge                             Dec-87          339          90.9%         90.6%          92.0%        98.2%
Riverset II                                Jan-96          148          89.0%         90.0%          86.8%        85.6%
Steeplechase                               Oct-88          450          95.1%         94.0%          92.9%        92.2%
Whispering Lake                            Oct-87          384          93.8%         90.4%          93.5%        90.4%
                                                    -----------
   Subtotal Participating Subordinate Mortgage Bonds     2,679
                                                    -----------
</TABLE>
<PAGE>
<TABLE>

                                                                                   Avg. Monthly Rent
                                                                                   Per Apartment Unit
                                                                  -----------------------------------------------------
                                                                       Month          Month        Month       Month
                                                                       Ended          Ended        Ended       Ended
                                      Month/Year     Apartment        May 31,       March 31,     June 30,    June 30,
       Apartment Community             Acquired        Units            2003          2003          2002        2001
      ---------------------           -----------    ----------   -----------------------------------------------------
<S>                                            <C>         <C>               <C>           <C>          <C>        <C>
Participating Mortgage Bonds:
Alban Place                                Sep-86          194               927           923          924        885
Cobblestone                                Aug-99          184               578           581          572        561
Creekside Village                          Nov-87          296               595           591          559        516
Crossings                                  Jan-97          200               754           754          749        730
Jefferson Commons                          Dec-00          173             1,230         1,230        1,361      1,255
Lakeview                                   Sep-87          180               716           715          695        662
Timber Ridge                               Dec-00          168               467           496          464        496
Villas at LaRiviera                        Jun-99          199               709           702          682        626
                                                    -----------
    Subtotal Participating Mortgage Bonds                1,594
                                                    -----------

Mortgage Bonds
Applewood (a.k.a. Paola)                   Jul-99           48               518           518          502        482
Autumn Oaks/Crest at Thousand Oaks         Feb-03          410               493           560          N/A        N/A
Buchanan Bay                               Mar-01          228               717           718          716        675
Charter House (2)                          Dec-96            -               N/A           N/A          N/A        N/A
Cielo Vista                                Aug-99          378               387           391          424        428
Country Club                               Jul-99          101               449           446          438        371
Delta Village                              Jun-99           80               584           587          578        565
Elmbrooke                                  Aug-00           54             1,063         1,062        1,021        716
Florida A&M                                Feb-00           96             1,440         1,374        1,385      1,352
Gannon (Dade) (3)                          Feb-98          575               794           788          748        717
Gannon (St. Louis)                         Feb-98          336               587           586          573        548
Hidden Valley                              Dec-96           82               576           567          552        538
Honey Creek                                Mar-99          656               538           536          560        543
Hunter's Glen                              Mar-01          383               582           583          584        560
Lake Piedmont                              Apr-98          648               494           488          476        460
Monroe (Oakmont, Towne Oak)                Dec-98          364               488           489          482        469
Mountain View (Willowgreen)                Nov-86          241               643           643          628        603
Northridge Park II                         Aug-87          128             1,015         1,007        1,053      1,010
Oakbrook                                   Dec-96          170               462           456          430        446
Oklahoma City (4)                          Aug-98          774               489           485          481        463
Orangevale                                 Apr-98           64               968           968          958        915
Parkwood                                   Jun-99          180               478           475          464        445
Riverset II (1)                            Jan-96            -               N/A           N/A          N/A        N/A
Riverview                                  Jun-00          228               655           657          658        N/A
Sahuarita                                  Jun-99           52               489           422          529        540
Santa Fe Springs                           Jun-00          310               594           587          592        589
Shadowbrook                                Jun-99          193               493           484          484        474
Silver Springs                             Dec-99          250               774           774          809        789
Southwind                                  Aug-00           88               756           727          711        637
Torries Chase                              Dec-96           99               517           515          498        488
Village Apartments                         May-00          210               568           568          568        491
Village at Stone Mountain                  Oct-97          722               761           761          733        710
Village Green                              Feb-00          200               635           643          638        631
Weatherstone                               Sep-00          100               813           800          812        N/A
Western Hills                              Dec-98           80               519           515          502        497
Willow Key                                 Mar-99          384               706           705          655        627
Woodglen                                   Dec-99          250               672           669          641        682
Woodmark                                   Jun-99          173               680           680          680        676
                                                  -------------
    Subtotal Mortgage Bonds                              9,335
                                                  -------------

Participating Subordinate Mortgage Bonds:
Barkley Place                              May-87          156             2,085         2,074        2,068      2,088
Gilman Meadows                             Mar-87          125               998         1,010        1,020      1,017
Hamilton Chase                             Feb-87          300               626           623          613        601
Mallard Cove I & II                        Feb-87          198               714           714          748        728
Meadows                                    Jan-88          200               609           605          611        599
Montclair                                  Oct-86          159             1,830         1,844        1,820      1,834
Newport Village                            Dec-86          220               850           846          839        804
Nicollet Ridge                             Dec-87          339               949           913          942        914
Riverset II                                Jan-96          148               722           711          706        702
Steeplechase                               Oct-88          450               611           609          590        586
Whispering Lake                            Oct-87          384               656           652          639        649
                                                    -----------
   Subtotal Participating Subordinate Mortgage Bonds     2,679
                                                    -----------
</TABLE>
<PAGE>
<TABLE>
                                                                                         Occupancy
                                                                --------------------------------------------------------
                                                                 Month Ended   Month Ended   Month Ended   Month Ended
                                      Month/Year     Apartment     June 30,      March 31,      June 30,      June 30,
       Apartment Community             Acquired        Units         2003          2003           2002          2001
      --------------------            ----------    ----------  --------------------------------------------------------
<S>                                            <C>          <C>           <C>           <C>            <C>          <C>
Subordinate Mortgage Bonds:
CAPREIT                                    Sep-99            -            N/A           N/A            N/A          N/A
Cinnamon Ridge                             Jan-99            -            N/A           N/A            N/A          N/A
Farmington Meadows                         Aug-99           69         100.0%        100.0%         100.0%       100.0%
Independence Ridge                         Aug-96          336          75.0%         69.9%            N/A        80.1%
Locarno                                    Aug-96          110          90.9%         90.9%            N/A        98.2%
Olde English Manor                         Nov-99            -            N/A           N/A            N/A          N/A
Peaks of Conyer                            Sep-01          260          81.2%         85.0%          87.3%          N/A
Rillito Village                            Jul-00            -            N/A           N/A            N/A          N/A
Winter Oaks                                Nov-99          460          92.2%         95.4%          92.0%        91.5%
                                                  -------------
   Subtotal Subordinate Mortgage Bonds                   1,235
                                                  -------------

Other Bond Related Investments:
Briarwood                                  Dec-98          600          98.3%         94.8%          97.5%        97.8%
Cinnamon Ridge                             Dec-97          264          97.3%         92.8%          98.1%        92.4%
Golfside Villas (f.k.a. Club West)         Mar-99          194          99.5%         99.0%          99.5%        99.0%
Park at Landmark                           Sep-00          396          95.7%         94.2%          94.9%       100.0%
Poplar Glen                                Jun-97          191          93.2%         93.7%          95.8%        97.9%
RITES - Charter House                      Dec-96          280          91.4%         89.6%          98.2%        96.4%
RITES - Indian Lakes                       Jul-97          296          84.8%         75.0%          88.5%        93.6%
RITES - LaPaloma                           Apr-99          120          98.3%        100.0%          99.2%        91.7%
RITES - LeMirador (Coleman Senior)         Apr-98          141          83.7%         87.2%          92.9%        97.9%
RITES - Museum Towers                      Apr-01          286          96.2%         93.0%          87.4%        98.3%
RITES - Olde English Manor                 Jun-98          264          79.5%         82.2%          90.5%        95.1%
RITES - Palisades Park                     Feb-98          304          93.8%         96.4%          97.4%        98.4%
RITES - Pavillion                          Apr-99          132         100.0%         99.2%         100.0%       100.0%
RITES - Queen Anne IV                      Jul-98          110          91.8%         82.7%          96.4%       100.0%
RITES - Rancho/Villas                      May-00          417          88.6%         86.6%          92.1%        90.6%
RITES - Rillito Village                    Aug-98          272          91.5%         91.2%          91.2%        88.2%
RITES - Riverset (1)                       Aug-88          352          89.0%         90.0%          86.8%        85.6%
RITES - Riverset II (1)                    Jan-96            -            N/A           N/A            N/A          N/A
RITES - Sienna (a.k.a. Italian Gardens)    Apr-98          140          90.0%         91.4%          83.6%        97.9%
RITES - Sonterra                           May-98          156          87.8%         90.4%          94.2%        90.4%
RITES - Southgate Crossings                Jun-97          215          98.1%         94.0%          97.2%        98.6%
RITES - Southwood                          Nov-97        1,286          72.0%         74.2%          85.6%        85.1%
                                                    -----------
   Subtotal Other Bond Related Investments               6,416
                                                    -----------

    Total Units/Weighted Average Investments            21,259          90.1%         90.7%          92.2%        92.5%
                                                    ===========

Total/Same Stores (5) 2001                              20,261          89.9%         88.9%          90.7%        92.5%
Total/Same Stores (5) 2002                              20,403          90.1%         89.2%          92.2%

Construction/Substantial Rehab Properties and Other Investments
Arlington                                  Dec-00          176          34.1%         31.8%            N/A          N/A
Barrington at Beach Street                 Oct-00          398          65.1%         59.5%          39.2%          N/A
Bedford Park                               Oct-00          312          69.6%         64.1%          75.6%        36.9%
CAPREIT Joint Venture (6)                  Jun-02        6,279          95.6%         94.1%          96.0%          N/A
CAPREIT TERA (7)                           Mar-01        2,942          94.1%         94.1%          93.2%          N/A
Chancellor                                 Nov-01          101            N/A           N/A            N/A          N/A
Chancellor II                              Mar-02           46            N/A           N/A            N/A          N/A
City Views at Rosa Burney Park             Dec-02          180          80.6%           N/A            N/A          N/A
Cliffs at Grove Barton                     Apr-03          132            N/A           N/A            N/A          N/A
Cool Springs                               Aug-00          124          54.8%         53.2%          28.2%          N/A
Coronel Village                            Apr-02           48            N/A           N/A            N/A          N/A
Eden Park                                  May-03          104            N/A           N/A            N/A          N/A
Fort Branch                                Dec-00          250          88.0%         69.2%          19.6%          N/A
Hidden Brooks                              Sep-01          201          76.6%         84.6%          80.6%          N/A
Jefferson at Town Lake                     Dec-02          216            N/A           N/A            N/A          N/A
Lake Pleasant Village                      May-03          152            N/A           N/A            N/A          N/A
Las Trojas                                 Mar-02           49            N/A           N/A            N/A          N/A
Liberty Park Townhomes                     Feb-03          184          64.7%         72.3%            N/A          N/A
Lincoln Corner                             Dec-01          134            N/A           N/A            N/A          N/A
Meridian at Bridgewater                    Nov-99           90          82.2%         81.1%          71.1%        21.1%
Mountain View Village                      Jun-02          220            N/A           N/A            N/A          N/A
North White Road                           Nov-01          157            N/A           N/A            N/A          N/A
Oak Grove Commons                          Dec-01          168          23.8%           N/A            N/A          N/A
Olathe Senior Residences                   Dec-02          144            N/A           N/A            N/A          N/A
Osborne Place Manor                        Dec-02           50            N/A           N/A            N/A          N/A
Penn Valley                                Dec-01           42            N/A           N/A            N/A          N/A
Sanger Trails                              Dec-02          208            N/A           N/A            N/A          N/A
Sycamore Senior Village                    Jun-02          300            N/A           N/A            N/A          N/A
Village at Sun Valley                      May-00          276          85.9%         89.1%          60.1%          N/A
Walnut Tree                                Mar-02           64            N/A           N/A            N/A          N/A
Woodland Village                           May-03          198            N/A           N/A            N/A          N/A
                                                    -----------
  Subtotal Construction/Rehab Properties                13,945
                                                    -----------

       Total Units                                      35,204
                                                    ===========
</TABLE>
<PAGE>
<TABLE>
                                                                                   Avg. Monthly Rent
                                                                                   Per Apartment Unit
                                                                  -----------------------------------------------------
                                                                       Month          Month        Month       Month
                                                                       Ended          Ended        Ended       Ended
                                      Month/Year     Apartment         May 31,       March 31,     June 30,    June 30,
       Apartment Community             Acquired        Units            2003          2003          2002        2001
      --------------------            -----------    ----------   -----------------------------------------------------
<S>                                            <C>          <C>              <C>           <C>          <C>        <C>
Subordinate Mortgage Bonds:
CAPREIT                                    Sep-99            -               N/A           N/A          N/A        N/A
Cinnamon Ridge                             Jan-99            -               N/A           N/A          N/A        N/A
Farmington Meadows                         Aug-99           69               814           814          814        814
Independence Ridge                         Aug-96          336               555           554          551        541
Locarno                                    Aug-96          110               898           891          877        851
Olde English Manor                         Nov-99            -               N/A           N/A          N/A        N/A
Peaks of Conyer                            Sep-01          260               737           737          738        N/A
Rillito Village                            Jul-00            -               N/A           N/A          N/A        N/A
Winter Oaks                                Nov-99          460               558           557          554        541
                                                  -------------
   Subtotal Subordinate Mortgage Bonds                   1,235
                                                  -------------

Other Bond Related Investments:
Briarwood                                  Dec-98          600               639           633          603        584
Cinnamon Ridge                             Dec-97          264               952           938          917        905
Golfside Villas (f.k.a. Club West)         Mar-99          194               618           617          618        571
Park at Landmark                           Sep-00          396             1,075         1,081        1,066        992
Poplar Glen                                Jun-97          191               988           974          938        901
RITES - Charter House                      Dec-96          280               625           625          619        607
RITES - Indian Lakes                       Jul-97          296               781           790          785        755
RITES - LaPaloma                           Apr-99          120               652           654          619        609
RITES - LeMirador (Coleman Senior)         Apr-98          141               855           835          871        772
RITES - Museum Towers                      Apr-01          286             1,355         1,342        1,367      1,327
RITES - Olde English Manor                 Jun-98          264               496           494          479        469
RITES - Palisades Park                     Feb-98          304               560           555          545        515
RITES - Pavillion                          Apr-99          132               673           667          675        653
RITES - Queen Anne IV                      Jul-98          110             1,102         1,108        1,094      1,039
RITES - Rancho/Villas                      May-00          417               498           476          487        483
RITES - Rillito Village                    Aug-98          272               469           463          440        453
RITES - Riverset (1)                       Aug-88          352               710           705          693        695
RITES - Riverset II (1)                    Jan-96         ----               N/A           N/A          N/A        N/A
RITES - Sienna (a.k.a. Italian Gardens)    Apr-98          140               813           811          857        743
RITES - Sonterra                           May-98          156               869           863          847        864
RITES - Southgate Crossings                Jun-97          215             1,005           992          981        912
RITES - Southwood                          Nov-97        1,286               498           496          492        484
                                                  -------------
   Subtotal Other Bond Related Investments               6,416
                                                  -------------

    Total Units/Weighted Average Investments            21,259               686           696          696        659
                                                  =============

Total/Same Stores (5) 2001                              20,261               689           686          680        659
Total/Same Stores (5) 2002                              20,403               705           701          696

Construction/Substantial Rehab Properties and Other Investments
Arlington                                  Dec-00          176             1,389         1,388          N/A        N/A
Barrington at Beach Street                 Oct-00          398               778           803          847        N/A
Bedford Park                               Oct-00          312               532           530          547        489
CAPREIT Joint Venture (6)                  Jun-02        6,279               748           751          739        N/A
CAPREIT TERA (7)                           Mar-01        2,942               606           608          630        N/A
Chancellor                                 Nov-01          101               N/A           N/A          N/A        N/A
Chancellor II                              Mar-02           46               N/A           N/A          N/A        N/A
City Views at Rosa Burney Park             Dec-02          180               560           N/A          N/A        N/A
Cliffs at Grove Barton                     Apr-03          132               N/A           N/A          N/A        N/A
Cool Springs                               Aug-00          124             1,938         1,919        1,947        N/A
Coronel Village                            Apr-02           48               N/A           N/A          N/A        N/A
Eden Park                                  May-03          104               N/A           N/A          N/A        N/A
Fort Branch                                Dec-00          250               735           738          830        N/A
Hidden Brooks                              Sep-01          201             1,050         1,026        1,057        N/A
Jefferson at Town Lake                     Dec-02          216               N/A           N/A          N/A        N/A
Lake Pleasant Village                      May-03          152               N/A           N/A          N/A        N/A
Las Trojas                                 Mar-02           49               N/A           N/A          N/A        N/A
Liberty Park Townhomes                     Feb-03          184               492           490          N/A        N/A
Lincoln Corner                             Dec-01          134               N/A           N/A          N/A        N/A
Meridian at Bridgewater                    Nov-99           90               N/A           N/A        3,496      3,465
Mountain View Village                      Jun-02          220               N/A           N/A          N/A        N/A
North White Road                           Nov-01          157               N/A           N/A          N/A        N/A
Oak Grove Commons                          Dec-01          168               N/A           N/A          N/A        N/A
Olathe Senior Residences                   Dec-02          144               N/A           N/A          N/A        N/A
Osborne Place Manor                        Dec-02           50               N/A           N/A          N/A        N/A
Penn Valley                                Dec-01           42               N/A           N/A          N/A        N/A
Sanger Trails                              Dec-02          208               N/A           N/A          N/A        N/A
Sycamore Senior Village                    Jun-02          300               N/A           N/A          N/A        N/A
Village at Sun Valley                      May-00          276               684           684          681        N/A
Walnut Tree                                Mar-02           64               N/A           N/A          N/A        N/A
Woodland Village                           May-03          198               N/A           N/A          N/A        N/A
                                                  -------------
  Subtotal Construction/Rehab Properties                13,945
                                                  -------------

       Total Units                                      35,204
                                                  =============


(1) The Company owns a participating bond, a participating  subordinate bond and
    a RITES interest collateralized by the Riverset property.
(2) The  Company   owns  a   non-participating   bond  and  a  RITES   interest
    collateralized by the Charter House property.
(3) The Dade Gannon Portfolio represents three properties.
(4) The Oklahoma City Portfolio represents three properties.
(5) Same Store includes only properties reporting for all three quarters.
(6) CAPREIT Joint Venture represents twenty properties (not included  previously
    in CAPREIT Portfolio).
(7) The CAPREIT TERA Portfolio represents eleven properties.

</TABLE>
<PAGE>
                      MUNICIPAL MORTGAGE & EQUITY, LLC
        CONFERENCE CALL SCRIPT - COMBINED TAX CREDIT EQUITY BUSINESS
                    FOR THE YEAR ENDED DECEMBER 31, 2003

* OVERALL ACCRETION/DILUTION FOR 2003:

          * For CAD purposes, the acquisition of the HCI business is expected to
          generate an  additional  three to five (5) cents per common  share for
          the  remainder  of 2003.  For  2004,  we think  the  acquisition  will
          generate  twice as much  accretion  as the high end of the  range  for
          second half of 2003.

          * In the past we have not provided  any  guidance  for GAAP  earnings.
          However,  under  the new  rules  effective  the end of Q1,  we are now
          required to reconcile any non-GAAP measurements to GAAP. At this time,
          we anticipate  that the  acquisition  will be 15 to 20 cents per share
          dilutive  to  basic  earnings  per  share.  After  reviewing  the main
          business components of the acquisition,  we will review in more detail
          the differences between CAD and GAAP.

          * Lumpiness - with the addition of the fee generating business,  we're
          confident  that the earnings are  available  to us.  However,  we will
          probably   see  more   variability   in  quarterly   earnings.   We're
          anticipating  stronger second and fourth quarters and weaker first and
          third quarters on a relative basis.

          * Continue to believe  the  tax-exempt  percentage  will be in the mid
          80's  but is  still  subject  to  further  review  and  refinement  of
          financing options.

*  REVENUES:  We now will walk  through how we  primarily  earn money in the tax
credit equity business. There are two main parts:

          * Syndication Fees; in addition some portion of this business is based
          on a  guarantee  format,  therefore,  guarantee  fee  revenue
          * Asset Management Fees, which are like servicing fees

      Production:
          *  Combined   syndication   equity  raise  for  fiscal  year  2003  is
          anticipated to be $425M to $450M
          * Our previous  estimates for MEC total  syndication  equity raise was
          $200M to $250M
          * Increase in production almost doubles previous outlook
          * Reflecting the integration of our equity  syndication  business,  we
          will no  longer  distinguish  between  MEC  and  HCI;  all  forecasted
          production reflects integrated business.
          *  Overall  production  goal:  HCI  production  goals  are  considered
          additive to legacy MEC production  goals because of minimal overlap in
          developer clients and minimal overlap in investors.
          * Overall fund syndication fees percentage expected to be about 4%, up
          slightly from legacy MEC.

      Other Revenues:
          * As a result of  combined  business,  total tax  credit  equity  fund
          assets are  expected  to grow to  approximately  $4 billion  from $685
          million by  year-end  2003,  earning 30 to 35 bps in asset  management
          fees.
          * Other  miscellaneous  revenues  associated  with  the  new  combined
          business include guarantee fee premiums  (approximately $1M for second
          half of 2003),  revenues associated with investment valuation services
          performed  by  HCI  personnel,   and  other   miscellaneous   revenues
          approximating $3.6M for the second half of 2003.

* EXPENSES:

          * Operating  expenses - total operating  expenses  associated with the
          addition of the HCI  business  are  expected to run about $14M for the
          second  half  of  2003.  [This  includes  incentive  bonuses  for  all
          production personnel and staff of approximately $3.5M.]
          * Interest  expense  associated  with  warehousing  and  bridging  not
          absorbed  by the  funds is  expected  to go up due to an  increase  in
          property acquisition production and timing of placement activity.

* FINANCING  ASSUMPTIONS  (subject to further  review and  refinement and future
market conditions) associated with financing the acquisition are as follows:

          * RBC  Line of  Credit  for  $120M  to  cover  purchase  price,  costs
          associated with the acquisition and initial working capital needs
          * $120M at Libor plus 290 bps beginning 7/1/03
          * $75M of Line is taken out with  taxable  trust  preferred  equity at
          8.75% for total raise of $77.4M in fourth quarter
          * Remaining $45M taken out in early 2004 with common equity

* PRIMARY CAD TO GAAP DIFFERENCES:

          * For GAAP purposes,  the net assets of all  guaranteed  funds will be
          consolidated into the balance sheet of MMA. As a result, all guarantee
          fee premiums  associated with these funds will not be reflected in the
          net income of MMA. These premiums will be booked for CAD.
          * Asset  management  fees  receivable  associated with the acquisition
          will not be reflected in the GAAP net income of MMA. In addition,  any
          asset  management  fees  collected  on  guaranteed  funds  will not be
          recognized for GAAP purposes due to the  consolidation  of these funds
          discussed  above.  For CAD  purposes,  asset  management  fees will be
          recognized to the extent of cash received. For 2003, approximately 1/2
          of  the  total  fees   collected  for  CAD  relate  to  the  purchased
          receivable.
          * The  amortization of the  capitalized  portion of the acquired asset
          management contracts will be reflected in GAAP net income of MMA. This
          non-cash  charge does not affect CAD or the cash flow  generated  from
          the operations of the business.
          * NOTE:  There are several other identified  differences  between GAAP
          and CAD.  However,  at this time, these differences are expected to be
          immaterial.  As a result,  the impacts of these  differences  have not
          been reflected in the forecasted numbers discussed above. Further note
          is that the audits of the HCI unit in accordance with US GAAP have not
          been  completed  as of  today.  They  will be  completed  and filed in
          September 2003 along with the Form 8K. As a result, there may be other
          CAD and GAAP adjustments in addition to the ones previously discussed.



<PAGE>


                                    SIGNATURES







     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.





                                     MUNICIPAL MORTGAGE & EQUITY, LLC

Date:  July 17, 2003               By:    /s/ William S. Harrison
                                       -------------------------------------
                                       Name:    William S. Harrison
                                       Title:   SVP and Chief Financial Officer



<PAGE>
Exhibit 99.2
------------

INFORMATION FOR RELEASE

                 MuniMae Reports 2003 Second Quarter Results
            26th Consecutive Increase in Distribution to Common Shares

BALTIMORE (July 17, 2003) - Municipal  Mortgage & Equity, LLC (NYSE: MMA), known
as MuniMae,  reported net income allocated to common shares of $30.6 million for
the quarter ended June 30, 2003, compared to $2.9 million for the same period in
2002.  Diluted earnings per share were $1.05 for the quarter,  compared to $0.11
for the same period in 2002.

Cash Available for  Distribution  ("CAD"),  the primary measure of the Company's
distribution  paying ability,  increased 18% for the quarter ended June 30, 2003
compared to the same period in 2002. CAD per common share  increased 6% compared
to the same  period  in  2002.  The  Board of  Directors  raised  the  quarterly
distribution to common shares to $0.4475, an increase of 2% over the same period
in 2002.

Mark K.  Joseph,  Chairman of the Board and CEO of MuniMae,  commented,  "We are
pleased to  announce  the 26th  consecutive  increase  to our  dividend.  We are
pleased  with our second  quarter  performance  as well.  MuniMae  continues  to
diversify  its product  base,  and as announced  previously,  has  purchased the
Housing  and  Community   Investing   (HCI)  unit  of  Lend  Lease  Real  Estate
Investments, formerly known as Boston Financial Group. HCI is a market leader in
the  syndication  of  low-income  housing tax credits and we expect their strong
franchise to contribute  meaningfully to our continuing  efforts to increase our
cash available for distribution, or CAD, and shareholder value."

Mr. Joseph added,  "During the second  quarter,  the Company also  experienced a
significant  increase  in GAAP  earnings  due to the sale of a bond.  For CAD, a
large portion of the income  generated by the sale of the bond was offset by the
Company's sale of certain  interest rate swaps.  However,  because of a previous
GAAP  write-off of a portion of this bond,  the GAAP net income  resulting  from
these two transactions was significantly greater than the CAD net income."

Summary Results - GAAP
----------------------
The table below summarizes the Company's  results for the second quarter of 2003
and the prior-year period:

<TABLE>
                                                                                     Second Quarter
                                                                          -------------------------------------
                                                                          2003           2002           Change
<S>                                                                       <C>            <C>            <C>
Net Income to Common Shares from Continuing
 Operations ($ millions)                                                  $4.8           $2.9           66%
Per Share Results from Continuing Operations
   Basic ($)                                                              $0.17          $0.12          42%
   Diluted ($)                                                            $0.16          $0.11          45%
Net Income to Common Shares  ($ millions)                                 $30.6          $2.9           NM
Per Share Results
   Basic ($)                                                              $1.06          $0.12          NM
   Diluted ($)                                                            $1.05          $0.11          NM
</TABLE>

The attached  condensed  consolidated  statements  of income  represent the GAAP
results of operations of the Company for the three- and six-month  periods ended
June 30, 2003 and 2002.

Summary Results - CAD
---------------------
For the second  quarter of 2003,  CAD was $18.1 million and CAD to common shares
was $15.1  million.  The 2003 second  quarter per share  distribution  to common
shareholders of $0.4475  represents a payout ratio of 85%. (The Company uses CAD
as the primary  performance  measure and believes it to be illustrative  for its
distribution-paying  ability.  CAD differs from net income because of variations
between GAAP income and actual cash received.  These variations are described in
the note to the attached calculation of CAD statement.)

<TABLE>

                                                                         Second Quarter
                                                       ------------------------------------------------
                                                         2003              2002               Change
<S>                                                     <C>               <C>                 <C>
Total CAD ($ millions)                                  $18.1             $15.4               18%
CAD to Common ($ millions)                              $15.1             $12.4               22%
CAD per Common Share ($)                                $0.52             $0.49                6%
</TABLE>

A reconciliation of GAAP net income to CAD to common shares is attached.

Second Quarter Distribution
---------------------------
MuniMae's  second  quarter   distribution  to  common  shareholders  of  $0.4475
annualizes  to $1.79 per share.  Based on  yesterday's  closing  share  price of
$25.63,  MuniMae common shares have an annualized  yield to  shareholders of 7%.
Based on the  assumption  that the  Company's  income is 85% exempt from Federal
income tax,  absent the impact of capital  gains and assuming a 35% tax bracket,
the taxable  equivalent  yield would be 10.2%. The record date for the quarterly
distribution is July 28, and the payment date is August 8.

About Municipal Mortgage & Equity
---------------------------------
MuniMae and its subsidiaries originate,  service and asset manage investments in
multifamily  debt and equity for its own account and on behalf of others.  As of
June 30, 2003,  assets  under  management  totaled  $3.7 billion  secured by 933
properties  containing 96,168 units in 48 states and the U.S. Virgin Islands. As
of  July  1,  2003,  at the  completion  of the HCI  acquisition,  assets  under
management  totaled $7.5 billion  representing  approximately  2,044  properties
containing 218,144 units. For its proprietary accounts,  MuniMae primarily holds
tax-exempt  multifamily  housing  bonds.  This  on-balance  sheet  portfolio  of
tax-exempt  bonds is secured by 148  properties  containing  35,204  units in 28
states. For a portion of these bonds, MuniMae participates in the performance of
the underlying properties.

MuniMae is organized  as a limited  liability  company.  This  structure  allows
MuniMae  to  combine   the  limited   liability,   governance   and   management
characteristics  of a corporation  with the  pass-through  income  features of a
partnership. As a result, the tax-exempt income derived from certain investments
remains  tax-exempt  when  passed  through  to  shareholders.  Distributions  to
shareholders  are  declared  quarterly  and paid in  February,  May,  August and
November.

The  calculation  of  Cash  Available  for  Distribution  is the  basis  for the
determination of the Company's quarterly distributions to common shares, is used
by  securities  analysts,  and is  presented  as a  supplemental  measure of the
Company's  performance.  The  calculation  is not approved by the Securities and
Exchange  Commission  nor is it required by GAAP and should not be considered as
an  alternative  to  net  income  as an  indicator  of the  Company's  operating
performance or as an  alternative  to cash flows as a measure of liquidity.  The
Company  believes  that  Cash  Available  for  Distribution   provides  relevant
information  about its operations and is necessary,  along with net income,  for
understanding its operating results.

This press release  contains  statements which are forward looking in nature and
reflect  management's  current views with respect to future events and financial
performance.  These statements are subject to many  uncertainties  and risks and
should not be considered  guarantees of future  performance.  This press release
does not  constitute  an offer to sell any  securities  of Municipal  Mortgage &
Equity, LLC.


Actual results may vary materially  from projected  results based on a number of
factors,   including  the  actual  performance  of  the  properties  pledged  as
collateral  for the  portfolio,  general  conditions  in the local  real  estate
markets in which the properties are located and prevailing interest rates.


      MUNIMAE: TAX-EXEMPT DISTRIBUTIONS AND GROWTH THROUGH REAL ESTATE
                   www.munimaemidland.com / www.mmafin.com

Contacts

Investor Relations:
    Angela Richardson, 888/788-3863

<PAGE>
<TABLE>

                                               MUNICIPAL MORTGAGE & EQUITY, LLC
                                          CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (In thousands, except share and per share data)
                                                         (unaudited)

                                                                         For the three months ended     For the six months ended
                                                                                 June 30,                        June 30,
                                                                       -----------------------------   -----------------------------
                                                                          2003            2002            2003            2002
                                                                       -------------  --------------   -------------  --------------
<S>                                                                    <C>             <C>              <C>            <C>
INCOME:
Interest income
     Interest on bonds and residual interests in bond securitizations  $     13,929    $     15,399     $    29,914    $     30,561
     Interest on loans                                                        7,563           8,594          17,066          17,024
     Interest on short-term investments                                         332             244             524             731
                                                                       -------------  --------------   -------------  --------------
        Total interest income                                                21,824          24,237          47,504          48,316
                                                                       -------------  --------------   -------------  --------------
Fee income
     Syndication fees                                                         1,825           2,380           3,236           3,998
     Origination fees                                                         2,219           1,505           2,917           2,594
     Loan servicing fees                                                      1,838           1,660           3,747           3,568
     Asset management and advisory fees                                       1,198           1,040           2,274           1,907
     Other income                                                             3,309           1,259           5,506           2,404
                                                                       -------------  --------------   -------------  --------------
        Total fee income                                                     10,389           7,844          17,680          14,471
                                                                       -------------  --------------   -------------  --------------
Net gain on sales                                                             1,453             703           2,731           2,869
                                                                       -------------  --------------   -------------  --------------
Total income                                                                 33,666          32,784          67,915          65,656
                                                                       -------------  --------------   -------------  --------------
EXPENSES:
Interest expense                                                              8,724           8,487          19,092          17,459
Salaries and benefits                                                         8,671           5,930          14,637          10,757
General and administrative                                                    2,113           1,697           3,938           3,423
Professional fees                                                               877           1,967           1,866           2,604
Amortization of mortgage servicing rights and other intangibles                 414             333             803             651
                                                                       -------------  --------------   -------------  --------------
Total expenses                                                               20,799          18,414          40,336          34,894
                                                                       -------------  --------------   -------------  --------------
Net holding gains (losses) on derivatives                                    (2,449)         (7,721)            424          (4,609)
Impairments and valuation allowances related to investments                  (1,144)              -          (1,144)           (110)
Net gains (losses) from equity investments in partnerships                   (2,157)             94          (2,904)           (229)
Income tax benefit (expense)                                                    540            (828)            472          (1,859)
Income allocable to preferred shareholders and minority interests in
     subsidiary companies                                                    (2,854)         (2,995)         (5,679)         (5,989)
                                                                       -------------  --------------   -------------  --------------
Net income from continuing operations                                         4,803           2,920          18,748          17,966
Discontinued operations                                                      25,748               -          25,748               -
                                                                       -------------  --------------   -------------  --------------
Net Income                                                             $     30,551    $      2,920     $    44,496    $     17,966
                                                                       =============  ==============   =============  ==============
LESS:
     Net income allocable to term growth shares                                   -               -               -             153
                                                                       -------------  --------------   -------------  --------------
Net income allocated to common shares                                  $     30,551    $      2,920     $    44,496    $     17,813
                                                                       =============  ==============   =============  ==============

EARNINGS PER COMMON SHARE:
Basic earnings per common share:
     Net income from continuing operations                             $       0.17    $       0.12     $      0.67    $       0.73
     Discontinued operations                                                   0.89               -            0.91               -
                                                                       -------------  --------------   -------------  --------------
     Basic earnings per common share                                   $       1.06    $       0.12     $      1.58    $       0.73
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          28,857,305      25,252,124      28,104,281      24,423,091
Diluted earnings per common share:
     Net income from continuing operations                             $       0.16    $       0.11     $      0.66    $       0.71
     Discontinued operations                                                   0.89               -            0.90               -
                                                                       -------------  --------------   -------------  --------------
     Diluted earnings per common share                                 $       1.05    $       0.11     $      1.56    $       0.71
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          29,213,062      25,835,808      28,451,480      25,022,631

</TABLE>
<PAGE>
<TABLE>


                                                    MUNICIPAL MORTGAGE & EQUITY, LLC
                                     RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
                                                             (In thousands)
                                                              (unaudited)

                                                                 For the three months ended     For the six months ended
                                                                           June 30,                      June 30,
                                                                 ----------------------------  ----------------------------
                                                                     2003           2002           2003           2002
                                                                 -------------  -------------  -------------  -------------
<S>                                                               <C>            <C>            <C>            <C>
INCOME:
Interest income
   Interest on bonds and residual interests in bond
     securitizations                                              $    13,929    $    15,399    $    29,914    $    30,561
   Interest on loans                                                    7,563          8,594         17,066         17,024
   Interest on short-term investments                                     332            244            524            731
                                                                 -------------  -------------  -------------  -------------
      Total interest income                                            21,824         24,237         47,504         48,316
                                                                 -------------  -------------  -------------  -------------
Fee income
   Syndication fees                                                     1,825          2,380          3,236          3,998
   Origination fees                                                     2,219          1,505          2,917          2,594
   Loan servicing fees                                                  1,838          1,660          3,747          3,568
   Asset management and advisory fees                                   1,198          1,040          2,274          1,907
   Other income                                                         3,309          1,259          5,506          2,404
                                                                 -------------  -------------  -------------  -------------
      Total fee income                                                 10,389          7,844         17,680         14,471
                                                                 -------------  -------------  -------------  -------------
Net gain on sales                                                       1,453            703          2,731          2,869
                                                                 -------------  -------------  -------------  -------------
Total income                                                           33,666         32,784         67,915         65,656
                                                                 -------------  -------------  -------------  -------------
EXPENSES:
Interest expense                                                        8,724          8,487         19,092         17,459
Salaries and benefits                                                   8,671          5,930         14,637         10,757
General and administrative                                              2,113          1,697          3,938          3,423
Professional fees                                                         877          1,967          1,866          2,604
Amortization of mortgage servicing rights and other intangibles           414            333            803            651
                                                                 -------------  -------------  -------------  -------------
Total expenses                                                         20,799         18,414         40,336         34,894
                                                                 -------------  -------------  -------------  -------------
Net holding gains (losses) on derivatives                              (2,449)        (7,721)           424         (4,609)
Impairments and valuation allowances related to investments            (1,144)             -         (1,144)          (110)
Net gains (losses) from equity investments in partnerships             (2,157)            94         (2,904)          (229)
Income tax benefit (expense)                                              540           (828)           472         (1,859)
Income allocable to preferred shareholders and minority interests
   in subsidiary companies                                             (2,854)        (2,995)        (5,679)        (5,989)
                                                                 -------------  -------------  -------------  -------------
Net income from continuing operations                                   4,803          2,920         18,748         17,966
Discontinued operations                                                25,748              -         25,748              -
                                                                 -------------  -------------  -------------  -------------
Net income                                                        $    30,551    $     2,920    $    44,496    $    17,966
                                                                 =============  =============  =============  =============
LESS:
   Net income allocable to term growth shares                               -              -              -            153
                                                                 -------------  -------------  -------------  -------------
Net income allocated to common shares - GAAP Basis                $    30,551    $     2,920    $    44,496    $    17,813
                                                                 =============  =============  =============  =============
Conversion to Cash Available for Distribution:
   (1)Mark to market adjustments                                  $     2,449    $     7,721    $      (424)   $     4,609
   (2)Equity investments                                                3,732             79          6,142            519
   (3)Net gain on sales                                               (10,486)          (601)       (10,813)        (2,727)
   (3)Amortization of capitalized mortgage servicing fees                 414            333            766            651
   (4)Origination fees and other income, net                            1,335          1,450          1,616          2,123
   (5)Valuation allowances and other-than-temporary impairments         1,097              -          1,097            110
   (6)Deferred tax expense                                                984            483          1,612          1,100
   (7)Discontinued operations                                         (25,748)             -        (25,748)             -
   (7)Interest income                                                  10,793              -         10,793              -
                                                                 -------------  -------------  -------------  -------------
Cash Available for Distribution (CAD)                             $    15,121    $    12,385    $    29,537    $    24,198
                                                                 =============  =============  =============  =============

Notes
-----
(1) For GAAP reporting, the Company records the non-cash change in fair value of
its investment in interest rate swaps and other derivative financial instruments
through  net income.  These  non-cash  gains and losses are not  included in the
Company's calculation of CAD.
(2) For  GAAP  reporting,  the  Company  accounts  for  various  investments  in
partnerships  using the equity  accounting  method.  As a result,  the Company's
allocable  share of the  income or loss from the  partnerships  is  reported  in
income (losses) from equity  investments in partnerships.  The income from these
partnerships  includes  depreciation  expense  and  changes in the fair value of
investments in derivatives.  For GAAP reporting,  distributions are treated as a
return of capital. For CAD reporting, the Company records the cash distributions
it receives from the partnerships as other income. In addition, a portion of the
income or loss from partnerships is reduced by a minority interest for both GAAP
and CAD.
(3) For GAAP  reporting,  the  Company  recognizes  non-cash  gains  and  losses
associated  with the sale of  assets or  capitalization  of  mortgage  servicing
rights.  The capitalized  mortgage  servicing  rights are amortized into expense
over the  estimated  life of the  serviced  loans.  The  non-cash  gains and the
associated amortization expense are not included in CAD.
(4)  Origination  fees and certain other income amounts are recognized as income
when received for CAD purposes,  but for GAAP reporting these items are deferred
and  amortized  into income  over the life of the  associated  investment.  This
adjustment represents the net difference,  for the relevant period, between fees
taken into income when  received for CAD and the  amortization  of fees recorded
for GAAP.
(5)  For  GAAP  reporting,   the  Company  records   valuation   allowances  and
other-than-temporary  impairments on its  investments in loans,  bonds and other
bond-related  investments.  Such  non-cash  charges  do not affect the cash flow
generated  from the operation of the  underlying  properties,  distributions  to
shareholders, or the tax-exempt status of the income of the financial obligation
under the bonds.  Therefore,  these items are not included in the calculation of
CAD.
(6) For GAAP reporting, the Company's income tax expense contains both a current
and a deferred  component.  Only the  Company's  current  income tax  expense is
reflected in CAD.
(7) For  GAAP  reporting,  the  Company  recognized  a gain  upon  the sale of a
property.  This gain was required to be  classified as  discontinued  operations
because the Company owned the property prior to the sale. For CAD reporting, the
gain was  significantly  less due to  recording  a portion  of the  proceeds  as
interest  income.  In  addition,  the  carrying  value  of the  tax-exempt  bond
associated with the property was significantly more for CAD due to an impairment
previously recognized for GAAP.
</TABLE>
<PAGE>

<TABLE>
                                                MUNICIPAL MORTGAGE & EQUITY, LLC
                                        CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
                                                        (Unaudited)
                                        (In thousands, except share and per share data)

                                                                           For the three months ended      For the six months ended
                                                                                   June 30,                        June 30,
                                                                          ----------------------------   ---------------------------
                                                                             2003           2002             2003           2002
                                                                          ------------  --------------   -------------  ------------
<S>                                                                       <C>            <C>              <C>            <C>
SOURCES OF CASH:
Interest on bonds, residual interests in bond securitizations and loans   $    31,597    $   23,377       $   56,445     $   46,340
Interest on short-term investments                                                332           244              524            731
Syndication fees                                                                1,825         2,380            3,236          3,998
Origination fees                                                                2,711         3,005            3,871          4,513
Loan servicing fees                                                             1,835         1,660            3,744          3,568
Asset management and advisory fees                                              1,198         1,040            2,274          1,907
Distributions from equity investments in partnerships                           1,716           173            3,547            290
Other income                                                                    4,221         1,238            6,312          2,584
Net gain (loss) on sales                                                       (9,033)          102           (8,082)           142
                                                                          ------------  --------------   -------------  ------------
TOTAL SOURCES OF CASH                                                          36,402        33,219           71,871         64,073
                                                                          ------------  --------------   -------------  ------------
EXPENSES:
Interest expense                                                                8,102         7,900           17,941         16,190
Salaries and benefits                                                           8,671         5,930           14,637         10,757
Professional fees                                                                 877         1,967            1,866          2,604
General and administrative                                                      2,113         1,697            3,938          3,423
Loan loss expense                                                                  47             -               47              -
Income tax expense (benefit)                                                   (1,524)          345           (2,084)           759
                                                                          ------------  --------------   -------------  ------------
TOTAL EXPENSES                                                                 18,286        17,839           36,345         33,733
                                                                          ------------  --------------   -------------  ------------

CASH AVAILABLE FOR DISTRIBUTION                                                18,116        15,380           35,526         30,340
                                                                          ------------  --------------   -------------  ------------

LESS:
Cash allocable to preferred shareholders and term growth shares,
including preferred shareholders in a subsidiary company                        2,995         2,995            5,989          6,142
                                                                          ------------  --------------   -------------  ------------

 CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES                         $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

CAD PER COMMON SHARE                                                      $      0.52    $     0.49       $     1.02     $     0.96
                                                                          ============  ==============   =============  ============

CALCULATION OF CASH DISTRIBUTION:

CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                                      $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

ACTUAL AMOUNT PAID                                                        $    12,903    $   11,072       $   25,740     $   22,040
                                                                          ============  ==============   =============  ============

PAYOUT RATIO                                                                     85.3%         89.4%            87.3%          91.1%
                                                                          ============  ==============   =============  ============

COMMON SHARES OUTSTANDING                                                  28,832,443    25,308,022
                                                                          ============  ==============

CASH DISTRIBUTION PER COMMON SHARE                                        $    0.4475    $   0.4375       $   0.8925     $   0.8725
                                                                          ============  ==============   =============  ============

     The primary  differences  between Net Income as calculated  under generally
accepted  accounting  principles  ("GAAP") and Cash  Available For  Distribution
("CAD")  result from the timing of income and expense  recognition  and non-cash
events.  These differences  between CAD and GAAP income include the treatment of
loan  origination  fees, which for CAD purposes are recognized when received but
for  GAAP  purposes  are  amortized  over the life of the  associated  loan.  In
addition,  there are differences related to non-cash gains and losses associated
with bond  valuations  and  sales,  non-cash  gains and losses  associated  with
changes in market value of derivative  financial  instruments,  amortization  of
goodwill and intangibles and capitalization of mortgage servicing rights, net of
deferred taxes for GAAP purposes,  which are not included in the  calculation of
CAD.
     The common shares outstanding  reported for Cash Available for Distribution
are the actual  shares  outstanding  at the end of the  quarter.  For GAAP,  the
weighted average shares outstanding during the period are reported for the basic
net income per share  calculation.  The weighted average shares  outstanding for
diluted net income per share  include  the  potential  dilutive  effect from the
exercise of options,  vesting of restricted shares,  conversion of the preferred
shares and provision for shares to be awarded under the Midland acquisition earn
out provision.
</TABLE>
<PAGE>
<TABLE>

                                                 MUNICIPAL MORTGAGE & EQUITY, LLC
                                              CONDENSED CONSOLIDATED BALANCE SHEETS
                                                         (In thousands)

                                                                                   (unaudited)
                                                                                     June 30,       December 31,
                                                                                      2003             2002
                                                                                ---------------- ---------------
<S>                                                                              <C>              <C>
ASSETS:
Investment in tax-exempt bonds and residual interests
    in bond securitizations                                                      $      788,892   $     781,384
Loans receivable, net                                                                   451,397         422,299
Loans receivable held for sale                                                           11,023          39,149
Investments in partnerships                                                              97,688          99,966
Investment in derivative financial instruments                                            3,170          18,762
Cash, cash equivalents and interest receivable                                           98,587          59,902
Other assets                                                                            115,798          97,919
Goodwill                                                                                 33,607          33,537
                                                                                ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                                ================ ===============
LIABILITIES AND EQUITY:
Notes payable                                                                    $      436,949   $     450,924
Short-term debt                                                                         211,670         219,945
Long-term debt                                                                          142,006         147,357
Residual interests in bond securitizations                                                1,343           1,447
Investment in derivative financial instruments                                           21,792          49,359
Other liabilities                                                                        48,150          36,370
Preferred shareholders' and minority interests' equity in subsidiary companies          160,142         160,452
Shareholders' equity                                                                    578,110         487,064
                                                                               ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                               ================ ===============
</TABLE>
<PAGE>

Exhibit 99.3
------------

INFORMATION FOR RELEASE


          MuniMae Structures $399 Million of Multifamily Financing

           And Raises $38 Million in Capital During Second Quarter


BALTIMORE (July 17, 2003) -- Municipal  Mortgage & Equity, LLC (NYSE: MMA) known
as MuniMae,  announced  today that it  structured  $399 million of financing for
multifamily housing during the second quarter of 2003. In addition,  the Company
raised $38 million in tax credit equity.

Mark K.  Joseph,  Chairman of the Board and CEO of MuniMae,  commented,  "We are
very  pleased with the second  quarter  production  activity.  As is usually the
case,  our  production  volumes  tend to increase as the year goes on because of
cyclical issues unique to affordable housing. With the recent purchase of HCI, a
market  leader  in   syndication   of  low  income  housing  tax  credit  equity
investments,  and our existing  pipeline showing healthy growth,  we expect that
our production will be stronger for the second half of the year. We look forward
to the opportunity of servicing our clients as a one stop financing source."

Investment Activity Summary
---------------------------
Highlights of second quarter and year-to-date origination activity include:
<TABLE>

                                                                   Second Quarter                Year-to-Date
                                                                Volume (in millions)         Volume (in millions)
<S>                                                                    <C>                          <C>
Taxable Construction/Permanent Lending                                 $212.4                       $288.2
Tax-exempt Bonds Construction/Permanent                                  65.7                         97.8
Supplemental Loans                                                        7.7                         24.5
Equity Investments                                                      112.8                        141.9
Total                                                                  $398.6                       $552.4

</TABLE>

Capital Activity Summary
------------------------
In the second  quarter of 2003,  the Company  raised $38.7 million of tax credit
equity from five third-party investors, bringing the year-to-date total to $74.0
million in equity raised.

About Municipal Mortgage & Equity
---------------------------------
MuniMae and its subsidiaries originate,  service and asset manage investments in
multifamily  debt and equity for its own account and on behalf of others.  As of
June 30, 2003,  assets  under  management  totaled  $3.7 billion  secured by 933
properties  containing 96,168 units in 48 states and the U.S. Virgin Islands. As
of  July  1,  2003,  at the  completion  of the HCI  acquisition,  assets  under
management  totaled $7.5 billion  representing  approximately  2,044  properties
containing 218,144 units. For its proprietary accounts,  MuniMae primarily holds
tax-exempt  multifamily  housing  bonds.  This  on-balance  sheet  portfolio  of
tax-exempt  bonds is secured by 148  properties  containing  35,204  units in 28
states. For a portion of these bonds, MuniMae participates in the performance of
the underlying properties.

MuniMae is organized as a limited liability company,  which makes it exempt from
tax at the corporate level and provides the benefit of corporate governance.  In
addition,  the Company passes through to its shareholders  primarily  tax-exempt
dividends,  which are generated by its municipal bond investments.  Dividends to
shareholders  are  declared  quarterly  and paid in  February,  May,  August and
November.

This press release  contains  statements which are forward looking in nature and
reflect  management's  current views with respect to future events and financial
performance.  These statements are subject to many  uncertainties  and risks and
should not be considered  guarantees of future  performance.  Actual results may
vary materially from projected  results based on a number of factors,  including
the  actual  performance  of  the  properties  pledged  as  collateral  for  the
portfolio,  general  conditions  in the local real  estate  markets in which the
properties are located and prevailing interest rates.

       MUNIMAE: TAX-EXEMPT DISTRIBUTIONS AND GROWTH THROUGH REAL ESTATE

                    www.munimaemidland.com / www.mmafin.com

Contacts

Investor Relations
Angela Richardson, 888/788-3863
[{"type": "8-K", "sequence": "1", "filename": "analyst2q2003.txt", "description": "SUPPLEMENTAL PACKAGE", "secsgml_size_bytes": 164526}]
{"company-data": {"conformed-name": "MUNICIPAL MORTGAGE & EQUITY LLC", "cik": "0001003201", "assigned-sic": "6500", "irs-number": "521449733", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-11981", "film-number": "03792368"}, "business-address": {"street1": "218 N CHARLES ST", "street2": "STE 500", "city": "BALTIMORE", "state": "MD", "zip": "21201", "phone": "4109628044"}, "mail-address": {"street1": "218 N CHARLES ST", "street2": "STE 500", "city": "BALTIMORE", "state": "MD", "zip": "21201"}}
UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 8-K

            Current Report Pursuant to Section 13 or 15 (d) of the
                        Securities Exchange Act of 1934

                                 July 17, 2003
              (Date of Report (Date of Earliest Event Reported))

                       MUNICIPAL MORTGAGE & EQUITY, LLC
            (Exact Name of Registrant as Specified in Its Charter)

         Delaware                      011-11981             52-1449733
(State or other jurisdiction   (Commission File Number)   (I.R.S. Employer
  of incorporation or                                      Identification No.)
   organization)

 218 North Charles Street, Suite 500,                            21201
       Baltimore, Maryland
(Address of Principal Executive Offices)                       (Zip Code)

                                (443) 263-2900
              (Registrant's Telephone Number, including Area Code)
Item 7.  Financial Statements and Exhibits.

         (c) Exhibits.
                  Exhibit No.       Description of Document

                  99.1              Earnings Package, dated June 30, 2003

                  99.2              Earnings Press Release and Financial
                                    Statements, dated June 30, 2003

                  99.3              Production Press Release,
                                    dated June 30, 2003

Item 12.  Results of Operations and Financial Condition.

     On July 17,  2003,  Municipal  Mortgage  &  Equity,  LLC  (the  "Company"),
distributed an earnings package to Analysts relating to the Company's  financial
performance  for the quarter  ended June 30, 2003. A copy of the package,  dated
June 30, 2003, is attached hereto as Exhibit 99.1.

     On July 17, 2003,  the Company  distributed  an earnings  press release and
financial  statements  relating to the Company's  financial  performance for the
quarter  ended  June  30,  2003.  A copy  of the  press  release  and  financial
statements, dated June 30, 2003, is attached hereto as Exhibit 99.2.

     On July 17,  2003,  the Company  distributed  a  production  press  release
relating to the Company's production volume for the quarter ended June 30, 2003.
A copy of the press release,  dated June 30, 2003, is attached hereto as Exhibit
99.3.
Exhibit 99.1
------------

                       MUNICIPAL MORTGAGE AND EQUITY, LLC

                                EARNINGS PACKAGE

                           QUARTER ENDED JUNE 30, 2003
TABLE OF CONTENTS

GAAP Income Statement for the three and
  six months ended June 30, 2003                                      Page 5

Variance Analysis for GAAP                                            Page 6

Rolling Five Quarters - GAAP                                          Page 8

Calculation of Diluted Earnings Per Share                             Page 9

GAAP Net Income to CAD reconcilation for
  the Rolling Five Quarters                                           Page 10

CAD Statement for the three and six months
  ended June 30, 2003                                                 Page 12

Variance Analysis for CAD                                             Page 13

Rolling Five Quarters - CAD                                           Page 15

Condensed Balance Sheets and Book Value Per Share                     Page 16

Summary of 2nd Quarter 2003 Investment Activity                       Page 17

Participating Portfolio Property Net Operating
  Income Trends                                                       Page 18

Units and Average Rents for Bond Portfolio                            Page 19

Conference Call Script - Combined Tax Credit Equity Business          Page 25
MUNICIPAL MORTGAGE & EQUITY, LLC
                                          CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (In thousands, except share and per share data)
                                                         (unaudited)

                                                                         For the three months ended     For the six months ended
                                                                                 June 30,                        June 30,
                                                                       -----------------------------   -----------------------------
                                                                          2003            2002            2003            2002
                                                                       -------------  --------------   -------------  --------------
INCOME:
Interest income
     Interest on bonds and residual interests in bond securitizations  $     13,929    $     15,399     $    29,914    $     30,561
     Interest on loans                                                        7,563           8,594          17,066          17,024
     Interest on short-term investments                                         332             244             524             731
                                                                       -------------  --------------   -------------  --------------
        Total interest income                                                21,824          24,237          47,504          48,316
                                                                       -------------  --------------   -------------  --------------
Fee income
     Syndication fees                                                         1,825           2,380           3,236           3,998
     Origination fees                                                         2,219           1,505           2,917           2,594
     Loan servicing fees                                                      1,838           1,660           3,747           3,568
     Asset management and advisory fees                                       1,198           1,040           2,274           1,907
     Other income                                                             3,309           1,259           5,506           2,404
                                                                       -------------  --------------   -------------  --------------
        Total fee income                                                     10,389           7,844          17,680          14,471
                                                                       -------------  --------------   -------------  --------------
Net gain on sales                                                             1,453             703           2,731           2,869
                                                                       -------------  --------------   -------------  --------------
Total income                                                                 33,666          32,784          67,915          65,656
                                                                       -------------  --------------   -------------  --------------
EXPENSES:
Interest expense                                                              8,724           8,487          19,092          17,459
Salaries and benefits                                                         8,671           5,930          14,637          10,757
General and administrative                                                    2,113           1,697           3,938           3,423
Professional fees                                                               877           1,967           1,866           2,604
Amortization of mortgage servicing rights and other intangibles                 414             333             803             651
                                                                       -------------  --------------   -------------  --------------
Total expenses                                                               20,799          18,414          40,336          34,894
                                                                       -------------  --------------   -------------  --------------
Net holding gains (losses) on derivatives                                    (2,449)         (7,721)            424          (4,609)
Impairments and valuation allowances related to investments                  (1,144)              -          (1,144)           (110)
Net gains (losses) from equity investments in partnerships                   (2,157)             94          (2,904)           (229)
Income tax benefit (expense)                                                    540            (828)            472          (1,859)
Income allocable to preferred shareholders and minority interests in
     subsidiary companies                                                    (2,854)         (2,995)         (5,679)         (5,989)
                                                                       -------------  --------------   -------------  --------------
Net income from continuing operations                                         4,803           2,920          18,748          17,966
Discontinued operations                                                      25,748               -          25,748               -
                                                                       -------------  --------------   -------------  --------------
Net Income                                                             $     30,551    $      2,920     $    44,496    $     17,966
                                                                       =============  ==============   =============  ==============
LESS:
     Net income allocable to term growth shares                                   -               -               -             153
                                                                       -------------  --------------   -------------  --------------
Net income allocated to common shares                                  $     30,551    $      2,920     $    44,496    $     17,813
                                                                       =============  ==============   =============  ==============

EARNINGS PER COMMON SHARE:
Basic earnings per common share:
     Net income from continuing operations                             $       0.17    $       0.12     $      0.67    $       0.73
     Discontinued operations                                                   0.89               -            0.91               -
                                                                       -------------  --------------   -------------  --------------
     Basic earnings per common share                                   $       1.06    $       0.12     $      1.58    $       0.73
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          28,857,305      25,252,124      28,104,281      24,423,091
Diluted earnings per common share:
     Net income from continuing operations                             $       0.16    $       0.11     $      0.66    $       0.71
     Discontinued operations                                                   0.89               -            0.90               -
                                                                       -------------  --------------   -------------  --------------
     Diluted earnings per common share                                 $       1.05    $       0.11     $      1.56    $       0.71
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          29,213,062      25,835,808      28,451,480      25,022,631
VARIANCE ANALYSIS FOR GAAP

2nd Quarter 2003 Compared to 2nd Quarter 2002:

Total income for the second quarter of 2003 increased $0.9 million over the same
period last year due  primarily  to the  following  changes:  (1) a $2.1 million
increase in other income due primarily to: (i) a $1.0 million fee collected on a
conventional  equity  deal;  (ii)  $0.8  million  collected  as the  result of a
collateral  release  after  the  sale  of a  property;  (iii)  $0.8  million  in
prepayment fees collected from the early payment of tax-exempt bond investments;
and (iv) a $0.5  million  decrease  in  commission  income;  (2) a $0.8  million
increase in net gain on sales due to the termination of interest rate swaps; (3)
a $0.7 million increase in origination fees due to increased  volume;  and (4) a
$2.5  million  decrease in accrual of interest on bonds,  residual  interests in
bond securitizations and loans.

Total  expenses  for the second  quarter  increased  $2.4  million over the same
period last year due  primarily  to the  following  changes:  (1) a $2.7 million
increase in salaries and  benefits  resulting  from a $0.8  million  increase in
salaries and other  compensation  and a $2.0 million  increase in bonus expense;
(2) a $0.4 million increase in general and administrative expenses due primarily
to: (i) increases totaling $0.3 million due to telephone, bank fees, memberships
and dues and costs  related to the  integration  of HCI; and (ii) a $0.1 million
increase in travel and  entertainment;  (3) a $0.2 million  increase in interest
expense   associated   with  an  increase   in   financing   costs   related  to
on-balance-sheet  securitizations  and larger  average  notes  payable  balances
outstanding during the quarter;  and (4) a $1.1 million decrease in professional
fees due primarily to: (i) a $0.5 million  decrease in commission  expense;  and
(ii) a $0.4 million decrease in legal fees due to information  systems and other
corporate  initiatives  in the  prior  year.  Commission  expense  is no  longer
incurred  by the Company  because  the  pass-through  of  commission  income and
expense has been transferred to the syndicated tax credit equity funds.

The Company recorded net holding losses of $2.4 million for the change in market
value of the Company's derivative financial instruments, which is a $5.3 million
decrease  from the same  period  of 2002 due  primarily  to the  termination  of
interest rate swaps. The Company recorded  impairments  totaling $1.1 million on
one bond and three taxable loans.  Losses from equity  investments  totaled $2.2
million,  which is a $2.3 million  increase  from the same period of 2002 due to
losses  from the  CAPREIT  Tera  investment  and  warehoused  tax credit  equity
properties. The Company also recorded $0.5 million in income tax benefit. Income
tax expense  decreased  $1.4 million from the same period in 2002 primarily as a
result of taxable losses generated by the CAPREIT investments.

The Company also recorded  $25.7 million in  discontinued  operations  resulting
from the sale of a property that was previously held by the Company.

Year-to-Date 2003 Compared to Year-to-Date 2002:

Total income for the six months ended June 30, 2003  increased $2.3 million over
the same period last year due  primarily to the  following  changes:  (1) a $3.1
million  increase in other  income due  primarily  to: (i) $1.6  million in fees
collected on a conventional  equity deal;  (ii) $1.7 million in prepayment  fees
collected  from the early payment of  tax-exempt  bond  investments;  (iii) $0.8
million  collected  as the result of a  collateral  release  after the sale of a
property;  and (iv) a $1.0 million decrease in commission income; and (2) a $0.8
million  decrease  in  syndication  fees  due to a  decrease  in the  volume  of
syndications  closed  combined  with taking $0.5 million in  organizational  and
offering  cost  reimbursements  related to closed  syndicated  tax credit equity
funds into income  during the first  quarter of 2002,  whereas no such fees were
recognized during 2003.

Total  expenses  for the six months ended June 30, 2003  increased  $5.4 million
over the same period last year due  primarily to the  following  changes:  (1) a
$3.9 million  increase in salaries and  benefits  resulting  from a $1.0 million
increase in salaries and other compensation and a $2.9 million increase in bonus
expense;  (2) a $1.6 million  increase in interest  expense  associated  with an
increase in financing  costs  related to  on-balance-sheet  securitizations  and
larger average notes payable balances outstanding during the quarter; (3) a $0.5
million  increase in general and  administrative  expenses due primarily to: (i)
increases  totaling $0.4 million due to telephone,  bank fees,  letter of credit
fees, memberships and dues and costs related to the integration of HCI; and (ii)
a $0.1  million  increase in  investment  acquisition  expenses;  and (4) a $0.7
million  decrease in  professional  fees due  primarily  to: (i) a $1.0  million
decrease in  commission  expense and (ii) a $0.3 million  increase in consulting
fees  due to an  internal  controls  project  and  research  related  to the HCI
acquisition.

The Company recorded net holding losses of $0.4 million for the change in market
value of the Company's derivative financial instruments, which is a $5.0 million
decrease  from the $4.6 million of losses  recorded in 2002 due primarily to the
termination of interest rate swaps.  The Company recorded  impairments  totaling
$1.1 million on one bond and three taxable loans. Losses from equity investments
totaled $2.9 million,  which is a $2.7 million  increase from the same period of
2002 due to losses from the CAPREIT Tera  investment  and  warehoused tax credit
equity properties. The Company also recorded $0.5 million in income tax benefit.
Income tax expense  decreased  $2.3 million  from 2002  primarily as a result of
taxable losses generated by the CAPREIT investments.

The Company also recorded  $25.7 million in  discontinued  operations  resulting
from the sale of a property that was previously held by the Company.
MUNICIPAL MORTGAGE & EQUITY, LLC
                                         CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (In thousands, except share and per share data)
                                                         (unaudited)

                                                         Qtr Ended       Qtr Ended      Qtr Ended      Qtr Ended      Qtr Ended
INCOME:                                                   06/30/03        03/31/03       12/31/02       09/30/02       06/30/02
                                                       --------------  --------------  -------------  ------------- -------------
Interest income
     Interest on bonds and residual interests in
       bond securitizations                             $     13,929    $     15,985   $     13,953   $     15,409  $     15,399
     Interest on loans                                         7,563           9,503          9,195          8,676         8,594
     Interest on short-term investments                          332             192            264            260           244
                                                       --------------  --------------  -------------  ------------- -------------
        Total interest income                                 21,824          25,680         23,412         24,345        24,237
                                                       --------------  --------------  -------------  ------------- -------------
Fee income
     Syndication fees                                          1,825           1,411          2,456            767         2,380
     Origination fees                                          2,219             698          2,023          2,014         1,505
     Loan servicing fees                                       1,838           1,909          1,711          1,544         1,660
     Asset management and advisory fees                        1,198           1,076          1,011            969         1,040
     Other income                                              3,309           2,197          1,132            899         1,259
                                                       --------------  --------------  -------------  ------------- -------------
        Total fee income                                      10,389           7,291          8,333          6,193         7,844
                                                       --------------  --------------  -------------  ------------- -------------
Net gain on sales                                              1,453           1,278          5,032            657           703
                                                       --------------  --------------  -------------  ------------- -------------
Total income                                                  33,666          34,249         36,777         31,195        32,784
                                                       --------------  --------------  -------------  ------------- -------------
EXPENSES:
Interest expense                                               8,724          10,368         10,366          8,771         8,487
Salaries and benefits                                          8,671           5,966          6,475          5,446         5,930
General and administrative                                     2,113           1,825          1,880          1,756         1,697
Professional fees                                                877             989          1,472            884         1,967
Amortization of mortgage servicing rights and
  other intangibles                                              414             389            329            334           333
                                                       --------------  --------------  -------------  ------------- -------------
Total expenses                                                20,799          19,537         20,522         17,191        18,414
                                                       --------------  --------------  -------------  ------------- -------------
Net holding gains (losses) on derivatives                     (2,449)          2,873           (333)        (9,921)       (7,721)
Impairments and valuation allowances related to
  investments                                                 (1,144)              -           (620)             -             -
Net gains (losses) from equity investments in
  partnerships                                                (2,157)           (747)        (1,341)        (1,487)           94
Income tax benefit (expense)                                     540             (68)          (260)           635          (828)
Income allocable to preferred shareholders and
  minority interests in subsidiary companies                  (2,854)         (2,825)        (2,955)        (2,994)       (2,995)
                                                       --------------  --------------  -------------  ------------- -------------
Net income from continuing operations                          4,803          13,945         10,746            237         2,920
Discontinued operations                                       25,748               -              -              -             -
                                                       --------------  --------------  -------------  ------------- -------------
Net income allocated to common shares                   $     30,551    $     13,945   $     10,746   $        237  $      2,920
                                                       ==============  ==============  =============  ============= =============
EARNINGS PER COMMON SHARE:
Basic earnings per common share:
     Net income from continuing operations              $       0.17    $       0.51   $       0.42   $       0.01  $       0.12
     Discontinued operations                                    0.89               -              -              -             -
                                                       --------------  --------------  -------------  ------------- -------------
     Basic earnings per common share                    $       1.06    $       0.51   $       0.42   $       0.01  $       0.12
                                                       ==============  ==============  =============  ============= =============
     Weighted average common shares outstanding           28,857,305      27,342,870     25,426,254     25,329,103    25,252,124
Diluted earnings per common share:
     Net income from continuing operations              $       0.16    $       0.50   $       0.41   $       0.01  $       0.11
     Discontinued operations                                    0.89               -              -              -             -
                                                       --------------  --------------  -------------  ------------- -------------
     Diluted earnings per common share                  $       1.05    $       0.50   $       0.41   $       0.01  $       0.11
                                                       ==============  ==============  =============  ============= =============
     Weighted average common shares outstanding           29,213,062      27,681,511     25,917,641     25,916,151    25,835,808

Note: Certain prior quarter amounts have been reclassified to conform to the 06/30/03 presentation.
Municipal Mortgage & Equity, LLC
                                                   Reconciliation of Basic and Diluted EPS
                                                                 (unaudited)

                                           For the three months ended June 30, 2003     For the three months ended June 30, 2002
                                             Income          Shares       Per Share       Income         Shares        Per Share
                                            (Numerator)   (Denominator)     Amount      (Numerator)    (Denominator)    Amount
                                           ------------------------------------------  -------------------------------------------
(in thousands, except share and per share data)

Basic EPS

Net income from continuing operations       $    4,803                     $    0.17     $    2,920                     $    0.12
Discontinued operations                         25,748                          0.89              -                             -
                                           ------------                   -----------    -----------                  ------------
Income allocable to common shares           $   30,551       28,857,305    $    1.06     $    2,920      25,252,124     $    0.12
                                           ============                   ===========    ===========                  ============

Effect of Dilutive Securities

Options and deferred shares                                     355,757                                     450,829

Earnings contingency                                                  -                                     132,855
                                                         ---------------                              --------------

Diluted EPS

Net income from continuing operations       $    4,803                     $    0.16     $    2,920                     $    0.11
Discontinued operations                         25,748                          0.89              -                             -
                                           ------------                   -----------  -------------                  ------------
Income allocable to common shares
   plus assumed conversions                 $   30,551       29,213,062    $    1.05     $    2,920      25,835,808     $    0.11
                                           ============  ===============  ===========  =============  ==============  ============

                                            For the six months ended June 30, 2003       For the six months ended June 30, 2002
                                             Income          Shares       Per Share       Income         Shares        Per Share
                                            (Numerator)   (Denominator)     Amount      (Numerator)    (Denominator)    Amount
                                           ------------------------------------------  -------------------------------------------
(in thousands, except share and per share data)

Basic EPS

Net income from continuing operations       $   18,748                     $    0.67     $   17,813                     $    0.73
Discontinued operations                         25,748                          0.91              -                             -
                                           ------------                   -----------    -----------                  ------------
Income allocable to common shares           $   44,496       28,104,281    $    1.58     $   17,813      24,423,091     $    0.73
                                           ============                   ===========                                 ============
Effect of Dilutive Securities

Options and deferred shares                                     347,199                                     466,685

Earnings contingency                                                  -                                     132,855
                                                         ---------------                              --------------
Diluted EPS

Net income from continuing operations       $   18,748                     $    0.66     $    2,920                     $    0.71
Discontinued operations                         25,748                          0.90              -                             -
                                           ------------                   -----------    -----------                  ------------
Income allocable to common shares
   plus assumed conversions                 $   44,496       28,451,480    $    1.56     $   17,813      25,022,631     $    0.71
                                           ============  ===============  ===========  =============  ==============  ============
MUNICIPAL MORTGAGE & EQUITY, LLC
                                 RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
                                                         (In thousands)
                                                          (unaudited)

                                                      Qtr Ended        Qtr Ended       Qtr Ended       Qtr Ended       Qtr Ended
INCOME:                                                06/30/03        03/31/03        12/31/02        09/30/02         06/30/02
                                                    ---------------  --------------  --------------  --------------  --------------
Interest income
      Interest on bonds and residual
        interests in bond securitizations            $      13,929    $     15,985    $     13,953    $     15,409    $     15,399
      Interest on loans                                      7,563           9,503           9,195           8,676           8,594
      Interest on short-term investments                       332             192             264             260             244
                                                    ---------------  --------------  --------------  --------------  --------------
         Total interest income                              21,824          25,680          23,412          24,345          24,237
                                                    ---------------  --------------  --------------  --------------  --------------
Fee income
      Syndication fees                                       1,825           1,411           2,456             767           2,380
      Origination fees                                       2,219             698           2,023           2,014           1,505
      Loan servicing fees                                    1,838           1,909           1,711           1,544           1,660
      Asset management and advisory fees                     1,198           1,076           1,011             969           1,040
      Other income                                           3,309           2,197           1,132             899           1,259
                                                    ---------------  --------------  --------------  --------------  --------------
         Total fee income                                   10,389           7,291           8,333           6,193           7,844
                                                    ---------------  --------------  --------------  --------------  --------------
Net gain on sales                                            1,453           1,278           5,032             657             703
                                                    ---------------  --------------  --------------  --------------  --------------
Total income                                                33,666          34,249          36,777          31,195          32,784
                                                    ---------------  --------------  --------------  --------------  --------------
EXPENSES:
Interest expense                                             8,724          10,368          10,366           8,771           8,487
Salaries and benefits                                        8,671           5,966           6,475           5,446           5,930
General and administrative                                   2,113           1,825           1,880           1,756           1,697
Professional fees                                              877             989           1,472             884           1,967
Amortization of mortgage servicing rights
  and other intangibles                                        414             389             329             334             333
                                                    ---------------  --------------  --------------  --------------  --------------
Total expenses                                              20,799          19,537          20,522          17,191          18,414
                                                    ---------------  --------------  --------------  --------------  --------------
Net holding gains (losses) on derivatives                   (2,449)          2,873            (333)         (9,921)         (7,721)
Impairments and valuation allowances related
  to investments                                            (1,144)              -            (620)              -               -
Net gains (losses) from equity investments
  in partnerships                                           (2,157)           (747)         (1,341)         (1,487)             94
Income tax benefit (expense)                                   540             (68)           (260)            635            (828)
Income allocable to preferred shareholders
  and minority interests in subsidiary companies            (2,854)         (2,825)         (2,955)         (2,994)         (2,995)
                                                    ---------------  --------------  --------------  --------------  --------------
Net income from continuing operations                        4,803          13,945          10,746             237           2,290
Discontinued operations                                     25,748               -               -               -               -
                                                    ---------------  --------------  --------------  --------------  --------------
Net income allocated to common shares                $      30,551    $     13,945    $     10,746    $        237    $      2,920
                                                    ===============  ==============  ==============  ==============  ==============

Conversion to Cash Available for Distribution:
      (1)Mark to market adjustments                  $       2,449    $     (2,873)   $        333    $      9,921    $      7,721
      (2)Equity investments                                  3,732           2,409           2,837           3,247              79
      (3)Net gain on sales                                 (10,486)           (327)         (3,395)           (450)           (601)
      (3)Amortization of capitalized mortgage
           servicing fees                                      414             352             329             334             333
      (4)Origination fees and other income, net              1,335             282           1,376              54           1,450
      (5)Valuation allowances and
           other-than-temporary impairments                  1,097               -             620               -               -
      (6)Deferred tax expense                                  984             628             703            (462)            483
      (7)Discontinued operations                           (25,748)              -               -               -               -
      (7)Interest income                                    10,793               -               -               -               -
                                                    ---------------  --------------  --------------  --------------  --------------
Cash Available for Distribution (CAD)                $      15,121    $     14,416    $     13,549    $     12,881    $     12,385
                                                    ===============  ==============  ==============  ==============  ==============

Notes
(1)  For GAAP  reporting,  the Company records the non-cash change in fair value
     of its  investment  in interest rate swaps and other  derivative  financial
     instruments  through net income.  These  non-cash  gains and losses are not
     included in the Company's calculation of CAD.
(2)  For GAAP  reporting,  the  Company  accounts  for  various  investments  in
     partnerships using the equity accounting method. As a result, the Company's
     allocable share of the income or loss from the  partnerships is reported in
     income (losses) from equity  investments in  partnerships.  The income from
     these partnerships  includes  depreciation  expense and changes in the fair
     value of investments in derivatives. For GAAP reporting,  distributions are
     treated as a return of capital. For CAD reporting,  the Company records the
     cash  distributions it receives from the  partnerships as other income.  In
     addition, a portion of the income or loss from partnerships is reduced by a
     minority interest for both GAAP and CAD.
(3)  For GAAP  reporting,  the  Company  recognizes  non-cash  gains and  losses
     associated with the sale of assets or capitalization of mortgage  servicing
     rights.  The  capitalized  mortgage  servicing  rights are  amortized  into
     expense over the estimated life of the serviced  loans.  The non-cash gains
     and the associated amortization expense are not included in CAD.
(4)  Origination  fees and certain other income amounts are recognized as income
     when  received for CAD  purposes,  but for GAAP  reporting  these items are
     deferred  and  amortized  into  income  over  the  life  of the  associated
     investment. This adjustment represents the net difference, for the relevant
     period,  between  fees  taken into  income  when  received  for CAD and the
     amortization of fees recorded for GAAP.
(5)  For  GAAP  reporting,   the  Company  records   valuation   allowances  and
     other-than-temporary  impairments on its  investments  in loans,  bonds and
     other  bond-related  investments.  Such non-cash  charges do not affect the
     cash  flow  generated  from the  operation  of the  underlying  properties,
     distributions  to shareholders,  or the tax-exempt  status of the income of
     the financial  obligation under the bonds.  Therefore,  these items are not
     included in the calculation of CAD.
(6)  For GAAP  reporting,  the  Company's  income tax  expense  contains  both a
     current and a deferred  component.  Only the Company's  current  income tax
     expense is reflected in CAD.
(7)  For  GAAP  reporting,  the  Company  recognized  a gain  upon the sale of a
     property.   This  gain  was  required  to  be  classified  as  discontinued
     operations  because the Company owned the property  prior to the sale.  For
     CAD reporting,  the gain was significantly  less due to recording a portion
     of the proceeds as interest income. In addition,  the carrying value of the
     tax-exempt bond associated with the property was significantly more for CAD
     due to an impairment previously recognized for GAAP.
MUNICIPAL MORTGAGE & EQUITY, LLC
                                        CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
                                                        (Unaudited)
                                        (In thousands, except share and per share data)

                                                                           For the three months ended      For the six months ended
                                                                                   June 30,                        June 30,
                                                                          ----------------------------   ---------------------------
                                                                             2003           2002             2003           2002
                                                                          ------------  --------------   -------------  ------------
SOURCES OF CASH:
Interest on bonds, residual interests in bond securitizations and loans   $    31,597    $   23,377       $   56,445     $   46,340
Interest on short-term investments                                                332           244              524            731
Syndication fees                                                                1,825         2,380            3,236          3,998
Origination fees                                                                2,711         3,005            3,871          4,513
Loan servicing fees                                                             1,835         1,660            3,744          3,568
Asset management and advisory fees                                              1,198         1,040            2,274          1,907
Distributions from equity investments in partnerships                           1,716           173            3,547            290
Other income                                                                    4,221         1,238            6,312          2,584
Net gain (loss) on sales                                                       (9,033)          102           (8,082)           142
                                                                          ------------  --------------   -------------  ------------
TOTAL SOURCES OF CASH                                                          36,402        33,219           71,871         64,073
                                                                          ------------  --------------   -------------  ------------
EXPENSES:
Interest expense                                                                8,102         7,900           17,941         16,190
Salaries and benefits                                                           8,671         5,930           14,637         10,757
Professional fees                                                                 877         1,967            1,866          2,604
General and administrative                                                      2,113         1,697            3,938          3,423
Loan loss expense                                                                  47             -               47              -
Income tax expense (benefit)                                                   (1,524)          345           (2,084)           759
                                                                          ------------  --------------   -------------  ------------
TOTAL EXPENSES                                                                 18,286        17,839           36,345         33,733
                                                                          ------------  --------------   -------------  ------------

CASH AVAILABLE FOR DISTRIBUTION                                                18,116        15,380           35,526         30,340
                                                                          ------------  --------------   -------------  ------------

LESS:
Cash allocable to preferred shareholders and term growth shares,
including preferred shareholders in a subsidiary company                        2,995         2,995            5,989          6,142
                                                                          ------------  --------------   -------------  ------------

 CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES                         $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

CAD PER COMMON SHARE                                                      $      0.52    $     0.49       $     1.02     $     0.96
                                                                          ============  ==============   =============  ============

CALCULATION OF CASH DISTRIBUTION:

CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                                      $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

ACTUAL AMOUNT PAID                                                        $    12,903    $   11,072       $   25,740     $   22,040
                                                                          ============  ==============   =============  ============

PAYOUT RATIO                                                                     85.3%         89.4%            87.3%          91.1%
                                                                          ============  ==============   =============  ============

COMMON SHARES OUTSTANDING                                                  28,832,443    25,308,022
                                                                          ============  ==============

CASH DISTRIBUTION PER COMMON SHARE                                        $    0.4475    $   0.4375       $   0.8925     $   0.8725
                                                                          ============  ==============   =============  ============

     The primary  differences  between Net Income as calculated  under generally
accepted  accounting  principles  ("GAAP") and Cash  Available For  Distribution
("CAD")  result from the timing of income and expense  recognition  and non-cash
events.  These differences  between CAD and GAAP income include the treatment of
loan  origination  fees, which for CAD purposes are recognized when received but
for  GAAP  purposes  are  amortized  over the life of the  associated  loan.  In
addition,  there are differences related to non-cash gains and losses associated
with bond  valuations  and  sales,  non-cash  gains and losses  associated  with
changes in market value of derivative  financial  instruments,  amortization  of
goodwill and intangibles and capitalization of mortgage servicing rights, net of
deferred taxes for GAAP purposes,  which are not included in the  calculation of
CAD.
     The common shares outstanding  reported for Cash Available for Distribution
are the actual  shares  outstanding  at the end of the  quarter.  For GAAP,  the
weighted average shares outstanding during the period are reported for the basic
net income per share  calculation.  The weighted average shares  outstanding for
diluted net income per share  include  the  potential  dilutive  effect from the
exercise of options,  vesting of restricted shares,  conversion of the preferred
shares and provision for shares to be awarded under the Midland acquisition earn
out provision.
VARIANCE ANALYSIS FOR CAD

2nd Quarter 2003 Compared to 2nd Quarter 2002:

Total income for the second quarter of 2003 increased $3.2 million over the same
period last year due  primarily to the  following  changes:  (1) an $8.2 million
increase in interest on bonds,  residual interests in bond  securitizations  and
loans due  primarily  to: (i) $10.8  million of deferred base interest and yield
maintenance  collected upon the sale of a property;  offset by (ii) $1.0 million
of interest that was reclassified to other income due to the Company holding the
property  prior to sale to a third party;  and (iii) a $1.6 million  decrease in
collections of interest on bonds, residual interests in bond securitizations and
loans;  (2) a $3.0 million increase in other income due primarily to: (i) a $1.0
million fee  collected  on a  conventional  equity  deal;  (ii) $1.0  million of
interest collected from a property that was held by the Company prior to sale to
a third  party;  (iii) $0.8  million  collected  as the  result of a  collateral
release  after the sale of a  property;  (iv) $0.8  million in  prepayment  fees
collected from the early payment of tax-exempt bond investments;  and (v) a $0.5
million  decrease  in  commission   income;  (3)  a  $1.5  million  increase  in
distributions  from equity  investments  in  partnerships  due  primarily  to an
increase in income from the CAPREIT investments;  (4) a $9.1 million decrease in
net  gain  (loss)  on  sales  due  primarily  to a  $10.8  million  loss  on the
termination  of  interest  rate  swaps  offset  in part by a $1.5  million  gain
recorded on the payoff of the  tax-exempt  bond and  taxable  loan on a property
that was sold during the quarter; and (5) a $0.6 million decrease in syndication
fees due to a decrease in the volume of syndications closed.

Total  expenses  for the second  quarter  increased  $0.4  million over the same
period last year due  primarily  to the  following  changes:  (1) a $2.7 million
increase in salaries and  benefits  resulting  from a $0.8  million  increase in
salaries and other  compensation  and a $2.0 million  increase in bonus expense;
(2) a $0.4 million increase in general and administrative expenses due primarily
to: (i) increases totaling $0.3 million due to telephone, bank fees, memberships
and dues and costs  related to the  integration  of HCI; and (ii) a $0.1 million
increase in travel and  entertainment;  (3) a $0.2 million  increase in interest
expense   associated   with  an  increase   in   financing   costs   related  to
on-balance-sheet  securitizations  and larger  average  notes  payable  balances
outstanding  during  the  quarter;  (4) a $1.9  million  decrease  in income tax
expense  primarily  as a result  of  taxable  losses  generated  by the  CAPREIT
investments;  and (5) a $1.1 million decrease in professional fees due primarily
to: (i) a $0.5 million decrease in commission  expense;  and (ii) a $0.4 million
decrease  in  legal  fees  due  to  information   systems  and  other  corporate
initiatives in the prior year.  Commission  expense is no longer incurred by the
Company  because  the  pass-through  of  commission  income and expense has been
transferred to the syndicated tax credit equity funds.

Year-to-Date 2003 Compared to Year-to-Date 2002:

Total income for the six months ended June 30, 2003  increased $7.8 million over
the same period last year due  primarily to the following  changes:  (1) a $10.1
million   increase   in   interest  on  bonds,   residual   interests   in  bond
securitizations  and loans due  primarily to: (i) $10.8 million of deferred base
interest and yield maintenance collected upon the sale of a property;  partially
offset by (ii) $1.0 million of interest  that was  reclassified  to other income
due to the Company  holding the property  prior to sale to a third party;  (2) a
$3.7  million  increase in other  income due  primarily  to: (i) $1.7 million in
prepayment fees collected from the early payment of tax-exempt bond investments;
(ii) $1.6 million in fees  collected on a conventional  equity deal;  (iii) $1.0
million of interest collected from a property that was held by the Company prior
to sale to a third  party;  (iv)  $0.8  million  collected  as the  result  of a
collateral release after the sale of a property;  (v) a $1.0 million decrease in
commission  income;  and (vi) a $0.3 million  decrease in the collection of loan
related fees such as  cancellation,  application  and extension fees; (3) a $3.3
million  increase in distributions  from equity  investments in partnerships due
primarily  to an increase in income  from the CAPREIT  investments;  (4) an $8.2
million  decrease  in net gain  (loss) on sales due  primarily  to:  (i) a $10.8
million loss on the termination of interest rate swaps; (ii) a $1.5 million gain
recorded on the payoff of the  tax-exempt  bond and  taxable  loan on a property
that was sold; and (iii) a $1.1 million  increase in gain on sales related to an
increase  in  premiums  on the  delivery  of  loans  to HUD and  gain on sale on
delivery  of loans to a new  conduit  lender;  (5) a $0.8  million  decrease  in
syndication fees due to a decrease in the volume of syndications closed combined
with taking $0.5  million in  organizational  and offering  cost  reimbursements
related to closed  syndicated  tax credit  equity  funds into income  during the
first quarter of 2002, whereas no such fees were recognized during 2003; and (6)
a $0.6 million  decrease in origination fees due primarily to an origination fee
recognized on the CAPREIT transaction in 2002.

Total  expenses  for the six months ended June 30, 2003  increased  $2.6 million
over the same period last year due  primarily to the  following  changes:  (1) a
$3.9 million  increase in salaries and  benefits  resulting  from a $1.0 million
increase in salaries and other compensation and a $2.9 million increase in bonus
expense;  (2) a $1.8 million  increase in interest  expense  associated  with an
increase in financing  costs  related to  on-balance-sheet  securitizations  and
larger average notes payable balances outstanding during the quarter; (3) a $0.5
million  increase in general and  administrative  expenses due primarily to: (i)
increases  totaling $0.4 million due to telephone,  bank fees,  letter of credit
fees, memberships and dues and costs related to the integration of HCI; and (ii)
a $0.1 million increase in investment  acquisition expenses;  (4) a $2.8 million
decrease in income tax expense  primarily as a result of tax losses generated by
the CAPREIT  investments;  and (5) a $0.7 million decrease in professional  fees
due primarily to: (i) a $1.0 million decrease in commission expense;  and (ii) a
$0.3 million increase in consulting fees due to an internal controls project and
the HCI acquisition.
MUNICIPAL MORTGAGE & EQUITY, LLC
                                                CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
                                                (In thousands, except share and per share data)
                                                                  (unaudited)

                                                                 Qtr Ended     Qtr Ended     Qtr Ended     Qtr Ended     Qtr Ended
                                                                  06/30/03      03/31/03      12/31/02      09/30/02      06/30/02
                                                               ------------- ------------- ------------- ------------- -------------
SOURCES OF CASH:
Interest on bonds, residual interests in bond
     securitizations and loans                                  $    31,597   $    24,848   $    22,596   $    23,331   $    23,377
Interest on short-term investments                                      332           192           264           260           244
Syndication fees                                                      1,825         1,411         2,456           767         2,380
Origination fees                                                      2,711         1,160         3,007         2,206         3,005
Loan servicing fees                                                   1,835         1,909         1,711         1,544         1,660
Asset management and advisory fees                                    1,198         1,076         1,011           969         1,040
Distributions from equity investments in partnerships                 1,716         1,831         1,535         1,760           173
Other income                                                          4,221         2,091         1,609           878         1,238
Net gain (loss) on sales                                             (9,033)          951         1,637           207           102
                                                               ------------- ------------- ------------- ------------- -------------
     TOTAL SOURCES OF CASH                                           36,402        35,469        35,826        31,922        33,219
                                                               ------------- ------------- ------------- ------------- -------------
EXPENSES:
Interest expense                                                      8,102         9,839         9,899         8,134         7,900
Salaries and benefits                                                 8,671         5,966         6,475         5,446         5,930
Professional fees                                                       877           989         1,472           884         1,967
General and administrative                                            2,113         1,825         1,880         1,756         1,697
Loan loss expense                                                        47             -             -             -             -
Income tax expense (benefit)                                         (1,524)         (560)         (443)         (173)          345
                                                               ------------- ------------- ------------- ------------- -------------
     TOTAL EXPENSES                                                  18,286        18,059        19,283        16,047        17,839
                                                               ------------- ------------- ------------- ------------- -------------
CASH AVAILABLE FOR DISTRIBUTION                                      18,116        17,410        16,543        15,875        15,380
LESS:
     Cash allocable to preferred shareholders in a
        subsidiary company and term growth shares                     2,995         2,994         2,994         2,994         2,995
                                                               ------------- ------------- ------------- ------------- -------------

CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                            $    15,121   $    14,416   $    13,549   $    12,881   $    12,385
                                                               ============= ============= ============= ============= =============

CAD PER COMMON SHARE                                            $      0.52   $      0.50   $      0.53   $      0.51   $      0.49
                                                               ============= ============= ============= ============= =============

CALCULATION OF CASH DISTRIBUTION:
CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                            $    15,121   $    14,416   $    13,549   $    12,881   $    12,385
                                                               ============= ============= ============= ============= =============

ACTUAL AMOUNT PAID                                              $    12,903   $    12,837   $    11,304   $    11,154   $    11,072
                                                               ============= ============= ============= ============= =============

PAYOUT RATIO                                                          85.3%         89.0%         83.4%         86.6%         89.4%
                                                               ============= ============= ============= ============= =============

COMMON SHARES OUTSTANDING                                        28,832,443    28,846,327    25,546,010    25,349,585    25,308,022
                                                               ============= ============= ============= ============= =============

CASH DISTRIBUTION PER COMMON SHARE                              $    0.4475   $    0.4450   $    0.4425   $    0.4400   $    0.4375
                                                               ============= ============= ============= ============= =============

Note: Certain prior quarter amounts have been reclassified to conform to the 06/30/03 presentation.

     CAD differs from net income  because of variations  between GAAP income and
actual cash received.  There are three primary  differences between CAD and GAAP
income.  The first is the  treatment  of loan  origination  fees,  which for CAD
purposes  are  recognized  as income when  received  but for GAAP  purposes  are
amortized  into income over the life of the  associated  investment.  The second
difference is the non-cash gain and loss  recognized  for GAAP  associated  with
valuations,  sales of  investments  and  capitalization  of  mortgage  servicing
rights,  which are not included in the calculation of CAD. The third  difference
is the treatment of the Company's  investments  in  partnerships.  For GAAP, the
Company records its allocable share of the income (loss) from the partnership as
income,  while for CAD reporting,  the Company records the cash distributions it
receives from the partnership as income. For a reconciliation of GAAP net income
to CAD, see page 10.
     CAD  per  common  share  is  calculated  based  on  the  number  of  shares
outstanding  at the end of each quarter.  For GAAP,  basic earnings per share is
calculated based on the weighted average shares  outstanding  during the period.
The weighted  average shares  outstanding for diluted earnings per share include
the  potential  dilutive  effect  from  the  exercise  of  options,  vesting  of
restricted  shares,  and  provision  for shares to be awarded  under the Midland
acquisition earn out provision.
MUNICIPAL MORTGAGE & EQUITY, LLC
                                              CONDENSED CONSOLIDATED BALANCE SHEETS
                                                         (In thousands)

                                                                                   (unaudited)
                                                                                     June 30,       December 31,
                                                                                      2003             2002
                                                                                ---------------- ---------------
ASSETS:
Investment in tax-exempt bonds and residual interests
    in bond securitizations                                                      $      788,892   $     781,384
Loans receivable, net                                                                   451,397         422,299
Loans receivable held for sale                                                           11,023          39,149
Investments in partnerships                                                              97,688          99,966
Investment in derivative financial instruments                                            3,170          18,762
Cash, cash equivalents and interest receivable                                           98,587          59,902
Other assets                                                                            115,798          97,919
Goodwill                                                                                 33,607          33,537
                                                                                ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                                ================ ===============
LIABILITIES AND EQUITY:
Notes payable                                                                    $      436,949   $     450,924
Short-term debt                                                                         211,670         219,945
Long-term debt                                                                          142,006         147,357
Residual interests in bond securitizations                                                1,343           1,447
Investment in derivative financial instruments                                           21,792          49,359
Other liabilities                                                                        48,150          36,370
Preferred shareholders' and minority interests' equity in subsidiary companies          160,142         160,452
Shareholders' equity                                                                    578,110         487,064
                                                                               ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                               ================ ===============

BOOK VALUE PER COMMON SHARE                                                      $        20.05   $       19.07
                                                                               ================ ===============
MUNICIPAL MORTGAGE & EQUITY, LLC
                                                          2003 INVESTMENTS
                                                           SECOND QUARTER
                                                           (In thousands)

BOND PRODUCTION:                                                                      QUARTER                          YTD
                                                           PERMANENT                 BOND AMOUNT                    PRODUCTION
                                                           INTEREST        ------------------------------  -------------------------
           PROPERTY                CITY        STATE         RATE           CONSTRUCTION     PERMANENT     CONSTRUCTION   PERMANENT
------------------------------- ------------ ---------- ----------------   -------------- ---------------  ------------- -----------
Eden Park of Ironwood (1)       Gainesville     FL          7.200%          $      4,250    $    4,250     $    4,250    $   17,625
Lake Pleasant Village (2)         Peoria        AZ          7.200%                 9,450         9,450         18,800        18,800
Stapleton                         Denver        CO          7.875%                11,000        11,000         11,000        11,000
Woodland Village (3)            Leavenworth     KS          6.950%                 8,160         8,160          8,160         8,160
                                                                           -------------- ---------------  ------------- -----------
TOTAL                                                                       $     32,860    $   32,860     $   42,210    $   55,585
                                                                           ============== ===============  ============= ===========

(1) The Company's initial investment was $0.2 million.  The Company earned a 1.25% origination fee on this deal.
(2) The Company's initial investment was $1.5 million.  The Company earned a 1.25% origination fee on this deal.
(3) The Company's initial investment was $2.8 million.  The Company earned a 1.25% origination fee on this deal.

CONSTRUCTION/PERMANENT LENDING, SYNDICATION AND OTHER PRODUCTION:
                                                                                            TOTAL FEES                   TOTAL FEES
                                                                                            RECOGNIZED                   RECOGNIZED
                                                                               QUARTER     THIS QUARTER       YTD            YTD
                                                                               VOLUME        FOR CAD         VOLUME        FOR CAD
                                                                           -------------- ---------------  -------------------------
Tax Credit Equity Syndications (Equity Raised)                              $     31,318    $    1,825     $   66,637    $    3,236

Tax Credit Lending Production                                               $     65,984    $        -     $   91,757    $        -

Conventional Equity Production                                              $     46,865    $    1,493     $   50,175    $    1,609

Taxable Construction Loan Production (generating a weighted average
  spread of 1.12%)                                                          $     93,986    $      262     $  132,578    $      669

Taxable Permanent Loan Production                                           $    118,379    $    1,751     $  155,572    $    2,314

Supplemental Loans                                                          $      7,660    $      125     $   24,478    $      353

OTHER INFORMATION:
Balance as of 6/30/03 of Midland Servicing Portfolio under Management       $  1,126,819    $    1,068

Balance as of 6/30/03 of Midland Equity Syndication Portfolio under
  Management                                                                $    917,138    $      854
MUNICIPAL MORTGAGE & EQUITY, LLC
                                                     PARTICIPATING BOND PORTFOLIO
                                                     NET OPERATING INCOME - TREND
                                                         As of June 30, 2003

                                                     Q2 2002     Q1 2003    Q2 2003 (2)         Q2 '03/   Q2 '03/
Property                                              Actual      Actual       Actual            Q2 '02    Q1 '03
---------                                            ---------   --------   -----------         --------  --------
Alban (4)                                             268,978     260,814       242,359           -9.9%      -7.1%
Arlington (1)                                               0     -39,943         3,078             N/A        N/A
Barkley Place                                         255,837     331,248       322,958           26.2%      -2.5%
Barrington at Beach Street (1)(3)                      41,853     201,476       275,036          557.1%      36.5%
Cobblestone                                           179,912     147,956       142,040          -21.1%      -4.0%
Cool Springs (1)                                      -54,690      -2,816        98,309             N/A        N/A
Creekside                                             271,875     291,969       281,675            3.6%      -3.5%
Crossings                                             179,332     182,192       164,531           -8.3%      -9.7%
Gilman Meadows                                        158,870     172,281       139,078          -12.5%     -19.3%
Hamilton Grove                                        212,804     173,874       201,481           -5.3%      15.9%
Jefferson Commons                                     513,627     400,144       401,808          -21.8%       0.4%
Lakeview                                              187,987     164,215       179,455           -4.5%       9.3%
Mallard I                                              25,891      38,539        23,398           -9.6%     -39.3%
Mallard II                                             95,771     102,270        96,956            1.2%      -5.2%
Montclair                                             288,782     344,427       379,300           31.3%      10.1%
Newport Village                                       242,984     193,723       215,054          -11.5%      11.0%
Nicollet Ridge                                        362,343     320,571       345,463           -4.7%       7.8%
Palisades Park                                        245,556     245,324       245,127           -0.2%      -0.1%
Riverset I                                            316,555     376,154       372,406           17.6%      -1.0%
Riverset II                                           139,242     162,217       146,790            5.4%      -9.5%
Steeplechase Falls                                    377,633     343,626       391,736            3.7%      14.0%
Meadows                                               129,467     120,149       146,680           13.3%      22.1%
Timber Ridge                                          137,432     129,561       137,329           -0.1%       6.0%
Villas at LaRiviera (3)                               193,778     226,573       223,566           15.4%      -1.3%
Whispering Lake                                       326,079     316,850       337,477            3.5%       6.5%
Winter Oaks                                           282,800     275,783       287,367            1.6%       4.2%
                                                  --------------------------------------     ----------------------
Total                                               5,380,697   5,479,179     5,800,457            7.8%       5.9%

Same Store Growth                                   5,393,534   5,320,462     5,424,035            0.6%       1.9%

(1) In  Lease-up.  Quarterly  totals  are  not  included  in Same  Store  Growth
    calculations.
(2) Q2 2003 uses April and May  actuals  plus the June budget  unless  otherwise
    noted.
(3) Q2 2003 - operating  budget is not  available,  total includes April actuals
    and two times May actual results.
(4) Q2 3003 - includes April actual results plus May and June budget.
Occupancy
                                                                --------------------------------------------------------
                                                                 Month Ended   Month Ended   Month Ended   Month Ended
                                      Month/Year     Apartment     June 30,      March 31,      June 30,      June 30,
       Apartment Community            Acquired        Units         2003          2003           2002          2001
      ---------------------         -------------    ---------- --------------------------------------------------------
Alban Place                                Sep-86          194          96.0%         94.8%          94.8%        97.9%
Cobblestone                                Aug-99          184          95.7%         92.4%          95.1%        94.0%
Creekside Village                          Nov-87          296          98.3%         99.7%          99.3%        99.3%
Crossings                                  Jan-97          200          89.5%         89.0%          95.5%        98.5%
Jefferson Commons                          Dec-00          173          87.9%         87.9%          91.9%        94.8%
Lakeview                                   Sep-87          180          98.9%         96.1%          96.1%        98.9%
Timber Ridge                               Dec-00          168          94.0%         96.4%          97.6%        91.7%
Villas at LaRiviera                        Jun-99          199          80.5%         91.0%          81.5%        92.5%
                                                    -----------
    Subtotal Participating Mortgage Bonds                1,594
                                                    -----------

Mortgage Bonds
Applewood (a.k.a. Paola)                   Jul-99           48          95.8%         93.8%          91.7%        89.6%
Autumn Oaks/Crest at Thousand Oaks         Feb-03          410         100.0%         95.4%            N/A          N/A
Buchanan Bay                               Mar-01          228          86.4%         89.0%          82.0%        90.4%
Charter House (2)                          Dec-96            -            N/A           N/A            N/A          N/A
Cielo Vista                                Aug-99          378          96.3%         90.5%          95.0%        90.2%
Country Club                               Jul-99          101          84.2%         85.1%          90.1%        86.1%
Delta Village                              Jun-99           80          97.5%         95.0%         100.0%        96.3%
Elmbrooke                                  Aug-00           54         100.0%        100.0%         100.0%       100.0%
Florida A&M                                Feb-00           96          57.3%         86.5%          69.8%        91.1%
Gannon (Dade) (3)                          Feb-98          575          96.3%         96.7%          95.5%        95.9%
Gannon (St. Louis)                         Feb-98          336          93.5%         93.2%          92.9%        94.9%
Hidden Valley                              Dec-96           82          91.5%         93.9%          92.7%        93.9%
Honey Creek                                Mar-99          656          89.6%         97.7%          95.1%        97.0%
Hunter's Glen                              Mar-01          383          75.0%           N/A          86.7%        88.0%
Lake Piedmont                              Apr-98          648          92.1%         88.4%          95.2%        83.8%
Monroe (Oakmont, Towne Oak)                Dec-98          364          93.7%         97.5%          98.9%        98.6%
Mountain View (Willowgreen)                Nov-86          241          94.6%         91.3%          98.3%        94.6%
Northridge Park II                         Aug-87          128          99.2%         90.6%          96.9%        98.4%
Oakbrook                                   Dec-96          170          83.5%        100.0%          95.3%        98.2%
Oklahoma City (4)                          Aug-98          774          90.9%         95.3%          91.3%        89.9%
Orangevale                                 Apr-98           64         100.0%         98.4%          98.4%       100.0%
Parkwood                                   Jun-99          180          97.2%         99.4%          97.8%        97.2%
Riverset II (1)                            Jan-96            -            N/A           N/A            N/A          N/A
Riverview                                  Jun-00          228          96.1%         97.8%          50.4%          N/A
Sahuarita                                  Jun-99           52         100.0%         86.5%         100.0%        98.1%
Santa Fe Springs                           Jun-00          310          78.1%         77.1%          91.9%        90.6%
Shadowbrook                                Jun-99          193          95.3%         97.9%          97.4%        94.8%
Silver Springs                             Dec-99          250          92.4%         90.0%          70.0%        44.8%
Southwind                                  Aug-00           88         100.0%        100.0%         100.0%        80.7%
Torries Chase                              Dec-96           99          92.9%         89.9%          92.9%        94.9%
Village Apartments                         May-00          210          95.2%         96.7%          96.2%        81.9%
Village at Stone Mountain                  Oct-97          722          84.9%         88.9%          91.6%        92.7%
Village Green                              Feb-00          200          81.5%         87.0%          86.5%        91.5%
Weatherstone                               Sep-00          100          97.0%         90.0%          91.0%          N/A
Western Hills                              Dec-98           80          75.0%         77.5%          95.0%        97.5%
Willow Key                                 Mar-99          384          95.3%         95.8%          99.5%        99.5%
Woodglen                                   Dec-99          250          79.2%         82.4%          90.8%        85.6%
Woodmark                                   Jun-99          173          97.1%         97.7%          98.3%        97.7%
                                                    -----------
   Subtotal Mortgage Bonds                              9,335
                                                    -----------

Participating Subordinate Mortgage Bonds:
Barkley Place                              May-87          156          95.5%         98.7%          89.7%        92.9%
Gilman Meadows                             Mar-87          125          93.6%         91.2%          90.4%        90.4%
Hamilton Chase                             Feb-87          300          92.7%         91.7%          93.7%        96.0%
Mallard Cove I & II                        Feb-87          198          94.9%         94.4%          90.4%        97.5%
Meadows                                    Jan-88          200          93.0%         91.0%          94.0%        94.5%
Montclair                                  Oct-86          159          93.1%         92.5%          97.5%        97.5%
Newport Village                            Dec-86          220          84.1%         85.5%          94.1%        98.2%
Nicollet Ridge                             Dec-87          339          90.9%         90.6%          92.0%        98.2%
Riverset II                                Jan-96          148          89.0%         90.0%          86.8%        85.6%
Steeplechase                               Oct-88          450          95.1%         94.0%          92.9%        92.2%
Whispering Lake                            Oct-87          384          93.8%         90.4%          93.5%        90.4%
                                                    -----------
   Subtotal Participating Subordinate Mortgage Bonds     2,679
                                                    -----------
Avg. Monthly Rent
                                                                                   Per Apartment Unit
                                                                  -----------------------------------------------------
                                                                       Month          Month        Month       Month
                                                                       Ended          Ended        Ended       Ended
                                      Month/Year     Apartment        May 31,       March 31,     June 30,    June 30,
       Apartment Community             Acquired        Units            2003          2003          2002        2001
      ---------------------           -----------    ----------   -----------------------------------------------------
Participating Mortgage Bonds:
Alban Place                                Sep-86          194               927           923          924        885
Cobblestone                                Aug-99          184               578           581          572        561
Creekside Village                          Nov-87          296               595           591          559        516
Crossings                                  Jan-97          200               754           754          749        730
Jefferson Commons                          Dec-00          173             1,230         1,230        1,361      1,255
Lakeview                                   Sep-87          180               716           715          695        662
Timber Ridge                               Dec-00          168               467           496          464        496
Villas at LaRiviera                        Jun-99          199               709           702          682        626
                                                    -----------
    Subtotal Participating Mortgage Bonds                1,594
                                                    -----------

Mortgage Bonds
Applewood (a.k.a. Paola)                   Jul-99           48               518           518          502        482
Autumn Oaks/Crest at Thousand Oaks         Feb-03          410               493           560          N/A        N/A
Buchanan Bay                               Mar-01          228               717           718          716        675
Charter House (2)                          Dec-96            -               N/A           N/A          N/A        N/A
Cielo Vista                                Aug-99          378               387           391          424        428
Country Club                               Jul-99          101               449           446          438        371
Delta Village                              Jun-99           80               584           587          578        565
Elmbrooke                                  Aug-00           54             1,063         1,062        1,021        716
Florida A&M                                Feb-00           96             1,440         1,374        1,385      1,352
Gannon (Dade) (3)                          Feb-98          575               794           788          748        717
Gannon (St. Louis)                         Feb-98          336               587           586          573        548
Hidden Valley                              Dec-96           82               576           567          552        538
Honey Creek                                Mar-99          656               538           536          560        543
Hunter's Glen                              Mar-01          383               582           583          584        560
Lake Piedmont                              Apr-98          648               494           488          476        460
Monroe (Oakmont, Towne Oak)                Dec-98          364               488           489          482        469
Mountain View (Willowgreen)                Nov-86          241               643           643          628        603
Northridge Park II                         Aug-87          128             1,015         1,007        1,053      1,010
Oakbrook                                   Dec-96          170               462           456          430        446
Oklahoma City (4)                          Aug-98          774               489           485          481        463
Orangevale                                 Apr-98           64               968           968          958        915
Parkwood                                   Jun-99          180               478           475          464        445
Riverset II (1)                            Jan-96            -               N/A           N/A          N/A        N/A
Riverview                                  Jun-00          228               655           657          658        N/A
Sahuarita                                  Jun-99           52               489           422          529        540
Santa Fe Springs                           Jun-00          310               594           587          592        589
Shadowbrook                                Jun-99          193               493           484          484        474
Silver Springs                             Dec-99          250               774           774          809        789
Southwind                                  Aug-00           88               756           727          711        637
Torries Chase                              Dec-96           99               517           515          498        488
Village Apartments                         May-00          210               568           568          568        491
Village at Stone Mountain                  Oct-97          722               761           761          733        710
Village Green                              Feb-00          200               635           643          638        631
Weatherstone                               Sep-00          100               813           800          812        N/A
Western Hills                              Dec-98           80               519           515          502        497
Willow Key                                 Mar-99          384               706           705          655        627
Woodglen                                   Dec-99          250               672           669          641        682
Woodmark                                   Jun-99          173               680           680          680        676
                                                  -------------
    Subtotal Mortgage Bonds                              9,335
                                                  -------------

Participating Subordinate Mortgage Bonds:
Barkley Place                              May-87          156             2,085         2,074        2,068      2,088
Gilman Meadows                             Mar-87          125               998         1,010        1,020      1,017
Hamilton Chase                             Feb-87          300               626           623          613        601
Mallard Cove I & II                        Feb-87          198               714           714          748        728
Meadows                                    Jan-88          200               609           605          611        599
Montclair                                  Oct-86          159             1,830         1,844        1,820      1,834
Newport Village                            Dec-86          220               850           846          839        804
Nicollet Ridge                             Dec-87          339               949           913          942        914
Riverset II                                Jan-96          148               722           711          706        702
Steeplechase                               Oct-88          450               611           609          590        586
Whispering Lake                            Oct-87          384               656           652          639        649
                                                    -----------
   Subtotal Participating Subordinate Mortgage Bonds     2,679
                                                    -----------
Occupancy
                                                                --------------------------------------------------------
                                                                 Month Ended   Month Ended   Month Ended   Month Ended
                                      Month/Year     Apartment     June 30,      March 31,      June 30,      June 30,
       Apartment Community             Acquired        Units         2003          2003           2002          2001
      --------------------            ----------    ----------  --------------------------------------------------------
Subordinate Mortgage Bonds:
CAPREIT                                    Sep-99            -            N/A           N/A            N/A          N/A
Cinnamon Ridge                             Jan-99            -            N/A           N/A            N/A          N/A
Farmington Meadows                         Aug-99           69         100.0%        100.0%         100.0%       100.0%
Independence Ridge                         Aug-96          336          75.0%         69.9%            N/A        80.1%
Locarno                                    Aug-96          110          90.9%         90.9%            N/A        98.2%
Olde English Manor                         Nov-99            -            N/A           N/A            N/A          N/A
Peaks of Conyer                            Sep-01          260          81.2%         85.0%          87.3%          N/A
Rillito Village                            Jul-00            -            N/A           N/A            N/A          N/A
Winter Oaks                                Nov-99          460          92.2%         95.4%          92.0%        91.5%
                                                  -------------
   Subtotal Subordinate Mortgage Bonds                   1,235
                                                  -------------

Other Bond Related Investments:
Briarwood                                  Dec-98          600          98.3%         94.8%          97.5%        97.8%
Cinnamon Ridge                             Dec-97          264          97.3%         92.8%          98.1%        92.4%
Golfside Villas (f.k.a. Club West)         Mar-99          194          99.5%         99.0%          99.5%        99.0%
Park at Landmark                           Sep-00          396          95.7%         94.2%          94.9%       100.0%
Poplar Glen                                Jun-97          191          93.2%         93.7%          95.8%        97.9%
RITES - Charter House                      Dec-96          280          91.4%         89.6%          98.2%        96.4%
RITES - Indian Lakes                       Jul-97          296          84.8%         75.0%          88.5%        93.6%
RITES - LaPaloma                           Apr-99          120          98.3%        100.0%          99.2%        91.7%
RITES - LeMirador (Coleman Senior)         Apr-98          141          83.7%         87.2%          92.9%        97.9%
RITES - Museum Towers                      Apr-01          286          96.2%         93.0%          87.4%        98.3%
RITES - Olde English Manor                 Jun-98          264          79.5%         82.2%          90.5%        95.1%
RITES - Palisades Park                     Feb-98          304          93.8%         96.4%          97.4%        98.4%
RITES - Pavillion                          Apr-99          132         100.0%         99.2%         100.0%       100.0%
RITES - Queen Anne IV                      Jul-98          110          91.8%         82.7%          96.4%       100.0%
RITES - Rancho/Villas                      May-00          417          88.6%         86.6%          92.1%        90.6%
RITES - Rillito Village                    Aug-98          272          91.5%         91.2%          91.2%        88.2%
RITES - Riverset (1)                       Aug-88          352          89.0%         90.0%          86.8%        85.6%
RITES - Riverset II (1)                    Jan-96            -            N/A           N/A            N/A          N/A
RITES - Sienna (a.k.a. Italian Gardens)    Apr-98          140          90.0%         91.4%          83.6%        97.9%
RITES - Sonterra                           May-98          156          87.8%         90.4%          94.2%        90.4%
RITES - Southgate Crossings                Jun-97          215          98.1%         94.0%          97.2%        98.6%
RITES - Southwood                          Nov-97        1,286          72.0%         74.2%          85.6%        85.1%
                                                    -----------
   Subtotal Other Bond Related Investments               6,416
                                                    -----------

    Total Units/Weighted Average Investments            21,259          90.1%         90.7%          92.2%        92.5%
                                                    ===========

Total/Same Stores (5) 2001                              20,261          89.9%         88.9%          90.7%        92.5%
Total/Same Stores (5) 2002                              20,403          90.1%         89.2%          92.2%

Construction/Substantial Rehab Properties and Other Investments
Arlington                                  Dec-00          176          34.1%         31.8%            N/A          N/A
Barrington at Beach Street                 Oct-00          398          65.1%         59.5%          39.2%          N/A
Bedford Park                               Oct-00          312          69.6%         64.1%          75.6%        36.9%
CAPREIT Joint Venture (6)                  Jun-02        6,279          95.6%         94.1%          96.0%          N/A
CAPREIT TERA (7)                           Mar-01        2,942          94.1%         94.1%          93.2%          N/A
Chancellor                                 Nov-01          101            N/A           N/A            N/A          N/A
Chancellor II                              Mar-02           46            N/A           N/A            N/A          N/A
City Views at Rosa Burney Park             Dec-02          180          80.6%           N/A            N/A          N/A
Cliffs at Grove Barton                     Apr-03          132            N/A           N/A            N/A          N/A
Cool Springs                               Aug-00          124          54.8%         53.2%          28.2%          N/A
Coronel Village                            Apr-02           48            N/A           N/A            N/A          N/A
Eden Park                                  May-03          104            N/A           N/A            N/A          N/A
Fort Branch                                Dec-00          250          88.0%         69.2%          19.6%          N/A
Hidden Brooks                              Sep-01          201          76.6%         84.6%          80.6%          N/A
Jefferson at Town Lake                     Dec-02          216            N/A           N/A            N/A          N/A
Lake Pleasant Village                      May-03          152            N/A           N/A            N/A          N/A
Las Trojas                                 Mar-02           49            N/A           N/A            N/A          N/A
Liberty Park Townhomes                     Feb-03          184          64.7%         72.3%            N/A          N/A
Lincoln Corner                             Dec-01          134            N/A           N/A            N/A          N/A
Meridian at Bridgewater                    Nov-99           90          82.2%         81.1%          71.1%        21.1%
Mountain View Village                      Jun-02          220            N/A           N/A            N/A          N/A
North White Road                           Nov-01          157            N/A           N/A            N/A          N/A
Oak Grove Commons                          Dec-01          168          23.8%           N/A            N/A          N/A
Olathe Senior Residences                   Dec-02          144            N/A           N/A            N/A          N/A
Osborne Place Manor                        Dec-02           50            N/A           N/A            N/A          N/A
Penn Valley                                Dec-01           42            N/A           N/A            N/A          N/A
Sanger Trails                              Dec-02          208            N/A           N/A            N/A          N/A
Sycamore Senior Village                    Jun-02          300            N/A           N/A            N/A          N/A
Village at Sun Valley                      May-00          276          85.9%         89.1%          60.1%          N/A
Walnut Tree                                Mar-02           64            N/A           N/A            N/A          N/A
Woodland Village                           May-03          198            N/A           N/A            N/A          N/A
                                                    -----------
  Subtotal Construction/Rehab Properties                13,945
                                                    -----------

       Total Units                                      35,204
                                                    ===========
Avg. Monthly Rent
                                                                                   Per Apartment Unit
                                                                  -----------------------------------------------------
                                                                       Month          Month        Month       Month
                                                                       Ended          Ended        Ended       Ended
                                      Month/Year     Apartment         May 31,       March 31,     June 30,    June 30,
       Apartment Community             Acquired        Units            2003          2003          2002        2001
      --------------------            -----------    ----------   -----------------------------------------------------
Subordinate Mortgage Bonds:
CAPREIT                                    Sep-99            -               N/A           N/A          N/A        N/A
Cinnamon Ridge                             Jan-99            -               N/A           N/A          N/A        N/A
Farmington Meadows                         Aug-99           69               814           814          814        814
Independence Ridge                         Aug-96          336               555           554          551        541
Locarno                                    Aug-96          110               898           891          877        851
Olde English Manor                         Nov-99            -               N/A           N/A          N/A        N/A
Peaks of Conyer                            Sep-01          260               737           737          738        N/A
Rillito Village                            Jul-00            -               N/A           N/A          N/A        N/A
Winter Oaks                                Nov-99          460               558           557          554        541
                                                  -------------
   Subtotal Subordinate Mortgage Bonds                   1,235
                                                  -------------

Other Bond Related Investments:
Briarwood                                  Dec-98          600               639           633          603        584
Cinnamon Ridge                             Dec-97          264               952           938          917        905
Golfside Villas (f.k.a. Club West)         Mar-99          194               618           617          618        571
Park at Landmark                           Sep-00          396             1,075         1,081        1,066        992
Poplar Glen                                Jun-97          191               988           974          938        901
RITES - Charter House                      Dec-96          280               625           625          619        607
RITES - Indian Lakes                       Jul-97          296               781           790          785        755
RITES - LaPaloma                           Apr-99          120               652           654          619        609
RITES - LeMirador (Coleman Senior)         Apr-98          141               855           835          871        772
RITES - Museum Towers                      Apr-01          286             1,355         1,342        1,367      1,327
RITES - Olde English Manor                 Jun-98          264               496           494          479        469
RITES - Palisades Park                     Feb-98          304               560           555          545        515
RITES - Pavillion                          Apr-99          132               673           667          675        653
RITES - Queen Anne IV                      Jul-98          110             1,102         1,108        1,094      1,039
RITES - Rancho/Villas                      May-00          417               498           476          487        483
RITES - Rillito Village                    Aug-98          272               469           463          440        453
RITES - Riverset (1)                       Aug-88          352               710           705          693        695
RITES - Riverset II (1)                    Jan-96         ----               N/A           N/A          N/A        N/A
RITES - Sienna (a.k.a. Italian Gardens)    Apr-98          140               813           811          857        743
RITES - Sonterra                           May-98          156               869           863          847        864
RITES - Southgate Crossings                Jun-97          215             1,005           992          981        912
RITES - Southwood                          Nov-97        1,286               498           496          492        484
                                                  -------------
   Subtotal Other Bond Related Investments               6,416
                                                  -------------

    Total Units/Weighted Average Investments            21,259               686           696          696        659
                                                  =============

Total/Same Stores (5) 2001                              20,261               689           686          680        659
Total/Same Stores (5) 2002                              20,403               705           701          696

Construction/Substantial Rehab Properties and Other Investments
Arlington                                  Dec-00          176             1,389         1,388          N/A        N/A
Barrington at Beach Street                 Oct-00          398               778           803          847        N/A
Bedford Park                               Oct-00          312               532           530          547        489
CAPREIT Joint Venture (6)                  Jun-02        6,279               748           751          739        N/A
CAPREIT TERA (7)                           Mar-01        2,942               606           608          630        N/A
Chancellor                                 Nov-01          101               N/A           N/A          N/A        N/A
Chancellor II                              Mar-02           46               N/A           N/A          N/A        N/A
City Views at Rosa Burney Park             Dec-02          180               560           N/A          N/A        N/A
Cliffs at Grove Barton                     Apr-03          132               N/A           N/A          N/A        N/A
Cool Springs                               Aug-00          124             1,938         1,919        1,947        N/A
Coronel Village                            Apr-02           48               N/A           N/A          N/A        N/A
Eden Park                                  May-03          104               N/A           N/A          N/A        N/A
Fort Branch                                Dec-00          250               735           738          830        N/A
Hidden Brooks                              Sep-01          201             1,050         1,026        1,057        N/A
Jefferson at Town Lake                     Dec-02          216               N/A           N/A          N/A        N/A
Lake Pleasant Village                      May-03          152               N/A           N/A          N/A        N/A
Las Trojas                                 Mar-02           49               N/A           N/A          N/A        N/A
Liberty Park Townhomes                     Feb-03          184               492           490          N/A        N/A
Lincoln Corner                             Dec-01          134               N/A           N/A          N/A        N/A
Meridian at Bridgewater                    Nov-99           90               N/A           N/A        3,496      3,465
Mountain View Village                      Jun-02          220               N/A           N/A          N/A        N/A
North White Road                           Nov-01          157               N/A           N/A          N/A        N/A
Oak Grove Commons                          Dec-01          168               N/A           N/A          N/A        N/A
Olathe Senior Residences                   Dec-02          144               N/A           N/A          N/A        N/A
Osborne Place Manor                        Dec-02           50               N/A           N/A          N/A        N/A
Penn Valley                                Dec-01           42               N/A           N/A          N/A        N/A
Sanger Trails                              Dec-02          208               N/A           N/A          N/A        N/A
Sycamore Senior Village                    Jun-02          300               N/A           N/A          N/A        N/A
Village at Sun Valley                      May-00          276               684           684          681        N/A
Walnut Tree                                Mar-02           64               N/A           N/A          N/A        N/A
Woodland Village                           May-03          198               N/A           N/A          N/A        N/A
                                                  -------------
  Subtotal Construction/Rehab Properties                13,945
                                                  -------------

       Total Units                                      35,204
                                                  =============

(1) The Company owns a participating bond, a participating  subordinate bond and
    a RITES interest collateralized by the Riverset property.
(2) The  Company   owns  a   non-participating   bond  and  a  RITES   interest
    collateralized by the Charter House property.
(3) The Dade Gannon Portfolio represents three properties.
(4) The Oklahoma City Portfolio represents three properties.
(5) Same Store includes only properties reporting for all three quarters.
(6) CAPREIT Joint Venture represents twenty properties (not included  previously
    in CAPREIT Portfolio).
(7) The CAPREIT TERA Portfolio represents eleven properties.
MUNICIPAL MORTGAGE & EQUITY, LLC
        CONFERENCE CALL SCRIPT - COMBINED TAX CREDIT EQUITY BUSINESS
                    FOR THE YEAR ENDED DECEMBER 31, 2003

* OVERALL ACCRETION/DILUTION FOR 2003:

          * For CAD purposes, the acquisition of the HCI business is expected to
          generate an  additional  three to five (5) cents per common  share for
          the  remainder  of 2003.  For  2004,  we think  the  acquisition  will
          generate  twice as much  accretion  as the high end of the  range  for
          second half of 2003.

          * In the past we have not provided  any  guidance  for GAAP  earnings.
          However,  under  the new  rules  effective  the end of Q1,  we are now
          required to reconcile any non-GAAP measurements to GAAP. At this time,
          we anticipate  that the  acquisition  will be 15 to 20 cents per share
          dilutive  to  basic  earnings  per  share.  After  reviewing  the main
          business components of the acquisition,  we will review in more detail
          the differences between CAD and GAAP.

          * Lumpiness - with the addition of the fee generating business,  we're
          confident  that the earnings are  available  to us.  However,  we will
          probably   see  more   variability   in  quarterly   earnings.   We're
          anticipating  stronger second and fourth quarters and weaker first and
          third quarters on a relative basis.

          * Continue to believe  the  tax-exempt  percentage  will be in the mid
          80's  but is  still  subject  to  further  review  and  refinement  of
          financing options.

*  REVENUES:  We now will walk  through how we  primarily  earn money in the tax
credit equity business. There are two main parts:

          * Syndication Fees; in addition some portion of this business is based
          on a  guarantee  format,  therefore,  guarantee  fee  revenue
          * Asset Management Fees, which are like servicing fees

      Production:
          *  Combined   syndication   equity  raise  for  fiscal  year  2003  is
          anticipated to be $425M to $450M
          * Our previous  estimates for MEC total  syndication  equity raise was
          $200M to $250M
          * Increase in production almost doubles previous outlook
          * Reflecting the integration of our equity  syndication  business,  we
          will no  longer  distinguish  between  MEC  and  HCI;  all  forecasted
          production reflects integrated business.
          *  Overall  production  goal:  HCI  production  goals  are  considered
          additive to legacy MEC production  goals because of minimal overlap in
          developer clients and minimal overlap in investors.
          * Overall fund syndication fees percentage expected to be about 4%, up
          slightly from legacy MEC.

      Other Revenues:
          * As a result of  combined  business,  total tax  credit  equity  fund
          assets are  expected  to grow to  approximately  $4 billion  from $685
          million by  year-end  2003,  earning 30 to 35 bps in asset  management
          fees.
          * Other  miscellaneous  revenues  associated  with  the  new  combined
          business include guarantee fee premiums  (approximately $1M for second
          half of 2003),  revenues associated with investment valuation services
          performed  by  HCI  personnel,   and  other   miscellaneous   revenues
          approximating $3.6M for the second half of 2003.

* EXPENSES:

          * Operating  expenses - total operating  expenses  associated with the
          addition of the HCI  business  are  expected to run about $14M for the
          second  half  of  2003.  [This  includes  incentive  bonuses  for  all
          production personnel and staff of approximately $3.5M.]
          * Interest  expense  associated  with  warehousing  and  bridging  not
          absorbed  by the  funds is  expected  to go up due to an  increase  in
          property acquisition production and timing of placement activity.

* FINANCING  ASSUMPTIONS  (subject to further  review and  refinement and future
market conditions) associated with financing the acquisition are as follows:

          * RBC  Line of  Credit  for  $120M  to  cover  purchase  price,  costs
          associated with the acquisition and initial working capital needs
          * $120M at Libor plus 290 bps beginning 7/1/03
          * $75M of Line is taken out with  taxable  trust  preferred  equity at
          8.75% for total raise of $77.4M in fourth quarter
          * Remaining $45M taken out in early 2004 with common equity

* PRIMARY CAD TO GAAP DIFFERENCES:

          * For GAAP purposes,  the net assets of all  guaranteed  funds will be
          consolidated into the balance sheet of MMA. As a result, all guarantee
          fee premiums  associated with these funds will not be reflected in the
          net income of MMA. These premiums will be booked for CAD.
          * Asset  management  fees  receivable  associated with the acquisition
          will not be reflected in the GAAP net income of MMA. In addition,  any
          asset  management  fees  collected  on  guaranteed  funds  will not be
          recognized for GAAP purposes due to the  consolidation  of these funds
          discussed  above.  For CAD  purposes,  asset  management  fees will be
          recognized to the extent of cash received. For 2003, approximately 1/2
          of  the  total  fees   collected  for  CAD  relate  to  the  purchased
          receivable.
          * The  amortization of the  capitalized  portion of the acquired asset
          management contracts will be reflected in GAAP net income of MMA. This
          non-cash  charge does not affect CAD or the cash flow  generated  from
          the operations of the business.
          * NOTE:  There are several other identified  differences  between GAAP
          and CAD.  However,  at this time, these differences are expected to be
          immaterial.  As a result,  the impacts of these  differences  have not
          been reflected in the forecasted numbers discussed above. Further note
          is that the audits of the HCI unit in accordance with US GAAP have not
          been  completed  as of  today.  They  will be  completed  and filed in
          September 2003 along with the Form 8K. As a result, there may be other
          CAD and GAAP adjustments in addition to the ones previously discussed.
SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                     MUNICIPAL MORTGAGE & EQUITY, LLC

Date:  July 17, 2003               By:    /s/ William S. Harrison
                                       -------------------------------------
                                       Name:    William S. Harrison
                                       Title:   SVP and Chief Financial Officer
Exhibit 99.2
------------

INFORMATION FOR RELEASE

                 MuniMae Reports 2003 Second Quarter Results
            26th Consecutive Increase in Distribution to Common Shares

BALTIMORE (July 17, 2003) - Municipal  Mortgage & Equity, LLC (NYSE: MMA), known
as MuniMae,  reported net income allocated to common shares of $30.6 million for
the quarter ended June 30, 2003, compared to $2.9 million for the same period in
2002.  Diluted earnings per share were $1.05 for the quarter,  compared to $0.11
for the same period in 2002.

Cash Available for  Distribution  ("CAD"),  the primary measure of the Company's
distribution  paying ability,  increased 18% for the quarter ended June 30, 2003
compared to the same period in 2002. CAD per common share  increased 6% compared
to the same  period  in  2002.  The  Board of  Directors  raised  the  quarterly
distribution to common shares to $0.4475, an increase of 2% over the same period
in 2002.

Mark K.  Joseph,  Chairman of the Board and CEO of MuniMae,  commented,  "We are
pleased to  announce  the 26th  consecutive  increase  to our  dividend.  We are
pleased  with our second  quarter  performance  as well.  MuniMae  continues  to
diversify  its product  base,  and as announced  previously,  has  purchased the
Housing  and  Community   Investing   (HCI)  unit  of  Lend  Lease  Real  Estate
Investments, formerly known as Boston Financial Group. HCI is a market leader in
the  syndication  of  low-income  housing tax credits and we expect their strong
franchise to contribute  meaningfully to our continuing  efforts to increase our
cash available for distribution, or CAD, and shareholder value."

Mr. Joseph added,  "During the second  quarter,  the Company also  experienced a
significant  increase  in GAAP  earnings  due to the sale of a bond.  For CAD, a
large portion of the income  generated by the sale of the bond was offset by the
Company's sale of certain  interest rate swaps.  However,  because of a previous
GAAP  write-off of a portion of this bond,  the GAAP net income  resulting  from
these two transactions was significantly greater than the CAD net income."

Summary Results - GAAP
----------------------
The table below summarizes the Company's  results for the second quarter of 2003
and the prior-year period:

                                                                                     Second Quarter
                                                                          -------------------------------------
                                                                          2003           2002           Change
Net Income to Common Shares from Continuing
 Operations ($ millions)                                                  $4.8           $2.9           66%
Per Share Results from Continuing Operations
   Basic ($)                                                              $0.17          $0.12          42%
   Diluted ($)                                                            $0.16          $0.11          45%
Net Income to Common Shares  ($ millions)                                 $30.6          $2.9           NM
Per Share Results
   Basic ($)                                                              $1.06          $0.12          NM
   Diluted ($)                                                            $1.05          $0.11          NM
The attached  condensed  consolidated  statements  of income  represent the GAAP
results of operations of the Company for the three- and six-month  periods ended
June 30, 2003 and 2002.

Summary Results - CAD
---------------------
For the second  quarter of 2003,  CAD was $18.1 million and CAD to common shares
was $15.1  million.  The 2003 second  quarter per share  distribution  to common
shareholders of $0.4475  represents a payout ratio of 85%. (The Company uses CAD
as the primary  performance  measure and believes it to be illustrative  for its
distribution-paying  ability.  CAD differs from net income because of variations
between GAAP income and actual cash received.  These variations are described in
the note to the attached calculation of CAD statement.)

                                                                         Second Quarter
                                                       ------------------------------------------------
                                                         2003              2002               Change
Total CAD ($ millions)                                  $18.1             $15.4               18%
CAD to Common ($ millions)                              $15.1             $12.4               22%
CAD per Common Share ($)                                $0.52             $0.49                6%
A reconciliation of GAAP net income to CAD to common shares is attached.

Second Quarter Distribution
---------------------------
MuniMae's  second  quarter   distribution  to  common  shareholders  of  $0.4475
annualizes  to $1.79 per share.  Based on  yesterday's  closing  share  price of
$25.63,  MuniMae common shares have an annualized  yield to  shareholders of 7%.
Based on the  assumption  that the  Company's  income is 85% exempt from Federal
income tax,  absent the impact of capital  gains and assuming a 35% tax bracket,
the taxable  equivalent  yield would be 10.2%. The record date for the quarterly
distribution is July 28, and the payment date is August 8.

About Municipal Mortgage & Equity
---------------------------------
MuniMae and its subsidiaries originate,  service and asset manage investments in
multifamily  debt and equity for its own account and on behalf of others.  As of
June 30, 2003,  assets  under  management  totaled  $3.7 billion  secured by 933
properties  containing 96,168 units in 48 states and the U.S. Virgin Islands. As
of  July  1,  2003,  at the  completion  of the HCI  acquisition,  assets  under
management  totaled $7.5 billion  representing  approximately  2,044  properties
containing 218,144 units. For its proprietary accounts,  MuniMae primarily holds
tax-exempt  multifamily  housing  bonds.  This  on-balance  sheet  portfolio  of
tax-exempt  bonds is secured by 148  properties  containing  35,204  units in 28
states. For a portion of these bonds, MuniMae participates in the performance of
the underlying properties.

MuniMae is organized  as a limited  liability  company.  This  structure  allows
MuniMae  to  combine   the  limited   liability,   governance   and   management
characteristics  of a corporation  with the  pass-through  income  features of a
partnership. As a result, the tax-exempt income derived from certain investments
remains  tax-exempt  when  passed  through  to  shareholders.  Distributions  to
shareholders  are  declared  quarterly  and paid in  February,  May,  August and
November.

The  calculation  of  Cash  Available  for  Distribution  is the  basis  for the
determination of the Company's quarterly distributions to common shares, is used
by  securities  analysts,  and is  presented  as a  supplemental  measure of the
Company's  performance.  The  calculation  is not approved by the Securities and
Exchange  Commission  nor is it required by GAAP and should not be considered as
an  alternative  to  net  income  as an  indicator  of the  Company's  operating
performance or as an  alternative  to cash flows as a measure of liquidity.  The
Company  believes  that  Cash  Available  for  Distribution   provides  relevant
information  about its operations and is necessary,  along with net income,  for
understanding its operating results.

This press release  contains  statements which are forward looking in nature and
reflect  management's  current views with respect to future events and financial
performance.  These statements are subject to many  uncertainties  and risks and
should not be considered  guarantees of future  performance.  This press release
does not  constitute  an offer to sell any  securities  of Municipal  Mortgage &
Equity, LLC.

Actual results may vary materially  from projected  results based on a number of
factors,   including  the  actual  performance  of  the  properties  pledged  as
collateral  for the  portfolio,  general  conditions  in the local  real  estate
markets in which the properties are located and prevailing interest rates.

      MUNIMAE: TAX-EXEMPT DISTRIBUTIONS AND GROWTH THROUGH REAL ESTATE
                   www.munimaemidland.com / www.mmafin.com

Contacts

Investor Relations:
    Angela Richardson, 888/788-3863
MUNICIPAL MORTGAGE & EQUITY, LLC
                                          CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (In thousands, except share and per share data)
                                                         (unaudited)

                                                                         For the three months ended     For the six months ended
                                                                                 June 30,                        June 30,
                                                                       -----------------------------   -----------------------------
                                                                          2003            2002            2003            2002
                                                                       -------------  --------------   -------------  --------------
INCOME:
Interest income
     Interest on bonds and residual interests in bond securitizations  $     13,929    $     15,399     $    29,914    $     30,561
     Interest on loans                                                        7,563           8,594          17,066          17,024
     Interest on short-term investments                                         332             244             524             731
                                                                       -------------  --------------   -------------  --------------
        Total interest income                                                21,824          24,237          47,504          48,316
                                                                       -------------  --------------   -------------  --------------
Fee income
     Syndication fees                                                         1,825           2,380           3,236           3,998
     Origination fees                                                         2,219           1,505           2,917           2,594
     Loan servicing fees                                                      1,838           1,660           3,747           3,568
     Asset management and advisory fees                                       1,198           1,040           2,274           1,907
     Other income                                                             3,309           1,259           5,506           2,404
                                                                       -------------  --------------   -------------  --------------
        Total fee income                                                     10,389           7,844          17,680          14,471
                                                                       -------------  --------------   -------------  --------------
Net gain on sales                                                             1,453             703           2,731           2,869
                                                                       -------------  --------------   -------------  --------------
Total income                                                                 33,666          32,784          67,915          65,656
                                                                       -------------  --------------   -------------  --------------
EXPENSES:
Interest expense                                                              8,724           8,487          19,092          17,459
Salaries and benefits                                                         8,671           5,930          14,637          10,757
General and administrative                                                    2,113           1,697           3,938           3,423
Professional fees                                                               877           1,967           1,866           2,604
Amortization of mortgage servicing rights and other intangibles                 414             333             803             651
                                                                       -------------  --------------   -------------  --------------
Total expenses                                                               20,799          18,414          40,336          34,894
                                                                       -------------  --------------   -------------  --------------
Net holding gains (losses) on derivatives                                    (2,449)         (7,721)            424          (4,609)
Impairments and valuation allowances related to investments                  (1,144)              -          (1,144)           (110)
Net gains (losses) from equity investments in partnerships                   (2,157)             94          (2,904)           (229)
Income tax benefit (expense)                                                    540            (828)            472          (1,859)
Income allocable to preferred shareholders and minority interests in
     subsidiary companies                                                    (2,854)         (2,995)         (5,679)         (5,989)
                                                                       -------------  --------------   -------------  --------------
Net income from continuing operations                                         4,803           2,920          18,748          17,966
Discontinued operations                                                      25,748               -          25,748               -
                                                                       -------------  --------------   -------------  --------------
Net Income                                                             $     30,551    $      2,920     $    44,496    $     17,966
                                                                       =============  ==============   =============  ==============
LESS:
     Net income allocable to term growth shares                                   -               -               -             153
                                                                       -------------  --------------   -------------  --------------
Net income allocated to common shares                                  $     30,551    $      2,920     $    44,496    $     17,813
                                                                       =============  ==============   =============  ==============

EARNINGS PER COMMON SHARE:
Basic earnings per common share:
     Net income from continuing operations                             $       0.17    $       0.12     $      0.67    $       0.73
     Discontinued operations                                                   0.89               -            0.91               -
                                                                       -------------  --------------   -------------  --------------
     Basic earnings per common share                                   $       1.06    $       0.12     $      1.58    $       0.73
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          28,857,305      25,252,124      28,104,281      24,423,091
Diluted earnings per common share:
     Net income from continuing operations                             $       0.16    $       0.11     $      0.66    $       0.71
     Discontinued operations                                                   0.89               -            0.90               -
                                                                       -------------  --------------   -------------  --------------
     Diluted earnings per common share                                 $       1.05    $       0.11     $      1.56    $       0.71
                                                                       =============  ==============   =============  ==============
     Weighted average common shares outstanding                          29,213,062      25,835,808      28,451,480      25,022,631
MUNICIPAL MORTGAGE & EQUITY, LLC
                                     RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
                                                             (In thousands)
                                                              (unaudited)

                                                                 For the three months ended     For the six months ended
                                                                           June 30,                      June 30,
                                                                 ----------------------------  ----------------------------
                                                                     2003           2002           2003           2002
                                                                 -------------  -------------  -------------  -------------
INCOME:
Interest income
   Interest on bonds and residual interests in bond
     securitizations                                              $    13,929    $    15,399    $    29,914    $    30,561
   Interest on loans                                                    7,563          8,594         17,066         17,024
   Interest on short-term investments                                     332            244            524            731
                                                                 -------------  -------------  -------------  -------------
      Total interest income                                            21,824         24,237         47,504         48,316
                                                                 -------------  -------------  -------------  -------------
Fee income
   Syndication fees                                                     1,825          2,380          3,236          3,998
   Origination fees                                                     2,219          1,505          2,917          2,594
   Loan servicing fees                                                  1,838          1,660          3,747          3,568
   Asset management and advisory fees                                   1,198          1,040          2,274          1,907
   Other income                                                         3,309          1,259          5,506          2,404
                                                                 -------------  -------------  -------------  -------------
      Total fee income                                                 10,389          7,844         17,680         14,471
                                                                 -------------  -------------  -------------  -------------
Net gain on sales                                                       1,453            703          2,731          2,869
                                                                 -------------  -------------  -------------  -------------
Total income                                                           33,666         32,784         67,915         65,656
                                                                 -------------  -------------  -------------  -------------
EXPENSES:
Interest expense                                                        8,724          8,487         19,092         17,459
Salaries and benefits                                                   8,671          5,930         14,637         10,757
General and administrative                                              2,113          1,697          3,938          3,423
Professional fees                                                         877          1,967          1,866          2,604
Amortization of mortgage servicing rights and other intangibles           414            333            803            651
                                                                 -------------  -------------  -------------  -------------
Total expenses                                                         20,799         18,414         40,336         34,894
                                                                 -------------  -------------  -------------  -------------
Net holding gains (losses) on derivatives                              (2,449)        (7,721)           424         (4,609)
Impairments and valuation allowances related to investments            (1,144)             -         (1,144)          (110)
Net gains (losses) from equity investments in partnerships             (2,157)            94         (2,904)          (229)
Income tax benefit (expense)                                              540           (828)           472         (1,859)
Income allocable to preferred shareholders and minority interests
   in subsidiary companies                                             (2,854)        (2,995)        (5,679)        (5,989)
                                                                 -------------  -------------  -------------  -------------
Net income from continuing operations                                   4,803          2,920         18,748         17,966
Discontinued operations                                                25,748              -         25,748              -
                                                                 -------------  -------------  -------------  -------------
Net income                                                        $    30,551    $     2,920    $    44,496    $    17,966
                                                                 =============  =============  =============  =============
LESS:
   Net income allocable to term growth shares                               -              -              -            153
                                                                 -------------  -------------  -------------  -------------
Net income allocated to common shares - GAAP Basis                $    30,551    $     2,920    $    44,496    $    17,813
                                                                 =============  =============  =============  =============
Conversion to Cash Available for Distribution:
   (1)Mark to market adjustments                                  $     2,449    $     7,721    $      (424)   $     4,609
   (2)Equity investments                                                3,732             79          6,142            519
   (3)Net gain on sales                                               (10,486)          (601)       (10,813)        (2,727)
   (3)Amortization of capitalized mortgage servicing fees                 414            333            766            651
   (4)Origination fees and other income, net                            1,335          1,450          1,616          2,123
   (5)Valuation allowances and other-than-temporary impairments         1,097              -          1,097            110
   (6)Deferred tax expense                                                984            483          1,612          1,100
   (7)Discontinued operations                                         (25,748)             -        (25,748)             -
   (7)Interest income                                                  10,793              -         10,793              -
                                                                 -------------  -------------  -------------  -------------
Cash Available for Distribution (CAD)                             $    15,121    $    12,385    $    29,537    $    24,198
                                                                 =============  =============  =============  =============

Notes
-----
(1) For GAAP reporting, the Company records the non-cash change in fair value of
its investment in interest rate swaps and other derivative financial instruments
through  net income.  These  non-cash  gains and losses are not  included in the
Company's calculation of CAD.
(2) For  GAAP  reporting,  the  Company  accounts  for  various  investments  in
partnerships  using the equity  accounting  method.  As a result,  the Company's
allocable  share of the  income or loss from the  partnerships  is  reported  in
income (losses) from equity  investments in partnerships.  The income from these
partnerships  includes  depreciation  expense  and  changes in the fair value of
investments in derivatives.  For GAAP reporting,  distributions are treated as a
return of capital. For CAD reporting, the Company records the cash distributions
it receives from the partnerships as other income. In addition, a portion of the
income or loss from partnerships is reduced by a minority interest for both GAAP
and CAD.
(3) For GAAP  reporting,  the  Company  recognizes  non-cash  gains  and  losses
associated  with the sale of  assets or  capitalization  of  mortgage  servicing
rights.  The capitalized  mortgage  servicing  rights are amortized into expense
over the  estimated  life of the  serviced  loans.  The  non-cash  gains and the
associated amortization expense are not included in CAD.
(4)  Origination  fees and certain other income amounts are recognized as income
when received for CAD purposes,  but for GAAP reporting these items are deferred
and  amortized  into income  over the life of the  associated  investment.  This
adjustment represents the net difference,  for the relevant period, between fees
taken into income when  received for CAD and the  amortization  of fees recorded
for GAAP.
(5)  For  GAAP  reporting,   the  Company  records   valuation   allowances  and
other-than-temporary  impairments on its  investments in loans,  bonds and other
bond-related  investments.  Such  non-cash  charges  do not affect the cash flow
generated  from the operation of the  underlying  properties,  distributions  to
shareholders, or the tax-exempt status of the income of the financial obligation
under the bonds.  Therefore,  these items are not included in the calculation of
CAD.
(6) For GAAP reporting, the Company's income tax expense contains both a current
and a deferred  component.  Only the  Company's  current  income tax  expense is
reflected in CAD.
(7) For  GAAP  reporting,  the  Company  recognized  a gain  upon  the sale of a
property.  This gain was required to be  classified as  discontinued  operations
because the Company owned the property prior to the sale. For CAD reporting, the
gain was  significantly  less due to  recording  a portion  of the  proceeds  as
interest  income.  In  addition,  the  carrying  value  of the  tax-exempt  bond
associated with the property was significantly more for CAD due to an impairment
previously recognized for GAAP.
MUNICIPAL MORTGAGE & EQUITY, LLC
                                        CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
                                                        (Unaudited)
                                        (In thousands, except share and per share data)

                                                                           For the three months ended      For the six months ended
                                                                                   June 30,                        June 30,
                                                                          ----------------------------   ---------------------------
                                                                             2003           2002             2003           2002
                                                                          ------------  --------------   -------------  ------------
SOURCES OF CASH:
Interest on bonds, residual interests in bond securitizations and loans   $    31,597    $   23,377       $   56,445     $   46,340
Interest on short-term investments                                                332           244              524            731
Syndication fees                                                                1,825         2,380            3,236          3,998
Origination fees                                                                2,711         3,005            3,871          4,513
Loan servicing fees                                                             1,835         1,660            3,744          3,568
Asset management and advisory fees                                              1,198         1,040            2,274          1,907
Distributions from equity investments in partnerships                           1,716           173            3,547            290
Other income                                                                    4,221         1,238            6,312          2,584
Net gain (loss) on sales                                                       (9,033)          102           (8,082)           142
                                                                          ------------  --------------   -------------  ------------
TOTAL SOURCES OF CASH                                                          36,402        33,219           71,871         64,073
                                                                          ------------  --------------   -------------  ------------
EXPENSES:
Interest expense                                                                8,102         7,900           17,941         16,190
Salaries and benefits                                                           8,671         5,930           14,637         10,757
Professional fees                                                                 877         1,967            1,866          2,604
General and administrative                                                      2,113         1,697            3,938          3,423
Loan loss expense                                                                  47             -               47              -
Income tax expense (benefit)                                                   (1,524)          345           (2,084)           759
                                                                          ------------  --------------   -------------  ------------
TOTAL EXPENSES                                                                 18,286        17,839           36,345         33,733
                                                                          ------------  --------------   -------------  ------------

CASH AVAILABLE FOR DISTRIBUTION                                                18,116        15,380           35,526         30,340
                                                                          ------------  --------------   -------------  ------------

LESS:
Cash allocable to preferred shareholders and term growth shares,
including preferred shareholders in a subsidiary company                        2,995         2,995            5,989          6,142
                                                                          ------------  --------------   -------------  ------------

 CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES                         $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

CAD PER COMMON SHARE                                                      $      0.52    $     0.49       $     1.02     $     0.96
                                                                          ============  ==============   =============  ============

CALCULATION OF CASH DISTRIBUTION:

CASH AVAILABLE FOR DISTRIBUTION
    TO COMMON SHARES                                                      $    15,121    $   12,385       $   29,537     $   24,198
                                                                          ============  ==============   =============  ============

ACTUAL AMOUNT PAID                                                        $    12,903    $   11,072       $   25,740     $   22,040
                                                                          ============  ==============   =============  ============

PAYOUT RATIO                                                                     85.3%         89.4%            87.3%          91.1%
                                                                          ============  ==============   =============  ============

COMMON SHARES OUTSTANDING                                                  28,832,443    25,308,022
                                                                          ============  ==============

CASH DISTRIBUTION PER COMMON SHARE                                        $    0.4475    $   0.4375       $   0.8925     $   0.8725
                                                                          ============  ==============   =============  ============

     The primary  differences  between Net Income as calculated  under generally
accepted  accounting  principles  ("GAAP") and Cash  Available For  Distribution
("CAD")  result from the timing of income and expense  recognition  and non-cash
events.  These differences  between CAD and GAAP income include the treatment of
loan  origination  fees, which for CAD purposes are recognized when received but
for  GAAP  purposes  are  amortized  over the life of the  associated  loan.  In
addition,  there are differences related to non-cash gains and losses associated
with bond  valuations  and  sales,  non-cash  gains and losses  associated  with
changes in market value of derivative  financial  instruments,  amortization  of
goodwill and intangibles and capitalization of mortgage servicing rights, net of
deferred taxes for GAAP purposes,  which are not included in the  calculation of
CAD.
     The common shares outstanding  reported for Cash Available for Distribution
are the actual  shares  outstanding  at the end of the  quarter.  For GAAP,  the
weighted average shares outstanding during the period are reported for the basic
net income per share  calculation.  The weighted average shares  outstanding for
diluted net income per share  include  the  potential  dilutive  effect from the
exercise of options,  vesting of restricted shares,  conversion of the preferred
shares and provision for shares to be awarded under the Midland acquisition earn
out provision.
MUNICIPAL MORTGAGE & EQUITY, LLC
                                              CONDENSED CONSOLIDATED BALANCE SHEETS
                                                         (In thousands)

                                                                                   (unaudited)
                                                                                     June 30,       December 31,
                                                                                      2003             2002
                                                                                ---------------- ---------------
ASSETS:
Investment in tax-exempt bonds and residual interests
    in bond securitizations                                                      $      788,892   $     781,384
Loans receivable, net                                                                   451,397         422,299
Loans receivable held for sale                                                           11,023          39,149
Investments in partnerships                                                              97,688          99,966
Investment in derivative financial instruments                                            3,170          18,762
Cash, cash equivalents and interest receivable                                           98,587          59,902
Other assets                                                                            115,798          97,919
Goodwill                                                                                 33,607          33,537
                                                                                ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                                ================ ===============
LIABILITIES AND EQUITY:
Notes payable                                                                    $      436,949   $     450,924
Short-term debt                                                                         211,670         219,945
Long-term debt                                                                          142,006         147,357
Residual interests in bond securitizations                                                1,343           1,447
Investment in derivative financial instruments                                           21,792          49,359
Other liabilities                                                                        48,150          36,370
Preferred shareholders' and minority interests' equity in subsidiary companies          160,142         160,452
Shareholders' equity                                                                    578,110         487,064
                                                                               ---------------- ---------------
TOTAL                                                                            $    1,600,162   $   1,552,918
                                                                               ================ ===============
Exhibit 99.3
------------

INFORMATION FOR RELEASE

          MuniMae Structures $399 Million of Multifamily Financing

           And Raises $38 Million in Capital During Second Quarter

BALTIMORE (July 17, 2003) -- Municipal  Mortgage & Equity, LLC (NYSE: MMA) known
as MuniMae,  announced  today that it  structured  $399 million of financing for
multifamily housing during the second quarter of 2003. In addition,  the Company
raised $38 million in tax credit equity.

Mark K.  Joseph,  Chairman of the Board and CEO of MuniMae,  commented,  "We are
very  pleased with the second  quarter  production  activity.  As is usually the
case,  our  production  volumes  tend to increase as the year goes on because of
cyclical issues unique to affordable housing. With the recent purchase of HCI, a
market  leader  in   syndication   of  low  income  housing  tax  credit  equity
investments,  and our existing  pipeline showing healthy growth,  we expect that
our production will be stronger for the second half of the year. We look forward
to the opportunity of servicing our clients as a one stop financing source."

Investment Activity Summary
---------------------------
Highlights of second quarter and year-to-date origination activity include:

                                                                   Second Quarter                Year-to-Date
                                                                Volume (in millions)         Volume (in millions)
Taxable Construction/Permanent Lending                                 $212.4                       $288.2
Tax-exempt Bonds Construction/Permanent                                  65.7                         97.8
Supplemental Loans                                                        7.7                         24.5
Equity Investments                                                      112.8                        141.9
Total                                                                  $398.6                       $552.4
Capital Activity Summary
------------------------
In the second  quarter of 2003,  the Company  raised $38.7 million of tax credit
equity from five third-party investors, bringing the year-to-date total to $74.0
million in equity raised.

About Municipal Mortgage & Equity
---------------------------------
MuniMae and its subsidiaries originate,  service and asset manage investments in
multifamily  debt and equity for its own account and on behalf of others.  As of
June 30, 2003,  assets  under  management  totaled  $3.7 billion  secured by 933
properties  containing 96,168 units in 48 states and the U.S. Virgin Islands. As
of  July  1,  2003,  at the  completion  of the HCI  acquisition,  assets  under
management  totaled $7.5 billion  representing  approximately  2,044  properties
containing 218,144 units. For its proprietary accounts,  MuniMae primarily holds
tax-exempt  multifamily  housing  bonds.  This  on-balance  sheet  portfolio  of
tax-exempt  bonds is secured by 148  properties  containing  35,204  units in 28
states. For a portion of these bonds, MuniMae participates in the performance of
the underlying properties.

MuniMae is organized as a limited liability company,  which makes it exempt from
tax at the corporate level and provides the benefit of corporate governance.  In
addition,  the Company passes through to its shareholders  primarily  tax-exempt
dividends,  which are generated by its municipal bond investments.  Dividends to
shareholders  are  declared  quarterly  and paid in  February,  May,  August and
November.

This press release  contains  statements which are forward looking in nature and
reflect  management's  current views with respect to future events and financial
performance.  These statements are subject to many  uncertainties  and risks and
should not be considered  guarantees of future  performance.  Actual results may
vary materially from projected  results based on a number of factors,  including
the  actual  performance  of  the  properties  pledged  as  collateral  for  the
portfolio,  general  conditions  in the local real  estate  markets in which the
properties are located and prevailing interest rates.

       MUNIMAE: TAX-EXEMPT DISTRIBUTIONS AND GROWTH THROUGH REAL ESTATE

                    www.munimaemidland.com / www.mmafin.com

Contacts

Investor Relations
Angela Richardson, 888/788-3863