--------------------------------------------------------------------------------



                                  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 AND EXCHANGE ACT OF 1934

        DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 9, 2006


--------------------------------------------------------------------------------




                                   CHARTERMAC
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)


--------------------------------------------------------------------------------




                                    DELAWARE
                 (STATE OR OTHER JURISDICTION OF INCORPORATION)


        1-13237                                         13-3949418
(COMMISSION FILE NUMBER)                    (IRS EMPLOYER IDENTIFICATION NUMBER)


                     625 MADISON AVENUE, NEW YORK, NY 10022
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 317-5700

                                 NOT APPLICABLE
          (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT


--------------------------------------------------------------------------------




Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)


[ ]  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)


[ ]  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))


[ ]  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))



--------------------------------------------------------------------------------


<PAGE>



--------------------------------------------------------------------------------



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
           ---------------------------------------------

On August 9, 2006,  CharterMac  (the  "Company")  (NYSE:  CHC)  released a press
release  announcing its financial  results for the second quarter and six months
ended June 30,  2006.  A copy of this press  release is attached to this Current
Report as Exhibit 99.1 and incorporated herein by reference.

The  information  included in this Current  Report,  including  the  information
included in Exhibit 99.1 attached hereto,  is intended to be furnished  pursuant
to "Item 2.02.  Disclosure of Results of Operations and Financial Condition" and
not deemed to be "filed" for purposes of Section 18 of the  Securities  Exchange
Act of 1934, as amended (the "Exchange  Act"),  or  incorporated by reference in
any filing under the  Securities Act of 1933, as amended  ("Securities  Act") or
the Exchange  Act, or otherwise  subject to the  liabilities  of that Section or
Sections 11 and 12 (a) (2) of the Securities Act.

ITEM 9.01. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
           ------------------------------------------------------------------

(a).  Financial Statements
      --------------------

Not Applicable

(b).  Pro Forma Financial Information
      -------------------------------

Not Applicable

(c).  Exhibits
      --------

99.1 Press  Release dated August 9, 2006,  "CharterMac  Reports  Second  Quarter
Financial Results For 2006".


<PAGE>



--------------------------------------------------------------------------------



                                   SIGNATURES

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


                                                     CharterMac
                                                     (Registrant)

                                                     BY: /s/ Marc D. Schnitzer
                                                         ---------------------
                                                         Marc D. Schnitzer
                                                         Chief Executive Officer


August 9, 2006


<PAGE>



AT THE COMPANY
--------------
Brenda Abuaf, Corporate Communications
(800) 831-4826


               CHARTERMAC REPORTS SECOND QUARTER FINANCIAL RESULTS


NEW YORK, NY - AUGUST 9, 2006 - CharterMac  (the  "Company")  (NYSE:  CHC) today
announced financial results for the second quarter and six months ended June 30,
2006.

"CharterMac  had two  significant  events  occur in the second  quarter of 2006,
including  the  launch  of our  credit  intermediation  subsidiary,  Centerbrook
Financial LLC  ("Centerbrook"),  and the announcement of our pending acquisition
of ARCap  Investors LLC  ("ARCap"),"  said Marc D.  Schnitzer,  Chief  Executive
Officer and President of CharterMac. "While both of these events are expected to
contribute  to Cash  Available  for  Distribution  ("CAD")  in 2007,  there were
several  significant costs associated with these  transactions that impacted our
financial  results in the second quarter.  Importantly,  both  transactions will
result in  significant  cost savings to the Company  going  forward,  as well as
position the Company for stable growth in 2007 and beyond.  Our core  businesses
performed as we had expected in the second  quarter,  and we believe we are well
positioned to have a strong finish to the year."

FINANCIAL HIGHLIGHTS

CharterMac  reported total revenues of approximately $79.2 million for the three
months  ended June 30,  2006.  Adjusted  to exclude  the impact of  consolidated
partnerships,  as  discussed  on the third  page of this  press  release,  total
revenues  were  approximately  $86.5  million,  which  represents an increase of
approximately  1.2% as compared to similarly  adjusted revenues of approximately
$85.5 million for the three months ended June 30, 2005. For the six months ended
June 30, 2006,  CharterMac's total revenues were  approximately  $151.4 million.
Adjusted  to exclude the impact of  consolidated  partnerships,  total  adjusted
revenues  for the six  months  ended  June 30,  2006 were  approximately  $163.1
million,  which  represents  an increase of  approximately  11.3% as compared to
similarly  adjusted revenues of approximately  $146.5 million for the six months
ended June 30, 2005.

For the three  months  ended  June 30,  2006,  CharterMac  earned  net income of
approximately  $4.2  million,  representing  a decrease  of 78.2% as compared to
approximately  $19.4  million for the three  months  ended June 30,  2005.  On a
diluted per share  basis,  net income was $0.05 for the three  months ended June
30,  2006,  representing  a decrease of 84.8% as compared to $0.33 for the three
months ended June 30, 2005.

A significant portion of the decrease in net income was due to the following:

     (i)  start-up costs associated with Centerbrook;
     (ii) restructuring  and  severance  costs  associated  with  the  Company's
          pending  acquisition  of ARCap and with the transfer of the  Company's
          loan servicing  operation to Dallas, TX. As a result of this transfer,
          the Company  believes  that it will save between $2.5 million and $3.0
          million per year in operating costs beginning in 2007;
     (iii) termination  fees paid to third party credit  providers,  incremental
          interest  costs  and  the  write-off  of  deferred   financing   costs
          associated  with the  re-securitization  of $804 million of CharterMac
          multifamily revenue bonds by Centerbrook. While there were significant
          fees associated with the launch of  Centerbrook,  CharterMac  believes
          that  Centerbrook will enable the Company to lower its cost of capital
          going   forward.   Specifically,   with   respect   to   the   initial
          re-securitization  transaction,  the  Company  was paying  third party
          credit providers 47.9 basis points in credit intermediation fees on an
          annual   basis  and  will  now  capture  38%  of  those  fees  through
          Centerbrook, resulting in $1.5 million of annual savings;
     (iv) a  decrease  in the level of equity  invested  by our Fund  Management
          business due to the timing of the closing of investment funds; and
     (v)  increased interest expense.


<PAGE>



For the six  months  ended  June 30,  2006,  CharterMac  earned  net  income  of
approximately  $18.9  million,  representing  a decrease of 44.8% as compared to
approximately $34.2 million for the six months ended June 30, 2005. On a diluted
per share  basis,  net income was $0.28 for the six months  ended June 30, 2006,
representing a decrease of 52.5% as compared to approximately  $0.59 for the six
months ended June 30, 2005.

Similar to Net Income,  Cash Available for  Distribution  ("CAD"),  CharterMac's
primary  performance  measure,  was impacted by many of the same costs described
above.  For  the  three  months  ended  June  30,  2006,  CharterMac's  CAD  was
approximately  $23.9  million,  representing  a decrease of 37.6% as compared to
approximately  $38.4  million for the three  months  ended June 30,  2005.  On a
diluted per share basis, CAD was $0.41 for the three months ended June 30, 2006,
representing  a decrease  of 37.9% as compared  to  approximately  $0.66 for the
three  months  ended  June 30,  2005.  For the six months  ended June 30,  2006,
CharterMac's  CAD was  approximately  $39.2 million,  representing a decrease of
28.1% as compared to  approximately  $54.5 million for the six months ended June
30, 2005.  On a diluted per share basis,  CAD was $0.66 for the six months ended
June 30, 2006,  representing a decrease of 29.8% as compared to CAD of $0.94 for
the six months ended June 30, 2005.

Incremental  costs for the second quarter and six months ended June 30, 2006, as
discussed  on the first  page of this  press  release  related  to the launch of
Centerbrook  and the pending  acquisition  of ARCap (the  majority of which were
recorded in the second quarter) were as follows:

<TABLE>
<CAPTION>

     (In thousands)                                                         Three Months Ended    Six Months Ended
                                                                              June 30, 2006        June 30, 2006
                                                                            ------------------    ----------------
<S>                                                                              <C>                 <C>
     Centerbrook start-up costs                                                  $  3,758            $  4,313
     Restructuring costs in anticipation of ARCap acquisition                       1,995               1,995
     Restructuring of securitization programs - incremental interest expense        1,915               1,915
     Restructuring of securitization programs - termination fee                     1,420               1,420
     Restructuring of securitization programs - write-off of deferred costs         3,398               3,398
                                                                                 --------            --------
                                                                                   12,486              13,041
     Tax effect                                                                      (752)               (863)
                                                                                 --------            --------
     Net incremental costs                                                       $ 11,734            $ 12,178
                                                                                 ========            ========

Impact on Net Income (per Diluted share)                                         $   0.20            $   0.21
                                                                                 ========            ========
Impact on CAD (per Diluted share)                                                $   0.14            $   0.15
                                                                                 ========            ========

</TABLE>

The  following is a summary of our second  quarter and six months ended June 30,
2006 production volume for each of CharterMac's business lines:

FUND MANAGEMENT

         Tax Credit Equity
         -----------------

During the three months ended June 30, 2006, CharterMac's subsidiary, CharterMac
Capital,  raised  tax  credit  equity  totaling  approximately  $308.1  million,
bringing  total tax  credit  equity  raised  for the first six months of 2006 to
approximately $369.0 million. Of the $369.0 million, approximately $57.4 million
was raised through credit  intermediated  funds in which the investors receive a
specified rate of return.

In addition,  CharterMac  Capital,  on behalf of investment  funds,  made equity
investments in tax credit properties totaling  approximately  $278.6 million and
$399.1 million during the second quarter and for the first six months ended June
30, 2006, respectively.


<PAGE>



         AMAC
         ----

American Mortgage  Acceptance Company ("AMAC")  (AMEX:AMC),  the publicly traded
mortgage REIT that CharterMac  advises,  originated ten first mortgage loans and
subordinated  notes,  totaling  over $151  million  in the second  quarter.  The
originations  were sourced through the Company's  mortgage  banking  subsidiary,
CharterMac Mortgage Capital.

MORTGAGE BANKING
----------------

During  the  three  months  ended  June  30,  2006,  the  Company's  subsidiary,
CharterMac  Mortgage Capital,  originated  approximately  $458 million of loans,
including  over $151  million of loans for AMAC and $306.8  million of loans for
Fannie Mae,  Freddie Mac and conduits.  Originations for the first six months of
2006 totaled $739.2 million,  which is a 67.6% increase over total  originations
for the first six months of 2005.

Of the $739.2 million,  approximately $41 million were commercial mortgage loans
for office and retail  properties,  marking an expansion of our business  beyond
our traditional multifamily originations.

As of June 30, 2006,  CharterMac Mortgage Capital's loan servicing portfolio had
an outstanding principal balance of approximately $9.2 billion.

PORTFOLIO INVESTING
-------------------

During  the three  months  ended June 30,  2006,  CharterMac  acquired  mortgage
revenue bonds  totaling  approximately  $95.5  million in par value,  secured by
affordable  multifamily  properties  aggregating  1,349 units,  bringing the six
month total to approximately $136.0 million.

As of June 30, 2006,  CharterMac  had  ownership  interests in mortgage  revenue
bonds  with a fair  value of  approximately  $2.6  billion,  secured  by  54,418
multifamily  units in 30 states and the District of  Columbia.  As of that date,
the mortgage  revenue bond  portfolio  had a weighted  average  interest rate of
6.7%,  a  weighted  average  maturity  of  34  years,  and  a  weighted  average
pre-payment lockout of 12 years.

CENTERBROOK FINANCIAL LLC
-------------------------

During June 2006,  CharterMac  announced the launch of Centerbrook,  marking the
culmination of CharterMac's partnership with IXIS Capital Markets North America,
Inc.  Centerbrook  plans to provide credit  intermediation  products,  including
credit default swaps, to the affordable  housing finance industry.  Concurrently
with the launch,  Centerbrook completed its first transaction,  providing a pool
of credit default swaps in connection with the re-securitization of $804 million
of CharterMac's  existing multifamily revenue bonds.  Subsequent to quarter end,
Centerbrook  completed  an  additional  re-securitization  of  $175  million  of
CharterMac's existing multifamily revenue bonds.

SHARE REPURCHASE PLAN
---------------------

During the second  quarter of 2006, in  connection  with  CharterMac's  existing
program to repurchase 1,500,000 of our common shares, the Company entered into a
10b5-1  trading plan to  facilitate  the purchases of shares under this program.
Including  purchases  subsequent  to the  quarter  end,  CharterMac  repurchased
748,800 of the Company's  common shares through open market  purchases using the
plan.


<PAGE>



CONSOLIDATED PARTNERSHIPS
-------------------------

As previously  reported,  CharterMac's  earnings  results include the results of
partnerships  consolidated  pursuant to FASB Interpretation 46 ( R ), as well as
other  partnerships  we  control,  but in  which  we have  little  or no  equity
interest.  As CharterMac has virtually no equity interest in these partnerships,
the net losses they generated were allocated almost entirely to their investors.
The  consolidation,  therefore,  has an  insignificant  impact  on  net  income,
although  certain  CharterMac  revenues  are  eliminated  in  consolidation  and
revenues  and expenses of the  consolidated  partnerships  are  reflected in the
income statement.

MANAGEMENT CONFERENCE CALL
--------------------------

Management  will conduct a conference  call today at 11:00 a.m.  Eastern Time to
review the Company's second quarter  financial results for the period ended June
30,  2006.  Callers  will  be  invited  to ask  questions.  Investors,  brokers,
analysts,  and shareholders  wishing to participate should call 800-967-7141.  A
webcast of the  presentation  will be available live and can be accessed through
the Company's website, http://www.chartermac.com.  To listen to the presentation
via webcast, please go to the website's "Investor Relations" section at least 15
minutes  prior to the  start of the  presentation.  For  interested  individuals
unable to join the  conference  call,  a replay  of the call  will be  available
through Sunday,  August 13, 2006, at 888-203-1112  (Passcode  2964501) or on our
website, through Wednesday, September 6, 2006.

SUPPLEMENTAL FINANCIAL INFORMATION
----------------------------------

For  more  detailed  financial  information,   please  access  the  Supplemental
Financial  Package,  which is available in the Investor Relations section of the
CharterMac website at www.chartermac.com.

ABOUT THE COMPANY
-----------------

CharterMac,   through  its   subsidiaries,   is  one  of  the  nation's  leading
full-service real estate finance companies.  CharterMac offers capital solutions
to  developers  and owners of  properties  throughout  the  country  and quality
investment products to institutional and retail investors. For more information,
please visit CharterMac's  website at  http://www.chartermac.com  or contact the
Investor Relations Department directly at 800-831-4826.


<PAGE>



                           CHARTERMAC AND SUBSIDIARIES
                             SELECTED FINANCIAL DATA
                    (In thousands, except per share amounts)

<TABLE>
<CAPTION>


                                                               June 30,     December 31,
                                                                 2006           2005
                                                              ----------    ------------
                                                             (Unaudited)
<S>                                                           <C>            <C>
Revenue bonds - at fair value                                 $2,413,949     $2,294,787
                                                              ----------     ----------
Net addition to assets from consolidation of partnerships     $3,518,378     $3,365,685
                                                              ----------     ----------
Total assets                                                  $7,303,740     $6,978,828
                                                              ----------     ----------

Liabilities:
  Financing arrangements                                      $1,600,778     $1,429,692
                                                              ----------     ----------
  Preferred shares of subsidiary (subject to mandatory
   repurchase)                                                $  273,500     $  273,500
                                                              ----------     ----------
  Notes payable                                               $  408,337     $  304,888
                                                              ----------     ----------
  Liabilities of consolidated partnerships                    $1,365,076     $1,627,556
                                                              ----------     ----------

Total liabilities                                             $3,812,371     $3,814,911
                                                              ----------     ----------

Minority interests in subsidiaries                            $  253,191     $  262,274
                                                              ----------     ----------
Preferred shares of subsidiary (not subject to mandatory
  repurchase)                                                 $  104,000     $  104,000
                                                              ----------     ----------
Partners' interests in consolidated partnerships              $2,156,653     $1,747,808
                                                              ----------     ----------

Total shareholders' equity                                    $  977,525     $1,049,835
                                                              ----------     ----------

</TABLE>
<TABLE>
<CAPTION>

                                                      ==============================================================================
                                                                                   Three Months Ended
                                                                                        June 30,
                                                      ------------------------------------------------------------------------------
                                                                       2006                                     2005
                                                      -------------------------------------   --------------------------------------
                                                                                       (Unaudited)
                                                          As                        As            As                        As
                                                       Reported  Adjustments(1) Adjusted(1)    Reported  Adjustments(1)  Adjusted(1)
                                                      ---------  -------------- -----------   ---------  --------------  -----------
<S>                                                   <C>           <C>         <C>           <C>           <C>          <C>
Total revenues                                        $  79,231     $  7,293    $  86,524     $  78,480     $   6,996    $  85,476

Interest expense                                        (28,810)          --      (28,810)      (19,076)           --      (19,076)
General and administrative                              (39,861)          --      (39,861)      (33,068)           --      (33,068)
Depreciation and amortization                           (14,615)          --      (14,615)       (9,469)           --       (9,469)
Loss on impairment of assets                             (2,271)          --       (2,271)       (1,098)           --       (1,098)
Expenses and equity losses of consolidated
  partnerships                                          (99,799)      99,799           --       (86,374)       86,374           --
Equity and other income                                   3,548           (2)       3,546           552            --          552
Gain on sale of loans and repayment of
  revenue bonds                                           2,538           --        2,538         5,229            --        5,229

Income allocated to preferred shareholders
   and minority interests                                (3,208)          --       (3,208)       (9,437)           --       (9,437)

Loss allocated to partners of consolidated
  partnerships                                          107,090     (107,090)          --        93,370       (93,370)          --
                                                                    --------    ---------     ---------     ---------    ---------

Income before income taxes                                3,843           --        3,843        19,109            --       19,109

Income tax benefit                                          405           --          405           335            --          335
                                                                                                            ---------    ---------

Net income                                            $   4,248     $     --    $   4,248     $  19,444     $      --    $  19,444
                                                                    ========    =========     =========     =========    =========

  4.4% CRA Preferred dividend requirements               (1,188)          --       (1,188)           --            --           --
                                                      ---------     --------    ---------     ---------     ---------    ---------

Net income available to common and CRA
  shareholders                                        $   3,060     $     --    $   3,060     $  19,444     $      --    $  19,444
                                                      =========     ========    =========     =========     =========    =========

Net income per share:
   Basic                                              $    0.05     $     --    $    0.05     $    0.34     $      --    $    0.34
                                                                    ========    =========     =========     =========    =========
   Diluted                                            $    0.05     $     --    $    0.05     $    0.33     $      --    $    0.33
                                                                    ========    =========     =========     =========    =========

Weighted average shares outstanding:
   Basic                                                 58,639           --       58,639        57,890            --       57,890
                                                      =========     ========    =========     =========     =========    =========
   Diluted                                               58,919           --       58,919        58,274            --       58,274
                                                      =========     ========    =========     =========     =========    =========

</TABLE>


<PAGE>



                           CHARTERMAC AND SUBSIDIARIES
                             SELECTED FINANCIAL DATA
                    (In thousands, except per share amounts)

<TABLE>
<CAPTION>
                                              ==============================================================================
                                                                             Six Months Ended
                                                                                June 30,
                                              ------------------------------------------------------------------------------
                                                               2006                                     2005
                                              -------------------------------------   --------------------------------------
                                                                               (Unaudited)
                                                  As                        As            As                        As
                                               Reported  Adjustments(1) Adjusted(1)    Reported  Adjustments(1)  Adjusted(1)
                                              ---------  -------------- -----------   ---------  --------------  -----------
<S>                                           <C>           <C>          <C>          <C>          <C>           <C>

Total revenues                                $ 151,370     $  11,701    $ 163,071    $ 136,426    $  10,084     $ 146,510

Interest expense                                (50,642)           --      (50,642)     (34,380)          --       (34,380)
General and administrative                      (72,427)           --      (72,427)     (59,280)          --       (59,280)
Depreciation and amortization                   (23,528)           --      (23,528)     (17,165)          --       (17,165)
Loss on impairment of assets                     (2,271)           --       (2,271)      (1,098)          --        (1,098)
Expenses and equity losses of consolidated
  partnerships                                 (184,175)      184,175           --     (154,249)     154,249            --
Equity and other income                           4,058            (5)       4,053        1,076           --         1,076
Gain on sale of loans and repayment of
  revenue bonds                                   7,968            --        7,968        6,924           --         6,924

Income allocated to preferred shareholders
  and minority interests                        (10,643)           --      (10,643)     (17,058)          --       (17,058)

Loss allocated to partners of consolidated
  partnerships                                  195,871      (195,871)          --      164,333     (164,333)           --
                                              ---------     ---------    ---------    ---------    ---------     ---------

Income before income taxes                       15,581            --       15,581       25,529           --        25,529

Income tax benefit                                3,324            --        3,324        8,700           --         8,700
                                              ---------     ---------    ---------    ---------    ---------     ---------

Net income                                    $  18,905     $      --    $  18,905    $  34,229    $      --     $  34,229
                                              =========     =========    =========    =========    =========     =========

  4.4% CRA Preferred dividend requirements       (2,376)           --       (2,376)          --           --            --
                                              ---------     ---------    ---------    ---------    ---------     ---------

Net income available to shareholders          $  16,529     $      --    $  16,529    $  34,229    $      --     $  34,229
                                              =========     =========    =========    =========    =========     =========

Net income per share:
   Basic                                      $    0.28     $      --    $    0.28    $    0.59    $      --     $    0.59
                                              =========     =========    =========    =========    =========     =========
   Diluted                                    $    0.28     $      --    $    0.28    $    0.59    $      --     $    0.59
                                              =========     =========    =========    =========    =========     =========

Weighted average shares outstanding:
   Basic                                         58,609            --       58,609       57,856           --        57,856
                                              =========     =========    =========    =========    =========     =========
   Diluted                                       58,961            --       58,961       58,271           --        58,271
                                              =========     =========    =========    =========    =========     =========

</TABLE>

   Reconciliation of Net Income to Cash Available for Distribution ("CAD")(2)
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                 =====================
                                                                  Three Months Ended
                                                                        June 30,
                                                                 ---------------------
                                                                   2006         2005
                                                                 ---------------------
<S>                                                              <C>          <C>
Net Income                                                       $  4,248     $ 19,444
4.4% CRA Preferred dividends                                       (1,188)          --
Mortgage revenue bond yield adjustments                               468         (360)
Fees deferred for GAAP                                             10,574       14,292
Depreciation and amortization expense                              14,615        9,469
Gain on sale of loans                                              (2,190)      (5,012)
Tax adjustment                                                        187       (1,116)
Non-cash compensation                                               1,061        1,576
Difference between subsidiary equity distributions and income
  allocated to subsidiary equity holders                           (7,209)        (779)
Loss on impairment of assets                                        2,271        1,098
Other, net                                                          1,112         (208)
                                                                 --------     --------
CAD                                                              $ 23,949     $ 38,404
                                                                 ========     ========

</TABLE>


<PAGE>



   Reconciliation of Net Income to Cash Available for Distribution ("CAD")(2)
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                 =====================
                                                                    Six Months Ended
                                                                        June 30,
                                                                 ---------------------
                                                                   2006         2005
                                                                 ---------------------
<S>                                                              <C>          <C>

Net Income                                                       $ 18,905     $ 34,229
4.4% CRA Preferred dividends                                       (2,376)          --
Mortgage revenue bond yield adjustments                               631         (850)
Fees deferred for GAAP                                              9,420       18,722
Depreciation and amortization expense                              23,528       17,165
Gain on sale of loans                                              (6,813)      (6,649)
Tax adjustment                                                        219       (9,481)
Non-cash compensation                                               3,413        3,534
Difference between subsidiary equity distributions and income
    allocated to subsidiary equity holders                        (10,234)      (3,354)
Loss on impairment of assets                                        2,271        1,098
Other, net                                                            240          127
                                                                 --------     --------
CAD                                                              $ 39,204     $ 54,541
                                                                 ========     ========

</TABLE>

(1) As previously reported, CharterMac's earnings results include the results of
partnerships  consolidated  pursuant to FASB Interpretation 46 ( R ), as well as
other  partnerships  we  control,  but in  which  we have  little  or no  equity
interest.  As CharterMac has virtually no equity interest in these partnerships,
the net  losses  generated  by them  were  allocated  almost  entirely  to their
investors.  The  consolidation,  therefore,  has an insignificant  impact on net
income, although certain CharterMac revenues are eliminated in consolidation and
revenues  and expenses of the  consolidated  partnerships  are  reflected in the
income  statement.  The adjusted  figures  presented are not in accordance  with
generally  accepted  accounting  principles  ("GAAP") but are  presented for the
purpose of comparability..

(2) CharterMac believes that Cash Available for Distribution  ("CAD") is helpful
to  investors  in  measuring  the  performance  of our  Company  that  it is the
performance measure used by our chief decision-maker to allocate resources among
our segments.  CAD  represents  net income  (computed in accordance  with GAAP),
adjusted for:

     o    Cash fees and other revenues  received but deferred in accordance with
          GAAP.  Fees  recognized  for CAD but  deferred  for GAAP  purposes are
          generally  earned over a period of time in connection  with certain of
          our product lines,  such as fund  sponsorship  and credit  enhancement
          fees.
     o    The effect of straight line revenue  recognition of interest income on
          revenue bonds with fixed changes in interest rates.
     o    Depreciation and amortization.
     o    Non-cash  gains  recognized on sale of mortgage  loans when  servicing
          rights are retained.
     o    Losses on sales of loans or repayment of revenue bonds.
     o    Impairment losses.
     o    The portion of tax  benefit or  provision  that is not  expected to be
          realized in cash.
     o    Non-cash compensation expenses.
     o    The  difference  between  earnings  allocated to Subsidiary  Equity in
          accordance with GAAP and distributions to holders of that equity.

There is no generally accepted  methodology for computing CAD, and the Company's
computation of CAD may not be comparable to CAD reported by other companies. CAD
does not  represent  net cash  provided by operating  activities  determined  in
accordance  with GAAP and  should not be  considered  as an  alternative  to net
income  (determined  in accordance  with GAAP) as an indication of the Company's
performance,  as an alternative  to net cash provided from operating  activities
(determined  in accordance  with GAAP) as a measure of our  liquidity,  or as an
indication of our ability to make cash distributions.


<PAGE>



                                       ###


CERTAIN  STATEMENTS IN THIS DOCUMENT MAY CONSTITUTE  FORWARD-LOOKING  STATEMENTS
WITHIN THE MEANING OF THE "SAFE  HARBOR"  PROVISIONS  OF THE PRIVATE  SECURITIES
LITIGATION  REFORM  ACT OF 1995.  THESE  STATEMENTS  ARE  BASED ON  MANAGEMENT'S
CURRENT  EXPECTATIONS  AND  BELIEFS  AND ARE  SUBJECT TO A NUMBER OF FACTORS AND
UNCERTAINTIES  THAT COULD CAUSE ACTUAL RESULTS TO DIFFER  MATERIALLY  FROM THOSE
DESCRIBED IN THE FORWARD-LOOKING  STATEMENTS.  THESE RISKS AND UNCERTAINTIES ARE
DETAILED IN CHARTERMAC'S MOST RECENT ANNUAL REPORT ON FORM 10-K AND IN ITS OTHER
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION,  AND INCLUDE, AMONG OTHERS,
ADVERSE  CHANGES IN THE REAL  ESTATE  MARKETS  INCLUDING,  AMONG  OTHER  THINGS,
COMPETITION WITH OTHER COMPANIES;  INTEREST RATE FLUCTUATIONS;  GENERAL ECONOMIC
AND BUSINESS CONDITIONS, WHICH WILL, AMONG OTHER THINGS, AFFECT THE AVAILABILITY
AND CREDIT  WORTHINESS  OF  PROSPECTIVE  TENANTS,  LEASE RENTS AND THE TERMS AND
AVAILABILITY OF FINANCING FOR PROPERTIES  FINANCED BY MORTGAGE  REVENUE BONDS WE
OWN;   ENVIRONMENT/SAFETY   REQUIREMENTS;   CHANGES  IN   APPLICABLE   LAWS  AND
REGULATIONS;  OUR TAX TREATMENT,  THE TAX TREATMENT OF OUR  SUBSIDIARIES AND THE
TAX TREATMENT OF OUR INVESTMENTS;  RISK OF DEFAULT  ASSOCIATED WITH THE MORTGAGE
REVENUE  BONDS  AND  OTHER  SECURITIES  HELD  BY US OR OUR  SUBSIDIARIES;  RISKS
ASSOCIATED  WITH PROVIDING  CREDIT  INTERMEDIATION;  RISK OF LOSS UNDER MORTGAGE
BANKING LOSS SHARING AGREEMENTS;  THE RISK THAT RELATIONSHIPS WITH KEY INVESTORS
AND  DEVELOPERS  MAY NOT  CONTINUE;  OUR ABILITY TO GENERATE  FEE INCOME MAY NOT
CONTINUE;  AND  RISKS  RELATED  TO THE  FORM  AND  STRUCTURE  OF  OUR  FINANCING
ARRANGEMENTS.. SUCH FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS
DOCUMENT.  CHARTERMAC  EXPRESSLY  DISCLAIMS  ANY  OBLIGATION OR  UNDERTAKING  TO
RELEASE  PUBLICLY  ANY UPDATES OR REVISIONS  TO ANY  FORWARD-LOOKING  STATEMENTS
CONTAINED HEREIN TO REFLECT ANY CHANGE IN CHARTERMAC'S  EXPECTATIONS WITH REGARD
THERETO  OR CHANGE IN EVENTS,  CONDITIONS,  OR  CIRCUMSTANCES  ON WHICH ANY SUCH
STATEMENT IS BASED.


                                       ###
[{"type": "8-K", "sequence": "1", "filename": "f8k_june2006-charter.txt", "description": "CHARTERMAC JUNE 2006 PRESS RELEASE", "secsgml_size_bytes": 41892}]
{"company-data": {"conformed-name": "CHARTERMAC", "cik": "0001043325", "assigned-sic": "6500", "irs-number": "133916825", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-13237", "film-number": "061015139"}, "business-address": {"street1": "625 MADISON AVENUE", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "2124215333"}, "mail-address": {"street1": "625 MADISON AVENUE", "city": "NEW YORK", "state": "NY", "zip": "10022"}, "former-company": {"former-conformed-name": "CHARTER MUNICIPAL MORTGAGE ACCEPTANCE CO", "date-changed": "19970801"}}
--------------------------------------------------------------------------------

                                  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 AND EXCHANGE ACT OF 1934

        DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 9, 2006

--------------------------------------------------------------------------------

                                   CHARTERMAC
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

--------------------------------------------------------------------------------

                                    DELAWARE
                 (STATE OR OTHER JURISDICTION OF INCORPORATION)

        1-13237                                         13-3949418
(COMMISSION FILE NUMBER)                    (IRS EMPLOYER IDENTIFICATION NUMBER)

                     625 MADISON AVENUE, NEW YORK, NY 10022
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 317-5700

                                 NOT APPLICABLE
          (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT

--------------------------------------------------------------------------------

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)

[ ]  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[ ]  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
           ---------------------------------------------

On August 9, 2006,  CharterMac  (the  "Company")  (NYSE:  CHC)  released a press
release  announcing its financial  results for the second quarter and six months
ended June 30,  2006.  A copy of this press  release is attached to this Current
Report as Exhibit 99.1 and incorporated herein by reference.

The  information  included in this Current  Report,  including  the  information
included in Exhibit 99.1 attached hereto,  is intended to be furnished  pursuant
to "Item 2.02.  Disclosure of Results of Operations and Financial Condition" and
not deemed to be "filed" for purposes of Section 18 of the  Securities  Exchange
Act of 1934, as amended (the "Exchange  Act"),  or  incorporated by reference in
any filing under the  Securities Act of 1933, as amended  ("Securities  Act") or
the Exchange  Act, or otherwise  subject to the  liabilities  of that Section or
Sections 11 and 12 (a) (2) of the Securities Act.

ITEM 9.01. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
           ------------------------------------------------------------------

(a).  Financial Statements
      --------------------

Not Applicable

(b).  Pro Forma Financial Information
      -------------------------------

Not Applicable

(c).  Exhibits
      --------

99.1 Press  Release dated August 9, 2006,  "CharterMac  Reports  Second  Quarter
Financial Results For 2006".
--------------------------------------------------------------------------------

                                   SIGNATURES

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

                                                     CharterMac
                                                     (Registrant)

                                                     BY: /s/ Marc D. Schnitzer
                                                         ---------------------
                                                         Marc D. Schnitzer
                                                         Chief Executive Officer

August 9, 2006
AT THE COMPANY
--------------
Brenda Abuaf, Corporate Communications
(800) 831-4826

               CHARTERMAC REPORTS SECOND QUARTER FINANCIAL RESULTS

NEW YORK, NY - AUGUST 9, 2006 - CharterMac  (the  "Company")  (NYSE:  CHC) today
announced financial results for the second quarter and six months ended June 30,
2006.

"CharterMac  had two  significant  events  occur in the second  quarter of 2006,
including  the  launch  of our  credit  intermediation  subsidiary,  Centerbrook
Financial LLC  ("Centerbrook"),  and the announcement of our pending acquisition
of ARCap  Investors LLC  ("ARCap"),"  said Marc D.  Schnitzer,  Chief  Executive
Officer and President of CharterMac. "While both of these events are expected to
contribute  to Cash  Available  for  Distribution  ("CAD")  in 2007,  there were
several  significant costs associated with these  transactions that impacted our
financial  results in the second quarter.  Importantly,  both  transactions will
result in  significant  cost savings to the Company  going  forward,  as well as
position the Company for stable growth in 2007 and beyond.  Our core  businesses
performed as we had expected in the second  quarter,  and we believe we are well
positioned to have a strong finish to the year."

FINANCIAL HIGHLIGHTS

CharterMac  reported total revenues of approximately $79.2 million for the three
months  ended June 30,  2006.  Adjusted  to exclude  the impact of  consolidated
partnerships,  as  discussed  on the third  page of this  press  release,  total
revenues  were  approximately  $86.5  million,  which  represents an increase of
approximately  1.2% as compared to similarly  adjusted revenues of approximately
$85.5 million for the three months ended June 30, 2005. For the six months ended
June 30, 2006,  CharterMac's total revenues were  approximately  $151.4 million.
Adjusted  to exclude the impact of  consolidated  partnerships,  total  adjusted
revenues  for the six  months  ended  June 30,  2006 were  approximately  $163.1
million,  which  represents  an increase of  approximately  11.3% as compared to
similarly  adjusted revenues of approximately  $146.5 million for the six months
ended June 30, 2005.

For the three  months  ended  June 30,  2006,  CharterMac  earned  net income of
approximately  $4.2  million,  representing  a decrease  of 78.2% as compared to
approximately  $19.4  million for the three  months  ended June 30,  2005.  On a
diluted per share  basis,  net income was $0.05 for the three  months ended June
30,  2006,  representing  a decrease of 84.8% as compared to $0.33 for the three
months ended June 30, 2005.

A significant portion of the decrease in net income was due to the following:

     (i)  start-up costs associated with Centerbrook;
     (ii) restructuring  and  severance  costs  associated  with  the  Company's
          pending  acquisition  of ARCap and with the transfer of the  Company's
          loan servicing  operation to Dallas, TX. As a result of this transfer,
          the Company  believes  that it will save between $2.5 million and $3.0
          million per year in operating costs beginning in 2007;
     (iii) termination  fees paid to third party credit  providers,  incremental
          interest  costs  and  the  write-off  of  deferred   financing   costs
          associated  with the  re-securitization  of $804 million of CharterMac
          multifamily revenue bonds by Centerbrook. While there were significant
          fees associated with the launch of  Centerbrook,  CharterMac  believes
          that  Centerbrook will enable the Company to lower its cost of capital
          going   forward.   Specifically,   with   respect   to   the   initial
          re-securitization  transaction,  the  Company  was paying  third party
          credit providers 47.9 basis points in credit intermediation fees on an
          annual   basis  and  will  now  capture  38%  of  those  fees  through
          Centerbrook, resulting in $1.5 million of annual savings;
     (iv) a  decrease  in the level of equity  invested  by our Fund  Management
          business due to the timing of the closing of investment funds; and
     (v)  increased interest expense.
For the six  months  ended  June 30,  2006,  CharterMac  earned  net  income  of
approximately  $18.9  million,  representing  a decrease of 44.8% as compared to
approximately $34.2 million for the six months ended June 30, 2005. On a diluted
per share  basis,  net income was $0.28 for the six months  ended June 30, 2006,
representing a decrease of 52.5% as compared to approximately  $0.59 for the six
months ended June 30, 2005.

Similar to Net Income,  Cash Available for  Distribution  ("CAD"),  CharterMac's
primary  performance  measure,  was impacted by many of the same costs described
above.  For  the  three  months  ended  June  30,  2006,  CharterMac's  CAD  was
approximately  $23.9  million,  representing  a decrease of 37.6% as compared to
approximately  $38.4  million for the three  months  ended June 30,  2005.  On a
diluted per share basis, CAD was $0.41 for the three months ended June 30, 2006,
representing  a decrease  of 37.9% as compared  to  approximately  $0.66 for the
three  months  ended  June 30,  2005.  For the six months  ended June 30,  2006,
CharterMac's  CAD was  approximately  $39.2 million,  representing a decrease of
28.1% as compared to  approximately  $54.5 million for the six months ended June
30, 2005.  On a diluted per share basis,  CAD was $0.66 for the six months ended
June 30, 2006,  representing a decrease of 29.8% as compared to CAD of $0.94 for
the six months ended June 30, 2005.

Incremental  costs for the second quarter and six months ended June 30, 2006, as
discussed  on the first  page of this  press  release  related  to the launch of
Centerbrook  and the pending  acquisition  of ARCap (the  majority of which were
recorded in the second quarter) were as follows:
(In thousands)                                                         Three Months Ended    Six Months Ended
                                                                              June 30, 2006        June 30, 2006
                                                                            ------------------    ----------------
Centerbrook start-up costs                                                  $  3,758            $  4,313
     Restructuring costs in anticipation of ARCap acquisition                       1,995               1,995
     Restructuring of securitization programs - incremental interest expense        1,915               1,915
     Restructuring of securitization programs - termination fee                     1,420               1,420
     Restructuring of securitization programs - write-off of deferred costs         3,398               3,398
                                                                                 --------            --------
                                                                                   12,486              13,041
     Tax effect                                                                      (752)               (863)
                                                                                 --------            --------
     Net incremental costs                                                       $ 11,734            $ 12,178
                                                                                 ========            ========

Impact on Net Income (per Diluted share)                                         $   0.20            $   0.21
                                                                                 ========            ========
Impact on CAD (per Diluted share)                                                $   0.14            $   0.15
                                                                                 ========            ========
The  following is a summary of our second  quarter and six months ended June 30,
2006 production volume for each of CharterMac's business lines:

FUND MANAGEMENT

         Tax Credit Equity
         -----------------

During the three months ended June 30, 2006, CharterMac's subsidiary, CharterMac
Capital,  raised  tax  credit  equity  totaling  approximately  $308.1  million,
bringing  total tax  credit  equity  raised  for the first six months of 2006 to
approximately $369.0 million. Of the $369.0 million, approximately $57.4 million
was raised through credit  intermediated  funds in which the investors receive a
specified rate of return.

In addition,  CharterMac  Capital,  on behalf of investment  funds,  made equity
investments in tax credit properties totaling  approximately  $278.6 million and
$399.1 million during the second quarter and for the first six months ended June
30, 2006, respectively.
AMAC
         ----

American Mortgage  Acceptance Company ("AMAC")  (AMEX:AMC),  the publicly traded
mortgage REIT that CharterMac  advises,  originated ten first mortgage loans and
subordinated  notes,  totaling  over $151  million  in the second  quarter.  The
originations  were sourced through the Company's  mortgage  banking  subsidiary,
CharterMac Mortgage Capital.

MORTGAGE BANKING
----------------

During  the  three  months  ended  June  30,  2006,  the  Company's  subsidiary,
CharterMac  Mortgage Capital,  originated  approximately  $458 million of loans,
including  over $151  million of loans for AMAC and $306.8  million of loans for
Fannie Mae,  Freddie Mac and conduits.  Originations for the first six months of
2006 totaled $739.2 million,  which is a 67.6% increase over total  originations
for the first six months of 2005.

Of the $739.2 million,  approximately $41 million were commercial mortgage loans
for office and retail  properties,  marking an expansion of our business  beyond
our traditional multifamily originations.

As of June 30, 2006,  CharterMac Mortgage Capital's loan servicing portfolio had
an outstanding principal balance of approximately $9.2 billion.

PORTFOLIO INVESTING
-------------------

During  the three  months  ended June 30,  2006,  CharterMac  acquired  mortgage
revenue bonds  totaling  approximately  $95.5  million in par value,  secured by
affordable  multifamily  properties  aggregating  1,349 units,  bringing the six
month total to approximately $136.0 million.

As of June 30, 2006,  CharterMac  had  ownership  interests in mortgage  revenue
bonds  with a fair  value of  approximately  $2.6  billion,  secured  by  54,418
multifamily  units in 30 states and the District of  Columbia.  As of that date,
the mortgage  revenue bond  portfolio  had a weighted  average  interest rate of
6.7%,  a  weighted  average  maturity  of  34  years,  and  a  weighted  average
pre-payment lockout of 12 years.

CENTERBROOK FINANCIAL LLC
-------------------------

During June 2006,  CharterMac  announced the launch of Centerbrook,  marking the
culmination of CharterMac's partnership with IXIS Capital Markets North America,
Inc.  Centerbrook  plans to provide credit  intermediation  products,  including
credit default swaps, to the affordable  housing finance industry.  Concurrently
with the launch,  Centerbrook completed its first transaction,  providing a pool
of credit default swaps in connection with the re-securitization of $804 million
of CharterMac's  existing multifamily revenue bonds.  Subsequent to quarter end,
Centerbrook  completed  an  additional  re-securitization  of  $175  million  of
CharterMac's existing multifamily revenue bonds.

SHARE REPURCHASE PLAN
---------------------

During the second  quarter of 2006, in  connection  with  CharterMac's  existing
program to repurchase 1,500,000 of our common shares, the Company entered into a
10b5-1  trading plan to  facilitate  the purchases of shares under this program.
Including  purchases  subsequent  to the  quarter  end,  CharterMac  repurchased
748,800 of the Company's  common shares through open market  purchases using the
plan.
CONSOLIDATED PARTNERSHIPS
-------------------------

As previously  reported,  CharterMac's  earnings  results include the results of
partnerships  consolidated  pursuant to FASB Interpretation 46 ( R ), as well as
other  partnerships  we  control,  but in  which  we have  little  or no  equity
interest.  As CharterMac has virtually no equity interest in these partnerships,
the net losses they generated were allocated almost entirely to their investors.
The  consolidation,  therefore,  has an  insignificant  impact  on  net  income,
although  certain  CharterMac  revenues  are  eliminated  in  consolidation  and
revenues  and expenses of the  consolidated  partnerships  are  reflected in the
income statement.

MANAGEMENT CONFERENCE CALL
--------------------------

Management  will conduct a conference  call today at 11:00 a.m.  Eastern Time to
review the Company's second quarter  financial results for the period ended June
30,  2006.  Callers  will  be  invited  to ask  questions.  Investors,  brokers,
analysts,  and shareholders  wishing to participate should call 800-967-7141.  A
webcast of the  presentation  will be available live and can be accessed through
the Company's website, http://www.chartermac.com.  To listen to the presentation
via webcast, please go to the website's "Investor Relations" section at least 15
minutes  prior to the  start of the  presentation.  For  interested  individuals
unable to join the  conference  call,  a replay  of the call  will be  available
through Sunday,  August 13, 2006, at 888-203-1112  (Passcode  2964501) or on our
website, through Wednesday, September 6, 2006.

SUPPLEMENTAL FINANCIAL INFORMATION
----------------------------------

For  more  detailed  financial  information,   please  access  the  Supplemental
Financial  Package,  which is available in the Investor Relations section of the
CharterMac website at www.chartermac.com.

ABOUT THE COMPANY
-----------------

CharterMac,   through  its   subsidiaries,   is  one  of  the  nation's  leading
full-service real estate finance companies.  CharterMac offers capital solutions
to  developers  and owners of  properties  throughout  the  country  and quality
investment products to institutional and retail investors. For more information,
please visit CharterMac's  website at  http://www.chartermac.com  or contact the
Investor Relations Department directly at 800-831-4826.
CHARTERMAC AND SUBSIDIARIES
                             SELECTED FINANCIAL DATA
                    (In thousands, except per share amounts)
June 30,     December 31,
                                                                 2006           2005
                                                              ----------    ------------
                                                             (Unaudited)
Revenue bonds - at fair value                                 $2,413,949     $2,294,787
                                                              ----------     ----------
Net addition to assets from consolidation of partnerships     $3,518,378     $3,365,685
                                                              ----------     ----------
Total assets                                                  $7,303,740     $6,978,828
                                                              ----------     ----------

Liabilities:
  Financing arrangements                                      $1,600,778     $1,429,692
                                                              ----------     ----------
  Preferred shares of subsidiary (subject to mandatory
   repurchase)                                                $  273,500     $  273,500
                                                              ----------     ----------
  Notes payable                                               $  408,337     $  304,888
                                                              ----------     ----------
  Liabilities of consolidated partnerships                    $1,365,076     $1,627,556
                                                              ----------     ----------

Total liabilities                                             $3,812,371     $3,814,911
                                                              ----------     ----------

Minority interests in subsidiaries                            $  253,191     $  262,274
                                                              ----------     ----------
Preferred shares of subsidiary (not subject to mandatory
  repurchase)                                                 $  104,000     $  104,000
                                                              ----------     ----------
Partners' interests in consolidated partnerships              $2,156,653     $1,747,808
                                                              ----------     ----------

Total shareholders' equity                                    $  977,525     $1,049,835
                                                              ----------     ----------
==============================================================================
                                                                                   Three Months Ended
                                                                                        June 30,
                                                      ------------------------------------------------------------------------------
                                                                       2006                                     2005
                                                      -------------------------------------   --------------------------------------
                                                                                       (Unaudited)
                                                          As                        As            As                        As
                                                       Reported  Adjustments(1) Adjusted(1)    Reported  Adjustments(1)  Adjusted(1)
                                                      ---------  -------------- -----------   ---------  --------------  -----------
Total revenues                                        $  79,231     $  7,293    $  86,524     $  78,480     $   6,996    $  85,476

Interest expense                                        (28,810)          --      (28,810)      (19,076)           --      (19,076)
General and administrative                              (39,861)          --      (39,861)      (33,068)           --      (33,068)
Depreciation and amortization                           (14,615)          --      (14,615)       (9,469)           --       (9,469)
Loss on impairment of assets                             (2,271)          --       (2,271)       (1,098)           --       (1,098)
Expenses and equity losses of consolidated
  partnerships                                          (99,799)      99,799           --       (86,374)       86,374           --
Equity and other income                                   3,548           (2)       3,546           552            --          552
Gain on sale of loans and repayment of
  revenue bonds                                           2,538           --        2,538         5,229            --        5,229

Income allocated to preferred shareholders
   and minority interests                                (3,208)          --       (3,208)       (9,437)           --       (9,437)

Loss allocated to partners of consolidated
  partnerships                                          107,090     (107,090)          --        93,370       (93,370)          --
                                                                    --------    ---------     ---------     ---------    ---------

Income before income taxes                                3,843           --        3,843        19,109            --       19,109

Income tax benefit                                          405           --          405           335            --          335
                                                                                                            ---------    ---------

Net income                                            $   4,248     $     --    $   4,248     $  19,444     $      --    $  19,444
                                                                    ========    =========     =========     =========    =========

  4.4% CRA Preferred dividend requirements               (1,188)          --       (1,188)           --            --           --
                                                      ---------     --------    ---------     ---------     ---------    ---------

Net income available to common and CRA
  shareholders                                        $   3,060     $     --    $   3,060     $  19,444     $      --    $  19,444
                                                      =========     ========    =========     =========     =========    =========

Net income per share:
   Basic                                              $    0.05     $     --    $    0.05     $    0.34     $      --    $    0.34
                                                                    ========    =========     =========     =========    =========
   Diluted                                            $    0.05     $     --    $    0.05     $    0.33     $      --    $    0.33
                                                                    ========    =========     =========     =========    =========

Weighted average shares outstanding:
   Basic                                                 58,639           --       58,639        57,890            --       57,890
                                                      =========     ========    =========     =========     =========    =========
   Diluted                                               58,919           --       58,919        58,274            --       58,274
                                                      =========     ========    =========     =========     =========    =========
CHARTERMAC AND SUBSIDIARIES
                             SELECTED FINANCIAL DATA
                    (In thousands, except per share amounts)
==============================================================================
                                                                             Six Months Ended
                                                                                June 30,
                                              ------------------------------------------------------------------------------
                                                               2006                                     2005
                                              -------------------------------------   --------------------------------------
                                                                               (Unaudited)
                                                  As                        As            As                        As
                                               Reported  Adjustments(1) Adjusted(1)    Reported  Adjustments(1)  Adjusted(1)
                                              ---------  -------------- -----------   ---------  --------------  -----------
Total revenues                                $ 151,370     $  11,701    $ 163,071    $ 136,426    $  10,084     $ 146,510

Interest expense                                (50,642)           --      (50,642)     (34,380)          --       (34,380)
General and administrative                      (72,427)           --      (72,427)     (59,280)          --       (59,280)
Depreciation and amortization                   (23,528)           --      (23,528)     (17,165)          --       (17,165)
Loss on impairment of assets                     (2,271)           --       (2,271)      (1,098)          --        (1,098)
Expenses and equity losses of consolidated
  partnerships                                 (184,175)      184,175           --     (154,249)     154,249            --
Equity and other income                           4,058            (5)       4,053        1,076           --         1,076
Gain on sale of loans and repayment of
  revenue bonds                                   7,968            --        7,968        6,924           --         6,924

Income allocated to preferred shareholders
  and minority interests                        (10,643)           --      (10,643)     (17,058)          --       (17,058)

Loss allocated to partners of consolidated
  partnerships                                  195,871      (195,871)          --      164,333     (164,333)           --
                                              ---------     ---------    ---------    ---------    ---------     ---------

Income before income taxes                       15,581            --       15,581       25,529           --        25,529

Income tax benefit                                3,324            --        3,324        8,700           --         8,700
                                              ---------     ---------    ---------    ---------    ---------     ---------

Net income                                    $  18,905     $      --    $  18,905    $  34,229    $      --     $  34,229
                                              =========     =========    =========    =========    =========     =========

  4.4% CRA Preferred dividend requirements       (2,376)           --       (2,376)          --           --            --
                                              ---------     ---------    ---------    ---------    ---------     ---------

Net income available to shareholders          $  16,529     $      --    $  16,529    $  34,229    $      --     $  34,229
                                              =========     =========    =========    =========    =========     =========

Net income per share:
   Basic                                      $    0.28     $      --    $    0.28    $    0.59    $      --     $    0.59
                                              =========     =========    =========    =========    =========     =========
   Diluted                                    $    0.28     $      --    $    0.28    $    0.59    $      --     $    0.59
                                              =========     =========    =========    =========    =========     =========

Weighted average shares outstanding:
   Basic                                         58,609            --       58,609       57,856           --        57,856
                                              =========     =========    =========    =========    =========     =========
   Diluted                                       58,961            --       58,961       58,271           --        58,271
                                              =========     =========    =========    =========    =========     =========
Reconciliation of Net Income to Cash Available for Distribution ("CAD")(2)
                                 (In thousands)
=====================
                                                                  Three Months Ended
                                                                        June 30,
                                                                 ---------------------
                                                                   2006         2005
                                                                 ---------------------
Net Income                                                       $  4,248     $ 19,444
4.4% CRA Preferred dividends                                       (1,188)          --
Mortgage revenue bond yield adjustments                               468         (360)
Fees deferred for GAAP                                             10,574       14,292
Depreciation and amortization expense                              14,615        9,469
Gain on sale of loans                                              (2,190)      (5,012)
Tax adjustment                                                        187       (1,116)
Non-cash compensation                                               1,061        1,576
Difference between subsidiary equity distributions and income
  allocated to subsidiary equity holders                           (7,209)        (779)
Loss on impairment of assets                                        2,271        1,098
Other, net                                                          1,112         (208)
                                                                 --------     --------
CAD                                                              $ 23,949     $ 38,404
                                                                 ========     ========
Reconciliation of Net Income to Cash Available for Distribution ("CAD")(2)
                                 (In thousands)
=====================
                                                                    Six Months Ended
                                                                        June 30,
                                                                 ---------------------
                                                                   2006         2005
                                                                 ---------------------
Net Income                                                       $ 18,905     $ 34,229
4.4% CRA Preferred dividends                                       (2,376)          --
Mortgage revenue bond yield adjustments                               631         (850)
Fees deferred for GAAP                                              9,420       18,722
Depreciation and amortization expense                              23,528       17,165
Gain on sale of loans                                              (6,813)      (6,649)
Tax adjustment                                                        219       (9,481)
Non-cash compensation                                               3,413        3,534
Difference between subsidiary equity distributions and income
    allocated to subsidiary equity holders                        (10,234)      (3,354)
Loss on impairment of assets                                        2,271        1,098
Other, net                                                            240          127
                                                                 --------     --------
CAD                                                              $ 39,204     $ 54,541
                                                                 ========     ========
(1) As previously reported, CharterMac's earnings results include the results of
partnerships  consolidated  pursuant to FASB Interpretation 46 ( R ), as well as
other  partnerships  we  control,  but in  which  we have  little  or no  equity
interest.  As CharterMac has virtually no equity interest in these partnerships,
the net  losses  generated  by them  were  allocated  almost  entirely  to their
investors.  The  consolidation,  therefore,  has an insignificant  impact on net
income, although certain CharterMac revenues are eliminated in consolidation and
revenues  and expenses of the  consolidated  partnerships  are  reflected in the
income  statement.  The adjusted  figures  presented are not in accordance  with
generally  accepted  accounting  principles  ("GAAP") but are  presented for the
purpose of comparability..

(2) CharterMac believes that Cash Available for Distribution  ("CAD") is helpful
to  investors  in  measuring  the  performance  of our  Company  that  it is the
performance measure used by our chief decision-maker to allocate resources among
our segments.  CAD  represents  net income  (computed in accordance  with GAAP),
adjusted for:

     o    Cash fees and other revenues  received but deferred in accordance with
          GAAP.  Fees  recognized  for CAD but  deferred  for GAAP  purposes are
          generally  earned over a period of time in connection  with certain of
          our product lines,  such as fund  sponsorship  and credit  enhancement
          fees.
     o    The effect of straight line revenue  recognition of interest income on
          revenue bonds with fixed changes in interest rates.
     o    Depreciation and amortization.
     o    Non-cash  gains  recognized on sale of mortgage  loans when  servicing
          rights are retained.
     o    Losses on sales of loans or repayment of revenue bonds.
     o    Impairment losses.
     o    The portion of tax  benefit or  provision  that is not  expected to be
          realized in cash.
     o    Non-cash compensation expenses.
     o    The  difference  between  earnings  allocated to Subsidiary  Equity in
          accordance with GAAP and distributions to holders of that equity.

There is no generally accepted  methodology for computing CAD, and the Company's
computation of CAD may not be comparable to CAD reported by other companies. CAD
does not  represent  net cash  provided by operating  activities  determined  in
accordance  with GAAP and  should not be  considered  as an  alternative  to net
income  (determined  in accordance  with GAAP) as an indication of the Company's
performance,  as an alternative  to net cash provided from operating  activities
(determined  in accordance  with GAAP) as a measure of our  liquidity,  or as an
indication of our ability to make cash distributions.
###

CERTAIN  STATEMENTS IN THIS DOCUMENT MAY CONSTITUTE  FORWARD-LOOKING  STATEMENTS
WITHIN THE MEANING OF THE "SAFE  HARBOR"  PROVISIONS  OF THE PRIVATE  SECURITIES
LITIGATION  REFORM  ACT OF 1995.  THESE  STATEMENTS  ARE  BASED ON  MANAGEMENT'S
CURRENT  EXPECTATIONS  AND  BELIEFS  AND ARE  SUBJECT TO A NUMBER OF FACTORS AND
UNCERTAINTIES  THAT COULD CAUSE ACTUAL RESULTS TO DIFFER  MATERIALLY  FROM THOSE
DESCRIBED IN THE FORWARD-LOOKING  STATEMENTS.  THESE RISKS AND UNCERTAINTIES ARE
DETAILED IN CHARTERMAC'S MOST RECENT ANNUAL REPORT ON FORM 10-K AND IN ITS OTHER
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION,  AND INCLUDE, AMONG OTHERS,
ADVERSE  CHANGES IN THE REAL  ESTATE  MARKETS  INCLUDING,  AMONG  OTHER  THINGS,
COMPETITION WITH OTHER COMPANIES;  INTEREST RATE FLUCTUATIONS;  GENERAL ECONOMIC
AND BUSINESS CONDITIONS, WHICH WILL, AMONG OTHER THINGS, AFFECT THE AVAILABILITY
AND CREDIT  WORTHINESS  OF  PROSPECTIVE  TENANTS,  LEASE RENTS AND THE TERMS AND
AVAILABILITY OF FINANCING FOR PROPERTIES  FINANCED BY MORTGAGE  REVENUE BONDS WE
OWN;   ENVIRONMENT/SAFETY   REQUIREMENTS;   CHANGES  IN   APPLICABLE   LAWS  AND
REGULATIONS;  OUR TAX TREATMENT,  THE TAX TREATMENT OF OUR  SUBSIDIARIES AND THE
TAX TREATMENT OF OUR INVESTMENTS;  RISK OF DEFAULT  ASSOCIATED WITH THE MORTGAGE
REVENUE  BONDS  AND  OTHER  SECURITIES  HELD  BY US OR OUR  SUBSIDIARIES;  RISKS
ASSOCIATED  WITH PROVIDING  CREDIT  INTERMEDIATION;  RISK OF LOSS UNDER MORTGAGE
BANKING LOSS SHARING AGREEMENTS;  THE RISK THAT RELATIONSHIPS WITH KEY INVESTORS
AND  DEVELOPERS  MAY NOT  CONTINUE;  OUR ABILITY TO GENERATE  FEE INCOME MAY NOT
CONTINUE;  AND  RISKS  RELATED  TO THE  FORM  AND  STRUCTURE  OF  OUR  FINANCING
ARRANGEMENTS.. SUCH FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS
DOCUMENT.  CHARTERMAC  EXPRESSLY  DISCLAIMS  ANY  OBLIGATION OR  UNDERTAKING  TO
RELEASE  PUBLICLY  ANY UPDATES OR REVISIONS  TO ANY  FORWARD-LOOKING  STATEMENTS
CONTAINED HEREIN TO REFLECT ANY CHANGE IN CHARTERMAC'S  EXPECTATIONS WITH REGARD
THERETO  OR CHANGE IN EVENTS,  CONDITIONS,  OR  CIRCUMSTANCES  ON WHICH ANY SUCH
STATEMENT IS BASED.

                                       ###