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


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


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


                                    FORM 8-K


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                                 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): NOVEMBER 10, 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))


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<PAGE>



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



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

On November 10, 2006,  CharterMac (the "Company")  (NYSE:  CHC) released a press
release  announcing its financial  results for the third quarter and nine months
ended  September  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  November 10, 2006,  "CharterMac  Reports Third 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


November 10, 2006


<PAGE>



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


               CHARTERMAC REPORTS THIRD QUARTER FINANCIAL RESULTS


NEW YORK, NY - NOVEMBER 10, 2006 - CharterMac (the "Company")  (NYSE: CHC) today
announced  financial  results  for the  third  quarter  and  nine  months  ended
September 30, 2006.

"CharterMac  had a very strong quarter both from an operational  and a financial
standpoint," commented Marc D. Schnitzer,  Chief Executive Officer and President
of CharterMac.  "Our core  businesses  performed well, we closed three large tax
credit investment funds and we made significant progress with the integration of
ARCap, our newly acquired subsidiary.  We believe that we are on track to finish
the year in accordance with our financial expectations."

FINANCIAL HIGHLIGHTS

CharterMac reported total revenues of approximately $107.0 million for the three
months ended September 30, 2006.  Adjusted to exclude the impact of consolidated
partnerships,  as  discussed  on the third  page of this  press  release,  total
revenues were  approximately  $102.4  million,  which  represents an increase of
approximately  21.6% as compared to similarly adjusted revenues of approximately
$84.2 million for the three months ended September 30, 2005. For the nine months
ended September 30, 2006,  CharterMac's total revenues were approximately $258.4
million.  Adjusted to exclude  the impact of  consolidated  partnerships,  total
adjusted   revenues  for  the  nine  months  ended   September   30,  2006  were
approximately  $265.4  million,  which  represents an increase of  approximately
15.1% as compared to similarly adjusted revenues of approximately $230.7 million
for the nine months ended September 30, 2005.

For the three months ended September 30, 2006,  CharterMac  earned net income of
approximately  $14.6  million,  representing  a decrease of 22.0% as compared to
approximately  $18.7 million for the three months ended September 30, 2005. On a
diluted  per share  basis,  net  income  was $0.23  for the three  months  ended
September  30, 2006,  representing  a decrease of 26.1% as compared to $0.31 for
the three months ended September 30, 2005.

For the nine months ended  September 30, 2006,  CharterMac  earned net income of
approximately  $33.5  million,  representing  a decrease of 36.7% as compared to
approximately  $52.9 million for the nine months ended  September 30, 2005. On a
diluted  per  share  basis,  net  income  was $0.51  for the nine  months  ended
September   30,  2006,   representing   a  decrease  of  42.9%  as  compared  to
approximately  $0.89 for the nine months ended September 30, 2005. The Company's
net income  decreased  despite the increase in income  before income taxes as we
incurred  income tax expense  during the 2006 quarter  compared to an income tax
benefit we  received  during the 2005  quarter.  The tax  provision  in the 2006
period  relates  to a  higher  level of  current  taxable  income  from the Fund
Management  segment due to increased fund sponsorship  activity,  coupled with a
valuation allowance against deferred tax benefits.

For the three months ended September 30, 2006,  CharterMac's  Cash Available for
Distribution   ("CAD"),    CharterMac's   primary   performance   measure,   was
approximately  $41.1 million,  representing  an increase of 25.9% as compared to
approximately  $32.6 million for the three months ended September 30, 2005. On a
diluted per share basis,  CAD was $0.70 for the three months ended September 30,
2006,  representing an increase of 25.0% as compared to approximately  $0.56 for
the three months ended September 30, 2005.

Similar to Net  Income,  CAD was  impacted  by the income tax  expense  incurred
during  2006  compared  to 2005,  and the  incremental  costs we recorded in the
second  quarter of 2006 also  impacted  CAD results  for the nine  months  ended
September 30, 2006. For the nine months ended  September 30, 2006,  CharterMac's
CAD was approximately $80.1 million, representing a decrease of 8.4% as compared
to approximately  $87.4 million for the nine months ended September 30, 2005. On
a diluted per share basis, CAD was $1.36 for the nine months ended September 30,


<PAGE>



2006,  representing  a decrease of 9.3% as compared to CAD of $1.50 for the nine
months ended September 30, 2005.

The following is a summary of CharterMac's  investment and origination  activity
for the third quarter and nine months ended September 30, 2006:

INVESTMENT/ORIGINATION ACTIVITY:

<TABLE>
<CAPTION>

                                                  THREE MONTHS ENDED   NINE MONTHS ENDED
                                                  ------------------   ------------------
                                                  SEPTEMBER 30, 2006   SEPTEMBER 30, 2006
                                                  ------------------   ------------------
                                                               (In thousands)
<S>                                                   <C>                  <C>
Revenue Bonds                                         $  133,589           $  269,569
Equity Investments in LIHTC Properties                   388,268              758,944
Agency Loans (Fannie Mae/Freddie Mac/
    Conduit & Others)                                    276,992              864,995
CharterMac Direct*                                       167,850              319,050
CharterMac Urban Capital**                                   834                  834
                                                      ----------           ----------
    TOTAL                                             $  967,533           $2,213,392
                                                      ==========           ==========

</TABLE>

*    For the three months ended September 30, 2006, American Mortgage Acceptance
     Company  ("AMAC") funded  $140,550 and the remaining  $27,300 was funded by
     ARCap  Investors,  LLC  ("ARCap") or a fund managed by ARCap.  For the nine
     months ended  September  30, 2006,  AMAC funded  $291,750 and the remaining
     $27,300 was funded by ARCap or a fund managed by ARCap.
**   Reflects  capital  deployed  to fund a  previous  commitment  and a  future
     commitment.

The following is a summary of investment fund closings for the third quarter and
nine month period ended September 30, 2006:

<TABLE>
<CAPTION>

                                                  THREE MONTHS ENDED   NINE MONTHS ENDED
                                                  ------------------   ------------------
                                                  SEPTEMBER 30, 2006   SEPTEMBER 30, 2006
                                                  ------------------   ------------------
                                                               (In thousands)
<S>                                                   <C>                  <C>
TAX CREDIT FUNDS
Corporate                                             $209,755             $477,945
Proprietary                                             43,431               83,293
Credit Intermediated                                   175,760              233,135
Other                                                    3,855                7,385
                                                      --------             --------
         TOTAL                                        $432,801             $801,758
                                                      ========             ========

</TABLE>

CharterMac's  loan servicing  portfolio totaled  approximately  $18.0 billion at
September 30, 2006. The following is a breakdown of servicing balances:

SERVICING
    (In thousands)

          Interim Servicing                              $8,571,000
          Primary Servicing                              $9,137,000
          Special Servicing                              $  250,000

With the ARCap  acquisition,  CharterMac  servicing  portfolio  has  expanded to
include both special servicing and interim  servicing,  which entails short-term
servicing for conduits prior to the issuance of their securitizations.

CENTERBROOK FINANCIAL LLC

During the three months ended  September  30, 2006,  Centerbrook  Financial  LLC
("Centerbrook"),  the Company's credit intermediation subsidiary,  completed its
second transaction,  providing a pool of credit default swaps in connection with
the  re-securitization  of approximately  $175 million of CharterMac's  existing
multifamily revenue bonds.  Centerbrook's total re-securitization activity since
its inception in June 2006 totaled approximately $979 million.


<PAGE>



TERMINATION OF OPTION TO ACQUIRE 49% OF PLACECAPRI CAPITAL ADVISORS

On September 1, 2006, the Company's subsidiary CM Investor,  LLC, terminated its
option to purchase a 49% interest in Capri Capital  Advisors ("CCA") in exchange
for a $6.0 million  termination fee from CCA. In connection with the termination
of the option, CCA repaid the $20.0 million loan that CharterMac originally made
to CCA in July of 2004, when CCA went through a recapitalization  event. As part
of the  transaction,  CCA  transferred its interest in the investment fund Capri
Urban  Capital  to  CharterMac  and the fund will be  renamed  CharterMac  Urban
Capital  ("CUC").  Formed in 2001,  CUC is an investment  fund focused on making
investments  in multifamily  and  commercial  properties in major urban markets.
CUC's single  investor is the  California  Public  Employees  Retirement  System
("CalPERS"),  although CharterMac has a co-investment agreement in the amount of
2.5% of all capital  requirements.  As of September  30, 2006,  the fund had $58
million in assets under  management,  with a  commitment  from CalPERS for up to
$135 million. In connection with the termination,  CharterMac recorded a gain on
sale of approximately  $6.9 million,  of which $6.0 million is attributed to the
termination  fee and  approximately  $900,000 is  attributed to the value of the
management agreement among a subsidiary and CUC.

CHARTERMAC REAL ESTATE SECURITIES

During October,  2006, CharterMac decided to cease operations of CharterMac Real
Estate  Securities  ("CRES"),  its Kansas City-based real estate securities fund
management  division.  In  connection  with the  closure of this  business,  the
convertible  securities that were given to CRES' founder will be returned to the
Company,  in addition to the  Company's  $5 million  investment  in one of CRES'
investment  funds.  As a result,  the Company  recognized a goodwill  impairment
charge of approximately  $0.9 million to account for the portion of CharterMac's
total  investment in and advances to CRES that were not expected to be recovered
and wrote-off the $1.6 million  unamortized  balance of other intangible  assets
recognized at the time of the acquisition.  While these write-offs  effected our
net income for the quarter  ended  September  30, 2006,  they did not impact the
Company's CAD.

CONSOLIDATED PARTNERSHIPS


As previously  reported,  CharterMac's  earnings  results include the results of
Low-Income Housing Tax Credit ("LIHTC")  Partnerships  consolidated  pursuant to
FASB  Interpretation 46 ( R ), as well as other LIHTC and Property  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.


In  connection  with the ARCap  acquisition,  we also sponsor funds to syndicate
investments  in Commercial  Mortgage  Backed  Securities  and  re-securitization
trusts  ("CMBS  Partnerships").  We  maintain  an equity  interest in these CMBS
funds.

MANAGEMENT CONFERENCE CALL

Management  will conduct a conference  call today at 10:00 a.m.  Eastern Time to
review the  Company's  third quarter and nine months  financial  results for the
period ended September 30, 2006. Investors,  brokers, analysts, and shareholders
wishing to participate should call (800) 946-0706. A webcast of the presentation
will be  available  live and can be  accessed  through  the  Company's  website,
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  Tuesday,  November 14, 2006, at
(888) 203-1112 (Passcode 5548362) or on our website, through Friday, December 8,
2006.


<PAGE>



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 real
estate  investment  products to  institutional  and retail  investors.  For more
information,  please visit CharterMac's website at  http://www.chartermac.com or
contact the Investor Relations Department directly at 800-831-4826.


<PAGE>



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

<TABLE>
<CAPTION>

                                                              ==============================
                                                              September 30,     December 31,
                                                                  2006              2005
                                                              -------------     ------------
                                                               (Unaudited)
<S>                                                             <C>              <C>
Revenue bonds - at fair value                                   $2,505,706       $2,294,787
                                                                ----------       ----------
Net addition to assets from consolidation of partnerships       $4,989,300       $3,365,685
                                                                ----------       ----------
Total assets                                                    $9,000,391       $6,978,828
                                                                ----------       ----------

Liabilities:
  Financing arrangements                                        $1,730,629       $1,429,692
                                                                ----------       ----------
  Preferred shares of subsidiary (subject to mandatory
   repurchase)                                                  $  273,500       $  273,500
                                                                ----------       ----------
  Notes payable                                                 $  399,837       $  304,888
                                                                ----------       ----------
  Liabilities of consolidated partnerships                      $2,369,289       $1,627,556
                                                                ----------       ----------

Total liabilities                                               $5,017,698       $3,814,911
                                                                ----------       ----------

Minority interests in consolidated subsidiaries                 $  251,940       $  262,274
                                                                ----------       ----------
Preferred shares of subsidiary (not subject to mandatory
  repurchase)                                                   $  104,000       $  104,000
                                                                ----------       ----------
Partners' interests in consolidated partnerships                $2,627,758       $1,747,808
                                                                ----------       ----------

Total shareholders' equity                                      $  998,995       $1,049,835
                                                                ----------       ----------

</TABLE>
<TABLE>
<CAPTION>

                                              -------------------------------------------------------------------------------
                                                                      Three Months Ended September 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                                 $ 107,019   $   4,664      $ 102,355     $ 78,844    $   5,322     $  84,166

Interest expense                                 (30,181)         --        (30,181)     (18,214)          --       (18,214)
General and administrative                       (43,678)         --        (43,678)     (30,370)          --       (30,370)
Depreciation and amortization                    (11,033)         --        (11,033)     (16,302)          --       (16,302)
Write-off of intangible assets                    (2,547)         --         (2,547)          --           --            --
Loss on impairment of assets                        (394)         --           (394)        (804)          --          (804)
Expenses and equity losses of consolidated
  partnerships                                  (100,458)    100,458             --      (85,980)      85,980            --
Equity and other income                           (3,320)      9,640          6,320          414           (7)          407
Gain on sale or repayment of loans and
  revenue bonds                                    8,289          --          8,289        3,962           --         3,962

Income allocated to preferred shareholders
  and minority interests                          (7,327)         --         (7,327)      (9,183)          --        (9,183)

Loss allocated to partners of consolidated
  partnerships                                   105,434    (105,434)            --       91,295      (91,295)           --
                                               ---------   ---------      ---------     --------    ---------     ---------

Income before income taxes                        21,804          --         21,804       13,662           --        13,662

Income tax (provision) benefit                    (7,233)         --         (7,233)       5,016           --         5,016
                                               ---------   ---------      ---------     --------    ---------     ---------

Net income                                     $  14,571   $      --      $  14,571     $ 18,678    $      --     $  18,678
                                               =========   =========      =========     ========    =========     =========

  4.4% CRA Preferred dividend requirements        (1,188)         --         (1,188)        (832)          --          (832)
                                               ---------   ---------      ---------     --------    ---------     ---------

Net income available to common
  and CRA shareholders                         $  13,383   $      --      $  13,383     $ 17,846    $      --     $  17,846
                                               =========   =========      =========     ========    =========     =========

Net income per share:
   Basic                                       $    0.23   $      --      $    0.23     $   0.31    $      --     $    0.31
                                               =========   =========      =========     ========    =========     =========
   Diluted                                     $    0.23   $      --      $    0.23     $   0.31    $      --     $    0.31
                                               =========   =========      =========     ========    =========     =========

Weighted average shares outstanding:
   Basic                                          58,015          --         58,015       58,059           --        58,059
                                               =========   =========      =========     ========    =========     =========
   Diluted                                        58,396          --         58,396       58,366           --        58,366
                                               =========   =========      =========     ========    =========     =========

</TABLE>

<PAGE>



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

<TABLE>
<CAPTION>

                                               -------------------------------------------------------------------------------
                                                                       Nine Months Ended September 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                                 $ 258,389   $   7,037       $ 265,426     $ 215,270     $  15,406     $ 230,676

Interest expense                                 (80,823)         --         (80,823)      (52,594)           --       (52,594)
General and administrative                      (116,105)         --        (116,105)      (89,650)           --       (89,650)
Depreciation and amortization                    (34,561)         --         (34,561)      (33,467)           --       (33,467)
Write-off of intangible assets                    (2,547)         --          (2,547)           --            --            --
Loss on impairment of assets                      (2,665)         --          (2,665)       (1,902)           --        (1,902)
Expenses and equity losses of consolidated
  partnerships                                  (284,633)    284,633              --      (240,229)      240,229            --
Equity and other income                              738       9,635          10,373         1,490            (7)        1,483
Gain on sale or repayment of loans and
  revenue bonds                                   16,257          --          16,257        10,886            --        10,886

Income allocated to preferred shareholders
  and minority interests                         (17,970)         --         (17,970)      (26,241)           --       (26,241)

Loss allocated to partners of consolidated
  partnerships                                   301,305    (301,305)             --       255,628      (255,628)           --
                                               ---------   ---------       ---------     ---------     ---------     ---------

Income before income taxes                        37,385          --          37,385        39,191            --        39,191

Income tax (provision) benefit                    (3,909)         --          (3,909)       13,716            --        13,716
                                               ---------   ---------       ---------     ---------     ---------     ---------

Net income                                     $  33,476   $      --       $  33,476     $  52,907     $      --     $  52,907
                                               =========   =========       =========     =========     =========     =========

  4.4% CRA Preferred dividend requirements        (3,564)         --          (3,564)         (832)           --          (832)
                                               ---------   ---------       ---------     ---------     ---------     ---------

Net income available to common
   and CRA shareholders                        $  29,912   $      --       $  29,912     $  52,075     $      --     $  52,075
                                               =========   =========       =========     =========     =========     =========

Net income per share:
   Basic                                       $    0.51   $      --       $    0.51     $    0.90     $      --     $    0.90
                                               =========   =========       =========     =========     =========     =========
   Diluted                                     $    0.51   $      --       $    0.51     $    0.89     $      --     $    0.89
                                               =========   =========       =========     =========     =========     =========

Weighted average shares outstanding:
   Basic                                          58,409          --          58,409        57,927            --        57,927
                                               =========   =========       =========     =========     =========     =========
   Diluted                                        58,830          --          58,830        58,234            --        58,234
                                               =========   =========       =========     =========     =========     =========

</TABLE>

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

<TABLE>
<CAPTION>

                                                        --------------------------------   -------------------------------
                                                        Three Months Ended September 30,   Nine Months Ended September 30,
                                                        --------------------------------   -------------------------------
                                                             2006             2005             2006             2005
                                                           --------         --------         --------         --------
<S>                                                        <C>              <C>              <C>              <C>
(In thousands)
Net income                                                 $ 14,571         $ 18,678         $ 33,476         $ 52,907

4.4% CRA Preferred dividends                                 (1,188)            (832)          (3,564)            (832)
Interest income yield adjustments                             3,651              (77)           4,098             (660)
Fees deferred for GAAP                                       14,394            3,302           23,814           21,758
Depreciation and amortization expense                        11,066           16,302           34,594           33,467
Gain on sale of loans                                        (2,188)          (3,718)          (9,001)         (10,367)
Tax adjustment                                                   63           (2,546)             282          (12,027)
Non-cash compensation                                         9,169            1,523           12,583            5,299
Difference between subsidiary equity distributions
  and income allocated to subsidiary equity holders          (2,978)          (1,018)         (13,212)          (4,372)
Non-cash equity income                                       (6,402)             200           (5,754)             234
Loss on impairment of assets                                    395              803            2,665            1,902
Other, net                                                      538               24              130              114
                                                           --------         --------         --------         --------
CAD                                                        $ 41,091         $ 32,641         $ 80,111         $ 87,423
                                                           ========         ========         ========         ========

</TABLE>

<PAGE>



(1) As previously reported, CharterMac's earnings results include the results of
LIHTC and Property Partnerships  consolidated pursuant to FASB Interpretation 46
( R ), as well as other LIHTC and Property 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  of these  partnerships,
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. We act as a
general  partner of the CMBS  Partnerships  we sponsor  and own a portion of the
funds. Adjusted equity income includes our proportionate share of the profits as
well as other  allocations for general partner  services.  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. CAD is the performance
measure  used by our  chief  decision-makers  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.

                                       ###
[{"type": "8-K", "sequence": "1", "filename": "f8k_sept2006press-charter.txt", "description": "CHARTERMAC SEPTEMBER 2006 PRESS RELEASE", "secsgml_size_bytes": 39809}]
{"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": "061205370"}, "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): NOVEMBER 10, 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 November 10, 2006,  CharterMac (the "Company")  (NYSE:  CHC) released a press
release  announcing its financial  results for the third quarter and nine months
ended  September  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  November 10, 2006,  "CharterMac  Reports Third 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

November 10, 2006
AT THE COMPANY
Brenda Abuaf, Corporate Communications
(800) 831-4826

               CHARTERMAC REPORTS THIRD QUARTER FINANCIAL RESULTS

NEW YORK, NY - NOVEMBER 10, 2006 - CharterMac (the "Company")  (NYSE: CHC) today
announced  financial  results  for the  third  quarter  and  nine  months  ended
September 30, 2006.

"CharterMac  had a very strong quarter both from an operational  and a financial
standpoint," commented Marc D. Schnitzer,  Chief Executive Officer and President
of CharterMac.  "Our core  businesses  performed well, we closed three large tax
credit investment funds and we made significant progress with the integration of
ARCap, our newly acquired subsidiary.  We believe that we are on track to finish
the year in accordance with our financial expectations."

FINANCIAL HIGHLIGHTS

CharterMac reported total revenues of approximately $107.0 million for the three
months ended September 30, 2006.  Adjusted to exclude the impact of consolidated
partnerships,  as  discussed  on the third  page of this  press  release,  total
revenues were  approximately  $102.4  million,  which  represents an increase of
approximately  21.6% as compared to similarly adjusted revenues of approximately
$84.2 million for the three months ended September 30, 2005. For the nine months
ended September 30, 2006,  CharterMac's total revenues were approximately $258.4
million.  Adjusted to exclude  the impact of  consolidated  partnerships,  total
adjusted   revenues  for  the  nine  months  ended   September   30,  2006  were
approximately  $265.4  million,  which  represents an increase of  approximately
15.1% as compared to similarly adjusted revenues of approximately $230.7 million
for the nine months ended September 30, 2005.

For the three months ended September 30, 2006,  CharterMac  earned net income of
approximately  $14.6  million,  representing  a decrease of 22.0% as compared to
approximately  $18.7 million for the three months ended September 30, 2005. On a
diluted  per share  basis,  net  income  was $0.23  for the three  months  ended
September  30, 2006,  representing  a decrease of 26.1% as compared to $0.31 for
the three months ended September 30, 2005.

For the nine months ended  September 30, 2006,  CharterMac  earned net income of
approximately  $33.5  million,  representing  a decrease of 36.7% as compared to
approximately  $52.9 million for the nine months ended  September 30, 2005. On a
diluted  per  share  basis,  net  income  was $0.51  for the nine  months  ended
September   30,  2006,   representing   a  decrease  of  42.9%  as  compared  to
approximately  $0.89 for the nine months ended September 30, 2005. The Company's
net income  decreased  despite the increase in income  before income taxes as we
incurred  income tax expense  during the 2006 quarter  compared to an income tax
benefit we  received  during the 2005  quarter.  The tax  provision  in the 2006
period  relates  to a  higher  level of  current  taxable  income  from the Fund
Management  segment due to increased fund sponsorship  activity,  coupled with a
valuation allowance against deferred tax benefits.

For the three months ended September 30, 2006,  CharterMac's  Cash Available for
Distribution   ("CAD"),    CharterMac's   primary   performance   measure,   was
approximately  $41.1 million,  representing  an increase of 25.9% as compared to
approximately  $32.6 million for the three months ended September 30, 2005. On a
diluted per share basis,  CAD was $0.70 for the three months ended September 30,
2006,  representing an increase of 25.0% as compared to approximately  $0.56 for
the three months ended September 30, 2005.

Similar to Net  Income,  CAD was  impacted  by the income tax  expense  incurred
during  2006  compared  to 2005,  and the  incremental  costs we recorded in the
second  quarter of 2006 also  impacted  CAD results  for the nine  months  ended
September 30, 2006. For the nine months ended  September 30, 2006,  CharterMac's
CAD was approximately $80.1 million, representing a decrease of 8.4% as compared
to approximately  $87.4 million for the nine months ended September 30, 2005. On
a diluted per share basis, CAD was $1.36 for the nine months ended September 30,
2006,  representing  a decrease of 9.3% as compared to CAD of $1.50 for the nine
months ended September 30, 2005.

The following is a summary of CharterMac's  investment and origination  activity
for the third quarter and nine months ended September 30, 2006:

INVESTMENT/ORIGINATION ACTIVITY:
THREE MONTHS ENDED   NINE MONTHS ENDED
                                                  ------------------   ------------------
                                                  SEPTEMBER 30, 2006   SEPTEMBER 30, 2006
                                                  ------------------   ------------------
                                                               (In thousands)
Revenue Bonds                                         $  133,589           $  269,569
Equity Investments in LIHTC Properties                   388,268              758,944
Agency Loans (Fannie Mae/Freddie Mac/
    Conduit & Others)                                    276,992              864,995
CharterMac Direct*                                       167,850              319,050
CharterMac Urban Capital**                                   834                  834
                                                      ----------           ----------
    TOTAL                                             $  967,533           $2,213,392
                                                      ==========           ==========
*    For the three months ended September 30, 2006, American Mortgage Acceptance
     Company  ("AMAC") funded  $140,550 and the remaining  $27,300 was funded by
     ARCap  Investors,  LLC  ("ARCap") or a fund managed by ARCap.  For the nine
     months ended  September  30, 2006,  AMAC funded  $291,750 and the remaining
     $27,300 was funded by ARCap or a fund managed by ARCap.
**   Reflects  capital  deployed  to fund a  previous  commitment  and a  future
     commitment.

The following is a summary of investment fund closings for the third quarter and
nine month period ended September 30, 2006:
THREE MONTHS ENDED   NINE MONTHS ENDED
                                                  ------------------   ------------------
                                                  SEPTEMBER 30, 2006   SEPTEMBER 30, 2006
                                                  ------------------   ------------------
                                                               (In thousands)
TAX CREDIT FUNDS
Corporate                                             $209,755             $477,945
Proprietary                                             43,431               83,293
Credit Intermediated                                   175,760              233,135
Other                                                    3,855                7,385
                                                      --------             --------
         TOTAL                                        $432,801             $801,758
                                                      ========             ========
CharterMac's  loan servicing  portfolio totaled  approximately  $18.0 billion at
September 30, 2006. The following is a breakdown of servicing balances:

SERVICING
    (In thousands)

          Interim Servicing                              $8,571,000
          Primary Servicing                              $9,137,000
          Special Servicing                              $  250,000

With the ARCap  acquisition,  CharterMac  servicing  portfolio  has  expanded to
include both special servicing and interim  servicing,  which entails short-term
servicing for conduits prior to the issuance of their securitizations.

CENTERBROOK FINANCIAL LLC

During the three months ended  September  30, 2006,  Centerbrook  Financial  LLC
("Centerbrook"),  the Company's credit intermediation subsidiary,  completed its
second transaction,  providing a pool of credit default swaps in connection with
the  re-securitization  of approximately  $175 million of CharterMac's  existing
multifamily revenue bonds.  Centerbrook's total re-securitization activity since
its inception in June 2006 totaled approximately $979 million.
TERMINATION OF OPTION TO ACQUIRE 49% OF PLACECAPRI CAPITAL ADVISORS

On September 1, 2006, the Company's subsidiary CM Investor,  LLC, terminated its
option to purchase a 49% interest in Capri Capital  Advisors ("CCA") in exchange
for a $6.0 million  termination fee from CCA. In connection with the termination
of the option, CCA repaid the $20.0 million loan that CharterMac originally made
to CCA in July of 2004, when CCA went through a recapitalization  event. As part
of the  transaction,  CCA  transferred its interest in the investment fund Capri
Urban  Capital  to  CharterMac  and the fund will be  renamed  CharterMac  Urban
Capital  ("CUC").  Formed in 2001,  CUC is an investment  fund focused on making
investments  in multifamily  and  commercial  properties in major urban markets.
CUC's single  investor is the  California  Public  Employees  Retirement  System
("CalPERS"),  although CharterMac has a co-investment agreement in the amount of
2.5% of all capital  requirements.  As of September  30, 2006,  the fund had $58
million in assets under  management,  with a  commitment  from CalPERS for up to
$135 million. In connection with the termination,  CharterMac recorded a gain on
sale of approximately  $6.9 million,  of which $6.0 million is attributed to the
termination  fee and  approximately  $900,000 is  attributed to the value of the
management agreement among a subsidiary and CUC.

CHARTERMAC REAL ESTATE SECURITIES

During October,  2006, CharterMac decided to cease operations of CharterMac Real
Estate  Securities  ("CRES"),  its Kansas City-based real estate securities fund
management  division.  In  connection  with the  closure of this  business,  the
convertible  securities that were given to CRES' founder will be returned to the
Company,  in addition to the  Company's  $5 million  investment  in one of CRES'
investment  funds.  As a result,  the Company  recognized a goodwill  impairment
charge of approximately  $0.9 million to account for the portion of CharterMac's
total  investment in and advances to CRES that were not expected to be recovered
and wrote-off the $1.6 million  unamortized  balance of other intangible  assets
recognized at the time of the acquisition.  While these write-offs  effected our
net income for the quarter  ended  September  30, 2006,  they did not impact the
Company's CAD.

CONSOLIDATED PARTNERSHIPS

As previously  reported,  CharterMac's  earnings  results include the results of
Low-Income Housing Tax Credit ("LIHTC")  Partnerships  consolidated  pursuant to
FASB  Interpretation 46 ( R ), as well as other LIHTC and Property  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.

In  connection  with the ARCap  acquisition,  we also sponsor funds to syndicate
investments  in Commercial  Mortgage  Backed  Securities  and  re-securitization
trusts  ("CMBS  Partnerships").  We  maintain  an equity  interest in these CMBS
funds.

MANAGEMENT CONFERENCE CALL

Management  will conduct a conference  call today at 10:00 a.m.  Eastern Time to
review the  Company's  third quarter and nine months  financial  results for the
period ended September 30, 2006. Investors,  brokers, analysts, and shareholders
wishing to participate should call (800) 946-0706. A webcast of the presentation
will be  available  live and can be  accessed  through  the  Company's  website,
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  Tuesday,  November 14, 2006, at
(888) 203-1112 (Passcode 5548362) or on our website, through Friday, December 8,
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 real
estate  investment  products to  institutional  and retail  investors.  For more
information,  please visit CharterMac's website at  http://www.chartermac.com or
contact the Investor Relations Department directly at 800-831-4826.
CHARTERMAC AND SUBSIDIARIES
                             SELECTED FINANCIAL DATA
                    (In thousands, except per share amounts)
==============================
                                                              September 30,     December 31,
                                                                  2006              2005
                                                              -------------     ------------
                                                               (Unaudited)
Revenue bonds - at fair value                                   $2,505,706       $2,294,787
                                                                ----------       ----------
Net addition to assets from consolidation of partnerships       $4,989,300       $3,365,685
                                                                ----------       ----------
Total assets                                                    $9,000,391       $6,978,828
                                                                ----------       ----------

Liabilities:
  Financing arrangements                                        $1,730,629       $1,429,692
                                                                ----------       ----------
  Preferred shares of subsidiary (subject to mandatory
   repurchase)                                                  $  273,500       $  273,500
                                                                ----------       ----------
  Notes payable                                                 $  399,837       $  304,888
                                                                ----------       ----------
  Liabilities of consolidated partnerships                      $2,369,289       $1,627,556
                                                                ----------       ----------

Total liabilities                                               $5,017,698       $3,814,911
                                                                ----------       ----------

Minority interests in consolidated subsidiaries                 $  251,940       $  262,274
                                                                ----------       ----------
Preferred shares of subsidiary (not subject to mandatory
  repurchase)                                                   $  104,000       $  104,000
                                                                ----------       ----------
Partners' interests in consolidated partnerships                $2,627,758       $1,747,808
                                                                ----------       ----------

Total shareholders' equity                                      $  998,995       $1,049,835
                                                                ----------       ----------
-------------------------------------------------------------------------------
                                                                      Three Months Ended September 30,
                                              -------------------------------------------------------------------------------
                                                               2006                                     2005
                                              --------------------------------------    -------------------------------------
                                                                                 (Unaudited)
                                                  As                         As            As                        As
                                               Reported  Adjustments(1)  Adjusted(1)    Reported  Adjustments(1)  Adjusted(1)
                                               --------  --------------  -----------    --------  --------------  -----------
Total revenues                                 $ 107,019   $   4,664      $ 102,355     $ 78,844    $   5,322     $  84,166

Interest expense                                 (30,181)         --        (30,181)     (18,214)          --       (18,214)
General and administrative                       (43,678)         --        (43,678)     (30,370)          --       (30,370)
Depreciation and amortization                    (11,033)         --        (11,033)     (16,302)          --       (16,302)
Write-off of intangible assets                    (2,547)         --         (2,547)          --           --            --
Loss on impairment of assets                        (394)         --           (394)        (804)          --          (804)
Expenses and equity losses of consolidated
  partnerships                                  (100,458)    100,458             --      (85,980)      85,980            --
Equity and other income                           (3,320)      9,640          6,320          414           (7)          407
Gain on sale or repayment of loans and
  revenue bonds                                    8,289          --          8,289        3,962           --         3,962

Income allocated to preferred shareholders
  and minority interests                          (7,327)         --         (7,327)      (9,183)          --        (9,183)

Loss allocated to partners of consolidated
  partnerships                                   105,434    (105,434)            --       91,295      (91,295)           --
                                               ---------   ---------      ---------     --------    ---------     ---------

Income before income taxes                        21,804          --         21,804       13,662           --        13,662

Income tax (provision) benefit                    (7,233)         --         (7,233)       5,016           --         5,016
                                               ---------   ---------      ---------     --------    ---------     ---------

Net income                                     $  14,571   $      --      $  14,571     $ 18,678    $      --     $  18,678
                                               =========   =========      =========     ========    =========     =========

  4.4% CRA Preferred dividend requirements        (1,188)         --         (1,188)        (832)          --          (832)
                                               ---------   ---------      ---------     --------    ---------     ---------

Net income available to common
  and CRA shareholders                         $  13,383   $      --      $  13,383     $ 17,846    $      --     $  17,846
                                               =========   =========      =========     ========    =========     =========

Net income per share:
   Basic                                       $    0.23   $      --      $    0.23     $   0.31    $      --     $    0.31
                                               =========   =========      =========     ========    =========     =========
   Diluted                                     $    0.23   $      --      $    0.23     $   0.31    $      --     $    0.31
                                               =========   =========      =========     ========    =========     =========

Weighted average shares outstanding:
   Basic                                          58,015          --         58,015       58,059           --        58,059
                                               =========   =========      =========     ========    =========     =========
   Diluted                                        58,396          --         58,396       58,366           --        58,366
                                               =========   =========      =========     ========    =========     =========
CHARTERMAC AND SUBSIDIARIES
                             SELECTED FINANCIAL DATA
                    (In thousands, except per share amounts)
-------------------------------------------------------------------------------
                                                                       Nine Months Ended September 30,
                                               -------------------------------------------------------------------------------
                                                                2006                                     2005
                                               --------------------------------------    -------------------------------------
                                                                                 (Unaudited)
                                                   As                         As             As                         As
                                                Reported  Adjustments(1)  Adjusted(1)     Reported  Adjustments(1)  Adjusted(1)
                                               ---------  --------------  -----------    ---------- --------------  -----------
Total revenues                                 $ 258,389   $   7,037       $ 265,426     $ 215,270     $  15,406     $ 230,676

Interest expense                                 (80,823)         --         (80,823)      (52,594)           --       (52,594)
General and administrative                      (116,105)         --        (116,105)      (89,650)           --       (89,650)
Depreciation and amortization                    (34,561)         --         (34,561)      (33,467)           --       (33,467)
Write-off of intangible assets                    (2,547)         --          (2,547)           --            --            --
Loss on impairment of assets                      (2,665)         --          (2,665)       (1,902)           --        (1,902)
Expenses and equity losses of consolidated
  partnerships                                  (284,633)    284,633              --      (240,229)      240,229            --
Equity and other income                              738       9,635          10,373         1,490            (7)        1,483
Gain on sale or repayment of loans and
  revenue bonds                                   16,257          --          16,257        10,886            --        10,886

Income allocated to preferred shareholders
  and minority interests                         (17,970)         --         (17,970)      (26,241)           --       (26,241)

Loss allocated to partners of consolidated
  partnerships                                   301,305    (301,305)             --       255,628      (255,628)           --
                                               ---------   ---------       ---------     ---------     ---------     ---------

Income before income taxes                        37,385          --          37,385        39,191            --        39,191

Income tax (provision) benefit                    (3,909)         --          (3,909)       13,716            --        13,716
                                               ---------   ---------       ---------     ---------     ---------     ---------

Net income                                     $  33,476   $      --       $  33,476     $  52,907     $      --     $  52,907
                                               =========   =========       =========     =========     =========     =========

  4.4% CRA Preferred dividend requirements        (3,564)         --          (3,564)         (832)           --          (832)
                                               ---------   ---------       ---------     ---------     ---------     ---------

Net income available to common
   and CRA shareholders                        $  29,912   $      --       $  29,912     $  52,075     $      --     $  52,075
                                               =========   =========       =========     =========     =========     =========

Net income per share:
   Basic                                       $    0.51   $      --       $    0.51     $    0.90     $      --     $    0.90
                                               =========   =========       =========     =========     =========     =========
   Diluted                                     $    0.51   $      --       $    0.51     $    0.89     $      --     $    0.89
                                               =========   =========       =========     =========     =========     =========

Weighted average shares outstanding:
   Basic                                          58,409          --          58,409        57,927            --        57,927
                                               =========   =========       =========     =========     =========     =========
   Diluted                                        58,830          --          58,830        58,234            --        58,234
                                               =========   =========       =========     =========     =========     =========
Reconciliation of Net Income to Cash Available for Distribution ("CAD")(2)
--------------------------------   -------------------------------
                                                        Three Months Ended September 30,   Nine Months Ended September 30,
                                                        --------------------------------   -------------------------------
                                                             2006             2005             2006             2005
                                                           --------         --------         --------         --------
(In thousands)
Net income                                                 $ 14,571         $ 18,678         $ 33,476         $ 52,907

4.4% CRA Preferred dividends                                 (1,188)            (832)          (3,564)            (832)
Interest income yield adjustments                             3,651              (77)           4,098             (660)
Fees deferred for GAAP                                       14,394            3,302           23,814           21,758
Depreciation and amortization expense                        11,066           16,302           34,594           33,467
Gain on sale of loans                                        (2,188)          (3,718)          (9,001)         (10,367)
Tax adjustment                                                   63           (2,546)             282          (12,027)
Non-cash compensation                                         9,169            1,523           12,583            5,299
Difference between subsidiary equity distributions
  and income allocated to subsidiary equity holders          (2,978)          (1,018)         (13,212)          (4,372)
Non-cash equity income                                       (6,402)             200           (5,754)             234
Loss on impairment of assets                                    395              803            2,665            1,902
Other, net                                                      538               24              130              114
                                                           --------         --------         --------         --------
CAD                                                        $ 41,091         $ 32,641         $ 80,111         $ 87,423
                                                           ========         ========         ========         ========
(1) As previously reported, CharterMac's earnings results include the results of
LIHTC and Property Partnerships  consolidated pursuant to FASB Interpretation 46
( R ), as well as other LIHTC and Property 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  of these  partnerships,
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. We act as a
general  partner of the CMBS  Partnerships  we sponsor  and own a portion of the
funds. Adjusted equity income includes our proportionate share of the profits as
well as other  allocations for general partner  services.  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. CAD is the performance
measure  used by our  chief  decision-makers  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.

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