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): MAY 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))


<PAGE>



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

On May 10, 2006, CharterMac (the "Company") (NYSE: CHC) released a press release
announcing  its financial  results for the first quarter ended March 31, 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 May 10,  2006,  "CharterMac  Reports  First  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


May 10, 2006


<PAGE>



AT THE COMPANY
Brenda Abuaf, Director of Shareholder Services
(800) 831-4826



           CHARTERMAC REPORTS FIRST QUARTER FINANCIAL RESULTS FOR 2006



NEW YORK,  NY - MAY 10, 2006 -  CharterMac  (the  "Company")  (NYSE:  CHC) today
announced financial results for the first quarter ended March 31, 2006.

"During the first quarter,  our mortgage banking business had strong results and
we made  meaningful  progress on our new business  initiatives,"  stated Marc D.
Schnitzer,  Chief  Executive  Officer and  President  of  CharterMac.  "Although
origination  volume across our business lines is typically  slowest in the first
quarter,  we have built a solid pipeline to meet our reported  production  goals
for the remainder of 2006. Due to the seasonality  associated with our business,
our  earnings  and cash  available  for  distribution  per share are not  earned
ratably  throughout  the year.  Therefore,  while our payout ratio is above 100%
this quarter,  we are comfortable that our annual dividend will continue to have
adequate coverage."

FINANCIAL HIGHLIGHTS

CharterMac  reported total revenues of approximately $71.1 million for the three
months  ended March 31,  2006.  Adjusted  to exclude the impact of  consolidated
partnerships,  as  discussed  on the third  page of this  press  release,  total
revenues were approximately $75.5 million, which represents an increase of 23.7%
as compared to similarly  adjusted  revenues of approximately  $61.0 million for
the three months ended March 31, 2005.

For the three  months  ended  March 31,  2006,  CharterMac  earned net income of
approximately  $14.7  million,  representing  a decrease  of 0.9% as compared to
approximately  $14.8  million for the three months  ended March 31,  2005.  On a
diluted per share  basis,  net income was $0.23 for the three months ended March
31,  2006,  representing  a decrease  of 8.0% as compared to $0.25 for the three
months ended March 31, 2005.  While the higher level of revenues and an increase
in non-cash  gains  generated in our mortgage  banking  business  contributed to
higher pre-tax  earnings,  net income  declined due to the decreased  income tax
benefit  recognized.  The decline in the recognized tax benefits pertains to the
Company's  deferred  tax  assets,  the  benefits  related  to which  will not be
recognized until collection is reasonably assured. Net income per share was also
impacted by dividend  requirements for a new class of preferred shares issued in
2005.

For the three months  ended March 31,  2006,  CharterMac's  Cash  Available  for
Distribution   ("CAD"),   the  Company's  primary   performance   measure,   was
approximately  $15.3  million,  representing  a decrease  of 5.5% as compared to
approximately  $16.1  million for the three months  ended March 31,  2005.  On a
diluted  per share  basis,  CAD was $0.26 for the three  months  ended March 31,
2006,  representing a decrease of 7.1% as compared to $0.28 for the three months
ended March 31, 2005.  The Company's CAD results were impacted  primarily by the
timing of receipt of fund  sponsorship  fees,  higher  interest  expense and the
preferred dividend requirements noted above.


CharterMac's  present  quarterly  dividend on an  annualized  basis is $1.68 per
share,  which  represents  an 8.8% yield based upon the $19.05 per share closing
price on May 9, 2006.


<PAGE>



The  following is a summary of the  production  volume for each of  CharterMac's
business lines in the first quarter of 2006:

MORTGAGE BANKING

During  the  three  months  ended  March 31,  2006,  the  Company's  subsidiary,
CharterMac Mortgage Capital,  originated  approximately  $281.2 million of loans
for Fannie Mae,  Freddie Mac and several Wall Street conduit firms.  As of March
31, 2006, CharterMac Mortgage Capital serviced a loan portfolio of approximately
$8.9 billion.

FUND MANAGEMENT

During the first quarter of 2006,  CharterMac's  subsidiary,  CharterMac Capital
raised  approximately  $60.9  million  of equity for  investments  in tax credit
properties throughout the United States. Of the $60.9 million, $57.4 million was
raised  through  credit  intermediated  funds in which the  investors  receive a
specified rate of return.  In addition,  during the three months ended March 31,
2006, CharterMac Capital, on behalf of investment funds, made equity investments
in tax credit properties totaling $120.5 million.

PORTFOLIO INVESTING

During the three  months  ended March 31,  2006,  CharterMac  acquired  mortgage
revenue bonds  totaling  approximately  $40.5  million in par value,  secured by
affordable multifamily properties aggregating 814 units.

As of March 31, 2006,  CharterMac  had ownership  interests in mortgage  revenue
bonds  with a fair  value of  approximately  $2.5  billion,  secured  by  52,103
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
6.6%,  a  weighted  average  maturity  of  35  years,  and  a  weighted  average
pre-payment lockout of 12 years.

SHARE REPURCHASE PLAN

Subsequent  to the quarter end,  CharterMac  repurchased  7,200 of the Company's
common shares for approximately  $137,000. The repurchases were made in the open
market and are pursuant to the Company's  previously  announced share repurchase
plan.

CONSOLIDATED PARTNERSHIPS

As previously  reported,  CharterMac's  earnings  results include the results of
partnerships  consolidated pursuant to FASB Interpretation 46R, 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.


<PAGE>



MANAGEMENT CONFERENCE CALL

Management  will  conduct  a  conference  call  today to  review  the  Company's
financial results for the period ended March 31, 2006. The conference call is at
10:00 a.m.  Eastern Time.  Callers will be invited to ask questions.  Investors,
brokers,  analysts,  and shareholders  wishing to participate  should call (800)
475-3716.  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,  May 14, 2006, at (888)  203-1112  (Passcode
7768184) or on our website, through Wednesday, May 24, 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,  with a strong core focus on the
multifamily  industry.  CharterMac  offers  capital  solutions to developers and
owners of  multifamily  and  commercial  real estate  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>

                                                             ========================
                                                              March 31,   December 31,
                                                                2006          2005
                                                             ----------   -----------
                                                             (Unaudited)
<S>                                                          <C>           <C>
Revenue bonds - at fair value                                $2,310,468    $2,294,787
                                                             ----------    ----------
Net addition to assets from consolidation of partnerships    $3,415,621    $3,365,685
                                                             ----------    ----------
Total assets                                                 $6,973,510    $6,978,828
                                                             ----------    ----------

Liabilities:
  Financing arrangements                                     $1,521,959    $1,429,692
                                                             ----------    ----------
  Preferred shares of subsidiary (subject to mandatory
      repurchase)                                            $  273,500    $  273,500
                                                             ----------    ----------
  Notes payable                                              $  200,325    $  304,888
                                                             ----------    ----------
  Liabilities of consolidated partnerships                   $1,528,615    $1,627,556
                                                             ----------    ----------

Total liabilities                                            $3,689,125    $3,814,911
                                                             ----------    ----------

Minority interests in subsidiaries                           $  258,999    $  262,274
                                                             ----------    ----------
Preferred shares of subsidiary (not subject to mandatory
       repurchase)                                           $  104,000    $  104,000
                                                             ----------    ----------
Partners' interests in consolidated partnerships             $1,895,395    $1,747,808
                                                             ----------    ----------

Total shareholders' equity                                   $1,025,991    $1,049,835
                                                             ----------    ----------

</TABLE>
<TABLE>
<CAPTION>

                                                     ===============================================================================
                                                                                   Three Months Ended
                                                                                       March 31,
                                                     -------------------------------------------------------------------------------
                                                                      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                                        $ 71,098     $ 4,408       $ 75,506      $ 57,946    $ 3,088       $ 61,034

Interest expense                                       (21,831)         --        (21,831)      (15,305)        --        (15,305)
General and administrative                             (31,768)         --        (31,768)      (26,212)        --        (26,212)
Depreciation and amortization                           (8,913)         --         (8,913)       (7,696)        --         (7,696)
Expenses and equity losses of consolidated
    partnerships                                       (84,376)     84,376             --       (67,875)    67,875             --
Equity and other income                                    752          (3)           749           524         --            524
Gain on sale of loans and repayment of revenue
    bonds                                                5,430          --          5,430         1,696         --          1,696

Income allocated to preferred shareholders
    and minority interests                              (7,435)         --         (7,435)       (7,621)        --         (7,621)
Loss allocated to partners of consolidated
    partnerships                                        88,781     (88,781)            --        70,963    (70,963)            --
                                                      --------     -------       --------      --------    -------       --------

Income before income taxes                              11,738          --         11,738         6,420         --          6,420

Income tax benefit                                       2,919          --          2,919         8,365         --          8,365
                                                      --------     -------       --------      --------    -------       --------

Net income                                            $ 14,657     $    --       $ 14,657      $ 14,785    $    --       $ 14,785
                                                                   =======       ========      ========    =======       ========
    4.4% CRA Preferred dividend requirements            (1,188)         --         (1,188)           --         --             --
                                                      --------     -------       --------      --------    -------       --------
Net income available to shareholders                  $ 13,469     $    --       $ 13,469      $ 14,785    $    --       $ 14,785
                                                      ========     =======       ========      ========    =======       ========

Net income per share:
            Basic                                     $   0.23     $    --       $   0.23      $   0.26    $    --       $   0.26
                                                      ========     =======       ========      ========    =======       ========
            Diluted                                   $   0.23     $    --       $   0.23      $   0.25    $    --       $   0.25
                                                      ========     =======       ========      ========    =======       ========

Weighted average shares outstanding:
            Basic                                       58,578          --         58,578        57,821         --         57,821
                                                      ========     =======       ========      ========    =======       ========
            Diluted                                     58,895          --         58,895        58,236         --         58,236
                                                      ========     =======       ========      ========    =======       ========

</TABLE>


<PAGE>



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

<TABLE>
<CAPTION>

                                                           ======================
                                                             Three Months Ended
                                                                  March 31,
                                                           ----------------------
                                                             2006          2005
                                                           ----------------------
                                                                 (Unaudited)
<S>                                                        <C>           <C>
Net Income                                                 $ 14,657      $ 14,785
4.4% CRA Preferred dividends                                 (1,188)           --
Mortgage revenue bond yield adjustments                         163          (490)
Fees deferred for GAAP                                         (837)        4,430
Depreciation and amortization expense                         8,913         7,696
Gain on sale of loans                                        (4,623)       (1,637)
Tax adjustment                                                   32        (8,365)
Non-cash compensation                                         2,035         1,958
Difference between subsidiary equity distributions and
    income allocated to subsidiary equity holders            (3,025)       (2,575)
Other, net                                                     (872)          335
                                                           --------      --------
CAD                                                        $ 15,255      $ 16,137
                                                           ========      ========

</TABLE>

(1) As previously reported, CharterMac's earnings results include the results of
partnerships  consolidated pursuant to FASB Interpretation 46R, 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.  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_march2006-charter.txt", "description": "CHARTERMAC MARCH 2006 PRESS RELEASE", "secsgml_size_bytes": 25587}]
{"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": "06823414"}, "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"}}
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): MAY 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 May 10, 2006, CharterMac (the "Company") (NYSE: CHC) released a press release
announcing  its financial  results for the first quarter ended March 31, 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 May 10,  2006,  "CharterMac  Reports  First  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

May 10, 2006
AT THE COMPANY
Brenda Abuaf, Director of Shareholder Services
(800) 831-4826

           CHARTERMAC REPORTS FIRST QUARTER FINANCIAL RESULTS FOR 2006

NEW YORK,  NY - MAY 10, 2006 -  CharterMac  (the  "Company")  (NYSE:  CHC) today
announced financial results for the first quarter ended March 31, 2006.

"During the first quarter,  our mortgage banking business had strong results and
we made  meaningful  progress on our new business  initiatives,"  stated Marc D.
Schnitzer,  Chief  Executive  Officer and  President  of  CharterMac.  "Although
origination  volume across our business lines is typically  slowest in the first
quarter,  we have built a solid pipeline to meet our reported  production  goals
for the remainder of 2006. Due to the seasonality  associated with our business,
our  earnings  and cash  available  for  distribution  per share are not  earned
ratably  throughout  the year.  Therefore,  while our payout ratio is above 100%
this quarter,  we are comfortable that our annual dividend will continue to have
adequate coverage."

FINANCIAL HIGHLIGHTS

CharterMac  reported total revenues of approximately $71.1 million for the three
months  ended March 31,  2006.  Adjusted  to exclude the impact of  consolidated
partnerships,  as  discussed  on the third  page of this  press  release,  total
revenues were approximately $75.5 million, which represents an increase of 23.7%
as compared to similarly  adjusted  revenues of approximately  $61.0 million for
the three months ended March 31, 2005.

For the three  months  ended  March 31,  2006,  CharterMac  earned net income of
approximately  $14.7  million,  representing  a decrease  of 0.9% as compared to
approximately  $14.8  million for the three months  ended March 31,  2005.  On a
diluted per share  basis,  net income was $0.23 for the three months ended March
31,  2006,  representing  a decrease  of 8.0% as compared to $0.25 for the three
months ended March 31, 2005.  While the higher level of revenues and an increase
in non-cash  gains  generated in our mortgage  banking  business  contributed to
higher pre-tax  earnings,  net income  declined due to the decreased  income tax
benefit  recognized.  The decline in the recognized tax benefits pertains to the
Company's  deferred  tax  assets,  the  benefits  related  to which  will not be
recognized until collection is reasonably assured. Net income per share was also
impacted by dividend  requirements for a new class of preferred shares issued in
2005.

For the three months  ended March 31,  2006,  CharterMac's  Cash  Available  for
Distribution   ("CAD"),   the  Company's  primary   performance   measure,   was
approximately  $15.3  million,  representing  a decrease  of 5.5% as compared to
approximately  $16.1  million for the three months  ended March 31,  2005.  On a
diluted  per share  basis,  CAD was $0.26 for the three  months  ended March 31,
2006,  representing a decrease of 7.1% as compared to $0.28 for the three months
ended March 31, 2005.  The Company's CAD results were impacted  primarily by the
timing of receipt of fund  sponsorship  fees,  higher  interest  expense and the
preferred dividend requirements noted above.

CharterMac's  present  quarterly  dividend on an  annualized  basis is $1.68 per
share,  which  represents  an 8.8% yield based upon the $19.05 per share closing
price on May 9, 2006.
The  following is a summary of the  production  volume for each of  CharterMac's
business lines in the first quarter of 2006:

MORTGAGE BANKING

During  the  three  months  ended  March 31,  2006,  the  Company's  subsidiary,
CharterMac Mortgage Capital,  originated  approximately  $281.2 million of loans
for Fannie Mae,  Freddie Mac and several Wall Street conduit firms.  As of March
31, 2006, CharterMac Mortgage Capital serviced a loan portfolio of approximately
$8.9 billion.

FUND MANAGEMENT

During the first quarter of 2006,  CharterMac's  subsidiary,  CharterMac Capital
raised  approximately  $60.9  million  of equity for  investments  in tax credit
properties throughout the United States. Of the $60.9 million, $57.4 million was
raised  through  credit  intermediated  funds in which the  investors  receive a
specified rate of return.  In addition,  during the three months ended March 31,
2006, CharterMac Capital, on behalf of investment funds, made equity investments
in tax credit properties totaling $120.5 million.

PORTFOLIO INVESTING

During the three  months  ended March 31,  2006,  CharterMac  acquired  mortgage
revenue bonds  totaling  approximately  $40.5  million in par value,  secured by
affordable multifamily properties aggregating 814 units.

As of March 31, 2006,  CharterMac  had ownership  interests in mortgage  revenue
bonds  with a fair  value of  approximately  $2.5  billion,  secured  by  52,103
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
6.6%,  a  weighted  average  maturity  of  35  years,  and  a  weighted  average
pre-payment lockout of 12 years.

SHARE REPURCHASE PLAN

Subsequent  to the quarter end,  CharterMac  repurchased  7,200 of the Company's
common shares for approximately  $137,000. The repurchases were made in the open
market and are pursuant to the Company's  previously  announced share repurchase
plan.

CONSOLIDATED PARTNERSHIPS

As previously  reported,  CharterMac's  earnings  results include the results of
partnerships  consolidated pursuant to FASB Interpretation 46R, 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 to  review  the  Company's
financial results for the period ended March 31, 2006. The conference call is at
10:00 a.m.  Eastern Time.  Callers will be invited to ask questions.  Investors,
brokers,  analysts,  and shareholders  wishing to participate  should call (800)
475-3716.  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,  May 14, 2006, at (888)  203-1112  (Passcode
7768184) or on our website, through Wednesday, May 24, 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,  with a strong core focus on the
multifamily  industry.  CharterMac  offers  capital  solutions to developers and
owners of  multifamily  and  commercial  real estate  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)
========================
                                                              March 31,   December 31,
                                                                2006          2005
                                                             ----------   -----------
                                                             (Unaudited)
Revenue bonds - at fair value                                $2,310,468    $2,294,787
                                                             ----------    ----------
Net addition to assets from consolidation of partnerships    $3,415,621    $3,365,685
                                                             ----------    ----------
Total assets                                                 $6,973,510    $6,978,828
                                                             ----------    ----------

Liabilities:
  Financing arrangements                                     $1,521,959    $1,429,692
                                                             ----------    ----------
  Preferred shares of subsidiary (subject to mandatory
      repurchase)                                            $  273,500    $  273,500
                                                             ----------    ----------
  Notes payable                                              $  200,325    $  304,888
                                                             ----------    ----------
  Liabilities of consolidated partnerships                   $1,528,615    $1,627,556
                                                             ----------    ----------

Total liabilities                                            $3,689,125    $3,814,911
                                                             ----------    ----------

Minority interests in subsidiaries                           $  258,999    $  262,274
                                                             ----------    ----------
Preferred shares of subsidiary (not subject to mandatory
       repurchase)                                           $  104,000    $  104,000
                                                             ----------    ----------
Partners' interests in consolidated partnerships             $1,895,395    $1,747,808
                                                             ----------    ----------

Total shareholders' equity                                   $1,025,991    $1,049,835
                                                             ----------    ----------
===============================================================================
                                                                                   Three Months Ended
                                                                                       March 31,
                                                     -------------------------------------------------------------------------------
                                                                      2006                                     2005
                                                     --------------------------------------    -------------------------------------
                                                                                        (Unaudited)
                                                         As                         As            As                        As
                                                      Reported  Adjustments(1)  Adjusted(1)    Reported  Adjustments(1)  Adjusted(1)
                                                      --------  --------------  -----------    --------  --------------  -----------
Total revenues                                        $ 71,098     $ 4,408       $ 75,506      $ 57,946    $ 3,088       $ 61,034

Interest expense                                       (21,831)         --        (21,831)      (15,305)        --        (15,305)
General and administrative                             (31,768)         --        (31,768)      (26,212)        --        (26,212)
Depreciation and amortization                           (8,913)         --         (8,913)       (7,696)        --         (7,696)
Expenses and equity losses of consolidated
    partnerships                                       (84,376)     84,376             --       (67,875)    67,875             --
Equity and other income                                    752          (3)           749           524         --            524
Gain on sale of loans and repayment of revenue
    bonds                                                5,430          --          5,430         1,696         --          1,696

Income allocated to preferred shareholders
    and minority interests                              (7,435)         --         (7,435)       (7,621)        --         (7,621)
Loss allocated to partners of consolidated
    partnerships                                        88,781     (88,781)            --        70,963    (70,963)            --
                                                      --------     -------       --------      --------    -------       --------

Income before income taxes                              11,738          --         11,738         6,420         --          6,420

Income tax benefit                                       2,919          --          2,919         8,365         --          8,365
                                                      --------     -------       --------      --------    -------       --------

Net income                                            $ 14,657     $    --       $ 14,657      $ 14,785    $    --       $ 14,785
                                                                   =======       ========      ========    =======       ========
    4.4% CRA Preferred dividend requirements            (1,188)         --         (1,188)           --         --             --
                                                      --------     -------       --------      --------    -------       --------
Net income available to shareholders                  $ 13,469     $    --       $ 13,469      $ 14,785    $    --       $ 14,785
                                                      ========     =======       ========      ========    =======       ========

Net income per share:
            Basic                                     $   0.23     $    --       $   0.23      $   0.26    $    --       $   0.26
                                                      ========     =======       ========      ========    =======       ========
            Diluted                                   $   0.23     $    --       $   0.23      $   0.25    $    --       $   0.25
                                                      ========     =======       ========      ========    =======       ========

Weighted average shares outstanding:
            Basic                                       58,578          --         58,578        57,821         --         57,821
                                                      ========     =======       ========      ========    =======       ========
            Diluted                                     58,895          --         58,895        58,236         --         58,236
                                                      ========     =======       ========      ========    =======       ========
Reconciliation of Net Income to Cash Available for Distribution ("CAD")(2)
                                 (In thousands)
======================
                                                             Three Months Ended
                                                                  March 31,
                                                           ----------------------
                                                             2006          2005
                                                           ----------------------
                                                                 (Unaudited)
Net Income                                                 $ 14,657      $ 14,785
4.4% CRA Preferred dividends                                 (1,188)           --
Mortgage revenue bond yield adjustments                         163          (490)
Fees deferred for GAAP                                         (837)        4,430
Depreciation and amortization expense                         8,913         7,696
Gain on sale of loans                                        (4,623)       (1,637)
Tax adjustment                                                   32        (8,365)
Non-cash compensation                                         2,035         1,958
Difference between subsidiary equity distributions and
    income allocated to subsidiary equity holders            (3,025)       (2,575)
Other, net                                                     (872)          335
                                                           --------      --------
CAD                                                        $ 15,255      $ 16,137
                                                           ========      ========
(1) As previously reported, CharterMac's earnings results include the results of
partnerships  consolidated pursuant to FASB Interpretation 46R, 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.  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.

                                       ###