Centerline Closes $140.4 Million LIHTC Fund

Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE:CHC), today announced the Company's Affordable Housing Group closed on the final segment of Centerline Credit Enhanced Partnership LP - Series K, Number 1 ("CCEP-K"), a $140.4 million low-income housing tax credit ("LIHTC") investment fund. The initial segment of CCEP-K closed on December 11, 2007. The final segment of CCEP-K expands the investment fund from $71.9 million to $140.4 million. Natixis Financial Products, Inc. ("Natixis") provided a credit default swap to ensure the investor in CCEP-K receives a minimum internal rate of return. Centerline Financial LLC ("Centerline Financial"), Centerline's credit risk products subsidiary, has agreed to back Natixis' obligation, and Centerline Financial and Natixis will share credit intermediation fees.

"We are very pleased to have closed CCEP-K," said Andrew J. Weil, Executive Managing Director of Centerline and head of the Affordable Housing Group. "CCEP-K is the first LIHTC investment fund Centerline has completed in 2008. It demonstrates continued investor demand for quality affordable housing investment products offered by strong sponsors such as Centerline."

CCEP-K will apply proceeds from this offering to provide equity financing to develop 17 affordable multifamily properties. Additional financing, for seven of the 17 properties, will be supplied by proceeds from $87.5 million of tax-exempt mortgage revenue bonds acquired by Centerline.

Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE:CHC), is an alternative asset manager with a core focus on real estate and more than $11.6 billion of assets under management. Centerline is headquartered in New York, New York and has over 500 employees in nine offices throughout the United States.