Private Placement of CRA Shares Reported

Charter Municipal Mortgage Acceptance Co., New York, has reported the private placement of 575,705 Series A Convertible Community Reinvestment Act Preferred Shares with an unnamed financial institution at $17.37 per share.Net proceeds of the offering will be used mainly to buy additional tax-exempt revenue bonds secured by multifamily housing properties. CharterMac said it believes, based on a legal opinion, that an investment in CRA Preferred Shares allows financial institutions to "receive positive consideration" under the CRA investment test. "Through a proprietary allocation methodology developed by CharterMac, these financial institutions are able to trace their investment to specific affordable housing properties financed by CharterMac that are located in the financial institutions' self-defined geographic CRA assessment area," the company said. CharterMac, which invests in and services multifamily housing debt, can be found online at http://www.chartermac.com.