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Centerline First to Receive Freddie Mac Fully Delegated Underwriting Status Latest Transaction Is Villa Nueva Apartments

McLean, VA – Centerline Capital Group, part of Centerline Holding Company (NYSE:  CHC) is the first multifamily lender to achieve fully delegated status under the Freddie Mac Delegated Underwriting for Targeted Affordable Housing^SM. Centerline completed the first financing package under this designation for Casa Familiar, a non-profit organization, and Steadfast Residential Properties, an affordable housing developer, to purchase and refurbish Villa Nueva Apartments in San Diego.

Freddie Mac (NYSE: FRE) Delegated Underwriting allows approved lenders to fully underwrite loans for Freddie Mac in accordance with the Delegated Underwriting Guide. Lenders receive expedited processing and flexibility in exchange for sharing risk when underwriting multifamily mortgages secured by targeted affordable properties that meet certain minimum rent or income restrictions.

Delegated lenders first work on receiving initial underwriting authority for loans from Freddie Mac. Then they work to receive fully Delegated Underwriting status.

"We're excited that our efforts towards achieving fully delegated underwriting are now a reality," said Kimball Griffith, vice president of Multifamily Affordable Sales and Investments for Freddie Mac. "Centerline now originates loans, and then underwrites them on our behalf in accordance with our Delegated Underwriting Guide. Providing greater speed and ease of execution makes Freddie Mac and Centerline more competitive in the market, as well as benefiting the borrower."

Rachel Diller, a director in the Commercial Real Estate Group of Centerline Capital Group, noted, "Centerline has worked with Freddie Mac on achieving fully delegated status for the past two years. We are proud to be the first to achieve it."

Since entering the delegation process, Centerline closed 37 transactions, including Villa Nueva, amounting to more than $285 million in total financing. "And we have eight more deals expected to close by year end," said Pete Nichol, a senior vice president of the Affordable Housing Group of Centerline Capital Group. "The delegated underwriting model has allowed us to increase responsible affordable housing lending through expedited processing. Given current conditions in the credit markets, delivering capital for affordable housing is more important than ever."

Villa Nueva Apartments

The Centerline commercial real estate and affordable housing team of Diller, Nichol and Evan Williams, an assistant vice president in the Commercial Real Estate Group, arranged a $37.5 million tax-exempt bond financing package for Villa Nueva Apartments in San Diego. Centerline also served as tax credit equity provider to complete a $63.7 million financing package for the purchase, refurbishment and operation of the 398-unit apartment property. Freddie Mac provided a credit enhancement.

Centerline provided expedited processing to the borrower, Steadfast Residential Properties. The borrower utilized Freddie Mac's Low Income Housing Tax Credit Moderate Rehabilitation product to provide the existing residents with upgraded apartments at similar rents due to the Section 8 rent subsidies.

Villa Nueva Apartments, built in 1970, is a green property that includes plans for an energy efficient solar system to reduce energy costs over time. Villa Nueva features on-site daycare, a computer center and access to community services.

About Freddie Mac

Since the launching of Freddie Mac's current multifamily business in 1993, Freddie Mac has purchased more than $165 billion in multifamily mortgages, financing rental housing for more than four million families.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

About Centerline Capital Group

Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE: CHC), lends, invests and manages capital, with a core focus on the real estate industry. Centerline Capital Group is headquartered in New York, New York and has over 500 employees in nine offices throughout the United States. For more information, please visit Centerline's website at http://www.centerline.com or contact the Investor Relations Department directly at 800-831-4826.

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