SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)


   X     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15(d) OF THE SECURITIES
-------  EXCHANGE ACT OF 1934


For the quarterly period ended September 30, 2002


                                       OR


         TRANSITION  REPORT  PURSUANT  TO  SECTION 13 OR 15(d) OF THE SECURITIES
-------  EXCHANGE ACT OF 1934

                         Commission File Number 1-13237


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                  ---------------------------------------------
         (Exact name of Registrant as specified in its Trust Agreement)



                Delaware                                         13-3949418
-------------------------------------------                 --------------------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)



625 Madison Avenue, New York, New York                                  10022
--------------------------------------                               -----------
   (Address of principal executive offices)                           (Zip Code)


Registrant's telephone number, including area code (212) 421-5333


     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
                                             ---  ---


<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in Thousands)
<TABLE>
<CAPTION>

                                                          ============   ============
                                                          September 30,   December 31,
                                                              2002           2001
                                                          ------------   ------------
                                                           (Unaudited)
<S>                                                        <C>            <C>
ASSETS
Revenue Bonds-at fair value                                $ 1,402,979    $ 1,137,715
Investment in ARCap                                             19,054         18,950
Guaranteed investment contracts                                 23,669         18,406
Mortgage servicing rights - net                                 35,665         33,708
Cash and cash equivalents                                       69,537        105,364
Cash and cash equivalents-restricted                             4,868          4,670
Interest receivable - net                                        7,649          6,458
Promissory notes and mortgages receivable                       29,330         45,022
Deferred costs - net                                            43,531         34,666
Goodwill                                                         4,186          9,842
Other intangible assets - net                                   11,437          3,154
Other assets                                                     3,167          3,104
                                                           -----------    -----------

Total assets                                               $ 1,655,072    $ 1,421,059
                                                           ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
   Financing arrangements                                  $   529,014    $   541,796
   Notes payable                                                46,024         56,586
   Interest rate derivatives                                     5,953          2,958
   Accounts payable, accrued expenses and
     other liabilities                                          10,302         13,820
   Deferred income                                               7,679          2,870
   Due to Manager and affiliates                                 2,658          2,266
   Due to FNMA                                                  23,669         18,406
   Distributions payable to preferred shareholders
     of subsidiary                                               4,724          3,693
   Deferred tax liability                                       10,394         10,251
   Distributions payable to convertible CRA shareholders           968            565
   Distributions payable to common shareholders                 13,171         10,448
                                                           -----------    -----------

Total liabilities                                              654,556        663,659
                                                           -----------    -----------

Preferred shares of subsidiary (subject to mandatory
   repurchase)                                                 273,500        218,500
                                                           -----------    -----------

Minority interest in consolidated subsidiary                     4,527          3,652
                                                           -----------    -----------

Commitments and contingencies

Shareholders' equity:
   Beneficial owners' equity - convertible CRA share-
     holders (3,259,297 and 1,882,364 shares, issued and
     outstanding in 2002 and 2001, respectively)                48,630         25,522
   Beneficial owner's equity-manager                             1,499          1,069
   Beneficial owners' equity-other common shareholders
     (100,000,000 shares authorized; 41,168,618 issued
     and 41,160,218 outstanding and 34,834,308
     shares issued and 34,825,908 outstanding in
     2002 and 2001, respectively)                              605,418        511,456
   Treasury shares of beneficial interest (8,400 shares)          (103)          (103)
   Accumulated other comprehensive income (loss)                67,045         (2,696)
                                                           -----------    -----------
Total shareholders' equity                                     722,489        535,248
                                                           -----------    -----------

Total liabilities and shareholders' equity                 $ 1,655,072    $ 1,421,059
                                                           ===========    ===========
</TABLE>

          See accompanying notes to consolidated financial statements
                                       2
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                 (Dollars in thousands except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                  ============================    ============================
                                                       Three Months Ended              Nine Months Ended
                                                          September 30,                   September 30,
                                                  ----------------------------    ----------------------------
                                                      2002            2001            2002            2001
                                                  ----------------------------    ----------------------------
<S>                                               <C>             <C>             <C>             <C>
Revenues:
   Interest income:

     Revenue bonds                                $     22,819    $     18,819    $     67,764    $     51,520
     Temporary investments                                 303             270           1,098             886
     Promissory notes                                      166             168             489             658
   Equity in earnings of ARCap                             555              --           1,664              --
   Mortgage banking fees                                   594              --           3,644              --
   Mortgage servicing fees                               2,050              --           5,912              --
   Other income                                          2,152              50           6,040             590
                                                  ------------    ------------    ------------    ------------
   Total revenues                                       28,639          19,307          86,611          53,654
                                                  ------------    ------------    ------------    ------------

Expenses:
   Interest expense                                      3,850           3,010          11,634          10,313
   Recurring fees relating to the Private Label
     Tender Option Program                                 811             623           2,289           1,758
   Bond servicing                                          875             618           2,519           1,755
   General and administrative                            4,166             523          14,939           1,995
   Amortization                                          2,024             222           6,024             623
   Income allocated to minority interest                   124              --             377              --
   Provision for loss under FNMA
     DUS product line                                       68              --             596              --
   Loss on impairment of
     revenue bonds                                         532              --             532             400
                                                  ------------    ------------    ------------    ------------

     Total expenses                                     12,450           4,996          38,910          16,844
                                                  ------------    ------------    ------------    ------------

Income before gain on repayments
   of revenue bonds and sales of loans                  16,189          14,311          47,701          36,810

Gain on sales of loans                                   1,533              --           8,467              --

Gain on repayments of revenue bonds                         --              --           3,979             103
                                                  ------------    ------------    ------------    ------------

Income before allocation to preferred
   shareholders of subsidiary                           17,722          14,311          60,147          36,913

   Income allocated to preferred
     shareholders of subsidiary                         (4,724)         (2,962)        (12,541)         (8,885)
                                                  ------------    ------------    ------------    ------------

Income before provision (benefit) for
   income taxes                                         12,998          11,349          47,606          28,028
   (Provision) benefit for income taxes                    656              --            (983)             --
                                                  ------------    ------------    ------------    ------------
Net Income                                        $     13,654    $     11,349    $     46,623    $     28,028
                                                  ============    ============    ============    ============

Allocation of net income to:
   Special distribution to Manager                $      1,294    $        899    $      3,622    $      2,593
                                                  ============    ============    ============    ============
   Manager                                        $        124    $        104    $        430    $        255
                                                  ============    ============    ============    ============
   Common shareholders                            $     11,327    $     10,166    $     40,266    $     23,564
   Convertible CRA shareholders                            909             180           2,305           1,616
                                                  ------------    ------------    ------------    ------------
     Total for shareholders                       $     12,236    $     10,346    $     42,571    $     25,180
                                                  ============    ============    ============    ============

Net income per share
   Basic                                          $       0.28    $        .31    $       1.01    $        .86
                                                  ============    ============    ============    ============
   Diluted                                        $       0.28    $        .31    $       1.01    $        .86
                                                  ============    ============    ============    ============

Weighted average shares
   outstanding :

   Basic                                            44,209,982      32,986,483      42,030,318      29,322,639
                                                  ============    ============    ============    ============
   Diluted                                          44,282,733      33,038,075      42,099,407      29,380,465
                                                  ============    ============    ============    ============
</TABLE>

           See accompanying notes to consolidated financial statements
                                        3

<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CHANGES IN
                              SHAREHOLDERS' EQUITY
                             (Dollars in Thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                           Beneficial                Beneficial
                                             Owners'                   Owners'                                Accumulated
                                             Equity -  Beneficial     Equity-       Treasury                     Other
                                          Convertible    Owner's       Other       Shares of                    Compre-
                                              CRA        Equity -      Common      Beneficial  Comprehensive    hensive
                                          Shareholders   Manager    Shareholders    Interest      Income      (Loss)Income   Total
                                          ------------  --------    ------------   ----------  -------------  ------------   -----

<S>                                          <C>        <C>           <C>            <C>         <C>          <C>          <C>
Balance at January 1, 2002                   $25,522    $  1,069      $511,456       $(103)                   $ (2,696)    $535,248
Comprehensive income:
Net income                                     2,305       4,052        40,266                   $ 46,623                    46,623
                                                                                                 --------
Other comprehensive gain (loss):
  Net unrealized loss on                                                                           (3,095)
   interest rate derivatives
  Net unrealized gain on revenue bonds:
  Unrealized holding gain arising                                                                  76,815
   during the period
  Less:Reclassification adjustment for                                                             (3,979)
   net gain included in net income                                                               --------

Other comprehensive gain:                                                                          69,741      69,741        69,741
                                                                                                 --------
Comprehensive income                                                                             $116,364
                                                                                                 ========
Issuance of convertible CRA shares            22,938                                                                         22,938
Issuance of common shares                                               92,383                                               92,383
Distributions                                 (2,135)     (3,622)      (38,687)                                             (44,444)
                                             -------    --------      --------       -----                    --------     --------

Balance at September 30, 2002                $48,630    $  1,499      $605,418       $(103)                   $ 67,045     $722,489
                                             =======    ========      ========       =====                    ========     ========
</TABLE>
           See accompanying notes to consolidated financial statements
                                       4
<PAGE>



                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in Thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                ======================
                                                                   Nine Months Ended
                                                                     September 30,
                                                                ----------------------
                                                                  2002          2001
                                                                ---------    ---------
<S>                                                             <C>          <C>
Cash flows from operating activities:
   Net income                                                   $  46,623    $  28,028
   Adjustments to reconcile net income to net cash
     provided by operating activities:
   Gain on repayment of revenue bonds                              (3,979)        (103)
   Loss on impairment of revenue bonds                                532          400
   Other amortization                                                 823          623
   Amortization of other intangible assets                            357          355
   Amortization of bond selection costs                             1,354        2,031
   Amortization of mortgage servicing rights                        4,944           --
   Accretion of deferred income and purchase
     accounting adjustment                                             (8)         (93)
   Income allocated to preferred shareholders
     of subsidiary                                                 12,541        8,885
   Equity in earnings of ARCap in excess of
     distributions received                                          (104)          --
   Increase in mortgage servicing rights                           (7,498)          --
   Increase in provision for loss under FNMA DUS product line         596           --
   Income allocated to minority interest                              377           --
   Issuance of shares of subsidiary - compensation expense            498           --
   Changes in operating assets and liabilities:
     Interest receivable                                           (1,191)      (2,258)
     Other assets                                                     (64)        (263)
     Increase in goodwill                                          (2,983)          --
     Increase in due to FNMA                                        5,263           --
     Increase in guaranteed investment contracts                   (5,263)          --
     Increase in deferred income                                    4,809           --
     Accounts payable, accrued expenses and
       other liabilities                                           (3,489)         677
     Deferred tax liability                                           143           --
     Due to Manager and affiliates                                    156          316
                                                                ---------    ---------
Net cash provided by operating activities                          54,437       38,598
                                                                ---------    ---------

Cash flows from investing activities:
   Proceeds from repayment of revenue bonds                        86,130       21,611
   Periodic principal payments of revenue bonds                     4,179        1,092
   Proceeds from repayment of note                                  6,600            5
   Purchase of revenue bonds                                     (279,018)    (123,487)
   Increase in deferred bond selection costs                       (6,629)      (3,365)
   Increase in promissory notes                                    (3,409)      (5,565)
   Increase in cash and cash equivalents - restricted                (198)          --
   Decrease in notes receivable                                    10,562           --
   Principal payments received from loans
     made to properties                                             1,939          151
                                                                ---------    ---------
Net cash used in investing activities                            (179,844)    (109,558)
                                                                ---------    ---------
</TABLE>

                                    Continued
                                        5

<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in Thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                            =========================
                                                                Nine Months Ended
                                                                  September 30,
                                                            -------------------------
                                                               2002           2001
                                                            ------------   ----------
<S>                                                         <C>            <C>
Cash flows from financing activities:
   Distributions paid to the Manager and Common
     shareholders                                               (39,319)     (23,527)
   Distributions paid to preferred shareholders
     of subsidiary                                              (11,510)      (8,885)
   Distributions paid to Convertible CRA
     shareholders                                                (1,732)      (1,788)
   Proceeds from financing arrangements                          54,500      171,500
   Principal repayments of financing arrangements               (67,282)     (96,767)
   Decrease in notes payable - warehouse lines                  (10,562)          --
   Increase in deferred costs relating to the
     Private Label Tender Option Program                           (636)        (568)
   Issuance of common shares                                     92,353      116,331
   Issuance of convertible preferred shares of subsidiary        22,938           --
   Retirement of Convertible CRA Shares                              --       (8,987)
   Increase in fair value of interest rate cap                     (100)          --
   Issuance of preferred stock of subsidiary                     55,000           --
   Increase in deferred costs relating to
     the preferred shares offering                               (2,068)          --
   Increase in other deferred costs                              (2,002)          --
                                                            -----------    ---------
Net cash provided by financing activities                        89,580      147,309
                                                            -----------    ---------

Net (decrease) increase in cash and cash equivalents            (35,827)      76,349
Cash and cash equivalents at the
   beginning of the period                                      105,364       36,116
                                                            -----------    ---------
Cash and cash equivalents at the
   end of the period                                        $    69,537    $ 112,465
                                                            ===========    =========

Supplemental information:
   Interest paid                                            $    10,247    $  10,302
                                                            ===========    =========
   Taxes paid                                               $       582
                                                            ===========

Reclassification of goodwill to intangible assets:

   Decrease in goodwill                                     $    (8,639)
   Increase in intangible assets                                  8,639
                                                            -----------

                                                            $        --
                                                            -----------
</TABLE>

           See accompanying notes to consolidated financial statements
                                        6

<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


NOTE 1 - General

Charter Municipal  Mortgage  Acceptance Company  ("CharterMac"),  along with its
consolidated   subsidiaries  (the  "Company"),  is  a  Delaware  business  trust
principally engaged in the acquisition and ownership (directly or indirectly) of
tax-exempt  multi-family  housing  revenue  bonds  ("Revenue  Bonds")  and other
investments  that produce  tax-exempt  income,  issued by various state or local
governments,  agencies,  or authorities.  Revenue Bonds are primarily secured by
participating   and   non-participating   first  mortgage  loans  on  underlying
properties ("Underlying Properties").

The Company is governed by a board of trustees  comprised  of three  independent
managing  trustees and five managing  trustees who are  affiliated  with Related
Capital Company ("Related"), a nationwide, fully integrated real estate services
firm. CharterMac, through CharterMac Corporation, a wholly-owned subsidiary, has
engaged Related Charter L.P. (the "Manager"), an affiliate of Related, to manage
its  day-to-day  affairs.  CharterMac  has also directly  engaged the Manager to
provide additional management services.

The  consolidated  financial  statements  include the accounts of CharterMac and
four subsidiary business trusts which it controls: CM Holding Trust,  CharterMac
Equity Issuer Trust,  CharterMac  Origination Trust I and CharterMac Owner Trust
I,  and  one  wholly-owned  corporation,   CharterMac  Corporation.   CharterMac
Corporation owns 80% of PW Funding Inc.  ("PWF"),  which is also included in the
consolidated  financial  statements.  All intercompany accounts and transactions
have  been  eliminated  in  consolidation.   Unless  otherwise  indicated,   the
"Company",  as hereinafter used, refers to Charter Municipal Mortgage Acceptance
Company and its consolidated subsidiaries.

The accompanying  interim financial statements have been prepared without audit.
In the opinion of management,  the financial  statements contain all adjustments
(consisting of only normal  recurring  adjustments)  necessary to present fairly
the financial statements of the interim periods.  However, the operating results
for the interim periods may not be indicative of the results for the full year.

Certain  information  and  footnote  disclosures  normally  included  in  annual
financial statements prepared in accordance with accounting principles generally
accepted  in the  United  States of  America  ("GAAP")  have been  condensed  or
omitted.  It is  suggested  that these  financial  statements  should be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's Form 10-K for the year ended December 31, 2001.

The  consolidated  financial  statements  of the Company are prepared  using the
accrual method of accounting in conformity with GAAP, which requires the Manager
to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent  assets and liabilities at the date
of the  financial  statements  as well as the  reported  amounts of revenues and
expenses  during the reporting  period.  Actual  results could differ from those
estimates.  Significant  estimates  in  the  financial  statements  include  the
valuation of the Company's  investments  in Revenue  Bonds,  mortgage  servicing
rights and interest rate derivatives.

Certain  amounts in the 2001  financial  statements  have been  reclassified  to
conform to the 2002 presentation.

New Pronouncements
------------------

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
No. 141, "Business Combinations" (SFAS 141) and Statement No. 142, "Goodwill and
Other Intangible  Assets" (SFAS 142).  These statements  establish new standards
for  accounting  and  reporting for business  combinations  and for goodwill and
intangible assets resulting from business combinations.  SFAS 141 applies to all
business  combinations  initiated  after June 30, 2001. The Company  implemented
SFAS 142 on January 1, 2002.  Implementation  of these statements did not have a
material impact on the Company's financial statements (see Note 4).

                                       7
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


In June 2001,  the FASB issued  SFAS No. 143  "Accounting  for Asset  Retirement
Obligations".  SFAS No. 143  requires  the fair value of a liability or an asset
retirement  obligation  be recorded in the period in which it is incurred.  SFAS
No. 143 does not become effective until January 1, 2003. Management believes the
implementation  of SFAS No. 143 will not have a material impact on the Company's
financial statements.

In August 2001, the FASB issued SFAS No. 144  "Accounting  for the Impairment or
Disposal of Long-Lived  Assets".  SFAS No. 144  supercedes  existing  accounting
literature dealing with impairment and disposal of long-lived assets,  including
discontinued operations. It addresses financial accounting and reporting for the
impairment of long-lived assets and for long-lived assets to be disposed of, and
expands current reporting for discontinued  operations to include disposals of a
"component"  of an entity that has been disposed of or is classified as held for
sale. The Company implemented SFAS No. 144 on January 1, 2002. Implementation of
this  statement  did not  have a  material  impact  on the  Company's  financial
statements.

In April 2002, the FASB issued SFAS No. 145  "Rescission of FASB  Statements No.
4, 44 and 64,  Amendment of FASB  Statement No. 13 and  Technical  Corrections".
SFAS No. 145,  among other  things,  rescinds SFAS No. 4,  "Reporting  Gains and
Losses from Extinguishment of Debt", and accordingly,  the reporting of gains or
losses from the early  extinguishments of debt as extraordinary  items will only
be required if they meet the specific  criteria of extraordinary  items included
in  Accounting  Principles  Board  Opinion  No. 30,  "Reporting  the  Results of
Operations".  The revision of SFAS No. 4 is effective  January 2003.  Management
believes the  implementation  of SFAS No. 145 will not have a material impact on
the Company's financial statements.

In July 2002, the FASB issued SFAS No. 146 "Accounting for Costs Associated with
Exit  or  Disposal  Activities".   SFAS  No.  146  replaces  current  accounting
literature  and  requires  the  recognition  of costs  associated  with  exit or
disposal  activities  when  they  are  incurred  rather  than  at the  date of a
commitment to an exit or disposal plan.  SFAS No. 146 does not become  effective
until January 1, 2003.  Management  believes the  implementation of SFAS No. 146
will not have a material impact on the Company's financial statements.


NOTE 2 - Revenue Bonds

The Company accounts for its investments in Revenue Bonds as  available-for-sale
debt  securities  under the  provisions  of Statement  of  Financial  Accounting
Standards  No.  115,  "Accounting  for  Certain  Investments  in Debt and Equity
Securities".  Accordingly, the Revenue Bonds are carried at their estimated fair
values, with unrealized gains and losses reported in other comprehensive income.

The weighted average interest rate on the outstanding face amount of the Revenue
Bond portfolio,  for both the nine months ended September 30, 2002 and 2001, was
7.35% based on face amounts of approximately  $1,341,178,000  and  $994,771,000,
respectively.

The  amortized  cost  basis  of the  Company's  portfolio  of  Revenue  Bonds at
September 30, 2002 and December 31, 2001 was $1,329,880,638 and  $1,137,453,098,
respectively.  The net  unrealized  gain  on  Revenue  Bonds  in the  amount  of
$73,098,362 at September 30, 2002 consisted of gross unrealized gains and losses
of $79,335,084 and $6,236,722,  respectively. The net unrealized loss on Revenue
Bonds of $261,902 at December 31, 2001 consisted of gross  unrealized  gains and
losses of $20,202,713 and $19,940,811, respectively.

                                       8
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


2002 Transactions
-----------------

The following table summarizes the Company's  acquisition  activity for the nine
months ended September 30, 2002.
<TABLE>
<CAPTION>

                                                          Weighted       Weighted
                                            Aggregate      Average        Average      Number of
                                            Purchase    Construction     Permanent      Revenue
                             Face Amount      Price    Interest Rate   Interest Rate     Bonds
---------------------------------------------------------------------------------------------
<S>                           <C>            <C>           <C>              <C>             <C>
Non-participating Revenue   (Dollars in
Bonds                        Thousands)

Stabilized properties         $ 8,000        $ 8,160        N/A             7.11%           3
Construction/rehabilitation
  properties                  271,018        276,595       7.23%            7.08%          43

</TABLE>

During the nine months ended September 30, 2002, nine Revenue Bonds were sold or
repaid.  These Revenue Bonds had an aggregate face amount of approximately $95.5
million  and a carrying  value of $95.9  million.  Additionally,  two notes were
repaid at par in the amount of $7.1 million.

During the three months ended September 30, 2002, the Company took an additional
write down of approximately $532,000, on the Lexington Trails Revenue Bond. This
Revenue Bond initially  became  impaired in the second quarter of 2001, at which
time the Company took a write down of $400,000. Subsequently, the Company caused
the  trustee,  for the benefit of the Company,  to  foreclose on the  underlying
property. Since the date of the foreclosure, the Company has attempted to find a
buyer for the  underlying  property.  Management  believes  it is likely that in
connection  with a sale of the  underlying  property,  the terms of this Revenue
Bond may need to be modified.  The Company has  therefore  decided to write down
the carrying value to the face amount of the bond of $4.9 million.


NOTE 3 - Deferred Costs

The components of deferred costs are as follows:
<TABLE>
<CAPTION>

                                                        (Dollars in Thousands)
                                                     September 30,   December 31,
                                                         2002            2001
                                                     ------------    -----------
<S>                                                      <C>           <C>
Deferred bond selection costs                            $ 30,964      $ 25,120
Deferred costs relating to the Private Label
Tender Option Program                                       7,424         6,788
Deferred costs relating to the issuance of preferred
   shares of subsidiary                                    10,445         8,377
Other deferred costs                                        2,570           568
                                                         --------      --------
                                                           51,403        40,853

Less: Accumulated amortization                             (7,872)       (6,187)
                                                         --------      --------

                                                         $ 43,531      $ 34,666
                                                         ========      ========
</TABLE>


NOTE 4 - Goodwill and Intangible Assets

The Company  adopted  SFAS 141 on July 1, 2001 and SFAS 142, on January 1, 2002.
The Company has determined that the amounts  previously  capitalized as goodwill
relating to the initial formation of the Company and to the merger of ATEBT meet
the  criteria  in SFAS 141 for  recognition  as  intangible  assets  apart  from
goodwill,  and  accordingly  will continue to be amortized over their  remaining
useful lives, subject to impairment testing.

During the quarter ended June 30, 2002, PWF engaged a third party valuation firm
to evaluate PWF's  licenses with Fannie Mae,  Freddie Mac, FHA, GNMA and various

                                       9
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


private  investors.  As a result of this process  approximately $8.6 million has
been reclassified from goodwill to intangible assets, representing the estimated
market value of PWF's licenses. These licenses have an indefinite life and, as a
result, are not being amortized.

During  July of 2002,  CM  Corp.  made an  additional  payment  to the  original
shareholders of PWF of approximately $3 million ("the True-Up payment") pursuant
to the original acquisition  agreement.  The True-Up payment was based on i) the
increase in value of servicing rights due to certain loans closing, ii) positive
changes in the audited  balance  sheets used for the initial  purchase price and
the  audited  balance  sheet at  December  31,  2001,  iii)  payments of certain
servicing fees, iv) forward conversions of loans previously committed,  and v) a
payment to one shareholder for PWF stock to be used as employee compensation.

The  following  table  provides  further  information  regarding  the  Company's
intangible assets:
<TABLE>
<CAPTION>

                                            (Dollars in Thousands)
                                 Initial    ATEBT Merger    PWF         Total
                                Formation                 Licenses
                               -----------  ------------  --------   -----------

<S>                              <C>          <C>          <C>          <C>
Balance at September 30, 2002    $3,107       $1,320       $8,639       $13,066
Accumulated Amortization         (1,381)        (248)          --        (1,629)
                                 ------       ------       ------       -------

Net balance at September 30,     $1,726       $1,072       $8,639       $11,437
2002                             ======       ======       ======       =======

Amortization Expense for the
nine months ended September      $  258       $   99       $   --       $   357
30, 2002                         ======       ======       ======       =======

Estimated amortization expense
per year for next five years     $  345       $  132       $   --       $   477
                                 ======       ======       ======       =======
</TABLE>

The amortization is included as a reduction to Revenue Bond interest income.

The amount indicated as goodwill in the accompanying  financial statements as of
September 30, 2002 is related to the  acquisition,  on December 31, 2001 of PWF.
This amount  represents  goodwill  under SFAS 142, and  therefore,  is not being
amortized.  In  accordance  with SFAS 142,  the  Company  will be  testing  this
goodwill for impairment during the fourth quarter of 2002.


NOTE 5 - Related Party Transactions

Pursuant  to the  management  agreement  and  other  servicing  agreements  with
subsidiaries,  the  Manager  receives  (inclusive  of fees paid  directly to the
Manager by subsidiaries of the Company) certain fees for its ongoing  management
and operations of the Company and subsidiaries as follows:

       Fees/Compensation         Amount
       -----------------         ------
  I.   Bond selection fees       2.0% of the face amount of each  asset invested
                                 in or acquired by the Company.
  II.  Special distribution      .375% per annum of the total invested assets of
                                 the Company.
  III. Bond servicing fees       .25%  per  annum of the outstanding face amount
                                 of Revenue  Bonds or other investments owned by
                                 the Company.
  IV.  Liquidation fees          1.5%  based  on the gross sales price of assets
                                 sold by the Company.
  V.   Expense reimbursement     in an amount not  to  exceed $741,932 per annum
                                 (subject to increases based on increases in the
                                 Company's assets  and to annual increases based
                                 upon increases in the Consumer Price Index).

                                       10
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


  VI.  Incentive share options   The  Manager  may  receive options  to  acquire
                                 additional shares  of  the Company  pursuant to
                                 the incentive share  option plan  to the extent
                                 distributions  in any year exceed  $0.9517  per
                                 common share,  and  the  compensation committee
                                 of the Company's  board of trustees  determines
                                 to grant such options.

Fees  payable to the Manager  which are based on Revenue  Bonds or assets of the
Company  include such Revenue Bonds or assets which are held either  directly by
the Company or held by other entities to which the Company has transferred  such
Revenue  Bonds or assets to  facilitate  financing.  In  addition,  the  Manager
receives bond  placement  fees  directly from the borrower in an amount  ranging
from  1.0%  to 2.0% of the  principal  amount  of  each  Revenue  Bond or  other
investment.  In addition,  affiliates of the Manager are part of a joint venture
that has development  services  agreements with the owners of certain underlying
properties.

The term of each of CharterMac's  management agreements is one year. The term of
each of CharterMac's subsidiaries' management agreements is five years; provided
that if CharterMac's  management agreement with Related Charter LP is terminated
or not renewed,  each of the management  agreements with such subsidiaries would
terminate as of such date.  Each of the  management  agreements  may be renewed,
subject to evaluation of the performance of the manager by the relevant entity's
board of trustees. Each management agreement may be terminated (i) without cause
by the  manager,  or (ii) for cause by a  majority  of the  applicable  entity's
independent  trustees,  in each  case  without  penalty  and upon 60 days  prior
written notice to the non-terminating party.  CharterMac's management agreements
were renewed effective October 1, 2002 for a period of one year.

The costs,  expenses and the special  distributions  incurred to the Manager and
its affiliates  for the three and nine months ended  September 30, 2002 and 2001
were as follows:
<TABLE>
<CAPTION>
                               Three Months Ended           Nine Months Ended
                                  September 30,                September 30,
                             (Dollars in Thousands)       (Dollars in Thousands)
                             ----------------------      -----------------------
                               2002         2001            2002         2001
                             ----------------------      -----------------------
<S>                          <C>         <C>             <C>          <C>
Bond selection fees          $   1,681   $      839      $    5,662   $    2,470
Expense reimbursement              242          161             672          489
Bond servicing fees                875          618           2,519        1,755
Special distribution             1,294          899           3,622        2,593
                             ---------   ----------      ----------   ----------
                             $   4,092   $    2,517      $   12,475   $    7,307
                             =========   ==========      ==========   ==========
</TABLE>

Certain  of the  Revenue  Bonds held by the  Company  are  supported  by various
guarantees including,  but not limited to, construction and operating guarantees
from affiliates of the Manager.

During the period  ended  September  30, 2002,  the Company  agreed to back up a
primary  guarantor's  obligation  to guarantee an  agreed-upon  internal rate of
return to the investor in Related Capital Guaranteed Corporate Partners II, L.P.
("RCGCP").  RCGCP is a fund  sponsored  by Related,  who is an  affiliate of the
Manager.  The fee for the first of two guarantees of approximately  $3.6 million
was received in July 2002.  This fee was  deferred  and is being  amortized on a
straight-line  basis  over  the life of the  guarantee.  For the  quarter  ended
September  30,  2002,  approximately  $680,000 was included in other income (see
Note 7).

During the quarter  ended June 30,  2002,  River Run, a Revenue Bond held by the
Company,  was refinanced  with a third party lender.  The general partner of the
owner of the  underlying  property was  comprised of  affiliates of the Manager.
River Run was repaid at par of $7.2 million.  The Company has  recognized a loss
of approximately  $38,000 due to the write-off of unamortized  acquisition costs
associated  with  River Run, included in Gain on repayment of Revenue Bonds, and

                                       11
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)



received approximately $767,000 in contingent interest, included in Revenue Bond
interest income.

In connection with the refinancing of River Run, the Company has entered into an
agreement  which  allows the Revenue  Bond to be put to the  Company  should the
owner of the underlying  property default on the bond. The Company, in turn, has
entered into  agreements  which allow the Company to put the bond to the general
partners of the owner.  This right is secured by collateral  assignments  of the
general partners'  partnership  interests in the limited  partnership which owns
the underlying property.

The  Company  has  entered  into a  credit  enhancement  transaction  (the  "CMC
transaction") with Merrill Lynch Capital Services ("MLCS") pursuant to which the
Company  receives a fee for assuming MLCS's $46.9 million first loss position on
a $351.9 million pool of tax-exempt weekly variable rate  multi-family  mortgage
loans.  The Related  Companies,  L.P.  ("TRCLP"),  an affiliate of Related,  has
provided the Company with an  indemnity  covering 50% of any losses  incurred by
the  Company.  The Company  monitors the  portfolio  on an ongoing  basis and at
September 30, 2002 does not anticipate any losses to be incurred.

Fees related to the credit enhancement transaction for the three and nine months
ended September 30, 2002, included in other income, were approximately  $312,000
and  $939,000,  respectively.  Income  is  recognized  monthly  as the  fees are
received.


NOTE 6 - Earnings Per Share

Net income per share is computed  in  accordance  with  Statement  of  Financial
Accounting  Standards No. 128,  "Earnings Per Share".  Basic income per share is
calculated  by  dividing   income   allocated  to  common  and  convertible  CRA
shareholders  ("shareholders")  by the  weighted  average  number of common  and
convertible CRA shares outstanding during the period. The convertible CRA shares
are included in both the basic and dilutive  calculation  of shares because they
are entitled to the same  economic  benefits as common  shareholders,  including
receipt of the same  dividends  per share pari passu with  common  shareholders.
Diluted  income per share is  calculated  using the weighted  average  number of
shares  outstanding  during the period plus the  additional  dilutive  effect of
common share  equivalents.  The dilutive effect of outstanding  share options is
calculated  using the treasury stock method.  Because each convertible CRA share
is convertible into not more than one common share, the potential  conversion of
the convertible CRA shares would be antidilutive.

Pursuant to the Company's  trust  agreement and the  management  agreement,  the
Manager is entitled,  pursuant to the terms of the Trust Agreement, to a special
distribution  equal to .375% per annum of the Company's  total  invested  assets
(which  equals  the face  amount of the  Revenue  Bonds and other  investments),
payable  quarterly.  After  allocation  of the  special  distributions,  the net
remaining profits or losses,  after a special allocation of 1.0% to the Manager,
are  then  allocated  to  shareholders  in  accordance  with  their   percentage
interests.

During the quarter ended  September 30, 2002,  the Company issued 40,000 options
at a strike price of $17.56. These options vest equally, in thirds, in September
2003, 2004 and 2005 and expire in 10 years.  These options were antidilutive for
the three and nine  months  ended  September  30,  2002,  so were not taken into
account in the calculation of diluted shares.

                                       12
<PAGE>



                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)
                (Dollars in Thousands, except per Share Amounts)

<TABLE>
<CAPTION>
                                    Three Months Ended September 30, 2002      Nine Months Ended September 30, 2002
                                    -------------------------------------      -------------------------------------
                                     Income        Shares      Per Share       Income        Shares       Per Share
                                    Numerator   Denominator      Amount       Numerator    Denominator      Amount
                                    ---------   -----------    ----------     ---------    -----------    ----------
<S>                                  <C>         <C>            <C>            <C>         <C>            <C>
Net income allocable to share-

   Holders (Basic EPS)               $12,236     44,209,982     $   .28        $42,571     42,030,318     $     1.01
                                                                =======                                   ==========
   Effect of dilutive securities
     223,509 stock options                --         72,751                         --         69,089
                                     -------     ----------                    -------     ----------
Diluted net income allocable to
   shareholders (Diluted EPS)        $12,236     44,282,733     $   .28        $42,571     42,099,407     $     1.01
                                     =======     ==========     =======        =======     ==========     ==========
</TABLE>
<TABLE>
<CAPTION>

                                    Three Months Ended September 30, 2001      Nine Months Ended September 30, 2001
                                    -------------------------------------      -------------------------------------
                                     Income        Shares      Per Share       Income        Shares       Per Share
                                    Numerator   Denominator      Amount       Numerator    Denominator      Amount
                                    ---------   -----------    ----------     ---------    -----------    ----------
<S>                                  <C>         <C>            <C>            <C>         <C>            <C>
Net income allocable to share-

   Holders (Basic EPS)               $10,346     32,986,483     $   .31        $25,180     29,322,639     $      .86
                                                                =======                                   ==========
   Effect of dilutive securities
     241,596 stock options                --         51,592                         --         57,826
                                     -------     ----------                    -------     ----------
Diluted net income allocable to
   shareholders (Diluted EPS)        $10,346     33,038,075     $   .31        $25,180     29,380,465     $      .86
                                     =======     ==========     =======        =======     ==========     ==========
</TABLE>


                                       13
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


NOTE 7 - Commitments and Contingencies

The  Company is subject to routine  litigation  and  administrative  proceedings
arising in the  ordinary  course of business.  Management  does not believe that
such matters will have a materially  adverse  impact on the Company's  financial
position, results of operations or cash flows.

The Company,  through PWF, originates and services  multi-family  mortgage loans
for Fannie  Mae,  Freddie  Mac and FHA.  Under the Fannie Mae DUS  program,  the
Company  retains  responsibility  for a portion of any loss that may result from
borrower  defaults,  based on the Fannie Mae loss sharing  formula.  The Company
maintains  a loan  loss  allowance,  which was  approximately  $4.1  million  at
September 30, 2002,  for loans  originated  under this program which  management
believes is adequate to provide for estimated losses.

The Company has entered into the CMC transaction with MLCS pursuant to which the
Company  receives a fee for assuming MLCS's $46.9 million first loss position on
a $351.9 million pool of tax-exempt weekly variable rate  multi-family  mortgage
loans.  TRCLP,  an  affiliate  of Related,  has  provided  the  Company  with an
indemnity  covering  50% of any losses  incurred  by the  Company.  The  Company
monitors the portfolio on an ongoing  basis and at September 30, 2002,  does not
anticipate any losses to be incurred.  Should the Company's  analysis of risk of
loss change in the future,  a provision  for possible  losses might be required;
such provision could be material.

Fees related to the credit enhancement transaction for the three and nine months
ended September 30, 2002, included in other income, were approximately  $312,000
and  $939,000,  respectively.  Income  is  recognized  monthly  as the  fees are
received.

On July 18, 2002,  the Company  entered into two  agreements  with Merrill Lynch
(the "Primary  Guarantor") to guarantee an  agreed-upon  internal rate of return
("IRR") for a pool of 11  multi-family  properties  being developed by RCGCP for
which the Company will receive two guarantee  fees totaling  approximately  $5.9
million.

The  transaction  was  structured  as two  separate  guarantees,  one  primarily
guaranteeing  the IRR through the lease-up phase of the properties and the other
guaranteeing the IRR through the operating phase of the properties.  The fee for
the first guarantee,  in the amount of approximately  $3.6 million,  was paid in
July  2002 at  closing.  The fee for the  second  guarantee  will be paid in two
installments.  The  first  installment,  in the  amount  of  approximately  $1.7
million, will be paid in October 2003, and the final installment,  in the amount
of  approximately  $566,000,  will be paid in February 2004.  These fees will be
recognized in income on a straight line basis over the period of the  respective
guarantees.  The total  potential  liability  to the  Company  pursuant to these
guarantees is approximately  $44 million.  The Company has analyzed the expected
operations of the underlying properties and believes there is no risk of loss at
this time. Should the Company's analysis of risk of loss change in the future, a
provision  for  possible  losses  might be  required;  such  provision  could be
material.

RCGCP is a fund  sponsored  by Related,  an  affiliate  of the  Manager.  The 11
properties were financed, in part, with $125.3 million of tax-exempt and taxable
debt,  $70.3  million of which are revenue  bonds that have been acquired by the
Company.

In connection with the transaction,  the Company posted $12.1 million of Revenue
Bonds as  collateral  to the  Primary  Guarantor,  which will be reduced to $1.1
million  over  a  12-year  period  as the  properties  reach  certain  operating
benchmarks.  In addition,  the Company agreed to subordinate  25% of each of the
bonds  it  acquired  that  are  secured  by the  properties  and to not  use the
subordinated  portion  of such  bonds  as  collateral  in  connection  with  any
borrowings.

To mitigate risk, the Company is the  beneficiary of a guarantee  against losses
associated  with  construction  and  operating  stabilization  for  each  of the
properties  in RCGCP,  which is capped at $15 million.  The  guarantee  has been

                                       14
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


provided  by  TRCLP.  As of  December  31,  2001,  TRCLP had a GAAP net worth of
approximately  $179.3 million with liquid assets of approximately $54.9 million.
In addition, the developers of each of the properties have also been required to
give recourse completion,  stabilization and operating deficit guarantees. TRCLP
has  also  agreed,  if  needed,  after  construction   completion  and  property
stabilization, to fund up to the first $2.5 million of operating deficits of the
underlying  properties or any amounts  required to pay the guaranteed IRR to the
investor.

NOTE 8 - Financial Risk Management and Derivatives

The Company's  Revenue  Bonds  generally  bear fixed rates of interest,  but the
P-FLOATS and TOP financing  programs  incur  interest  expense at variable rates
re-set  weekly,  so the  Company is  exposed to  interest  rate  risks.  Various
financial  vehicles exist which allow the Company's  management to hedge against
the  impact of  interest  rate  fluctuations  on the  Company's  cash  flows and
earnings.

The  Company  has entered  into two  interest  rate swaps in order to reduce the
Company's growing exposure to increases in the floating interest rate on its TOP
and P-FLOATS programs. Under such interest rate swap agreements,  the Company is
required to pay MLCS (the  "Counterparty")  a fixed rate on a notional amount of
debt.  In  return,  the  Counterparty  will  pay the  Company  a  floating  rate
equivalent  to The BMA  Municipal  Swap  Index,  an index of  weekly  tax-exempt
variable rate issues on which the Company's variable rate financing programs are
based.  On January 5, 2001, the Company  entered into a five-year  interest rate
swap that fixes the BMA index to 3.98% on a notional  amount of $50 million.  On
February 5, 2001, the Company entered into a three-year  interest rate swap that
fixes the BMA index to 3.64% on an additional notional amount of $100 million.

The average BMA rates for the three and nine months ended September 30, 2002 and
2001,  were 1.35% and 2.27%,  respectively.  Net swap  payments  received by the
Company,  if any,  will be taxable  income to the Company and,  accordingly,  to
shareholders.  A possible risk of such swap agreements is the possible inability
of the  Counterparty  to meet the  terms  of the  contracts  with  the  Company;
however, there is no current indication of such an inability.

The Company  adopted  Statement of Financial  Accounting  Standards  No. 133, as
amended  and  interpreted,  on January 1, 2001.  Accordingly,  the  Company  has
documented  its  established  policy for risk  management and its objectives and
strategies for the use of derivative  instruments  to potentially  mitigate such
risks.  The Company  evaluates  its  interest  rate risk on an ongoing  basis to
determine  whether  or not it would be  advantageous  to engage  in any  further
hedging transactions.  At inception,  the Company designated these interest rate
swaps as cash flow hedges on the variable interest payments on its floating rate
financing.  Accordingly,  the  interest  rate swaps are  recorded  at their fair
market  values each  accounting  period,  with  changes in market  values  being
recorded in other comprehensive income to the extent that the hedge is effective
in achieving offsetting cash flows. The Company assesses,  both at the inception
of the hedge and on an ongoing  basis  whether  the swap  agreements  are highly
effective in offsetting  changes in the cash flows of the hedged financing.  Any
ineffectiveness in the hedging  relationship is recorded in earnings.  There was
no  ineffectiveness in the hedging  relationship  during 2001 or the first three
quarters of 2002, and the Company expects that these hedging  relationships will
be highly  effective in  achieving  offsetting  changes in cash flow  throughout
their terms.  Net amounts  payable or receivable  under the swap  agreements are
recorded as adjustments to interest expense.

At  September  30,  2002,  these two  interest  rate  swaps were  recorded  as a
liability  with a combined  fair market  value of  approximately  $6.0  million,
included  in interest  rate  derivatives  on the  consolidated  balance  sheets.
Interest paid or payable  under the terms of the swaps,  of  approximately  $2.6
million, is included in interest expense.

During  January  2002,  the Company  entered into an interest rate cap agreement
with Fleet Bank, with a cap of 8% on a notional amount of $30 million.  Although

                                       15
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


this  transaction  is  designed  to mitigate  the  Company's  exposure to rising
interest  rates,  the Company has not  designated  this  interest  rate cap as a
hedging  derivative.  At September 30, 2002, this interest rate cap was recorded
as an asset with a fair  market  value of $100,471  included  in  interest  rate
derivatives  in the  consolidated  balance  sheets.  Because the Company has not
designated  this  derivative  as a hedge,  the change in fair market value flows
through the Consolidated  Statements of Income, where it is included in interest
income,  in the amounts of ($115,029) and $100,471 for the three and nine months
ended September 30, 2002, respectively.

NOTE 9 - Shareholders' Equity

During the first quarter of 2002,  the Company sold 6.3 million Common Shares to
the public at a price of $15.47 per share.  The net proceeds from this offering,
approximately  $92.4 million,  have been used to fund additional  investments in
Revenue Bonds.

In June 2002, a subsidiary of the Company  issued 60 6.80% Series A-3 cumulative
preferred  shares  and 50 7.20%  Series  B-2  subordinate  cumulative  preferred
shares,  raising net proceeds of  approximately  $53 million.  Each of preferred
shares is subject to mandatory  repurchase  in 2052 at a  liquidation  amount of
$500,000 per share.

In July 2002, the Company issued  approximately  1.4 million of its  Convertible
CRA Shares,  at $17.43 per share,  raising net  proceeds  of  approximately  $23
million. The Company intends to use the proceeds to invest in additional Revenue
Bonds and for general corporate  purposes,  including reduction of the Company's
indebtedness.

NOTE 10 - Business Segments

As a result  of the  December  2001  acquisition  of PWF,  the  Company  has two
reportable business segments: an investing segment and an operating segment.

The investing  segment consists of subsidiaries  holding  investments in Revenue
Bonds producing primarily tax-exempt interest income.

The  operating  segment  generates  taxable  interest  and fee  income.  Taxable
interest  income is generated  through the ownership of taxable  bonds,  certain
taxable  loans  and  other   investments.   Taxable  fee  income  includes  loan
origination  and loan  servicing  fees  (through  PWF) on  portfolios  for third
parties,  fees earned and  associated  with the  acquisition  or  origination of
Revenue Bonds, and fees for credit enhancement and guaranty services.

Segment results include all direct and contractual revenues and expenses of each
segment and  allocations of indirect  expenses based on specific  methodologies.
The reportable  segments are strategic  business  units that primarily  generate
revenue  streams  that  are  distinctly  different  and  are  generally  managed
separately.  Segment  reporting is applicable  beginning with the acquisition of
PWF on December 31,  2001;  prior to December  31,  2001,  all of the  Company's
operations were attributable to the investing segment.

The following table provides more information regarding the Company's segments:
<TABLE>
<CAPTION>

               Three Months Ended September 30, 2002      Nine Months Ended September 30, 2002
                       (Dollars in thousands)                     (Dollars in Thousands)
               -------------------------------------     --------------------------------------

               Investing      Operating      Total       Investing      Operating      Total
               ----------     ---------   ----------     ----------     ---------    ----------

<S>            <C>             <C>        <C>            <C>            <C>          <C>
Revenues       $   24,759      $  3,880   $   28,639     $   73,371     $ 13,240     $   86,611
Net Income     $   13,035      $    619   $   13,654     $   44,739     $  1,884     $   46,623
Identifiable
   Assets      $1,551,629      $103,443   $1,655,072     $1,551,629     $103,443     $1,655,072
</TABLE>

                                       16
<PAGE>


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2002
                                   (Unaudited)


NOTE 11 - Subsequent Events

New Acquisitions
----------------
On October 8, 2002, the Company acquired one tax-exempt Revenue Bond in the face
amount of  $8,700,000,  secured by a 192-unit  multi-family  affordable  housing
apartment  complex located in Vicksburg,  MS, to be known as Magnolia Commons of
Vicksburg.  The bond matures September 1, 2032 and has a stated interest rate of
6.75%.

On October 15, 2002, the Company  acquired two  tax-exempt  Revenue Bonds in the
face amounts of  $1,160,000  and  $100,000,  secured by Golf Villas,  a 166-unit
multi-family  affordable  housing apartment complex located in Tamarac,  FL, and
Lakeside Villas, a 224-unit  multi-family  affordable  housing apartment complex
located in Miami,  FL. The bonds mature in December 1, 2025 and December 1, 2016
respectively and have a stated interest rate of 7.25% and 7.0% respectively.

On October 17, 2002, the Company  acquired two  tax-exempt  Revenue Bonds in the
face  amounts  of  $13,500,000  and  $1,500,000,  both  secured  by  a  256-unit
multi-family  affordable housing apartment complex located in Pflugerville,  TX,
to be known as Heatherwilde  Villas.  The bonds both mature October 1, 2042 with
interest  rates of 5.5% until  February 2004 and have stated  interest  rates of
6.75% and 7.0% thereafter, respectively.

On October 24, 2002,  the Company  acquired one  tax-exempt  Revenue Bond in the
face amount of $8,300,000, secured by a 220-unit multi-family affordable housing
apartment complex located in Athens,  Georgia, to be known as Oak Hill. The bond
matures October 1, 2042 and has a stated interest rate of 6.5%.

On October 25, 2002,  the Company  acquired one  tax-exempt  Revenue Bond in the
face amount of $9,925,119, of which $2,102,000 was funded at closing, secured by
a  164-unit  multi-family   affordable  housing  apartment  complex  located  in
Loveland, CO, to be known as Waterford Phase II. The bond matures August 1, 2045
and has a stated interest rate of 6.5%.

On  November  1,  2002,  one  tax-exempt  Revenue  Bond,  in the face  amount of
$5,500,000,  matured, and funds in the full face amount of the Revenue Bond were
returned to the Company.

On November 8, 2002,  the Company  acquired two tax-exempt  Revenue  Bonds.  The
first, to be known as Allapattah  Gardens,  is in the face amount of $5,200,000,
of which  $4,850,000 was funded at closing,  secured by a 128-unit  multi-family
affordable  housing  apartment  complex  located in Miami,  Fl. The bond matures
November 1, 2044 and has a stated  interest  rate of 7.15%.  The  second,  to be
known as  Hickory  Trace,  is in the face  amount of  $11,920,000,  secured by a
180-unit  multi-family  affordable  housing apartment complex located in Dallas,
TX. The bond matures November 1, 2042 and has a stated interest rate of 7.0%.

On November 12, 2002, the Company  acquired one  tax-exempt  Revenue Bond in the
face  amount of  $12,500,000,  secured  by a  192-unit  multi-family  affordable
housing  apartment  complex located in Houston,  TX, to be known as Green Crest.
The bond matures November 2042 and has a stated interest rate of 7.0%.


                                       17
<PAGE>


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations.

General
-------

Charter Municipal  Mortgage  Acceptance Company  ("CharterMac"),  along with its
consolidated   subsidiaries  (the  "Company"),  is  a  Delaware  business  trust
principally engaged in the acquisition and ownership (directly or indirectly) of
tax-exempt  multi-family  housing  revenue  bonds  ("Revenue  Bonds")  and other
investments  that produce  tax-exempt  income,  issued by various state or local
governments,  agencies,  or authorities.  Revenue Bonds are primarily secured by
participating   and   non-participating   first  mortgage  loans  on  underlying
properties ("Underlying Properties").

In  order  to  generate  tax-exempt  income  to pass  through  to the  Company's
shareholders and, as a result, enhance the value of the Company's Common Shares,
the Company primarily invests in or acquires tax-exempt Revenue Bonds secured by
multi-family  properties.  The Company  believes  that it can earn above  market
rates of interest  on its  Revenue  Bond  acquisitions  by focusing  its efforts
primarily on affordable  housing.  The Manager  estimates that nearly 30% of all
new multi-family development contains an affordable component which produces tax
credits  pursuant to Section 42 of the Internal  Revenue Code.  The  traditional
methods of  financing  affordable  housing  with  tax-exempt  Revenue  Bonds are
complex   and  time   consuming,   and  involve   the   participation   of  many
intermediaries.  Through the Manager,  the process has been streamlined with the
"Direct  Purchase  Program".  The Company's  Direct Purchase Program removes all
intermediaries from the financing process (except the governmental issuer of the
Revenue Bond) and enables  developers to deal directly with one source.  Because
the Company  purchases its Revenue Bonds directly from the governmental  issuer,
the  need for  underwriters  and  their  counsel,  rating  agencies  and  costly
documentation  is eliminated.  This reduces the financing  life cycle,  often by
several  months,  and also reduces the bond  issuance  costs,  usually by 30% or
more. In dealing  directly with the Company,  developers feel more certain about
the terms and timing of their  financing.  The Company  believes  the savings in
time and up-front costs and the certainty of execution that the Direct  Purchase
Program offers to developers allows the Company to receive above-market rates of
interest on the Company's Revenue Bonds.

The Company  believes that it is well  positioned to market its Direct  Purchase
Program as a result of the Manager's  affiliation  with Related  Capital Company
("Related"),  a nationwide,  fully integrated real estate services firm, because
the Manager is able to utilize  Related's  resources  and  relationships  in the
multi-family  affordable housing finance industry to source potential  borrowers
of Revenue Bonds.  Related and its  predecessor  companies  have  specialized in
offering  debt  and  equity  products  to  mid-market  multi-family  owners  and
developers  for over 30 years.  According  to the 2001  National  Multi  Housing
Council survey,  Related is the second largest owner of apartments in the United
States.

The Company,  through its wholly-owned  subsidiary  CharterMac  Corporation ("CM
Corp."),  acquired  80% of the  outstanding  capital  stock of PW Funding,  Inc.
("PWF").  As a result of the acquisition of PWF, the Company has diversified the
range of its  investment  products  and is able to offer  developers  fixed  and
floating rate tax-exempt and taxable  financing  through Fannie Mae, Freddie Mac
and FHA for affordable and market rate multi-family  properties.  Combining this
with  the  Company's  core  business  of  investing  in  Revenue  Bonds  and its
affiliation  with  Related,  the  Company  is able to  provide  developers  with
financing for all aspects of their property's  capital  structure.  In addition,
the Company has  diversified  its revenues with a fee business that will grow in
value over time and will  insulate  the Company from the vagaries of the capital
markets.

On January 14, 2002, the Company announced that its Board of Trustees had formed
a special committee to explore  strategic  alternatives for the Company's future
management  structure,  including  internalization  of  management,  and ways to
further diversify the Company's revenue sources.  The special committee consists
of the independent  members of the Board of Trustees,  Peter T. Allen, Arthur P.
Fisch and Charles L. Edson.  On April 17, 2002, the special  committee  retained
Dresdner  Kleinwort  Wasserstein as their financial  advisor.  As of the date of
this  report,  the special  committee  and its  advisors  are  continuing  their
efforts.

Results of Operations
---------------------

For the three and nine  months  ended  September  30,  2002 as compared to 2001,
total revenues, total expenses and net income increased due to the net result of

                                       18
<PAGE>


the  acquisition  of 77 Revenue Bonds during 2002 and 2001, and the repayment of
nine  Revenue  Bonds and two notes.  Total  revenues and expenses and net income
also increased due to the December 2001  acquisition of PWF, the CMC transaction
and the LIHTC guarantee yield.

The  weighted  average  interest  rates  recognized  on the face  amount  of the
portfolio of Revenue Bonds for the nine months ended September 30, 2002 and 2001
were 7.48% and 7.37%,  respectively,  based on weighted  average face amounts of
approximately $1,208,528,000 and $929,863,000, respectively.

Interest  income from Revenue  Bonds  increased  approximately  $4.0 million and
$16.2 million for the three and nine months ended September 30, 2002 as compared
to 2001.  This increase was  primarily due to an increase in interest  income of
approximately  $19.7 million on new Revenue Bonds acquired during 2001 and 2002,
partially  off-set by a decrease in interest income due to the sale or repayment
of Revenue Bonds of approximately $3.6 million.

Total revenues for the three and nine months ended September 30, 2002, increased
by  approximately  $9.3 million and $33.0 million,  respectively,  including the
increases in interest  income from Revenue  Bonds noted above,  and increases of
approximately  $.6 million  and $1.7  million  equity  interest in the income of
ARCap,  approximately  $3.9 million and $13.2 million from PWF, $939,000 in fees
related to the CMC credit enhancement  transaction and approximately $680,000 in
fees from the LIHTC yield guarantee.

Interest  expense and recurring  fees increased  approximately  $1.0 million and
$1.9  million  for  the  three  and  nine  months  ended   September  30,  2002,
respectively,  as compared to 2001,  primarily due to higher interest expense on
the swaps and interest associated with the PWF Acquisition loan.

General and  administrative  expenses  increased  approximately $3.6 million and
$12.9 million for the three and nine months ended September 30, 2002 as compared
to 2001 primarily due to the addition of PWF's expenses.

Income allocated to minority interest of approximately $124,000 and $377,000 for
the three and nine months ended  September  30, 2002,  respectively,  represents
PWF's continued 20% ownership.

Amortization increased approximately $1.8 million and $5.4 million for the three
and nine months  ended  September  30, 2002  primarily  due to  amortization  of
mortgage servicing rights at PWF.

Income allocated to preferred  shareholders of subsidiary for the three and nine
months ended  September 30, 2002 increased  approximately  $1.8 million and $3.7
million,  respectively, due to the preferred offerings consummated on October 9,
2001 and June 4, 2002.

During the three months ended September 30, 2002, the Company recorded a benefit
for income taxes of approximately $656,000,  relating to the activity of PWF and
CM Corp. During the nine months ended September 30, 2002, the Company recorded a
provision for income taxes of approximately $983,000, related to the activity of
PWF and CM Corp.

During the nine months ended  September  30, 2002,  the Company  recognized  net
gains on repayments of Revenue Bonds of approximately  $4.0 million,  versus $.1
million for 2001,  due to the number and size of Revenue  Bonds  repaid or sold.
Additionally,  during the three and nine months ended  September  30, 2002,  the
Company  recognized  gains on sales of loans of  approximately  $1.5 million and
$8.5 million due to PWF's activities.

During the nine months  ended  September  30, 2002,  the Company  wrote down one
Revenue  Bond in the amount of  approximately  $532,000.  During the nine months
ended  September  30, 2001,  the Company wrote down the same Revenue Bond in the
amount of $400,000.

Liquidity and Capital Resources
-------------------------------

In order for the Company to fund its investments in Revenue Bonds and facilitate
growth,  the Company has primarily  used two sources of capital:  collateralized
debt securitization and various types of equity offerings.

                                       19
<PAGE>


During the first quarter of 2002, the Company issued  6,325,000 common shares of
beneficial  interest  at  $15.47  per  share,   resulting  in  net  proceeds  of
approximately $92.4 million.

During the nine months ended September 30, 2002 cash and cash equivalents of the
Company and its consolidated subsidiaries decreased approximately $35.8 million.
The decrease was primarily due to cash provided by operating  activities,  $54.4
million,  proceeds from the repayment of nine Revenue Bonds and one Note,  $92.7
million, the issuance of new common shares, $92.4 million, issuance of preferred
stock, $55.0 million and increased borrowings under finance arrangements,  $54.5
million,  less  funds  used to  purchase  Revenue  Bonds,  $279.0  million,  net
principal  payments of secured  borrowings,  $67.3 million and  distributions to
common, convertible CRA and preferred shareholders, $52.6 million.

In October and November 2002, distributions declared in September 2002 were paid
to Preferred Shareholders as shown in the table below:

<TABLE>
<CAPTION>
                                                                     Liquidation
                                                                        Value
Series  Dividend Rate  Distribution per Share  Total Distribution     per share
------  -------------  ----------------------  ------------------    -----------

<S>         <C>               <C>                <C>                  <C>
A           6.625%            $33,125            $1,490,625           $2,000,000
A-1         7.100%              8,875               426,000              500,000
A-2         6.300%              7,875               488,250              500,000
A-3         6.800%              8,500               510,000              500,000
B           7.600%              9,500             1,045,000              500,000
B-1         6.800%              8,500               314,500              500,000
B-2         7.200%              9,000               450,000              500,000
</TABLE>

Also paid were  distributions  of  $14,139,588  ($.32 per  share) to  holders of
common and convertible CRA shares.  All  distributions  were paid from cash flow
from operations.

Management is not aware of any trends or events,  commitments or  uncertainties,
which  have not  otherwise  been  disclosed  that  will or are  likely to impact
liquidity in a material way.

Critical Accounting Policies
----------------------------

The Company's  critical  accounting  policies are described in its Form 10-K for
the year ended December 31, 2001.  These critical  accounting  policies have not
changed during 2002, but the Company has entered into transactions which involve
new critical accounting policies as described in the following paragraphs.

The Company has entered into two  transactions in which it has agreed to back up
a primary  guarantor's  obligation  to guarantee an agreed upon internal rate of
return to the investor in Related Capital Guaranteed Corporate Partners II, L.P.
("RCGCP"), an affiliate of the Manager (see Note 7 in the accompanying financial
statements).

The  transaction  was  structured  as two  separate  guarantees,  one  primarily
guaranteeing  the IRR through the lease-up phase of the properties and the other
guaranteeing the IRR through the operating phase of the properties.  The fee for
the first guarantee,  in the amount of approximately  $3.6 million,  was paid in
July  2002 at  closing.  The fee for the  second  guarantee  will be paid in two
installments.  The  first  installment,  in the  amount  of  approximately  $1.7
million, will be paid in October 2003, and the final installment,  in the amount
of  approximately  $566,000,  will be paid in February 2004.  These fees will be
recognized in income on a straight line basis over the period of the  respective
guarantees.  Should the Company's analysis of risk of loss change in the future,
a provision  for  possible  losses might be required;  such  provision  could be
material.

Additionally,  the Company  entered into the CMC  Transaction,  assuming a third
party's first loss position of  approximately  $46.9 million on a $351.9 million
pool of  tax-exempt  mortgage  loans,  for a fee. The fee is paid to the Company
monthly, in equal  installments,  spread over the term of the transaction and is
recognized  as income as  received.  The Company  monitors  the  portfolio on an
ongoing basis and at September 30, 2002,  does not  anticipate  any losses to be
incurred.  Should the Company's analysis of risk of loss change in the future, a
provision  for  possible  losses  might be  required;  such  provision  could be
material.

                                       20
<PAGE>


Acquisitions
------------

During the period  January 1, 2002  through  September  30,  2002,  the  Company
acquired 35  tax-exempt  Revenue  Bonds,  eleven  taxable  Revenue Bonds and one
bridge loan with an aggregate  face amount of  approximately  $282 million,  not
including bond selection fees and expenses of approximately $5.7 million.

Forward-Looking Statements
--------------------------

Certain   statements  made  in  this  report  may  constitute   "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended,  and Section 21E of the  Securities  Exchange Act of 1934,  as amended.
Such forward-looking  statements include statements regarding the intent, belief
or current  expectations of the Company and its management and involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performance or achievements of the Company to be materially  different
from any future  results,  performance or  achievements  expressed or implied by
such forward-looking  statements.  Such factors include, among other things, the
following:  general  economic and business  conditions,  which will, among other
things,  affect the availability and  creditworthiness  of prospective  tenants,
lease rents and the terms and availability of financing for properties  financed
by Revenue  Bonds  owned by the  Company;  adverse  changes  in the real  estate
markets including,  among other things,  competition with other companies; risks
of  real  estate   development  and   acquisition;   governmental   actions  and
initiatives; and environment/safety  requirements.  Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of
the date hereof.

Inflation
---------

Inflation  did not have a  material  effect  on the  Company's  results  for the
periods presented.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The  nature  of the  Company's  investments  and the  instruments  used to raise
capital  for their  acquisition  expose  the  Company to gains and losses due to
fluctuations  in  market  interest  rates.  Market  interest  rates  are  highly
sensitive  to  many  factors,  including  governmental  policies,  domestic  and
international  political  considerations and other factors beyond the control of
the Company.

Revenue Bonds generally bear interest at fixed rates, or pay interest  according
to the cash flows of the  Underlying  Properties,  which do not  fluctuate  with
changes in market interest rates. In contrast,  payments  required under the TOP
program and on the secured  borrowings  under the P-FLOATS program vary based on
market  interest  rates  based on the Bond  Market  Association  ("BMA") and are
re-set weekly.

Various  financial  vehicles  exist  which  would allow  Company  management  to
mitigate the impact of interest rate  fluctuations  on the Company's  cash flows
and earnings.  Beginning in 2001, and upon management's analysis of the interest
rate environment and the costs and risks of such strategies, the Company entered
into two interest rate swaps in order to hedge against increases in the floating
interest  rate on its TOP and P-FLOATS  programs.  Under such interest rate swap
agreements,  the Company is required to pay Merrill Lynch Capital  Services (the
"Counterparty")  a fixed  rate on a  notional  amount of debt.  In  return,  the
Counterparty  will  pay  the  Company  a  floating  rate  equivalent  to the BMA
Municipal  Swap Index,  an index of weekly  tax-exempt  variable  rate issues on
which the Company's  variable rate financing  programs are based.  On January 5,
2001, the Company entered into a five-year interest rate swap that fixes the BMA
index to 3.98% on a notional  amount of $50  million.  On February 5, 2001,  the
Company entered into a three-year interest rate swap that fixes the BMA index to
3.64% on an additional  notional amount of $100 million.  This effectively fixes
$50 million and $100 million of the  Company's  secured  borrowings at 3.98% and
3.64%, respectively,  protecting the Company in the event the BMA Municipal Swap
Index rises.  For the quarter ended  September 30, 2002,  the Company's  cost to
borrow funds  through the TOP and P-FLOATS  programs  averaged  2.32% and 2.38%,
respectively,  which  does not  include  the  effect  of the  Company's  hedging
activities.

With respect to the portion of the Company's  floating rate  financing  programs
which  are not  hedged,  a change  in BMA rate  would  result  in  increased  or
decreased payments under the financing programs,  without a corresponding change
in cash flows from the investments in Revenue Bonds.  For example,  based on the

                                       21
<PAGE>


unhedged $379 million  outstanding  under these financing  programs at September
30, 2002,  the Company  estimates that an increase of 1.0% in the BMA rate would
increase   interest  expense  and  therefore   decrease  annual  net  income  by
approximately  $3.8 million.  Conversely,  a decrease in market  interest  rates
would  generally  benefit the Company in the same amount  described  above, as a
result of decreased interest expense without corresponding decreases in interest
received on the Revenue Bonds.

Changes in market  interest  rates would also impact the estimated fair value of
the Company's  portfolio of Revenue Bonds. The Company  estimates the fair value
for each Revenue Bond as the present value of its expected  cash flows,  using a
discount rate for comparable tax-exempt and taxable investments.  Therefore,  as
market  interest  rates for  tax-exempt and taxable  investments  increase,  the
estimated fair value of the Company's Revenue Bonds will generally decline,  and
a decline in  interest  rates  would be expected to result in an increase in the
estimated fair values.  For example,  the Company projects that a 1% increase in
market rates for tax-exempt and taxable investments would decrease the estimated
fair value of its  portfolio of Revenue  Bonds from its September 30, 2002 value
of  $1,402,979,000  to  approximately  $1,239,109,000.  A 1% decline in interest
rates  would  increase  the  value  of  the  September  30,  2002  portfolio  to
approximately $1,622,066,000. Changes in the estimated fair value of the Revenue
Bonds do not impact the  Company's  reported  net  income,  earnings  per share,
distributions   or  cash  flows,   but  are  reported  as  components  of  other
comprehensive income and affect reported shareholders' equity.

The  assumptions  related to the  foregoing  discussion  of market risk  involve
judgments   involving  future  economic  market  conditions,   future  corporate
decisions and other interrelating  factors, many of which are beyond the control
of the Company and all of which are  difficult  or  impossible  to predict  with
accuracy.  Although the Company  believes that the  assumptions  underlying  the
forward-looking  information  are reasonable,  any of the  assumptions  could be
inaccurate and,  therefore,  there can be no assurance that the  forward-looking
information  included  herein will prove to be accurate.  Due to the significant
uncertainties  inherent in  forward-looking  information,  the inclusion of such
information  should not be regarded as a representation  of the Company that the
objectives and plans of the Company would be achieved.

Item 4. Controls and Procedures

(a)  Evaluation  of Disclosure  Controls and  Procedures.  The  Company's  Chief
     Executive   Officer  and  Chief   Financial   Officer  have  evaluated  the
     effectiveness of the Company's  disclosure controls and procedures (as such
     term is defined in Rules  13a-14(c)  under the  Securities  Exchange Act of
     1934, as amended (the "Exchange Act")) as of a date within 90 days prior to
     the filing date of this quarterly report (the "Evaluation Date").  Based on
     such  evaluation,  such officers have concluded  that, as of the Evaluation
     Date,  the Company's  disclosure  controls and  procedures are effective in
     alerting  them on a timely  basis to material  information  relating to the
     Company (including its consolidated  subsidiaries)  required to be included
     in the Company's reports filed or submitted under the Exchange Act.

(b)  Changes in Internal  Controls.  Since the Evaluation  Date,  there have not
     been any significant changes in the Company's internal controls or in other
     factors that could significantly affect such controls.

                                       22
<PAGE>


                           PART II. OTHER INFORMATION

Item 1.   Legal Proceedings

          The Company is not a party to any material pending legal proceedings.

Item 2.   Changes in Securities and Use of Proceeds - None.

Item 3.   Defaults Upon Senior Securities - None

Item 4.   Submission of Matters to a Vote of Security Holders - None

Item 5.   Other Information - None

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits:

          991. Chief  Executive  Officer  certification  pursuant  to 18  U.S.C.
               Section  1350,  as  adopted   pursuant  to  Section  906  of  the
               Sarbanes-Oxley Act of 2002.

          992. Chief  Financial  Officer  certification  pursuant  to 18  U.S.C.
               Section  1350,  as  adopted   pursuant  to  Section  906  of  the
               Sarbanes-Oxley Act of 2002.

          (b)  Reports on Form 8-K

               Current  report  on  Form  8-K  relating  to the  Company  making
               available  unaudited  supplemental  data regarding its operations
               for the first quarter of 2002, dated and filed July 2, 2002.

               Current  report on Form 8-K relating to the Company's  renewal of
               the  management   agreements  between  the  Company  and  Related
               Charter, L.P. and the Company and CharterMac Corporation.


                                       23
<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                  (Registrant)



Date:  November 13, 2002            By: /s/ Stuart J. Boesky
                                        --------------------
                                        Stuart J. Boesky
                                        Managing Trustee, President
                                        and Chief Executive Officer




Date:  November 13, 2002            By: /s/Stuart A. Rothstein
                                        ----------------------
                                        Stuart A. Rothstein
                                        Chief Financial Officer and Chief
                                        Accounting Officer


<PAGE>

                                  CERTIFICATION


I, Stuart J. Boesky, hereby certify that:


     1.   I have  reviewed  this  quarterly  report  on  Form  10-Q  of  Charter
          Municipal Mortgage Acceptance Company;

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary  in  order  to make  the  statements  made,  in light of the
          circumstances  under which such  statements  were made, not misleading
          with respect to the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this quarterly report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:

          a) designed  such  disclosure  controls and  procedures  to ensure the
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

          b) evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

          c)  presented  in this  quarterly  report  our  conclusions  about the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's   board  of  directors  or  persons
          performing the equivalent functions:

          a) all significant deficiencies in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

          b) any fraud,  whether or not material,  that  involves  management or
          other  employees  who  have a  significant  role  in the  registrant's
          internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this quarterly report whether or not there were significant changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.



Date: November 13, 2002                            By:  /s/Stuart J. Boesky
      -----------------                                 -------------------
                                                        Stuart J. Boesky
                                                        Chief Executive Officer


<PAGE>


                                  CERTIFICATION


I, Stuart A. Rothstein, hereby certify that:


     1.   I have  reviewed  this  quarterly  report  on  Form  10-Q  of  Charter
          Municipal Mortgage Acceptance Company;

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary  in  order  to make  the  statements  made,  in light of the
          circumstances  under which such  statements  were made, not misleading
          with respect to the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this quarterly report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:

          a) designed  such  disclosure  controls and  procedures  to ensure the
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

          b) evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

          c)  presented  in this  quarterly  report  our  conclusions  about the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's   board  of  directors  or  persons
          performing the equivalent functions:

          a) all significant deficiencies in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

          b) any fraud,  whether or not material,  that  involves  management or
          other  employees  who  have a  significant  role  in the  registrant's
          internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this quarterly report whether or not there were significant changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.



Date: November 13, 2002                            By:  /s/ Stuart A. Rothstein
      -----------------                                 -----------------------
                                                        Stuart A. Rothstein
                                                        Chief Financial Officer


<PAGE>

                                                                    Exhibit 99.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Charter Municipal Mortgage Acceptance
Company (the "Company") on Form 10-Q for the period ending September 30, 2002 as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"), I, Stuart J. Boesky, Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:


     (1) The Report fully  complies  with the  requirements  of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


     (2)  The  information  contained  in the  Report  fairly  presents,  in all
material  respects,  the  financial  condition  and results of operations of the
Company.


By:  /s/ Stuart J. Boesky
     --------------------
     Stuart J. Boesky
     Chief Executive Officer
     November 13, 2002


<PAGE>


                                                                    Exhibit 99.2

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Charter Municipal Mortgage Acceptance
Company (the "Company") on Form 10-Q for the period ending September 30, 2002 as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"),  I, Stuart A.  Rothstein,  Chief  Financial  Officer of the  Company,
certify,  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:


     (1) The Report fully  complies  with the  requirements  of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


     (2)  The  information  contained  in the  Report  fairly  presents,  in all
material  respects,  the  financial  condition  and results of operations of the
Company.


By:  /s/ Stuart A. Rothstein
     -----------------------
     Stuart A. Rothstein
     Chief Financial Officer
     November 13, 2002