<PAGE>

                       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 March 31, 2000


                                       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
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    ----------------------------
                                                                      March 31,     December 31,
                                                                        2000            1999
                                                                    ------------    ------------
<S>                                                                 <C>             <C>
ASSETS
First mortgage bonds-at fair value                                  $592,125,000    $587,892,000
Other bond related investments-at fair value                             560,000         560,000
Temporary investments                                                 33,200,000      45,541,000
Cash and cash equivalents                                             15,308,440       8,653,503
Cash and cash equivalents-restricted                                   1,606,225       1,028,209
Interest receivable, net                                               2,996,310       2,803,278
Promissory notes receivable                                           10,084,061      10,148,060
Deferred costs, net                                                   14,435,051      14,222,451
Goodwill, net                                                          2,588,797       2,674,626
Other assets                                                             265,049         268,097
                                                                     -----------     -----------
Total assets                                                        $673,168,933    $673,791,224
                                                                     ===========     ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:
   Secured borrowings                                               $ 80,769,616    $ 80,769,616
   Accounts payable, accrued expenses and
     other liabilities                                                 2,403,289       2,306,306
   Due to Manager and affiliates                                       1,316,624       1,218,211
   Distributions payable to preferred shareholders
     of subsidiary                                                     1,490,625       1,490,625
   Distributions payable to shareholders                               5,454,394       5,453,971
                                                                     -----------     -----------
Total liabilities                                                     91,434,548      91,238,729
                                                                     -----------     -----------

Minority interest in subsidiary
   (subject to mandatory redemption)                                 177,000,000     177,000,000
                                                                     -----------     -----------
Preferred shares of subsidiary (subject to mandatory
   repurchase)                                                        90,000,000      90,000,000
                                                                     -----------     -----------
Commitments and contingencies

SHAREHOLDERS' EQUITY:
   Beneficial owner's equity-manager                                     501,631         441,878
   Beneficial owners' equity-other shareholders
     (50,000,000 shares authorized; 20,591,017 issued
     and 20,582,617 outstanding and 20,589,375
     shares issued and 20,580,975 outstanding in
     2000 and 1999, respectively)                                    313,281,866     312,800,380
   Treasury shares of beneficial interest (8,400 shares)                (103,359)       (103,359)
   Accumulated other comprehensive income                              1,054,247       2,413,596
                                                                     -----------     -----------
Total shareholders' equity                                           314,734,385     315,552,495
                                                                     -----------     -----------

Total liabilities and shareholders' equity                          $673,168,933    $673,791,224
                                                                     ===========     ===========
</TABLE>

           See accompanying notes to consolidated financial statements

                                        2
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     ---------------------------
                                                                         Three Months Ended
                                                                              March 31,
                                                                     ---------------------------
                                                                        2000            1999
                                                                     ---------------------------
<S>                                                                  <C>             <C>
Revenues:
   Interest income:
     First mortgage bonds                                            $11,205,357     $ 7,921,003
     Other bond related
       investments                                                       135,747               0
     Temporary investments                                               467,654         102,522
     Promissory notes                                                    242,211         165,159
                                                                      ----------      ----------
     Total revenues                                                   12,050,969       8,188,684
                                                                      ----------      ----------

Expenses:
   Interest expense                                                      914,275           8,368
   Recurring fees relating to the
     Private Label Tender Option
     Program                                                             426,978         319,750
   Loan servicing and asset
     management fees                                                     396,504         287,749
   General and administrative                                            448,199         335,069
   Amortization                                                          110,699          78,512
                                                                      ----------      ----------
     Total expenses                                                    2,296,655       1,029,448
                                                                      ----------      ----------

Income before loss on repayment
   of first mortgage bonds                                             9,754,314       7,159,236

Loss on repayment of first mortgage bond                                       0         (25,493)
                                                                      ----------      ----------

Income  before minority interests                                      9,754,314       7,133,743
   Income allocated to preferred
     shareholders of subsidiary                                       (1,490,625)              0
   Minority interest in income of
     subsidiary                                                       (1,693,300)     (1,128,221)
                                                                      ----------      ----------
Net income                                                             6,570,389       6,005,522

Special allocation of net income to
   the Manager                                                          (654,512)       (487,362)
                                                                      ----------      ----------

Net income applicable to
   shareholders                                                      $ 5,915,877     $ 5,518,160
                                                                      ==========      ==========

Net income per share (basic and
   diluted)                                                          $       .29     $       .27
                                                                      ==========      ==========

Weighted average shares
   outstanding (basic and
   diluted)                                                           20,581,805      20,580,086
                                                                      ==========      ==========
</TABLE>

           See accompanying notes to consolidated financial statements

                                       3
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CHANGES IN
                              SHAREHOLDERS' EQUITY
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               Beneficial                               Accumu-
                                                 Beneficial     Owners'       Treasury                 lated Other
                                                   Owner's      Equity-       Shares of    Compre-       Compre-
                                                  Equity -       Other       Beneficial    hensive       hensive
                                                   Manager    Shareholders    Interest      Income        Income        Total
                                                   -------    ------------    --------      ------        ------        -----
<S>                                              <C>          <C>            <C>          <C>          <C>           <C>
Balance at January 1, 2000                        $441,878    $312,800,380    $(103,359)                $2,413,596   $315,552,495
Comprehensive income:
Net income                                         654,512       5,915,877            0   $6,570,389             0      6,570,389
Other comprehensive loss:
  Net unrealized loss on first mortgage bonds
   and bond related investments:
  Net unrealized holding loss arising
   during the period                                                                      (1,359,349)   (1,359,349)    (1,359,349)
                                                                                          ----------
Comprehensive income                                                                      $5,211,040
                                                                                          ==========
Issuance of shares of beneficial interest                0          20,000            0                          0         20,000
Distributions                                     (594,759)     (5,454,391)           0                          0     (6,049,150)
                                                   -------     -----------     --------                  ---------    -----------

Balance at March 31, 2000                         $501,631    $313,281,866    $(103,359)                $1,054,247   $314,734,385
                                                   =======     ===========     ========                  =========    ===========
</TABLE>


See accompanying notes to consolidated financial statements


                                       4
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     ---------------------------
                                                                         Three Months Ended
                                                                              March 31,
                                                                     ---------------------------
                                                                         2000            1999
                                                                     -----------     -----------
<S>                                                                  <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                        $ 6,570,389     $ 6,005,522
                                                                      ----------      ----------
   Adjustments to reconcile net income to net cash
     provided by operating activities:
   Loss on repayment of first mortgage bond                                    0          25,493
   Amortization                                                          110,699          78,512
   Amortization of goodwill                                               85,829          37,538
   Amortization of bond selection costs                                  176,079          79,017
   Accretion of deferred income                                          (16,547)        (16,553)
   Income allocated to preferred shareholders
     of subsidiary                                                     1,490,625               0
   Changes in operating assets and liabilities:
     Interest receivable                                                (193,032)         68,692
     Other assets                                                          3,048         (15,192)
     Accounts payable, accrued expenses and
       other liabilities                                                 106,922         123,598
     Due to Manager and
       affiliates                                                        108,026         199,391
                                                                      ----------      ----------
   Total adjustments                                                   1,871,649         580,496
                                                                      ----------      ----------
Net cash provided by operating activities                              8,442,038       6,586,018
                                                                      ----------      ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from repayment of first mortgage bond                          7,937       5,100,000
   Purchase of first mortgage bond                                    (5,600,000)     (6,400,000)
   Increase in deferred bond selection costs                            (205,670)       (165,968)
   Net sale (purchase) of temporary investments                       12,341,000      (5,000,000)
   Increase in other deferred costs                                     (174,039)              0
   Loans made to property                                                      0        (307,185)
   Principal payments received from loans made to
     properties                                                           63,999          33,204
                                                                      ----------      ----------
Net cash provided by (used in) investing activities                    6,433,227      (6,739,949)
                                                                      ----------      ----------
                                                                                          (continued)
</TABLE>

          See accompanying notes to consolidated financial statements

                                       5
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     ---------------------------
                                                                        Three Months Ended
                                                                              March 31,
                                                                     ---------------------------
                                                                         2000            1999
                                                                     -----------     -----------
<S>                                                                  <C>             <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
   Distributions paid to the Manager and shareholders
     of the Company                                                   (6,038,340)     (5,356,698)
   Distributions paid to preferred shareholders
     of subsidiary                                                    (1,490,625)              0
   Increase in cash and cash equivalents - restricted                   (578,016)              0
   Increase in deferred costs relating to the
     Private Label Tender Option Program                                 (38,004)        (90,245)
   Increase in deferred costs relating to
     the issuance of preferred stock of subsidiary                        (3,827)              0
   Increase in other deferred costs                                      (71,516)              0
                                                                      ----------      ----------
Net cash used in financing activities                                 (8,220,328)     (5,446,943)
                                                                      ----------      ----------

Net increase (decrease) in cash and
   cash equivalents                                                    6,654,937      (5,600,874)
Cash and cash equivalents at the
   beginning of the period                                             8,653,503      13,093,023
                                                                      ----------      ----------
Cash and cash equivalents at the
   end of the period                                                 $15,308,440     $ 7,492,149
                                                                      ==========      ==========

SUPPLEMENTAL INFORMATION:
   Interest paid                                                     $   943,117     $     8,368
                                                                      ==========      ==========


SUPPLEMENTAL DISCLOSURE OF NONCASH
   ACTIVITIES:

Payable to trustees liquidated through the issuance
   of shares of beneficial interest                                  $    20,000     $    20,000
                                                                      ==========      ==========

Adjustment to goodwill due to the
   Discounted Cash Settlement:

   Decrease in goodwill                                              $         0     $ 1,698,986
   Decrease in accounts payable, accrued
     expenses and other liabilities                                            0      (1,698,986)
                                                                      ----------      ----------

                                                                     $         0     $         0
                                                                      ==========      ==========
</TABLE>

          See accompanying notes to consolidated financial statements

                                       6
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)

NOTE 1 - GENERAL

Charter Municipal Mortgage Acceptance Company (the "Company") is a Delaware
business trust which is engaged in the acquisition and ownership (either
directly or indirectly) of tax-exempt participating and non-participating first
mortgage bonds ("FMBs") issued by various state or local governments or other
agencies or authorities and secured by participating and non-participating
mortgage loans on the underlying properties ("Underlying Properties"). FMBs that
contain provisions for participating interest are referred to as
"participating"; FMBs lacking this provision are "non-participating". As of
March 31, 2000 the Company owned a portfolio of 70 FMBs.

The Company is governed by a board of trustees comprised of three independent
managing trustees and four managing trustees who are affiliated with Related
Capital Company ("Related"), a nationwide, fully integrated real estate services
firm. The Company has engaged Related Charter LP (the "Manager"), an affiliate
of Related, to manage its day-to-day affairs.

The consolidated financial statements include the accounts of the Company and
four majority owned subsidiary business trusts which it controls: CM Holding
Trust, Charter Mac Equity Issuer Trust, Charter Mac Origination Trust I and
Charter Mac Owner Trust I (see Notes 6 and 7). All intercompany accounts and
transactions have been eliminated in consolidation.

The accompanying 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 position of the Company as of March 31, 2000 and the results of
its operations and its cash flows for the three months ended March 31, 2000 and
1999. 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 generally accepted accounting
principles ("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, 1999.

The preparation of financial statements in conformity with GAAP 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.

Certain amounts in the 1999 financial statements have been reclassified to
conform to the 2000 presentation.


          See accompanying notes to consolidated financial statements

                                       7
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)

NOTE 2 - FIRST MORTGAGE BONDS

As of March 31, 2000, the Company and its consolidated subsidiaries owned 70
FMBs (22 participating FMBs (see Footnote K below) and 48 non-participating
FMBs). Three of the FMBs are taxable FMBs acquired in connection with the
purchase of tax-exempt FMBs. The taxable FMBs are secured by the same Underlying
Properties which secure the associated tax-exempt FMBs. The following table
provides certain information with respect to each of the FMBs.

<TABLE>
<CAPTION>
                                                              Stated                                           Fair Value
                                                   Closing   Interest                            Face Amount    at March
Property                       Location              Date      Rate    Call Date  Maturity Date    of FMB     31, 2000 (A)
--------                       --------            --------  --------  ---------  -------------  -----------  ------------
<S>                            <C>                 <C>       <C>       <C>        <C>            <C>          <C>
TAX-EXEMPT FIRST MORTGAGE BONDS

OWNED BY THE COMPANY (NOT INCLUDING ITS CONSOLIDATED SUBSIDIARIES)
Highpointe Club (K)(N)         Harrisburg, PA       7/29/86    8.50%   June 1998    June 2006    $ 8,900,000   $ 5,769,000
                                                                                                 -----------   -----------

OWNED BY CHARTER MAC EQUITY ISSUER TRUST (H)
Barnaby Manor (P)(S)           Washington, DC       11/23/99   7.375   May 2017     May 2032       4,500,000     4,559,000
Casa Ramon (P)                 Orange County, CA    6/8/99     7.50    Oct. 2015    Sep. 2035         50,000(Q)     52,000
Chapel Ridge of Little Rock    Little Rock, AR      8/12/99    7.125   Aug. 2015    Aug. 2039      5,600,000     5,481,000
   (O)(S)
Chapel Ridge of Texarkana      Texarkana, AR        9/29/99    7.375   Oct. 2016    Sept. 2041     5,800,000     5,876,000
   (O)(S)
Country Lake (P)               West Palm Beach, FL  11/9/99    (V)     June 2015    June 2032      6,255,000     6,255,000
Del Monte Pines (R)(P)         Fresno, CA           5/6/99     6.80    May 2017     May 2036      11,000,000    10,275,000
Douglas Pointe(O)(S)(R)        Miami, FL            9/28/99    7.00    Oct. 2026    Sept. 2041     7,100,000     6,827,000
Forest Hills (R)(P)            Garner, NC           12/15/98   7.125   June 2016    June 2034      5,930,000     5,775,000
Fort Chaplin (P)               Washington, DC       12/21/99   6.90    Jan. 2016    Jan. 2036     25,800,000    24,453,000
Franciscan Riviera (P)(R)      Antioch, CA          8/24/99    7.125   Apr. 2016    Aug. 2036      6,587,500     6,447,000
Garfield Park (P)              Washington, DC       8/31/99    7.25    Aug. 2017    Aug. 2031      3,260,000     3,247,000
Greenbriar (M)(P)              Concord, CA          5/6/99     6.875   May 2017     May 2036       9,585,000     9,052,000
Hamilton Gardens (R)(P)        Hamilton, NJ         3/26/99    (U)     Apr. 2015    Mar. 2035      6,400,000     6,264,000
Lake Jackson (R)               Lake Jackson, TX     12/22/98   7.00    Jan. 2018    Jan. 2041     10,934,000    10,513,000
Lakemoor (O)(S)                Durham, NC           12/23/99   7.25    Jan. 2017    Dec. 2041      9,000,000     8,963,000
Lake Park (P)                  Turlock, CA          6/8/99(T)  7.25    Oct. 2015    Sep. 2035      3,638,000     3,623,000
Lakes Edge At Walden (P)(M)    Miami, FL            7/1/99     6.90    June 2016    May 2035      14,850,000    14,075,000
Lennox Park (O)(S)(M)          Gainesville, GA      7/29/99    6.80    Aug. 2021    July 2041     13,000,000    12,143,000
Lewis Place (O)(S)(M)          Gainsville, FL       6/22/99    (I)     June 2016    June 2041      4,000,000     3,709,000
Mountain Ranch (R)(O)          Austin, TX           12/23/98   7.125   Jan. 2018    Jan. 2041      9,128,000     8,934,000
Standiford (P)(R)              Modesto, CA          9/20/99    7.125   Apr. 2016    Aug. 2036      9,520,000     9,317,000
Summerlake (0)(S)              Davie, FL            3/14/00    7.40    Apr. 2027    Mar. 2042      5,600,000     5,600,000
Sunset Creek (M)               Lancaster, CA        3/25/88    8.50    Mar. 2000    Mar. 2008      8,275,000     6,225,000
Sunset Village (M)             Lancaster, CA        3/25/88    8.50    Mar. 2000    Mar. 2008     11,375,000     8,557,000
Sycamore Woods (R)(P)          Antioch, CA          5/6/99     6.875   May 2017     May 2036       9,415,000     8,891,000
Tallwood (O)(S)(R)             Virginia Beach, VA   9/30/99    7.25    Nov. 2017    Oct. 2041      6,205,000     6,179,000
                                                                                                 -----------   -----------
                                                                                                 212,807,500   201,292,000
                                                                                                 -----------   -----------


                                       8
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)

NOTE 2 - FIRST MORTGAGE BONDS (continued)

<CAPTION>
                                                              Stated                                           Fair Value
                                                   Closing   Interest                            Face Amount    at March
Property                       Location              Date      Rate    Call Date  Maturity Date    of FMB     31, 2000 (A)
--------                       --------            --------  --------  ---------  -------------  -----------  ------------
<S>                            <C>                 <C>       <C>       <C>        <C>            <C>          <C>
OWNED BY CHARTER MAC ORIGINATION TRUST I (H)(L)

Bay Club (K)                   Mt. Pleasant, SC    9/11/86     8.25    Sep. 2000    Sep. 2006      6,400,000     7,253,000
Clarendon Hills (K)            Hayward, CA         12/08/86    5.52    Dec. 2003    Dec. 2003     17,600,000    13,599,000
Cypress Run (K)                Tampa, FL           8/14/86     8.50    Aug. 1998    Aug. 2006     15,402,428    13,576,000
East Ridge (K)                 Mt. Pleasant, SC    5/20/86     8.25    Mar. 2000    May 2010       8,700,000     9,859,000
Greenway Manor (K)(N)          St. Louis, MO       10/09/86    8.50    Oct. 1998    Sept. 2006    12,850,000    15,003,000
The Lakes (K)                  Kansas City, MO     12/30/86    4.87    Dec. 2006    Dec. 2006     13,650,000     9,821,000
Loveridge (K)(N)               Contra Costa, CA    11/13/86    8.00    Nov. 1998    Nov. 2006      8,550,000     6,459,000
Martin's Creek (K)             Summerville, SC     5/20/86     8.25    Mar. 2000    May 2010       7,300,000     8,273,000
                                                                                                 -----------   -----------
                                                                                                  90,452,428    83,843,000
                                                                                                 -----------   -----------




                                       9
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)

NOTE 2 - FIRST MORTGAGE BONDS (continued)

<CAPTION>
                                                              Stated                                           Fair Value
                                                   Closing   Interest                            Face Amount    at March
Property                       Location              Date      Rate    Call Date  Maturity Date    of FMB     31, 2000 (A)
--------                       --------            --------  --------  ---------  -------------  -----------  ------------
<S>                            <C>                 <C>       <C>       <C>        <C>            <C>          <C>
OWNED BY CHARTER MAC OWNER TRUST I (J) (H)

Bedford Square                 Clovis, CA          8/25/98     (D)     Sep. 2017    Aug. 2040      3,850,000     3,371,000
Bristol Village                Bloomington, MN     7/31/87     7.50    Jan. 2010    Dec. 2027     17,000,000    17,513,000
Carrington Pointe              Los Banos, CA       9/24/98     6.375   Oct. 2017    Sep. 2040      3,375,000     2,955,000
Cedarbrook                     Hanford, CA         4/28/98     7.125   May 2017     May 2040       2,840,000     2,779,000
Cedar Creek (K)(N)             McKinney, TX        12/29/86    8.50    Dec. 1998    Dec. 2006      8,100,000     9,457,000
Cedar Pointe (K)               Nashville, TN       4/22/87     7.00    Apr. 2006    Apr. 2017      9,500,000     9,134,000
College Park (O)(S)            Naples, FL          7/15/98     (C)     Jul. 2025    Jul. 2040     10,100,000     9,711,000
Crowne Pointe (K)              Olympia, WA         12/31/86    7.25    Dec. 1998    Aug. 2029      5,075,000     5,054,000
Falcon Creek (O)(S)            Indianapolis, IN    9/14/98     (F)     Sep. 2016    Aug. 2038      6,144,600     6,119,000
Gulfstream (P)                 Dania, FL           7/22/98     7.25    Apr. 2016    Jul. 2038      3,500,000     3,486,000
Highland Ridge (K)             St. Paul, MN        2/02/87     7.25    June 2010    June 2018     15,000,000    14,938,000
Jubilee Courtyards             Florida City, FL    9/15/98     (G)     Oct. 2025    Sep. 2040      4,150,000     4,062,000
Lakepoint (K)                  Stone Mountain, GA  11/18/87    6.00    Jul. 2005    June 2017     15,100,000    12,445,000
Madalyn Landing                Palm Bay, FL        11/13/98    7.00    Dec. 2017    Nov. 2040     14,000,000    13,461,000
The Mansion                    Independence, MO    5/13/86     7.25    Jan. 2011    April 2025    19,450,000    19,678,000
Marsh Landings                 Portsmouth, VA      5/20/98     7.25    Jul. 2017    Jul. 2030      6,050,000     6,025,000
Newport Village (K)            Tacoma, WA          2/11/87     7.25    Jan. 1999    Aug. 2029     13,000,000    12,946,000
North Glen (K)                 Atlanta, GA         9/30/86     (W)     Jul. 2005    June 2017     12,400,000    12,775,000
Northpointe Village            Fresno, CA          8/25/98     (E)     Sep. 2017    Aug. 2040     13,250,000    13,650,000
Ocean Air (P)(S)               Norfolk, VA         4/20/98     7.25    Jan. 2016    Nov. 2030     10,000,000     9,959,000
Orchard Hills (K)              Tacoma, WA          12/31/86    7.25    Dec. 1998    Aug. 2029      5,650,000     5,627,000
Orchard Mill (K)               Atlanta, GA         12/31/86    7.50    Jul. 2005    June 2017     10,500,000    10,517,000
Pelican Cove (K)(N)            St. Louis, MO       2/27/87     8.00    Feb. 1999    Feb. 2007     18,000,000    19,780,000
Phoenix                        Stockton, CA        4/28/98     7.125   Nov. 2016    Oct. 2029      3,250,000     3,168,000
River Run (K)                  Miami, FL           8/7/87      8.00    Aug. 1999    Aug. 2007      7,200,000     7,912,000
Shannon Lake (K)               Atlanta, GA         6/26/87     (B)     Jul. 2005    June 2017     12,000,000    11,538,000
Silvercrest                    Clovis, CA          9/24/98     7.125   Oct. 2017    Sep. 2040      2,275,000     2,227,000
Stone Creek                    Watsonville, CA     4/28/98     7.125   May 2017     Apr. 2040      8,820,000     8,632,000
Sunset Downs                   Lancaster, CA       2/11/87     8.00    May 1999     May 2007      15,000,000    11,284,000
Sunset Terrace                 Lancaster, CA       2/12/87     8.00    Feb. 1999    May 2007      10,350,000     7,786,000
Thomas Lake                    Eagan, MN           9/02/86     7.50    Jan. 2010    Dec. 2027     12,975,000    13,367,000
Willow Creek (K)               Ames, IA            2/27/87     7.25    Jan. 2010    June 2022      6,100,000     6,075,000
                                                                                                 -----------   -----------

                                                                                                 304,004,600   297,431,000
                                                                                                 -----------   -----------

Subtotal - Tax-Exempt First Mortgage Bonds                                                       616,164,528   588,335,000
                                                                                                 -----------   -----------



                                       10
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)

NOTE 2 - FIRST MORTGAGE BONDS (continued)

<CAPTION>
                                                              Stated                                           Fair Value
                                                   Closing   Interest                            Face Amount    at March
Property                       Location              Date      Rate    Call Date  Maturity Date    of FMB     31, 2000 (A)
--------                       --------            --------  --------  ---------  -------------  -----------  ------------
<S>                            <C>                 <C>       <C>       <C>        <C>            <C>          <C>
TAXABLE FIRST MORTGAGE BONDS

OWNED BY THE COMPANY (NOT INCLUDING ITS CONSOLIDATED SUBSIDIARIES)
Greenbriar (P)                 Concord, CA         5/6/99      9.00    May 2017     May 2036       2,015,000     2,015,000
Lake Park (P)                  Turlock, CA         7/15/99     9.00    Oct. 2015    Sep. 2035        375,000       375,000
Lakes Edge at Walden (P)       Miami, FL           10/6/99     11.00   June 2000    Aug. 2010      1,400,000     1,400,000
                                                                                                 -----------   -----------
Subtotal - Taxable First Mortgage Bonds                                                            3,790,000     3,790,000
                                                                                                 -----------   -----------

  Total First Mortgage Bonds                                                                    $619,954,528  $592,125,000
                                                                                                 ===========   ===========
</TABLE>

(A)  The FMBs are deemed to be available-for-sale debt securities and,
     accordingly, are carried at their estimated fair values at March 31, 2000.
(B)  Pursuant to a bond modification as of October 1, 1997, the base interest
     rate was lowered to 6% through July 31, 2000 and 7% thereafter.
(C)  The interest rates for College Park are 7% during the construction period
     and 7.25% thereafter. (D) The interest rates for Bedford Square are 7%
     during the construction period and 6.375% thereafter.
(E)  The interest rates for Northpointe Village are 7.965% through September 23,
     1998, 8.125% during the remainder of the construction period and 7.5%
     thereafter.
(F)  The interest rates for Falcon Creek are 7% through August 31, 2000 and
     7.25% thereafter.
(G)  The interest rates for Jubilee Courtyards are 7% through September 30, 2000
     and 7.125% thereafter.
(H)  This entity is a consolidated subsidiary of the Company (see Notes 6
     and 7).
(I)  The interest rates for Lewis Place are 6.75% through May 31, 2001 and 7.00%
     thereafter.
(J)  These FMBs have been transferred to Charter Mac Owner Trust I in connection
     with the Company's Private Label Tender Option Program (TOP) (see Note 6).
(K)  These FMBs are participating FMBs which contain additional interest
     features participating on available cash flow. FMBs that contain provisions
     for contingent interest are referred to as "participating"; FMBs lacking
     this provision are "non-participating".
(L)  The FMBs are held as collateral in connection with the TOP (see Note 6).
(M)  These FMBs are pledged as collateral in connection with the Merrill Lynch
     RITES/P-FLOATS Program (see Note 4).
(N)  The original owners of the Underlying Properties and the obligors of these
     FMBs have been replaced with affiliates of the Manager.
(O)  The Underlying Property is under construction. In the event construction is
     not completed in a timely manner, the Company may "put" the FMB to the
     construction lender at par.
(P)  The Underlying Property is undergoing substantial rehabilitation. In the
     event rehabilitation is not completed in a timely manner, the Company may
     "put" the FMB to the construction lender at par.
(Q)  Initial advance on an FMB which will have a face amount of $4,744,000 when
     it is fully funded.  The balance of $4,694,000 is expected to be funded in
     the second quarter of 2000.
(R)  Held by Merrill Lynch as collateral for secured borrowings (see Note 4).
(S)  All of the "puts" (see (O) and (P) above) are secured by a letter of credit
     issued by the construction lender to the Company.
(T)  Initial advance in the amount of $50,000 was funded on June 8, 1999. The
     balance was funded on July 15, 1999.
(U)  The interest rates for Hamilton Gardens are 7.625% during the construction
     period and 7.125% thereafter.
(V)  The interest rates for Country Lake are 6% until expected refunding in
     June 2000 and 7.25% thereafter.
(W)  Pursuant to a bond modification as of October 1, 1997, the base interest
     rate was lowered to 7% through June 30, 2000 and 7.50% thereafter.


                                       11
<PAGE>

NOTE 2 - FIRST MORTGAGE BONDS (continued)

The weighted average interest rates recognized on the face amount of the
portfolio of FMBs for the three months ended March 31, 2000 and 1999 were 7.37%
and 6.79%, respectively, based on weighted average face amounts of approximately
$608,242,440 and $466,792,362, respectively.

The Company accounts for its investments in the FMBs 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"
("SFAS 115"). Accordingly, the FMBs are carried at their estimated fair values,
with unrealized gains and losses reported in other comprehensive income.

Because the FMBs are not readily marketable, the Company estimates fair value
for each bond as the present value of its expected cash flows using a discount
rate for comparable tax-exempt investments. This process is based upon
projections of future economic events affecting the real estate collateralizing
the bonds, such as property occupancy rates, rental rates, operating cost
inflation, market capitalization rates and upon determination of an appropriate
market rate of interest, all of which are based on good faith estimates and
assumptions developed by the Manager. Changes in market conditions and
circumstances may occur which would cause these estimates and assumptions to
change; therefore, actual results may vary from the estimates and the variance
may be material.

The original obligors and owners of the Underlying Properties of the Cedar
Creek, Highpointe, Pelican Cove and Loveridge FMBs have been replaced with
affiliates of the Manager who have not made equity investments. These entities
have assumed the day-to-day responsibilities and obligations of the Underlying
Properties. Buyers are being sought who would make equity investments in the
Underlying Properties and assume the nonrecourse obligations for the FMB. These
properties are generally paying as interest an amount equal to the net cash flow
generated by operations, which in some cases is less than the stated rate of the
FMB. The Company has no present intention of declaring a default on these FMBs.
The aggregate carrying value of these four FMBs at March 31, 2000 and
December 31, 1999 was approximately $41,465,000 and the income earned from them
for the three months ended March 31, 2000 and 1999 was approximately $742,000
and $735,000, respectively.

From time to time, the Company, as an alternative to foreclosure in the event of
a default, enters into forbearance agreements and/or permanent modifications
with certain borrowers. The determination as to whether it is in the best
interest of the Company to enter into permanent modifications or forbearance
agreements on the FMBs, advance second mortgages, or alternatively, to pursue
its remedies under the loan documents, including foreclosure, is based upon
several factors. These factors include, but are not limited to, Underlying
Property performance, owner cooperation and projected costs of foreclosure and
litigation irrespective of whether the obligor has an affiliation with the
Manager or not. Payments under each of the existing forbearance agreements are
current as of March 31, 2000.

Seventeen of the Company's FMBs, with an aggregate face amount of $198,750,000,
have previously been modified (the modifications of four of such FMBs with an
aggregate face amount of $45,000,000 are subject to issuer approval). These
modifications have generally encompassed an extension of the maturity together
with a prepayment lock out feature and/or prepayment penalties together with an
extension of the mandatory redemption feature (5-10 years from modification).
Stated interest rates have also been adjusted together with a change in the
participation and contingent interest features. Base interest rates, contingent
interest, prepayment


                                       12
<PAGE>

lock-outs, mandatory redemption and maturity features are arrived at through
negotiations between the Company and the owners of the Underlying Properties and
vary dependent on the facts of a particular FMB, the owner of the Underlying
Property, the Underlying Property's performance and requirements of bond counsel
and local issuers. Should negotiations break down, the Company always has the
option to pursue its other remedies including acceleration and foreclosure. The
Company may modify other FMBs to reflect generally similar terms as those
modified previously, where and as appropriate. Significant modifications to
interest rates and maturity dates are subject to final approval of the local
issuers, bond counsel and indenture trustees.

With respect to the FMBs which are subject to forbearance agreements with the
respective obligors, the difference between the stated interest rates and the
rates paid (whether deferred and payable out of available future cash flow or,
ultimately, from sale or refinancing proceeds) on FMBs is not accrued for
financial statement purposes. The accrual of interest at the stated interest
rate will resume once an Underlying Property's ability to pay the stated rate
has been adequately demonstrated. Unrecorded contractual interest income was
approximately $684,000 and $724,000 for the three months ended March 31, 2000
and 1999, respectively.

In addition to the stated base rates of interest, 22 and 30 of the FMBs at March
31, 2000 and 1999, respectively, provided for "participating interest". During
the three months ended March 31, 2000 and 1999, six and three FMBs paid
participating interest amounting to approximately $1,050,000 and $103,000,
respectively.

From time to time the Company has advanced funds to owners of certain Underlying
Properties in order to preserve the underlying asset including completion of
construction and/or when Underlying Properties have experienced operating
difficulties including past due real estate taxes and/or deferred maintenance
items. Such advances typically are secured by promissory notes and/or second
mortgages. As of March 31, 2000 the face amount of such advances was
$15,257,019, their rates range from 8% to 13% and their carrying value was
$10,084,061, which is net of purchase accounting adjustments, and a reserve for
collectibility of $138,000. Such advances with an aggregate face amount of
$5,028,812, rates ranging from 8% to 9% and an aggregate carrying amount of
$0 were advanced to two obligors which are affiliates of the Manager.

The amortized cost basis of the Company's portfolio of 70 FMBs at March 31, 2000
and 69 FMBs at December 31, 1999 was $591,072,780 and $585,474,109,
respectively. The net unrealized gain on FMBs in the amount of $1,052,220 at
March 31, 2000 consisted of gross unrealized gains and losses of $16,536,853 and
$15,484,633, respectively. The net unrealized gain on FMBs in the amount of
$2,417,891 at December 31, 1999 consisted of gross unrealized gains and losses
of $16,484,461 and $14,066,570, respectively.

NOTE 3 - SECURITIZATION TRANSACTIONS

To raise additional capital to acquire additional FMBs, the Company has
securitized certain FMBs through the Merrill Lynch Pierce Fenner & Smith
Incorporated ("Merrill Lynch") P-FLOATS/RITES program. Under this program, the
Company transfers certain FMBs to Merrill Lynch. Merrill Lynch then deposits
each FMB into an individual special purpose trust created to hold such asset,
together with a Credit Enhancement Guarantee ("Guarantee"). Two types of
securities are then issued by each trust, evidencing ownership in the FMBs and
the Guarantee: (1) Puttable Floating Option Tax-Exempt Receipts ("P-FLOATS"), a
short-term senior security which bears interest at a floating rate that is reset
weekly by the Remarketing Agent, Merrill


                                       13
<PAGE>

Lynch, to result in the sale of the P-FLOAT security at par (up to 99% of the
underlying face amount of the FMB); and (2) Residual Interest Tax Exempt
Securities ("RITES), a subordinate security which receives the residual interest
payment after payment of P-FLOAT interest and ongoing transaction fees. The
P-FLOATS are sold to qualified third party, tax-exempt investors and the RITES
are sold back to the Company. The Company has the right, with 14 days notice to
the trustee, to purchase the outstanding P-FLOATS and withdraw the underlying
FMBs from the trust. When the FMBs are deposited into the P-FLOAT Trust, the
Company receives the proceeds from the sale of the P-FLOATS less certain
transaction costs. In certain other cases, Merrill Lynch may directly buy the
FMBs from local issuers, deposit them in the trust, sell the P-FLOAT security to
qualified investors and then the RITES to the Company.

For financial reporting purposes, due to the repurchase right, the Company
accounts for the net proceeds received upon the transfer of its FMBs to Merrill
Lynch through the P-FLOATS/RITES program as secured borrowings and, accordingly,
continues to account for the FMBs as its assets in the accompanying consolidated
balance sheets. When Merrill Lynch purchases FMBs directly and sells the RITES
to the Company, such RITES are classified as other bond related investments in
the accompanying consolidated balance sheets (See Note 4).

During the period May 1999 through December 1999, the Company transferred ten
FMBs with an aggregate face amount of $82,219,500 to Merrill Lynch through the
Merrill Lynch P-FLOATS/RITES program and received proceeds of $80,769,616.

During June 1999, Merrill Lynch purchased three FMBs with an aggregate face
amount of $22,430,000. The FMBs were placed into a trust by Merrill Lynch
whereby P-FLOATS and RITES were sold. The Company purchased the related RITES
interests with an aggregate face amount of $15,000 for an aggregate purchase
price of $579,118 which includes bond selection and other transaction costs.

In order to facilitate the securitizations, the Company has pledged certain
additional FMBs, cash and cash equivalents and temporary investments as
collateral for the benefit of the credit enhancer or liquidity provider. At
March 31, 2000, the total carrying amount of such additional FMBs, cash and cash
equivalents and temporary investments pledged as collateral was $53,761,000,
$1,606,225 and $33,200,000 respectively.

The Company's cost of funds relating to its secured borrowings under the Merrill
Lynch P-FLOATS/RITES program (calculated as interest expense as a percentage of
the weighted average amount of the secured borrowings) was approximately 4.5%,
annualized, for the three months ended March 31, 2000.




                                       14
<PAGE>

NOTE 4 - OTHER BOND RELATED INVESTMENTS

The Company's other bond related investments consist of investments in RITES
(see Note 3). The following table provides certain information with respect to
each of the RITES.

<TABLE>
<CAPTION>
                                                       Face
                                                       Amount     Amortized       Fair
                                                      of RITES   Cost Basis at   Value at
FMB                           Date     Face Amount    Interest      March         March
Description/Location       Purchased     of FMB      Purchased     31, 2000      31, 2000
--------------------       ---------   -----------   ---------   -------------   --------
<S>                        <C>         <C>           <C>         <C>             <C>
OWNED BY THE COMPANY (NOT INCLUDING ITS CONSOLIDATED SUBSIDIARIES)

RITES-Avalon Court/
  Oakley, CA               6/17/99     $ 8,240,000    $ 5,000      $197,800      $200,000
RITES-Meadowview Park/
  Santa Rosa, CA           6/17/99       6,250,000      5,000       160,621       160,000
RITES-The Courtyards/
  Santa Rosa, CA           6/17/99       7,940,000      5,000       199,552       200,000
                                        ----------     ------       -------       -------
                                       $22,430,000    $15,000      $557,973      $560,000
                                        ==========     ======       =======       =======
</TABLE>

NOTE 5 - DEFERRED COSTS

The components of deferred costs are as follows:

<TABLE>
<CAPTION>
                                                                 March 31,   December 31,
                                                                   2000          1999
                                                                -----------  ------------
<S>                                                             <C>          <C>
Deferred bond selection costs                                   $10,110,353   $ 9,904,683
Deferred costs relating to the Private Label Tender
  Option Program                                                  3,652,631     3,614,627
Deferred costs relating to the issuance of preferred
  shares of subsidiary                                            3,609,158     3,605,331
Other                                                               417,594       172,039
                                                                 ----------    ----------
                                                                 17,789,736    17,296,680

Less:  Accumulated amortization                                  (3,354,685)   (3,074,229)
                                                                 ----------    ----------

                                                                $14,435,051   $14,222,451
                                                                 ==========    ==========
</TABLE>

NOTE 6 - MINORITY INTEREST IN SUBSIDIARY

On May 21, 1998, the Company closed on its Private Label Tender Option
Program ("TOP") in order to raise additional capital to acquire additional
FMBs. As of March 31, 1999, the maximum amount of capital which could be
raised under the TOP ($150,000,000) had been raised. In April 1999 and March
2000, the Company successfully negotiated increases in its TOP to
$200,000,000 and $300,000,000, respectively. As of March 31, 2000, the Company
has contributed 40 issues of FMBs in the aggregate principal amount of
approximately $394,457,000 to Charter Mac Origination Trust I (the
"Origination Trust"), a wholly-owned, indirect subsidiary of the Company,
which has contributed 32 of those FMBs, with an aggregate principal amount of
approximately $304,005,000, to Charter Mac Owner Trust I (the "Owner Trust")
which is controlled by the Company. The Owner Trust has issued two equity
certificates: (i) a Senior Certificate, with an outstanding face amount of

                                       15
<PAGE>

$177,000,000 at March 31, 2000, which has been deposited into another Delaware
business trust (the "Certificate Trust") which issued and sold Floater
Certificates representing proportional interests in the Senior Certificate to
new investors and (ii) a Residual Certificate representing the remaining
beneficial ownership interest in the Owner Trust, which has been issued to the
Origination Trust. The FMBs remaining in the Origination Trust (aggregate
principal amount of approximately $90,452,000) are a collateral pool for the
Owner Trust's obligations under the Senior Certificate. In addition, the Owner
Trust obtained a municipal bond insurance policy from MBIA to credit enhance
Certificate distributions for the benefit of the holders of the Floater
Certificates and has also arranged for a liquidity facility, issued by a
consortium of highly rated European banks, with respect to the Floater
Certificates. The Company owns no beneficial interest in, and does not control,
the Certificate Trust.

The effect of the TOP structure is that a portion of the interest received by
the Owner Trust on the FMBs it holds is distributed through the Senior
Certificate to the holders of the Floater Certificates in an amount determined
each week by the remarketing agent, Goldman Sachs & Co., at the distribution
amount that is required to enable the remarketing agent to sell the Floater
Certificates at par on any weekly determination date, with the residual interest
remitted to the Origination Trust via the Residual Certificate.

For financial accounting and reporting purposes, the Owner Trust, which is
controlled by the Company, is consolidated. The equity in the Owner Trust
represented by the Senior Certificate is classified as "minority interest in
subsidiary (subject to mandatory redemption)" in the accompanying consolidated
balance sheets. Income earned by the Owner Trust is allocated to the minority
interest in an amount equal to the distributions through the Senior Certificate
to the holders of the Floater Certificates. Such allocation of income is
classified as "minority interest in income of subsidiary" in the accompanying
consolidated statements of income.

The Company's cost of funds relating to the TOP (calculated as income allocated
to the minority interest plus recurring fees as a percentage of the weighted
average amount of the outstanding Senior Certificate) was approximately 4.8% and
3.9% for the three months ended March 31, 2000 and 1999, respectively.

NOTE 7 - PREFERRED SHARES OF SUBSIDIARY

On June 29, 1999 a subsidiary of the Company completed a $90 million tax-exempt
preferred equity offering (the "Preferred Offering") comprising 45 shares
("Series A Cumulative Preferred Shares") which were purchased by Merrill Lynch,
Legg Mason Wood Walker, Inc. and McDonald Investments, Inc. (the "Initial
Purchasers"). The Initial Purchasers then sold the Series A Cumulative Preferred
Shares to qualified institutional investors.

In connection with this transaction, the Company caused 100% of the ownership of
the Origination Trust to be transferred to Charter Mac Equity Issuer Trust (the
"Issuer"), a newly formed Delaware business trust and an indirectly owned
subsidiary in which the Company owns 100% of the common equity. The Issuer then
issued the Series A Cumulative Preferred Shares. As a result of such
transaction, the Issuer became the direct and indirect owner of the entire
outstanding issue of 40 FMBs held by the Origination Trust and Owner Trust, its
two directly and indirectly owned subsidiaries (see Note 6). In addition to
contributing the ownership of the Origination Trust, the Company also
contributed eight FMBs to the Issuer. As of the closing, the aggregate par value
of FMBs held directly or indirectly by the Issuer or its subsidiaries was
$463,699,028. Net proceeds of approximately $86,391,000 from the Preferred
Offering have been used to invest in or acquire additional tax-exempt assets for
the Issuer.


                                       16
<PAGE>

The Series A Cumulative Preferred Shares have an annual preferred dividend rate
of 6 5/8% through June 30, 2009, payable quarterly in arrears on January 31,
April 30, July 31 and October 31 of each year, commencing October 31, 1999 and
payable upon declaration thereof by the Issuer's Board of Trustees, but only to
the extent of the Issuer's tax-exempt income (net of expenses) for the
particular quarter ("Quarterly Net Income"). The Series A Cumulative Preferred
Shares are subject to mandatory tender by the holders thereof for remarketing
and purchase on June 30, 2009 and each remarketing date thereafter at a price
equal to the $2,000,000 per share plus, to the extent of the Issuer's Quarterly
Net Income, an amount equal to all distributions accrued but unpaid on the
Series A Cumulative Preferred Shares. Since inception, all quarterly
distributions have been declared at an annualized rate of 6 5/8% and all
distributions due have been paid.

Holders of the Series A Cumulative Preferred Shares may elect to retain their
shares upon a remarketing, with a distribution rate to be determined immediately
prior to the remarketing date by the remarketing agent. Each holder of the
Series A Cumulative Preferred Shares will be required to tender its shares to
the Issuer for mandatory repurchase on June 30, 2049, unless the Issuer decides
to remarket the shares on such date. The Issuer may not redeem the Series A
Cumulative Preferred Shares before June 30, 2009. After that date, all or a
portion of the shares may be redeemed, subject to certain conditions. The Series
A Cumulative Preferred Shares are not convertible into common shares of the
Issuer or Shares of the Company.

The Series A Cumulative Preferred Shares rank, with respect to payment of
distributions and amounts upon liquidation, dissolution or winding-up of the
Issuer, senior to all classes or series of common shares of the Issuer and
therefore, of the Company.

For financial accounting and reporting purposes, the Series A Cumulative
Preferred Shares are classified as "Preferred shares of subsidiary (subject to
mandatory repurchase)" in the accompanying consolidated balance sheets. Net
income earned by the Issuer and its two subsidiaries is allocated to the holders
of the Series A Cumulative Preferred Shares in an amount equal to the
distributions to such holders. Such allocation of income is classified as
"Income allocated to preferred shareholders of subsidiary" in the accompanying
consolidated statements of income.

NOTE 8 - CAPITAL SHARES

Through calendar year 1999, each independent trustee was entitled to receive
annual compensation for serving as a trustee in the aggregate amount of $15,000
payable in cash (maximum of $5,000 per year) and/or Shares valued based on the
fair market value at the date of issuance. Beginning in calendar year 2000, the
annual compensation for the two original independent trustees was increased from
$15,000 to $17,500 and the maximum payable in cash was increased from $5,000 to
$7,500. In 2000, a third independent trustee was appointed and such trustee will
receive annual compensation in the aggregate amount of $30,000 payable in cash
(maximum of $20,000 per year) and or Shares. As of March 31, 2000 and December
31, 1999, 3,552 and 1,910 Shares, respectively, having an aggregate value at the
date of issuance of $45,000 and $25,000, respectively, have been issued to the
independent trustee as compensation for their services.

Effective May 3, 2000, the Company implemented a dividend reinvestment and
share repurchase plan (the "Plan"). Under the Plan, common shareholders may
elect to have their distributions from the Company automatically reinvested
in additional Shares at a purchase price equal to the average of the high and
low market price from the previous day's trading. If a common shareholder

                                       17
<PAGE>

participates in the Plan, such shareholder may also purchase additional
Shares through quarterly voluntary cash payments with a minimum contribution
of $500. There are no commissions for Shares purchased under the Plan.
Participation in the Plan is voluntary and a common shareholder may join or
withdraw at any time. The opportunity for participation in the Plan will
begin with the distributions paid in August 2000. In order to participate in
the "voluntary share purchase" part of the Plan, a shareholder must
participate in the "dividend reinvestment" part of the Plan.

NOTE 9 - RELATED PARTY TRANSACTIONS

Pursuant to the Management Agreement, the Manager receives (inclusive of fees
paid directly to the Manager by subsidiaries of the Company) (i) bond selection
fees equal to 2% of the principal amount of each FMB or other instrument
acquired or invested in by the Company; (ii) special distributions equal to
 .375% per annum of the total invested assets of the Company; (iii) loan
servicing fees equal to .25% per annum of the outstanding principal amount of
FMBs held by the Company (not including its consolidated subsidiaries) and .15%
per annum of the outstanding principal amount of FMBs held by the consolidated
subsidiaries of the Company; (iv) management fees equal to .10% per annum of the
total invested assets of the consolidated subsidiaries of the Company; (v) a
liquidation fee based on the gross sales price of assets sold by the Company in
connection with a liquidation of the Company's assets; and (vi) reimbursement of
certain administrative costs incurred by the Manager and its affiliates on
behalf of the Company. Fees payable to the Manager which are based on FMBs or
assets of the Company include such FMBs or assets which are either held directly
by the Company or held by other entities to whom the Company has transferred
such FMBs or assets to facilitate financing. In addition, the Manager receives
bond placement fees from the borrower in an amount equal to 1% to 1.5% of the
principal amount of each FMB or other instrument acquired or invested in by the
Company, and affiliates of the Manager are part of a joint venture which has a
development services agreement with the obligors of five FMBs.

The costs, expenses and the special distributions incurred to the Manager and
its affiliates for the three months ended March 31, 2000 and 1999 were as
follows:

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                              March 31,
                                                       ---------------------
                                                          2000        1999
                                                       ---------------------
<S>                                                    <C>          <C>
Bond selection fees                                    $  112,000   $128,000
Expense reimbursement                                     133,085     60,466
Loan servicing fees                                       241,058    172,649
Management fees                                           155,446    115,100
Special distribution                                      594,756    431,623
                                                        ---------    -------
                                                       $1,236,345   $907,838
                                                        =========    =======
</TABLE>

GENERAL
As of March 31, 2000, the obligors of the River Run, Ocean Air, Phoenix, Stone
Creek, Cedarbrook, Marsh Landings, Gulfstream, Bedford Square, Northpointe
Village, Falcon Creek, Jubilee Courtyards, Silvercrest, Carrington Pointe,
Madalyn Landing, Forest Hills, Lake Jackson, Mountain Ranch, Hamilton Garden,
Del Monte Pines, Greenbriar, Sycamore Woods, Avalon Court, The Courtyards,
Meadowview Park, Casa Ramon, Lake Park, Lewis Place, Lennox Park, Chapel Ridge
of Little Rock, Franciscan Riviera, Standiford, Douglas Pointe, Chapel Ridge of
Texarkana, Tallwood, Barnaby Manor, Fort Chaplin and Summer Lake FMBs are local
partnerships in which investment partnerships, whose general partners are
affiliates of the Manager,


                                       18
<PAGE>

own a controlling partnership interest. With respect to 13 of the above FMBs,
the Company owns the RITES, ten of which are accounted for as FMBs and secured
borrowings (see Notes 2 and 3) and three of which are accounted for as other
bond related investments (see Note 5).

As of March 31, 2000, the original owners of the Underlying Properties and
obligors of the Cedar Creek, Highpointe, Pelican Cove and Loveridge FMBs had
been replaced with affiliates of the Manager who have not made equity
investments. These entities have assumed the day-to-day responsibilities and
obligations of the Underlying Properties. Buyers are being sought who would make
equity investments in the Underlying Properties and assume the nonrecourse
obligations for the FMB or otherwise buy the property and payoff all or most of
the FMB obligation.

NOTE 10 - EARNINGS PER SHARE

Basic net income per Share in the amount of $.29 and $.27 for the three months
ended March 31, 2000 and 1999, respectively, equals net income for the periods
($6,570,389 and $6,005,522, respectively), less the special allocations to the
Manager ($654,512 and $487,362, respectively), divided by the weighted average
number of Shares outstanding for the periods (20,581,805 and 20,580,086,
respectively).

As the Company had no contingently-issuable Shares or potentially dilutive
securities outstanding at March 31, 2000 and 1999, diluted net income per share
is the same as basic net income per share.

NOTE 11 - COMMITMENTS AND CONTINGENCIES

On November 2, 1999, the Company and American Tax Exempt Bond Trust ("ATEBT"),
whose manager is an affiliate of the Manager of the Company, entered into a
merger agreement pursuant to which ATEBT would merge with and into CM Holding
Trust, a wholly-owned subsidiary of the Company. Following the merger, CM
Holding Trust would continue to be a wholly-owned subsidiary of the Company.

ATEBT is a Delaware business trust which owns four tax-exempt first mortgage
bonds and had total assets of approximately $26,826,000 and net assets of
approximately $25,485,000 at March 31, 2000. The four tax-exempt first mortgage
bonds have an aggregate outstanding loan balance of $23,775,000 at March 31,
2000, have interest rates of 9% and have underlying properties located in four
different states.

Under the terms of the merger agreement, each share of beneficial ownership in
ATEBT outstanding on the effective date of the proposed merger (1,463,521 shares
at March 31, 2000) will be converted into the right to receive 1.43112 Shares of
the Company. In addition, the manager of ATEBT (which owns a 1% interest in
ATEBT not currently represented by ATEBT shares) will receive 21,156 shares of
the Company. Following the merger, current ATEBT shareholders will own
approximately 9.3% of the outstanding Shares of the Company.

Consummation of the merger is subject to several conditions, including approval
by ATEBT shareholders. In addition, either entity has the ability to opt out of
the transaction if the 30-day average trading price of the Company's Shares
preceding the closing of the transaction is outside of the Company's historical
trading range of $11.13 to $14.50. Subject to ATEBT shareholder approval, the
Company and ATEBT expect that this transaction will close during the third
quarter of 2000.


                                       19
<PAGE>

NOTE 12 - SUBSEQUENT EVENTS

On April 4, 2000, the Owner Trust increased the outstanding face amount of
the Senior Certificate (see Note 6) from $177,000,000 to $225,000,000 and
received net proceeds of $47,855,000.

During the period April 1, 2000 through May 12, 2000 the Company acquired
eight FMBs for an aggregate purchase price of $45,960,000, not including bond
selection fees and expenses of approximately $919,000. One of the FMBs is a
taxable FMB acquired in connection with the purchase of a tax-exempt FMB. The
taxable FMB is secured by the same Underlying Property which secures the
associated tax-exempt FMB. Further information regarding the FMBs is as
follows:

<TABLE>
<CAPTION>
                                      Stated                      Face       No. of
                         Closing     Interest    Call Date/      Amount      Rental
Property/Location          Date        Rate     Maturity Date    of FMB      Units
-----------------        -------     --------   -------------    ------      -----
<S>                      <C>         <C>        <C>           <C>            <C>
TAX-EXEMPT FIRST MORTGAGE BONDS

OWNED BY CHARTER MAC EQUITY ISSUER TRUST

Princess Anne House/      4/7/00        7.5%    4/1/25         $7,500,000     186
  Virginia Beach, VA                            4/1/42

Walnut Park Plaza/        4/11/00       7.5%    4/1/10          5,500,000     224
  Philadelphia, PA                              10/1/18

Columbia at Bells Ferry/  4/19/00       7.4%    4/1/17         13,000,000     272
  Cherokee County, GA                           4/1/42

Oaks at Hampton/          4/27/00       7.2%    3/1/27          9,535,000     250
  Dallas, TX                                    3/1/40

South Congress/           5/3/00        7.5%    9/1/16          6,300,000     172
  Austin, TX                                    9/1/36

Walnut Creek/             5/3/00        7.5%    9/1/16          3,240,000      98
  Austin, TX                                    9/1/36

Walnut Creek/             5/3/00        7.5%    9/1/16            360,000      98
  Austin, TX                                    5/1/14

                                                               ----------
                                                              $45,435,000
                                                               ----------

TAXABLE FIRST MORTGAGE BONDS

OWNED BY THE COMPANY (NOT INCLUDING ITS CONSOLIDATED SUBSIDIARIES)

Oaks at Hampton/          4/27/00       9.0%    3/1/27        $   525,000     250
  Dallas, TX                                    5/1/10         ----------
</TABLE>


                                       20
<PAGE>

                  CHARTER MUNICIPAL MORTGAGE ACCEPTANCE COMPANY
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)

On May 10, 2000, the Company completed a private placement (the "Convertible
Preferred Offering") of $27,496,980 convertible preferred shares (the
"Convertible Preferred Shares") to three financial institutions (1,946,000
Convertible Preferred Shares priced at $14.13 per share). The Convertible
Preferred Offering enables financial institutions to receive certain regulatory
benefits in connection with their investment.

The Company has developed a proprietary method for specially allocating these
regulatory benefits to specific financial institutions that invest in the
Convertible Preferred Shares. In addition to the preferred allocation of
regulatory benefits, the preferred investors will receive the same economic
benefits as common shareholders of the Company. The preferred investors, at
their option, have the ability to convert their Convertible Preferred Shares
into Shares of the Company's common stock at a predetermined conversion price
of $15.33 per Share which represents the Company's book value per Share as of
December 31, 1999. Upon conversion, the preferred investors will no longer be
entitled to retain their preferential regulatory benefits.

                                       21
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

LIQUIDITY AND CAPITAL RESOURCES

GENERAL

Charter Municipal Mortgage Acceptance Company (the "Company") is a Delaware
business trust which is engaged in the acquisition and ownership (either
directly or indirectly) of tax-exempt participating and non-participating
first mortgage bonds ("FMBs") issued by various state or local governments or
other agencies or authorities and secured by participating and
non-participating mortgage loans on the underlying properties ("Underlying
Properties").FMBs that contain provisions for participating interest are
referred to as "participating"; FMBs lacking this provision are
"non-participating". As of March 31, 2000, the Company owned a portfolio of
70 FMBs and had net assets of approximately $314,734,385.

In order to generate increased tax exempt income and, as a result, enhance the
value of the Company's Shares, the Company intends to invest in or acquire
additional tax-exempt bonds secured by multifamily properties. The Company
believes that it can earn above market rates of interest on its bond
acquisitions by focusing its efforts primarily on affordable housing. The
Manager estimates that nearly 50% of all new multifamily development contains an
affordable component which produces tax credits pursuant to Section 42 of the
Internal Revenue Code. The Company has designed a Direct Purchase Program
specifically designed to appeal to developers of such properties. In general,
these properties are smaller than traditional multifamily housing properties,
averaging 150 units. The traditional method of financing tax-exempt properties
requires the involvement of credit enhancement, rating agencies and investment
bankers. Therefore, the up-front cost of such financing is generally much higher
than traditional multifamily financing. Through its Direct Purchase Program, the
Company will invest in or acquire tax-exempt bonds without the cost associated
with credit enhancement, rating agencies and investment bankers. The Company
believes that the up-front cost savings to the developer will translate into a
higher than market interest rate on the bonds acquired by the Company.

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. The
Manager is a single purpose affiliate of Related which is controlled by the same
individuals and entities which own Related. The Manager benefits from its
affiliation with Related because the Manager is able to utilize Related's
resources and relationships in the multifamily affordable housing finance
industry to source potential borrowers of first mortgage bonds the Company could
invest in or acquire. Related and its predecessor companies have specialized in
offering debt and equity products to mid-market multifamily owners and
developers for over 25 years. Related has provided debt and equity financing to
properties valued at over $9.0 billion. According to the 1999 National
Multihousing Council survey, Related is the third largest owner of apartments in
the United States.

The Company does not operate as a mortgage REIT, which generally utilize high
levels of leverage and acquire subordinated interests in commercial and/or
residential mortgage-backed


                                       22
<PAGE>

securities. Rather, the Company utilizes low levels of leverage and generally
invests in or acquires long-term, fixed-rate, tax-exempt FMBs. As a result, the
Company did not experience the ill effects associated with the volatile interest
rate environment during 1999 and 1998. Pursuant to its Trust Agreement, the
Company is only able to incur leverage or other financing up to 50% of the
Company's Total Market Value (as defined in the Trust Agreement) as of the date
incurred. Mortgage REITs typically incur leverage at ratios ranging from
between 3:1 to 10:1.

In general, the FMBs that the Company either invests in or acquires call for
ten-year restrictions from prepayments, eliminating the Company's susceptibility
to significant levels of repayment risk as a result of interest rate reductions.
Consistent with the foregoing, the Company focuses on providing investors with a
stable level of distributions, even through unstable markets.

The Company requires long-term financing in order to invest in and hold its
portfolio of FMBs. To date, this long-term liquidity has come from the
Company's Private Label Tender Option Program, a preferred equity offering by
a subsidiary, the issuance of convertible preferred shares and secured
borrowings under securitization transactions. These financing sources have
expected lives equal to the expected lives of the FMBs used to collateralize
them although, in accordance with prudent business practice and industry
standards, the surety and liquidity commitment relating to the Private Label
Tender Option Program have shorter terms.  The surety commitment has three
years remaining on its five year term and the liquidity commitment is a one
year renewable commitment.  The Company expects to renew or replace such
commitments upon expiration of their terms.  On a short-term basis, the
Company requires funds to pay its operating expenses and to make
distributions to its shareholders. The primary sources of the Company's
short-term liquidity are the interest income from the FMBs and promissory
notes in excess of the related financing costs, and interest income from cash
and temporary investments. The Company believes that its long-term financing
sources, explained in more detail below, and its short-term liquidity are
adequate to meet its current and projected long-term and short-term liquidity
requirements.

During the three months ended March 31, 2000 cash and cash equivalents of the
Company and its consolidated subsidiaries increased approximately $6,655,000.
The increase was primarily due to cash provided by operating activities
($8,442,000) and the net sale of temporary investments ($12,341,000) which
exceeded the purchase of a first mortgage bond ($5,600,000), an increase in
deferred bond selection costs ($206,000), an increase in other deferred costs
($174,000), distributions paid to the Manager and shareholders of the Company
and to preferred shareholders of subsidiary ($7,529,000) and an increase in
restricted cash and cash equivalents ($578,000). Included in the adjustments to
reconcile the net income to cash provided by operating activities is net
amortization of $356,000.

The Company, as an alternative to foreclosure in the event of a default, has
entered into forbearance agreements on several FMBs and may be required to
extend these agreements or enter into new agreements in the future. Such
agreements may adversely impact liquidity; however, interest payments from FMBs
and RITES are anticipated to provide sufficient liquidity to fund the Company's
operating expenditures, debt service and distributions in future years.

The determination as to whether it is in the best interest of the Company to
enter into forbearance agreements on the FMBs or, alternatively, to pursue its
remedies under the loan documents, including foreclosure, is based upon several
factors including, but not limited to, Underlying Property performance, owner
cooperation and projected legal costs irrespective of whether the obligor has an
affiliation with the Manager or not.


                                       23
<PAGE>

The difference between the stated interest rates and the rates paid by FMBs is
not accrued as interest income for financial reporting purposes. The accrual of
interest at the stated interest rate will resume once an Underlying Property's
ability to pay the stated rate has been adequately demonstrated. Interest income
of approximately $684,000 and $724,000 was not recognized for the three months
ended March 31, 2000 and 1999, respectively.

In April and May 2000, distributions of $1,490,625 ($33,125 per preferred share)
and $5,454,391 ($.265 per Share), respectively, which were declared in March
2000, were paid to the preferred shareholders of subsidiary and shareholders of
the Company, respectively, from cash flow from operations for the quarter ended
March 31, 2000.

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.

CAPITAL RAISING TRANSACTIONS

(i) PRIVATE LABEL TENDER OPTION PROGRAM

On May 21, 1998, the Company closed on its Private Label Tender Option
Program ("TOP") in order to raise additional capital to acquire additional
FMBs. As of March 31, 1999, the maximum amount of capital which could be
raised under the TOP ($150,000,000) had been raised. In April 1999 and March
2000, the Company successfully negotiated increases in its TOP to $200,000,000
and $300,000,000, respectively. As of March 31, 2000, the Company has
contributed 40 issues of FMBs in the aggregate principal amount of
approximately $394,457,000 to Charter Mac Origination Trust I (the
"Origination Trust"), a wholly-owned, indirect subsidiary of the Company,
which has contributed 32 of those FMBs, with an aggregate principal amount of
approximately $304,005,000, to Charter Mac Owner Trust I (the "Owner Trust")
which is controlled by the Company. The Owner Trust has issued two equity
certificates: (i) a Senior Certificate, with an outstanding face amount of
$177,000,000 at March 31, 2000, which has been deposited into another
Delaware business trust (the "Certificate Trust") which issued and sold
Floater Certificates representing proportional interests in the Senior
Certificate to new investors and (ii) a Residual Certificate representing the
remaining beneficial ownership interest in the Owner Trust, which has been
issued to the Origination Trust. The FMBs remaining in the Origination Trust
(aggregate principal amount of approximately $90,452,000) are a collateral
pool for the Owner Trust's obligations under the Senior Certificate. In
addition, the Owner Trust obtained a municipal bond insurance policy from
MBIA to credit enhance Certificate distributions for the benefit of the
holders of the Floater Certificates and has also arranged for a liquidity
facility, issued by a consortium of highly rated European banks, with respect
to the Floater Certificates. The Company owns no beneficial interest in, and
does not control, the Certificate Trust.

The effect of the TOP structure is that a portion of the interest received by
the Owner Trust on the FMBs it holds is distributed through the Senior
Certificate to the holders of the Floater Certificates in an amount determined
each week by the remarketing agent, Goldman Sachs & Co., at the distribution
amount that is required to enable the remarketing agent to sell the Floater
Certificates at par on any weekly determination date, with the residual interest
remitted to the Origination Trust via the Residual Certificate.


                                       24
<PAGE>

The Company's cost of funds relating to the TOP (calculated as income allocated
to the minority interest plus recurring fees as a percentage of the weighted
average amount of the outstanding Senior Certificate) was approximately 4.8% and
3.9% for the three months ended March 31, 2000 and 1999.

(ii) PREFERRED EQUITY ISSUANCE BY SUBSIDIARY

On June 29, 1999 a subsidiary of the Company completed a $90 million tax-exempt
preferred equity offering (the "Preferred Offering") comprising 45 shares
("Series A Cumulative Preferred Shares") which were purchased by Merrill Lynch,
Legg Mason Wood Walker, Inc. and McDonald Investments, Inc. (the "Initial
Purchasers"). The Initial Purchasers then sold the Series A Cumulative Preferred
Shares to qualified institutional investors.

In connection with this transaction, the Company caused 100% of the ownership of
the Origination Trust to be transferred to Charter Mac Equity Issuer Trust (the
"Issuer"), a newly formed Delaware business trust and an indirectly owned
subsidiary in which the Company owns 100% of the common equity. The Issuer then
issued the Series A Cumulative Preferred Shares. As a result of such
transaction, the Issuer became the direct and indirect owner of the entire
outstanding issue of 40 FMBs held by the Origination Trust and Owner Trust, its
two directly and indirectly owned subsidiaries (see (i) Private Label Tender
Option Program, above). In addition to contributing the ownership of the
Origination Trust, the Company also contributed eight FMBs to the Issuer. As of
the closing, the aggregate par value of FMBs held directly or indirectly by the
Issuer or its subsidiaries was $463,699,028. Net proceeds of approximately
$86,391,000 from the Preferred Offering have been used to invest in or acquire
additional tax-exempt assets for the Issuer.

The Series A Cumulative Preferred Shares have an annual preferred dividend rate
of 6 5/8% through June 30, 2009, payable quarterly in arrears on January 31,
April 30, July 31 and October 31 of each year, commencing October 31, 1999 and
payable upon declaration thereof by the Issuer's Board of Trustees, but only to
the extent of the Issuer's tax-exempt income (net of expenses) for the
particular quarter ("Quarterly Net Income"). The Series A Cumulative Preferred
Shares are subject to mandatory tender by the holders thereof for remarketing
and purchase on June 30, 2009 and each remarketing date thereafter at a price
equal to the $2,000,000 per share plus, to the extent of the Issuer's Quarterly
Net Income, an amount equal to all distributions accrued but unpaid on the
Series A Cumulative Preferred Shares. Since inception, all quarterly
distributions have been declared at an annualized rate of 6 5/8% and all
distributions due have been paid.

Holders of the Series A Cumulative Preferred Shares may elect to retain their
shares upon a remarketing, with a distribution rate to be determined immediately
prior to the remarketing date by the remarketing agent. Each holder of the
Series A Cumulative Preferred Shares will be required to tender its shares to
the Issuer for mandatory repurchase on June 30, 2049, unless the Issuer decides
to remarket the shares on such date. The Issuer may not redeem the Series A
Cumulative Preferred Shares before June 30, 2009. After that date, all or a
portion of the shares may be redeemed, subject to certain conditions. The Series
A Cumulative Preferred Shares are not convertible into common shares of the
Issuer or Shares of the Company.


                                       25
<PAGE>

The Series A Cumulative Preferred Shares rank, with respect to payment of
distributions and amounts upon liquidation, dissolution or winding-up of the
Issuer, senior to all classes or series of common shares of the Issuer and
therefore, of the Company.

(iii) CONVERTIBLE PREFERRED SHARES

On May 10, 2000, the Company completed a private placement ( the "Convertible
Preferred Offering") of $27,496,980 convertible preferred shares (the
"Convertible Preferred Shares") to three financial institutions (1,946,000
Convertible Preferred Shares priced at $14.13 per share). The Convertible
Preferred Offering enables financial institutions to receive certain regulatory
benefits in connection with their investment.

The Company has developed a proprietary method for specially allocating these
regulatory benefits to specific financial institutions that invest in the
Convertible Preferred Shares. In addition to the preferred allocation of
regulatory benefits, the preferred investors will receive the same economic
benefits as common shareholders of the Company. The preferred investors, at
their option, have the ability to convert their Convertible Preferred Shares
into Shares of the Company's common stock at a predetermined conversion price
of $15.33 per Share which represents the Company's book value per Share as of
December 31, 1999. Upon conversion, the preferred investors will no longer be
entitled to retain their preferential regulatory benefits.

(iv) SECURITIZATION TRANSACTIONS

To raise additional capital to acquire additional FMBs, the Company has
securitized certain FMBs through the Merrill Lynch Pierce Fenner & Smith
Incorporated ("Merrill Lynch") P-FLOATS/RITES program. Under this program, the
Company transfers certain FMBs to Merrill Lynch. Merrill Lynch then deposits
each FMB into an individual special purpose trust created to hold such asset,
together with a Credit Enhancement Guarantee ("Guarantee"). Two types of
securities are then issued by each trust, evidencing ownership in the FMBs and
the Guarantee: (1) Puttable Floating Option Tax-Exempt Receipts ("P-FLOATS"), a
short-term senior security which bears interest at a floating rate that is reset
weekly by the Remarketing Agent, Merrill Lynch, to result in the sale of the
P-FLOAT security at par (up to 99% of the underlying face amount of the FMB);
and (2) Residual Interest Tax Exempt Securities ("RITES), a subordinate security
which receives the residual interest payment after payment of P-FLOAT interest
and ongoing transaction fees. The P-FLOATS are sold to qualified third party,
tax-exempt investors and the RITES are sold back to the Company. The Company has
the right, with 14 days notice to the trustee, to purchase the outstanding
P-FLOATS and withdraw the underlying FMBs from the trust. When the FMBs are
deposited into the P-FLOAT Trust, the Company receives the proceeds from the
sale of the P-FLOATS less certain transaction costs. In certain other cases,
Merrill Lynch may directly buy the FMBs from local issuers, deposit them in the
trust, sell the P-FLOAT security to qualified investors and then the RITES to
the Company.

During the period May 1999 through December 1999, the Company transferred ten
FMBs with an aggregate face amount of $82,219,500 to Merrill Lynch through the
Merrill Lynch P-FLOATS/RITES program and received proceeds of $80,769,616.


                                       26
<PAGE>

During June 1999, Merrill Lynch purchased three FMBs with an aggregate face
amount of $22,430,000. The FMBs were placed into a trust by Merrill Lynch
whereby P-FLOATS and RITES were sold. The Company purchased the related RITES
interests with an aggregate face amount of $15,000 for an aggregate purchase
price of $579,118 which includes bond selection and other transaction costs.

In order to facilitate the securitizations, the Company has pledged certain
additional FMBs, cash and cash equivalents and temporary investments as
collateral for the benefit of the credit enhancer or liquidity provider. At
March 31, 2000, the total carrying amount of such additional FMBs, cash and cash
equivalents and temporary investments pledged as collateral was $53,761,000,
$1,606,225 and $33,200,000, respectively.

The Company's cost of funds relating to its secured borrowings under the Merrill
Lynch P-FLOATS/RITES program (calculated as interest expense as a percentage of
the weighted average amount of the secured borrowings) was approximately 4.5%,
annualized, for the three months ended March 31, 2000.

ACQUISITIONS

During the period January 1, 2000 through May 12, 2000 the Company acquired nine
FMBs for an aggregate purchase price of approximately $51,560,000, not including
bond selection fees and expenses of approximately $1,031,000. The purchases were
financed by the TOP and securitization transactions. One of the FMBs is a
taxable FMB acquired in connection with the purchase of a tax-exempt FMB.

PROPOSED MERGER

On November 2, 1999, the Company and American Tax Exempt Bond Trust ("ATEBT"),
whose manager is an affiliate of the Manager of the Company, entered into a
merger agreement pursuant to which ATEBT would merge with and into CM Holding
Trust, a wholly-owned subsidiary of the Company. Following the merger, CM
Holding Trust would continue to be a wholly-owned subsidiary of the Company.

ATEBT is a Delaware business trust which owns four tax-exempt first mortgage
bonds and had total assets of approximately $26,826,000 and net assets of
approximately $25,485,000 at March 31, 2000. The four tax-exempt first mortgage
bonds have an aggregate outstanding loan balance of $23,775,000 at March 31,
2000, have interest rates of 9% and have underlying properties located in four
different states.

Under the terms of the merger agreement, each share of beneficial ownership in
ATEBT outstanding on the effective date of the proposed merger (1,463,521 shares
at March 31, 2000) will be converted into the right to receive 1.43112 Shares of
the Company. In addition, the manager of ATEBT (which owns a 1% interest in
ATEBT not currently represented by ATEBT shares) will receive 21,156 shares of
the Company. Following the merger, current ATEBT shareholders will own
approximately 9.3% of the outstanding Shares of the Company.


                                       27
<PAGE>

Consummation of the merger is subject to several conditions, including approval
by ATEBT shareholders. In addition, either entity has the ability to opt out of
the transaction if the 30-day average trading price of the Company's Shares
preceding the closing of the transaction is outside of the Company's historical
trading range of $11.13 to $14.50. Subject to ATEBT shareholder approval, the
Company and ATEBT expect that this transaction will close during the third
quarter of 2000.

RESULTS OF OPERATIONS

For the three months ended March 31, 2000 as compared to 1999, total revenues,
total expenses and net income increased due to the net result of the acquisition
of 24 FMBs during 2000 and 1999, and the repayment of two of three FMBs repaid
during 1999. The Company's results of operations for the three months ended
March 31, 2000 and 1999 consisted primarily of the results of the Company's
investment in 70 and 49 FMBs, respectively.

Interest income from FMBs increased approximately $3,284,000 for the three
months ended March 31, 2000 as compared to 1999. An increase of $2,844,000
was due to the acquisition of 24 FMBs during 2000 and 1999 (the "2000 and
1999 Acquisitions"), and a decrease of $240,000 was due to the repayment of
two of the three FMBs repaid during 1999 (the "1999 Repayments"). Excluding
the above increase and decrease, interest income from FMBs increased
approximately 9% for the three months ended March 31, 2000 as compared to
1999. The increase was primarily due to the receipt of participating interest
from the Sunset Creek, Sunset Village, Sunset Downs and Sunset Terrace FMBs
partially offset by a decrease in interest income from the Cypress Run FMB.

Interest income from other bond related investments in the amount of
approximately $136,000 was recorded for the three months ended March 31, 2000
relating to three RITES purchased in June 1999.

Interest income from temporary investments increased approximately $365,000 for
the three months ended March 31, 2000 as compared to 1999 primarily due to cash
pledged as collateral in 2000 relating to securitization transactions.

Interest income from promissory notes increased approximately $77,000 for the
three months ended March 31, 2000 as compared to 1999 primarily due to a loan
made to the obligor of the Country Lake FMB in November 1999.

Interest expense increased approximately $906,000 for the three months ended
March 31, 2000 as compared to 1999 primarily due to secured borrowings during
the period May 1999 through December 1999.

Recurring fees relating to the Private Label Tender Option program increased
approximately $107,000 for the three months ended March 31, 2000 as compared to
1999 primarily due to a higher outstanding balance of the TOP in 2000.


                                       28
<PAGE>

Loan servicing and asset management fees increased approximately $109,000 for
the three months ended March 31, 2000 as compared to 1999 primarily due to an
increase of $118,000 and a decrease of $11,000 relating to the 2000 and 1999
Acquisitions and the 1999 Repayments, respectively.

General and administrative expenses increased approximately $113,000 for the
three months ended March 31, 2000 as compared to 1999 primarily due to an
increase in public relations expenses and an increase in expense reimbursements
to the Manager and its affiliates due to the 2000 and 1999 Acquisitions.

Amortization increased approximately $32,000 for the three months ended March
31, 2000 as compared to 1999 primarily due to an increase in amortization of
deferred costs relating to the TOP and deferred costs relating to the issuance
of preferred shares of subsidiary.

A loss on repayment of one FMB in the amount of approximately $25,000 was
recorded for the three months ended March 31, 1999.

Income allocated to preferred shareholders of subsidiary for the three months
ended March 31, 2000 relates to the Preferred Offering executed on June 29,
1999.

Minority interest in income of subsidiary increased approximately $565,000 for
the three months ended March 31, 2000 as compared to 1999 primarily due to a
higher outstanding balance of the TOP in 2000.

CASH AVAILABLE FOR DISTRIBUTION
The Company uses cash available for distribution ("CAD") as the primary measure
of its dividend paying ability. The difference between CAD and net income
results from variations between generally accepted accounting principles
("GAAP") and cash received. One difference between CAD and GAAP is the
amortization of bond selection costs, costs relating to the TOP, costs relating
to the issuance of preferred stock of subsidiary and other intangible assets.
These amounts have been excluded from CAD due to their noncash nature. Another
difference is the noncash gain or loss associated with bond impairments,
repayments and sales for GAAP purposes, which are not included in the
calculation of CAD. During the three months ended March 31, 1999, there was a
loss on the repayment of one FMB in the amount of $25,493. CAD should not be
considered an alternative to net income as a measure of the Company's financial
performance or to cash flow from operating activities (computed in accordance
with GAAP) as a measure of the Company's liquidity, nor is it necessarily
indicative of sufficient cash flow to fund all of the Company's needs.



                                       29
<PAGE>

Cash available for distribution ("CAD") for the three months ended March 31,
2000 and 1999 is summarized in the following table:

<TABLE>
<CAPTION>
                                                          Three Months Ended
                                                                March 31,
                                                        ------------------------
                                                           2000          1999
                                                        ------------------------
<S>                                                     <C>           <C>
Sources of Cash
Interest income:
First mortgage bonds                                    $11,205,357   $7,921,003
Other bond related investments                              135,747            0
Temporary investments                                       467,654      102,522
Promissory notes                                            242,211      165,159
Net amortization
 included in income                                         245,363       20,984
                                                            -------       ------

Total sources of cash                                    12,296,332    8,209,668
                                                         ----------    ---------

Uses of Cash
Total expenses, loss on repayment
   of first mortgage bonds, minority interest
   and income allocated to preferred
   shareholders of subsidiary                             5,480,580    2,183,162
Less:  Amortization included in
   expenses                                                (110,699)    (157,529)
   Loss on repayment  of FMB                                      0      (25,493)
                                                            -------    ---------

Total uses of cash                                        5,369,881    2,000,140
                                                          ---------    ---------

Cash available for distribution                           6,926,451    6,209,528

Less:  distributions to the Manager                        (594,759)    (431,626)
                                                          ---------    ---------

Cash available for distribution to
   shareholders                                          $6,331,692   $5,777,902
                                                          =========    =========

Distributions to shareholders                            $5,454,391   $4,939,434
                                                          =========    =========

Payout ratio                                                   86.1%        85.5%
                                                          ---------    ---------

Cash flows from:
   Operating activities                                  $8,442,038   $6,586,018
                                                          =========    =========

   Investing activities                                  $6,433,227  $(6,739,949)
                                                          =========   ==========

   Financing activities                                 $(8,220,328) $(5,446,943)
                                                         ==========   ==========
</TABLE>



                                       30
<PAGE>

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; 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.




                                       31
<PAGE>

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.

The FMBs 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-FLOAT program vary based on market
interest rates, primarily Bond Market Association ("BMA") and are re-set weekly.
Thus, an increase in market interest rates would result in increased payments
under these financing programs, without a corresponding increase in cash flows
from the investments in FMBs. For example, based on the $257,769,616 outstanding
under these financing programs at March 31, 2000, the Company estimates that an
increase of 0.5% in the BMA rate would decrease the Company's annual net income
by approximately $1,289,000; a 1.0% increase in BMA would decrease annual net
income by approximately $2,578,000. For the same reasons, a decrease in market
interest rates would generally benefit the Company, as a result of decreased
allocations to the minority interest and interest expense without corresponding
decreases in interest received on the FMBs, in the same amounts as described
above. During June of 1999, a subsidiary of the Company completed a $90 million
Preferred Offering. These preferred shares carry a fixed dividend rate of 6 5/8%
through June 30, 2009, and so are not impacted by changes in market interest
rates.

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. Although management has not engaged in any of these hedging
strategies in the past, it may do so in the future, depending on management's
analysis of the interest rate environment and the costs and risks of such
strategies.

Changes in market interest rates would also impact the estimated fair value of
the Company's portfolio of FMBs. The Company estimates the fair value for each
FMB as the present value of its expected cash flows, using a discount rate for
comparable tax-exempt investments. Therefore, as market interest rates for
tax-exempt investments increase, the estimated fair value of the Company's FMBs
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 investments would
decrease the estimated fair value of its portfolio of FMBs from its March 31,
2000 value of $592,125,000 to approximately $521,832,000. A 1% decline in
interest rates would increase the value of the March 31, 2000 portfolio to
approximately $684,794,000. Changes in the estimated fair value of the FMBs 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.


                                       32
<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

On May 10, 2000, the Company completed a private placement (the "Convertible
Preferred Offering") of $27,496,980 convertible preferred shares (the
"Convertible Preferred Shares") to three financial institutions (1,946,000
Convertible Preferred Shares priced at $14.13 per share). The Convertible
Preferred Offering enables financial institutions to receive certain regulatory
benefits in connection with their investment.

The Company has developed a proprietary method for specially allocating these
regulatory benefits to specific financial institutions that invest in the
Convertible Preferred Shares. In addition to the preferred allocation of
regulatory benefits, the preferred investors will receive the same economic
benefits as common shareholders of the Company. The preferred investors, at
their option, have the ability to convert their Convertible Preferred Shares
into Shares of the Company's common stock at a predetermined conversion price
of $15.33 per Share which represents the Company's book value per Share as of
December 31, 1999. Upon conversion, the preferred investors will no longer be
entitled to retain their preferential regulatory benefits.

Item 3. Defaults Upon Senior Securities - None

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

Item 5. Other Information

        John B. Roche will cease to serve as Chief Financial Officer effective
        May 15, 2000. Alan P. Hirmes has been appointed interim Chief Financial
        Officer effective May 15, 2000.

Effective May 3, 2000, the Company implemented a dividend reinvestment and
share repurchase plan (the "Plan"). Under the Plan, common shareholders may
elect to have their distributions from the Company automatically reinvested
in additional Shares at a purchase price equal to the average of the high and
low market price from the previous day's trading. If a common shareholder
participates in the Plan, such shareholder may also purchase additional
Shares through quarterly voluntary cash payments with a minimum contribution
of $500. There are no commissions for Shares purchased under the Plan.
Participation in the Plan is voluntary and a common shareholder may join or
withdraw at any time. The opportunity for participation in the Plan will
begin with the distributions paid in August 2000. In order to participate in
the "voluntary share purchase" part of the Plan, a shareholder must
participate in the "dividend reinvestment" part of the Plan.

Item 6. Exhibits and Reports on Form 8-K

        (a) Exhibits:


                                       33
<PAGE>

            27      Financial Data Schedule (filed herewith).

        (b) Reports on Form 8-K

           Current report on Form 8-K relating to the resignation of J. Michael
           Fried as Chairman of the Board of Trustees and Chief Executive
           Officer and Stuart J. Boesky as Chief Operating Officer and the
           unanimous appointment of Stephen M. Ross as Chairman of the Board of
           Trustees and Stuart J. Boesky as Chief Executive Officer was dated
           December 16, 1999 and was filed on January 5, 2000.





                                       34
<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:  May 12, 2000                 By: /s/ Stuart J. Boesky
                                        --------------------
                                        Stuart J. Boesky
                                        Managing Trustee, President
                                        and Chief Executive Officer




Date:  May 12, 2000                 By: /s/ John B. Roche
                                        -----------------
                                        John B. Roche
                                        Chief Financial Officer and Chief
                                        Accounting Officer