Item 8.01 Other Events.

On July 30, 2009, MMA Financial Holdings, Inc. ("MFH"), a subsidiary of Municipal Mortgage & Equity, LLC (the "Company"), entered into (a) an exchange agreement (the "Exchange Agreement") with Taberna Preferred Funding II, Ltd. ("Taberna ") and (b) a junior subordinated indenture with The Bank of New York Mellon Trust Company, National Association, as trustee (the "Indenture " and, together with the Exchange Agreement, the "Exchange Documents"). Pursuant to the Exchange Documents, (a) Taberna exchanged trust preferred securities with a liquidation preference of $23,750,000 that had been issued by MFH Capital Trust 2, a trust formed by MFH, and backed by a Junior Subordinated Note due 2035 in the same principal amount that had been issued by MFH (the "Original Trust 2 Note") for $28,975,000 principal amount of Junior Subordinated Notes due April 30, 2035 issued by MFH (the "New Series II Notes") and (b) Taberna exchanged trust preferred securities with a liquidation preference of $13,750,000 that had been issued by MFH Capital Trust 3, a trust formed by MFH, and backed by a Junior Subordinated Note due 2035 in the same principal amount that had been issued by MFH (the "Original Trust 3 Note" and together with the Original Trust 2 Note, the "Original Notes") for $16,775,000 principal amount of Junior Subordinated Notes due July 30, 2035 issued by MFH (the "New Series III Notes" and, together with the New Series II Notes, the "New Notes"). A proportionate amount of the Original Notes backing the exchanged trust preferred securities were cancelled in connection with the exchange described herein.

The New Notes carry a reduced interest rate of 0.75% per annum payable quarterly in accordance with the terms of the Original Notes for a period of three years beginning on May 1, 2009 (the "Modification Period"), and thereafter at the same rates as the Original Notes (8.05%, adjusting to floating LIBOR plus 3.30% following April 30, 2015, for the New Series II Notes and 7.62%, adjusting to floating LIBOR plus 3.30% following April 30, 2015, for the New Series III Notes). During the Modification Period, the cure period for a default in the payment of interest is reduced to 5 business days. With respect to the New Series II Notes, principal is payable in two installments: $4,242,463 payable on June 30, 2014, and $24,732,537 payable on April 30, 2035. With respect to the New Series III Notes, principal is payable in two installments: $2,304,803 payable on July 30, 2014, and $14,470,197 payable on July 30, 2035.

The New Notes are ranked senior to the Original Notes and certain other notes and guarantees backing trust preferred securities issued by subsidiary trusts of MFH. The New Notes rank pari passu in right of payment with other MFH notes issued in exchange for trust preferred securities issued by subsidiary trusts of MFH on a substantially similar economic basis. The New Notes are guaranteed by the Company on a substantially similar basis as the Company's guarantee of the Original Notes.

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