Filed Pursuant to Rule 424(b)(3)
                                                      Registration No. 333-65461

                                   PROSPECTUS

                        MUNICIPAL MORTGAGE & EQUITY, LLC

                                  COMMON SHARES


The common shares to which this Prospectus relates were acquired pursuant to our
1998  Non-Employee  Directors'  Share Plan and our 1998 Share  Incentive Plan by
Selling  Shareholders  who are  directors,  officers and  employees of Municipal
Mortgage & Equity,  LLC,  and may be offered  from time to time by such  Selling
Shareholders who we will specifically identify in prospectus supplements hereto.
The  Selling  Shareholders  may sell the  common  shares  on the New York  Stock
Exchange,  where our  common  shares are  currently  traded,  on any  securities
exchanges or other  quotation  systems on which our common shares may be traded,
in the over-the-counter market or in negotiated  transactions,  at prices and on
terms then available. The respective Selling Shareholders will pay any brokerage
fees or commissions relating to sales by them. See "Method of Sale." We will not
receive any part of the proceeds of any such sales.

Our principal  executive  office is located at 218 North Charles  Street,  Suite
500, Baltimore, Maryland 21201 (Telephone No. (410) 962-8044).

Neither  the  Securities  and  Exchange  Commission  nor  any  state  securities
commission has approved or disapproved  of these  securities or determined  that
this Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense.


We are paying the expenses of preparing and filing the Registration Statement of
which this Prospectus is a part.




                  The date of this Prospectus is May 14, 2001.





                                 TABLE OF CONTENTS


                                                                            Page

Incorporation by Reference ................................................... 2

Information We File........................................................... 2

Selling Shareholders ......................................................... 2

Method of Sale................................................................ 3

SEC Position Regarding Indemnification........................................ 3


                           INCORPORATION BY REFERENCE

         We incorporate by reference into this  Prospectus (a) our Annual Report
on Form 10-K for the year ended  December 31, 2000,  (b) the  description of our
common  shares  contained in our  registration  statement  under the  Securities
Exchange Act of 1934, as amended  (including any amendments or reports filed for
the purpose of updating such  description),  (c) our Proxy Statement on Schedule
14A, dated April 12, 2001 and (d) all other reports we filed pursuant to Section
13(a)  or 15(d) of the  Securities  Exchange  Act of  1934,  as  amended,  since
December 31, 2000.  These documents were filed under SEC File Number  001-11981.
We also  incorporate by reference into this Prospectus all the documents we file
pursuant to Sections  13, 14 and 15(d) of the  Securities  Exchange  Act of 1934
after the date of this Prospectus and before we file a post-effective  amendment
that  indicates that all the  securities to which this  Prospectus  relates have
been sold or that  deregisters all those  securities that have not been sold. We
will provide copies of all documents that are incorporated by reference  without
charge to anyone to whom we deliver this  Prospectus who makes a written or oral
request for them to Municipal Mortgage & Equity,  LLC, 218 North Charles Street,
Suite 500, Baltimore, Maryland 21201, Attention: Karin Berardo, telephone number
(410) 962-8044.

                               INFORMATION WE FILE

         We file annual,  quarterly and current  reports,  proxy  statements and
other  materials  with the Securities  and Exchange  Commission  pursuant to the
requirements  of the  Securities  Exchange Act of 1934.  The public may read and
copy any materials we file with the  Securities  and Exchange  Commission at the
Public Reference Room at 450 Fifth Street, N.W.,  Washington,  D.C. 20549 and at
the Regional  Offices of the  Securities  and Exchange  Commission  located at 7
World Trade Center,  Suite 1300, New York,  New York 10048 and Citicorp  Center,
500 West Madison Street,  Suite 1400,  Chicago,  Illinois 60661.  The public may
obtain  information on the operation of the Public Reference Room by calling the
SEC at  1-800-SEC-0330.  The  Securities  and Exchange  Commission  maintains an
Internet site that contains reports,  proxy and information statements and other
information  regarding issuers (including us) that file  electronically with the
Securities   and   Exchange   Commission.   The   address   of   that   site  is
http:\\www.sec.gov.

                              SELLING SHAREHOLDERS

         This  Prospectus  relates to possible sales by our directors,  officers
and  employees  of shares of our common  shares  that they  acquire  through our
various share  incentive  plans.  We do not know at this time who may be Selling
Shareholders from time to time. We will provide the names of those people, along
with the number of common  shares  owned,  and the number of shares  that may be
sold,  by each of  those  people  from  time  to  time  in  supplements  to this
Prospectus,  which we will file with the Securities  and Exchange  Commission in
accordance with Rule 424(b) under the Securities Act of 1933, as amended.


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                                 METHOD OF SALE

         The shares offered by this Prospectus may be sold on the New York Stock
Exchange,  where our common  shares are  currently  traded,  or in other markets
where our common shares are traded, or in negotiated transactions. Sales will be
at prices that are current when the sales take place.  Selling  Shareholders may
pay  brokers'  commissions.  Shares  that are sold may  include  shares in which
Selling  Shareholders  have granted  security  interests and that are being sold
because of foreclosure of those security interests.  There is no present plan of
distribution.

                     SEC POSITION REGARDING INDEMNIFICATION

         Our  Amended  and  Restated   Certificate  of  Formation  provides  for
indemnification  of  officers  and  directors  for any  loss,  damage  or  claim
(including reasonable attorneys' fees) due to any act or omission made by him or
her, except in the case of fraudulent or illegal conduct.

         We have been  informed  that,  in the  opinion  of the  Securities  and
Exchange Commission, insofar as directors, officers or other persons who control
us may  become  entitled  under  the  provisions  of our  Amended  and  Restated
Certificate of Formation to  indemnification  for liabilities  arising under the
Securities  Act of 1933,  that  indemnification  is  against  public  policy  as
expressed in that Act and is therefore unenforceable.




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