UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  Form 10-QSB/A

(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

                     For the quarterly period ended September 30, 2002


[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934


                    For the transition period from _________to _________

                         Commission file number 0-14458


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
        (Exact name of small business issuer as specified in its charter)


           Maryland                                               52-1365317
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                         55 Beattie Place, P.O. Box 1089
                        Greenville, South Carolina 29601
                    (Address of principal executive offices)

                                 (864) 239-1000
                           (Issuer's telephone number)

<PAGE>



                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS

This document amends the Form 10-QSB for the quarter ended September 30, 2002 to
correct a typing error in Part I - Item 3. Controls and Procedures, to correctly
list  the   appropriate   titles  for  the  individuals  on  the  Signature  and
Certification  pages and to include  dates on the  Signature  and  Certification
pages, which had been inadvertently omitted.


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                         Statement of Financial Position
                                   (Unaudited)
                        (in thousands, except unit data)

                               September 30, 2002


ASSETS
   Cash and cash equivalents                                                 $ 1
   Investments in and advances to Local Limited
      Partnerships (Note 2)                                                   --

                                                                             $ 1
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Liabilities
   Accrued expenses                                                         $ 33
   Administrative and reporting fees payable to
      General Partner (Note 3)                                             1,353
   Notes payable to General Partner (Note 3)                                  13
   Accrued interest on note payable to General Partner
      (Note 3)                                                                 1

Partners' capital (deficit)
   General Partner -- The National Housing
      Partnership (NHP)                                       $ 628
   Original Limited Partner -- 1133 Fifteenth
      Street Two Associates                                     (182)
   Other Limited Partners -- 18,043 investment
      units                                                   (1,845)    (1,399)

                                                                            $ 1

                       See Accompanying Notes to Financial Statements


<PAGE>


                  NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                            Statements of Operations
                                   (Unaudited)
                      (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                                   Three Months Ended      Nine Months Ended
                                                      September 30,          September 30,
                                                    2002        2001        2002       2001
Revenues:
  Share of profits from Local Limited
<S>                                                 <C>         <C>         <C>        <C>
     Partnership                                    $ --        $ --        $ --       $ 459
  Interest income                                       --          --         --           1
  Distributions in excess of investment in
    Local Limited Partnership                           --          --         --          98
  Gain on forgiveness of debt (Note 4)                  --          --         --         708
                                                        --          --         --       1,266
Costs and Expenses:
  Administrative and reporting fees to
    General Partner                                      5           8         15          34
  Other operating expenses                              13          14         42          60
  Interest on notes payable to General Partner          --          --          1          10
                                                        18          22         58         104

Net (loss) income                                   $ (18)      $ (22)     $ (58)     $ 1,162

Allocation of net (loss) income:
  General Partner - NHP                             $ (1)       $ --        $ (1)      $ 12
  Original Limited Partner - 1133 Fifteenth
    Street Two Associates                               (1)         --         (1)         12
  Other limited partners                               (16)        (22)       (56)      1,138

                                                    $ (18)      $ (22)     $ (58)     $ 1,162

Net (loss) income per limited partnership
  interest                                         $ (0.88)    $ (1.20)   $ (3.09)   $ 62.33


                       See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                    Statement of Partners' Capital (Deficit)
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                  The National      1133
                                     Housing     Fifteenth       Other
                                   Partnership   Street Two     Limited
                                      (NHP)      Associates     Partners        Total

Partners' deficit at
<S>        <C> <C>                    <C>          <C>          <C>            <C>
  December 31, 2001                   $ 629        $ (181)      $(1,789)       $(1,341)

Net loss - nine months ended
  September 30, 2002                      (1)          (1)          (56)           (58)

Partners' capital (deficit) at
  September 30, 2002                  $ 628        $ (182)      $(1,845)       $(1,399)

Percentage interest at
  September 30, 2002                     1%           1%            98%         100%
                                         (A)          (B)           (C)


(A)   General Partner
(B)   Original Limited Partner
(C)   Consists of 18,043  investment  units at September  30, 2002 and 18,138 at
      December  31, 2001 (see  "Footnote  5" in Notes to  Financial  Statements;
      "Abandonment of Limited Partnership Units).

                       See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

                  NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                            Statements of Cash Flows
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                 Nine Months Ended September 30,
                                                                      2002             2001
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                   <C>              <C>
  Interest income received                                            $ --             $ 1
  Distributions received in excess of investment in Local
   Limited Partnership                                                    --              98
  Advances made in excess of investment in Local Limited
   Limited Partnership                                                    --              (7)
  Operating expenses paid                                                (50)            (64)
  Payment of interest on note payable                                     --          (1,575)
        Net cash used in operating activities                            (50)         (1,547)

Cash flows from investing activities:
  Distributions from Local Limited Partnerships                           43           2,027
  Advances to Local Limited Partnership                                   --              (3)
        Net cash provided by investing activities                         43           2,024

CASH FLOWS FROM FINANCING ACTIVITIES:
  Advances from General Partner                                           41               8
  Repayment of advances from General Partner                             (38)            (33)
  Payments on deferred acquisition note payable                           --            (452)
        Net cash provided by (used in) financing activities                3            (477)

NET DECREASE IN CASH AND CASH EQUIVALENTS                                 (4)             --

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                           5               1

CASH AND CASH EQUIVALENTS AT END OF PERIOD                             $ 1             $ 1

RECONCILIATION OF NET (LOSS) INCOME TO NET CASH USED IN
  OPERATING ACTIVITIES:
   Net (loss) income                                                  $ (58)         $ 1,162
   Adjustments to reconcile net (loss) income to net cash
     used in operating activities:
      Share of income from Local Limited Partnerships                     --            (459)
      Changes in operating assets and liabilities:
        Gain on forgiveness of debt                                       --            (708)
        Decrease in accrued interest on deferred acquisition
          note                                                            --          (1,564)
        Increase in administrative and reporting fees payable             15              34
        Decrease in other accrued expenses                                (8)            (12)
        Increase in accrued interest on loans from General
          Partner                                                          1              --
        Total adjustments                                                  8          (2,709)

Net cash used in operating activities                                 $ (50)         $(1,547)

                       See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>
                  NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                          Notes to Financial Statements
                                   (Unaudited)


(1) ACCOUNTING POLICIES

Organization

National  Housing   Partnership  Realty  Fund  Two  (the  "Partnership"  or  the
"Registrant")  is a limited  partnership  organized  under the Maryland  Revised
Uniform Limited  Partnership Act on January 22, 1985. The Partnership was formed
for the purpose of raising capital by offering and selling  limited  partnership
interests  and  then   investing  in  limited   partnerships   ("Local   Limited
Partnerships"),  each of which owns and  operates  an  existing  rental  housing
project  which is  financed  and/or  operated  with one or more  forms of rental
assistance or financial assistance from the U.S. Department of Housing and Urban
Development  ("HUD").  On April 30, 1985, the Partnership  began raising capital
and acquiring interests in Local Limited Partnerships.

The National Housing  Partnership,  a District of Columbia  limited  partnership
("NHP" or the  "General  Partner"),  was  authorized  to raise  capital  for the
Partnership by offering and selling to additional limited partners not more than
18,300  interests  at a price of  $1,000  per  unit.  During  1985,  the sale of
interests  was closed after the sale of 18,300  interests  to limited  partners.
Apartment  Investment  and  Management  Company  ("AIMCO")  and  its  affiliates
ultimately  control the General  Partner.  The original  Limited  Partner of the
Partnership is 1133 Fifteenth Street Two Associates, whose limited partners were
key  employees  of the general  partner of NHP at the time the  Partnership  was
formed. The general partner of 1133 Fifteenth Street Two Associates is NHP.

Basis of Presentation

The accompanying  unaudited interim financial statements reflect all adjustments
which are, in the opinion of management,  necessary for a fair  presentation  of
the  financial  condition  and results of  operations  for the  interim  periods
presented.  All such adjustments are of a normal and recurring nature. Operating
results for the three and nine month  periods  ended  September 30, 2002 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31,  2002.  While the General  Partner  believes  that the  disclosures
presented are adequate to make the information  not misleading,  it is suggested
that  these  financial  statements  be read in  conjunction  with the  financial
statements and notes included in the  Partnership's  Annual Report filed on Form
10-KSB for the year ended December 31, 2001.

(2) INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS

During 1985, the Partnership  acquired a 94.5% limited partnership interest (98%
with respect to allocation of losses) in twenty-one Local Limited  Partnerships.
At September 30, 2002,  the  Partnership  continues to hold an interest in three
Local Limited  Partnerships:  San Juan del Centro Limited Partnership,  Caroline
Arms Limited Partnership and Harold House Limited  Partnership.  During the nine
months ended September 30, 2002, the Partnership received its share of the final
distribution of Windsor Apartments  Associates Limited Partnership and the Local
Limited Partnership was liquidated.  During 2001, the Partnership's  interest in
Esbro Limited Partnership, Mayfair Manor Limited Partnership, and Hurbell II and
III Limited  Partnership  were foreclosed upon. Also during 2001, the properties
owned by Windsor Apartment  Associates and West Oak Village Limited  Partnership
were sold.

Caroline Arms,  Harold House,  and San Juan Del Centro Limited  Partnerships all
have notes  payable which are  currently in default and  accordingly,  the Local
Limited  Partnership  interests are subject to foreclosure.  Continuation of the
Local Limited Partnerships' operations in the present form is dependent on their
ability to extend the  maturity  date of the  respective  notes,  or to repay or
refinance their respective  notes.  The financial  statements do not include any
adjustments which might result from the outcome of this uncertainty.

Since the Partnership,  as a limited partner, does not exercise control over the
activities of the Local Limited  Partnerships in accordance with the partnership
agreements,  these investments are accounted for using the equity method.  Thus,
the  investments are carried at cost less the  Partnership's  share of the Local
Limited  Partnerships'  losses and distributions plus the Partnership's share of
Local Limited  Partnerships'  profits.  However,  since the  Partnership  is not
legally liable for the obligations of the Local Limited Partnerships, and is not
otherwise committed to provide additional support to them, it does not recognize
losses once its investment in each of the individual Local Limited  Partnerships
reduced for its share of losses and cash  distributions,  reaches zero.  Once an
investment account has been reduced to zero, profits reported by a Local Limited
Partnership  are not  recognized  by the  Partnership  until such profits  equal
losses not recognized plus distributions  received and previously  recognized as
revenue. As a result, the Partnership did not recognize  approximately  $167,000
and $620,000 of losses from three and six Local Limited  Partnerships during the
nine months ended  September  30, 2002 and 2001,  respectively.  During the nine
months ended September 30, 2001, the Partnership's share of profits in one Local
Limited  Partnership  in the amount of  approximately  $6,000 was offset against
prior years'  losses not taken.  For the nine months ended  September  30, 2002,
there  were no profits  offset  against  prior  years'  losses not taken.  As of
September 30, 2002, the Partnership has not recognized  approximately $3,121,000
of  its  allocated   cumulative   share  of  losses  from  three  Local  Limited
Partnerships in which its investment has been reduced to zero.

Effective  April  1,  2002,  the  Partnership  adopted  Statement  of  Financial
Accounting  Standards ("SFAS") No. 145, "Rescission of FASB Statements No. 4, 44
and 64". SFAS No. 4 "Reporting  Gains and Losses from  Extinguishment  of Debt,"
required  that all gains and losses from  extinguishment  of debt be  aggregated
and, if material,  classified as an  extraordinary  item.  SFAS No. 145 rescinds
SFAS No. 4, and accordingly, gains and losses from extinguishment of debt should
only be  classified  as  extraordinary  if they are  unusual in nature and occur
infrequently. Neither of these criteria applies to the Partnership. As a result,
the accompanying statements of operations have been restated to reflect the gain
on forgiveness of the balance of the note payable  secured by the  Partnership's
interest in Windsor Apartments  Associates Limited Partnership in 2001 (see Note
4 -  Sale  of  Investment  Property  Owned  by  Local  Limited  Partnership)  in
operations rather than as an extraordinary item.

During the nine months ended  September 30, 2001, the  Partnership  made working
capital advances of approximately $10,000 to six Local Limited Partnerships.  No
repayments  were  received  during the nine months ended  September 30, 2001. No
working capital advances or repayments were made between the Partnership and the
Local Limited  Partnerships for the nine months ended September 30, 2002. During
1993,  the  Partnership  re-evaluated  the timing of the  collectibility  of the
advances and determined,  based on the Local Limited  Partnerships'  operations,
that such advances are not likely to be collected.  For accounting purposes, the
Partnership  treated the advance balance as additional  investments in the Local
Limited Partnerships. The balance was then reduced to zero, with a corresponding
charge to operations to reflect a portion of the previously  unrecognized losses
on investments.

Advances  to the  Local  Limited  Partnership  remain  due  and  payable  to the
Partnership.  Interest  is  calculated  at the  prime  rate  plus 2%  (6.75%  at
September  30, 2002).  Payment of principal and interest is contingent  upon the
Local  Limited  Partnerships  having  available  surplus cash, as defined by HUD
regulations,  from  operations  or from the  sale or  refinancing  of the  Local
Limited  Partnership  properties.  Any future  repayment of advances or interest
will be reflected as Partnership income when received.

The  following  are unaudited  combined  statements  of operations  for the nine
months ended  September 30, 2002 and 2001 of the Local Limited  Partnerships  in
which the Partnership  has invested.  The statements are compiled from financial
statements of the Local Limited  Partnerships  which are prepared on the accrual
basis of accounting and supplied by the managing agents of the projects. Certain
reclassifications  have been made to the 2001 information to conform to the 2002
presentation.

                        COMBINED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>

                                          Three Months Ended       Nine Months Ended
                                            September 30,            September 30,
                                           2002        2001        2002        2001
                                            (in thousands)          (in thousands)

<S>                                       <C>          <C>        <C>         <C>
Rental income                             $ 627        $ 974      $1,919      $3,828
Other income                                 121         409         352         541
Gain on sale of property                      --          --          --         631
   Total income                              748       1,383       2,271       5,000

Operating expenses                           379         748       1,202       2,635
Interest, taxes and insurance                220         549         663       1,445
Depreciation                                 193         252         575       1,023
   Total expense                             792       1,549       2,440       5,103

Net loss                                  $ (44)      $ (166)     $ (169)     $ (103)

National Housing Partnership
  Realty Fund Two share of net
  loss                                    $ (43)      $ (162)     $ (166)     $ (125)
</TABLE>

(3) TRANSACTIONS WITH THE GENERAL PARTNER

During the nine month periods ended September 30, 2002 and 2001, the Partnership
accrued  administrative and reporting fees payable to the General Partner in the
amount of approximately $15,000 and $34,000, respectively, for services provided
to the  Partnership.  The  amount  of fees  due to the  General  Partner  by the
Partnership  was  approximately  $1,353,000 at September  30, 2002.  The accrued
administrative and reporting fees payable to the General Partner will be paid as
cash  flow  permits  or  from  the  sale  or  refinancing  of one or more of the
underlying properties of the Local Limited Partnerships.

The General Partner  advanced the Partnership  approximately  $41,000 and $8,000
during the nine months ended September 30, 2002 and 2001, respectively.  For the
nine months ended September 30, 2002 and 2001, the  Partnership  repaid advances
of  approximately  $38,000 and $33,000,  respectively,  to the General  Partner.
Interest is charged on borrowings  at the Chase  Manhattan  Bank prime  interest
rate plus 2% and amounted to  approximately  $1,000 and less than $1,000 for the
nine months ended  September 30, 2002 and 2001,  respectively.  Chase  Manhattan
Bank's prime rate was 4.75% at September 30, 2002.  At September  30, 2002,  the
Partnership owed  approximately  $14,000 in unpaid borrowings due to the General
Partner, including accrued interest.

During the nine months ended  September 30, 2001, the  Partnership  made working
capital advances of approximately $10,000 to six Local Limited Partnerships.  No
repayments  were  received  during the nine months ended  September 30, 2001. No
working capital advances or repayments were made between the Partnership and the
Local Limited Partnerships for the nine months ended September 30, 2002.

Beginning  in  2001,  the  Local  Limited   Partnerships  began  insuring  their
properties  up to certain  limits  through  coverage  provided by AIMCO which is
generally  self-insured  for a portion  of losses  and  liabilities  related  to
workers compensation, property casualty and vehicle liability. The Local Limited
Partnerships  insure their properties  above the AIMCO limits through  insurance
policies obtained by AIMCO from insurers  unaffiliated with the General Partner.
During the nine months  ended  September  30, 2002 and 2001,  the Local  Limited
Partnerships were charged by AIMCO and its affiliates  approximately $31,000 and
$93,000,  respectively,  for insurance  coverage and fees associated with policy
claims administration.

(4) SALE OF INVESTMENT PROPERTY OWNED BY LOCAL LIMITED PARTNERSHIP

On January 31, 2001, Windsor Apartment  Associates Limited  Partnership sold its
investment property to an unaffiliated third party for $4,600,000.  After paying
closing  costs,  a portion of the net  proceeds  were used to repay the mortgage
encumbering the property. The Partnership received approximately $2,027,000 from
the Local Limited  Partnership as its portion of the sales  proceeds  during the
nine months ended September 30, 2001. The Partnership  used these funds to repay
a portion of the note  payable  and  accrued  interest  which was secured by the
Partnership's interest in the Windsor Apartments Associates Limited Partnership.
The  remaining  unpaid  balance  of  approximately  $708,000  was  forgiven  and
recognized as a gain on debt forgiveness.

On December 28, 2001, West Oak Village Limited  Partnership  sold its investment
property to an  unaffiliated  third party for  approximately  $3,172,000.  After
paying  closing  costs,  the net  proceeds  were  used  to  repay  the  mortgage
encumbering the property. The remaining proceeds were used to repay a portion of
the deferred acquisition note and accrued interest thereon which was held by the
general partner of the Local Limited Partnership. The unpaid portion of the note
was  forgiven  and  treated  as a  capital  contribution  to the  Local  Limited
Partnership.  With the sale of the Local  Limited  Partnership's  property,  the
Partnership will receive no future benefits from this Local Limited Partnership.

(5) ABANDONMENT OF LIMITED PARTNERSHIP UNITS

During  the  nine  months  ended  September  30,  2002  the  number  of  limited
partnership units decreased by 95 units due to limited partners abandoning their
units. In abandoning his or her Limited  Partnership  Unit(s), a limited partner
relinquishes all right, title, and interest in the partnership as of the date of
abandonment.  However,  the limited partner is allocated his or her share of net
income or loss for that year.  The income or loss per other limited  partnership
unit in the  accompanying  statements of  operations is calculated  based on the
number of units  outstanding  at the  beginning of the year.  There were no such
abandonments during the nine months ended September 30, 2001.

(6) LEGAL PROCEEDINGS

The Partnership is unaware of any pending or outstanding  litigation that is not
of a routine nature arising in the ordinary course of business.

(7) GOING CONCERN

All of the  Local  Partnership's  notes  payable  are  past  due  (see  Note 2).
Continuation  of the Local  Partnerships'  operations  in their  present form is
dependent on their ability to extend the maturity date, repay or refinance these
notes.  These  conditions  raise  substantial  doubt  about the  ability  of the
Partnership  to continue as a going  concern.  The  financial  statements do not
include any adjustments which might result from the outcome of this uncertainty.

<PAGE>

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

The Private  Securities  Litigation  Reform Act of 1995 provides a "safe harbor"
for forward-looking  statements in certain circumstances.  The matters discussed
in this report contain certain forward-looking  statements,  including,  without
limitation,  statements regarding future financial performance and the effect of
government regulations. The discussions of the Registrant's business and results
of operations,  including forward-looking statements pertaining to such matters,
do not take into account the effects of any changes to the Registrant's business
and  results of  operations.  Actual  results may differ  materially  from those
described in the forward-looking statements and will be affected by a variety of
risks and factors  including,  without  limitation:  national and local economic
conditions; the terms of governmental regulations that affect the Registrant and
interpretations of those regulations;  the competitive  environment in which the
Registrant  operates;  financing risks,  including the risk that cash flows from
operations  may be  insufficient  to meet  required  payments of  principal  and
interest;  real estate risks, including variations of real estate values and the
general  economic  climate in local markets and  competition for tenants in such
markets; and possible environmental liabilities. Readers should carefully review
the Registrant's financial statements and the notes thereto, as well as the risk
factors  described in the documents the Registrant  files from time to time with
the Securities and Exchange Commission.

This item should be read in conjunction with the financial  statements and other
items contained elsewhere in this report.

Liquidity and Capital Resources

As of September 30, 2002, the  Partnership  retained an interest in three of its
original  twenty-one  Local Limited  Partnerships.  The  properties in which the
Local Limited Partnerships have invested receive one or more forms of assistance
from the  Federal  Government.  As a  result,  the Local  Limited  Partnerships'
ability to transfer funds either to the  Partnership or among  themselves in the
form of cash distributions,  loans, or advances is generally restricted by these
government-assistance    programs.   These   restrictions   could   impact   the
Partnership's  ability  to meet  its cash  obligations  given  the low  level of
reserves at the Partnership level. The General Partner monitors  developments in
the area of legal and  regulatory  compliance  and is studying new federal laws,
including  the  Sarbanes-Oxley  Act of  2002.  The  Sarbanes-Oxley  Act of  2002
mandates or suggests  additional  compliance measures with regard to governance,
disclosure,  audit and other areas.  In light of these changes,  the Partnership
expects  that it will incur higher  expenses  related to  compliance,  including
increased legal and audit fees.

During the nine months ended  September 30, 2001, the  Partnership  made working
capital advances of approximately $10,000 to six Local Limited Partnerships.  No
repayments were made during the nine months ended September 30, 2001. No working
capital  advances were made or repayments  received  between the Partnership and
the Local Limited Partnerships for the nine months ended September 30, 2002.

Distributions  received in excess of investment  in Local  Limited  Partnerships
represent the Partnership's proportionate share of the excess cash available for
distribution from the Local Limited Partnerships.  As a result of the use of the
equity method of accounting for the  Partnership's  investments,  investments in
all of the remaining Local Limited  Partnerships  had been reduced to zero as of
September  30, 2002.  For these  investments,  cash  distributions  received are
recorded in income as  distributions  received in excess of  investment in Local
Limited  Partnerships.  If  these  investments  had not  been  reduced  to zero,
distributions  received  would be recorded as  distributions  from Local Limited
Partnerships.  A distribution of  approximately  $43,000  comprised of the final
proceeds from the sale of Windsor Apartments was received during the nine months
ended September 30, 2002. A distribution of approximately $2,027,000,  comprised
of initial  proceeds from the sale of Windsor  Apartments and  distributions  in
excess of investment in Local Limited  Partnerships  of  approximately  $98,000,
were received  during the nine months ended  September 30, 2001.  The receipt of
distributions  in the future is dependent  upon the operations of the underlying
properties of the Local Limited  Partnerships  to generate  sufficient  cash for
distribution in accordance with applicable HUD regulations.

Cash and cash equivalents amounted to approximately $1,000 at September 30, 2002
compared to approximately  $5,000 at December 31, 2001. The decrease in cash and
cash  equivalents  is due to  approximately  $50,000  of cash used in  operating
activities partially offset by approximately $43,000 and $3,000 of cash provided
by investing and financing activities,  respectively. Cash provided by investing
activities  consisted of the final distribution from the proceeds of the sale of
Windsor Apartments.  Cash provided by financing activities consisted of advances
to the Partnership  from the General Partner  partially  offset by repayments of
prior  advances  from the General  Partner.  Cash used in  operating  activities
consisted of the payment of operating  expenses.  The ability of the Partnership
to meet its on-going  cash  requirements  in excess of cash on hand at September
30, 2002 is dependent  upon the future receipt of  distributions  from the Local
Limited Partnerships or proceeds from sales or refinancing of one or more of the
underlying properties of the Local Limited  Partnerships.  The Partnerships only
other form of liquidity is advances  from the General  Partner.  During the nine
months  ended  September  30,  2002  approximately  $41,000 of  working  capital
advances were made by the General  Partner to the  Partnership.  The Partnership
repaid advances of approximately  $38,000 during the nine months ended September
30, 2002. The General Partner will evaluate advancing the Partnership additional
funds as such funds are needed,  but is in no way legally obligated to make such
advances.

The Partnership currently owes the General Partner approximately  $1,353,000 for
administrative  and  reporting  services  performed.  The  payment of the unpaid
administrative  and reporting fees will most likely result,  if at all, from the
sale  or  refinancing  of  the  underlying   properties  of  the  Local  Limited
Partnerships, rather than through recurring operations.

On January 31, 2001, Windsor Apartment  Associates Limited  Partnership sold its
investment property to an unaffiliated third party for $4,600,000.  After paying
closing  costs,  a portion of the net  proceeds  were used to repay the mortgage
encumbering the property. The Partnership received approximately $2,027,000 from
the Local Limited  Partnership as its portion of the sales  proceeds  during the
nine months ended September 30, 2001. The Partnership  used these funds to repay
a portion of the note  payable  and  accrued  interest  which was secured by the
Partnership's interest in the Windsor Apartments Associates Limited Partnership.
The  remaining  unpaid  balance  of  approximately  $708,000  was  forgiven  and
recognized as a gain on debt forgiveness.

On December 28, 2001, West Oak Village Limited  Partnership  sold its investment
property to an  unaffiliated  third party for  approximately  $3,172,000.  After
paying  closing  costs,  the net  proceeds  were  used  to  repay  the  mortgage
encumbering the property. The remaining proceeds were used to repay a portion of
the deferred acquisition note and accrued interest thereon which was held by the
general partner of the Local Limited Partnership. The unpaid portion of the note
was  forgiven  and  treated  as a  capital  contribution  to the  Local  Limited
Partnership.  With the sale of its  property,  the  Partnership  will receive no
future benefits from this Local Limited Partnership.

Caroline  Arms,  Harold House and San Juan Del Centro Limited  Partnerships  all
have notes which were executed by the respective Local Limited Partnerships with
the  seller as part of the  acquisition  of the  property  by the Local  Limited
Partnership.  The notes were nonrecourse notes secured by a security interest in
all Partnership  interests in the Local Limited Partnership and are subordinated
to the  respective  mortgage  notes on each property for as long as the mortgage
notes are insured by HUD. Any payments due from project  income are payable from
surplus cash, as defined by the HUD  Regulatory  Agreement.  Neither the Limited
Partnership  nor any  partners  thereof,  present or future  assume any personal
liability for the payment of the notes.  The notes were due November,  15, 1999,
November 15, 1999 and December 20, 1999,  respectively.  Each note is in default
and  the  Local   Limited   Partnership   interests  are  subject  to  potential
foreclosure.  Continuation of the Local Limited Partnerships'  operations in the
present form is  dependent  on its ability to extend the maturity  date of their
respective  notes, or to repay or refinance their note. All of the Local Limited
Partnerships are actively attempting to sell their respective net assets.

Esbro and  Mayfair  Manor  Limited  Partnerships  had notes  payable  which were
originally due on October 15, 1997.  Effective February 16, 1998, both Esbro and
Mayfair  Manor Limited  Partnerships  executed  Amended and Restated  Promissory
Notes  for each of their  respective  notes.  The  Amended  Notes  extended  the
maturity of the notes to October 25, 1999.  The Local Limited  Partnerships  did
not have the  resources to pay the amounts due. On July 20, 2001,  the holder of
these notes  exercised its remedy under the security  agreement  with respect to
such notes and was  substituted as the sole limited partner of the Local Limited
Partnerships  in place of the  Partnership  and the  noteholder's  assignee  was
substituted  as the  General  Partner.  No gain or loss has been  recorded  as a
result of the  transfer  of these  partnership  interests.  With the loss of the
Partnership's  interest in Esbro and Mayfair  Manor,  the  Partnership  will not
receive any future  benefits from these Local Limited  Partnerships  and taxable
income  through the date of  foreclosure  will be generated and allocated to the
Partnership's  investors without any distributable  cash. The specific impact of
the tax consequence is dependent upon each partners' individual tax situation.

Hurbell II and Hurbell III Limited Partnerships had notes payable which were due
on November 2, 1999. The Local Limited  Partnerships  did not have the resources
to pay the amounts due. On April 2, 2001 and March 28, 2001,  respectively,  the
holder of these notes  exercised  its remedy under the security  agreement  with
respect to such notes and was  substituted  as the sole  limited  partner of the
Local  Limited  Partnerships  in place of the  Partnership  and the  noteholders
assignee  was  substituted  as the  general  partner.  No gain or loss  has been
recorded as a result of the transfer of these  partnership  interests.  With the
loss  of  the  Partnership's  interest  in  Hurbell  II  and  Hurbell  III,  the
Partnership  will not  receive  any future  benefits  from these  Local  Limited
Partnerships  and  taxable  income  through  the  date  of  foreclosure  will be
generated and allocated to the Partnership's investors without any distributable
cash. The specific impact of the tax consequence is dependent upon each specific
partners' individual tax situation.

As a result  of the  conditions  above,  there is  substantial  doubt  about the
Partnership's  ability to continue as a going concern.  The financial statements
do  not  include  any  adjustments  to  reflect  the  possible  effects  on  the
recoverability  and  classification of assets or amounts and  classifications of
liabilities that may result from these uncertainties.

Results of Operations

The  Partnership  invested as a limited  partner in Local  Limited  Partnerships
which operated twenty-one rental housing properties.  At September 30, 2002, the
Partnership  continued to hold an interest in three Local Limited  Partnerships.
To the extent the Partnership  still has a carrying basis in a respective  Local
Limited  Partnership,  results of operations are  significantly  impacted by the
Partnership's  share of the profits or losses in the Local Limited  Partnership.
These profits or losses include  depreciation  and accrued note payable interest
expense which are noncash in nature.  As of September 30, 2002, the  Partnership
had no carrying  basis in any of the Local  Limited  Partnerships  and therefore
reflected no results of operations  for its share of profits or losses for these
Local Limited Partnerships.

The  Partnership  had a net loss of  approximately  $58,000  for the nine months
ended September 30, 2002, compared to net income of approximately $1,162,000 for
the nine months ended  September  30, 2001.  The  Partnership  had a net loss of
approximately  $18,000 for the three months ended  September 30, 2002,  compared
with a net loss of approximately $22,000 for the nine months ended September 30,
2002.  Net loss per unit of limited  partnership  was $3.09 for the nine  months
ended  September  30,  2002  compared  to  net  income  of  $62.33  per  limited
partnership  unit for the nine months ended  September 30, 2001. The decrease in
net  income  for  the  nine  months  ended   September  30,  2002  is  primarily
attributable to the  Partnership's  share of the gain recognized during the nine
months ended September 30, 2001 related to the sale of Windsor  Apartments and a
gain  on  forgiveness  of debt  relating  to the  note  payable  secured  by the
Partnership's  interest in the Local  Limited  Partnership  which owned  Windsor
Apartments.  The  Partnership  did not recognize  approximately  $167,000 of its
allocated  share of losses from three Local  Limited  Partnerships  for the nine
months ended  September 30, 2002,  as the  Partnership's  net carrying  basis in
these Local Limited  Partnerships  had been reduced to zero.  The  Partnership's
share of losses  from the Local  Limited  Partnerships,  if not  limited  to its
investment account balance, would have decreased  approximately $453,000 between
periods. The decrease is primarily due to the foreclosure on the properties held
by Esbro,  Mayfair Manor, Hurbell II and Hurbell III Limited Partnerships during
2001.

ITEM 3.     CONTROLS AND PROCEDURES

The principal  executive officer and principal  financial officer of the General
Partner, who are the equivalent of the Partnership's principal executive officer
and  principal  financial  officer,  respectively,  have,  within 90 days of the
filing  date  of this  quarterly  report,  evaluated  the  effectiveness  of the
Partnership's  disclosure  controls and  procedures  (as defined in Exchange Act
Rules  (13a-14(c)  and  (15d-14(c))  and have  determined  that such  disclosure
controls and procedures are adequate.  There have been no significant changes in
the Partnership's internal controls or in other factors that could significantly
affect the  Partnership's  internal  controls since the date of evaluation.  The
Partnership does not believe any significant deficiencies or material weaknesses
exist in the Partnership's internal controls. Accordingly, no corrective actions
have been taken.



<PAGE>


                           PART II - OTHER INFORMATION



ITEM 6      EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits

                  Exhibit 99, Certification of Chief Executive Officer and Chief
                  Financial Officer.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended September 30, 2002.


<PAGE>


                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                    NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                                    (Registrant)


                                    By:   The National Housing Partnership,
                                          Its sole General Partner


                                    By:   National Corporation for Housing
                                          Partnerships, its sole General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          President


                                    By:   /s/Thomas C. Novosel
                                          Thomas C. Novosel
                                          Senior Vice President
                                          and Chief Accounting Officer


                                    Date: November 13, 2002



<PAGE>
                                  CERTIFICATION


I, Patrick J. Foye, certify that:


1. I have  reviewed  this  quarterly  report on Form 10-QSB of National  Housing
Partnership Realty Fund Two;


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


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


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


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


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


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


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


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


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


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


Date:  November 13, 2002

                               /s/Patrick J. Foye
                                  Patrick J. Foye
                                  President of National Corporation for Housing
                                  Partnerships, equivalent of the chief
                                  executive officer of the Partnership


<PAGE>



                                  CERTIFICATION


I, Paul J. McAuliffe, certify that:


1. I have  reviewed  this  quarterly  report on Form 10-QSB of National  Housing
Partnership Realty Fund Two;


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


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


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


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


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


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


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


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


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


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


Date:  November 13, 2002

                                 /s/Paul J. McAuliffe
                                    Paul J. McAuliffe
                                    Executive Vice President and Chief Financial
                                    Officer of National  Corporation for Housing
                                    Partnerships,   equivalent   of  the   chief
                                    financial officer of the Partnership


<PAGE>


Exhibit 99


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002



In  connection  with the  Quarterly  Report on Form 10-QSB of  National  Housing
Realty Fund II (the "Partnership"), for the quarterly period ended September 30,
2002 as filed with the  Securities  and Exchange  Commission  on the date hereof
(the  "Report"),  Patrick  J. Foye,  as the  equivalent  of the chief  executive
officer of the  Partnership,  and Paul J.  McAuliffe,  as the  equivalent of the
chief financial officer of the Partnership,  each hereby certifies,  pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that, to the best of his knowledge:

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

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


                               /s/ Patrick J. Foye
                              Name: Patrick J. Foye
                              Date: November 13, 2002


                              /s/ Paul J. McAuliffe
                             Name: Paul J. McAuliffe
                             Date: November 13, 2002


This  certification  accompanies  the  Report  pursuant  to  Section  906 of the
Sarbanes-Oxley  Act of 2002 and shall not,  except to the extent required by the
Sarbanes-Oxley  Act of 2002, be deemed filed by the  Partnership for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended.