UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, DC.  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, 2003
                               ----------------------------------

                               or

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

For the transition period from _______________ to _______________

Commission file number                 0-14645
                        -----------------------------------------

                DIVERSIFIED HISTORIC INVESTORS II
-----------------------------------------------------------------
    (Exact name of registrant as specified in its charter)

Pennsylvania                                        23-2361261
--------------                                  -----------------
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)                 Identification No.)

           1521 Locust Street, Philadelphia, PA   19102
-----------------------------------------------------------------
     (Address of principal executive offices)    (Zip Code)

Registrant's telephone number, including area code (215) 557-9800
                                                   --------------

                              N/A
-----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)

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

                   DIVERSIFIED HISTORIC INVESTORS II
                 (a Pennsylvania limited partnership)

                      CONSOLIDATED BALANCE SHEETS
                      ---------------------------
                                Assets

                                March 31, 2003   December 31, 2002
                                --------------   ----------------
                                 (Unaudited)
Rental properties, at cost:
 Land                            $   847,082         $   847,082
 Buildings and improvements       39,014,097          39,014,097
 Furniture and fixtures            3,647,251           3,627,465
                                 -----------         -----------
                                  43,508,430          43,488,644
Less - accumulated depreciation  (26,775,996)        (26,361,987)
                                 -----------         -----------
                                  16,732,434          17,126,657
Cash and cash equivalents            152,824             119,481
Restricted cash                    1,905,634           1,639,334
Accounts and notes receivable        208,100             252,319
Other assets (net of
 accumulated amortization of
 $563,148 and $550,675)            1,628,491           1,709,045
                                 -----------         -----------
     Total                       $20,627,483         $20,846,836
                                 ===========         ===========


                   Liabilities and Partners' Equity

Liabilities:
 Debt obligations                $32,573,716         $32,608,543
 Accounts payable:
  Trade                            4,216,299           4,003,547
  Related parties                  2,941,639           3,008,831
 Interest payable                 14,272,685          13,968,150
 Accrued liabilities               1,762,711           1,735,498
 Tenant security deposits            320,807             323,436
                                 -----------         -----------
     Total liabilities            56,087,857          55,648,005
Partners' deficit                (35,460,374)        (34,801,169)
                                 -----------         -----------
     Total                       $20,627,483         $20,846,836
                                 ===========         ===========

The accompanying notes are an integral part of these financial statements.

<PAGE>


                   DIVERSIFIED HISTORIC INVESTORS II
                 (a Pennsylvania limited partnership)

                 CONSOLIDATED STATEMENTS OF OPERATIONS

                              (Unaudited)

                                        Three months ended
                                             March 31,
                                        2003          2002
                                        ----          ----

Revenues:
 Rental income                     $1,359,385    $1,324,402
 Hotel income                         321,940       400,542
 Other income                               0           600
 Interest income                        3,055         1,875
                                   ----------    ----------
     Total revenues                 1,684,380     1,727,419
                                   ----------    ----------
Costs and expenses:
 Rental operations                    520,745       493,777
 Hotel operations                     284,241       336,532
 Interest                           1,112,117     1,029,523
 Depreciation and amortization        426,482       437,965
                                   ----------    ----------
     Total costs and expenses       2,343,585     2,297,797
                                   ----------    ----------
Net loss                          ($  659,205)  ($  570,378)
                                   ==========    ==========

Net loss per limited
 partnership unit                 ($    31.69)  ($    27.42)
                                   ==========    ==========


The accompanying notes are an integral part of these financial statements.

<PAGE>


                   DIVERSIFIED HISTORIC INVESTORS II
                 (a Pennsylvania limited partnership)

                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                 -------------------------------------
                              (Unaudited)

                                               Three months ended
                                                    March 31,
                                               2003          2002
                                               ---           ----
Cash flows from operating activities:
 Net loss                                   ($659,205)   ($570,377)
Adjustments to reconcile net loss to
 net cash provided by operating activities:
 Depreciation and amortization                426,482      437,964
Changes in assets and liabilities:
 Increase in restricted cash                 (266,301)    (447,191)
 Decrease (increase) in accounts receivable    44,219      (55,403)
 Decrease in other assets                      68,082      754,423
 Increase in accounts payable - trade         212,752      115,498
 (Decrease) increase in accounts
  payable -  related parties                  (67,192)      93,081
 Increase (decrease) in interest payable      304,534     (446,887)
 Increase in accrued liabilities               27,213       41,278
 (Decrease) increase in tenant security
  deposits                                     (2,629)      16,649
                                             --------     --------
 Net cash provided by (used in)
  operating activities                         87,955      (60,965)
                                             --------     --------
Cash flow from investing activities:
 Capital expenditures                         (19,785)     (19,316)
                                             --------     --------
 Net cash used in investing activities        (19,785)     (19,316)
                                             --------     --------
Cash flows from financing activities:
 Principal payments under debt obligations    (34,827)     (31,605)
                                             --------     --------
 Net cash used in financing activities        (34,827)     (31,605)
                                             --------     --------
Increase (decrease) in cash and cash
 equivalents                                   33,343     (111,886)
Cash and cash equivalents at beginning
 of period                                    119,481      175,264
                                             --------     --------
Cash and cash equivalents at end of period   $152,824     $ 63,378
                                             ========     ========

The accompanying notes are an integral part of these financial statements.

<PAGE>

                   DIVERSIFIED HISTORIC INVESTORS II
                 (a Pennsylvania limited partnership)

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

The   unaudited  consolidated  financial  statements  of   Diversified
Historic  Investors II (the "Registrant") and related notes have  been
prepared  pursuant to the rules and regulations of the Securities  and
Exchange  Commission.  Accordingly, certain information  and  footnote
disclosures  normally  included in financial  statements  prepared  in
accordance  with  generally accepted accounting principles  have  been
omitted  pursuant  to  such rules and regulations.   The  accompanying
consolidated financial statements and related notes should be read  in
conjunction with the audited financial statements and notes thereto in
Form 10-K of the Registrant for the year ended December 31, 2002.

The  information furnished reflects, in the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary for  a
fair presentation of the results of the interim periods presented.


NOTE 2 - SUBSEQUENT EVENT

The  Registrant  has determined that it is insolvent because  (i)  the
amount  of its liabilities exceeds the fair market value of its assets
and  (ii)  it  is  unable  to  pay  its  debts  as  they  become  due.
Accordingly,  pursuant  to its partnership agreement,  Registrant  has
begun the process of dissolution. In connection therewith, on June 30,
2003,  the Registrant transferred its interest in Tindeco Wharf to  an
affiliate  of  the owner of the second mortgage loan  secured  by  the
property  of  Tindeco Wharf. At transfer, the liabilities  of  Tindeco
Wharf exceeded the value of Registrant's interest in Tindeco Wharf. In
exchange  for such interest, Registrant's cost of dissolution,  up  to
$100,000, will be paid by the holder of such second mortgage loan.


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

          (1)  Liquidity

              As  of  March 31, 2003, Registrant had cash of $152,824.
Cash  generated  from operations is used primarily to  fund  operating
expenses  and  debt service.  If cash flow proves to be  insufficient,
the  Registrant will attempt to negotiate loan modifications with  the
various  lenders  in order to remain current on all obligations.   The
Registrant is not aware of any additional sources of liquidity.

              As of March 31, 2003, Registrant had restricted cash  of
$1,905,634  consisting primarily of funds held as  security  deposits,
replacement  reserves  and  escrows for taxes  and  insurance.   As  a
consequence  of the restrictions as to use, Registrant does  not  deem
these funds to be a source of liquidity.

               In recent years the Registrant has realized significant
losses,  including  the  foreclosure of two  properties,  due  to  the
properties'  inability to generate sufficient cash flow to  pay  their
operating  expenses  and debt service. At the present  time,  the  two
remaining properties are able to pay their operating expenses and debt
service  but  it  is unlikely that any cash will be available  to  the
Registrant  to pay its general and administrative expenses.  Effective
March 22, 2001, Washington Square was foreclosed by the holder of  the
mortgage  and  a judgment. In the legal proceeding involving  Morrison
Clark,  if  Capital Bank executes its $1,800,000 judgment against  the
Registrant, it is expected to have a significant adverse impact on the
Registrant  since  there is insufficient available  cash  to  pay  the
judgment.   Any such execution could result in a forced  sale  of  the
Registrant's remaining properties.  See Part II.(1) Legal Proceedings.

                On  June  30,  2003,  the Registrant  transferred  its
interest  in Tindeco Wharf to an affiliate of the owner of the  second
mortgage loan secured by the property. At transfer, the liabilities of
Tindeco  Wharf exceeded the value of Registrant's interest in  Tindeco
Wharf.   In   exchange  for  such  interest,  Registrant's   cost   of
dissolution, up to $100,000, will be paid by the holder of such second
mortgage loan.

          (2)  Capital Resources

             Any capital expenditures needed are generally replacement
items  and  are  funded  out  of cash from operations  or  replacement
reserves,  if  any.  The Registrant is not aware of any factors  which
would cause historical capital expenditure levels not to be indicative
of  capital  requirements  in the future  and  accordingly,  does  not
believe  that  it  will have to commit material resources  to  capital
investment for the foreseeable future.

          (3)  Results of Operations

              During the first quarter of 2003, Registrant incurred  a
net loss of $659,205 ($31.69 per limited partnership unit) compared to
a  net loss of $570,377 ($27.42 per limited partnership unit) for  the
same period in 2002.

              Rental income increased $34,983 from $1,324,402  in  the
first  quarter of 2002 to $1,359,385 in the same period in  2003.  The
increase  in  rental income is due to an increase  in  average  rental
rates for commercial tenants at Tindeco Wharf.

             Hotel income decreased $78,602 from $400,542 in the first
quarter  of 2002 to $321,940 in the same period in 2003.  The decrease
in hotel income is due to a decrease in average occupancy (68% to 54%)
at the River Street Inn/Factors Walk.

             Interest income increased $1,180 from $1,875 in the first
quarter of 2002 to $3,055 in the same period in 2003. The increase  in
interest  income  is due to an increase in invested cash  balances  at
Tindeco Wharf.

              Rental  operations  expense increased  by  $26,968  from
$493,777  in the first quarter of 2002 to $520,745 in the same  period
of  2003.  The  increase in rental operations expense  is  due  to  an
increase  in  utilities, wages and salaries expense and  miscellaneous
operating expense at Tindeco Wharf. The increase in utilities  expense
is  due  to  an increase in electric and gas charges. The increase  in
wages and salaries expense is due to an increase in managers' salaries
and janitorial wages. The increase in miscellaneous operating expenses
is due to an increase in office expense and furniture rentals.

              Hotel  operations expense decreased $52,291 from 336,532
in  the first quarter of 2002 to $284,241 in the same period of  2003.
The  decrease  in hotel operations expense is due to the  decrease  in
room  expense and maintenance expense, partially offset by an increase
in  utilities expense at Factors Walk. The decrease in room expense is
due to a decrease in room cleaning supplies and guest supplies due  to
the decrease in average occupancy. The decrease in maintenance expense
is  due  to  a  decrease in maintenance contracts and  electrical  and
mechanical expenses.  The increase in utilities expense is due  to  an
increase in electric and gas charges.

             Interest expense increased $82,594 from $1,029,523 in the
first  quarter of 2002 to $1,112,117 in the same period in  2003.  The
increase  in  interest expense is due to an increase in the  principal
balance upon which interest is calculated at Factors Walk.

              Losses incurred during the first quarter of 2003 at  the
Registrant's  properties were approximately $566,000. Losses  incurred
during  the  first quarter of 2002 at the Registrant's two  properties
were approximately $473,000.

              In the first quarter of 2003, Registrant incurred a loss
of  $280,000  at Tindeco Wharf including $317,000 of depreciation  and
amortization  expense,  compared to a loss of $232,000  in  the  first
quarter  of  2002, including $319,000 of depreciation and amortization
expense.  The increase in loss from the first quarter of 2002  to  the
same  period  in  2003 is due to an increase in utilities,  wages  and
salaries and miscellaneous operating expense, partially offset  by  an
increase in rental income.  The increase in utilities expense  is  due
to  an increase in electricity and gas charges.  The increase in wages
and  salaries expense is due to an increase in managers' salaries  and
janitorial wages. The increase in miscellaneous operating expenses  is
due  to  an  increase  in office expense and furniture  rentals.   The
increase  in  rental income is due to an increase  in  average  rental
rates for commercial tenants.

             On June 30, 2003, the Registrant transferred its interest
in  Tindeco Wharf to an affiliate of the owner of the second  mortgage
loan  secured by the property. At transfer, the liabilities of Tindeco
Wharf exceeded the value of Registrant's interest in Tindeco Wharf. In
exchange  for such interest, Registrant's cost of dissolution,  up  to
$100,000, will be paid by the holder of such second mortgage loan.

              In the first quarter of 2003, Registrant incurred a loss
of  $286,000 at The River Street Inn/Factor's Walk including  $106,000
of  depreciation  and  amortization expense, compared  to  a  loss  of
$241,000  including $105,000 of depreciation and amortization  expense
in  the first quarter of 2002. The increase in the loss from the first
quarter  of  2002 to the same period in 2003 is due to a  decrease  in
hotel income and an increase in utilities expense, partially offset by
a  decrease  in room expense and maintenance expense. The decrease  in
hotel  income is due to a decrease in average occupancy (68% to  54%).
The  increase in utilities expense is due to an increase  in  electric
and gas charges. The decrease in room expense is due to a decrease  in
room  cleaning  supplies and guest supplies due  to  the  decrease  in
average  occupancy. The decrease in maintenance expense is  due  to  a
decrease  in  maintenance  contracts  and  electrical  and  mechanical
expenses.

Item 3.   Quantitative and Qualitative Disclosures
          About Market Risk

             All of our assets and liabilities are denominated in U.S.
dollars, and as a result, we do not have exposure to currency exchange
risks.

              We  do not engage in any interest rate, foreign currency
exchange  rate  or  commodity price-hedging  transactions,  and  as  a
result, we do not have exposure to derivatives risk.

Item 4.   Controls and Procedures

              We  maintain disclosure controls and procedures that are
designed  to ensure that information required to be disclosed  in  our
Securities  Exchange  Act  of  1934 reports  is  recorded,  processed,
summarized and reported within the time periods specified in the SEC's
rules  and  forms,  and  that  such  information  is  accumulated  and
communicated  to  our  management, including  our  managing  partner's
principal  executive  officer  and  principal  financial  officer,  as
appropriate, to allow timely decisions regarding required  disclosure.
In  designing  and evaluating the disclosure controls and  procedures,
our  management recognized that any controls and procedures, no matter
how  well designed and operated, can provide only reasonable assurance
of  achieving  the  desired  control objectives,  and  our  management
necessarily was required to apply its judgment in evaluating the cost-
benefit relationship of possible controls and procedures.

             Under the supervision of our managing partner's principal
executive officer and principal financial officer we have carried  out
an  evaluation of the effectiveness of our adopted disclosure controls
and  procedures  as of the end of the period covered by  this  report.
Based  upon  that  evaluation, our managing  partner's  president  and
treasurer  concluded that our disclosure controls and  procedures  are
effective.

              There  have been no significant changes in our  internal
controls over financial reporting that has materially affected, or  is
reasonably  likely  to  materially affect, our internal  control  over
financial reporting during our most recent fiscal quarter.

<PAGE>

                      PART II - OTHER INFORMATION

Item 1.   Legal Proceedings

              In  May  1992, a partnership 69% owned by the Registrant
filed  a  reorganization petition pursuant to Chapter 11 of  the  U.S.
Bankruptcy Code in order to forestall foreclosure by a lender  on  the
property  owned by it.  In addition, the lender filed a claim  against
the  Registrant on its guaranty of payment of the partnership's  debt.
In February 1993, the lender, with permission of the bankruptcy court,
foreclosed  on the property.  In November 1993, the lender obtained  a
judgment  in the matter of Capital Bank, N.A. v. Diversified  Historic
Investors II in the amount of $1,800,000.  The judgement has not  been
executed by the lender.

Item 4.   Submission of Matters to a Vote of Security Holders

              No  matter  was submitted during the quarter covered  by
this report to a vote of security holders.

Item 6.   Exhibits and Reports on Form 8-K

      (a) Exhibit Number        Document
          --------------        --------
              3                 Registrant's    Amended     and
                                Restated Certificate of Limited
                                Partnership  and  Agreement  of
                                Limited Partnership, previously
                                filed as part of Amendment  No.
                                2  of Registrant's Registration
                                Statement  on  Form  S-11,  are
                                incorporated     herein      by
                                reference.

            21                  Subsidiaries of the  Registrant
                                are    listed   in   Item    2.
                                Properties   on   Form    10-K,
                                previously      filed       and
                                incorporated     herein      by
                                reference.

            31                  General     Partners    Opinion
                                Certification

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

       (b) Reports on Form 8-K:

            No  reports  were  filed on Form 8-K  during  the  quarter
            ended March 31, 2003.


<PAGE>

                              SIGNATURES

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

                    DIVERSIFIED HISTORIC INVESTORS II

                           By: Dover Historic Advisors, its general
                               partner

                               By: EPK, Inc., managing partner


Date: August 12, 2004              By: /s/ Spencer Wertheimer
      ---------------                  ----------------------
                                       SPENCER WERTHEIMER
                                       President (principal executive
                                       officer, principal financial
                                       officer)


<PAGE>
                                                            Exhibit 31



                             CERTIFICATION

  I, Spencer Wertheimer, certify that:

1.  I  have  reviewed  this quarterly report  on  Form  10-Q  for  the
 quarterly  period  ended  March  31,  2003  of  Diversified  Historic
 Investors II;

2.      Based on my knowledge, this 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 report;

3.      Based  on  my knowledge, the financial statements,  and  other
 financial information included in this 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 report;

4.  I  am  responsible  for  establishing and  maintaining  disclosure
 controls  and procedures (as defined in Exchange Act Rules  13a-15(e)
 and  15d-15(e))  [Omission in accordance with SEC  Release  Nos.  33-
 8238,  34-47986  and IC-26068 (June 5, 2003)] for the registrant  and
 have:

  (a)     Designed such disclosure controls and procedures, or  caused
    such  disclosure controls and procedures to be designed  under  my
    supervision, to ensure that material information relating  to  the
    registrant,  including  its  consolidated  subsidiaries,  is  made
    known  to me by others within those entities, particularly  during
    the period in which this report is being prepared;

  (b)     [Omitted  in accordance with SEC Release Nos.  33-8238,  34-
    47986 and IC-26068 (June 5, 2003)];

  (c)     Evaluated  the effectiveness of the registrant's  disclosure
    controls   and  procedures  and  presented  in  this   report   my
    conclusions  about  the effectiveness of the  disclosure  controls
    and  procedures,  as  of  the end of the period  covered  by  this
    report based on such evaluation; and

  (d)     Disclosed  in  this  report any change in  the  registrant's
    internal  control  over financial reporting that  occurred  during
    the  registrant's  most  recent fiscal quarter  (the  registrant's
    fourth  fiscal quarter in the case of an annual report)  that  has
    materially   affected,  or  is  reasonably  likely  to  materially
    affect,   the   registrant's  internal  control   over   financial
    reporting; and

5.      I  have  disclosed,  based  on my most  recent  evaluation  of
 internal  control  over  financial  reporting,  to  the  registrant's
 auditors  and  the  audit  committee of  the  registrant's  board  of
 directors (or persons performing the equivalent functions):

  (a)     All significant deficiencies and material weaknesses in  the
    design  or  operation of internal control over financial reporting
    which  are  reasonably likely to adversely affect the registrant's
    ability   to  record,  process,  summarize  and  report  financial
    information; and

  (b)     Any fraud, whether or not material, that involves management
    or   other   employees  who  have  a  significant  role   in   the
    registrant's internal control over financial reporting.



Date: August 12, 2004                          /s/ Spencer Wertheimer
      ---------------                          ----------------------
                                        Name:  Spencer Wertheimer
                                       Title:  President (principal
                                                executive officer,
                                                principal financial
                                                officer) of the
                                                registrant's managing
                                                partner, EPK, Inc.

<PAGE>





                                                            Exhibit 32

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

  In  connection  with  the Quarterly Report of  Diversified  Historic
Investors  II  on Form 10-Q for the quarterly period ended  March  31,
2003  as filed with the Securities and Exchange Commission on the date
hereof  (the "Report"), I, Spencer Wertheimer, President and Treasurer
of  the Company's managing partner, EPK, Inc., certify, pursuant to 18
U.S.C.  Section  1350,  as adopted pursuant  to  Section  906  of  the
Sarbanes-Oxley Act of 2002, that:

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

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


Date: August 12, 2004                          /s/ Spencer Wertheimer
      ---------------                          ----------------------
                                        Name:  Spencer Wertheimer
                                       Title:  President (principal
                                                executive officer,
                                                principal financial
                                                officer) of the
                                                registrant's managing
                                                partner, EPK, Inc.

<PAGE>