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        June 30, 2000
                               ----------------------------------

                               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.

        Consolidated Balance Sheets - June 30, 2000 (unaudited)
        and December 31, 1999
        Consolidated Statements of Operations - Three Months and
        Six Months Ended June 30, 2000 and 1999 (unaudited)
        Consolidated Statements of Cash Flows - Six Months Ended
        June 30, 2000 and 1999 (unaudited)
        Notes to Consolidated Financial Statements (unaudited)

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

          (1)  Liquidity

             As of June 30, 2000, Registrant had cash of $59,017.
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 June 30, 2000, Registrant had restricted cash
of  $2,421,296  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.  Washington Square was foreclosed  upon
by  the  mortgagor on March 22, 2001 by recordation of a deed  in
lieu  of foreclosure.  In the legal proceeding involving Morrison
Clark  Inn,  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. Item 1.  Legal Proceedings.

             It is the Registrant's intention to continue to hold
the  remaining properties until they can no longer meet the  debt
service  requirements  (or,  as  described  above,  Capital  Bank
executes its judgment against the Registrant), and the properties
are  foreclosed, or the market value of the properties  increases
to  a point where they can be sold at a price which is sufficient
to  repay  the  underlying indebtedness (principal  plus  accrued
interest).
          (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  second  quarter  of  2000,  Registrant
incurred  a  net loss of $370,144 ($17.79 per limited partnership
unit)  compared  to  a net loss of $643,008 ($30.91  per  limited
partnership unit) for the same period in 1999.  For the first six
months  of 2000, the Registrant incurred a net loss of $1,123,042
($53.99  per limited partnership unit) compared to a net loss  of
$1,472,693  ($70.80 per limited partnership unit)  for  the  same
period in 1999.

              Rental income increased $194,745 from $1,224,300 in
the  second quarter of 1999 to $1,419,045 in the same  period  in
2000  and  increased $265,483 from $2,414,963 for the  first  six
months  of  1999 to $2,680,446 in the same period on  2000.   The
increase  in  rental income for both the second quarter  and  the
first six months of 2000 as compared to the same periods in  1999
is  the  result of an increase in rental income at Tindeco Wharf,
The  River Street Inn/Factor's Walk, and Washington Square.   The
increase  at  Tindeco Wharf and Washington Square is  due  to  an
increase  in the average residential rental rates.  The  increase
at  The  River Street Inn/Factor's Walk is due to an increase  in
average commercial rental rates.

              Hotel income decreased $33,125 from $410,000 in the
second quarter of 1999 to $376,875 in the same period in 2000 and
decreased $113,198 from $793,359 for the first six months of 1999
to  $680,161 for the same period in 2000.  The decrease in  hotel
income  for both the second quarter and the first six  months  of
2000  as  compared to the same periods in 1999 is the  result  of
decreases  in  average room rates and average  occupancy  at  The
River  Street  Inn/Factor's Walk.  Average room  rates  decreased
from  $135 to $131 for the second quarter and from $128  to  $125
for the first six months.  Average occupancy rates decreased from
74%  to  70% for the second quarter and from 75% to 63%  for  the
first six months.

             Rental operations expense increased by $115,466 from
$508,156  in the second quarter of 1999 to $623,622 in  the  same
period  in  2000 and increased $110,880 from $1,042,762  for  the
first  six  months of 1999 to $1,153,642 for the same  period  in
2000.   The increase in rental operations for the second  quarter
and  the  first  six  months  of  2000  is  due  an  increase  in
maintenance  expense  at  Tindeco  Wharf.   Maintenance   expense
increased  at  Tindeco Wharf due to planned  maintenance  at  the
property including roof repairs, electrical and plumbing repairs,
and painting.

              Hotel  operations  expense increased  $27,538  from
$255,695  in the second quarter of 1999 to $283,233 in  the  same
period  in 2000.  The increase in hotel operations is due  to  an
increase  in maintenance expense as a result of general  building
repairs  such  as  elevator  repairs, painting,  and  heating/air
conditioning repairs at the River Street Inn/Factor's Walk.

              Hotel  operations  expense decreased  $72,696  from
$617,023  for  the first six months of 1999 to $544,327  for  the
same period in 2000.  The decrease in hotel operations expense at
The River Street Inn/Factor's Walk was due to an overall decrease
in hotel occupancy from the first six months of 1999 to 2000 (75%
to 63%).

              Interest expense decreased $256,639 from $1,027,712
in  the second quarter of 1999 to $771,073 in the same period  in
2000,  and  decreased $238,699 from $2,048,470 for the first  six
months  of  1999 to $1,809,771 for the same period in 2000.   The
decrease  from  the second quarter and first six months  of  1999
compared to the same periods in 2000 is due to a decrease in  the
principal  balance upon which interest is calculated  at  Tindeco
Wharf, partially offset by an increase in interest expense at The
River  Street Inn/Factor's Walk and Washington Square due  to  an
increase in the principal balance upon which interest is accrued.

               Losses   incurred  during  the  quarter   at   the
Registrant's   three  properties  were  approximately   $229,000,
compared to a loss of approximately $518,000 for the same  period
in  1999.   For  the  first six months of 2000, the  Registrant's
three  properties  recognized a loss  of  approximately  $845,000
compared to approximately $1,216,000 for the same period in 1999.

             In the second quarter of 2000, Registrant incurred a
loss   of   $64,000  at  Tindeco  Wharf  including  $298,000   of
depreciation  and amortization expense, compared  to  a  loss  of
$390,000  in  the second quarter of 1999, including  $306,000  of
depreciation  and  amortization expense and, for  the  first  six
months of 2000, incurred a loss of $411,000 including $596,000 of
depreciation  and amortization expense, compared  to  a  loss  of
$822,000  for  the  same  period in 1999, including  $613,000  of
depreciation and amortization expense.  The decreased  loss  from
the  second quarter and the first six months of 1999 to the  same
periods  in  2000 is the result of an increase in  rental  income
combined  with  a decrease in interest and depreciation  expense,
partially  offset  by  an increase in maintenance  expense.   The
increase  in  rental  income is due to  an  increase  in  average
residential rental rates.  Interest expense decreased due to  the
decrease in the principal balance upon which interest is accrued.
Depreciation and amortization expense decreased as  a  result  of
fully amortized leasing commissions.  The increase in maintenance
expense  is  due to planned maintenance at the property  such  as
roof repairs, electrical and plumbing repairs, and painting.

             In the second quarter of 2000, Registrant incurred a
loss  of $146,000 at The River Street Inn/Factor's Walk including
$99,000  of depreciation expense, compared to a loss of  $123,000
including  $93,000 of depreciation expense in the second  quarter
of  1999.   The increase in the loss from the second  quarter  of
1999  to the same period in 2000 is the result of an increase  in
interest  expense  combined  with a  decrease  in  hotel  income,
partially  offset by an increase in rental income.  The  increase
in  interest  expense  is  due to an increase  in  the  principal
balance  upon which interest is accrued.  Hotel income  decreased
due  to  a  decrease in average occupancy (74% to  70%).   Rental
income  increased  due to an increase average  commercial  rental
rates.

              For  the  first  six  months  of  2000,  Registrant
incurred a loss of $406,000 at The River Street Inn/Factor's Walk
including $198,000 of depreciation expense, compared to a loss of
$378,000  for  the  same  period in 1999, including  $184,000  of
depreciation  expense.  The increase in the loss from  the  first
six months of 1999 to the same period in 2000 is the result of an
increase in maintenance, interest and depreciation expenses and a
decrease  in  hotel revenue partially offset by  an  increase  in
rental income.  The increase in maintenance expense is due to  an
increase  in  general building repairs such as elevator  repairs,
painting, and heating/air conditioning repairs.  Interest expense
increased due to an increase in the principal balance upon  which
interest is accrued.  Depreciation expense increased due  to  the
depreciation  of fixed asset additions.  Hotel revenue  decreased
due  to a decrease in both the average occupancy (75% to 63%) and
average  nightly  room  rate  ($128  to  $125).   Rental   income
increased due to an increase in average commercial rental rates.

             In the second quarter of 2000, Registrant incurred a
loss  of  $19,000  at  Washington Square,  including  $31,000  of
depreciation  expense,  compared to a loss  of  $5,000  including
$30,000  of  depreciation expense in the second quarter  of  1999
and, for the first six months of 1999, incurred a loss of $28,000
including $62,000 of depreciation expense, compared to a loss  of
$16,000  for  the  same  period in  1999,  including  $60,000  of
depreciation expense.  The increase in the loss from  the  second
quarter  and the first six months of 1999 to the same periods  in
2000  is due to an increase in interest expense partially  offset
by  an increase in rental income.  Interest expense increased due
to  an  increase in the principal balance from which interest  is
accrued.   Rental income increased due to an increase in  average
rental  rates.   Washington Square was  foreclosed  upon  by  the
mortgagor on March 22, 2001 by recordation of a deed in  lieu  of
foreclosure.

<PAGE>

                DIVERSIFIED HISTORIC INVESTORS II
              (a Pennsylvania limited partnership)

                   CONSOLIDATED BALANCE SHEETS


                             Assets

                              June 30, 2000    December 31, 1999
                              -------------    -----------------
                               (Unaudited)
Rental properties, at cost:
 Land                          $   934,582          $   934,582
 Buildings and improvements     41,139,001           41,139,001
 Furniture and fixtures          3,324,505            3,324,505
                               -----------          -----------
                                45,398,088           45,398,088
Less - accumulated
 depreciation                  (23,833,141)         (22,962,044)
                               -----------          -----------
                                21,564,947           22,436,044
Cash and cash equivalents           59,017               38,110
Restricted cash                  2,421,296            1,508,524
Accounts and notes receivable      161,868              133,272
Other assets (net of
 amortization of $409,849 and
 $398,407)                       1,788,355            1,764,850
                               -----------          -----------
     Total                     $25,995,483          $25,880,800
                               ===========          ===========

                Liabilities and Partners' Equity

Liabilities:
 Debt obligations              $33,254,281          $33,306,221
 Accounts payable:
  Trade                          3,754,504            3,241,235
  Related parties                3,091,835            2,963,434
 Interest payable               13,053,763           12,453,362
 Accrued liabilities             1,534,701            1,499,221
 Tenant security deposits          262,053              249,938
                               -----------          -----------
     Total liabilities          54,951,137           53,713,411
Partners' deficit              (28,955,654)         (27,832,611)
                               -----------          -----------
     Total                     $25,995,483          $25,880,800
                               ===========          ===========

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              Six months
                           ended June 30,           ended June 30,
                          2000        1999         2000        1999
                          ----        ----         ----        ----
Revenues:
 Rental income       $1,419,045   $1,224,300   $2,680,446  $2,414,963
 Hotel income           376,875      410,000      680,161     793,359
 Interest income          2,633        5,547        5,630       9,824
                     ----------   ----------   ----------  ----------
  Total revenues      1,798,553    1,639,847    3,366,237   3,218,146
                     ----------   ----------   ----------  ----------
Costs and expenses:
 Rental operations      623,622      508,156    1,153,642   1,042,762
 Hotel operations       283,233      255,695      544,327     617,023
 General and
  administrative         49,500       49,500       99,000      99,000
 Interest               771,073    1,027,712    1,809,771   2,048,470
 Depreciation and
  amortization          441,269      441,792      882,539     883,584
                     ----------   ----------   ----------  ----------
  Total costs and
   expenses           2,168,697    2,282,855    4,489,279   4,690,839
                     ----------   ----------   ----------  ----------
Net loss            ($  370,144) ($  643,008) ($1,123,042)($1,472,693)
                     ==========   ==========   ==========  ==========
Net loss per limited
 partnership unit   ($    17.79) ($    30.91) ($    53.99)($    70.80)
                     ==========   ==========   ==========  ==========

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)

                                              Six months ended
                                                  June 30,
                                             2000          1999
                                             ----          ----
Cash flows from operating activities:
 Net loss                               ($1,123,042)  ($1,472,693)
Adjustments to reconcile net loss to
 net cash provided by operating
 activities:
 Depreciation and amortization              882,539       883,584
Changes in assets and liabilities:
 Increase in restricted cash               (912,772)     (181,338)
 Increase in accounts receivable            (28,596)      (55,919)
 (Increase) decrease in other assets        (34,947)      254,500
 Increase in accounts payable - trade       513,270       256,582
 Increase in accounts payable -             128,399        52,245
  related parties
 Increase in interest payable               600,401       241,472
 Increase in accrued liabilities             35,480       125,663
 Increase in tenant security deposits        12,115           624
                                        -----------   -----------
 Net cash provided by operating
activities                                   72,847       104,720
                                        -----------   -----------
Cash flows from investing activities:
 Capital expenditures                             0      (113,627)
                                        -----------   -----------
Net cash used in investing activities             0      (113,627)
                                        -----------   -----------
Cash flows from financing activities:
 Borrowings under debt obligations          185,750       120,953
 Principal payments under debt
  obligations                              (237,690)     (168,427)
                                        -----------   -----------
 Net cash used in financing activities      (51,940)      (47,474)
                                        -----------   -----------
Increase (decrease) in cash and cash
 equivalents                                 20,907       (56,381)
Cash and cash equivalents at beginning
 of period                                   38,110       219,254
                                        -----------   -----------
Cash and cash equivalents at end of
 period                                 $    59,017   $   162,873
                                        ===========   ===========

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, 1999.

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

Washington Square was foreclosed upon by the mortgagor  on  March
22, 2001 by recordation of a deed in lieu of foreclosure.

<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.  This 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.

            (b) Reports on Form 8-K:

            No  reports were filed on Form 8-K during the quarter
            ended June 30, 2000.
<PAGE>


                           SIGNATURES

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

Date: October 23, 2001     DIVERSIFIED HISTORIC INVESTORS II
      ----------------
                           By: Dover Historic Advisors,
                               General Partner

                               By: EPK, Inc., Partner

                                   By: /s/Spencer Wertheimer
                                       ---------------------
                                      SPENCER WERTHEIMER,
                                      President and Treasurer

<PAGE>