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

                                   Form 10-QSB

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

                For the quarterly period ended March 31, 2005


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


             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)


Check  whether the issuer (i) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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 ___


                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS


                 NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
                                  Balance Sheet
                                   (Unaudited)
                        (in thousands, except unit data)

                                 March 31, 2005

<TABLE>
<CAPTION>


ASSETS
<S>                                                                         <C>
   Cash and cash equivalents                                                $ 128
   Receivables - limited partners                                              207
   Investments in and advances to Local Limited
      Partnerships (Note 2)                                                     --
                                                                            $ 335
LIABILITIES AND PARTNERS' CAPITAL (DEFICIENCY)
Liabilities
   Administrative and reporting fees payable to
      General Partner (Note 3)                                              $ 450

Partners' capital (deficiency)
   General Partner -- The National Housing
      Partnership (NHP)                                       $ 641
   Original Limited Partner -- 1133 Fifteenth
      Street Two Associates                                     (169)
   Other Limited Partners -- 17,074 investment
      units                                                     (587)         (115)
                                                                            $ 335

                See Accompanying Notes to Financial Statements
</TABLE>



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


<TABLE>
<CAPTION>

                                                                  Three Months Ended
                                                                       March 31,
                                                                   2005         2004
REVENUES:
<S>                                                      <C>       <C>          <C>
  Share of profits from Local Limited Partnerships (Note 2)        $ 68         $ --

COSTS AND EXPENSES:
  Administrative and reporting fees to General Partner                 2            3
  Other operating expenses                                             5            8
                                                                       7           11

Income (loss) from partnership operations                             61          (11)
Distributions in excess of investment in Local Limited
  Partnerships (Note 2)                                                7            1

NET INCOME (LOSS)                                                 $   68        $ (10)

ALLOCATION OF NET INCOME (LOSS):
  General Partner - NHP                                             $ 1         $ --
  Original Limited Partner - 1133 Fifteenth Street Two
    Associates                                                         1           --
  Other limited partners                                              66          (10)

                                                                  $   68        $ (10)

NET INCOME (LOSS) PER OTHER LIMITED PARTNERSHIP UNIT              $ 3.81       $(0.56)

                See Accompanying Notes to Financial Statements
</TABLE>



                 NATIONAL HOUSING PARTNERSHIP REALTY FUND TWO
            Statement of Changes in Partners' Capital (Deficiency)
                                   (Unaudited)
                        (in thousands, except unit data)

<TABLE>
<CAPTION>


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

Partners' capital (deficiency)
<S>           <C> <C>                  <C>          <C>         <C>          <C>
  at December 31, 2004                 $ 640        $ (170)     $ (653)      $ (183)

Net income - three months ended
  March 31, 2005                            1            1          66           68

Partners' capital (deficiency)
  at March 31, 2005                    $ 641        $ (169)     $ (587)      $ (115)

Percentage interest at
  March 31, 2005                          1%           1%           98%         100%
                                          (A)          (B)          (C)


(A)   General Partner

(B)   Original Limited Partner

(C)   Consists  of  17,074  investment  units  at  March  31,  2005  and  17,339
      investment  units at December 31, 2004 (see "Note 4" in Notes to Financial
      Statements; "Abandonment of Limited Partnership Units).

                See Accompanying Notes to Financial Statements
</TABLE>



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

<TABLE>
<CAPTION>

                                                                    Three Months Ended March 31,
                                                                       2005            2004
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                    <C>             <C>
  Operating expenses paid                                              $ (9)           $ --
  Payment of non-resident income tax withholding to the
   state of Colorado on behalf of limited partners                         (5)            --
  Reimbursement by limited partners of non-resident income
   tax withholding paid by the Partnership to the state of
     North Carolina on behalf of limited partners                          --              7
        Net cash (used in) provided by operating activities               (14)             7

CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:
  Distributions from Local Limited Partnerships                           125              1

NET INCREASE IN CASH AND CASH EQUIVALENTS                                 111              8

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                           17             53

CASH AND CASH EQUIVALENTS AT END OF PERIOD                             $ 128           $ 61

RECONCILIATION  OF NET INCOME (LOSS) TO NET CASH (USED IN) PROVIDED
 BY OPERATING  ACTIVITIES:
   Net income (loss)                                                   $ 68           $ (10)
   Adjustments to reconcile net income (loss) to net cash
     (used in) provided by operating activities:
      Share of profits from Local Limited Partnerships                    (68)            --
      Reimbursement by limited partners of non-resident
        income tax withholding paid by the Partnership to the
         state of North Carolina on behalf of limited partners             --              7
      Payment of non-resident income tax withholding to the
         state of Colorado on behalf of limited partners                   (5)            --
      Distributions in excess of investment in Local Limited
        Partnerships                                                       (7)            (1)
      Changes in operating assets and liabilities:
        Increase in administrative and reporting
          fees payable                                                      2              3
        (Decrease) increase in other accrued expenses                      (4)             8
        Total adjustments                                                 (82)            17

Net cash (used in) provided by operating activities                    $ (14)          $ 7

                See Accompanying Notes to Financial Statements
</TABLE>



                 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  month  period  ended  March 31, 2005 are not  necessarily
indicative of the results that may be expected for the year ending  December 31,
2005.  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, 2004.

FSAB Interpretation No. 46

As of December 31, 2004,  the  Partnership  adopted FASB  Interpretation  No. 46
"Consolidation  of  Variable  Interest  Entities"  (or "FIN 46") and applied its
requirements to all Local Limited  Partnerships in which the Partnership  held a
variable interest. FIN 46 addresses the consolidation by business enterprises of
variable interest entities. Generally, a variable interest entity, or VIE, is an
entity with one or more of the following  characteristics:  (a) the total equity
investment  at risk is not  sufficient  to  permit  the  entity to  finance  its
activities without additional subordinated financial support; (b) as a group the
holders of the equity  investment at risk lack (i) the ability to make decisions
about  an  entity's  activities  through  voting  or  similar  rights,  (ii) the
obligation  to absorb the expected  losses of the entity,  or (iii) the right to
receive the expected residual returns of the entity; or (c) the equity investors
have voting rights that are not  proportional  to their  economic  interests and
substantially all of the entity's activities either involve, or are conducted on
behalf of, an investor that has  disproportionately  few voting  rights.  FIN 46
requires a VIE to be consolidated in the financial statements of the entity that
is determined to be the primary beneficiary of the VIE. Upon adoption of FIN 46,
the Partnership  determined that its Local Limited  Partnership in which it held
an investment was not a VIE, and this  determination  still applies at March 31,
2005.

(2) INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIP

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 March 31, 2005,  the  Partnership  continues to hold an interest in two Local
Limited  Partnerships:  San Juan del Centro Limited Partnership and Harold House
Limited Partnership. On November 22, 2004, Harold House Limited Partnership sold
its investment  property to a third party for  approximately  $2,220,000.  After
paying  closing  costs,  the net  proceeds  were  used  to  repay  the  mortgage
encumbering the property,  the deferred  acquisition  note and accrued  interest
thereon, which a third party held, and other liabilities of the property and the
Local  Limited  Partnership.  During the three months ended March 31, 2005,  the
Partnership received a distribution of approximately $125,000. It is anticipated
that the Local Limited  Partnership  will be  completely  liquidated by June 30,
2005.

San Juan Del Centro  Limited  Partnership  has a note which was  executed by the
Local  Limited  Partnership  with the seller as part of the  acquisition  of the
property  by the  Local  Limited  Partnership.  The note is a  nonrecourse  note
secured  by a  security  interest  in the  Partnership's  interest  in the Local
Limited  Partnership and is subordinated to the respective  mortgage note on the
property  for as long as the  mortgage  note is insured by HUD. Any payments due
from  project  income  are  payable  from  surplus  cash,  as defined by the HUD
Regulatory  Agreement.  Neither the Local Limited  Partnership  nor any partners
thereof,  present or future assume any personal liability for the payment of the
note.  The note was due December 20, 1999.  The note is in default and the Local
Limited Partnership interest is subject to potential  foreclosure.  Continuation
of the Local Limited  Partnership's  operations in the present form is dependent
on its ability to extend the maturity date of the  respective  note, or to repay
or refinance the note. 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 this
uncertainty.  On February 14, 2005 the Local Limited  Partnership entered into a
contract,  with an affiliated party, to sell its investment property during 2005
for a purchase price of $7,000,000.

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 the Local  Limited  Partnership  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  $25,000 and $32,000 of losses
from San Juan del Centro  Partnership  during the three  months  ended March 31,
2005 and 2004,  respectively.  As of March 31,  2005,  the  Partnership  has not
recognized  approximately $1,552,000 of its allocated cumulative share of losses
from San Juan del Centro Partnership in which its investment has been reduced to
zero. During the three months ended March 31, 2005, the  Partnership's  share of
profits from Harold House Limited  Partnership was approximately  $68,000.  Such
profits are the result of the  reversal of an accrual of  approximately  $72,000
established  upon the sale of Harold  House due to actual  costs being less than
expected.  During the three months ended March 31, 2004, the Partnership did not
recognize  approximately  $6,000 of losses from Harold House Limited Partnership
as the Partnership  had no investment in the Local Limited  Partnership at March
31, 2004.

The  following  are unaudited  combined  statements of operations  for the three
months ended March 31, 2005 and 2004 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.  The
condensed  combined statement of operations for March 31, 2004 has been restated
to reflect the  operations of Harold House Limited  Partnership,  which was sold
during 2004, as discontinued operations.

                        COMBINED STATEMENTS OF OPERATIONS

                                                  Three Months Ended
                                                      March 31,
                                                 2005             2004
                                                               (Restated)
                                                    (in thousands)
Rental income                                    $ 202           $ 195
Other income                                        51               42
   Total revenue                                   253              237

Operating expenses                                 152              143
Interest, taxes and insurance                       71               74
Depreciation                                        56               52
   Total expense                                   279              269

Net loss before discontinued operations            (26)             (32)
Loss from discontinued operations                   --               (7)
Gain on sale of discontinued operations             72               --
Net income (loss)                                $ 46            $ (39)

National Housing Partnership Realty
  Fund Two share of net income (loss)            $ 43            $ (38)

(3) TRANSACTIONS WITH THE GENERAL PARTNER

During the three month  periods ended March 31, 2005 and 2004,  the  Partnership
accrued  administrative and reporting fees payable to the General Partner in the
amount of approximately $2,000 and $3,000 respectively, for services provided to
the  Partnership.  The  amount  of  fees  due  to  the  General  Partner  by the
Partnership  was  approximately  $450,000 at March 31, 2005. If paid at all, 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 the  underlying
property of the  remaining  Local  Limited  Partnership.  No payments  were made
during the three months ended March 31, 2005.

(4) ABANDONMENT OF LIMITED PARTNERSHIP UNITS

During  the three  months  ended  March 31,  2005 and 2004 the number of limited
partnership units decreased by 265 and 384 units,  respectively,  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  or  17,339  and  17,723  units  for  2005  and  2004,
respectively.

(5)   CONTINGENCIES

The  Partnership  is unaware of any pending or  outstanding  litigation  matters
involving  it or  the  underlying  investment  property  of  the  Local  Limited
Partnerships in which the  Partnership  invests that are not of a routine nature
arising in the ordinary course of business.

SEC Investigation

The  Central  Regional  Office of the  United  States  Securities  and  Exchange
Commission (the "SEC") is conducting a formal investigation  relating to certain
matters.  Although  the staff of the SEC is not limited in the areas that it may
investigate,   AIMCO  believes  the  areas  of  investigation   include  AIMCO's
miscalculated   monthly  net  rental  income  figures  in  third  quarter  2003,
forecasted  guidance,  accounts  payable,  rent  concessions,   vendor  rebates,
capitalization of payroll and certain other costs, and tax credit  transactions.
At the end of the first quarter of 2005, the SEC added certain tender offers for
limited partnership interests as an area of investigation.  AIMCO is cooperating
fully.  AIMCO is not able to predict  when the  investigation  will be resolved.
AIMCO does not believe  that the ultimate  outcome will have a material  adverse
effect  on its  consolidated  financial  condition  or  results  of  operations.
Similarly,  the General Partner does not believe that the ultimate  outcome will
have a material  adverse  effect on the  Partnership's  financial  condition  or
results of operations.

(6) GOING CONCERN

The San Juan Del Centro Limited  Partnership  note payable is past due (see Note
2).  Therefore,  there is the  possibility  that the  Partnership  will lose its
ownership interest in the Local Limited  Partnership  through foreclosure by the
noteholder.  Continuation of the Local Limited  Partnership's  operations in the
present form depends on its ability to extend the maturity  date of this note or
to repay or refinance the note. This condition  raises  substantial  doubt about
its ability to continue as a going  concern.  The  financial  statements  do not
include any adjustments which might result from the outcome of this uncertainty.
On February 14, 2005 the Local Limited Partnership entered into a contract, with
an affiliated party, to sell its investment  property during 2005 for a purchase
price of $7,000,000.


ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

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.  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;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   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 March  31,  2005,  the  Partnership  retained  an  interest  in two of its
original twenty-one Local Limited Partnerships. The property in which one of the
Local  Limited  Partnerships  has  invested  in  receives  one or more  forms of
assistance  from  the  Federal  Government.  As  a  result,  the  Local  Limited
Partnership's  ability to transfer funds to the  Partnership 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. For example, 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.

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
the remaining Local Limited  Partnerships  have been reduced to zero as of March
31, 2005. 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 the Local Limited  Partnership
in the statement of cash flow and would reduce the  Partnership's  investment on
the balance sheet. Distributions of approximately $125,000 comprised of proceeds
from the sale of Harold House were received  during the three months ended March
31,  2005 of which  approximately  $7,000  was in  excess  of the  Partnership's
investment in Harold House Limited Partnership.  A distribution of approximately
$1,000 was  received  during the three  months ended March 31, 2004 from a Local
Limited  Partnership,  which  was sold  several  years  ago as a result  of some
remaining  cash it had not used. The receipt of  distributions  in the future is
dependent upon the operations of the underlying  property of the remaining Local
Limited  Partnership to generate  sufficient cash for distribution in accordance
with applicable HUD regulations.

Cash and cash equivalents  amounted to approximately  $128,000 at March 31, 2005
compared to  approximately  $61,000 at March 31, 2004. Cash and cash equivalents
increased  approximately  $111,000 from  December 31, 2004 due to  approximately
$125,000  of  cash  provided  by  investment   activities  partially  offset  by
approximately  $14,000 of cash used in operating  activities.  Cash  provided by
investing  activities  consisted of distributions from the sale of Harold House.
Cash used in  operating  activities  consisted  of the  payment of  non-resident
income  tax  withholding  to the state of  Colorado  on  behalf  of the  limited
partners and the payment of operating  expenses.  The ability of the Partnership
to meet its on-going  cash  requirements  in excess of cash on hand depends upon
the future  receipt of  distributions  from the Local  Limited  Partnerships  or
proceeds from a sale or refinancing of the underlying  property of the remaining
Local Limited  Partnership.  The  Partnership's  only other form of liquidity is
advances from the General Partner.  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  $450,000 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.  No payments were made
during the three months ended March 31, 2005.

On November  22, 2004,  Harold House  Limited  Partnership  sold its  investment
property to a third party for  approximately  $2,220,000.  After paying  closing
costs,  the net  proceeds  were  used to  repay  the  mortgage  encumbering  the
property,  the deferred  acquisition note and accrued interest thereon,  which a
third party held,  and other  liabilities  of the property and the Local Limited
Partnership.  During the three  months  ended March 31,  2005,  the  Partnership
received a distribution of  approximately  $125,000.  It is anticipated that the
Local Limited Partnership will be completely liquidated by June 30, 2005.

San Juan Del Centro  Limited  Partnership  has a note which was  executed by the
Local  Limited  Partnership  with the seller as part of the  acquisition  of the
property  by the  Local  Limited  Partnership.  The note is a  nonrecourse  note
secured  by a  security  interest  in the  Partnership's  interest  in the Local
Limited  Partnership and is subordinated to the respective  mortgage note on the
property  for as long as the  mortgage  note is insured by HUD. Any payments due
from  project  income  are  payable  from  surplus  cash,  as defined by the HUD
Regulatory  Agreement.  Neither the Local Limited  Partnership  nor any partners
thereof,  present or future assume any personal liability for the payment of the
note.  The note was due December 20, 1999.  The note is in default and the Local
Limited Partnership interest is subject to potential  foreclosure.  Continuation
of the Local Limited  Partnership's  operations in the present form is dependent
on its ability to extend the maturity date of the  respective  note, or to repay
or refinance the note.

As a result of the conditions above,  there is substantial doubt about the Local
Limited  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 this  uncertainty.  On  February  14, 2005 the
Local Limited Partnership entered into a contract,  with an affiliated party, to
sell its investment property during 2005 for a purchase price of $7,000,000.

Results of Operations

The  Partnership  originally  invested  as a limited  partner  in Local  Limited
Partnerships which operated twenty-one rental housing  properties.  At March 31,
2005,  the  Partnership  continued  to hold an  interest  in two  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 non cash in nature.  As of March 31,
2005, the  Partnership had no carrying basis in its investment in one of the two
Local Limited  Partnerships and therefore reflected no results of operations for
its share of profits or losses from this Local Limited Partnership.

The Partnership had a net income of  approximately  $68,000 for the three months
ended  March 31,  2005,  compared to net loss of  approximately  $10,000 for the
three months ended March 31,  2004.  Net income per unit of limited  partnership
was $3.81 for the three  months  ended  March 31,  2005  compared to net loss of
$0.56 per limited  partnership  unit for the three  months ended March 31, 2004.
The  increase  in net  income  for the three  months  ended  March  31,  2005 is
attributable  to  the  sale  of the  property  owned  by  Harold  House  Limited
Partnership.  The Partnership recognized approximately $68,000 in income for the
three  months  ended March 31, 2005  relating to the sale of Harold  House.  The
Partnership  did not recognize  approximately  $25,000 of its allocated share of
losses from the remaining  Local Limited  Partnership for the three months ended
March 31, 2005, as the  Partnership's  net carrying  basis in this Local Limited
Partnership had been reduced to zero. The Partnership's share of losses from the
Local Limited  Partnership,  if not limited to its investment  account  balance,
would have  decreased  approximately  $6,000  between  periods.  The decrease is
primarily due to an increase in total revenues  partially  offset by an increase
in operating  expenses of the property owned by the one remaining  Local Limited
Partnership.

FASB Interpretation No. 46

As of December 31, 2004,  the  Partnership  adopted FASB  Interpretation  No. 46
"Consolidation  of  Variable  Interest  Entities"  (or "FIN 46") and applied its
requirements to all Local Limited  Partnerships in which the Partnership  held a
variable interest. FIN 46 addresses the consolidation by business enterprises of
variable interest entities. Generally, a variable interest entity, or VIE, is an
entity with one or more of the following  characteristics:  (a) the total equity
investment  at risk is not  sufficient  to  permit  the  entity to  finance  its
activities without additional subordinated financial support; (b) as a group the
holders of the equity  investment at risk lack (i) the ability to make decisions
about  an  entity's  activities  through  voting  or  similar  rights,  (ii) the
obligation  to absorb the expected  losses of the entity,  or (iii) the right to
receive the expected residual returns of the entity; or (c) the equity investors
have voting rights that are not  proportional  to their  economic  interests and
substantially all of the entity's activities either involve, or are conducted on
behalf of, an investor that has  disproportionately  few voting  rights.  FIN 46
requires a VIE to be consolidated in the financial statements of the entity that
is determined to be the primary beneficiary of the VIE. Upon adoption of FIN 46,
the Partnership  determined that its Local Limited  Partnership in which it held
an investment was not a VIE, and this  determination  still applies at March 31,
2005.

ITEM 3.     CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of 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,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, 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  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fiscal quarter to which this report relates that have  materially  affected,  or
are reasonably likely to materially affect,  the Partnership's  internal control
over financial reporting.


                           PART II - OTHER INFORMATION


ITEM 5      OTHER INFORMATION

            None.

ITEM 6      EXHIBITS

            See Exhibit Index.


                                   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/David R. Robertson
                                          David R. Robertson
                                          President and Chief Executive
                                          Officer


                                    By:   /s/Stephen B. Waters
                                          Stephen B. Waters
                                          Vice President


                                    Date: May 13, 2005



                 NATIONAL HOUSING PARTNERSHIP REALTY FUND II
                                  EXHIBIT INDEX


Exhibit


31.1        Certification  of equivalent of Chief Executive  Officer pursuant to
            Securities  Exchange  Act  Rules  13a-14(a)/15d-14(a),   as  Adopted
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2        Certification  of equivalent of Chief Financial  Officer pursuant to
            Securities  Exchange  Act  Rules  13a-14(a)/15d-14(a),   as  Adopted
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1        Certification  of the equivalent of the Chief Executive  Officer and
            Chief  Financial  Officer  Pursuant to 18 U.S.C.  Section  1350,  as
            Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





Exhibit 31.1


                                  CERTIFICATION


I, David R. Robertson, 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 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 small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

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

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            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

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

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer'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 small business  issuer'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 small  business
            issuer's internal control over financial reporting.

Date:  May 13, 2005

                                    /s/David R. Robertson
                                    David R. Robertson
                                    President  and Chief  Executive  Officer  of
                                    National     Corporation     for     Housing
                                    Partnerships,   equivalent   of  the   chief
                                    executive officer of the Partnership




Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, 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 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 small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

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

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            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

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

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer'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 small business  issuer'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 small  business
            issuer's internal control over financial reporting.

Date:  May 13, 2005

                                   /s/Stephen B. Waters
                                   Stephen B. Waters
                                   Vice President of National Corporation for
                                   Housing Partnerships, equivalent of the chief
                                   financial officer of the Partnership


Exhibit 32.1


                          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
Partnership Realty Fund Two (the "Partnership"),  for the quarterly period ended
March 31, 2005 as filed with the Securities and Exchange  Commission on the date
hereof  (the  "Report"),  David R.  Robertson,  as the  equivalent  of the Chief
Executive  Officer of the Partnership,  and Stephen B. Waters, 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/David R. Robertson
                                    Name:  David R. Robertson
                                    Date:  May 13, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  May 13, 2005


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