SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


    (X)              QUARTERLY REPORT PURSUANT TO SECTION 13
                OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2001

                                       OR

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


Commission file number:  0-17695
                        --------


                           HEALTHCARE PROPERTIES, L.P.
             (Exact name of Registrant as specified in its charter)


                DELAWARE                                  62-1317327
                --------                                  ----------
       (State or other jurisdiction of                 (I.R.S. Employer
        incorporation or organization)               Identification Number)


              14160 Dallas Parkway, Suite 300, Dallas, Texas 75254
                     (Address of principal executive office)


                                 (972) 770-5600
              (Registrant's telephone number, including area code)


         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 at least the past 90 days.    YES   x     NO
                                                          ------     -------


<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

<TABLE>
<CAPTION>

                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                           CONSOLIDATED BALANCE SHEETS


                                                                             June 30, 2001         December 31, 2000
                                                                              (Unaudited)               Audited
                                                      ASSETS

<S>                                                                        <C>                     <C>

Cash and cash equivalents                                                  $      9,736,626        $     13,514,255

Accounts receivable, less allowance for doubtful
  accounts of $1,213,636 in 2001 and $798,737 in 2000                               528,396                 753,814

Prepaid expenses and other                                                                -                  15,200

Assets held for sale, at the lower of carrying value or                           4,462,527               4,462,527
  fair value less estimated costs to sell

Property and improvements, net                                                    6,203,744               6,451,238

Deferred charges, less accumulated amortization
  of $892,374 in 2001 and $858,281 in 2000                                          228,232                  97,326
                                                                           ----------------        ----------------


                                                                           $     21,159,525        $     25,294,360
                                                                           ================        ================


                       LIABILITIES AND PARTNERSHIP EQUITY

Accounts payable and accrued expenses                                       $       559,179        $        564,449

Operating facility accounts payable                                                  36,982                 148,313

Security deposits                                                                    66,705                       -

Mortgage loans payable                                                            4,716,063               4,772,795
                                                                            ---------------        ----------------

                                                                                  5,378,929               5,485,557
                                                                            ---------------        ----------------

Partnership equity (deficit):
  Limited partners (4,148,325 units outstanding in 2001 and 2000)
                                                                                 15,801,132              19,748,775
  General partner                                                                   (20,536)                 60,028
                                                                            ----------------       ----------------
                                                                                 15,780,596              19,808,803
                                                                            ---------------        ----------------

                                                                            $    21,159,525        $     25,294,360
                                                                            ===============        ================
</TABLE>

                       See notes to financial statements

                                       1
<PAGE>

<TABLE>
<CAPTION>


                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                                    Three months ended,         Three months ended,
                                                                      June 30, 2001                June 30, 2000
                                                                      -------------                -------------
<S>                                                                   <C>                          <C>
Revenues:
   Rental                                                             $     1,105,851              $     1,029,476
   Net patient services                                                     1,395,617                    1,415,679
                                                                      ---------------              ---------------
                                                                            2,501,468                    2,445,155
                                                                      ---------------              ---------------


Expenses:
   Facility operating expenses                                              1,329,735                    1,207,606
   Depreciation                                                               134,168                      133,178
   Administrative and other                                                   266,716                      278,968
   Bad debts                                                                  272,836                       15,000
                                                                      ---------------              ---------------
                                                                            2,003,455                    1,634,752
                                                                      ---------------              ---------------
       Income from operations                                                 498,013                      810,403
                                                                      ---------------              ---------------


Other income (expenses):
   Interest income                                                             71,391                      236,681
   Interest expense                                                          (118,060)                    (125,714)
   Amortization                                                               (16,277)                     (24,240)
                                                                      ----------------             ----------------
                                                                              (62,946)                      86,727
                                                                      ----------------             ---------------


         Net income                                                   $       435,067              $       897,130
                                                                      ===============              ===============

Allocation of net income
   Limited partner                                                            426,365              $       879,187
   General partner                                                              8,702                       17,943
                                                                      ---------------              ---------------
                                                                              435,067              $       897,130
                                                                      ---------------              ===============

NET INCOME PER LIMITED
  PARTNERSHIP UNIT                                                    $           .10              $           .21
                                                                      ===============              ===============

WEIGHTED AVERAGE
   NUMBER OF UNITS                                                          4,148,325                    4,148,325
                                                                      ===============              ===============

</TABLE>

                        See notes to financial statements

                                       2
<PAGE>


<TABLE>
<CAPTION>

                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                                     Six months ended,           Six months ended,
                                                                      June 30, 2001                June 30, 2000
                                                                      -------------                -------------
<S>                                                                   <C>                          <C>

Revenues:
   Rental                                                             $     2,136,753              $     2,022,308
   Net patient services                                                     2,848,856                    2,851,341
                                                                      ---------------              ---------------
                                                                            4,985,609                    4,873,649
                                                                      ---------------              ---------------


Expenses:
   Facility operating expenses                                              2,639,979                    2,434,489
   Depreciation                                                               267,994                      266,346
   Administrative and other                                                   514,369                      605,331
   Bad debts                                                                  517,459                       30,000
                                                                      ---------------              ---------------
                                                                            3,939,801                    3,336,166
                                                                      ---------------              ---------------
       Income from operations                                               1,045,808                    1,537,483
                                                                      ---------------              ---------------


Other income (expenses):
   Gain on disposition of property                                                  -                      302,787
   Interest income                                                            196,923                      424,861
   Interest expense                                                          (236,845)                    (257,903)
   Amortization                                                               (34,093)                     (58,559)
                                                                      ----------------             ----------------
                                                                              (74,015)                     411,186
                                                                      ----------------             ---------------


         Net income                                                   $       971,793              $     1,948,669
                                                                      ===============              ===============

Allocation of net income
   Limited partner                                                    $       952,357              $     1,915,751
   General partner                                                             19,436                       32,918
                                                                      ---------------              ---------------
                                                                      $       971,793              $     1,948,669
                                                                      ===============              ===============

NET INCOME PER LIMITED
  PARTNERSHIP UNIT                                                    $           .23              $           .46
                                                                      ===============              ===============

WEIGHTED AVERAGE
   NUMBER OF UNITS                                                          4,148,325                    4,148,325
                                                                      ===============              ===============

</TABLE>

                       See notes to financial statements

                                       3
<PAGE>

<TABLE>
<CAPTION>

                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                  CONSOLIDATED STATEMENTS OF PARTNERSHIP EQUITY
                                   (Unaudited)


                                                    Limited General
                                                      Partners            Partners               Total



<S>                                                <C>                 <C>                  <C>

EQUITY at
   January 1, 2001                                 $   19,748,775      $     60,028         $   19,808,803

Distributions                                          (4,900,000)         (100,000)            (5,000,000)

Net Income - six months ended
   June 30, 2001                                          952,357            19,436                971,793
                                                   --------------      ------------         --------------

EQUITY at
   June 30, 2001                                   $   15,801,132      $    (20,536)        $   15,780,596
                                                   ==============      =============        ==============


                       See notes to financial statements




                                       4
</TABLE>



<PAGE>

<TABLE>
<CAPTION>


                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)



                                                                                Six months ended           Six months ended
                                                                                  June 30, 2001              June 30, 2000
                                                                                  -------------              -------------
<S>                                                                               <C>                        <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                                     $     971,793              $   1,948,669
   Adjustments to reconcile net income to
     net cash provided by operating activities:
         Bad debts                                                                      517,459                     30,000
         Depreciation and amortization                                                  302,088                    324,905
         Gain on disposition of property, net                                                 -                   (302,787)
         Changes in assets and liabilities:
             Accounts receivable                                                       (292,041)                   963,154
             Prepaid expenses                                                            15,200                        305
             Deferred charges                                                          (165,000)                         -
             Accounts payable &
               accrued expenses                                                        (116,601)                   (61,610)
                                                                                               -
                   Security deposits                                                     66,705                          -
                                                                                  -------------              -------------
                    NET CASH PROVIDED BY
                    OPERATING ACTIVITIES                                              1,299,603                  2,902,636
                                                                                  -------------              -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Proceeds from sale of property                                                         -                  2,279,225
       Purchases of property and improvement                                            (20,500)                    (2,300)
                                                                                  --------------             --------------
                    NET CASH (USED IN) PROVIDED BY
                    INVESTING  ACTIVITIES                                               (20,500)                 2,276,925
                                                                                  --------------             -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Payments on mortgage loans payable                                               (56,732)                  (274,203)
       Distributions                                                                 (5,000,000)                (2,143,000)
                                                                                  --------------             --------------
                    NET CASH USED IN
                    FINANCING ACTIVITIES                                             (5,056,732)                (2,417,203)
                                                                                  --------------             --------------

NET  (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS                                                                 (3,777,629)                 2,762,358

CASH AND CASH EQUIVALENTS
   Beginning of Period                                                               13,514,255                 13,723,936
                                                                                  -------------              -------------

CASH AND CASH EQUIVALENTS
   End of Period                                                                  $   9,736,626                $16,486,294
                                                                                  =============              =============

CASH PAID FOR INTEREST                                                            $     120,845              $     267,593
                                                                                  =============              =============

</TABLE>


                       See notes to financial statements

                                       5
<PAGE>


                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             June 30, 2001 and 2000
                                   (Unaudited)

A.       ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-Q and Article 10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
notes  required  by  generally  accepted  accounting   principles  for  complete
consolidated financial statements. In the opinion of management, all adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  have  been
included.  Operating results are not necessarily  indicative of the results that
may be expected for the year ending  December 31, 2001. The unaudited  condensed
consolidated  financial  statements  should  be read  in  conjunction  with  the
consolidated financial statements and the notes thereto included in Registrant's
annual report on Form 10-K for the year ended December 31, 2000.

Net income  (loss) of the  Partnership  and taxable  income (loss) are generally
allocated  98  percent to the  limited  partners  and 2 percent  to the  general
partner. The net income of the Partnership from the disposition of a property is
allocated  (i) to partners  with deficit  capital  accounts on a pro rata basis,
(ii) to limited partners until they have been paid an amount equal to the amount
of their Adjusted  Investment,  as defined,  (iii) to the limited partners until
they  have  been  allocated  income  equal  to  their  12  percent   Liquidation
Preference,  and (iv)  thereafter,  80 percent to the  limited  partners  and 20
percent  to the  general  partner.  The net  loss of the  Partnership  from  the
disposition  of a property is allocated (i) to partners  with  positive  capital
accounts  on a pro rata basis and (ii)  thereafter,  98  percent to the  limited
partners and 2 percent to the general  partner.  Distributions of available cash
flow are generally  distributed 98 percent to the limited partners and 2 percent
to the general  partner,  until the  limited  partners  have  received an annual
preferential distribution,  as defined in the Agreement of Limited Partnerships.
Thereafter,  available  cash  flow is  distributed  90  percent  to the  limited
partners and 10 percent to the general partner.

The Financial  Accounting  Standards  Board issued  Statement  133;  ("FAS 133")
"Accounting for Derivative Instruments and Hedging Activities" in June 1998. The
Statement is  effective  for all fiscal  quarters of all fiscal years  beginning
after June 15, 2000.  Because of the  Partnership's  minimal use of derivatives,
the adoption of FAS 133 by the  Partnership  in the first quarter of fiscal 2001
did not have a  material  effect  on the  Partnership's  earnings  or  financial
position.

In June 2001,  the Financial  Accounting  Standards  Board issued  Statements of
Financial  Accounting  Standards  No. 141,  Business  Combinations,  and No. 142
Goodwill and Other Intangible Assets, effective for fiscal years beginning after
December 15, 2001. Under the new rules, goodwill and intangible assets deemed to
have indefinite  lives will no longer be amortized but will be subject to annual
impairment tests in accordance with the Statements. Other intangible assets will
continue to be amortized over their useful lives.  The Registrant will apply the
new rules on accounting for goodwill and other  intangible  assets  beginning in
the first  quarter of 2002.  Because the  Registrant  has no  previous  business
combinations,  the adoption of the  statements  in the first quarter 2002 should
not have a material effect on the Registrant's earnings or financial position.

B.       TRANSACTIONS  WITH THE GENERAL  PARTNER AND  AFFILIATES  OF THE GENERAL
         PARTNER

Personnel  working at the Cambridge  facility and certain home office  personnel
who perform  services for the Registrant are employees of Capital Senior Living,
Inc.  ("CSL"),  the managing agent of the  Registrant,  which was until June 10,
1998, an affiliate of Capital Realty Group Senior Housing,  Inc. ("CRGSH"),  the
General  Partner  of the  Registrant.  The  Registrant  reimburses  CSL  for the
salaries,  related  benefits,  and overhead  reimbursements of such personnel as
reflected  in the  accompanying  condensed  consolidated  financial  statements.
Reimbursements and fees paid to CRGSH and CSL are as follows:

                                       6
<PAGE>

<TABLE>
<CAPTION>


                                                                       Six months ended
                                                           June 30, 2001               June 30, 2000
                                                           --------------              -------------

<S>                                                        <C>                         <C>

Salary and benefit reimbursements                          $    1,975,014              $    1,733,884
Administrative reimbursements                                      95,419                      77,281
Asset management fees                                                   0                      79,452
Property management fees                                          199,420                     199,411
General partner fees                                               44,931                      48,648
                                                           --------------              --------------
                                                           $    2,314,784              $    2,138,676
                                                           ==============              ==============

</TABLE>

Currently,  Capital  Senior Living  Properties,  Inc.,  formerly an affiliate of
CRGSH,  holds   approximately  57  percent  of  the  outstanding  units  of  the
Registrant.  The Registrant is included in the consolidated financial statements
of Capital Senior Living Properties, Inc. and its parent company, Capital Senior
Living Corporation, a public company that files with the Securities and Exchange
Commission.

On June 10, 1998,  the sole owner of the General  Partner,  Capital Realty Group
Corporation,  sold  all of its  shares  of  CRGSH  common  stock  to  Retirement
Associates,  Inc.  ("Associates").  Mr.  Robert  Lankford  is the  President  of
Associates  and  has  brokered  and  continues  to  broker  real  estate  as  an
independent contractor with Capital Realty Group Corporation and its affiliates.

C.       VALUATION OF RENTAL PROPERTY

Generally accepted  accounting  principles require that the Registrant  evaluate
whether an event or  circumstance  has  occurred  that would  indicate  that the
estimated undiscounted future cash flows of its properties,  taken individually,
will be less than the  respective  net book value of the  properties.  If such a
shortfall  exists,  then a write-down to fair value is recorded.  The Registrant
performs such evaluations on an on-going basis. During the six months ended June
30, 2001, based on the Registrant's evaluation of the properties, the Registrant
did not record any impairment.

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

Liquidity and Capital Resources

Registrant commenced an offering to the public on August 31, 1987, of depository
units  representing  beneficial  assignments  of limited  partnership  interests
("Units").  On  October  14,  1987,  Registrant  commenced  operations,   having
previously accepted subscriptions for more than the specified minimum of 120,000
Units.  As of August 30, 1989, the offering was closed except for Units for sale
to existing investors under the terms of a distribution reinvestment plan. As of
September 30, 1995,  Registrant had sold Units aggregating  approximately  $43.4
million. Due to the suspension of the distribution reinvestment plan, Registrant
does not anticipate any additional inflow of investment.

All of  the  net  proceeds  of  the  offering  were  originally  invested  in 12
properties  or used for  working  capital  reserves.  The  Registrant  partially
financed the acquisition of eight of its original  properties with  non-recourse
debt. Four properties were initially unleveraged.  As of June 30, 2001, seven of
the  original  twelve  properties  had  either  been sold or deeded  back to the
lender,  leaving the Registrant  with two  properties  secured by debt and three
properties unleveraged.  With the exception of the Cambridge facility,  which is
operated  by the  Registrant  and  consequently  not  leased  to a  third  party
operator, the status of the remaining triple net leases to third party operators
is as follows:  the McCurdy and Crenshaw Creek facility expire on November 2001,
and the Hearthstone  facility lease expires on May 2006. The Trinity Hills lease
expired in June of 2000 with the lessee  continuing  to lease the  property on a
month-to-month  basis.  These leases are subject to renewal options.  As of June
30,  2001,  the  remaining  Cedarbrook  facility  and the McCurdy  facility  are
classified as assets held for sale.

Potential  sources of liquidity for Registrant  include current holdings of cash
and cash  equivalents,  collection of  outstanding  receivables  and/or  revenue
participation related to various leased facilities, collection on defaulted rent
and/or damage settlements  related to leases in default,  new mortgage financing
on one or more of Registrant's  unencumbered assets, and a potential sale of one
or more of the Registrant's assets.

                                       7
<PAGE>

As of June 30,  2001,  Registrant  had cash  and  cash  equivalents  aggregating
$9,736,626.  The cash and cash  equivalents will be used for working capital and
emergency reserves.

Registrant's  general policy is to maintain sufficient cash and cash equivalents
to address  disruptions  of its lease  revenues and to have adequate  additional
funds for  investment in existing  assets for  improvements.  To the extent that
Registrant  deems  it  necessary  to  take  over  the  operations  of any of its
facilities  currently  under  long-term  net leases,  such action would  require
additional  investment  in  working  capital  for  operating  reserves,  capital
expenditures  and  related  debt  payments.  Future cash  distributions  will be
dependent on the status of future operational control of these properties.  Cash
distributions  of $5,000,000 and $2,143,000  were made for the six months ending
June 30, 2001 and 2000 respectively.  The Units are not publicly traded and as a
result the liquidity of each Limited Partner's individual investment is limited.

Results of Operations

Discussion of Six Months Ending June 30, 2001

Rental  revenues for the six months ended June 30, 2001 increased  $114,445 from
the  comparable  six  months  ended  June 30,  2000,  due to  increased  revenue
participation  from leased  facilities.  Net patient services for the six months
ended June 30, 2001  decreased  $2,485  from the six months  ended June 30, 2000
primarily due to decreased occupancy at the Cambridge facility.  Interest income
for the six months ended June 30, 2001  decreased  $227,938  from the six months
ended June 30, 2000 and was  primarily  due to  decreasing  cash  available  for
investment.  A gain of $302,787 was recognized for the six months ended June 30,
2000 due to the sale of the Cane Creek facility.

Facility  operating expenses for the six months ended June 30, 2001 increased by
$205,490 from the  comparable  2000 period  primarily  due to increased  nursing
costs at the Cambridge facility.  Depreciation for the six months ended June 30,
2001, slightly increased $1,648 from the comparable 2000 period.  Administrative
expenses  decreased $90,962 for the six months ended June 30, 2001 in comparison
to  2000  due  to  decreased   professional  fees,  asset  management  fees  and
maintenance  costs on held  for sale  properties.  Bad  debt  expense  increased
$487,459 for the six months ended June 30, 2001 in comparison to the 2000 period
due to non-collection of rent on the McCurdy lease. Interest expense for the six
months ended June 30, 2001 decreased by $21,058 from the comparable 2000 period,
and is due to the sale of the Cane Creek  facility and retirement of the related
mortgage.  Amortization expense for the six months ended June 30, 2001 decreased
$24,466 from the comparable 2000 period,  and is due to the write-off of certain
deferred charges upon the sale of the Cane Creek and Sandybrook facilities.

For the three months ended June 30, 2001 as compared with the three months ended
June 30, 2000,  Registrant's  revenue was impacted by the same shifts of revenue
as discussed  above.  Similarly,  a comparison of second  quarter 2001 operating
expenses  versus second  quarter 2000  reflects the same  variances as discussed
above.

Cash and cash  equivalents as of June 30, 2001 decreased by $3,777,629  from the
balance at December 31, 2000.  Cash flows  decreased by  $6,539,987  for the six
months ending June 30, 2001 in comparison to the six months ending June 30, 2000
primarily due to cash proceeds from the sale of the Cane Creek facility in 2000,
collection of a $700,000 bad-debt recovery  administrative claim approved by the
United  States  Bankruptcy  Court  related  to the  Cambridge  facility  and the
bankruptcy  proceedings  of the former  lessee of that  facility in 2000,  and a
$5,000,000  cash  distribution  in 2001. Net accounts  receivable of $528,396 at
June 30, 2001  reflected a decrease of $225,418 from the balance at December 31,
2000  and  is  due  to  increased  allowance  for  doubtful  accounts  on  lease
receivables for the McCurdy facility and increased  collections at the Cambridge
facility.  Accounts payable,  accrued expenses,  and operating facility accounts
payable  balances  decreased  $116,601  at June 30,  2001,  from the  balance at
December 31, 2000  primarily  due to paid real estate  taxes on the  Hearthstone
facility.

                                       8
<PAGE>

Following is a brief discussion of the status of Registrant's properties:

Cedarbrook, Cane Creek, Crenshaw Creek and Sandybrook Facilities

Rebound,  Inc. a subsidiary of HealthSouth  Corporation,  originally leased four
properties:  Cedarbrook  (a main  campus  with two  houses not  adjacent  on the
campus), Crenshaw Creek, Cane Creek and Sandybrook.

Due to low occupancy,  HealthSouth  closed the Sandybrook  facility in 1994, the
Cedarbrook  facility  in 1997,  and the  Crenshaw  Creek  facility  in May 2000.
HealthSouth  continues to make full lease payments under the terms of the master
lease on a timely basis.

HealthSouth Corporation currently leases the Crenshaw Creek property and a house
affiliated  with the remaining  Cedarbrook  facility  pursuant to a master lease
with the Registrant. The master lease expires on November 2001.

Effective  August  5,  1999,  HealthSouth  agreed  to  transfer  control  of the
Cedarbrook  and Sandybrook  facilities to the Registrant and to continue  making
its full lease payments  under the terms of the master lease to the  Registrant.
On September 30, 1999, the  Registrant  sold the main facility of the Cedarbrook
campus for  $2,825,000,  resulting in a $772,286 gain on the sale and $2,308,734
in net cash proceeds after payment of settlement costs and mortgage payable.  On
July 12, 2000, one of the two small Cedarbrook facilities was sold for $390,546,
resulting in a gain on sale of $115,717 and net cash  proceeds of  approximately
$360,380 after payment of settlement  costs.  One of the two small facilities on
the Cedarbrook  campus is still owned by the Registrant as of June 30, 2001. The
Registrant has entered into a contract to sell the remaining Cedarbrook facility
for $325,000, with a anticipated closing in September 2001. On January 11, 2000,
the Cane Creek facility was sold to a subsidiary of HealthSouth  for $2,350,000,
resulting in a $302,787  gain on the sale and  $2,143,400  in net cash  proceeds
after payment of settlement costs and mortgage  payable.  On August 4, 2000, the
Sandybrook facility was sold for $2,025,000 resulting in a loss of approximately
$766,400,  and net cash proceeds of  approximately  $1,829,130  after payment of
settlement  costs.  HealthSouth  still leases and maintains  the Crenshaw  Creek
facility. The Crenshaw Creek facility was closed in May 2000.

Cambridge Facility

The lessee of the  Cambridge  facility,  Nursing  Centers  of  America-Cambridge
(NCAC),  filed a voluntary  petition under Chapter 11 of the Federal  Bankruptcy
Code in February of 1992.  The  Registrant  commenced  litigation  against  NCAC
seeking full payment of future rentals under the lease of NCAC.

On August 1, 1996, the United States  Bankruptcy  Court approved the transfer of
the  operations of NCA Cambridge  Nursing Home to Cambridge LLC, a subsidiary of
the Registrant,  thereby releasing the operations of the Cambridge facility from
the  jurisdiction  of the  United  States  Bankruptcy  Court.  The  Registrant's
subsidiary now operates this property.

The Registrant had filed an administrative  claim with the trustee of the United
States  Bankruptcy  Court for unpaid lease  payments.  At December 31, 1999, the
Registrant  recorded a receivable  for $700,000  related to this  administrative
claim,  which was approved by the United States  Bankruptcy  Court. The $700,000
account  receivable was collected on March 1, 2000. It is unlikely that material
future disbursements will be made to the Registrant regarding this matter.

The Registrant has entered into a contract to sell the Cambridge  facility to an
unaffiliated buyer for $3,6000,000.  The contract amount has been escrowed, with
an  anticipated  closing date in August 2001. The purchaser does not plan to use
the facility as a nursing home,  thus the  Registrant  has begun to transfer its
residents to other facilities. This was completed in Mid-July 2001.


                                       9
<PAGE>



Hearthstone, Trinity Hills, and McCurdy Facilities

The  Hearthstone  lease expired on November 7, 2000.  The parent  company of the
lessee filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for
the District of Delaware.  The lessee and the Registrant  attempted to negotiate
an extension of the lease,  but were  unsuccessful  in doing so. The Hearthstone
lessee did not pay their April rent to Registrant.  Registrant  negotiated a new
lease with an unaffiliated operator,  effective May 1, 2001. All rental payments
to date to the Registrant have been timely.

The Trinity Hills lease expired on June 30, 2000, however,  the lessee continues
to lease the facility on a month-to-month basis. On February 2, 2000, the parent
company  of the  lessee of the  Trinity  Hills  facility,  filed for  Chapter 11
bankruptcy in the United States  Bankruptcy  Court for the District of Delaware.
At this time,  it is  uncertain if  bankruptcy  protection  will disrupt  future
payments  of lease  obligations.  The Trinity  Hills  lessee is current on their
minimum lease obligations,  and rent  participation  payments to the Registrant.
The lessee has  notified  the  Registrant  that they will not renew their lease.
Registrant is exploring its options regarding this property, including finding a
new lessee or selling the property.

The lessee of the McCurdy  facility has defaulted on its minimum lease  payments
as of January 2001. The Registrant had attempted to work with the current lessee
to  stabilize  its census,  but the lessee was unable to do so.  After  numerous
conversations  with the lender and the  operator  of the  McCurdy  facility,  it
became apparent that  substantial  funds would need to be put into this facility
(which was built in the year 1916) with  substantial  risk that that money would
not be  regained.  The  Registrant  made  the  decision  that  it  will  not put
additional  money into this property.  The  Registrant  then informed the lender
that until the Registrant  received rental payments from the McCurdy lessee, the
Registrant  would  not  continue  to pay the  lender  mortgage  payments  on the
property. Currently, the lender has begun foreclosure proceedings. Registrant is
reviewing its options.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The Registrant's  primary market risk exposure is from  fluctuations in interest
rates and the  effects of those  fluctuations  on the market  values of its cash
equivalent short-term  investments.  The cash equivalent short-term  investments
consist primarily of overnight investments that are not significantly exposed to
interest  rate risk,  except to the extent that  changes in interest  rates will
ultimately affect the amount of interest income earned on these investments.

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

         On May 17, 2001,  Old  National  Bank in  Evansville  filed a complaint
requesting a judgment of foreclosure  against HealthCare  Properties,  LP on the
McCurdy  property  alleging  failure  by  HealthCare  Properties,  LP to  make a
mortgage payment due on April 1, 2001. Additionally,  on or around May 22, 2001,
certain  property  owners with an  interest in the ground  lease for the McCurdy
property  filed a complaint  for  Declaratory  Judgment and Quiet Title  against
Registrant  and Old National  Bank seeking to nullify an option by Registrant to
purchase the ground lease.

Item 2.  Changes in Securities

         None

Item 3.  Defaults Upon Senior Securities

         None

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

         None

                                       10
<PAGE>



Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

           (A)    Exhibit:

                  None

           (B)    Reports on Form 8-K:

                  None


SIGNATURES

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



HEALTHCARE PROPERTIES, L.P.

By:      CAPITAL REALTY GROUP SENIOR HOUSING, INC.
          General Partner



By:
   ---------------------------------------
   Robert Lankford
   President


Date:    August 14, 2001