FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities exchange Act of 1934

                For the Quarterly Period Ended September 30, 2000

                         Commission File Number 0-17695

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


                         DELAWARE                             62-1317327
(State of other jurisdiction of incorporation or           (I.R.S. Employer
                       organization)                     Identification No.)


                         14160 DALLAS PARKWAY, SUITE 300
                                DALLAS, TX 75240
                    (Address of principal executive offices)
                                   (Zip Code)

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

                                 NOT APPLICABLE

              (Former name, former address and former fiscal year,
                          if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes         X     No
         -------         -------


<PAGE>


PART I.  FINANCIAL INFORMATION


Item 1.  FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                           Consolidated Balance Sheets

                                                                          September 30, 2000       December 31, 1999
                                                                              (Unaudited)

ASSETS
<S>                                                                        <C>                     <C>
Cash and cash equivalents                                                  $     15,127,101        $     13,723,936

Accounts receivable, less allowance for doubtful
  accounts of $368,669 in 2000 and $735,106 in 1999                                 643,717               1,620,943

Prepaid expenses and other                                                            6,529                     305

Property and improvements, net                                                    6,571,065               6,956,615

Assets held for sale, at the lower of carrying value or
  fair value less estimated costs to sell                                         4,695,016               9,549,086

Deferred charges, less accumulated amortization
  of $1,012,777 in 2000 and $989,098 in 1999                                        121,566                 204,367
                                                                           ----------------        ----------------


                                                                           $     27,164,994        $     32,055,252
                                                                           ================        ================


LIABILITIES AND PARTNERSHIP EQUITY

Accounts payable and accrued expenses                                      $        698,615        $        454,772

Operating facility accounts payable                                                  98,369                 137,777

Mortgage loans payable                                                            4,843,699               5,173,281
                                                                           ----------------        ----------------

                                                                                  5,640,683               5,765,830
                                                                           ----------------        ----------------

Partnership equity

  Limited partners (4,148,325 units outstanding in 2000
       and  1999)                                                                21,472,052              26,189,763
  General partner                                                                    52,259                  99,659
                                                                           ----------------        ----------------
                                                                                 21,524,311              26,289,422
                                                                           ----------------        ----------------

                                                                           $     27,164,994        $     32,055,252
                                                                           ================        ================

</TABLE>

                       See notes to financial statements

                                       1
<PAGE>

<TABLE>
<CAPTION>

                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)

                                                                           Three-months ended September 30,
                                                                          2000                          1999
                                                                          ----                          ----
Revenues
<S>                                                                   <C>                          <C>
   Rental                                                             $     1,031,239              $       992,832
   Net patient services                                                     1,393,806                    1,334,917
                                                                      ---------------              ---------------
                                                                            2,425,045                    2,327,749
                                                                      ---------------              ---------------

Expenses

   Facility operating expenses                                              1,227,297                    1,221,526
   Depreciation                                                               133,276                      322,561
   Administrative and other                                                   203,098                      306,238
   Bad debts                                                                   15,000                       76,353
                                                                      ---------------              ---------------
                                                                            1,578,671                    1,926,678
                                                                      ---------------              ---------------
       Income from operations                                                 846,374                      401,071
                                                                      ---------------              ---------------

Other income (expenses)
   (Loss) gain on disposition of operating property                          (650,683)                     772,286
   Interest income                                                            179,675                      146,335
   Interest expense                                                          (121,905)                    (145,146)
   Amortization                                                               (24,241)                     (26,283)
                                                                      ---------------              ---------------
                                                                             (617,154)                     747,192
                                                                      ---------------              ---------------


         Net income                                                   $       229,220              $     1,148,263
                                                                      ===============              ===============

NET INCOME ALLOCATION
         Limited partner                                              $       213,538              $     1,140,744
         General partner                                              $        15,682              $         7,519
                                                                      ---------------              ---------------

                                                                      $       229,220              $     1,148,263
                                                                      ===============              ===============

NET INCOME PER LIMITED
  PARTNERSHIP UNIT                                                    $           .05              $           .27
                                                                      ===============              ===============

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
                      Consolidated Statements of Operations
                                   (Unaudited)

                                                                            Nine-months ended September 30,
                                                                          2000                          1999
                                                                          ----                          ----
Revenues
<S>                                                                   <C>                          <C>
   Rental                                                             $     3,053,547              $     3,187,874
   Net patient services                                                     4,245,147                    3,920,571
                                                                      ---------------              ---------------
                                                                            7,298,694                    7,108,445
                                                                      ---------------              ---------------

Expenses

   Facility operating expenses                                              3,661,786                    3,533,756
   Depreciation                                                               399,622                      967,181
   Administrative and other                                                   808,429                    1,035,308
   Bad debts                                                                   45,000                      106,353
                                                                      ---------------              ---------------
                                                                            4,914,837                    5,642,598
                                                                      ---------------              ---------------
       Income from operations                                               2,383,857                    1,465,847
                                                                      ---------------              ---------------

Other income (expenses)
   (Loss) gain on disposition of operating property                          (347,896)                     772,286
   Interest income                                                            604,536                      410,849
   Interest expense                                                          (379,808)                    (443,322)
   Amortization                                                               (82,800)                     (78,851)
                                                                      ---------------              ---------------
                                                                             (205,968)                     660,962
                                                                      ---------------              ---------------

         Net income                                                   $     2,177,889              $     2,126,809
                                                                      ===============              ===============

NET INCOME ALLOCATION
         Limited partner                                              $     2,129,289              $     2,099,719
         General partner                                              $        48,600              $        27,090
                                                                      ---------------              ---------------

                                                                      $     2,177,889              $     2,126,809
                                                                      ===============              ===============

NET INCOME PER LIMITED
  PARTNERSHIP UNIT                                                    $           .51              $           .51
                                                                      ===============              ===============

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
                                     Consolidated Statements of Partnership Equity

                                                    Limited              General
                                                    Partners            Partners               Total
<S>                                            <C>                     <C>                <C>
EQUITY at
   December 31, 1999                           $    26,189,763         $     99,659       $     26,289,422

Distributions - Unaudited                           (6,847,000)             (96,000)            (6,943,000)

Net income - Unaudited                               2,129,289               48,600              2,177,889
                                               ---------------         ------------       ----------------

EQUITY at
   September 30, 2000 - Unaudited              $    21,472,052         $      52,259      $     21,524,311
                                               ===============         =============      ================


</TABLE>


                       See notes to financial statements

                                       4

<PAGE>


<TABLE>
<CAPTION>

                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

                                                                                      Nine-months ended September 30,
                                                                                      2000                       1999
                                                                                      ----                       ----
<S>                                                                               <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                                                     $      2,177,889           $      2,126,809
   Adjustments to reconcile net income to
     net cash provided by operating activities
         Bad debts                                                                          45,000                    106,353
         Depreciation and amortization                                                     482,422                  1,046,032
         (Loss) gain on disposition of operating property                                  347,896                   (772,286)
         Changes in assets and liabilities
             Accounts receivable                                                           932,226                   (413,017)
             Prepaid expenses and other                                                     (6,224)                    20,466
             Accounts payable and accrued expenses                                         204,435                    (14,301)
                                                                                  ----------------           ----------------

                    NET CASH PROVIDED BY
                    OPERATING ACTIVITIES                                                 4,183,644                  2,100,056
                                                                                  ----------------           ----------------

CASH FLOWS FROM INVESTING ACTIVITIES
       Purchases of property and improvement                                               (14,072)                   (20,191)
       Net proceeds from sale of property                                                4,506,175                  2,739,954
                                                                                  ----------------           ----------------
                    NET CASH PROVIDED BY
                    INVESTING  ACTIVITIES                                                4,492,103                  2,719,763
                                                                                  ----------------           ----------------

CASH FLOWS FROM FINANCING ACTIVITIES
       Payments on mortgage loans payable                                                 (329,582)                  (877,978)
       Distributions                                                                    (6,943,000)                  (499,975)
                                                                                  ----------------           ----------------
                    NET CASH USED IN
                    FINANCING ACTIVITIES                                                (7,272,582)                (1,377,953)
                                                                                  ----------------           ----------------

NET INCREASE IN CASH
AND CASH EQUIVALENTS                                                                     1,403,165                  3,441,866

CASH AND CASH EQUIVALENTS
   Beginning of period                                                                  13,723,936                 11,971,405
                                                                                  ----------------           ----------------

CASH AND CASH EQUIVALENTS
   End of period                                                                  $     15,127,101           $     15,413,271
                                                                                  ================           ================

CASH PAID FOR INTEREST                                                            $        389,498           $        443,322
                                                                                  ================           ================
</TABLE>


                       See notes to financial statements

                                       5

<PAGE>



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

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           September 30, 2000 AND 1999
                                   (Unaudited)

A.       ACCOUNTING POLICIES

         The accompanying  unaudited 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
footnotes  required by generally  accepted  accounting  principles  for complete
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,  2000.  The  unaudited  consolidated  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and the footnotes  thereto included in Registrant's  annual report on
Form 10-K for the year ended December 31, 1999.

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.  Thereafter,  available  cash  flow is
distributed  90 percent to the  limited  partners  and 10 percent to the general
partner.

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  consolidated  financial  statements.
Reimbursements and fees paid to CRGSH and CSL are as follows:

<TABLE>
<CAPTION>

                                                         Nine months ended          Nine months ended
                                                         September 30, 2000         September 30, 1999
                                                         ------------------         ------------------
<S>                                                        <C>                         <C>
Salary and benefit reimbursements                          $    2,665,605              $    2,313,582
Administrative reimbursements                                     116,415                     118,192
Asset management fees                                              79,452                     351,000
Property management fees                                          296,978                     271,498
General partner fees                                               72,901                      70,051
                                                           --------------              --------------
                                                           $    3,231,351              $    3,124,323
                                                           ==============              ==============
</TABLE>

         Currently,   Capital  Senior  Living  Properties,   Inc.,  formerly  an
affiliate of CRGSH,  holds  approximately  57% of the  outstanding  units of the
Registrant.  The Registrant is included in the consolidated financial statements

                                       6
<PAGE>

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")  for  $855,000.  The source of the funds was a
Promissory  Note for  $855,000  with a  five-year  term and  bearing  an  earned
interest rate of 8% per annum.  The interest  accrues on the Promissory Note and
is payable at the maturity of the  Promissory  Note.  Associates is the maker of
the Note and Capital Realty Group  Corporation is the payee. 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 and is material,  then a write-down to fair value is
recorded.  The Registrant performs such evaluations on an on-going basis. During
the nine months ended September 30, 2000, 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 September 30, 2000,
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 initial term of the four  properties with long-term net leases to
third party  operators are due to expire in the years 2000 and 2001. Such leases
are subject to renewal and  purchase  options.  As of September  30,  2000,  the
Cedarbrook and McCurdy facilities were 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.

         As of September  30,  2000,  Registrant  had cash and cash  equivalents
aggregating $15,127,101.  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.  In the
event that  Registrant  deems it necessary to take over the operations of any of
its facilities  currently under  long-term net lease,  such action would require
additional  investment  in  working  capital  for  operating  reserves,  capital
expenditures  and  related  debt  payments.  Future cash  distributions  will be

                                       7

<PAGE>

dependent on the status of future operational control of these properties.  Cash
distributions  for the nine  months  ending  September  30,  2000 and 1999  were
$6,943,000 and $499,975,  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 Nine Months Ending September 30, 2000

         Rental  revenues for the nine months ended September 30, 2000 decreased
$134,327  from the  comparable  nine months ended  September  30,  1999,  due to
decreased revenue participation from leased facilities. Net patient services for
the nine months ended September 30, 2000 increased $324,576 from the nine months
ended  September  30, 1999,  and was  primarily  due to increased  occupancy and
higher  reimbursement rates at the Cambridge  facility.  Interest income for the
nine months ended  September  30, 2000  increased  $193,687 from the nine months
ended  September 30, 1999 and was primarily due to increasing cash available for
investment.  A net loss of $347,896  was  recognized  for the nine months  ended
September 30, 2000.  The net loss is comprised of a $302,787 gain on sale of the
Cane Creek  facility on January 11, 2000, a $115,718  gain on sale of one of the
two  Cedarbrook  houses on July 12,  2000,  and a  $766,400  loss on sale of the
Sandybrook facility on August 4, 2000.

         Facility  operating  expenses for the nine months ended  September  30,
2000 increased by $128,030 from the comparable 1999 period and are primarily due
to increased  professional fees at the Cambridge facility.  Depreciation for the
nine months ended September 30, 2000 decreased $567,559 from the comparable 1999
period due to the sale of the Cedarbrook,  Sandybrook and Cane Creek  facilities
and the classification of certain assets as assets held for sale. Administrative
expenses  decreased  $226,879  for the nine months ended  September  30, 2000 in
comparison  to the  same  period  in  1999  and is  primarily  due to  decreased
professional and asset management fees. Bad debt expense  decreased  $61,353 for
the nine months ended September 30, 2000 in comparison to the 1999 period due to
additional lease receivable  reserves on the McCurdy facility  recorded in 1999.
Interest  expense for the nine months  ended  September  30, 2000  decreased  by
$63,514 from the comparable 1999 period and is due to the sale of the Cane Creek
facility and retirement of the related  mortgage.  Amortization  expense for the
nine months ended  September 30, 2000 increased  $3,949 from the comparable 1999
period and is due to the write-off of certain  deferred charges upon the sale of
the Cane Creek facility.

         For the three  months  ended  September  30, 2000 as compared  with the
three months ended September 30, 1999,  Registrant's revenue was impacted by the
same shifts of revenue as discussed  above with the  exception of an increase in
lease  participation  revenues  of $38,407.  Similarly,  a  comparison  of third
quarter 2000  operating  expenses  versus third  quarter 1999  reflects the same
variances  as  discussed  above with the  exception  of a decrease  of $2,042 in
amortization expense.

         Cash and cash equivalents as of September 30, 2000 increased $1,403,165
over the balance at December 31, 1999.  Cash flows  decreased by $2,038,701  for
the nine months ending September 30, 2000 in comparison to 1999 primarily due to
increased cash  distributions  in 2000.  Net accounts  receivable of $643,717 at
September 30, 2000 reflected a decrease of $977,226 over 1999 year-end  balances
and is due to the  collection of the $700,000  administrative  claim approved by
the United  States  Bankruptcy  Court  related  to the  Cambridge  facility  and
improved collections of accounts receivable at the Cambridge facility.  Accounts
payable,  accrued  expenses,  and operating  facility  accounts payable balances
increased  $204,435  at  September  30,  2000,  from  December  31,  1999 and is
primarily due to increased prepaid rent at September 30, 2000.

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

Cedarbrook, Cane Creek, Crenshaw Creek and Sandybrook Facilities

The  Registrant  has  a  non-cancelable  master  lease  with  Rebound,  Inc.,  a
subsidiary of HealthSouth Corporation  (HealthSouth).  The master lease included
the Cedarbrook, Cane Creek, Crenshaw Creek and Sandybrook facilities. Due to low
occupancy, HealthSouth closed the Sandybrook facility in 1994 and the Cedarbrook
facility  in 1997.  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

                                       8

<PAGE>

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  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.  HealthSouth still leases the Crenshaw Creek facility,  but closed down
this facility in May 2000. On July 12, 2000,  one of the two  Cedarbrook  houses
was sold  for  $390,546  resulting  in a gain on sale of  $115,718  and net cash
proceeds of approximately  $360,380 after payment of settlement costs. On August
4, 2000 the Sandybrook  facility was sold for $2,025,000  resulting in a loss on
sale  of  approximately   $766,400,  and  net  cash  proceeds  of  approximately
$1,829,130  after  payment of  settlement  costs.  Even though  HealthSouth  has
transferred or shut down these  properties and some have been sold,  HealthSouth
continues to make its full lease payments under the terms of the master lease.

Two recourse loans,  Cedarbrook and Cane Creek,  were due in January 1996 in the
aggregate amount of approximately $2,400,000.  Both of these notes were callable
by the  lenders at any time  between  January  1, 1993 and  November  30,  1995;
however,  the lenders agreed not to exercise their call rights prior to maturity
on January 31, 1996 as long as the  Partnership  remained in compliance with the
loan  agreements.  On March 21, 1997,  one of the lenders agreed not to exercise
its call right until June 30, 1997. The  Registrant  paid off this loan upon the
sale of the Cedarbrook  facility's  main campus in September 1999. The lender of
the  other  loan  verbally  agreed to extend  the  maturity  date of its note to
December 1, 2001, pending completion of final loan documents. This loan was paid
off upon the sale of the Cane Creek facility in January 2000.

Cambridge Facility

The   former   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.

Trinity Hills, McCurdy, and Hearthstone Facilities

Except with respect to the Trinity Hills  lessee,  the other lessees are current
in their lease  obligations  to the  Registrant.  Trinity Hills is delinquent on
three rent participation payments (though they have paid its minimum rental). In
addition,  the Registrant  believes it likely that the lessee of the Hearthstone
facility will pay  additional  rental  amounts to the  Registrant  during future
years based upon increased revenues at this facility.  However,  there can be no
assurance of such increased  revenue.  Based on the financial  statements of the
lessees,  the  Hearthstone  and  McCurdy  facilities  are  generating  cash flow
sufficient to fund their lease obligations,  but Trinity Hills is, at this time,
not generating  sufficient cash flow to fund its lease obligations from property
operations.

On January 18, 2000 and February 2, 2000, the parent companies of the lessees of
the Hearthstone and Trinity Hills facilities, respectively, 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.  Unless renewed,  the Hearthstone  facility lease
expires on November 30, 2001 and the Trinity  Hills  facility  lease  expired on
June 30,  2000.  The  Hearthstone  and  Trinity  Hills  lessees  have  requested
extensions of their leases.  If the leases are not extended,  the  Registrant is
evaluating  its options for the  properties,  which  could  include  selling the
facilities, leasing the facilities to a third party or converting the facilities
to an alternative use.

                                       9

<PAGE>


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.   These  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

The  Registrant was a defendant in a lawsuit  brought by AmHealth  (Evansville),
Inc.  in  the  Circuit  Court  of  Vanderburgh  County,  Indiana,  Cause  Number
82C01-9811-CP-0373  (Lawsuit), which concerned the McCurdy facility being leased
by AmHealth (Evansville), Inc. On December 10, 1999, the Registrant and AmHealth
(Evansville), Inc. entered into an Amendment of Lease whereby the parties agreed
to dismiss the lawsuit with  prejudice.  The  Stipulation and Order of Dismissal
with Prejudice was filed with the Court on January 21, 2000. The Registrant paid
no settlement  funds to AmHealth  (Evansville),  Inc.  and, in fact,  received a
letter of credit from the lessee as a safeguard aginst any future defaults.

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.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

           (A)    Exhibit:

                  27.1     Financial Data Schedule

           (B)    Reports on Form 8-K

                  Registrant  filed a Form 8-K dated July 26, 2000  concerning a
                  change in accountants.

         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.

                                       10
<PAGE>




HEALTHCARE PROPERTIES, L.P.

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

By:      /s/ Robert Lankford
         -----------------------------------------
         Robert Lankford
         President

Date:    November 14, 2000