UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



/X/QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES

EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2001

or

/ /TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 0-17696



AMERICAN AFFORDABLE HOUSING II LIMITED PARTNERSHIP(Exact name of registrant as specified in its charter)



|Massachusetts                     | 04-2992309         
|--------------------------------- | -------------------
|(State or other jurisdiction      | (I.R.S. Employer   
|of incorporation or organization) | Identification No.)



One Boston Place, Suite 2100,

Boston, Massachusetts  02108(Address of principal executive offices)

617-624-8900

(Registrants telephone number, including area code)

(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 | / /
|--- | --- |  | -- | ---

















AMERICAN AFFORDABLE HOUSING II LIMITED PARTNERSHIP



QUARTERLY REPORT ON FORM 10-QFOR THE QUARTER ENDED JUNE 30, 2001



TABLE OF CONTENTS







































































American Affordable Housing II Limited PartnershipBALANCE SHEETS



|                                  | June 30,
2001(Unaudited)                                                                                            | March 31,
2001(Audited)
|--------------------------------- | ------------------------------------------------------------------------------------------------------------------- | -----------------------
|                                  |                                                                                                                     |                        
|ASSETS                           
|                                  |                                                                                                                     |                        
|INVESTMENTS IN OPERATING          |                                                                                                                     |                        
|                                  | PARTNERSHIPS (Note D)                                                                                               | $ 1,779,134            
|                                  |                                                                                                                     |                        
|Cash and cash equivalents         | 61,759                                                                                                              | 34,369                 
|Other assets                      | 7,849                                                                                                               | 11,734                 
|                                  |                                                                                                                     |                        
|                                  | $1,848,742                                                                                                          | $1,852,151             
|                                  |                                                                                                                     |                        
|                                 
|LIABILITIES AND PARTNERS' DEFICIT
|                                  |                                                                                                                     |                        
|LIABILITIES                       |                                                                                                                     |                        
|                                  |                                                                                                                     |                        
|Accounts payable affiliates       | 5,483,827                                                                                                           | 5,378,161              
|                                  |                                                                                                                     |                        
|                                  | 5,483,827                                                                                                           | 5,378,161              
|                                  |                                                                                                                     |                        
|PARTNERS' DEFICIT                 |                                                                                                                     |                        
|                                  |                                                                                                                     |                        
|Limited Partners                  |                                                                                                                     |                        
|                                  | Units of limited partnership 
interest, $1,000 stated value per
unit; issued and outstanding,
26,501 units (note A) | (3,368,828)            
|General Partners                  | (266,257)                                                                                                           | (265,166)              
|                                  |                                                                                                                     |                        
|                                  | (3,635,085)                                                                                                         | (3,526,010)            
|                                  |                                                                                                                     |                        
|                                  | $1,848,742                                                                                                          | $1,852,151             







The accompanying notes are an integral part of this statement



















































































































































American Affordable Housing II Limited PartnershipSTATEMENTS OF OPERATIONS Three Months Ended June 30,
(Unaudited)



|                                                  | 2001                                | 2000        
|------------------------------------------------- | ----------------------------------- | ------------
|                                                  |                                     |             
|Income                                            |                                     |             
|                                                  | Interest income                     | $        286
|                                                  | Other income                        | 491         
|                                                  | 777                                 | 4,141       
|                                                  |                                     |             
|Share of loss from Operating Partnerships(Note D) | (25,633)                            | (70,363)    
|                                                  |                                     |             
|Expenses                                          |                                     |             
|                                                  | Professional fees                   | 7,800       
|                                                  | General and administrative expenses | 6,663       
|                                                  | Asset management fees (note C)      | 69,756      
|                                                  | 84,219                              | 111,113     
|                                                  |                                     |             
|NET LOSS                                          | $(109,075)                          | $(177,335)  
|                                                  |                                     |             
|Net loss allocated to general partners            | $(1,091)                            | $(1,773)    
|                                                  |                                     |             
|Net loss allocated limited partners               | $(107,984)                          | $(175,562)  
|                                                  |                                     |             
|Net loss per unit of limited partnership interest | $(4)                                | $(7)        
|                                                  |                                     |             









The accompanying notes are an integral part of this statement

























American Affordable Housing II Limited PartnershipSTATEMENTS OF CHANGES IN PARTNERS' DEFICIT
Three Months Ended June 30,
(Unaudited)



|                                    | Assignees    | GeneralPartner | Total       
|----------------------------------- | ------------ | -------------- | ------------
|                                    |              |                |             
|Partners' (deficit)
  April 1, 2001 | $(3,260,844) | $(265,166)     | $(3,526,010)
|                                    |              |                |             
|                                    |              |                |             
|Net loss                            | (107,984)    | (1,091)        | (109,075)   
|                                    |              |                |             
|Partners' (deficit)
  June 30, 2001 | $(3,368,828) | $(266,257)     | $(3,635,085)
|                                    |              |                |             









The accompanying notes are an integral part of this statement













































American Affordable Housing II Limited PartnershipSTATEMENTS OF CASH FLOWSThree Months Ended June 30,
(Unaudited)



|                                      | 2001                                                | 2000                                             
|------------------------------------- | --------------------------------------------------- | -------------------------------------------------
|Cash Flows from operating activities: |                                                     |                                                  
|                                      |                                                     |                                                  
|                                      | Net Loss                                            | $  (109,075)                                     
|                                      | Adjustments:                                        |                                                  
|                                      |                                                     | Distributions from Operating Partnerships        
|                                      |                                                     | Share of Loss from Operating Partnerships        
|                                      |                                                     | Changes in assets and liabilities:               
|                                      |                                                     | (Decrease) Increase in other assets              
|                                      |                                                     | Increase in accounts payable and accrued expenses
|                                      |                                                     |                                                  
|                                      | Net cash provided by (used in) operating activities | 27,390                                           
|                                      |                                                     |                                                  
|                                      | INCREASE (DECREASE) IN CASH                         | 27,390                                           
|                                      |                                                     |                                                  
|Cash and cash equivalents, beginning  | 34,369                                              | 12,021                                           
|                                      |                                                     |                                                  
|Cash and cash equivalents, ending     | $61,759                                             | $20,197                                          

The accompanying notes are an integral part of this statement











































American Affordable Housing II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE A - ORGANIZATION



Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective September 21, 1987, which covered the offering (the "Public 
Offering") of the Partnership's units of limited partner interest, as well as the units of limited partner interest offered by American Affordable Housing I, III, IV, and V Limited Partnerships (together with the Partnership, the 
"Partnerships").  The Partnerships registered 50,000 units of limited partner interest at $1,000 each unit for sale to the public.  The Partnership sold 26,501 units of limited partner interest, representing $26,501,000 of capital contributions.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of  June 30, 2001 and for the three months ended have been prepared by the Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.  The Registrant's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations.  All such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.  It is suggested that these condensed financial statements are read in conjunction with the financial statements and  the notes thereto included in the Registrant's Annual Report Statement on Form 10-K.

The accompanying financial statements reflect the Partnership's results of operations for an interim period and are not necessarily indicative of the results of operations for the fiscal year ending March 31, 2002.







American Affordable Housing II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2001

(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS

An annual asset management fee based on 0.5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships, has been  accrued as payable to Boston Capital Asset Management Limited Partnership.   The annual asset management fee accrued for the quarters ended June 30, 2001 and 2000 was $105,568.

Affiliates of the General Partner have advanced $210,128 to the Partnership to pay certain operating expenses of the Partnership, and make  advances and/or loans to Operating Partnerships.  These and any additional advances will be repaid, without interest, from available cash flow or the  proceeds of sales or refinancing of the Partnership's interests in Operating  Partnerships.

The Partnership has also accrued certain affiliate administrative  expenses, including but not limited to travel, printing, salaries, postage,  and overhead allocations, totaling $19,520.



NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2001 and 2000, the Partnership had limited partnership equity interests in forty nine Operating Partnerships, each of which owned an apartment complex.

Under the terms of the Partnership's investment in each Operating Partnership, the Partnership was required to make capital contributions to such Operating Partnerships.  These contributions were payable in installments 
upon each Operating Partnership achieving specified levels of construction and/or operations.  At June 30, 2001 and 2000, all such capital  contributions had been paid to the Operating Partnerships.

The Partnership's fiscal year ends March 31st of each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for 
each of the Operating Partnerships are provided to the Partnership within 45 days after the close of each Operating Partnership's quarterly period.  Accordingly, the current financial results available for the Operating Partnerships are for the three months ended March 31, 2001.



























American Affordable Housing II Limited Partnership



NOTES TO FINANCIAL STATEMENTS

June 30, 2001

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

The unaudited combined statements of operations of the Operating 
Partnerships for the Three months ended March 31, 2001 and 2000 are as follows:



|                                                                              | 2001           | 2000               
|----------------------------------------------------------------------------- | -------------- | -------------------
|                                                                              |                |                    
|Revenues                                                                      |                |                    
|Rental income                                                                 | $    2,312,428 | $         2,399,802
|Interest and other                                                            | 85,247         | 151,365            
|                                                                              |                |                    
|                                                                              | 2,397,675      | 2,551,167          
|                                                                              |                |                    
|Expenses                                                                      |                |                    
|Interest expense                                                              | 701,026        | 712,601            
|Depreciation and amortization                                                 | 654,929        | 707,302            
|Operating expenses                                                            | 1,768,979      | 1,788,249          
|                                                                              | 3,124,935      | 3,208,152          
|                                                                              |                |                    
|NET LOSS                                                                      | $(727,260)     | $(656,985)         
|                                                                              |                |                    
|Net loss allocation to American
  Affordable Housing II Limited
  Partnership | $(25,633)      | $(70,363)          
|                                                                              |                |                    
|                                                                              |                |                    
|Net loss allocated to other 
  partners                                       | $(7,273)       | $(6,570)           
|                                                                              |                |                    
|Net loss suspended                                                            | $ (694,354)    | $(580,052)         







American Affordable Housing II Limited Partnership



NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2001

(Unaudited)

NOTE E - TAXABLE LOSS

The Partnerships taxable loss for the year ended March 31, 2002 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the 
Operating  Partnerships and also differences between the equity method of  accounting and IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners individually.



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

Liquidity

The Partnership's primary source of funds was the proceeds of its Public Offering.  Other sources of liquidity have included (i) interest earned on working capital reserves, and (ii) cash distributions from operations of the 
Operating Partnerships in which the Partnership has invested.  Both of these sources of liquidity are available to meet the obligations of the Partnership.

The Partnership is currently accruing the annual asset management fee. Asset management fees accrued during the quarter ended June 30, 2001 were  $105,568 and total asset management fees accrued as of  June 30, 2001 were $5,254,180. Pursuant to the Partnership Agreement, such liabilities will be  deferred until the Partnership receives sales or refinancing proceeds from Operating Partnerships, which will be used to satisfy such liabilities.

The Partnership has recognized other income as of  June 30, 2001 in the  amount of $491.  Of the total, $150 represents transfer fee income. The balance represents distributions from Operating  Partnerships which the Partnership normally would record as a decrease in the  Investment in Operating Partnerships.  Due to the equity method of accounting,  the Partnership has recorded these distributions as other income.

The Partnership has recorded $5,483,827 as payable to affiliates.  This  represents advances to pay certain third party operating expenses of the Partnership, advances and/or loans to Operating Partnerships, accrued partnership management fees, and accrued overhead allocations.  These and any  future advances or accruals will be paid, without interest, from available  cash flow, reporting fees, or the proceeds of sales or refinancing of the Partnership's  interest in Operating Partnerships.

Cash flow and reporting fees will be added to the Partnership's working  capital and will be available to meet future third party obligations of the  Partnership.  The Partnership is currently pursuing, and will continue to aggressively pursue, available cash flow and reporting fees and anticipates that the amount collected will be sufficient to cover future third party  operating expenses.

Capital Resources

The Partnership received $26,501,000 in subscriptions for Units (at $1,000 per Unit) during the period February 2, 1988 to September 21, 1988 pursuant to the Public Offering, resulting in net proceeds available for investment in 
Operating Partnerships (after payment of acquisition fees and expenses and funding of a reserve) of $18,550,700. The Partnership had  committed to investments requiring cash payments of $18,613,764, all of which had been paid at June30, 2001.  At June 30, 2001 the Partnership held working capital of $61,759.









Results of Operations

As of  June 30, 2001 and 2000 the Partnership held limited partnership interests in 49  Operating Partnerships. In each instance the Apartment Complex owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit.  Occupancy of a unit in each  Apartment Complex which initially complied with the Minimum Set-Aside Test  (i.e., occupancy by tenants with incomes equal to no more than a certain  percentage of area median income) and the Rent Restriction Test (i.e., gross  rent charged tenants does not exceed 30% of the applicable income standards)  is referred to hereinafter as "Qualified Occupancy."  Each of the Operating  Partnerships and each of the respective Apartment Complexes are described more  fully in the Prospectus or applicable report on Form 8-K.  The General Partner believes that there is adequate casualty insurance on the properties.

As of  June 30, 2000 and 2001 the Qualified Occupancy of the Operating  Partnership's was 99.9 and 99.8%, respectively.  The Partnership had a total  of 49 properties at  June 30, 2001 of which 47 were at 100% Qualified Occupancy.

The Partnership had invested in a total of 49 Operating Partnerships as  of  June 30, 2001 and 2000. During the quarters ended  June 30, 2001 and 2000, the Partnership received $1,621. and $5,389, respectively, in distributions of cash flow and $35,812 and $10,818,  respectively, of reporting fees from the Operating Partnerships. Of the total  cash flow received in the quarters ended June 30, 2001 and 2000, $341 and $4,079, respectively, was recorded as miscellaneous income instead of as a  decrease in Investments in Operating Limited Partnerships, due to the equity  method of accounting.

The Partnership incurred an annual asset management fee to Boston Capital Asset Management Limited Partnership in an amount equal to 0.5% of the  aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain partnership management and reporting fees paid by  the Operating Partnerships.  The annual asset management fee incurred, net of  reporting fees received, during the quarters ended 
June 30, 2001 and 2000  was $69,756 and $94,750, respectively.



Historically, the financial statements of Rouse Stokes Rowe Housing Associates, L.P. have been prepared assuming that the Operating Partnership will continue as a going concern.  Despite high occupancy, the property suffers from cash flow deficits related to excessive operating expenses.  As a result, both of the Operating Partnership's mortgages are in technical default for non-payment and as such the entire balance has been classified as a current liability.  (The first permanent loan is payable to the stockholder of Southwark Realty, an affiliate of the Operating General Partner). To date, efforts to reduce operating expenses have not been successful. Due to its small size, the property has been unable to take advantage of efficiencies of scale, which might lower expenses and improve operations.























Results of Operations-Con't

Lovington Housing Associates, L.P. (Southview Place Apartments) continues to operate with a high vacancy rate.  As of June  30, 2001, the physical occupancy at the property was 68%.  The Management Company continues to market the units aggressively working with various area non-profit agencies & advertisers in local and surrounding area newspapers.  The local economy and tenant population was adversely impacted by the decline of local oil production.  The management company indicated that  occupancy improvements are contingent on the recovery of the local economy. Deferred maintenance, specifically interior and exterior painting, is being  funded through the replacement reserve account and operating cash as it becomes available. In 2000, three of four building exteriors were painted and the fourth building was completed in 2001.



East Ridge Associates Limited Partnership (East Ridge Estate) received a copy of a Notice of Acceleration and Demand for Payment, filed by the United States Department of Agriculture (USDA), in May 1999. The General Partner of the Operating Partnership filed an appeal with the National Appeals in November 1999 and the decision to accelerate the mortgage was upheld by the USDA National Appeals Division on January 31, 2000. Further actions on the acceleration were delayed until the appeal by the General Partner on the decision to change the Management Company from R & K Oxford to Stanford Management, LLC, an affiliated company, has been finalized.



A decision on the management agent was made in the fourth quarter of 2000, which did not allow Stanford Management, LLC to manage this property. The Operating General Partner has appealed the decision. The partnership operation has improved but continues to suffer from ongoing operating deficits, a delinquent mortgage, and under funded reserves.  Additionally, the physical condition of the property has suffered due to deferred maintenance at the property.  The exterior of the building is in poor condition and requires capital improvements, the unit interiors are in excellent condition, the common areas are in fair condition, and the landscaping needs attention. The deferred maintenance will be addressed in a workout plan, which is pending a final decision on the management agent. Maine Rural Development has allowed the property to admit non-elderly tenants that are income qualified due to a change in the demographics of the marketplace of the Southwest Harbor. Occupancy for the first half of 2001 was 97% as a result of Maine Rural Development issuing waivers to East Ridge on a case-by-case basis. The Investment General Partner will continue to monitor the negotiations between the Operating General Partner and Maine Rural Development.

Harbor Hill Associates Limited Partnership (Harbor Hill Estates) received a service letter (mortgage default notice) from United States Department of Agriculture/Rural Development (USDA/RD) on January 3, 2001.  USDA/RD has agreed not to take any further action against the partnership until an appeal by the Operating General Partner regarding a change in management is finalized.  During the fourth quarter of 2000 USDA/RD decided not to allow a transfer in management from R & K Oxford to Stanford Management, LLC, an affiliate of the Operating General Partner.  This  decision that is currently being appealed by the Operating General Partner.











Results of Operations-Con't

The partnership operation suffers from ongoing operating deficits, under funded reserves and unpaid real estate taxes.  Additionally, the physical condition of the property has suffered due to deferred maintenance at the property.  The exterior of the building is in poor condition and requires capital improvements, the common areas are in fair condition, and the landscaping needs attention. The unit interiors are well maintained.  The Operating General Partner has prepared and submitted a workout plan to the USDA/RD to address the issues at the property, including the deferred maintenance.  A decision on the workout plan is pending the decision on the Operating General Partner's appeal of the management transfer.  In addition, USDA/RD has allowed the property to admit non-elderly tenants that are income qualified due to a change in the demographics of the marketplace of Bar Harbor, ME. Occupancy for the first half of  2001 was 97%, up from 89% for the first half of 2000, as a result of USDA/RD issuing waivers to Harbor Hill on a case-by-case basis.  The Investment General Partner will continue to monitor the negotiations between the Operating General Partner and USDA/RD



















































































PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)	Exhibits

(2)	None

(4)(a)      Form of Amended and Restated Certificate and Agreement
                 of Limited Partnership and form of Subscription
                 Agreement for the Partnership

(4)(b)(i)   Certificate and Agreement of Limited Partnership of
                 the Partnership

(4)(b)(ii)  Amended Certificate and Agreement of Limited
Partnership of the Partnership

(4)(c)      Form of Certificate of Limited Partnership Interest in
                 the Partnership

(11)	None

(15)	None

(18)	None

(19)	None

(20)	None

(23)	None

(24)	None

(25)	None

(28)	None

(b)	Reports on Form 8-K

There were no reports on Form 8-K filed during the period
covered by this report.

















SIGNATURES

Pursuant to the requirements of Section 13 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.

|                      | American Affordable Housing II
|--------------------- | ------------------------------
|                      | Limited Partnership           
|                      |                               
|                      | By:                           
|                      |                               
|                      |                               
|                      |                               
|                      |                               
|                      |                               
|                      |                               
|                      |                               
|                      |                               
|Date: August 15, 2001 |                               
|                      |                               
|                      |