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


                                FORM 10-Q
(Mark One)

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


For the quarterly period ended         September 30, 2000

                                    OR

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

For the transition period from                   to



               Commission file number          0-19244


                        Krupp Government Income Trust


           Massachusetts                                 04-3089272
(State or other jurisdiction of              (IRS employer identification no.)
 incorporation or organization)


One Beacon Street, Boston, Massachusetts                    02108
(Address of principal executive offices)                  (Zip Code)


                                (617) 523-0066
             (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 the past 90 days.

Yes   X    No


<PAGE>





                       Part I.  FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

This Form 10-Q contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  Actual  results could differ  materially  from those  projected in the
forward-looking  statements as a result of a number of factors,  including those
identified herein.
<TABLE>
<CAPTION>

                        KRUPP GOVERNMENT INCOME TRUST

                                BALANCE SHEETS


                                    ASSETS
                                                                              September 30,           December 31,
                                                                                   2000                    1999
Participating Insured Mortgage Investments
 ("PIMIs") (Note 2)
<S>                                                                         <C>                    <C>
 Insured Mortgages                                                          $   59,849,372         $    60,129,492
 Additional Loans, net of impairment provision of $2,162,618                     8,350,990               8,350,990
Participating Insured Mortgages ("PIMs") (Note 2)                               47,005,385              47,331,673
Mortgage-Backed Securities and insured
 mortgage loan ("MBS") (Note 3)                                                 16,609,010              17,495,423

           Total mortgage investments                                          131,814,757             133,307,578

Cash and cash equivalents                                                        5,411,061               4,627,499
Interest receivable and other assets                                               595,686                 973,491
Prepaid acquisition fees and expenses, net
 of accumulated amortization of $6,653,725
 and $6,089,755, respectively                                                    1,679,736               2,243,706
Prepaid participation servicing fees, net of
 accumulated amortization of $2,042,766 and
 $1,834,434, respectively                                                          734,983                 943,315

           Total assets                                                     $  140,236,223         $   142,095,589

                                          LIABILITIES AND SHAREHOLDERS' EQUITY

Deferred income on Additional Loans                                         $    3,776,921         $     3,918,021
Other liabilities                                                                   18,769                  25,025

           Total liabilities                                                     3,795,690               3,943,046

Shareholders' equity (Note 4)
   Common stock, no par value; 17,510,000
   Shares authorized; 15,053,135 Shares
   issued and outstanding                                                      136,222,461             137,921,227

   Accumulated comprehensive income                                                218,072                 231,316

           Total Shareholders' equity                                          136,440,533             138,152,543

           Total liabilities and Shareholders' equity                       $  140,236,223         $   142,095,589

</TABLE>




                                         The accompanying notes are an integral
                                            part of the financial statements.


<PAGE>

<TABLE>
<CAPTION>



                               KRUPP GOVERNMENT INCOME TRUST

                       STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


                                                    For the Three Months                For the Nine Months
                                                     Ended September 30,                 Ended September 30,

                                                   2000              1999             2000              1999

Revenues:
   Interest income - PIMs
    and PIMIs:
<S>                                         <C>               <C>                 <C>             <C>
    Basic interest                          $  2,022,988      $  2,127,439        $  6,067,815    $  6,761,546
      Additional Loan interest                   141,088         2,128,724             423,589       2,316,389
      Participation interest                     111,787         2,193,485             257,517       2,268,505
   Interest income - MBS                         342,105           371,727           1,041,779       1,172,022
   Interest income - cash and
    cash equivalents                              79,316           178,998             224,355         384,162

         Total revenues                        2,697,284         7,000,373           8,015,055      12,902,624

Expenses:
   Asset management fee
    to an affiliate                              252,854           267,621             755,747         847,908
   Expense reimbursements
    to affiliates                                 66,906            67,479             189,653         153,173
   Amortization of prepaid
    fees and expenses                            257,434           793,618             772,302       1,385,349
   General and administrative                    134,083            71,201             319,019         281,055

         Total expenses                          711,277         1,199,919           2,036,721       2,667,485

Net income                                     1,986,007         5,800,454           5,978,334      10,235,139

Other comprehensive income:
   Net change in unrealized
      loss on MBS                                 29,573          (85,354)             (13,244)        (368,751)

Total comprehensive income                  $  2,015,580      $  5,715,100$       5,965,090  $    9,866,388

Basic earnings per Share                    $        .13      $        .39        $        .40    $       .68

Weighted average Shares
 outstanding                                         15,053,135                            15,053,135

</TABLE>




                                      The accompanying notes are an integral
                                         part of the financial statements.

<PAGE>
<TABLE>
<CAPTION>



                                           KRUPP GOVERNMENT INCOME TRUST

                                             STATEMENTS OF CASH FLOWS


                                                                                        For the Nine Months
                                                                                        Ended September 30,

                                                                                      2000                  1999
Operating activities:
<S>                                                                             <C>                 <C>
   Net income                                                                   $    5,978,334      $   10,235,139
   Adjustments to reconcile net income to
    net cash provided by operating activities:
      Amortization of (discounts) and premiums                                          (2,469)              2,933
      Amortization of prepaid fees and expenses                                        772,302           1,385,349
      Changes in assets and liabilities:
         Decrease in interest receivable and other assets                              377,805             189,186
         Decrease in deferred income on Additional Loans                                             (141,100)     (1,748,219)
        (Decrease) increase in other liabilities                                        (6,256)             41,520

Net cash provided by operating activities                                            6,978,616          10,105,908

Investing activities:
      Principal collections on MBS                                                     875,638           3,425,917
      Principal collections on PIMs and Insured Mortgages                              606,408             606,812
      PIM prepayment                                                                     -              14,861,957
Collections on Additional Loans                                                          -               2,844,600

Net cash provided by investing activities                                            1,482,046          21,739,286

Financing activity:
      Dividends                                                                     (7,677,100)        (34,245,895)

Net Increase (decrease) in cash and cash equivalents                                   783,562          (2,400,701)

Cash and cash equivalents, beginning of period                                       4,627,499           9,004,397

Cash and cash equivalents, end of period                                        $    5,411,061      $    6,603,696

Non Cash activities:
   Decrease in Fair Value of MBS                                                $      (13,244)     $     (368,751)


</TABLE>



                                         The accompanying notes are an integral
                                            part of the financial statements.


<PAGE>



                                            KRUPP GOVERNMENT INCOME TRUST

                                            NOTES TO FINANCIAL STATEMENTS



1.    Accounting Policies

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted in this report on Form 10-Q pursuant to the Rules
and  Regulations  of the  Securities and Exchange  Commission.  However,  in the
opinion of Berkshire Mortgage Advisors Limited Partnership (the "Advisor"),  the
Advisor  to  Krupp  Government  Income  Trust  (the  "Trust"),  the  disclosures
contained  in this report are  adequate to make the  information  presented  not
misleading.  See Notes to Financial  Statements in the Trust's Form 10-K for the
year ended December 31, 1999 for additional  information relevant to significant
accounting policies followed by the Trust.

In the opinion of the Advisor of the Trust, the accompanying unaudited financial
statements  reflect  all  adjustments   (consisting  of  only  normal  recurring
accruals)  necessary  to present  fairly the  Trust's  financial  position as of
September 30, 2000,  and the results of operations for the three and nine months
ended  September 30, 2000 and 1999, and its cash flows for the nine months ended
September 30, 2000 and 1999.

The results of operations for the three and nine months ended September 30, 2000
are not necessarily indicative of the results which may be expected for the full
year.  See  Management's  Discussion  and  Analysis of Financial  Condition  and
Results of Operations included in this report.

2.    PIMs and PIMIs

At  September  30,  2000,  the  Trust's  PIMs  and  PIMIs  had a fair  value  of
$113,807,421  and gross  unrealized  gains and losses of $343,478 and $1,741,804
respectively.  The PIMs and PIMIs have maturities  ranging from 2002 to 2034. At
September  30,  2000,  there are no insured  mortgage  loans  within the Trust's
portfolio that are delinquent of principal or interest.

The Advisor  believes  that the  impairment  provision of $2,162,618 is adequate
based on its analysis of property operations underlying the Additional Loans.

3.    MBS

At  September  30, 2000,  the Trust's MBS  portfolio  had an  amortized  cost of
$11,518,523   and   unrealized   gains  and  losses  of  $229,818  and  $11,746,
respectively.  At September 30, 2000, the Trust's  insured  mortgage loan has an
amortized cost of $4,872,415.  The MBS portfolio  including the insured mortgage
has maturities ranging from 2008 to 2035.





                                    Continued


<PAGE>


                          KRUPP GOVERNMENT INCOME TRUST

                    NOTES TO FINANCIAL STATEMENTS, Continued

<TABLE>
<CAPTION>



4.    Changes in Shareholders' Equity

      A summary of changes in shareholders' equity for the nine months ended
      September 30, 2000 is as follows:

                                           Total                                 Accumulated
                                           Common              Retained         Comprehensive       Shareholders'
                                           Stock               Earnings            Income              Equity

<S>                                   <C>                   <C>                <C>                <C>
Balance at December 31, 1999          $  137,921,227        $       -          $    231,316       $   138,152,543

Net income                                     -                5,978,334             -                 5,978,334

Dividends                                 (1,698,766           (5,978,334)            -                (7,677,100)

Change in unrealized
 loss on MBS                                   -                    -              (13,244)               (13,244)


Balance at September 30, 2000         $  136,222,461        $       -          $   218,072        $   136,440,533

</TABLE>




5.   Related Party Transactions

     The Trust received  $86,609 and $106,262 of Additional Loan Interest during
     the three  months ended  September  30, 2000 and 1999,  respectively,  from
     affiliates of the Advisor. The Trust also received  participation  interest
     of $105,743 and $78,479  from an affiliate of the Advisor  during the three
     months ended September 30, 2000 and 1999, respectively.

     The Trust received $173,544 and $225,156 of Additional Loan Interest during
     the nine  months  ended  September  30, 2000 and 1999,  respectively,  from
     affiliates of the Advisor. The Trust also received  participation  interest
     of $174,505 and $153,499  from an affiliate of the Advisor  during the nine
     months ended September 30, 2000 and 1999, respectively.



<PAGE>


Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     Liquidity and Capital Resources

     At September 30, 2000 the Trust had  liquidity  consisting of cash and cash
     equivalents,  of  approximately  $5.4  million as well as the cash  inflows
     provided by PIMs, PIMIs, MBS, cash and cash equivalents. The Trust may also
     receive  additional cash flow from the  participation  features of its PIMs
     and PIMIs.  The Trust  anticipates  that these  sources will be adequate to
     provide  the  Trust  with  sufficient  liquidity  to meet its  obligations,
     including providing dividends to its investors.

     The  most  significant   demand  on  the  Trust's  liquidity  is  quarterly
     dividends,  paid to investors of  approximately  $2.6 million,  and special
     distributions.  Funds for dividends come from interest  income  received on
     PIMs, PIMIs,  MBS, cash and cash equivalents net of operating  expenses and
     the principal  collections  received on PIMs, PIMIs and MBS. The portion of
     dividends funded from principal  collections  reduces the capital resources
     of the Trust.  As the capital  resources of the Trust  decrease,  the total
     cash flows to the Trust  will also  decrease  which may result in  periodic
     adjustments to the dividends paid to the investors.

     The Advisor  periodically reviews the dividend rate to determine whether an
     adjustment is necessary based on projected  future cash flows.  The current
     dividend rate is $.17 per Share per quarter. In general,  the Advisor tries
     to set a dividend rate that provides for level quarterly distributions.  To
     the extent quarterly  dividends do not fully utilize the cash available for
     distribution  and cash  balances  increase,  the  Advisor  may  adjust  the
     dividend rate or distribute such funds through a special distribution.

     The Trust's PIMIs funded the construction or significant  rehabilitation of
     multifamily housing,  which requires time to achieve stabilized  operations
     following the completion of the work. With this in mind, the Trust required
     those  borrowers  to escrow a portion of the  Additional  Loan  proceeds in
     reserves so funds would be available for the PIMI  Additional Loan payments
     during the  construction  and lease-up  periods.  As these reserves  become
     depleted,  full payment of the Additional Loan interest  becomes  primarily
     dependent on whether the underlying property generates sufficient operating
     cash flow to make such payments.

     In  addition to  providing  guaranteed  or insured  monthly  principal  and
     interest  payments,  the  Trust's  investments  in PIMs and PIMIs  also may
     provide  additional  income  through the  interest on the  Additional  Loan
     portion of the PIMIs as well as  participation  income  based on  operating
     cash flow and an increase in the value  realized upon the sale or refinance
     of  the  underlying   properties.   However,  these  payments  are  neither
     guaranteed  nor insured and depend upon the  successful  operations  of the
     underlying properties.

     The Trust received the second  installment of Additional Loan interest from
     two of its PIMI  investments,  Red Run and The  Seasons  during  the  third
     quarter of 2000.  The  Trust's  three other PIMI  investments,  Lifestyles,
     Mountain View and Windward Lakes operate under workout  agreements with the
     Trust that require  Additional Loan interest payments only if Surplus Cash,
     as defined by HUD, is generated through property operations.  None of these
     three  properties  generated  Surplus Cash for the year ended  December 31,
     1999 or the six months ended June 30, 2000; consequently, the Trust did not
     receive any Additional Loan interest.

     The Trust  received  participation  interest from three of its  investments
     during the nine months ended September 30, 2000. Waterford  Townhomes,  one
     of the Trust's PIM  investments,  paid  $42,731 of  participation  interest
     based  on  1999  operating  results.  Red  Run,  one  of the  Trust's  PIMI
     investments,  paid $39,673 of participation interest; $33,630 based on 1999
     operating  results  and $6,043  based on the first  half of 2000  operating
     results.  The Trust also received  $174,505 of participation  interest from
     The Seasons; $68,762 based on the second half of 1999 operating results and
     $105,743  based on the first  half of 2000.  The Trust  expects  to collect
     participation  interest based on successful 1999 operating results from the
     Lincoln Green PIM  investment  later during 2000.  Three other  properties,
     Rivergreens I, Mill Pond I and Riverview, are occupied in the low 90% range
     and  generate   sufficient  revenue  to  meet  all  cash  requirements  for
     operations and  maintenance,  but do not generate  Surplus Cash under HUD's
     definition for payment of participation interest to the Trust.

     As mentioned above,  three properties operate under workout agreements with
     the Trust.  Windward Lakes' operating results  deteriorated during 1995 and
     1996, and in early 1997 the  independent  Trustees  approved a workout with
     the borrower of the Windward Lakes PIMI, an affiliate of the Advisor of the
     Trust.  In the  workout,  the Trust  agreed to reduce the  effective  basic
     interest rate on the insured first mortgage by 2% per annum for 1997 and 1%
     per annum for 1998, 1999 and 2000. The borrower made an equity contribution
     of $133,036 to the  property  and agreed to cap the annual  management  fee
     paid to an  affiliate  at 3% of  revenues.  The  Trust's  participation  in
     current  operations  is 50% of any  Surplus  Cash as  determined  under HUD
     guidelines, and the Additional Loan interest is payable out of its share of
     Surplus  Cash.  Any unpaid  Additional  Loan  interest  accrues at 7.5% per
     annum. When the property is sold or refinanced,  the Trust will receive 50%
     of any net proceeds remaining after repayment of the insured mortgage,  the
     Additional  Loan, the interest rate relief,  accrued and unpaid  Additional
     Loan interest and the Borrower's  equity up to the point that the Trust has
     received  a  cumulative,   non-compounded   10%  preferred  return  on  its
     investment in the PIMI.

<PAGE>

     Lifestyles  operating  results  deteriorated  during  1995,  and the  Trust
     approved a two-year workout that  effectively  reduced the interest rate on
     the insured  mortgage by 1%. When that workout ended in 1997,  the property
     was not able to generate  sufficient  revenues to maintain the property and
     service the  original  interest  rate.  Consequently,  the  borrower on the
     Lifestyles  PIMI  defaulted on its May 1, 1998 debt service  payment on the
     insured first mortgage. The Trust agreed to a new workout that runs through
     2007.  Under its terms,  the Trust agreed to reduce the effective  interest
     rate on the insured first mortgage by 1.75% retroactively for 1998 to clear
     the default,  by 1.75% for 1999, and by 1.5% each year thereafter until the
     property  is  sold or  refinanced.  The  borrower  made a  $550,000  equity
     contribution,  which  has  been  escrowed,  for the  exclusive  purpose  of
     correcting  deferred  maintenance  and making capital  improvements  to the
     property. Any Surplus Cash that is generated by property operations will be
     split evenly between the Trust and the borrower.  When the property is sold
     or refinanced,  the first  $1,100,000 of any proceeds  remaining  after the
     insured  mortgage is paid off will be split 50% / 50%; the next  $1,690,220
     of proceeds will be split 75% to the Trust and 25% to the borrower; and any
     remaining  proceeds will be split 50% / 50%. The  borrower's new equity and
     the reduction in the effective  interest rate on the insured first mortgage
     will provide funds for repairs and improvements that should help reposition
     Lifestyles so it can compete more  effectively for new residents and rental
     rates. As a result of the factors  described above, the Advisor  determined
     that  the  Additional  Loan  collateralized  by the  Lifestyles  asset  was
     impaired, and the Trust recorded a valuation allowance of $1,130,346 in the
     fourth quarter of 1998 and continues to maintain that allowance.

     Mountain View is similar to Lifestyles  with respect to competitive  market
     conditions.  In June 1999,  the Trust  approved a second  workout that runs
     through  2004.  Under its terms,  the Trust agreed to reduce the  effective
     interest rate on the insured first mortgage by 1.25% retroactively for 1999
     and each year thereafter  until the property is sold or refinanced,  and to
     change the participation terms. The workout eliminated the preferred return
     feature,  forgave $288,580 of previous accruals of Additional Loan interest
     related to the first  workout,  and changed the  Trust's  participation  in
     Surplus Cash  generated by the property.  The Trust will receive 75% of the
     first $130,667 of Surplus Cash and 50% of any remaining  Surplus Cash on an
     annual  basis to pay  Additional  Loan  interest.  Unpaid  Additional  Loan
     interest  related to the second workout will accrue and be payable if there
     are  sufficient  proceeds from a sale or  refinancing  of the property.  In
     addition,  the borrower  repaid  $153,600 of the Additional Loan and funded
     approximately $54,000 to a reserve for property  improvements.  As a result
     of the factors described above, the Advisor  determined that the Additional
     Loan  collateralized  by the  Mountain  View  asset  was  impaired  and has
     recorded a valuation allowance of $1,032,272 and continues to maintain that
     allowance.

     Whether the operating  performance at any of the properties mentioned above
     provide  sufficient  cash flow from operations to pay either the Additional
     Loan interest or participation income will depend on factors that the Trust
     has little or no control over.  Should the properties be unable to generate
     sufficient cash flow to pay the Additional  Loan interest,  it would reduce
     the  Trust's  distributable  cash  flow and could  affect  the value of the
     Additional Loan collateral.

     There are contractual  restrictions on the repayment of the PIMs and PIMIs.
     During the first five years of the  investment,  borrowers  are  prohibited
     from repayment.  During the second five years, the PIM borrowers can prepay
     the insured first mortgage by paying the greater of a prepayment premium or
     the  participation due at the time of the prepayment.  Similarly,  the PIMI
     borrowers can prepay the insured first mortgage and the Additional  Loan by
     satisfying the Preferred Return obligation.  The participation features and
     Additional  Loans are neither insured nor guaranteed.  If the prepayment of
     the PIM or PIMI results from the foreclosure on the underlying  property or
     an insurance claim, the Trust would probably not receive any  participation
     income or any amounts due under the Additional Loan.

     The  Trust  has the  option  to call  certain  PIMs  and all the  PIMIs  by
     accelerating  their maturity if the loans are not prepaid by the tenth year
     after  permanent  funding.   The  Advisor  will  determine  the  merits  of
     exercising  the call  option for each PIM and PIMI as  economic  conditions
     warrant.  Such  factors  as  the  condition  of  the  asset,  local  market
     conditions, the interest rate environment and available financing will have
     an impact on these decisions.

     Results of Operations

     The net income of the Trust for the nine months  ended  September  30, 2000
     decreased by $4.3  million as compared to the nine months  ended  September
     30, 1999 due primarily to decreases in interest  income net of decreases in
     asset  management  fees to an affiliate and  amortization  expense.  Basic,
     additional loan and participation  interest income decreased in 2000 due to
     the receipt of the Audubon  Villas PIMI  repayment  during 1999.  The Trust
     received  approximately $2.0 million of participation  interest income when
     the PIMI paid off.  Interest  income on MBS  decreased  for the nine months
     ended September 30, 2000 as compared to the nine months ended September 30,
     1999 due to  principal  collections  reducing the MBS  investment  balance.
     Other  interest  income  decreased due to lower average cash balances while
     asset management fees and amortization of prepaid expenses decreased due to
     the payoff of the Audubon Villas PIMI in 1999.

<PAGE>

     The Trust's net income decreased by $3.8 million for the three months ended
     September 30, 2000 as compared to the three months ended September 30, 1999
     due primarily to the reasons discussed above.

     The  Trust  generally  funds a  portion  of its  dividends  with  principal
     collections,  which will continue to reduce the assets of the Trust thereby
     reducing the income,  generated  by the Trust in the future.  Additionally,
     asset  management  fees will  decrease as the Trust's  investments  in MBS,
     PIMS,  and insured  mortgages  continue to decline as a result of principal
     collections.

Item 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Assessment of Credit Risk

     The Trust's  investments  in insured  mortgages  and MBS are  guaranteed or
     insured by Fannie Mae, the Federal Home Loan Mortgage  Corporation (FHLMC),
     the Government  National Mortgage  Association (GNMA) and the Department of
     Housing and Urban  Development  (HUD) and  therefore the certainty of their
     cash flows and the risk of material loss of the amounts invested depends on
     the creditworthiness of these entities.

     Fannie Mae is a federally  chartered  private  corporation  that guarantees
     obligations  originated under its programs.  FHLMC is a federally chartered
     corporation that guarantees  obligations  originated under its programs and
     is  wholly-owned by the twelve Federal Home Loan Banks.  These  obligations
     are not  guaranteed  by the U.S.  Government  or the Federal Home Loan Bank
     Board.  GNMA  guarantees the full and timely payment of principal and basic
     interest on the securities it issues,  which represents  interest in pooled
     mortgages insured by HUD. Obligations insured by HUD, an agency of the U.S.
     Government, are backed by the full faith and credit of the U.S. Government.

     The Trust's  Additional  Loans have similar risks as those  associated with
     higher risk debt instruments,  including: reliance on the owner's operating
     skills,  ability to maintain occupancy levels,  control operating expenses,
     ability to maintain the properties and obtain adequate insurance  coverage.
     Operations  also may be  effected  by adverse  changes in general  economic
     conditions,   adverse  local   conditions,   and  changes  in  governmental
     regulations,  real estate zoning laws, or tax laws, and other circumstances
     over which the Trust may have little or no control.

     The Trust includes in cash and cash equivalents  approximately $5.2 million
     of Agency paper, which is issued by Government Sponsored Enterprises with a
     credit rating equal to the top rating  category of a nationally  recognized
     statistical rating organization.

     Interest Rate Risk

     The Trust's  primary  market risk exposure is to interest rate risk,  which
     can be defined as the  exposure of the  Trust's  net income,  comprehensive
     income or financial  condition to adverse  movements in interest  rates. At
     September 30, 2000,  the Trust's PIMs,  PIMIs and MBS comprise the majority
     of the Trust's assets. As such,  decreases in interest rates may accelerate
     the prepayment of the Trust's  investments.  The Trust does not utilize any
     derivatives or other  instruments to manage this risk as the Trust plans to
     hold all of its investments to expected maturity.

     The Trust monitors  prepayments and considers prepayment trends, as well as
     dividend  requirements of the Trust,  when setting regular dividend policy.
     For  MBS,  the  fund  forecasts  prepayments  based on  trends  in  similar
     securities as reported by statistical reporting entities such as Bloomberg.
     For PIMs and PIMIs,  the Trust  incorporates  prepayment  assumptions  into
     planning as individual  properties notify the Trust of the intent to prepay
     or as they mature.




<PAGE>




                               KRUPP GOVERNMENT INCOME TRUST

                                PART II - OTHER INFORMATION



Item 1.       Legal Proceedings
              Response:  None

Item 2.       Changes in Securities
              Response:  None

Item 3.       Defaults upon Senior Securities
              Response:  None

Item 4.       Submission of Matters to a Vote of Security Holders
              Response:  None

Item 5.       Other Information
              Response:  None

Item 6.       Exhibits and Reports on Form 8-K
              Response:  None


<PAGE>


                                    SIGNATURE



     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.



                                    Krupp Government Income Trust
                                         (Registrant)



                                    BY:    / s / Robert A. Barrows

                                          Robert A. Barrows
                                          Treasurer and Chief Accounting Officer
                                          of Krupp Government Income Trust














DATE: October 29, 2000

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