March 8, 2000

United States

Securities and Exchange Commission
Washington, D.C.  20549


RE:   Century Properties Fund XVIII
      Form 10-KSB
      File No. 0-11934

To Whom it May Concern:

The  accompanying  Form 10-KSB for the year ended  December 31, 1999 describes a
change in the method of  accounting to  capitalize  exterior  painting and major
landscaping,   which  would  have  been  expensed  under  the  old  policy.  The
Partnership believes that this accounting principle change is preferable because
it  provides a better  matching  of  expenses  with the  related  benefit of the
expenditures and it is consistent with industry practice and the policies of the
Managing General Partner.

Please do not hesitate to contact the undersigned with any questions or comments
that you might have.

Very truly yours,




Stephen Waters
Real Estate Controller


<PAGE>


-------------------------------------------------------------------------------

              FORM 10-KSB -- ANNUAL OR TRANSITIONAL REPORT UNDER

                               SECTION 13 OR 15(d)

                                   Form 10-KSB

(Mark One)
[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934   [No Fee Required]

                 For the fiscal year ended December 31, 1999

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 [No Fee Required]

             For the transition period from _________to _________

                         Commission file number 0-11934

                        CENTURY PROPERTIES FUND XVIII
                (Name of small business issuer in its charter)

         California                                             94-2834149
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                          55 Beattie Place, PO Box 1089
                       Greenville, South Carolina 29602
                   (Address of principal executive offices)

                   Issuer's telephone number (864) 239-1000

        Securities registered under Section 12(b) of the Exchange Act:

                                      None

        Securities registered under Section 12(g) of the Exchange Act:

                      Units of Limited Partnership Interest

                                (Title of class)

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

Yes X  No___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of the  registrant's  knowledge  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB.

State issuer's revenues for its most recent fiscal year.  $5,048,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 1999. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None

------------------------------------------------------------------------------

                                     PART I

Item 1.  Description of Business

Century  Properties Fund XVIII (the "Partnership" or "Registrant") was organized
in July 1982,  as a California  limited  partnership  under the Uniform  Limited
Partnership Act of the California  Corporations Code. Fox Partners, a California
general  partnership,  is the  general  partner of the  Registrant.  The general
partners of Fox Partners are Fox Capital  Management  Corporation (the "Managing
General  Partner" or "FCMC"),  a California  corporation,  Fox Realty  Investors
("FRI"),  a California  general  partnership,  and Fox Partners 82, a California
general  partnership.  NPI Equity Investments II, Inc. ("NPI Equity"), a Florida
Corporation,  is the  Managing  General  Partner of FRI.  The  Managing  General
Partner and NPI Equity are  subsidiaries of Apartment  Management and Investment
Company ("AIMCO"), a publicly traded real estate investment trust (See "Transfer
of Control").  The  Partnership  agreement  provides that the  Partnership is to
terminate on December 31, 2020, unless terminated prior to such date.

The  principal  business  of the  Registrant  is to operate and hold real estate
properties for investment.  From February 1983 to September 1983, the Registrant
offered and sold pursuant to a Registration  Statement filed with the Securities
and Exchange  Commission,  75,000  Units of Limited  Partnership  Interest  (the
"Units") at a purchase price of $1,000 per Unit for an aggregate of $75,000,000.
The net proceeds of this offering were used to acquire  twelve  income-producing
real  estate  properties.  The  Registrant's  original  property  portfolio  was
geographically  diversified  with  properties  acquired  in  seven  states.  The
Registrant's  acquisition activities were completed in June 1984 and since then,
the principal activity of the Registrant has been managing its portfolio. In the
period from 1987  through  February  1994,  ten  properties  were either sold or
otherwise  disposed.  The Registrant  continues to own and operate two remaining
properties. See "Item 2. Description of Properties".

The  Partnership  has no full time  employees.  The Managing  General Partner is
vested with full authority as to the general  management and  supervision of the
business and affairs of the  Partnership.  The Limited Partners have no right to
participate in the management or conduct of such business and affairs.  Property
management  services  were  performed  at  the  Partnership's  properties  by an
affiliate of the Managing General Partner.

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Partnership's properties.  The number and quality of competitive properties,
including  those which may be managed by an affiliate  of the  Managing  General
Partner,  in such market area could have a material  effect on the rental market
for the  apartments  at the  Registrant's  properties  and the rents that may be
charged  for  such  apartments.  While  the  Managing  General  Partner  and its
affiliates  own and/or  control a significant  number of apartment  units in the
United  States  such  units  represent  an  insignificant  percentage  of  total
apartment units in the United States and competition for apartments is local.

Both  the  income  and  expenses  of  operating  the  properties  owned  by  the
Partnership are subject to factors outside of the Partnership's control, such as
changes in the supply and demand for similar  properties  resulting from various
market  conditions,  increases/decreases  in unemployment or population  shifts,
changes in the availability of permanent mortgage  financing,  changes in zoning
laws,  or changes in patterns or needs of users.  In  addition,  there are risks
inherent in owning and operating residential  properties because such properties
are  susceptible to the impact of economic and other  conditions  outside of the
control of the Partnership.

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations might adversely affect the properties
owned by the Partnership.

The Partnership  monitors its properties for evidence of pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental  testing has been performed which resulted in no material  adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

A further description of the Partnership's business is included in "Management's
Discussion and Analysis or Plan of Operation"  included in "Item 6" of this Form
10-KSB.

Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation  (the "Insignia  Merger").  As a result,  AIMCO
acquired 100% ownership  interest in the Managing General Partner.  The Managing
General  Partner does not believe that this  transaction  has had or will have a
material effect on the affairs and operations of the Partnership.

Item 2.  Description of Properties:

The following table sets forth the Partnership's investment in properties:

                             Date of

Property                    Purchase   Type of Ownership        Use

Overlook Point Apartments     07/83   Fee ownership          Apartments
                                       subject
  Salt Lake City, Utah                to first mortgage      304 units

Oak Run Apartments            11/83   Fee ownership          Apartments
                                      subject
  Dallas, Texas                       to first mortgage      420 units
                                       (1)

(1)   The property was held by Oak Run, LLC in which the Registrant was the sole
      owner.  Effective  December  1999,  Oak  Run  LLC's  interest  in Oak  Run
      Apartments was  transferred to Oak Run, LP in which the Registrant  owns a
      99% limited  partnership  interest.  The general partner of Oak Run, LP is
      Oak Run GP, LLC which is wholly-owned by the Registrant.


<PAGE>



Schedule of Properties:

Set forth below for each of the  Registrant's  properties is the gross  carrying
value,  accumulated  depreciation,  depreciable life, method of depreciation and
Federal tax basis.

                         Carrying Accumulated                   Federal

Property                  Value   Depreciation  Rate   Method  Tax Basis
--------                  -----   ------------  ----   ------  ---------
                            (in thousands)                        (in
                                                               thousands)

Overlook           Point $10,647    $ 5,017   5-30 yrs  (1)     $ 2,005
Apartments
Oak Run Apartments        17,217      6,177   5-30 yrs  (1)       6,382
                          ------     ------                      ------
                         $27,864    $11,194                     $ 8,387
                          ======     ======                      ======

(1)   Straight-line.

See "Item 7. Financial Statements,  Note A" to the financial statements included
in "Item 7" for a description  of the  Partnership's  depreciation  policy and "
Item 7. Financial Statements, Note I - Change in Accounting Principle."

Schedule of Property Indebtedness:
---------------------------------

The  following  table  sets  forth  certain  information  relating  to the loans
encumbering the Registrant's properties.

                     Principal                                   Principal
                    Balance At     Stated                          Balance
                   December 31,   Interest  Period   Maturity      Due At
      Property        1999          Rate   Amortized   Date       Maturity (1)
      --------        ----          ----   ---------   ----       --------
                (in  thousands)                                (in thousands)

Overlook Point Apts   $ 8,860      6.33%   30 years  09/2005     $ 8,127
Oak Run Apartments     10,363      7.36%   30 years  10/2004       9,728
                       ------                                     ------
                      $19,223                                    $17,855
                       ======                                     ======

(1)   See "Item 7. Financial Statements, Note C" for information with respect to
      the  Registrant's  ability to prepay  these loans and other more  specific
      details as to the terms of the loans.

All mortgage agreements include non-recourse provisions which limit the lenders'
remedies in the event of default to the specific property  collateralizing  each
loan.

In August 1998, the Partnership refinanced the mortgage indebtedness encumbering
Overlook Point Apartments.  The total indebtedness  refinanced was approximately
$7,907,000. The new indebtedness, in the principal amount of $9,000,000, carries
a stated  interest rate of 6.33% per annum and is being amortized over 30 years,
with a balloon  payment due September 1, 2005. The proceeds from the refinancing
enabled the  Partnership  to pay-off  its  previous  first  mortgage  note.  The
remaining proceeds were distributed to partners during 1998 and 1999.


<PAGE>



Schedule of Rental Rates and Occupancy:

Average annual rental rate and occupancy for 1999 and 1998 for each property:

                                 Average Annual        Average Annual
                                  Rental Rates           Occupancy
                                  ------------           ---------
                                   (per unit)
 Property                      1999        1998       1999      1998
 --------                      ----        ----       ----      ----

 Overlook Point Apartments   $ 7,433     $ 7,296      96%        93%
 Oak Run Apartments            7,108       6,805      92%        92%

The Managing  General  Partner  attributes the increase in occupancy at Overlook
Point Apartments to more aggressive marketing efforts and exterior  improvements
completed during the year to enhance the property's curb appeal.

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly  competitive.  All of the  properties of the  Partnership  are subject to
competition  from other  apartment  complexes in the area. The Managing  General
Partner  believes  that  all of  the  properties  are  adequately  insured.  The
multi-family  residential  properties'  lease terms are for one year or less. No
individual  tenant leases 10% or more of the available  rental space. All of the
properties are in good physical  condition,  subject to normal  depreciation and
deterioration as is typical for assets of this type and age.

Real Estate Taxes and Rates:

Real estate taxes and rates in 1999 for each property were:

                                1999          1999
                              Billing         Rate
                          (in thousands)

Overlook Point Apartments       $  99         1.45%
Oak Run Apartments                357         2.58%

Capital Improvements:

Overlook Point Apartments:  The Partnership completed  approximately $394,000 in
capital  expenditures  at Overlook  Point  Apartments  as of December  31, 1999,
consisting primarily of flooring, appliances,  structural improvements,  parking
lot upgrades,  major landscaping and roofing projects.  These  improvements were
funded from cash flow and  replacement  reserves.  The  Partnership is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The  minimum  amount to be  budgeted is expected to be $300 per unit or $91,200.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

Oak Run Apartments:  The Partnership completed approximately $327,000 in capital
expenditures at Oak Run Apartments as of December 31, 1999, consisting primarily
of flooring, appliances, structural enhancements, interior improvements, parking
lot upgrades, air conditioning and swimming pool upgrades and landscaping. These
improvements  were  funded  from  cash  flow  and  replacement   reserves.   The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property for the upcoming year. The minimum amount to be budgeted is expected to
be $300 per unit or $126,000. Additional improvements may be considered and will
depend on the physical condition of the property as well as replacement reserves
and anticipated cash flow generated by the property.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  and  Partnership  reserves.  To the extent that such  budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.

Item 3.  Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  the Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Item 7. Financial  Statements,  Note B - Transfer of Control").  The plaintiffs
seek monetary damages and equitable relief,  including  judicial  dissolution of
the  Partnership.  On June 25, 1998, the Managing General Partner filed a motion
seeking  dismissal  of the action.  In lieu of  responding  to the  motion,  the
plaintiffs have filed an amended  complaint.  The Managing General Partner filed
demurrers to the amended  complaint which were heard February 1999.  Pending the
ruling on such  demurrers,  settlement  negotiations  commenced.  On November 2,
1999,  the parties  executed  and filed a  Stipulation  of  Settlement  settling
claims,  subject to final court  approval,  on behalf of the Partnership and all
limited partners who own units as of November 3, 1999.  Preliminary  approval of
the  settlement  was obtained on November 3, 1999 from the Superior Court of the
State of  California,  County of San Mateo,  at which time the Court set a final
approval  hearing for December 10, 1999.  Prior to the December 10, 1999 hearing
the Court received various  objections to the settlement,  including a challenge
to the Court's preliminary  approval based upon the alleged lack of authority of
class  plaintiffs'  counsel to enter the  settlement.  On December 14, 1999, the
Managing General Partner and its affiliates  terminated the proposed settlement.
Certain  plaintiffs  have filed a motion to disqualify  some of the  plaintiffs'
counsel in the action.  The Managing  General  Partner does not anticipate  that
costs  associated with this case will be material to the  Partnership's  overall
operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

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

During the quarter ended December 31, 1999, no matter was submitted to a vote of
unit holders through the solicitation of proxies or otherwise.


<PAGE>


                                     PART II

Item 5. Market for the Partnership's Common Equity and Related Security
        Holder Matters

The  Partnership,  a  publicly-held  limited  partnership,  sold 75,000  Limited
Partnership Units aggregating $75,000,000.  The Partnership currently has 75,000
units  outstanding held by 3,840 Limited  Partners of record.  Affiliates of the
Managing  General Partner owned 37,062 or 49.42% at December 31, 1999. No public
trading market has developed for the Units,  and it is not anticipated that such
a market will develop in the future.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 1998 and 1999 as well as the subsequent  period through
March 1, 2000:

                                                  Distributions
                                                             Per Limited
                                                             Partnership
                                           Aggregate            Unit

1/1/98 - 12/31/98                       $1,593,000(1)          $21.03

1/1/99 - 12/31/99                       $1,620,000(1)          $21.39

1/1/00 - 3/1/00                            220,000(1)          $ 2.90

(1)   Distributions  were made from prior  cumulative  undistributed  sale and
      refinancing proceeds.  See Item 6. Capital Resources and liquidity.

Future cash  distributions  will depend on the levels of net cash generated from
operations, the availability of cash reserves and the timing of debt maturities,
refinancings and /or property sales. The  Partnership's  distribution  policy is
reviewed on a semi-annual  basis. There can be no assurance,  however,  that the
Partnership  will generate  sufficient  funds from  operations,  after  required
capital expenditures,  to permit any additional distributions to its partners in
2000 or subsequent  periods.  See "Item 2.  Description  of Properties - Capital
Improvements" for information  relating to anticipated  capital  expenditures at
the properties.

Several tender offers were made by various parties,  including affiliates of the
Managing  General  Partner,  during the fiscal years ended December 31, 1999 and
1998. As a result of these tender offers, AIMCO and its affiliates currently own
37,062 units of limited partnership units in the Partnership representing 49.42%
of the outstanding  units. It is possible that AIMCO or its affiliates will make
one  or  more  additional  offers  to  acquire  additional  limited  partnership
interests in the  Partnership for cash or in exchange for units in the operating
partnership  of AIMCO.  Consequently,  AIMCO is in a position  to  significantly
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the units it acquired in a manner  favorable
to the interest of the Managing  General  Partner  because of their  affiliation
with the Managing General Partner.


<PAGE>



Item 6.  Management's Discussion and Analysis or Plan of Operation

The  matters  discussed  in this Form  10-KSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-KSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the  Registrant's  business and results of  operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operation.  Accordingly,  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.

This  item  should  be read  in  conjunction  with  the  consolidated  financial
statements and other items contained elsewhere in this report.

Results of Operations

The Registrant's  net income for year ended December 31, 1999 was  approximately
$540,000 as compared to  approximately  $442,000 for the year ended December 31,
1998. (See "Item 7. Financial Statements,  Note D" for a reconciliation of these
amounts to the Registrant's federal taxable income.) Net income increased due to
an  increase in total  revenues,  which was  partially  offset by an increase in
total expenses. The increase in total revenues is attributable to an increase in
rental  income,  which was partially  offset by a decrease in other income.  The
increase in rental income is the result of an increase in average  annual rental
rates at both investment  properties as well as an increase in average occupancy
at  Overlook  Point  Apartments.  Other  income  decreased  due to a decrease in
interest income resulting from a decline in cash balances.

Total   expenses   increased   primarily   due  to   increases  in  general  and
administrative  expenses,  depreciation and property taxes, which were partially
offset  by   decreases  in  operating   and   interest   expense.   General  and
administrative  expenses increased  primarily due to the first time payment of a
Corporation  Franchise  Tax to the  state of Texas by Oak Run,  LLC,  a  limited
liability  company  wholly-owned by the  Partnership.  In addition,  legal costs
increased due to the legal costs  associated with the Nuanes matter during 1999.
The  increase  in  depreciation  expense is the result of the  amounts  spent on
capital improvements and replacements during 1999 and 1998. Property tax expense
increased due to an increase in the tax rate at Overlook Point  Apartments.  The
decrease  in  operating  expense is  primarily  attributable  to a  decrease  in
contract  services  as well as the  completion  of parking  lot  repairs at both
properties  and swimming pool repairs at Overlook  Point  Apartments  during the
year ended  December  31,  1998.  Interest  expense  decreased  as the result of
refinancing the mortgage  encumbering  Overlook Point Apartments in August 1998,
which decreased the interest rate on the debt.

Included in general and  administrative  expenses at both  December 31, 1999 and
1998 are management reimbursements to the Managing General Partner allowed under
the Partnership Agreement. In addition,  costs associated with the quarterly and
annual  communications  with  investors and  regulatory  agencies and the annual
audit required by the Partnership Agreement are also included.

In August 1998, the Partnership refinanced the mortgage indebtedness encumbering
Overlook Point Apartments.  The total indebtedness  refinanced was approximately
$7,907,000. The new indebtedness, in the principal amount of $9,000,000, carries
a stated  interest rate of 6.33% per annum and is being amortized over 30 years,
with a balloon  payment due September 1, 2005. The proceeds from the refinancing
enabled the Partnership to pay-off its previous first mortgage note.

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies of the Managing General  Partner.  The effect of the change in 1999 was
to increase net income by approximately  $102,000 ($1.23 per limited partnership
unit). The cumulative effect, had this change been applied to prior periods,  is
not material.  The accounting  principle  change will not have an effect on cash
flow,  funds available for  distribution or fees payable to the Managing General
Partner and affiliates.

As part of the ongoing  business plan of the  Partnership,  the Managing General
Partner monitors the rental market  environment of its investment  properties to
assess the feasibility of increasing rents,  maintaining or increasing occupancy
levels and protecting the Partnership from increases in expense. As part of this
plan, the Managing  General Partner attempts to protect the Partnership from the
burden of  inflation-related  increases  in  expenses  by  increasing  rents and
maintaining a high overall  occupancy  level.  However,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

Capital Resources and Liquidity

At  December  31,  1999,  the  Registrant  had  cash  and  cash  equivalents  of
approximately  $462,000 as compared to approximately  $1,477,000 at December 31,
1998. Cash and cash equivalents decreased approximately  $1,015,000 for the year
ended December 31, 1999. The decrease in cash and cash  equivalents is primarily
due to  approximately  $1,854,000  of cash  used  in  financing  activities  and
approximately  $634,000 of cash used in  investing  activities,  which more than
offset approximately  $1,473,000 of cash provided by operating activities.  Cash
used in  financing  activities  consisted  of  distributions  to  partners,  and
payments  of  principal  made  on the  mortgages  encumbering  the  Registrant's
properties.  Cash used in investing activities consisted of capital improvements
and  replacements,  partially offset by net withdrawals from restricted  escrows
maintained by the mortgage  lender.  The Registrant  invests its working capital
reserves in money market accounts.

An  affiliate  of  the  Managing  General  Partner  has  made  available  to the
Partnership  a  credit  line  of  up to  $150,000  per  property  owned  by  the
Partnership. At the present time, the Partnership has no outstanding amounts due
under this line of credit.  Based on present plans, the Managing General Partner
does not anticipate  the need to borrow in the near future.  Other than cash and
cash equivalents,  the line of credit is the Partnership's only unused source of
liquidity.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with federal,
state, and local legal and regulatory requirements. The Partnership is currently
evaluating  the capital  improvement  needs of the  properties  for the upcoming
year.  The minimum to be  budgeted is expected to be $300 per unit or  $217,200.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the properties as well as replacement reserves and anticipated cash
flow generated by the properties.

The  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness of $19,223,000 is amortized over thirty years with balloon payments
of  $8,127,000   and   $9,728,000  due  on  September  2005  and  October  2004,
respectively.  The  Managing  General  Partner  may  attempt to  refinance  such
indebtedness  and/or sell the properties  prior to such maturity  dates.  If the
properties cannot be refinanced or sold for a sufficient amount, the Partnership
may risk losing such properties through foreclosure.

Cash  distributions  of prior  cumulative  undistributed  sale  and  refinancing
proceeds of approximately  $1,620,000  (approximately  $1,604,000 to the limited
partners or $21.39 per limited  partnership unit) and $1,593,000  (approximately
$1,577,000 to the limited partners or $21.03 per limited  partnership unit) were
made during the years ended December 31, 1999 and 1998, respectively. Subsequent
to  December  31,  1999 the  Partnership  declared  and paid a  distribution  of
approximately $220,000 to the partners. Future cash distributions will depend on
the levels of net cash  generated  from  operations,  the  availability  of cash
reserves and the timing of debt maturities,  refinancings and/or property sales.
The Partnership's  distribution policy is reviewed on a semi-annual basis. There
can be no assurance,  however,  that the  Partnership  will generate  sufficient
funds  from  operations  after  required  capital  expenditures  to  permit  any
additional distributions to its partners in 2000 or subsequent periods.

Year 2000 Compliance

General Description

The Year 2000 issue is the result of computer  programs  being written using two
digits rather than four digits to define the applicable year. The Partnership is
dependent  upon the Managing  General  Partner and its affiliates for management
and  administrative  services  ("Managing  Agent").  Any of the Managing Agent's
computer programs or hardware that had date-sensitive software or embedded chips
might have  recognized  a date using "00" as the year 1900  rather than the year
2000.  This could have resulted in a system failure or  miscalculations  causing
disruptions of operations,  including, among other things, a temporary inability
to process  transactions,  send invoices,  or engage in similar normal  business
activities.

Computer Hardware, Software and Operating Equipment

In 1999,  the Managing  Agent  completed  all phases of its Year 2000 program by
completing  the  replacement  and repair of any  hardware or software  system or
operating  equipment that was not yet Year 2000 compliant.  The Managing Agent's
hardware  and software  systems and its  operating  equipment  are now Year 2000
compliant.  No  material  failure or  erroneous  results  have  occurred  in the
Managing Agent's computer  applications  related to the failure to reference the
Year 2000 to date.

Third Parties

To  date,  the  Managing  Agent  is not  aware of any  significant  supplier  or
subcontractor  (external agent) or financial institution of the Partnership that
has a Year 2000 issue that  would  have a material  impact on the  Partnership's
results of operations,  liquidity or capital  resources.  However,  the Managing
Agent  has no means of  ensuring  or  determining  the Year 2000  compliance  of
external  agents.  At this time, the Managing Agent does not believe that a Year
2000 issue of any  non-compliant  external agent will have a material  impact on
the Partnership's financial position or results of operations.

Costs

The total cost of the Managing Agent's Year 2000 project was approximately  $3.2
million and was funded from operating cash flows.

Risks Associated with the Year 2000

The Managing  Agent  completed all necessary  phases of its Year 2000 program in
1999,  and did not  experience  system or  equipment  malfunctions  related to a
failure to reference the Year 2000. The Managing  Agent or Partnership  have not
been  materially  adversely  effected by  disruptions  in the economy  generally
resulting from the Year 2000 issue.

At this  time,  the  Managing  Agent  does not  believe  that the  Partnership's
businesses,  results of  operations  or financial  condition  will be materially
adversely effected by the Year 2000 issue.

Contingency Plans Associated with the Year 2000

The  Managing  Agent has not had to implement  contingency  plans such as manual
workarounds or selecting new relationships for its banking or elevator operation
activities in order to avoid the Year 2000 issue.


<PAGE>


Item 7.  Financial Statements

CENTURY PROPERTIES FUND XVIII

LIST OF FINANCIAL STATEMENTS

      Report of Ernst & Young, LLP Independent Auditors

      Consolidated Balance Sheet - December 31, 1999

      Consolidated  Statements of  Operations - Years ended  December 31, 1999
      and 1998

      Consolidated  Statements of Changes in Partners' (Deficit) Capital - Years
      ended December 31, 1999 and 1998

      Consolidated  Statements  of Cash Flows - Years ended  December 31, 1999
      and 1998

      Notes to Consolidated Financial Statements


<PAGE>




              Report of Ernst & Young LLP, Independent Auditors



The Partners
Century Properties Fund XVIII

We  have  audited  the  accompanying   consolidated  balance  sheet  of  Century
Properties  Fund XVIII as of December  31,  1999,  and the related  consolidated
statements of operations,  changes in partners' (deficit) capital and cash flows
for each of the two years in the period ended December 31, 1999. These financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made  by the  Partnership's  management,  as  well  as  evaluating  the  overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the consolidated financial position of Century Properties
Fund XVIII at December 31, 1999, and the consolidated  results of its operations
and its cash flows for each of the two years in the period  ended  December  31,
1999, in conformity with accounting  principles generally accepted in the United
States.

As discussed in Note I to the consolidated financial statements, the Partnership
changed its method of accounting to capitalize the cost of exterior painting and
major landscaping effective January 1, 1999.

                                                         /s/ ERNST & YOUNG LLP


Greenville, South Carolina
February 21, 2000


<PAGE>




                          CENTURY PROPERTIES FUND XVIII

                           CONSOLIDATED BALANCE SHEET

                       (in thousands, except unit data)

                                December 31, 1999

Assets

   Cash and cash equivalents                                      $   462
   Receivables and deposits                                           454
   Restricted escrows                                                 154
   Other assets                                                       337
   Investment properties (Notes C and F):
      Land                                           $  7,296
      Buildings and related personal property          20,568
                                                      -------
                                                       27,864

      Less accumulated depreciation                   (11,194)     16,670
                                                      -------      ------
                                                                  $18,077

Liabilities and Partners' (Deficit) Capital
Liabilities

   Accounts payable                                               $    62
   Other liabilities                                                  233
   Accrued property taxes                                             366
   Tenant security deposit liabilities                                 70
   Mortgage notes payable (Notes C and F)                          19,223

Partners' (Deficit) Capital

   General partner                                   $  (6,297)
   Limited partners (75,000 units
      issued and outstanding)                            4,420      (1,877)
                                                        ------      ------

                                                                  $ 18,077

          See Accompanying Notes to Consolidated Financial Statements
<PAGE>



                          CENTURY PROPERTIES FUND XVIII

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                       (in thousands, except unit data)







                                                Years Ended December 31,
                                                     1999       1998

Revenues:
   Rental income                                    $4,790     $4,616
   Other income                                        258        277
                                                     -----      -----
      Total revenues                                 5,048      4,893
                                                     -----      -----

Expenses:
   Operating                                         1,623      1,644
   General and administrative                          290        208
   Depreciation                                        721        696
   Interest                                          1,404      1,469
   Property tax                                        470        434
                                                     -----      -----

      Total expenses                                 4,508      4,451
                                                     -----      -----

Net income                                          $  540     $  442
                                                     =====      =====

Net income allocated to general partner (9.9%)      $   53     $   44

Net income allocated to limited partners (90.1%)       487        398
                                                     -----      -----

                                                    $  540     $  442
                                                     =====      =====

Net income per limited partnership unit             $ 6.49     $ 5.31
                                                     =====      =====

Distributions per limited partnership unit          $21.39     $21.03
                                                     =====      =====

          See Accompanying Notes to Consolidated Financial Statements
<PAGE>


                        CENTURY PROPERTIES FUND XVIII
      CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                       (in thousands, except unit data)



                                   Limited
                                 Partnership  General   Limited
                                    Units     Partner   Partners   Total

Original capital
    contributions                   75,000    $    --    $75,000   $75,000
                                    ======     ======     ======    ======

Partners' (deficit) capital at
   December 31, 1997                75,000    $(6,362)   $ 6,716   $   354

Distributions to partners               --        (16)    (1,577)   (1,593)

Net income for the year ended
   December 31, 1998                    --         44        398       442
                                    ------     ------     ------     -----

Partners' (deficit) capital at
   December 31, 1998                75,000     (6,334)     5,537      (797)

Distributions to partners               --        (16)    (1,604)   (1,620)

Net income for the year
   ended December 31, 1999              --         53        487       540
                                    ------     ------     ------    ------

Partners' (deficit) capital
   at December 31, 1999             75,000    $(6,297)   $ 4,420   $(1,877)
                                    ======     ======     ======    ======

          See Accompanying Notes to Consolidated Financial Statements
<PAGE>


                          CENTURY PROPERTIES FUND XVIII

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                (in thousands)

                                                    Year Ended December 31,
                                                         1999      1998

Cash flows from operating activities:

  Net income                                             $ 540      $ 442
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                            721        696
   Amortization of loan costs                               71         43
   Change in accounts:
     Receivables and deposits                               47       (397)
     Other assets                                           (5)        (9)
     Accounts payable                                       41        (41)
     Other liabilities                                      56         10
     Accrued property taxes                                 18         53
     Tenant security deposit liabilities                   (16)         6
                                                        ------     ------

      Net cash provided by operating activities          1,473        803
                                                        ------     ------

Cash flows from investing activities:

  Property improvements and replacements                  (721)      (284)
  Net withdrawals from(deposits to)restricted               87       (210)
                                                        ------    -------
  escrows

      Net cash used in investing activities               (634)      (494)
                                                        ------    -------

Cash flows from financing activities:

  Proceeds from mortgage note payable                       --      9,000
  Repayment of mortgage note payable                        --     (7,907)
  Loan costs paid                                           --       (171)
  Payments on mortgage notes payable                      (234)      (186)
  Distributions to partners                             (1,620)    (1,593)
                                                        ------     ------

      Net cash used in financing activities             (1,854)      (857)
                                                        ------     ------

Net decrease in cash and cash equivalents               (1,015)      (548)

Cash and cash equivalents at beginning of year           1,477      2,025
                                                        ------     ------

Cash and cash equivalents at end of year              $    462    $ 1,477
                                                        ======     ======

Supplemental disclosure of cash flow information:

  Cash paid for interest                               $ 1,443    $ 1,433
                                                        ======     ======

          See Accompanying Notes to Consolidated Financial Statements

<PAGE>




                                       19

                          CENTURY PROPERTIES FUND XVIII

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note A - Organization and Significant Accounting Policies

Organization:  Century Properties Fund XVIII (the "Partnership" or "Registrant")
is a  California  limited  partnership  organized  in July 1982,  to acquire and
operate residential  apartment complexes.  The Partnership's  general partner is
Fox Partners.  The general  partners of Fox Partners are Fox Capital  Management
Corporation  (the "Managing  General  Partner" or "FCMC"),  Fox Realty Investors
("FRI"),  and Fox  Partners 82. The Managing  General  Partner,  as well as, the
managing  general  partner of FRI, are  affiliates of Apartment  Investment  and
Management Company ("AIMCO"). See "Note B - Transfer of Control". As of December
31, 1999, the Partnership  operates two residential  apartment complexes located
in Texas and Utah. The Partnership Agreement provides that the Partnership is to
terminate  on  December  31,  2020  unless  terminated  prior to such date.  The
directors and officers of the Managing  General  Partner also serve as executive
officers of AIMCO.

Principles of Consolidation:  The Partnership's financial statements include the
accounts of the Partnership  and its  wholly-owned  partnership,  Oak Run LP the
entity which holds title to Oak Run Apartments.

Allocations to Partners:  Net income, losses and cash available for distribution
(excluding  those arising from the occurrence of sales or  dispositions)  of the
Partnership  will be  allocated  (i) 9% to the  General  Partner  and  (ii)  the
remainder allocated 1% to the General Partner and 99% to the Limited Partners on
an annual basis.

In accordance  with the Partnership  Agreement,  any gain from the sale or other
disposition  of  Partnership  properties  shall be  allocated;  (i) first to the
General  Partner to the extent it is entitled to receive  distributions  of cash
pursuant to the above and from the sale or disposition of properties  (ii) next,
until such time as the  General  Partner  does not have a deficit in its capital
account,  10% to the General  Partner and 90% to the  Limited  Partnership  Unit
Holders, and (iii) to the Limited Partnership Unit Holders.

Cash from  sales or other  dispositions,  or  refinancing  and  working  capital
reserves are distributed 99% to the Limited  Partnership  Unit Holders and 1% to
the General Partner, until: (i) each Limited Partnership Unit Holder receives an
amount which equals the total of their original invested capital contributed for
his Limited Partnership Units and (ii) a sum equal to 8% per year, as determined
on a cumulative,  non-compounded  basis, on the Adjusted  Invested  Capital,  as
adjusted from time to time, of such Limited Partnership Unit Holder,  calculated
from the first day of the month in which he was  admitted as a Limited  Partner.
Thereafter,  the General  Partner will receive 15% of any  additional  cash from
sales or refinancing and working capital reserve available for distribution and,
finally,  the remainder of such being  allocated 99% to the Limited  Partnership
Unit  Holders and 1% to the General  Partner.  Upon sale of all  properties  and
termination  of  the  Partnership,  the  General  Partner  may  be  required  to
contribute  certain funds to the  Partnership in accordance with the Partnership
Agreement.

Depreciation:  Depreciation is calculated by the  straight-line  method over the
estimated  lives  of  the  rental  properties  and  related  personal  property.
Effective  January 1, 1999 the  Partnership  changed its method of accounting to
capitalize the cost of painting and major landscaping (Note I).

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand and in
banks and money market accounts.  At certain times, the amount of cash deposited
at a bank may exceed the limit on insured deposits.

Available Line of Credit:  An affiliate of the Managing General Partner has made
available to the  Partnership a credit line of up to $150,000 per property owned
by the  Partnership.  At the present time,  the  Partnership  has no outstanding
amounts  due under this line of credit.

Security Deposits:  The Partnership  requires security deposits from lessees for
the  duration of the lease and such  deposits are  included in  receivables  and
deposits.  The security deposits are refunded when the tenant vacates,  provided
the tenant has not damaged its space and is current on its rental payments.

Leases: The Partnership  generally leases apartment units for twelve-month terms
or less. The Partnership recognizes income as earned on its leases. In addition,
the Managing  General  Partner's  policy is to offer rental  concessions  during
particularly  slow months or in response to heavy competition from other similar
complexes  in the  area.  Concessions  are  charged  against  rental  income  as
incurred.

Loan  Costs:  Loan  costs  of  $415,000  are  included  in other  assets  in the
accompanying   consolidated   balance  sheet  and  are  being   amortized  on  a
straight-line  basis  over  the  life  of  the  loans.  At  December  31,  1999,
accumulated amortization is $122,000.  Amortization of loan costs is included in
interest expense in the accompanying consolidated statement of operations.

Investment Properties:  Investment properties consist of two apartment complexes
and are  stated  at cost.  Acquisition  fees are  capitalized  as a cost of real
estate.  In accordance with Financial  Accounting  Standards Board Statement No.
121,  "Accounting  for the  Impairment of Long-Lived  Assets and for  Long-Lived
Assets  to be  Disposed  Of",  the  Partnership  records  impairment  losses  on
long-lived assets used in operations when events and circumstances indicate that
the assets might be impaired  and the  undiscounted  cash flows  estimated to be
generated by those assets are less than the carrying amounts of these assets. No
adjustments  for  impairment of value were recorded in the years ended  December
31, 1999 or 1998.

Income Taxes:  Taxable  income or loss of the  Partnership  is reported in the
income tax  returns of its  partners.  Accordingly,  no  provision  for income
taxes is made in the consolidated financial statements of the Partnership.

Fair Value of Financial Instruments: Statement of Financial Accounting Standards
("SFAS") No. 107,  "Disclosures about Fair Value of Financial  Instruments",  as
amended by SFAS No. 119, "Disclosures about Derivative Financial Instruments and
Fair  Value  of  Financial  Instruments",  requires  disclosure  of  fair  value
information  about  financial  instruments,  whether  or not  recognized  in the
balance sheet, for which it is practicable to estimate fair value. Fair value is
defined in the SFAS as the amount at which the instruments could be exchanged in
a  current  transaction  between  willing  parties,  other  than in a forced  or
liquidation  sale.  The  Partnership  believes  that the carrying  amount of its
financial  instruments (except for long term debt) approximates their fair value
due to the short  term  maturity  of these  instruments.  The fair  value of the
Partnership's  long term debt, after  discounting the scheduled loan payments to
maturity, approximates its carrying balance.

Use of Estimates:  The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

Segment  Reporting:  Statement of Financial  Accounting  Standards ("SFAS") 131,
"Disclosure about Segments of an Enterprise and Related Information" established
standards for the way that public business  enterprises report information about
operating  segments  in annual  financial  statements  and  requires  that those
enterprises  report selected  information  about  operating  segments in interim
financial reports.  It also establishes  standards for related disclosures about
products and services,  geographic areas, and major customers.  See "Note G" for
detailed disclosure about the Registrant's segments.

Advertising  Costs:  The  Partnership  expenses  the  costs  of  advertising  as
incurred.  Advertising costs of approximately $103,000 and $92,000 for the years
ended December 31, 1999 and 1998 were charged to operating expense as incurred.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation  (the "Insignia  Merger").  As a result,  AIMCO
acquired 100% ownership  interest in the Managing General Partner.  The Managing
General  Partner does not believe that this  transaction  has had or will have a
material effect on the affairs and operations of the Partnership.


<PAGE>



Note C - Mortgage Notes Payable

The principle terms of mortgage notes payable are as follows:

                          Principal   Monthly                       Principal
                         Balance At   Payment    Stated               Balance
                        December 31, Including   Interest  Maturity    Due At
         Property           1999     Interest     Rate      Date     Maturity
         --------           ----     --------     ----      ----     --------
                            (in thousands)                        (in thousands)
   Overlook Point

    Apartments             $ 8,860     $  56      6.33%   09/2005    $ 8,127
   Oak Run Apartments       10,363        73      7.36%   10/2004      9,728
                            ------      ----                          ------
                           $19,223     $ 129                         $17,855
                            ======      ====                          ======

Scheduled  principal  payments  on the  mortgage  notes  payable  subsequent  to
December 31, 1999 are as follows (in thousands):

                         2000             $  212
                         2001                246
                         2002                264
                         2003                283
                         2004              9,990
                      Thereafter           8,228
                                          ------
                                         $19,223

All mortgage agreements include non-recourse provisions which limit the lenders'
remedies in the event of default to the specific property  collateralizing  each
loan.  The notes  require  prepayment  penalties  if prepaid  prior to maturity.
Further, the properties may not be sold subject to existing indebtedness.

In August 1998, the Partnership refinanced the mortgage indebtedness encumbering
Overlook Point Apartments.  The total indebtedness  refinanced was approximately
$7,907,000. The new indebtedness, in the principal amount of $9,000,000, carries
a stated  interest rate of 6.33% per annum and is being amortized over 30 years,
with a balloon  payment due September 1, 2005. The proceeds from the refinancing
enabled the Partnership to pay-off its previous first mortgage note.

Note D - Income Taxes

Differences between the net income as reported and Federal taxable income result
primarily from  depreciation  over different  methods and lives and on differing
cost basis. The following is a reconciliation of reported net income and Federal
taxable income:

                                             1999        1998

Net income as reported                       $ 540       $ 442
Add (deduct):
  Depreciation differences                     212          20
  Other                                         49         103
                                              ----        ----
Federal taxable income                       $ 801       $ 565
                                              =====       ====
Federal taxable income per limited
  partnership unit                           $9.62       $6.79
                                              ====        ====

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities (in thousands):

                                          1999

Net liabilities as reported             $(1,877)
Land and buildings                        1,181
Accumulated depreciation                 (9,464)
Syndication and distribution costs        9,592
Other                                       204
                                         ------
Net deficiency - Federal tax basis      $  (364)
                                         ======

Note E - Transactions with Affiliated Parties

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The Partnership Agreement provides for (i) payments to
affiliates for services and (ii)  reimbursement of certain expenses  incurred by
affiliates on behalf of the Partnership. The following payments were made to the
Managing General Partner and affiliates during the years ended December 31, 1999
and 1998:

                                                         1999    1998
                                                         ----    ----
                                                        (in thousands)

 Property   management  fees  (included  in  operating   $254    $244
 expense)

 Reimbursement for services of affiliates (included in
  operating and general and  administrative  expenses,
 other

  assets and investment properties)                       126     148

During the years ended  December 31, 1999 and 1998,  affiliates  of the Managing
General  Partner were entitled to receive 5% of gross  receipts from both of the
Registrant's   properties  for  providing  property  management  services.   The
Registrant paid to such affiliates  approximately  $254,000 and $244,000 for the
years ended December 31, 1999 and 1998, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $126,000 and
$148,000 for the years ended December 31, 1999 and 1998, respectively.  Included
in these costs is  approximately  $18,000 in loan costs paid to an  affiliate of
the  Managing  General  Partner  during  the year  ended  December  31,  1998 in
connection  with the 1998  refinancing of the mortgage  indebtedness at Overlook
Point  Apartments  (see "Note C - Mortgage Notes  Payable").  No such costs were
paid for the year ended December 31, 1999.

Several tender offers were made by various parties,  including affiliates of the
Managing  General  Partner,  during the fiscal years ended December 31, 1999 and
1998. As a result of these tender offers, AIMCO and its affiliates currently own
37,062 units of limited partnership units in the Partnership representing 49.42%
of the outstanding  units. It is possible that AIMCO or its affiliates will make
one  or  more  additional  offers  to  acquire  additional  limited  partnership
interests in the  Partnership for cash or in exchange for units in the operating
partnership  of AIMCO.  Consequently,  AIMCO is in a position  to  significantly
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the units it acquired in a manner  favorable
to the interest of the Managing  General  Partner  because of their  affiliation
with the Managing General Partner.

Note F - Investment Properties and Accumulated Depreciation

                                            Initial Cost
                                           To Partnership
                                           --------------
                                           (in thousands)

                                                   Buildings        Costs
                                                  and Related    Capitalized
                                                   Personal     Subsequent to
       Description        Encumbrances    Land      Property     Acquisition
       -----------        ------------    ----      --------     -----------
                         (in thousands)                      (in thousands)

Overlook Point Apartments    $ 8,860    $1,082     $ 8,225       $ 1,340
Oak Run Apartments            10,363     6,218       8,713         2,286
                              ------     -----      ------        ------

Total                        $19,223    $7,300     $16,938       $ 3,626
                              ======     =====      ======        ======

                          Gross Amount At Which Carried
                              At December 31, 1999
                                 (in thousands)

                             Buildings
                                And
                              Related
                             Personal          Accumulated   Date    Depreciable
    Description       Land   Property   Total  Depreciation Acquired  Life-Years
    -----------       ----   --------   -----  ------------  ------  ----------
                              (in thousands)
Overlook Point       $1,078  $ 9,569   $10,647   $ 5,017      7/83     5-30 yrs
Apartments
Oak Run Apartments    6,218   10,999    17,217     6,177      11/83    5-30 yrs
                      -----   ------    ------    ------

Total                $7,296  $20,568   $27,864   $11,194
                      =====   ======    ======    ======
<PAGE>

Reconciliation of "Investment Properties and Accumulated Depreciation":

                                        Years Ended December 31,
                                          1999           1998
                                          ----           ----
Investment Properties                        (in thousands)
---------------------

Balance at beginning of year             $27,143       $26,859
    Property Improvements                    721           284
                                          ------        ------
Balance at end of year                   $27,864       $27,143
                                          ======        ======
Accumulated Depreciation

Balance at beginning of year             $10,473       $ 9,777
    Additions charged to expense             721           696
                                          ------        ------
Balance at end of year                   $11,194       $10,473
                                          ======        ======

The aggregate cost of the investment  properties for Federal income tax purposes
at December 31, 1999 and 1998, are  approximately  $29,045,000 and  $28,338,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 1999 and 1998, is  approximately  $20,658,000  and  $20,149,000,
respectively.

Note G - Segment Reporting

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The Partnership has one reportable segment: residential properties consisting of
two  apartment  complexes  in Salt  Lake  City,  Utah  and  Dallas,  Texas.  The
Partnership rents apartment units to tenants for terms that are typically twelve
months or less.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those described in the summary of significant accounting policies.

Factors management used to identify the enterprise's reportable segment:

The  Partnership's  reportable  segment  consists of investment  properties that
offer similar products and services.  Although each of the investment properties
is  managed  separately,  they have been  aggregated  into one  segment  as they
provide services with similar types of products and customers.

Segment information for the years 1999 and 1998 is shown in the tables below (in
thousands). The "Other" column includes partnership administration related items
and income and expense not allocated to the reportable segment.

              1999                Residential  Other     Totals

Rental income                      $ 4,790     $ --     $ 4,790
Other income                           238        20        258
Interest expense                     1,404        --      1,404
Depreciation                           721        --        721
General and  administrative             --       290        290
expense
Segment profit (loss)                  810      (270)       540
Total assets                        18,040        37     18,077
Capital expenditures for
  investment properties                721        --        721

              1998               Residential  Other     Totals

Rental income                     $ 4,616       $ --   $ 4,616
Other income                          208         69       277
Interest expense                    1,469         --     1,469
Depreciation                          696         --       696
General    and    administrative       --        208       208
expense
Segment profit (loss)                 581       (139)      442
Total assets                       18,110      1,182    19,292
Capital expenditures for
  investment properties               284         --       284

Note H - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  the Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Note B - Transfer  of  Control").  The  plaintiffs  seek  monetary  damages and
equitable relief, including judicial dissolution of the Partnership. On June 25,
1998,  the Managing  General  Partner  filed a motion  seeking  dismissal of the
action.  In lieu of  responding  to the  motion,  the  plaintiffs  have filed an
amended  complaint.  The Managing General Partner filed demurrers to the amended
complaint which were heard February 1999.  Pending the ruling on such demurrers,
settlement negotiations commenced. On November 2, 1999, the parties executed and
filed a  Stipulation  of  Settlement  settling  claims,  subject to final  court
approval, on behalf of the Partnership and all limited partners who own units as
of November 3, 1999.  Preliminary  approval of the  settlement  was  obtained on
November 3, 1999 from the Superior Court of the State of  California,  County of
San Mateo, at which time the Court set a final approval hearing for December 10,
1999.  Prior to the  December  10,  1999  hearing  the  Court  received  various
objections to the settlement,  including a challenge to the Court's  preliminary
approval based upon the alleged lack of authority of class  plaintiffs'  counsel
to enter the settlement.  On December 14, 1999, the Managing General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to  disqualify  some of the  plaintiffs'  counsel  in the  action.  The
Managing  General  Partner does not anticipate  that costs  associated with this
case will be material to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Note I - Change in Accounting Principles

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies of the Managing General  Partner.  The effect of the change in 1999 was
to increase net income by approximately  $102,000 ($1.23 per limited partnership
unit). The cumulative effect, had this change been applied to prior periods,  is
not  material.The  accounting  principle  change will not have an effect on cash
flow,  funds available for  distribution or fees payable to the Managing General
Partner and affiliates.

Note J - Distributions

Cash  distributions  of prior  cumulative  undistributed  sale  and  refinancing
proceeds of approximately  $1,620,000  (approximately  $1,604,000 to the limited
partners or $21.39 per limited  partnership unit) and $1,593,000  (approximately
$1,577,000 to the limited partners or $21.03 per limited  partnership unit) were
made during the years ended December 31, 1999 and 1998, respectively.


<PAGE>



Item 8. Changes  in and  Disagreements  with  Accountant  on  Accounting  and
        Financial  Disclosures

        None.


<PAGE>

                                    PART III

Item 9. Directors,   Executive  Officers,  Promoters  and  Control  Persons;
Compliance      with Section 16(a) of the Exchange Act

Neither the  Registrant,  nor Fox Partners  ("Fox"),  the general partner of the
Registrant,  has any officers or directors.  Fox Capital Management  Corporation
(the "Managing General Partner" or "FCMC"), the managing general partner of Fox,
manages  and  controls  substantially  all of the  Registrant's  affairs and has
general  responsibility  and  ultimate  authority in all matters  affecting  its
business.

The  names  and ages of,  as well as the  positions  and  offices  held by,  the
executive  officers and directors of the Managing  General Partner are set forth
below.  There are no family  relationships  between  or among  any  officers  or
directors.

Name                    Age   Position

Patrick J. Foye          42   Executive    Vice    President   and
                              Director
Martha L. Long           40   Senior Vice President and Controller

Patrick  J.  Foye  has been  Executive  Vice  President  and  Director  of the
Managing  General  Partner  since  October  1,  1998.  Mr.  Foye has served as
Executive  Vice  President  of AIMCO since May 1998.  Prior to joining  AIMCO,
Mr.  Foye was a partner in the law firm of  Skadden,  Arps,  Slate,  Meagher &
Flom LLP from 1989 to 1998 and was  Managing  Partner of the firm's  Brussels,
Budapest and Moscow  offices from 1992 through  1994.  Mr. Foye is also Deputy
Chairman  of the Long  Island  Power  Authority  and serves as a member of the
New  York  State  Privatization  Council.  He  received  a B.A.  from  Fordham
College and a J.D. from Fordham University Law School.

Martha L. Long has been Senior Vice  President  and  Controller  of the Managing
General  Partner and AIMCO since October 1998, as a result of the acquisition of
Insignia  Financial  Group,  Inc. From June 1994 until January 1997, she was the
Controller for Insignia, and was promoted to Senior Vice President - Finance and
Controller in January 1997,  retaining that title until October 1998.  From 1988
to June 1994,  Ms. Long was Senior Vice  President and  Controller for The First
Savings Bank, FSB in Greenville, South Carolina.

Based solely upon a review of Forms 3 and 4 and amendments  thereto furnished to
the Registrant  under Rule 16a-3(e) during the  Registrant's  most recent fiscal
year and Forms 5 and amendments thereto furnished to the Registrant with respect
to its most recent  fiscal year,  the  Registrant  is not aware of any director,
officer,  beneficial  owner of more than ten  percent  of the  units of  limited
partnership interest in the Registrant that failed to file on a timely basis, as
disclosed in the above Forms,  reports required by section 16(a) of the Exchange
Act during the most recent  fiscal year or prior fiscal years except as follows:
AIMCO Properties,  L.P. and its joint filers failed to timely file a Form 3 with
respect to its  acquisition  of Units and AIMCO and its joint  filers  failed to
timely file a Form 4 with respect to its acquisition of Units.

Item 10.   Executive Compensation

No direct form of compensation  or  remuneration  was paid by the Partnership to
any  officer  or  director  of Fox  Partners.  However,  certain  fees and other
payments have been made to the Managing  General Partner and its affiliates,  as
described in "Item 12. Certain Relationships and Related Transactions."

Item 11.   Security Ownership of Certain Beneficial Owners and Management

Except as noted below, no person or entity was known by the Registrant to be the
beneficial owner of more than 5% of the Registrant's  limited  partnership units
as of December 31, 1999.

     Name of                                         Percentage
Beneficial Owner                   Number of Units    of Class

Insignia Properties, LP
  (an affiliate of AIMCO)             21,717.0         28.96%
Madison River Properties, LLC
  (an affiliate of AIMCO)              5,259.5          7.01%
AIMCO Properties, LP
  (an affiliate of AIMCO)             10,085.5         13.45%

Madison  River  Properties,  LLC  and  Insignia  Properties  LP  are  indirectly
ultimately  owned  by  AIMCO.  Their  business  address  is  55  Beattie  Place,
Greenville, SC 29602.

AIMCO Properties LP is indirectly  ultimately  controlled by AIMCO. Its business
address is 2000 South Colorado Blvd, Denver, Colorado 80222.

No director or officer of the Managing General Partner owns any units.

Item 12.   Certain Relationships and Related Transactions

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The Partnership Agreement provides for (i) payments to
affiliates for services and (ii)  reimbursement of certain expenses  incurred by
affiliates on behalf of the Partnership. The following payments were made to the
Managing General Partner and affiliates during the years ended December 31, 1999
and 1998:

                                                         1999    1998
                                                         ----    ----
                                                        (in thousands)

 Property management fees                                $254    $244

 Reimbursement for services of affiliates                 126     148

During the years ended  December 31, 1999 and 1998,  affiliates  of the Managing
General  Partner were entitled to receive 5% of gross  receipts from both of the
Registrant's   properties  for  providing  property  management  services.   The
Registrant paid to such affiliates  approximately  $254,000 and $244,000 for the
years ended December 31, 1999 and 1998, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $126,000 and
$148,000 for the years ended December 31, 1999 and 1998, respectively.  Included
in these costs is  approximately  $18,000 in loan costs paid to an  affiliate of
the  Managing  General  Partner  during  the year  ended  December  31,  1998 in
connection  with the 1998  refinancing of the mortgage  indebtedness at Overlook
Point  Apartments  (see "Note C - Mortgage Notes  Payable").  No such costs were
paid for the year ended December 31, 1999.

Several tender offers were made by various parties,  including affiliates of the
Managing  General  Partner,  during the fiscal years ended December 31, 1999 and
1998. As a result of these tender offers, AIMCO and its affiliates currently own
37,062 units of limited partnership units in the Partnership representing 49.42%
of the outstanding  units. It is possible that AIMCO or its affiliates will make
one  or  more  additional  offers  to  acquire  additional  limited  partnership
interests in the  Partnership for cash or in exchange for units in the operating
partnership  of AIMCO.  Consequently,  AIMCO is in a position  to  significantly
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the units it acquired in a manner  favorable
to the interest of the Managing  General  Partner  because of their  affiliation
with the Managing General Partner.


<PAGE>



Item 13.   Exhibits and Reports on Form 8-K

        (a)  Exhibits:

             Exhibit  18,  Independent  Accountants'  Preferability  Letter  for
             Change  in  Accounting  Principle  is filed as an  exhibit  to this
             report.

             Exhibit 27,  Financial Data Schedule is filed as an exhibit to this
             report.

        (b)  Reports on Form 8-K was filed during the quarter ended December 31,
             1999.

             None.



<PAGE>


                                   SIGNATURES

In  accordance  with  section 13 or 15(d) of the Exchange  Act,  the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                             CENTURY PROPERTIES FUND XVIII



                             By:   Fox Partners
                                   Its General Partner

                             By:   Fox Capital Management Corporation
                                   Its Managing General Partner

                             By:   /s/Patrick J. Foye
                                   Patrick J. Foye
                                   Executive Vice President

                              By:  /s/Martha L. Long
                                   Martha L. Long
                                   Senior Vice President and
                                   Controller

                             Date:

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf by the  registrant and in the capacities and on the
date indicated.

/s/Patrick J. Foye           Date:
------------------
Patrick J. Foye
Executive Vice President
and Director

/s/Martha L. Long            Date:
-----------------
Martha L. Long
Senior Vice President and
Controller


<PAGE>


                          CENTURY PROPERTIES FUND XVIII

                                  EXHIBIT INDEX

Exhibit Number Description of Exhibit

     2.5       Master  Indemnity  Agreement  Incorporated by reference to Form
               8-K  filed  by  Insignia   Financial   Group,   Inc.  with  the
               Securities  and  Exchange  Commission  on  September  1,  1995.
               (Page 2)

     3.4       Agreement  of Limited  Partnership  Incorporated  by reference to
               Exhibit A to the Prospectus of the  Registrant  dated November 5,
               1982,  as  revised  December  30,  1982,  and after  supplemented
               contained in the Registrant's Agreement on For S-11 (Reg. No.

               2-78495). (Page 1)

     10.1      Promissory  Note  between  Oak Run,  L.L.C.,  a South  Carolina
               limited  liability  company,  and Lehman Brothers Holdings Inc.
               d/b/a Lehman Capital,  a division of Lehman  Brothers  Holdings
               Inc.,  a Delaware  corporation,  dated  September  1997.  Filed
               with December 31, 1997 10-KSB.

     10.2      Deed of Trust and Security  Agreement  between Oak Run, L.L.C.,
               a South Carolina limited liability  company,  David M. Parnell,
               and Lehman  Brothers  Holdings  Inc.  d/b/a Lehman  Capital,  a
               division  of  Lehman   Brothers   Holdings   Inc.,  a  Delaware
               corporation,  dated  September  1997.  Filed with  December 31,
               1997 10-KSB.

     10.3      Multi-Family  Note  between  Century   Properties  Fund  XVIII,
               L.P., a California  limited  partnership,  and Newport Mortgage
               Company,  L.P., a Texas limited  partnership,  dated August 24,
               1998. Filed with December 31, 1998 10-KSB.

     16        Letter  dated  November  11,  1998 from the  Registrant's  former
               Independent Auditor regarding its concurrence with the statements
               made by the  Registrant  in  Current  Report  on Form  8-K  dated
               November 10, 1998. Filed with December 31, 1998 10-KSB.

     18        Independent  Accountants'  Preferability  Letter  for Change in
               Accounting Principle.

     27        Financial Data Schedule.




<PAGE>


                                                                    Exhibit 18

February 7, 2000

Mr. Patrick J. Foye
Executive Vice President
Fox Capital Management Corporation

Managing General Partner of Century Properties Fund XVIII
55 Beattie Place
P.O. Box 1089
Greenville, South Carolina 29602

Dear Mr. Foye:

Note I of Notes to the Consolidated  Financial  Statements of Century Properties
Fund XVIII  included  in its Form  10-KSB for the year ended  December  31, 1999
describes a change in the method of accounting to capitalize  exterior  painting
and major landscaping,  which would have been expensed under the old policy. You
have advised us that you believe  that the change is to a  preferable  method in
your  circumstances  because it provides a better  matching of expenses with the
related benefit of the  expenditures  and is consistent with policies  currently
being used by your industry and conforms to the policies of the Managing General
Partner.

There are no authoritative criteria for determining a preferable method based on
the particular circumstances; however, we conclude that the change in the method
of accounting  for exterior  painting and major  landscaping is to an acceptable
alternative  method which,  based on your business  judgment to make this change
for the reasons cited above, is preferable in your circumstances.

                                                             Very truly yours,
                                                         /s/ Ernst & Young LLP