----

----

|   | [X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the Fiscal Year Ended February 28, 2007 |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ______ to ______. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              Delaware                                             |   |                      13-3481443                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State or other jurisdiction of organization)                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (I.R.S. Employer Identification No.)                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                                                                                                             |
| Wilder Richman Historic Corporation                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                             |
| 340 Pemberwick Road                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                             |
| Greenwich, Connecticut                                                                                                                                                                                                                                                                              |   |           06831                                                                                                                                                        |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |        (Zip code)                                                                                                                                                                                                             |

| Registrant's telephone number, including area code:         |    (203) 869-0900                                                                                                                  |
|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |                                                                                                                                                        |
| Securities registered pursuant to Section 12(b) of the Act: |             None               |
|                                                        | (Title of each Class)                                                                                                                                       |
|                                                        |                                                                                                                                                        |
| Securities registered pursuant to Section 12(g) of the Act: |                                                                                                                                                        |

----

----

----

----

|                                                                                  |   | Year Ended           |       |
|---------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                  |   | February 28,2007 (a) |       |   | February 28,2006 (a) |   |   | February 28,2005 (a) |   |   | February 29,2004 |   |   | February 28,2003 |   |
| Total revenues                                                                   |   | $                    | 6,544,647  |   |   | $ | 7,194,193 |   |   | $ | 6,868,356 |   |   | $ | 918 |   |   | $ | 2,115 |   |
| Equity in income of investment in operating partnerships                              |   | $                    | --         |   |   | $ | -- |   |   | $ | -- |   |   | $ | 413,727 |   |   | $ | 851,780 |   |
| Net income                                                                            |   | $                    | 37,164,087 | (b) |   | $ | 375,916 |   |   | $ | 138,125 |   |   | $ | 110,448 |   |   | $ | 695,620 |   |
| Net income per unit of limited partnership interest                                   |   | $                    | 45,990     |   |   | $ | 465 |   |   | $ | 171 |   |   | $ | 137 |   |   | $ | 861 |   |
| Income (loss) from continuing  operations                                   |   | $                    | 289,859    |   |   | $ | 32,737 |   |   | $ | (221,663 | ) |   | $ | (303,279 | ) |   | $ | (156,160 | ) |
| Net income (loss) from continuing operations per unit of limited partnership interest |   | $                    |  359  |   |   | $ |  41 |   |   | $ | (274 | ) |   | $ | (375 | ) |   | $ | (193 | ) |
| Distributions to limited partners                                                     |   | $                    | 31,444,000 |   |   | $ | 680,000 |   |   | $ | 600,012 |   |   | $ | 1,060,172 |   |   | $ | -- |   |
|                                                                                  |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions per unit of limited partnership interest                                |   | $                    | 39,305     |   |   | $ | 850 |   |   | $ | 750 |   |   | $ | 1,325 |   |   | $ | -- |   |
| At year end:                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total assets                                                              |   | $                    | 8,072,299  |   |   | $ | 44,794,461 |   |   | $ | 47,172,799 |   |   | $ | 1,675,809 |   |   | $ | 2,571,508 |   |
|                                                                                  |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Mortgages payable                                                         |   | $                    | --         |   |   | $ | 26,435,000 |   |   | $ | 28,600,000 |   |   |   |   |   |   |   |   |   |

|   | (a)Includes operations and total assets of the Operating Partnerships due to the change in accounting to consolidate the Operating Partnerships effective March 1, 2004. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)Includes gains on sale of real estate assets of $28,002,756 and the Operating Partnerships’ net income allocation between partners to adjust capital accounts for current and future distributions in connection with the liquidation of the partnership. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | Name                  | Age      | Office                                           |
|--------|-----------------------|----------|--------------------------------------------------|
|   |                  |     |                                             |
|   | Richard Paul Richman  |  64 | President and Director                           |
|   |                  |     |                                             |
|   | Robert H. Wilder, Jr. |  66 | Vice President, Assistant Secretary and Director |
|   |                  |     |                                             |
|   | James Hussey          |  50 | Treasurer                                        |

----

----

|               |   | 2007   |   |   | 2006   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| Audit Fees         |   | $      | 34,500 |   |   | $      | 34,500 |   |
| Audit-Related Fees |   |   | --     |   |   |   | -- |   |
| Tax Fees           |   |   | --     |   |   |   | -- |   |
| All Other Fees     |   |   | --     |   |   |   | -- |   |

----

|   | (1)    | Financial Statements                                                                                                                                         |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                         |   |
|   |   | (i)                                                                                                                                                          | The list of Financial Statements of Registrant appears on page F-1. |
|   |   |                                                                                                                                                         |   |
|   |   | (ii)                                                                                                                                                         | The list of Financial Statements of the Operating Partnerships appears on page F-15. |
|   |   |                                                                                                                                                         |   |
|   | (2)    | Financial Statement Schedules                                                                                                                                |
|   |   |                                                                                                                                                         |   |
|   |   | All schedules are omitted because the required information is inapplicable or it is presented in the consolidated financial statements or the notes thereto. |
|   |   |                                                                                                                                                         |   |
|   | (3)    | Exhibits                                                                                                                                                     |

|   | (3A)   | Certificate of Limited Partnership of Wilder Richman Historic Properties II, L.P., as filed with the Secretary of State of Delaware on October 15, 1987;*                                                                                                                                                                          |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (3B)   | Form of Agreement of Limited Partnership of Wilder Richman Historic Properties II, L.P. (attached to Prospectus as Exhibit A);                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (4)    | Form of Subscription Agreement (attached to Prospectus as Exhibit B);                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10A)  | Previously executed and filed Certificate of Limited Partnership and Amended and Restated Certificate of Limited Partnership of (x) Dixon Mill Associates I (Phase One), Limited Partnership, (y) Dixon Mill Associates II (Phase Two), Limited Partnership and (z) Dixon Mill Associates III (Phase Three), Limited Partnership;* |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10B)  | Form of Amended and Restated Agreement and Certificate of Limited Partnership of the Dixon Mill Partnerships:                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   |   | (1)  Dixon Mill Associates I (Phase One), Limited Partnership Amended and Restated Agreement and Certificate of Limited Partnership;**                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   |   | (2)  Dixon Mill Associates II (Phase Two), Limited Partnership Amended and Restated Agreement and Certificate of Limited Partnership;** and                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   |   | (3)  Dixon Mill Associates III (Phase Three), Limited Partnership Amended and Restated Agreement and Certificate of Limited Partnership;**                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10C)  | Dixon Mill Complex Financing Documents;*                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10D)  | Administrative Consent Order with New Jersey Department of Environmental Protection ("NJDEP") and NJDEP Non-Applicability Letter as to Dixon Mill Partnerships;*                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10E)  | Master Services Agreement, dated June 18, 1986, between Varick Construction Corp. and IT Corporation;*                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10F)  | Documents related to Dixon Mill Complex historic certification;*                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10G)  | Form of Operating Deficit Guarantee Agreement;*                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10H)  | Form of Repurchase Agreement;**                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10I)  | Form of Investor Services Agreement;**                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                               |
|   | (10J)  | Form of Escrow Agreement among Wilder Richman Historic Properties II, L.P., Wilder Richman Historic Corporation, Shearson Lehman Hutton Inc. and FirsTier Bank, N.A., as escrow agent;**                                                                                                                                           |

----

|   | (10K)        | Form of Financial Development Consulting Agreement between Wilder Richman Corporation and the Operating Partnerships;**                                                                                                                                   |
|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                                      |
|   | (10L)        | Form of Annuity Issuance Agreement between Wilder Richman Historic Properties II, L.P. and the Issuer;**                                                                                                                                                  |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10M)        | Form of Guaranteed Investment Contract Escrow Agreement among Wilder Richman Historic Properties II, L.P., the Dixon Mill Partnerships and the escrow agent;**                                                                                            |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10N)        | Form of Assignment between the Dixon Mill Partnership, as Assignor, and Wilder Richman Historic Properties II, L.P., as Assignee;**                                                                                                                       |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10O)        | Form of Letter from The Dixon Venture to Wilder Richman Historic Properties II, L.P. and the Dixon Mill Partnerships, as to The Dixon Venture's agreement to bear all costs of compliance with the New Jersey Environmental Cleanup Responsibility Act;** |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10P)        | Amendment No. 1 to Agreement of Limited Partnership; ***                                                                                                                                                                                                  |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10Q)        | Reinstatement and Modification Agreement; ***                                                                                                                                                                                                             |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10R)        | Operating Deficit Escrow Agreement; ***                                                                                                                                                                                                                   |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10S)        | Priority Operating Deficit Escrow Agreement; ***                                                                                                                                                                                                          |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10T)        | Amended and Restated Achievement Escrow Agreement; ***                                                                                                                                                                                                    |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10U)        | Default Avoiding Loan Agreement; ***                                                                                                                                                                                                                      |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10V)        | Management Agreement; ***                                                                                                                                                                                                                                 |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10W)        | Chase Note; ***                                                                                                                                                                                                                                           |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10X)        | Letter of Intent to Reinstate and Modify the Mortgages; ****                                                                                                                                                                                              |
|   |         |                                                                                                                                                                                                                                                      |
|   | (10Y)   | Agreement of Purchase and Sale dated as of April 3, 2006 between the Operating Partnerships and RMPC Dixon LLC*****                                                                                                                                       |
|   |         |                                                                                                                                                                                                                                                      |
|   |  (31.1) | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer;                                                                                                                                                                                        |
|   |         |                                                                                                                                                                                                                                                      |
|   | (31.2)       | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer;                                                                                                                                                                                        |
|   |         |                                                                                                                                                                                                                                                      |
|   | (32.1)       | Section 1350 Certification of Chief Executive Officer;                                                                                                                                                                                                    |
|   |         |                                                                                                                                                                                                                                                      |
|   | (32.2)       | Section 1350 Certification of Chief Financial Officer.                                                                                                                                                                                                    |

|   |   |
|--------|--------|

|   | *     | Incorporated by Reference to Registrant's Form S-11 Registration Statement as filed with the Securities and Exchange Commission on January 15, 1988.              |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | **    | Incorporated by Reference to Amendment No.1 to Registrant's Form S-11 Registration Statement as filed with the Securities and Exchange Commission on May 9, 1988. |
|   | ***   | Submitted as exhibit to Form 10-K for the fiscal year ended February 29, 1992.                                                                                    |
|   | ****  | Incorporated by Reference to Proxy dated March 23, 1992.                                                                                                          |
|   | ***** | Incorporated by Reference to Form 8-K dated June 23, 2006 and Form 8-K dated November 8, 2006.                                                                    |

----

|   | WILDER RICHMAN HISTORIC PROPERTIES II, L.P. |
|--------|---------------------------------------------|
|   |                                        |   |   |
|   | By:                                         | Wilder Richman Historic Corporation, General Partner |
|   |                                        |   |   |
|   |                                        | By: | /s/Richard Paul Richman                                             |
|   |                                        |   | Richard Paul Richman - Chief Executive Officer and Director |
|   |                                        |   |   |
|   |                                        | By: | /s/James Hussey                                                           |
|   |                                        |   | James Hussey - Chief Financial Officer and Director |
|   |                                        |   |   |

----

----

| Table of Contents                                       |   Page |
|---------------------------------------------------------|------------------|
|                                                    |             |
| Report of Independent Registered Public Accounting Firm |  F-2        |
|                                                    |             |
| Consolidated Financial Statements                       |             |
|                                                    |             |
| Consolidated Balance Sheets                             |  F-3        |
|                                                    |             |
| Consolidated Statements of Operations                   |  F-4        |
|                                                    |             |
| Consolidated Statements of Partners' Equity (Deficit)   |  F-6        |
|                                                    |             |
| Consolidated Statements of Cash Flows                   |  F-7        |
|                                                    |             |
| Notes to Consolidated Financial Statements              |  F-9        |

----

----

|                                                                                                      |   | February 28, |      |   | February 28, |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------------|--------|
|                                                                                                      |   | 2007         |      |   | 2006         |   |
|                                                                                                      |   |         |      |   |         |   |
|            ASSETS                                       |   |         |      |   |         |   |
|                                                                                                      |   |         |      |   |         |   |
| Cash and cash equivalents                                                                                 |   | $            | 6,072,299 |   |         | $      | 4,184,690 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
| Mortgage escrows and other deposits                                                                       |   |         |      |   |         |   | 1,184,280 |   |
| JCRA escrow                                                                                               |   |         | 2,000,000 |   |         |   |   |   |
| Assets held for sale                                                                                      |   |         |      |   |         |   | 39,371,221 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
| Other assets                                                                                              |   |         |      |   |         |   | 57,270 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
|                                                                                                      |   | $            | 8,072,299 |   |         | $      | 44,794,461 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
|             LIABILITIES AND PARTNERS’ EQUITY |   |         |      |   |         |   |   |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
| LIABILITIES                                                                                               |   |         |      |   |         |   |   |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
| Accounts payable and accrued expenses                                                                     |   | $            | 160,512   |   |         | $      | 385,789 |   |
| Accrued interest payable                                                                                  |   |         |      |   |         |   | 40,775 |   |
| State of New Jersey filing fee payable                                                                    |   |         |      |   |         |   | 25,600 |   |
| Liabilities held for sale                                                                                 |   |         |      |   |         |   | 27,178,813 |   |
| Due to affiliates                                                                                         |   |         | 22,633    |   |         |   | 2,075,307 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
|                                                                                                      |   |         | 183,145   |   |         |   | 29,706,284 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
| MINORITY INTEREST                                                                                         |   |         | 1,682,318 |   |         |   | 14,601,428 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
| PARTNERS’ EQUITY                                                                                    |   |         | 6,206,836 |   |         |   | 486,749 |   |
|                                                                                                      |   |         |      |   |         |   |   |   |
|                                                                                                      |   | $            | 8,072,299 |   |         | $      | 44,794,461 |   |

----

|                                                      |   | Year Ended   |                    |
|-----------------------------------------------------------|--------|--------------|-------------------------|
|                                                      |   |         |                    |   |   |   |   |   |   |
|                                                      |   | February 28, |                    |   | February 28, |   |   | February 28, |   |
|                                                      |   | 2007         |                    |   | 2006 |   |   | 2005 |   |
| OPERATIONS                                                |   |         |                    |   |   |   |   |   |   |
|                                                      |   |         |                    |   |   |   |   |   |   |
| Revenue                                                   |   |         |                    |   |   |   |   |   |   |
|     Interest                          |   | $            | 503,628                 |   |   | $ | 194,320 |   |   | $ | 56,265 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Expenses                                                  |   |         |                    |   |   |   |   |   |   |   |   |   |
|     Administrative                    |   |         | 165,061                 |   |   |   | 68,318 |   |   |   | 141,628 |   |
|     Investor service fees - affiliate |   |         | 22,633                  |   |   |   | 24,765 |   |   |   | 24,100 |   |
|     State of New Jersey Filing Fee    |   |         | 26,075                  |   |   |   | 68,500 |   |   |   | 112,200 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| TOTAL EXPENSES                                            |   |         | 213,769                 |   |   |   | 161,583 |   |   |   | 277,928 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM CONTINUING OPERATIONS                  |   |         |  289,859           |   |   |   |  32,737 |   |   |   | (221,663 | ) |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| DISCONTINUED OPERATIONS                                   |   |         |                    |   |   |   |   |   |   |   |   |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Revenue                                                   |   |         |                    |   |   |   |   |   |   |   |   |   |
| Rent                                                      |   |         | 6,041,019               |   |   |   | 6,999,873 |   |   |   |  6,812,091 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Expenses                                                  |   |         |                    |   |   |   |   |   |   |   |   |   |
| Administrative                                            |   |         | 1,132,113               |   |   |   | 1,330,096 |   |   |   | 1,186,879 |   |
| Operating                                                 |   |         | 2,519,776               |   |   |   | 2,985,059 |   |   |   | 2,873,378 |   |
| Management fees - affiliate                               |   |         | 262,353                 |   |   |   | 279,554 |   |   |   | 257,334 |   |
| Investor services fees - affiliate                        |   |         | 39,848                  |   |   |   | 73,549 |   |   |   | 71,614 |   |
| Financial                                                 |   |         | 867,213                 |   |   |   | 702,740 |   |   |   | 395,654 |   |
| Depreciation and amortization                             |   |         | 29,700                  |   |   |   | 1,280,338 |   |   |   | 1,663,256 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Total expenses from discontinued operations               |   |         | 4,851,003               |   |   |   | 6,651,336 |   |   |   | 6,448,115 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| OTHER INCOME                                              |   |         |                    |   |   |   |   |   |   |   |   |   |
|    Gain on sale of real estate assets      |   |         |    28,002,756 |   |   |   |   |   |   |   |   |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations                       |   |         |                    |   |   |   |   |   |   |   |   |   |
|     before minority interest          |   |         | 29,192,772              |   |   |   | 348,537 |   |   |   | 363,976 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Minority interest (income) loss of operating partnerships |   |         | 7,681,456               |   |   |   | (5,358 | ) |   |   | (4,188 | ) |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| INCOME FROM DISCONTINUED                                  |   |         |                    |   |   |   |   |   |   |   |   |   |
|     OPERATIONS                        |   |         | 36,874,228              |   |   |   | 343,179 |   |   |   | 359,788 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| NET INCOME                                                |   | $            | 37,164,087              |   |   | $ | 375,916 |   |   | $ | 138,125 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| NET INCOME ALLOCATED TO                                   |   |         |                    |   |   |   |   |   |   |   |   |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
| Limited partners                                          |   | $            | 36,792,446              |   |   | $ | 372,157 |   |   | $ | 136,744 |   |
| General partner                                           |   |         | 371,641                 |   |   |   | 3,759 |   |   |   | 1,381 |   |
|                                                      |   |         |                    |   |   |   |   |   |   |   |   |   |
|                                                      |   | $            | 37,164,087              |   |   | $ | 375,916 |   |   | $ | 138,125 |   |

----

|                                                            |   | Year Ended   |      |
|-----------------------------------------------------------------|--------|--------------|-----------|
|                                                            |   |         |      |   |   |   |   |   |   |
|                                                            |   | February 28, |      |   | February 28, |   |   | February 28, |   |
|                                                            |   | 2007         |      |   | 2006 |   |   | 2005 |   |
| NET INCOME ALLOCATED PER UNIT OF                                |   |         |      |   |   |   |   |   |   |
|  LIMITED PARTNERSHIP INTEREST (800                         |   |         |      |   |   |   |   |   |   |   |   |   |
|      UNITS OF LIMITED PARTNERSHIP INTEREST) |   | $            | 45,990.58 |   |   | $ | 465.20 |   |   | $ | 170.93 |   |
|                                                            |   |         |      |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) FROM CONTINUING                               |   |         |      |   |   |   |   |   |   |   |   |   |
|     OPERATIONS ALLOCATED PER UNIT           |   |         |      |   |   |   |   |   |   |   |   |   |
|     OF LIMITED PARTNERSHIP INTEREST         |   | $            | 358.70    |   |   | $ | 40.51 |   |   | $ | (274.31 | ) |
|                                                            |   |         |      |   |   |   |   |   |   |   |   |   |
| INCOME  FROM DISCONTINUED                             |   |         |      |   |   |   |   |   |   |   |   |   |
|     OPERATIONS ALLOCATED PER UNIT           |   |         |      |   |   |   |   |   |   |   |   |   |
|     OF LIMITED PARTNERSHIP INTEREST         |   | $            | 45,631.86 |   |   | $ | 424.68 |   |   | $ | 445.24 |   |

----

|                                                |   |    |           |   |     |   |        |   |   |
|-----------------------------------------------------|--------|---------|----------------|--------|----------|--------|-------------|--------|--------|
|                                                |   |    |           |   |     |   |        |   |   |
|                                                |   | General |           |   | Limited  |   |        |   |   |
|                                                |   | Partner |           |   | Partners |   |        | Total  |   |
|                                                |   |    |           |   |     |   |        |   |   |
| Partner’s equity (deficit), February 29, 2004 |   |    | (144,143       | )      |     |   | 1,396,863   |   |   |   | 1,252,720 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Distributions to partners                           |   |    |           |   |     |   | (600,012    | )      |   |   | (600,012 | ) |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Net income, year ended February 28, 2005            |   |    | 1,381          |   |     |   | 136,744     |   |   |   | 138,125 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Partner’s equity (deficit), February 28, 2005 |   |    | (142,762       | )      |     |   | 933,595     |   |   |   | 790,833 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Distributions to partners                           |   |    |           |   |     |   | (680,000    | )      |   |   | (680,000 | ) |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Net income, year ended February 28, 2006            |   |    | 3,759          |   |     |   | 372,157     |   |   |   | 375,916 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Partners’ equity (deficit), February 28, 2006 |   |    |  (139,003 | )      |     |   | 625,752     |   |   |   | 486,749 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Distributions to partners                           |   |    |           |   |     |   | (31,444,000 | )      |   |   | (31,444,000 | ) |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Net income year ended February 28, 2007             |   |    | 371,641        |   |     |   | 36,792,446  |   |   |   | 37,164,087 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Partners’ equity February 28, 2007            |   | $       | 232,638        |   |     | $      | 5,974,198   |   |   | $ | 6,206,836 |   |
|                                                |   |    |           |   |     |   |        |   |   |   |   |   |
| Limited partnership units outstanding               |   |    |           |   |     |   | 800         |   |   |   |   |   |

----

|                                                                                      |   | Year Ended   |                 |
|-------------------------------------------------------------------------------------------|--------|--------------|----------------------|
|                                                                                      |   |         |                 |   |   |   |   |   |   |
|                                                                                      |   | February 28, |                 |   | February 28, |   |   | February 28, |   |
|                                                                                      |   | 2007         |                 |   | 2006 |   |   | 2005 |   |
|                                                                                      |   |         |                 |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |         |                 |   |   |   |   |   |   |
| Net income                                                                                |   | $            | 37,164,087           |   |   | $ | 375,916 |   |   | $ | 138,125 |   |
| Adjustment to reconcile net income to net cash provided by (used in) operating activities |   |         |                 |   |   |   |   |   |   |   |   |   |
| Gain on sale of real estate assets                                                        |   |         |  (28,002,756    | ) |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                             |   |         | 29,700               |   |   |   | 1,280,338 |   |   |   | 1,663,256 |   |
| Minority interest income (loss) in income of operating partnerships                       |   |         | (7,681,456           | ) |   |   | 5,358 |   |   |   | 4,188 |   |
| Unrealized gain on interest rate cap                                                      |   |         |                 |   |   |   | (65,846 | ) |   |   |   |   |
| Write off of interest rate cap                                                            |   |         |                 |   |   |   | 113,891 |   |   |   |   |   |
| Adjustment of current assets and liabilities at time of sale of real estate assets        |   |         |   (156,221 | ) |   |   |   |   |   |   |   |   |
| Decrease (increase) in tenant security deposits                                           |   |         | 743,813              |   |   |   | (56,333 | ) |   |   | 24,013 |   |
| Increase in JCRA escrow                                                                   |   |         | (2,000,000           | )  |   |   |   |   |   |   |   |   |
| Decrease (increase) in other assets                                                       |   |         | 57,270               |   |   |   | (24,564 | ) |   |   | 13,220 |   |
| Increase (decrease) in accounts payable and accrued expenses                              |   |         |  (225,277       | ) |   |   |  (54,972 | ) |   |   |  829 |   |
| Increase (decrease) in accrued interest payable                                           |   |         | (40,775              | ) |   |   | 18,702 |   |   |   | 8,319 |   |
| Increase (decrease) in tenant security deposits payable                                   |   |         |  (743,813       | ) |   |   |  56,333 |   |   |   | (24,013 | ) |
| Decrease in State of New Jersey filing fee payable                                        |   |         | (25,600              | ) |   |   | (30,500 | ) |   |   |   |   |
| Increase (decrease) in due to affiliates                                                  |   |         | (1,143,574           | ) |   |   | 95,825 |   |   |   | 48,389 |   |
|                                                                                      |   |         |                 |   |   |   |   |   |   |   |   |   |
|   Net cash provided by (used in) operating activities                           |   |         |  (2,024,602     | ) |   |   |  1,714,148 |   |   |   | 1,876,326 |   |
|                                                                                      |   |         |                 |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |         |                 |   |   |   |   |   |   |   |   |   |
|        Sale of real estate assets                      |   |         | 69,460,000           | ) |   |   |   |   |   |   |   |   |
|        Cost of sales of real estate assets             |   |         | (2,792,442           | )  |   |   |   |   |   |   |   |   |
| Investment in fixed assets                                                                |   |         | (522,950             | ) |   |   | (1,946,032 | ) |   |   | (1,341,243 | ) |
| Withdrawals from (payments to) principal reserve fund                                     |   |         | (19,036              | ) |   |   | 1,635,478 |   |   |   | (439,174 | ) |
| Increase (decrease) in mortgage escrows and other deposits                                |   |         | 1,812,393            |   |   |   | (143,131 | ) |   |   | (389,923 | ) |
| Distributions paid to minority interest                                                   |   |         | (5,237,654           | ) |   |   |   |   |   |   |   |   |
| Net cash of consolidating subsidiaries as of beginning of year                            |   |         |                 |   |   |   |   |   |   |   |  6,788,271 |   |
|                                                                                      |   |         |                 |   |   |   |   |   |   |   |   |   |
|   Net cash provided by (used in) investing activities                           |   |         | 62,700,311           |   |   |   | (453,685 | ) |   |   | 4,617,931 |   |

----

|                                                           |   | Year Ended   |        |
|----------------------------------------------------------------|--------|--------------|-------------|
|                                                           |   |         |        |   |   |   |   |   |
|                                                           |   | February 28, |        |   | February 28, |   | February 28, |   |
|                                                           |   | 2007         |        |   | 2006 |   | 2005 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                           |   |         |        |   |   |   |   |   |
| Principal payments on mortgages                                |   |         | (26,435,000 | ) |   |   | (2,165,000 | ) |   |   |
| Payment of loans from operating general partner and affiliates |   |         | (909,100    | ) |   |   |   |   |   |   |
| Purchase of interest rate cap                                  |   |         |        |   |   |   | (140,000 | ) |   |   |
| Distributions paid                                             |   |         | (31,444,000 | ) |   |   | (680,000 | ) |   |   | (600,012 | ) |
|                                                           |   |         |        |   |   |   |   |   |   |   |   |   |
|   Net cash used in financing activities              |   |         | (58,788,100 | ) |   |   | (2,985,000 | ) |   |   | (600,012 | ) |
|                                                           |   |         |        |   |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS           |   |         | 1,887,609   |   |   |   | (1,724,537 | ) |   |   | 5,894,245 |   |
|                                                           |   |         |        |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, beginning of year                   |   |         | 4,184,690   |   |   |   | 5,909,227 |   |   |   | 14,982 |   |
|                                                           |   |         |        |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, end of year                         |   | $            | 6,072,299   |   |   | $ | 4,184,690 |   |   | $ | 5,909,227 |   |
|                                                           |   |         |        |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL INFORMATION                                       |   |         |        |   |   |   |   |   |   |   |   |   |
|                                                           |   |         |        |   |   |   |   |   |   |   |   |   |
| Financial expenses paid                                   |   | $            | 907,988     |   |   | $ | 691,162 |   |   | $ | 387,335 |   |

|                                                            |   |   |        |   |   |   |       |   |   |
|-----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| CASH FLOWS FROM DISCONTINUED OPERATIONS                         |   |   |        |   |   |   |       |   |   |
|                                                            |   |   |        |   |   |   |       |   |   |
|   Net cash provided by (used in) operating activities |   | $      | (1,660,012  | )      |   | $      | 1,746,951  |   |   | $ | 1,830,212 |   |
|                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
|   Net cash provided by (used in) investing activities |   | $      | 67,937,965  |   |   | $      | (310,554   | )      |   | $ | (1,780,417 | ) |
|                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
|   Net cash used in financing activities               |   | $      | (64,959,880 | )      |   | $      | (2,305,000 | )      |   |   |   |   |

----

|   | F-9 |
|--------|-----|

----

| 2. | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----|---------------------------------------------|

|   | F-10 |
|--------|------|

----

|   | Concentration of Credit Risk |
|--------|------------------------------|

|   | Advertising Costs |
|--------|-------------------|

|   | Advertising costs are expensed as incurred. |
|--------|---------------------------------------------|

|   | Use of Estimates |
|--------|------------------|

|                           |   |   |         |   |   |   |
|--------------------------------|--------|--------|--------------|--------|--------|--------|
|                           |   | 2007   |         |   | 2006   |   |
|                           |   |   |         |   |   |   |
| Due to (from)                  |   |   |         |   |   |   |
|                           |   |   |         |   |   |   |
| Morris Realty                  |   | $      | -            |   |   | $      | (5,259 | ) |
| DVC                            |   |   | -            |   |   |   | 1,543,637 |   |
| Richman Asset Management, Inc. |   |   |  22,633 |   |   |   |  536,929 |   |
|                           |   | $      | 22,633       |   |   | $      | 2,075,307 |   |

----

----

|   | - | First, 99% to the Partnership as limited partner in the Operating Partnerships and 1% to the Operating General Partner, until the Partnership received an amount equal to its adjusted contributions. The adjusted capital contributions of $19,280,000 and $194,747 were paid to the Partnership and the Operating General Partner, respectively, in 2006 after the sale of the Complex. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Next, 99% to the Partnership and 1% to the Operating General Partner, until the Partnership    received an amount equal to the accrued cumulative, non-compounded return of 7% per annum The cumulative return of $18,700,833 and $188,897 was paid to the Partnership and the Operating General Partner, respectively, in 2006, The Partnership distribution includes New Jersey income tax withholding payments made on behalf of non resident limited partners of the Partnership. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Next, to the extent available, proceeds equal to the adjusted capital contributions of the Operating General Partner of $17,057,857. Adjusted proceeds of $4,854,009 were paid to the Operating General Partner in 2006.  The Operating General Partner may receive an additional distribution to the extent amounts are available from the Agency required escrow (see Note 9). |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                        |   | Year Ended December 31, |                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------------------|
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |
|                                                                                                                                                        |   | 2006                    |                 |   | 2005 |   |   | 2004 |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |
| Financial statement income for the years ended February 28, 2007, February 28, 2006 and February 28, 2005                                                   |   | $                       | 37,164,087           |   |   | $ |  375,916 |   |   | $ |  138,125 |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Interest income and other transactions due to timing differences resulting from different fiscal year ends for tax purposes v. financial reporting purposes |   |                    |  (8,961         | ) |   |   |       20,827 |   |   |   |       24,275 |   |
|                                                                                                                                                        |   |                    |  37,155,126     |   |   |   |  396,743 |   |   |   |  162,400 |   |
| Gain on sale of real estate assets for tax purposes in excess of gain for Financial statements                                                              |   |                    |  28,057,325     |   |   |   | (65,846 | ) |   |   |  -- |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Financial statement to tax return difference arising from investments in Operating Partnerships                                                             |   |                    |   (319,908 | ) |   |   |   (212,586 | ) |   |   |  (139,473 | ) |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Minority interest allocation                                                                                                                                |   |                    | (7,681,456           | ) |   |   | 5,358 |   |   |   | 4,188 |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Adjustment to fair market value of Rate Cap recorded for financial statement purposes                                                                       |   |                    |  --             |   |   |   | (65,846 | ) |   |   |  -- |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Write off of unamortized Rate Cap                                                                                                                           |   |                    | --                   |   |   |   | 113,891 |   |   |   |   |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Amounts paid/payable to related parties not deductible under Internal Revenue Code Section 267 and other adjustments                                        |   |                    |   (606,556 | ) |   |   |   97,036 |   |   |   |    81,378 |   |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Excess of depreciation expense of the Operating Partnerships for income tax purpose over financial reporting purposes                                       |   |                    |  (2,403,759     | ) |   |   |  (1,721,324 | ) |   |   |  (1,596,884 | ) |
|                                                                                                                                                        |   |                    |                 |   |   |   |   |   |   |   |   |   |
| Tax return net loss for the years ended December 31, 2006, 2005 and 2004, respectively                                                                      |   | $                       | 54,200,772           |   |   | $ | (1,386,728 | ) |   | $ | (1,488,391 | ) |

----

|                               |   | 2007   |      |   | 2006   |   |
|------------------------------------|--------|--------|-----------|--------|--------|--------|
|                               |   |   |      |   |   |   |
| Assets – financial reporting |   | $      | 8,072,299 |   |   | $      | 44,794,461 |   |
|                               |   |   |      |   |   |   |   |   |
| Assets – tax reporting       |   |   | 3,364,706 |   |   |   | 27,207,731 |   |
|                               |   |   |      |   |   |   |   |   |
| Difference                         |   | $      | 4,707,593 |   |   | $      | 17,586,730 |   |

----

|                                                       |   | First   |         |   | Second  |   |         | Third   |   |   | Fourth          |   |
|------------------------------------------------------------|--------|---------|--------------|--------|---------|--------|--------------|---------|--------|--------|-----------------|--------|
|                                                       |   | Quarter |         |   | Quarter |   |         | Quarter |   |   | Quarter         |   |
| 2007                                                       |   |    |         |   |    |   |         |    |   |   |            |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |
| Total revenue                                              |   | $       | 1,811,764    |   |    | $      | 1,843,422    |    |   | $      | 2,734,385       |   |   | $ | 155,076 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Income (loss) from continuing operations                   |   |    | (3,787       | )      |    |   | (10,483      | )       |   |   | 239,798         |   |   |   | 64,331 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Net income                                                 |   |    | 438,554      |   |    |   | 420,233      |    |   |   | 36,242,136      |   |   |   | 63,164 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Net income per unit of limited partnership interest        |   |    |  542.71 |   |    |   |  520.04 |    |   |   |  44,849.64 |   |   |   |  78.19 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| 2006                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Total revenue                                              |   |    | 1,789,847    |   |    |   | 1,792,871    |    |   |   | 1,748,262       |   |   |   | 1,863,213 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Loss from continuing operations                            |   |    | (27,496      | )      |    |   | 18,881       |    |   |   | 8,588           |   |   |   | 32,764 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Net income (loss)                                          |   |    | 118,513      |   |    |   | 97,831       |    |   |   | (26,132         | )      |   |   | 185,704 |   |
|                                                       |   |    |         |   |    |   |         |    |   |   |            |   |   |   |   |   |
| Net income (loss) per unit of limited partnership interest |   |    |  146.66 |   |    |   |  121.07 |    |   |   | (32.34          | )      |   |   |  229.81 |   |

----