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


                                    FORM 10-Q



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


      For the period ended          June 30, 1997
                            ----------------------------------------------------


                                       OR

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


     For the transition period from ______________ to_____________
     Commission file number  0-12915
                           ----------


                        McNEIL REAL ESTATE FUND XIV, LTD.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)





         California                                94-2822299
--------------------------------------------------------------------------------
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                      Identification No.)



              13760 Noel Road, Suite 600, LB70, Dallas, Texas 75240
--------------------------------------------------------------------------------
              (Address of principal executive offices)       (Zip code)



Registrant's telephone number, including area code      (972) 448-5800
                                                     ---------------------------


Indicate  by check  mark  whether  the  registrant,  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during the  preceding  12 months and (2) has been  subject to such  filing
requirements for the past 90 days. Yes X No
                                      ---  ---
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
------- --------------------

                                 BALANCE SHEETS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                          June 30,           December 31,
                                                                            1997                 1996
                                                                       ---------------     ---------------
ASSETS
------

Real estate investments:
<S>                                                                    <C>                 <C>            
   Land.....................................................           $     4,663,828     $     4,663,828
   Buildings and improvements...............................                36,144,636          35,944,879
                                                                        --------------      --------------
                                                                            40,808,464          40,608,707
   Less:  Accumulated depreciation..........................               (19,889,055)        (18,951,741)
                                                                        --------------      --------------
                                                                            20,919,409          21,656,966

Assets held for sale, net...................................                 4,161,735           7,942,855

Cash and cash equivalents...................................                 5,143,687           1,903,902
Cash segregated for security deposits.......................                   416,704             399,366
Accounts receivable.........................................                   412,917             385,721
Prepaid expenses and other assets...........................                   154,036             173,908
Escrow deposits.............................................                   791,386             681,430
Deferred borrowing costs, net of accumulated
   amortization of $394,083 and $346,255 at
   June 30, 1997, and December 31, 1996,
   respectively.............................................                   996,909           1,044,737
                                                                        --------------      --------------

                                                                       $    32,996,783     $    34,188,885
                                                                        ==============      ==============

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
------------------------------------------

Mortgage notes payable, net.................................           $    25,356,989     $    27,423,689
Accounts payable............................................                    69,632             103,747
Accrued interest............................................                   178,326             197,124
Accrued property taxes......................................                   246,979             100,981
Other accrued expenses......................................                    62,776              82,329
Payable to affiliates - General Partner.....................                    61,938           1,388,371
Security deposits and deferred rental revenue...............                   413,459             411,318
                                                                        --------------      --------------
                                                                            26,390,099          29,707,559
                                                                        --------------      --------------

Partners' equity (deficit):
   Limited partners - 100,000 limited partnership
     units authorized; 86,534 limited partnership
     units outstanding......................................                 7,648,141           7,648,141
   General Partner..........................................                (1,041,457)         (3,166,815)
                                                                        --------------      --------------
                                                                             6,606,684           4,481,326
                                                                        --------------      --------------

                                                                       $    32,996,783     $    34,188,885
                                                                        ==============      ==============
</TABLE>
The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                           Three Months Ended                      Six Months Ended
                                                  June 30,                              June 30,
                                      ---------------------------------    ---------------------------------
                                          1997               1996               1997                1996
                                      --------------    ---------------    --------------     --------------
Revenue:
<S>                                   <C>                <C>               <C>                <C>           
   Rental revenue................     $    2,236,551     $    2,318,311    $    4,663,282     $    4,620,968
   Interest......................             63,945             27,166           102,099             57,150
   Gain on sale of real estate...          2,208,359                  -         2,208,359                  -
                                       -------------      -------------     -------------      -------------
     Total revenue...............          4,508,855          2,345,477         6,973,740          4,678,118
                                       -------------      -------------     -------------      -------------

Expenses:
   Interest......................            601,749            672,304         1,263,872          1,347,691
   Depreciation and
     amortization................            468,657            574,217           937,314          1,146,316
   Property taxes................            163,053            184,991           356,229            385,941
   Personnel expenses............            218,827            218,320           495,773            473,226
   Utilities.....................            119,328            126,345           245,424            246,391
   Repair and maintenance........            312,061            360,255           559,031            644,989
   Property management
     fees - affiliates...........            113,236            114,993           230,593            227,185
   Other property operating
     expenses....................            132,496            140,498           269,223            271,829
   General and administrative....             21,093             16,262            52,144             40,082
   General and administrative -
     affiliates..................             61,577             80,821           122,728            161,763
                                       -------------      -------------     -------------      -------------
     Total expenses..............          2,212,077          2,489,006         4,532,331          4,945,413
                                       -------------      -------------     -------------      -------------

Net income (loss)................     $    2,296,778     $     (143,529)   $    2,441,409     $     (267,295)
                                       =============      =============     =============      =============

Net income (loss) allocated to
   limited partners..............     $            -     $     (142,094)   $            -     $     (264,622)
Net income (loss) allocated to
   General Partner...............          2,296,778             (1,435)        2,441,409             (2,673)
                                       -------------      -------------     -------------      -------------

Net income (loss)................     $    2,296,778     $     (143,529)   $    2,441,409     $     (267,295)
                                       =============      =============     =============      =============

Net income (loss) per limited
   partnership unit..............     $            -     $        (1.64)   $            -     $        (3.06)
                                       =============      =============     =============      =============
</TABLE>

The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                                   (Unaudited)

                 For the Six Months Ended June 30, 1997 and 1996

<TABLE>
<CAPTION>
                                                                                                     Total
                                                                                                   Partners'
                                                    General                 Limited                 Equity
                                                    Partner                 Partners               (Deficit)
                                                 ---------------         ---------------       ---------------

<S>                                              <C>                     <C>                   <C>           
Balance at December 31, 1995..............       $   (2,546,836)         $    7,766,250        $    5,219,414

Net loss..................................               (2,673)               (264,622)             (267,295)

Management Incentive Distribution.........             (290,175)                      -              (290,175)
                                                  -------------           -------------         -------------

Balance at June 30, 1996..................       $   (2,839,684)         $    7,501,628        $    4,661,944
                                                  =============           =============         =============


Balance at December 31, 1996..............       $   (3,166,815)         $    7,648,141        $    4,481,326

Net income................................            2,441,409                       -             2,441,409

Management Incentive Distribution.........             (316,051)                      -              (316,051)
                                                  -------------           -------------         -------------

Balance at June 30, 1997..................       $   (1,041,457)         $    7,648,141        $    6,606,684
                                                  =============           =============         =============
</TABLE>





The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>

                        McNEIL REAL ESTATE FUND XIV, LTD.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                Increase (Decrease) in Cash and Cash Equivalents

<TABLE>
<CAPTION>
                                                                                 Six Months Ended
                                                                                     June 30,
                                                                       ------------------------------------
                                                                            1997                 1996
                                                                       ----------------    ----------------
Cash flows from operating activities:
<S>                                                                    <C>                 <C>           
   Cash received from tenants...............................           $     4,588,033     $    4,560,513
   Cash paid to suppliers...................................                (1,661,084)         (1,580,548)
   Cash paid to affiliates..................................                  (382,710)           (394,710)
   Interest received........................................                   102,099              57,150
   Interest paid............................................                (1,178,054)         (1,231,657)
   Property taxes paid and escrowed.........................                  (308,466)           (263,712)
                                                                        --------------      --------------
Net cash provided by operating activities...................                 1,159,818           1,147,036
                                                                        --------------      --------------

Cash flows from investing activities:
   Additions to real estate investments.....................                  (210,585)           (210,824)
   Proceeds from sale of real estate........................                 6,424,694                   -
                                                                        --------------      --------------
Net cash provided by (used in) investing activities.........                 6,214,109            (210,824)
                                                                        --------------      --------------

Cash flows from financing activities:
   Principal payments on mortgage notes
     payable................................................                  (289,609)           (287,956)
   Retirement of mortgage note payable......................                (2,231,438)                  -
   Management incentive distribution paid...................                (1,613,095)                  -
                                                                        --------------      --------------
Net cash used in financing activities.......................                (4,134,142)           (287,956)
                                                                        --------------      --------------

Net increase in cash and cash equivalents...................                 3,239,785             648,256

Cash and cash equivalents at beginning of
   period...................................................                 1,903,902           1,417,948
                                                                        --------------      --------------

Cash and cash equivalents at end of period..................           $     5,143,687     $     2,066,204
                                                                        ==============      ==============
</TABLE>



The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>

                        McNEIL REAL ESTATE FUND XIV, LTD.

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

           Reconciliation of Net Income (Loss) to Net Cash Provided by
                              Operating Activities

<TABLE>
<CAPTION>

                                                                                  Six Months Ended
                                                                                      June 30,
                                                                       ------------------------------------
                                                                             1997                1996
                                                                       ---------------     ----------------
<S>                                                                    <C>                 <C>           
Net income (loss)...........................................           $     2,441,409     $      (267,295)
                                                                        --------------      --------------

Adjustments to reconcile net income (loss) to net cash
   provided by operating activities:
   Depreciation and amortization............................                   937,314           1,146,316
   Amortization of deferred borrowing costs.................                    47,828              47,829
   Amortization of discounts on mortgage
     notes payable..........................................                    56,788              70,261
   Gain on sale of real estate..............................                (2,208,359)                  -
   Changes in assets and liabilities:
     Cash segregated for security deposits..................                   (17,338)            (43,512)
     Accounts receivable....................................                   (54,024)            (35,031)
     Prepaid expenses and other assets......................                    19,872              17,253
     Escrow deposits........................................                  (109,956)             17,361
     Accounts payable.......................................                   (34,115)            (33,284)
     Accrued interest.......................................                   (18,798)             (2,056)
     Accrued property taxes.................................                   145,998             231,546
     Other accrued expenses.................................                   (19,553)            (16,296)
     Payable to affiliates - General Partner................                   (29,389)             (5,762)
     Security deposits and deferred rental
       revenue..............................................                     2,141              19,706
                                                                        --------------      --------------
       Total adjustments....................................                (1,281,591)          1,414,331
                                                                        --------------      --------------

Net cash provided by operating activities...................           $     1,159,818     $     1,147,036
                                                                        ==============      ==============

</TABLE>

The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                        McNEIL REAL ESTATE FUND XIV, LTD.

                          Notes to Financial Statements
                                   (Unaudited)

                                  June 30, 1997


NOTE 1.
-------

McNeil Real Estate Fund XIV, Ltd. (the  "Partnership") is a limited  partnership
organized  under the laws of the State of California to invest in real property.
The general  partner of the Partnership is McNeil  Partners,  L.P. (the "General
Partner"), a Delaware limited partnership, an affiliate of Robert A. McNeil. The
Partnership  is  governed  by an  agreement  of  limited  partnership  ("Amended
Partnership Agreement") that was adopted September 20, 1991. The principal place
of business  for the  Partnership  and the  General  Partner is 13760 Noel Road,
Suite 600, LB70, Dallas, Texas 75240.

In the opinion of management,  the financial  statements reflect all adjustments
necessary for a fair  presentation of the Partnership's  financial  position and
results  of  operations.  All  adjustments  were of a normal  recurring  nature.
However,  the results of  operations  for the six months ended June 30, 1997 are
not  necessarily  indicative  of the results to be expected  for the year ending
December 31, 1997.

NOTE 2.
-------

The  financial  statements  should  be read in  conjunction  with the  financial
statements  contained in the  Partnership's  Annual  Report on Form 10-K for the
year  ended  December  31,  1996,  and the  notes  thereto,  as  filed  with the
Securities and Exchange  Commission,  which is available upon request by writing
to McNeil Real Estate Fund XIV,  Ltd.,  c/o The Herman  Group,  2121 San Jacinto
St., 26th Floor, Dallas, Texas 75201.

NOTE 3.
-------

The  Partnership  pays property  management fees equal to 5% of the gross rental
receipts of the Partnership's properties to McNeil Real Estate Management,  Inc.
("McREMI"),  an  affiliate  of  the  General  Partner,  for  providing  property
management services for the Partnership's  residential and commercial properties
and leasing services for its residential  properties.  McREMI may also choose to
provide leasing services for the Partnership's  commercial properties,  in which
case  McREMI  will  receive  property   management  fees  from  such  commercial
properties  equal to 3% of the  property's  gross rental  receipts  plus leasing
commissions  based on the  prevailing  market rate for such  services  where the
property is located.

The  Partnership  reimburses  McREMI  for  its  costs,  including  overhead,  of
administering the Partnership's affairs.






<PAGE>
Under terms of the Amended  Partnership  Agreement,  the Partnership is paying a
Management  Incentive  Distribution  ("MID") to the General Partner. The maximum
MID is  calculated  as 1% of the tangible  asset value of the  Partnership.  The
maximum MID  percentage  decreases  subsequent to 1999.  Tangible asset value is
determined  by using the  greater  of (i) an amount  calculated  by  applying  a
capitalization  rate  of 9% to the  annualized  net  operating  income  of  each
property or (ii) a value of $10,000 per apartment unit for residential  property
and $50 per gross square foot for commercial  property to arrive at the property
tangible  asset value.  The property  tangible  asset value is then added to the
book value of all other assets excluding intangible items.

MID will be paid to the extent of the lesser of the  Partnership's  excess  cash
flow,  as  defined,  or net  operating  income,  as  defined  (the  "Entitlement
Amount"),  and may be paid (i) in cash, unless there is insufficient cash to pay
the  distribution  in which event any unpaid  portion not taken in Units will be
deferred and is payable,  without interest, from the first available cash and/or
(ii) in Units.  A maximum of 50% of the MID may be paid in Units.  The number of
Units  issued in payment  of the MID is based on the  greater of $50 per Unit or
the net tangible asset value, as defined, per Unit.

Any  amount  of the MID that is paid to the  General  Partner  in Units  will be
treated as if cash is distributed to the General Partner and is then contributed
to the Partnership by the General Partner. The MID represents a return of equity
to the General Partner for increasing cash flow, as defined,  and accordingly is
treated as a distribution.

Compensation,  reimbursements  and  distributions  paid  to or  accrued  for the
benefit of the General Partner and its affiliates are as follows:

                                                             Six Months Ended
                                                                June 30,
                                                         -----------------------
                                                             1997       1996
                                                         ---------   -----------

Property management fees - affiliates..........          $ 230,593   $   227,185
Charged to general and administrative -
   affiliates:
   Partnership administration..................            122,728       161,763
                                                          --------    ----------

                                                         $ 353,321   $   388,948
                                                          ========    ==========

Charged to General Partner's deficit:
   Management Incentive Distribution...........          $ 316,051   $   290,175
                                                          ========    ==========
NOTE 4.
-------

On October 1, 1996, the  Partnership  placed Country Hills Plaza,  Midvale Plaza
and  Redwood  Plaza on the market for sale.  Country  Hills Plaza was sold to an
unaffiliated  purchaser on April 8, 1997.  These three  properties  are shown as
assets held for sale on the  accompanying  financial  statements.  Country Hills
Plaza was sold to an  unaffiliated  purchaser  on April 8, 1997 (see Note 5). In
accordance  with  the  Financial   Accounting  Standards  Board's  Statement  of
Financial  Accounting  Standards  No. 121,  "Accounting  for the  Impairment  of
Long-Lived  Assets and for Long-Lived Assets to be Disposed Of," the Partnership
ceased  recording  depreciation  charges  on these  three  properties  effective
October 1, 1996.
<PAGE>
NOTE 5.
-------

On April 8, 1997, the  Partnership  sold Country Hills Plaza to an  unaffiliated
purchaser for a cash sales price of $6,610,000.  Cash proceeds from the sale, as
well as the gain on sale are detailed below.

                                                     Gain on Sale  Cash Proceeds
                                                     ------------- -------------

   Cash sales price...............................   $  6,610,000  $  6,610,000

   Selling costs..................................       (185,306)     (185,306)
   Mortgage discount written off..................       (397,559)
   Straight-line rent receivables written off.....        (26,828)
   Basis of real estate sold......................     (3,791,948)
                                                      -----------

   Gain on sale of real estate....................   $  2,208,359
                                                      ===========

   Proceeds from sale of real estate..............                    6,424,694
   Retirement of mortgage note payable............                   (2,231,438)
                                                                    -----------

   Net cash proceeds..............................                 $  4,193,256
                                                                    ===========

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

The  Partnership  was formed to  acquire,  operate and  ultimately  dispose of a
portfolio of income-producing real properties. At June 30, 1997, the Partnership
owned  four  apartment   properties  and  two  shopping  centers.   All  of  the
Partnership's properties are subject to mortgage notes.

On October 1, 1996,  the  Partnership  placed its three  commercial  properties,
County Hills Plaza,  Midvale  Plaza and Redwood  Plaza,  on the market for sale.
Consequently, the Partnership's investment in these three properties is shown as
assets held for sale on the accompanying financial statements.

On April 8, 1997, the Partnership  sold Country Hills Plaza for $6,610,000 to an
unaffiliated  buyer. The Partnership has entered into a contract to sell Midvale
Plaza to an  unaffiliated  buyer for  $3,500,000.  The sale of Midvale  Plaza is
scheduled to close during the third  quarter of 1997.  Proceeds from the sale of
the three properties will be used to first,  repay the mortgage note encumbering
the property sold;  second, pay any deferred payments due to the General Partner
or its  affiliates;  third,  ensure that the  Partnership  maintains an adequate
level of cash reserves; and fourth, pay distributions to the Unit holders.








<PAGE>
RESULTS OF OPERATIONS
---------------------

The Partnership earned $2,441,409 for the first six months of 1997.  Included in
net income is a  $2,208,359  gain on the sale of Country  Hills  Plaza.  For the
first six months of 1996, the Partnership  incurred  $267,295 net loss.  Results
for the second quarter showed an improvement from the $143,529 net loss incurred
in 1996 to net income of $2,296,778 for 1997.

Revenues:

Rental  revenue for the first six months of 1997  increased  $42,314 or .9% over
rental revenue earned for the first six months of 1996. Excluding rental revenue
from Country  Hills Plaza,  rental  revenue  increased  $257,624 or 6.2% for the
first six months of 1997 compared to the same period of 1996.

Rental revenue  increased at all of the  Partnership's  properties.  The largest
increase  in both  percentage  and  absolute  terms  was  provided  by  Windrock
Apartments.  After  struggling  with depressed  occupancy rates for three years,
Windrock's  occupancy rate has improved to 91.3% at June 30, 1997, up from 75% a
year earlier. Windrock's rental revenue increased 18.6% for the first six months
of 1997  compared to the same period of 1996.  Increased  rental rates  provided
rental revenue  increases  ranging from 4% to 6% at Embarcadero Club Apartments,
Thunder  Hollow  Apartments  and  Redwood  Plaza.   Rental  revenues   increased
approximately  1.5% at both Tanglewood  Village Apartments and Midvale Plaza. An
increase in rental revenue at Tanglewood  Village was mostly offset by decreased
occupancy,  while an  increase in  occupancy  provided  the  increase in Midvale
Plaza's revenues.

The sale of Country  Hills  Plaza on April 8, 1997  provided a one-time  gain on
sale of real estate  totaling  $2,208,359.  The  Partnership  has entered into a
contract to sell  Midvale  Plaza for  $3,500,000.  If the sale of Midvale  Plaza
closes as  scheduled  during the third  quarter,  the  Partnership  will have an
additional gain on sale of real estate to report for the third quarter.

Expenses:

Partnership expenses decreased $413,082 or 8.4% for the first six months of 1997
as compared to the same period of 1996.  Expenses decreased primarily because of
the sale of Country  Hills  Plaza on April 8,  1997.  After  excluding  expenses
related to Country Hills Plaza, the Partnership's expenses decreased $204,927 or
4.5% for the  first  six  months of 1997  compared  to the same  period of 1996.
Decreased  expenses were recorded  primarily in depreciation  and  amortization,
repair  and  maintenance  and  general  and  administrative   expenses  paid  to
affiliates.   These  decreases  were  offset  by  an  increase  in  general  and
administrative expenses.

Depreciation and amortization  expense  decreased 18.2% for the first six months
of 1997  as  compared  to the  same  period  of  1996.  The  Partnership  ceased
depreciating  its investment in its three commercial  properties,  Country Hills
Plaza, Midvale Plaza and Redwood Plaza,  effective October 1, 1996, the date the
Partnership  placed these  properties on the market for sale.  Properties  being
marketed  for  sale  are  classified  as  "assets  held  for  sale."  Accounting
regulations  specify  that  depreciation  on assets held for sale  should  cease
effective the date the properties are placed on the market for sale.




<PAGE>
Excluding  expenses  related  to Country  Hills  Plaza,  repair and  maintenance
expenses  decreased  14.2% for the first six months of 1997 as  compared  to the
period of 1996. Part of the decrease is attributed to a decrease in snow removal
expenses at Thunder Hollow  Apartments.  Expenses totaling $57,000 were incurred
as a result of severe winter  weather at the  Pennsylvania  property  during the
first six months of 1996.  The comparable  amount for 1997 was only $5,000.  The
decrease  in repair and  maintenance  expenses  also is  attributed  to an extra
$22,000  expended during 1996 to repair windstorm damage to the roof of Windrock
Apartments and to repair damage from a small fire at Windrock Apartments.

General and administrative  expenses paid to affiliates decreased $39,035 or 24%
for the first six months of 1997 as  compared  to the same  period of 1996.  The
decrease is due, in part,  to decreased  charges for investor  services,  which,
beginning in 1997, are provided by a third party vendor instead of by affiliates
of the General Partner.  The switch of investor service expenses from affiliates
to a third party vendor also accounts for the $12,062 or 30% increase in general
and administrative expenses incurred by the Partnership for the first six months
of 1997 as compared to the same period of 1996.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Cash flow from operations  increased $12,782 or 1.1% for the first six months of
1997 as compared to the same period of 1996.  Performance  of the  Partnership's
properties  continues  to  improve.  Windrock  Apartments,  which  had not  been
contributing  to the improved  Partnership  performance,  appears to have turned
around,  and is now generating  increasing  amounts of cash flow. Cash flow from
Partnership  operations  for the first quarter of 1997 was more than adequate to
fund selected capital improvements and to repay the scheduled principal payments
on the Partnership's mortgage debt. Furthermore, the General Partner anticipates
that  operations  for the  balance of 1997 will  continue  to provide  more than
enough cash flow to fund needed capital improvements and debt service payments.

The sale of Country Hills Plaza provided  $4,193,256 for the Partnership,  after
repayment of the Country Hills  mortgage note.  The General  Partner  intends to
distribute  $4,000,000  of these  proceeds to the limited  partners in September
1997. See Income Allocations and Distributions below.

The improving cash position of the  Partnership  allowed the General  Partner to
continue  payment  of  the  Management  Incentive   Distribution   ("MID").  The
Partnership  paid  $1,613,095  of MID  during  the first  six  months of 1997 in
addition to the  $500,000  payment  made during the third  quarter of 1996.  MID
payments  had  been  suspended  since  the  beginning  of 1994 to  increase  the
Partnership's cash reserves. All arrearages of MID have now been paid.

Short-term liquidity:

At June 30, 1997, the Partnership held $5,143,687 of cash and cash  equivalents,
up  $3,239,785  from the  balance at the end of 1996.  The  General  Partner has
announced  that  the  Partnership  will  distribute  $4,000,000  to the  limited
partners in September 1997. See Income Allocation and  Distributions  below. The
excess of cash remaining  after the September  distribution is an adequate level
of  cash  reserves  for  the  Partnership.   Furthermore,  the  General  Partner
anticipates  that cash generated from  operations for the remainder of 1997 will
be sufficient to fund the Partnership's  budgeted capital  improvements and debt
service requirements.

In addition  to the sale of Country  Hills  Plaza,  the  Partnership  has placed
Midvale Plaza and Redwood  Plaza on the market for sale.  Proceeds from the sale
of these  properties will be used to retire the related  mortgage notes payable,
provide for an adequate  level of cash  reserves  for the  Partnership,  and, if
surplus proceeds remain, provide distributions to the limited partners. Although
the General Partner  anticipates  being able to successfully  sell Midvale Plaza
and  Redwood  Plaza,  there  can be no  assurance  that any sale of  Partnership
properties  will provide  sufficient  cash for additional  distributions  to the
limited partners.



<PAGE>
Long-term liquidity:

While the present outlook for the Partnership's  liquidity is favorable,  market
conditions may change and property  operations can  deteriorate.  In that event,
the Partnership  would require other sources of working  capital.  No such other
sources have been  identified,  and the Partnership has no established  lines of
credit.  Other possible actions to resolve working capital  deficiencies include
refinancing or  renegotiating  terms of existing loans,  deferring major capital
expenditures on Partnership properties except where improvements are expected to
enhance the  competitiveness  or marketability  of the properties,  or arranging
working capital support from affiliates.  No affiliate support has been required
in the past,  and there is no assurance  that support from  affiliates  would be
provided in the future,  since  neither the General  Partner nor any  affiliates
have any obligation in this regard.

The  Partnership  has  determined  to begin an  orderly  liquidation  of all the
Partnership's assets. Although there can be no assurance as to the timing of any
liquidation,   it  is  anticipated  that  such   liquidation   would  result  in
distributions  to the limited partners of the cash proceeds from the sale of the
Partnership's properties, subject to cash reserve requirements, as they are sold
with  the  last  property  disposition  before  December  2001,  followed  by  a
dissolution of the  Partnership.  In this regard,  the Partnership  sold Country
Hills Plaza on April 8, 1997, and has placed two of its six remaining properties
on the market for sale.

None of the  Partnership's  remaining  mortgage notes mature before the expected
dissolution of the Partnership.

Income Allocations and Distributions:

Terms of the Amended Partnership Agreement specify that net losses for financial
reporting  purposes  are  allocated  99% to the limited  partners  and 1% to the
General Partner. Net income for financial reporting purposes is allocated to the
General Partner in an amount equal to the greater of (a) 1% of net income or (b)
the  cumulative  amount  of the MID paid  for  which no  income  allocation  has
previously  been made;  any  remaining  net income is  allocated  to the limited
partners. Therefore, for the six month periods ended June 30, 1997 and 1996, net
income of $2,441,409 and net loss of $2,673, respectively, were allocated to the
General Partner. For the six month period ended June 30, 1997, no net income was
allocated to the limited  partners,  while $264,622 of net loss was allocated to
the limited partners for the six months ended June 30, 1996.

With the exception of the MID, distributions to Unit holders have been suspended
since 1986 as a part of the General  Partner's  policy of  maintaining  adequate
cash reserves.  However, as the Partnership's remaining properties are sold, the
General Partner intends to distribute net sales proceeds to the Unit holders. In
this connection,  the Partnership will distribute  $4,000,000 to Unit holders in
September  1997.  This amount  represent the net sales proceeds from the sale of
Country Hills Plaza in April 1997.
<PAGE>
Payments of MID had been  suspended  since the beginning of 1994 to preserve the
cash  reserves  of the  Partnership.  During  the  third  quarter  of 1996,  the
Partnership  resumed paid $500,000 of MID.  During the first six months of 1997,
the  Partnership  paid MID of  $1,613,095.  The 1996  payment,  and the payments
during the first six months of 1997 have  completely  repaid the  balance of MID
due to the General  Partner.  The  Partnership  incurred MID of $316,051 for the
first six months of 1997. The General  Partner will continue to monitor the cash
reserves and working capital requirements of the Partnership to ensure that cash
flows and balances will support  continued MID payments and distributions of net
sales proceeds to Unit holders.

                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
-------  -----------------

James F.  Schofield,  Gerald C. Gillett,  Donna S. Gillett,  Jeffrey  Homburger,
Elizabeth Jung,  Robert Lewis, and Warren Heller et al. v. McNeil Partners L.P.,
McNeil Investors,  Inc., McNeil Real Estate Management,  Inc., Robert A. McNeil,
Carole J. McNeil,  McNeil Pacific  Investors Fund 1972, Ltd., McNeil Real Estate
Fund IX,  Ltd.,  McNeil Real  Estate  Fund X, Ltd.,  McNeil Real Estate Fund XI,
Ltd.,  McNeil  Real Estate Fund XII,  Ltd.,  McNeil Real Estate Fund XIV,  Ltd.,
McNeil Real Estate Fund XV, Ltd.,  McNeil Real Estate Fund XX, L.P., McNeil Real
Estate Fund XXI, L.P.,  McNeil Real Estate Fund XXII,  L.P.,  McNeil Real Estate
Fund XXIV,  L.P.,  McNeil Real Estate  Fund XXV,  L.P.,  McNeil Real Estate Fund
XXVI, L.P., and McNeil Real Estate Fund XXVII,  L.P., et al. - Superior Court of
the State of California for the County of Los Angeles,  Case No. BC133799 (Class
and Derivative Action Complaint).

The action involves  purported  class and derivative  actions brought by limited
partners of each of the fourteen limited partnerships that were named as nominal
defendants as listed above (the  "Partnerships").  Plaintiffs allege that McNeil
Investors, Inc., its affiliate McNeil Real Estate Management,  Inc. and three of
their senior officers and/or directors (collectively, the "Defendants") breached
their  fiduciary  duties and certain  obligations  under the respective  Amended
Partnership  Agreement.  Plaintiffs  allege that  Defendants  have rendered such
Units highly illiquid and  artificially  depressed the prices that are available
for Units on the resale market.  Plaintiffs also allege that Defendants  engaged
in a course of conduct to prevent the  acquisition  of Units by an  affiliate of
Carl  Icahn  by  disseminating  purportedly  false,  misleading  and  inadequate
information.  Plaintiffs  further allege that Defendants  acted to advance their
own personal  interests at the expense of the Partnerships'  public unit holders
by failing to sell Partnership  properties and failing to make  distributions to
unitholders.

On December 16, 1996, the Plaintiffs filed a consolidated and amended complaint.
Plaintiffs  are suing for breach of  fiduciary  duty,  breach of contract and an
accounting,  alleging,  among other things, that the management fees paid to the
McNeil affiliates over the last six years are excessive,  that these fees should
be reduced retroactively and that the respective Amended Partnership  Agreements
governing the Partnerships are invalid.

Defendants  filed a demurrer to the  consolidated  and amended  complaint  and a
motion to strike on February 14, 1997,  seeking to dismiss the  consolidated and
amended complaint in all respects.  A hearing on Defendant's demurrer and motion
to strike  was held on May 5,  1997.  The Court  granted  Defendants'  demurrer,
dismissing the consolidated and amended complaint with leave to amend.


<PAGE>
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
-------  --------------------------------

(a)         Exhibits.

            Exhibit
            Number               Description
            -------              -----------

            4.                   Amended  and   Restated   Limited   Partnership
                                 Agreement dated September 20, 1991. (1)

            11.                  Statement regarding computation of net loss per
                                 limited  partnership unit: net loss per limited
                                 partnership  unit is computed  by dividing  net
                                 loss  allocated to the limited  partners by the
                                 number    of    limited    partnership    units
                                 outstanding.  Per  unit  information  has  been
                                 computed  based on 86,534  limited  partnership
                                 units outstanding in 1997 and 1996.

            27.                  Financial  Data  Schedule for the quarter ended
                                 June 30, 1997.

      (1)   Incorporated  by reference to the Annual  Report of  Registrant,  on
            Form 10-K for the period ended  December 31, 1991, as filed on March
            30, 1992.

   (b) Reports on Form 8-K. On April 21, 1997, the  Partnership  filed a Current
       Report  on Form 8-K to  report  the  sale of  Country  Hills  Plaza to an
       unaffiliated purchaser.



<PAGE>



                        McNEIL REAL ESTATE FUND XIV, LTD.

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized:



                             McNEIL REAL ESTATE FUND XIV, Ltd.

                             By:  McNeil Partners, L.P., General Partner

                                  By: McNeil Investors, Inc., General Partner





August 13, 1997              By: /s/  Ron K. Taylor
---------------                  -----------------------------------------------
Date                             Ron K. Taylor
                                 President and Director of McNeil
                                  Investors, Inc.
                                 (Principal Financial Officer)




August 13, 1997              By: /s/  Brandon K. Flaming
---------------                  -----------------------------------------------
Date                             Brandon K. Flaming
                                 Vice President of McNeil Investors, Inc.
                                 (Principal Accounting Officer)