MULTIFAMILY NOTE
                                 (MULTISTATE)


US $9,000,000.00                        August 24, 1998



     FOR VALUE RECEIVED, the undersigned ("BORROWER") jointly and severally (if
more than one)  promises to pay to the order of NEWPORT MORTGAGE COMPANY, L.P.,
a Texas limited partnership the principal sum of Nine Million Dollars
(US $9,000,000.00), with interest on the unpaid principal balance at the annual
rate of  six 33/100 percent (6.33%).

     1.   DEFINED TERMS.  As used in this Note, (i) the term "LENDER" means the
holder of this Note, and (ii) the term "INDEBTEDNESS" means the principal of,
interest on, or any other amounts due at any time under, this Note, the Security
Instrument or any other Loan Document, including prepayment premiums, late
charges, default interest, and advances to protect the security of the Security
Instrument under Section 12 of the Security Instrument.  "Event of Default" and
other capitalized terms used but not defined in this Note shall have the
meanings given to such terms in the Security Instrument.

     2.   ADDRESS FOR PAYMENT.  All payments due under this Note shall be
payable at 8411 Preston Road, Suite 680, Dallas, Texas 75225 or such other place
as may be designated by written notice to Borrower from or on behalf of Lender.

     3.   PAYMENT OF PRINCIPAL AND INTEREST.  Principal and interest shall be
paid as follows:

     (a)  Unless disbursement of principal is made by Lender to Borrower on the
first day of the month, interest for the period beginning on the date of
disbursement and ending on and including the last day of the month in which such
disbursement is made shall be payable simultaneously with the execution of this
Note.  Interest under this Note shall be computed on the basis of a 360-day year
consisting of twelve 30-day months.

     (b)   Consecutive monthly installments of principal and interest, each in
the amount of Fifty five thousand eight hundred eight-three and 67/100 Dollars
(US $55,883.67), shall be payable on the first day of each month beginning on
October 1, 1998, until the entire unpaid principal balance evidenced by this
Note is fully paid.  Any accrued interest remaining past due for 30 days or more
shall be added to and become part of the unpaid principal balance and shall bear
interest at the rate or rates specified in this Note, and any reference below to
"accrued interest" shall refer to accrued interest which has not become part of
the unpaid principal balance.  Any remaining principal and interest shall be due
and payable on September 1, 2005 or on any earlier date on which the unpaid
principal balance of this Note becomes due and payable, by acceleration or
otherwise (the "MATURITY DATE").  The unpaid principal balance shall continue to
bear interest after the Maturity Date at the Default Rate set forth in this Note
until and including the date on which it is paid in full.

     (c)  Any regularly scheduled monthly installment of principal and interest
that is received by Lender before the date it is due shall be deemed to have
been received on the due date solely for the purpose of calculating interest
due.

     4.   APPLICATION OF PAYMENTS.  If at any time Lender receives, from
Borrower or otherwise, any amount applicable to the Indebtedness which is less
than all amounts due and payable at such time, Lender may apply that payment to
amounts then due and payable in any manner and in any order determined by
Lender, in Lender's discretion.  Borrower agrees that neither Lender's
acceptance of a payment from Borrower in an amount that is less than all amounts
then due and payable nor Lender's application of such payment shall constitute
or be deemed to constitute either a waiver of the unpaid amounts or an accord
and satisfaction.

     5.   SECURITY.  The Indebtedness is secured, among other things, by a
multifamily mortgage, deed to secure debt or deed of trust dated as of the date
of this Note (the "SECURITY INSTRUMENT"), and reference is made to the Security
Instrument for other rights of Lender as to collateral for the Indebtedness.

     6.   ACCELERATION.  If an Event of Default has occurred and is continuing,
the entire unpaid principal balance, any accrued interest, the prepayment
premium payable under Paragraph 10, if any, and all other amounts payable under
this Note and any other Loan Document shall at once become due and payable, at
the option of Lender, without any prior notice to Borrower.  Lender may exercise
this option to accelerate regardless of any prior forbearance.

     7.   LATE CHARGE.  If any monthly amount payable under this Note or under
the Security Instrument or any other Loan Document is not received by Lender
within ten (10) days after the amount is due, Borrower shall pay to Lender,
immediately and without demand by Lender, a late charge equal to five percent
(5%) of such amount.  Borrower acknowledges that its failure to make timely
payments will cause Lender to incur additional expenses in servicing and
processing the loan evidenced by this Note (the "LOAN"), and that it is
extremely difficult and impractical to determine those additional expenses.
Borrower agrees that the late charge payable pursuant to this Paragraph
represents a fair and reasonable estimate, taking into account all circumstances
existing on the date of this Note, of the additional expenses Lender will incur
by reason of such late payment.  The late charge is payable in addition to, and
not in lieu of, any interest payable at the Default Rate pursuant to Paragraph
8.

     8.   DEFAULT RATE.  So long as (a) any monthly installment under this Note
remains past due for 30 days or more, or (b) any other Event of Default has
occurred and is continuing, interest under this Note shall accrue on the unpaid
principal balance from the earlier of the due date of the first unpaid monthly
installment or the occurrence of such other Event of Default, as applicable, at
a rate (the "DEFAULT RATE") equal to the lesser of 4 percentage points above the
rate stated in the first paragraph of this Note or the maximum interest rate
which may be collected from Borrower under applicable law.  If the unpaid
principal balance and all accrued interest are not paid in full on the Maturity
Date, the unpaid principal balance and all accrued interest shall bear interest
from the Maturity Date at the Default Rate.  Borrower also acknowledges that its
failure to make timely payments will cause Lender to incur additional expenses
in servicing and processing the Loan, that, during the time that any monthly
installment under this Note is delinquent for more than 30 days, Lender will
incur additional costs and expenses arising from its loss of the use of the
money due and from the adverse impact on Lender's ability to meet its other
obligations and to take advantage of other investment opportunities, and that it
is extremely difficult and impractical to determine those additional costs and
expenses.  Borrower also acknowledges that, during the time that any monthly
installment under this Note is delinquent for more than 30 days or any other
Event of Default has occurred and is continuing, Lender's risk of nonpayment of
this Note will be materially increased and Lender is entitled to be compensated
for such increased risk.  Borrower agrees that the increase in the rate of
interest payable under this Note to the Default Rate represents a fair and
reasonable estimate, taking into account all circumstances existing on the date
of this Note, of the additional costs and expenses Lender will incur by reason
of the Borrower's delinquent payment and the additional compensation Lender is
entitled to receive for the increased risks of nonpayment associated with a
delinquent loan.

     9.   LIMITS ON PERSONAL LIABILITY.

     (a)  Except as otherwise provided in this Paragraph 9, Borrower shall have
no personal liability under this Note, the Security Instrument or any other Loan
Document for the repayment of the Indebtedness or for the performance of any
other obligations of Borrower under the Loan Documents, and Lender's only
recourse for the satisfaction of the Indebtedness and the performance of such
obligations shall be Lender's exercise of its rights and remedies with respect
to the Mortgaged Property and any other collateral held by Lender as security
for the Indebtedness.  This limitation on Borrower's liability shall not limit
or impair Lender's enforcement of its rights against any guarantor of the
Indebtedness or any guarantor of any obligations of Borrower.

     (b)  Borrower shall be personally liable to Lender for the repayment of a
portion of the Indebtedness equal to zero percent (0%) of the unpaid principal
balance of this Note, plus any other amounts for which Borrower has personal
liability under this Paragraph 9.

     (c)  In addition to Borrower's personal liability under Paragraph 9(b),
Borrower shall be personally liable to Lender for the repayment of a further
portion of the Indebtedness equal to any loss or damage suffered by Lender as a
result of (1) failure of Borrower to pay to Lender upon demand after an Event of
Default all Rents to which Lender is entitled under Section 3(a) of the Security
Instrument and the amount of all security deposits collected by Borrower from
tenants then in residence; (2) failure of Borrower to apply all insurance
proceeds and condemnation proceeds as required by the Security Instrument; or
(3) failure of Borrower to comply with Section 14(d) or (e) of the Security
Instrument relating to the delivery of books and records, statements, schedules
and reports.

     (d)   For purposes of determining Borrower's personal liability under
Paragraph 9(b) and Paragraph 9(c), all payments made by Borrower or any
guarantor of this Note with respect to the Indebtedness and all amounts received
by Lender from the enforcement of its rights under the Security Instrument shall
be applied first to the portion of the Indebtedness for which Borrower has no
personal liability.

     (e)  Borrower shall become personally liable to Lender for the repayment of
all of the Indebtedness upon the occurrence of any of the following Events of
Default: (1) Borrower's acquisition of any property or operation of any business
not permitted by Section 33 of the Security Instrument; (2) a Transfer
(including, but not limited to, a lien or encumbrance) that is an Event of
Default under Section 21 of the Security Instrument, other than a Transfer
consisting solely of the involuntary removal or involuntary withdrawal of a
general partner in a limited partnership or a manager in a limited liability
company; or (3) fraud or written material misrepresentation by Borrower or any
officer, director, partner, member or employee of Borrower in connection with
the application for or creation of the Indebtedness or any request for any
action or consent by Lender.

     (f)  In addition to any personal liability for the Indebtedness, Borrower
shall be personally liable to Lender for (1) the performance of all of
Borrower's obligations under Section 18 of the Security Instrument (relating to
environmental matters); (2) the costs of any audit under Section 14(d) of the
Security Instrument; and (3) any costs and expenses incurred by Lender in
connection with the collection of any amount for which Borrower is personally
liable under this Paragraph 9, including fees and out of pocket expenses of
attorneys and expert witnesses and the costs of conducting any independent audit
of Borrower's books and records to determine the amount for which Borrower has
personal liability.

     (g)  To the extent that Borrower has personal liability under this
Paragraph 9, Lender may exercise its rights against Borrower personally without
regard to whether Lender has exercised any rights against the Mortgaged Property
or any other security, or pursued any rights against any guarantor, or pursued
any other rights available to Lender under this Note, the Security Instrument,
any other Loan Document or applicable law. For purposes of this Paragraph 9, the
term "MORTGAGED PROPERTY" shall not include any funds that (1) have been applied
by Borrower as required or permitted by the Security Instrument prior to the
occurrence of an Event of Default or (2) Borrower was unable to apply as
required or permitted by the Security Instrument because of a bankruptcy,
receivership, or similar judicial proceeding.

     10.  VOLUNTARY AND INVOLUNTARY PREPAYMENTS.

     (a)  A prepayment premium shall be payable in connection with any
prepayment made under this Note as provided below:

          (1)  Borrower may voluntarily prepay all of the unpaid principal
balance of this Note on the last Business Day of a calendar month if Borrower
has given Lender at least 30 days prior notice of its intention to make such
prepayment.  Such prepayment shall be made by paying (A) the amount of principal
being prepaid, (B) all accrued interest, (C) all other sums due Lender at the
time of such prepayment, and (D) the prepayment premium calculated pursuant to
Schedule A.  For all purposes including the accrual of interest, any prepayment
received by Lender on any day other than the last calendar day of the month
shall be deemed to have been received on the last calendar day of such month.
For purposes of this Note, a "BUSINESS DAY" means any day other than a Saturday,
Sunday or any other day on which Lender is not open for business.  Borrower
shall not have the option to voluntarily prepay less than all of the unpaid
principal balance.

          (2)  Upon Lender's exercise of any right of acceleration under this
Note, Borrower shall pay to Lender, in addition to the entire unpaid principal
balance of this Note outstanding at the time of the acceleration, (A) all
accrued interest and all other sums due Lender, and (B) the prepayment premium
calculated pursuant to Schedule A.

          (3)  Any application by Lender of any collateral or other security to
the repayment of any portion of the unpaid principal balance of this Note prior
to the Maturity Date and in the absence of acceleration shall be deemed to be a
partial prepayment by Borrower, requiring the payment to Lender by Borrower of a
prepayment premium.  The amount of any such partial prepayment shall be computed
so as to provide to Lender a prepayment premium computed pursuant to Schedule A
without Borrower having to pay out-of-pocket any additional amounts.

     (b)  Notwithstanding the  provisions of Paragraph 10(a), no prepayment
premium shall be payable with respect to (A) any prepayment made no more than
thirty (30) days before the Maturity Date, or (B) any prepayment occurring as a
result of the application of any insurance proceeds or condemnation award under
the Security Instrument.

     (c)  Schedule A is hereby incorporated by reference into this Note.

     (d)  Any permitted or required prepayment of less than the unpaid principal
balance of this Note shall not extend or postpone the due date of any subsequent
monthly installments or change the amount of such installments, unless Lender
agrees otherwise in writing.

     (e)  Borrower recognizes that any prepayment of the unpaid principal
balance of this Note, whether voluntary or involuntary or resulting from a
default by Borrower, will result in Lender's incurring loss, including
reinvestment loss, additional expense and frustration or impairment of Lender's
ability to meet its commitments to third parties.  Borrower agrees to pay to
Lender upon demand damages for the detriment caused by any prepayment, and
agrees that it is extremely difficult and impractical to ascertain the extent of
such damages.  Borrower therefore acknowledges and agrees that the formula for
calculating prepayment premiums set forth on Schedule A represents a reasonable
estimate of the damages Lender will incur because of a prepayment.

     (f)  Borrower further acknowledges that the prepayment premium provisions
of this Note are a material part of the consideration for the Loan, and
acknowledges that the terms of this Note are in other respects more favorable to
Borrower as a result of the Borrower's voluntary agreement to the prepayment
premium provisions.

     11.  COSTS AND EXPENSES.  Borrower shall pay all expenses and costs,
including fees and out-of-pocket expenses of attorneys and expert witnesses and
costs of investigation, incurred by Lender as a result of any default under this
Note or in connection with efforts to collect any amount due under this Note, or
to enforce the provisions of any of the other Loan Documents, including those
incurred in post-judgment collection efforts and in any bankruptcy proceeding
(including any action for relief from the automatic stay of any bankruptcy
proceeding) or judicial or non-judicial foreclosure proceeding.

     12.  FORBEARANCE.  Any forbearance by Lender in exercising any right or
remedy under this Note, the Security Instrument, or any other Loan Document or
otherwise afforded by applicable law, shall not be a waiver of or preclude the
exercise of that or any other right or remedy.  The acceptance by Lender of any
payment after the due date of such payment, or in an amount which is less than
the required payment, shall not be a waiver of Lender's right to require prompt
payment when due of all other payments or to exercise any right or remedy with
respect to any failure to make prompt payment.  Enforcement by Lender of any
security for Borrower's obligations under this Note shall not constitute an
election by Lender of remedies so as to preclude the exercise of any other right
or remedy available to Lender.

     13.  WAIVERS.  Presentment, demand, notice of dishonor, protest, notice of
acceleration, notice of intent to demand or accelerate payment or maturity,
presentment for payment, notice of nonpayment, grace, and diligence in
collecting the Indebtedness are waived by Borrower and all endorsers and
guarantors of this Note and all other third party obligors.

     14.  LOAN CHARGES.  If any applicable law limiting the amount of interest
or other charges permitted to be collected from Borrower in connection with the
Loan is interpreted so that any interest or other charge provided for in any
Loan Document, whether considered separately or together with other charges
provided for in any other Loan Document, violates that law, and Borrower is
entitled to the benefit of that law, that interest or charge is hereby reduced
to the extent necessary to eliminate that violation.  The amounts, if any,
previously paid to Lender in excess of the permitted amounts shall be applied by
Lender to reduce the unpaid principal balance of this Note.  For the purpose of
determining whether any applicable law limiting the amount of interest or other
charges permitted to be collected from Borrower has been violated, all
Indebtedness that constitutes interest, as well as all other charges made in
connection with the Indebtedness that constitute interest, shall be deemed to be
allocated and spread ratably over the stated term of the Note.  Unless otherwise
required by applicable law, such allocation and spreading shall be effected in
such a manner that the rate of interest so computed is uniform throughout the
stated term of the Note.

     15.  COMMERCIAL PURPOSE.  Borrower represents that the Indebtedness is
being  incurred by Borrower solely for the purpose of carrying on a business or
commercial enterprise, and not for personal, family or household purposes.

     16.  COUNTING OF DAYS.  Except where otherwise specifically provided, any
reference in this Note to a period of "days" means calendar days, not Business
Days.

     17.  GOVERNING LAW.  This Note shall be governed by the law of the
jurisdiction in which the Land is located.

     18.  CAPTIONS.  The captions of the paragraphs of this Note are for
convenience only and shall be disregarded in construing this Note.

     19.  NOTICES.  All notices, demands and other communications required or
permitted to be given by Lender to Borrower pursuant to this Note shall be given
in accordance with Section 31 of the Security Instrument.

     20.  CONSENT TO JURISDICTION AND VENUE.  Borrower agrees that any
controversy arising under or in relation to this Note shall be litigated
exclusively in the jurisdiction in which the Land is located (the "PROPERTY
JURISDICTION").  The state and federal courts and authorities with jurisdiction
in the Property Jurisdiction shall have exclusive jurisdiction over all
controversies which shall arise under or in relation to this Note.  Borrower
irrevocably consents to service, jurisdiction, and venue of such courts for any
such litigation and waives any other venue to which it might be entitled by
virtue of domicile, habitual residence or otherwise.

     21.  WAIVER OF TRIAL BY JURY.  BORROWER AND LENDER EACH (A) AGREES NOT TO
ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE
RELATIONSHIP BETWEEN THE PARTIES AS LENDER AND BORROWER THAT IS TRIABLE OF RIGHT
BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE
TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE.  THIS WAIVER OF
RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND
VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

     ATTACHED SCHEDULES.  THE FOLLOWING SCHEDULES ARE ATTACHED TO THIS NOTE:

     |X |   SCHEDULE A   PREPAYMENT PREMIUM (REQUIRED)

     |X |   SCHEDULE B   MODIFICATIONS TO MULTIFAMILY NOTE

     IN WITNESS WHEREOF, Borrower has signed and delivered this Note or has
caused this Note to be signed and delivered by its duly authorized
representative.

                         BORROWER:

                         CENTURY PROPERTIES FUND XVIII,
                         a California limited partnership

                         By:  FOX PARTNERS, a California general
                              partnership, General Partner

                              By:  Fox Capital Management Corporation,
                                   a California corporation, Managing
                                   General Partner


                                   By: /s/ Robert D. Long Jr.
                                      Robert D. Long, Jr.,
                                      Vice President

Borrower's Social Security/Employer ID Number 94-2834149



                                 SCHEDULE A     

                             PREPAYMENT PREMIUM


Any prepayment premium payable under Paragraph 10 of this Note shall be computed
as follows:

     (a)  If the prepayment is made between the date of this Note and the date
that is seventy-eight (78) months after the first day of the first calendar
month following the date of this Note (the "YIELD MAINTENANCE PERIOD"), the
prepayment premium shall be the greater of:

     (i)  1.0% of the unpaid principal balance of this Note; or

     (ii) the product obtained by multiplying:

          (A)  the amount of principal being prepaid,

               by

          (B)  the excess (if any) of the Monthly Note Rate over the Assumed
               Reinvestment Rate,

               by

          (C)  the Present Value Factor.

          For purposes of subparagraph (ii), the following definitions shall
          apply:

          MONTHLY NOTE RATE: one-twelfth (1/12) of the annual interest rate of
          the Note, expressed as a decimal calculated to five digits.

          PREPAYMENT DATE:  in the case of a voluntary prepayment, the date on
          which the prepayment is made; in any other case, the date on which
          Lender accelerates the unpaid principal balance of the Note.

          ASSUMED REINVESTMENT RATE:  one-twelfth (1/12) of the yield rate as of
          the date 5 Business Days before the Prepayment Date, on the 5.625%
          U.S. Treasury Security due May 1, 2005, as reported in The Wall Street
          Journal, expressed as a decimal calculated to five digits.  In the
          event that no yield is published on the applicable date for the
          Treasury Security used to determine the Assumed Reinvestment Rate,
          Lender, in its discretion, shall select the non-callable Treasury
          Security maturing in the same year as the Treasury Security specified
          above with the lowest yield published in The Wall Street Journal as of
          the applicable date.  If the publication of such yield rates in The
          Wall Street Journal is discontinued for any reason, Lender shall
          select a security with a comparable rate and term to the Treasury
          Security used to determine the Assumed Reinvestment Rate.  The
          selection of an alternate security pursuant to this Paragraph shall be
          made in Lender's discretion.

          PRESENT VALUE FACTOR:  the factor that discounts to present value the
          costs resulting to Lender from the difference in interest rates during
          the months remaining in the Yield Maintenance Period, using the
          Assumed Reinvestment Rate as the discount rate, with monthly
          compounding, expressed numerically as follows:

                                   1
                               1(1+ARR)
                                  ARR


          N = number of months remaining in Yield Maintenance Period

          ARR = Assumed Reinvestment Rate

     (b)    If the prepayment is made after the expiration of the Yield
Maintenance Period but more than ninety (90) days before the Maturity Date, the
prepayment premium shall be 1.0% of the unpaid principal balance of this Note.



                                 SCHEDULE B


                     MODIFICATIONS TO MULTIFAMILY NOTE


The foregoing Multifamily Note is hereby modified in the following respects:

A.    The final sentence of Paragraph 9(a) is amended to read as follows:

          This limitation on Borrower's liability shall not limit or
          impair Lender's enforcement of its rights against any
          guarantor of the Indebtedness or any guarantor of any
          obligations of Borrower in accordance with the applicable
          guaranty.

B.   Clause (3) of Paragraph 9(c) is modified to read as follows:

           (3) failure of Borrower to comply with Section 14(e) of the
          Security Instrument relating to the delivery of books and
          records, statements, schedules and reports.

C.   In clause (3) of Paragraph 9(e), "fraud or written material
     misrepresentation" is changed to "fraud or intentional, written material
     misrepresentation."

D.    Paragraph 9(f) is modified to read as follows:

               (f)      In addition to any personal liability for the
          Indebtedness, Borrower shall be personally liable to Lender
          for (1) the performance of all of Borrower's obligations
          under Section 18 of the Security Instrument (relating to
          environmental matters) and (2) any costs and expenses
          incurred by Lender in connection with the collection of any
          amount for which Borrower is personally liable under this
          Paragraph 9, including reasonable fees and out of pocket
          expenses of attorneys and expert witnesses and the costs of
          conducting any independent audit of Borrower's books and
          records to determine the amount for which Borrower has
          personal liability. The personal liability of Borrower with
          respect to its obligations under Section 18 of the Security
          Instrument with respect to such obligations shall not exceed
          $1,000,000 in the aggregate.


E.    Section 10(b) is modified to read as follows:

               (b)      Notwithstanding the  provisions of Paragraph
          10(a), no prepayment premium shall be payable with respect
          to (A) any prepayment made no more than 90 days before the
          Maturity Date, (B) any prepayment occurring as a result of
          the application of any insurance proceeds or condemnation
          award under the Security Instrument or (C) any amounts
          disbursed by Lender under Section 12 of the Security
          Instrument.

F.   The phrase "default under this Note" in Paragraph 11 is changed to "Event
     of Default as defined in Section 22 of the Security Instrument."

G.   Clause (1) of Paragraph 9(e) shall not apply.

No other modifications are made to the Note.


                                                 /s/ RL
                                                 BORROWER'S INITIALS