February    , 2000


United States
Securities and Exchange Commission
Washington, D.C.  20549


RE:   Shelter Properties VI
      Form 10-KSB
      File No. 0-13261

To Whom it May Concern:

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

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

Sincerely,



Stephen Waters
Real Estate Controller


<PAGE>


                  FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER
                                SECTION 13 OR 15(d)

                                    Form 10-KSB

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

                     For the fiscal year ended October 31, 1999

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

                For the transition period from _________to _________

                           Commission file number 0-13261

                               SHELTER PROPERTIES VI
                   (Name of small business issuer in its charter)

      South Carolina                                          57-0755618
(State or other jurisdiction of                            (I.R.S.Employer
 incorporation or organization)                           Identification No.)

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

                                   (864) 239-1000
                             Issuer's telephone number

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

                                        None

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

                             Limited Partnership Units
                             -------------------------
                                  (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act of 1934 during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X No___

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

State issuer's revenues for its most recent fiscal year.  $10,729,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests,  as of a specified date within the past 60 days. No market exists for
the  limited  partnership  interests  of  the  Registrant,  and,  therefore,  no
aggregate market value can be determined.

                    -------------------------------------------
                        DOCUMENTS INCORPORATED BY REFERENCE

                                        None

<PAGE>

                                      PART I

Item 1.     Description of Business

Shelter  Properties VI (the  "Partnership" or  "Registrant")  was organized as a
limited  partnership  under the laws of the State of South Carolina on August 3,
1983.  The general  partner  responsible  for  management  of the  Partnership's
business is Shelter Realty VI  Corporation,  a South Carolina  corporation  (the
"Corporate General Partner").  The only other general partner of the Partnership
was N. Barton Tuck,  Jr. Mr. Tuck was not an affiliate of the Corporate  General
Partner  and  was  effectively  prohibited  by  the  Partnership's   partnership
agreement (the "Partnership  Agreement") from participating in the management of
the Partnership. In June 1999, Mr. Tuck's general partner interest was purchased
by AIMCO Properties,  L.P., an affiliate of the Corporate  General Partner.  The
Corporate General Partner is a subsidiary of Apartment Investment and Management
Company ("AIMCO").

The  Registrant  is  engaged in the  business  of  operating  and  holding  real
properties for investment.  In 1984 and 1985 during its acquisition  phase,  the
Registrant  acquired  eight  existing  apartment   properties.   The  Registrant
continues to own and operate six of these  properties.  See "Item 2. Description
of  Properties."  The  property   management   services  are  performed  at  the
Partnership's  properties by AIMCO. The Partnership  Agreement provides that the
Partnership  is to terminate on December 31, 2023,  unless  terminated  prior to
such date.

Commencing  March 22, 1984, the Registrant  offered,  pursuant to a Registration
Statement filed with the Securities and Exchange Commission,  up to 34,900 Units
of Limited Partnership  Interest (the "Units") at a purchase price of $1,000 per
Unit with a minimum  purchase of 5 Units  ($5,000),  or 2 Units  ($2,000) for an
Individual  Retirement Account. By means of Supplement No. 4 dated September 28,
1984, the Partnership offered for sale an additional 15,000 Units. The Corporate
General Partner purchased 100 units as required by the Partnership Agreement.

The offering  terminated in October 1984. Upon termination of the offering,  the
Registrant  had accepted  subscriptions  for 42,324  Units,  including 100 Units
purchased by the Corporate  General  Partner,  for an aggregate of  $42,324,000.
Unsold Units  (numbering  7,676) were  deregistered  pursuant to Post  Effective
Amendment No. 1 to Registration  Statement No. 2-93285 filed with the Securities
and  Exchange   Commission  on  November  13,  1984.  The  Registrant   invested
approximately   $30,300,000  of  such  proceeds  in  eight  existing   apartment
properties. Since its initial offering, the Registrant has not received, nor are
limited partners required to make, additional capital contributions.

The Registrant  has no employees.  Management  and  administrative  services are
performed  by the  Corporate  General  Partner  and by  agents  retained  by the
Corporate General Partner. The property management services are performed at the
Partnership's properties by AIMCO.

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

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

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

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

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

Transfer of Control

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

<PAGE>

Item 2.     Description of Properties

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

                                 Date of
Property                         Purchase      Type of Ownership          Use

Rocky Creek Apartments           06/29/84     Fee ownership subject    Apartment
  Augusta, Georgia                            to first and second      120 units
                                              mortgages

Carriage House Apartments        06/29/84     Fee ownership subject    Apartment
  Gastonia, North Carolina                    to first and second      102 units
                                              mortgages

Nottingham Square Apartments     08/31/84     Fee ownership subject    Apartment
  Des Moines, Iowa                            to first and second      442 units
                                              mortgages

Foxfire Apartments/              09/30/84     Fee ownership subject    Apartment
Barcelona Apartments             03/28/85     to first and second      354 units
  Durham, North Carolina                      mortgages

River Reach Apartments           01/30/85     Fee ownership subject    Apartment
  Jacksonville, Florida                       to first and second      298 units
                                              mortgages

Village Garden Apartments        03/01/85     Fee ownership subject    Apartment
  Fort Collins, Colorado                      to first and second      141 units
                                              mortgages

Schedule of Properties

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

                   Gross
                  Carrying   Accumulated                             Federal
Property            Value    Depreciation     Rate       Method     Tax Basis
--------            -----    ------------     ----       ------     ---------
                       (in thousands)                             (in thousands)

Rocky Creek       $ 4,630     $ 2,392      5-35 yrs       SL        $   882

Carriage House      4,022       2,379      5-27 yrs       SL            492

Nottingham Square  15,207       8,008      5-29 yrs       SL          4,211

Foxfire/Barcelona  12,298       6,418      5-31 yrs       SL          3,619

River Reach        14,569       7,598      5-27 yrs       SL          3,792

Village Garden      4,432       2,108      5-30 yrs       SL          1,486
                   ------      ------                                ------

                  $55,158     $28,903                               $14,482
                   ======      ======                                ======

See  "Note A" to  financial  statements  in "Item  7" for a  description  of the
Partnership's  depreciation  policy  and  "Note  I"  for  change  in  accounting
principle.

<PAGE>

Schedule of Property Indebtedness

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

                    Principal                                      Principal
                    Balance At                                      Balance
                    October 31,  Interest   Period    Maturity      Due At
Property               1999        Rate    Amortized    Date      Maturity(2)
--------               ----        ----    ---------    ----      -----------
                  (in thousands)                                 (in thousands)
Rocky Creek
  1st mortgage       $ 1,991      7.60%      (1)       11/15/02     $ 1,737
   2nd mortgage           74      7.60%      (1)       11/15/02          74

Carriage House
  1st mortgage         1,836      7.60%      (1)       11/15/02       1,601
  2nd mortgage            68      7.60%      (1)       11/15/02          68

Nottingham Square
  1st mortgage         7,188      7.60%      (1)       11/15/02       6,268
  2nd mortgage           268      7.60%      (1)       11/15/02         268

Foxfire/Barcelona
  1st mortgage         5,195      7.60%      (1)       11/15/02       4,531
  2nd mortgage           193      7.60%      (1)       11/15/02         193

River Reach
  1st mortgage         6,754      7.60%      (1)       11/15/02       5,890
  2nd mortgage           252      7.60%      (1)       11/15/02         252

Village Garden
  1st mortgage         2,338      7.60%      (1)       11/15/02       2,039
  2nd mortgage            87      7.60%      (1)       11/15/02          87
                      ------                                         ------
                      26,244                                        $23,008
                      ======

Less unamortized
  discount              (811)
                      ------
                     $25,433

(1)  The  principal  balance is being  amortized  over 257 months with a balloon
     payment due November 15, 2002.

(2)  See "Item 7. Financial Statements - Note C" for information with respect to
     the Partnership's  ability to prepay these loans and other specific details
     about the loans.


<PAGE>

Rental Rates and Occupancy

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

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

 Rocky Creek                   $7,051          $6,886         92%           89%
 Carriage House                 7,561           7,352         93%           86%
 Nottingham Square              6,929           6,724         94%           88%
 Foxfire/Barcelona              7,325           7,219         96%           92%
 River Reach                    8,569           8,242         95%           97%
 Village Garden                 8,139           7,806         97%           96%

The  Corporate  General  Partner  attributes  the increase in occupancy at Rocky
Creek to an  increase  in  marketing  efforts  and the use of  concessions.  The
increase in occupancy at Carriage House is attributed to extensive marketing and
attention  to  renewals.  The  increase in  occupancy  at  Nottingham  Square is
attributed to an increase in marketing efforts and physical improvements made to
the property.  The increase in occupancy at  Foxfire/Barcelona  is attributed to
renting the corporate units to a construction company building a hospital in the
area.  Rental rates, at all the properties,  increased  during the twelve months
ended October 31, 1999.

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

Schedule of Real Estate Taxes and Rates

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

                                    1999             1999
                                 Billing(1)          Rate
                                 ----------          ----
                               (in thousands)

Rocky Creek                        $ 40              2.82%
Carriage House                       40              1.30%
Nottingham Square                   434              3.22%
Foxfire/Barcelona                   163              1.61%
River Reach                         221              2.07%
Village Garden                       47              8.79%

(1)   Due to  these  properties  having a fiscal  year  different  than the real
      estate tax year, tax expense, as stated in the Partnership's  Statement of
      Operations, does not agree to the 1999 billings.


<PAGE>

Capital Improvements

Rocky Creek

During the twelve  months  ended  October 31,  1999,  the  Partnership  expended
approximately   $39,000  for  capital  improvements  at  Rocky  Creek  primarily
consisting of floor covering, appliance replacement, landscaping, and structural
improvements.  These  improvements  were funded from Partnership  reserves.  The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property for the upcoming year. The minimum amount to be budgeted is expected to
be $300 per unit or $36,000.  Additional improvements may be considered and will
depend on the physical condition of the property as well as replacement reserves
and anticipated cash flow generated by the property.

Carriage House

During the twelve  months  ended  October 31,  1999,  the  Partnership  expended
approximately  $128,000 for capital  improvements  at Carriage  House  primarily
consisting  of floor  covering,  exterior  painting,  electrical  upgrades,  and
heating  and air  conditioning  upgrades.  These  improvements  were funded from
Partnership  reserves and  operating  cash flow.  The  Partnership  is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The  minimum  amount  to  be  budgeted  is  expected  to be  $300  per  unit  or
approximately $31,000. Additional improvements may be considered and will depend
on the physical  condition of the property as well as  replacement  reserves and
anticipated cash flow generated by the property.

Nottingham Square

During the twelve  months  ended  October 31,  1999,  the  Partnership  expended
approximately  $286,000 for capital  improvements at Nottingham Square primarily
consisting of floor covering, heating and air conditioning upgrades, cabinet and
countertop replacement, and other building improvements. These improvements were
funded from Partnership  reserves.  The Partnership is currently  evaluating the
capital  improvement  needs of the property for the upcoming  year.  The minimum
amount to be budgeted is expected to be $300 per unit or approximately $133,000.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

Foxfire/Barcelona

During the twelve  months  ended  October 31,  1999,  the  Partnership  expended
approximately  $498,000 for capital improvements at Foxfire/Barcelona  primarily
consisting of building and parking lot  enhancements,  floor covering,  and pool
enhancements.  These  improvements  were funded from  Partnership  reserves  and
operating  cash flows.  The  Partnership  is  currently  evaluating  the capital
improvement  needs of the property for the upcoming  year. The minimum amount to
be  budgeted  is  expected  to be  $300  per  unit  or  approximately  $106,000.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

<PAGE>

River Reach

During the twelve  months  ended  October 31,  1999,  the  Partnership  expended
approximately  $213,000  for  capital  improvements  at  River  Reach  primarily
consisting of floor covering,  appliance replacement,  interior decoration,  air
conditioning  upgrades,  and landscaping.  These  improvements  were funded from
Partnership  reserves.  The  Partnership  is  currently  evaluating  the capital
improvement  needs of the property for the upcoming  year. The minimum amount to
be budgeted is expected to be $300 per unit or approximately $89,000. Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement  reserves and anticipated cash flow generated by
the property.

Village Gardens

During the twelve  months  ended  October 31,  1999,  the  Partnership  expended
approximately  $318,000 for capital  improvements at Village  Gardens  primarily
consisting  of floor  covering,  structural  improvements,  recreation  facility
improvements,  swimming pool enhancements,  exterior painting,  and water heater
replacements.  These  improvements  were funded from  Partnership  reserves  and
operating  cash flow.  The  Partnership  is  currently  evaluating  the  capital
improvement  needs of the property for the upcoming  year. The minimum amount to
be budgeted is expected to be $300 per unit or approximately $42,000. Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement  reserves and anticipated cash flow generated by
the property.

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

Item 3.     Legal Proceedings

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

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

Item 4.     Submission of Matters to a Vote of Partners
            -------------------------------------------

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


<PAGE>


                                      PART II

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

The Partnership,  a publicly-held  limited partnership,  offered and sold 42,324
limited  partnership  units  aggregating  $42,324,000  inclusive  of  100  units
purchased by the Corporate General Partner. The Partnership  currently has 1,920
holders  of  record  owning an  aggregate  of 42,324  Units.  Affiliates  of the
Corporate  General  Partner owned 16,519 units or 39.03% at October 31, 1999. No
public  trading  market has developed for the Units,  and it is not  anticipated
that such a market will develop in the future.

The following table sets forth the distributions made by the Partnership for the
years ended October 31, 1998 and 1999, as well as for the subsequent period from
November 1, 1999 to January 27, 2000:

                                                Distributions

                                                           Per Limited
                                        Aggregate        Partnership Unit
                                        ---------        ----------------
                                      (in thousands)

        11/1/97 - 10/31/98                     --                 --

        11/1/98 - 10/31/99             $2,100,000 (1)         $49.45

        11/1/99 - 1/27/00                $428,000 (2)         $10.02


(1)   Consists of $688,000 of cash from  operations  and $1,412,000 of cash from
      previously undistributed surplus funds from a 1995 property sale.

(2)   Distribution was made from cash from operations.

Future cash  distributions  will depend on the levels of net cash generated from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,  refinancings, and/or property sales. The Partnership's distribution
policy is reviewed on a semi-annual basis.  There can be no assurance,  however,
that the  Partnership  will  generate  sufficient  funds from  operations  after
required  capital  expenditures  to permit any additional  distributions  to its
partners in fiscal year 2000 or subsequent periods. In addition, the Partnership
is restricted from making distributions if the amount in the reserve account for
each property  maintained by the mortgage lender is less than $400 per apartment
unit at such  property.  The reserve  accounts are currently  fully funded.  See
"Item  6.  Management's  Discussion  and  Analysis  or Plan of  Operations"  for
information relating to anticipated capital expenditures at the properties.

Several tender offers were made by various parties,  including affiliates of the
general partners,  during the fiscal years ended October 31, 1999 and 1998. As a
result of these tender offers, at October 31, 1999, AIMCO and its affiliates own
16,519 units of limited partnership units in the Partnership representing 39.03%
of the  outstanding  units.  Subsequent to October 31, 1999, an affiliate of the
General Partners  acquired an additional  7,109 units, or 16.80%,  pursuant to a
tender offer.  It is possible that AIMCO or its affiliates will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO.  Consequently,  AIMCO is in a position to influence all voting  decisions
with respect to the  Registrant.  Under the Partnership  Agreement,  unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters.  When voting on matters,  AIMCO would in all likelihood vote
the Units it acquired in a manner  favorable  to the  interest of the  Corporate
General Partner because of their affiliation with the Corporate General Partner.

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

The  matters  discussed  in this Form  10-KSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained  in this Form 10-KSB and the other  filings  with the  Securities  and
Exchange  Commission made by the Registrant from time to time. The discussion of
the Registrant's business and results of operations,  including  forward-looking
statements pertaining to such matters, does not take into account the effects of
any changes to the Registrant's business and results of operations. Accordingly,
actual   results   could  differ   materially   from  those   projected  in  the
forward-looking  statements as a result of a number of factors,  including those
identified herein.

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

Results of Operations

The   Registrant's  net  income  for  the  year  ended  October  31,  1999,  was
approximately  $899,000 as compared to approximately $322,000 for the year ended
October 31, 1998. (See "Item 7. Financial Statements, Note D - Income Taxes" for
a  reconciliation  of these amounts to the  Registrant's  federal taxable income
(loss).) The increase in net income was due to an increase in total revenues and
a cumulative effect on prior years of a change in accounting principle which was
partially offset by a increase in total expenses.

Total revenues increased due to increases in rental income and other income. The
increase in rental income is primarily  attributable to an increase in occupancy
at all of the Registrant's properties, with the exception of a small decrease at
River  Reach,  which was  combined  with  increases  in rental  rates at all the
Registrant's  investment  properties.  The increase in other income is primarily
due to an increase in telephone and lease cancellation fees.

The increase in total expenses  during the twelve month period ended October 31,
1999,  is  attributable  to  an  increase  in  operating  expense,  general  and
administrative expenses and depreciation expense which were substantially offset
by a decrease in interest and property tax expenses. Operating expense increased
primarily due to increases in property and  administrative  expenses  related to
the  Partnership's  efforts to increase  occupancy.  General and  administrative
expenses  increased  primarily due to an increase in legal fees due to a lawsuit
settlement previously disclosed in the Partnership's Form 10-QSB as of April 30,
1999, and was partially  offset by decreases in general partner  reimbursements.
Included in general  and  administrative  expenses at both  October 31, 1999 and
1998, are  reimbursements  to the Corporate  General  Partner  allowed under the
Partnership  Agreement  associated  with its management of the  Partnership.  In
addition,  costs  associated  with the quarterly and annual  communication  with
investors and regulatory  agencies and the annual audit and appraisals  required
by the  Partnership  Agreement are also included.  The increase in  depreciation
expense is due to the capital  improvements  and replacements in the last twelve
months. Interest expense decreased as a result of the principal payments made on
the debt encumbering all of the Partnership's  properties.  Property tax expense
decreased due to the timing of the receipt of tax bills.

Effective November 1, 1998, the Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping.  The Partnership
believes that this accounting principle change is preferable because it provides
a better matching of expenses with the related benefit of the  expenditures  and
it is  consistent  with  industry  practice  and the  policies of the  Corporate
General Partner.  The effect of the change in 1999 was to increase income before
the change by  approximately  $186,000.  The  cumulative  effect  adjustment  of
approximately  $253,000 is the result of applying the  aforementioned  change in
accounting  principle  retroactively  and is  included  in income for 1999.  The
accounting  principle  change  will  not  have an  affect  on cash  flow,  funds
available for distribution or fees payable to the Corporate  General Partner and
affiliates.

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

Liquidity and Capital Resources

At  October  31,  1999,  the  Registrant  had  cash  and  cash   equivalents  of
approximately  $2,813,000 as compared to approximately $3,111,000 at October 31,
1998. The decrease in cash and cash equivalents is due to approximately $612,000
of cash used in investing  activities and approximately  $3,020,000 of cash used
in financing  activities,  which was offset by approximately  $3,334,000 of cash
provided by operating activities. Cash used in investing activities consisted of
capital  improvements  and  replacements and was partially offset by withdrawals
from escrow accounts  maintained by the mortgage lender.  Cash used in financing
activities  consisted of payments on the mortgages  encumbering the Registrant's
properties and partner distributions. The Registrant invests its working capital
reserves in a money market account.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state,  and local legal and  regulatory  requirements.  The minimum amount to be
budgeted by the Partnership is expected to be approximately  $437,000 in capital
improvements  for all of the  Partnership's  properties in fiscal year 2000. The
capital  expenditures will be incurred only if cash is available from operations
and Partnership  reserves. To the extent that such budgeted capital improvements
are  completed,  the  Registrant's  distributable  cash  flow,  if  any,  may be
adversely affected at least in the short term.

The  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness of approximately  $25,433,000,  net of discount,  is amortized over
257 months with a balloon payment of  approximately  $23,008,000 due on November
15,  2002.  The  Corporate  General  Partner  will  attempt  to  refinance  such
indebtedness  and/or sell the  properties  prior to such  maturity  date. If the
properties cannot be refinanced or sold for a sufficient  amount, the Registrant
will risk losing such properties through foreclosure.

During the year ended October 31, 1999, the  Partnership  made a distribution of
approximately  $2,100,000,  consisting of approximately $688,000  (approximately
$681,000,  or $16.09 per Unit, to the limited  partners) of cash from operations
and  approximately  $1,412,000  (or $33.36 per Unit) to the limited  partners of
cash  from  previously  undistributed  surplus  funds  from a fiscal  year  1995
property sale. The  Partnership  did not make any  distributions  for the fiscal
year ended October 31, 1998. The Partnership declared and paid a distribution of
approximately  $428,000  (approximately  $424,000,  or $10.02  per unit,  to the
limited partners) of cash from operations subsequent to October 31, 1999. Future
cash  distributions  will  depend  on the  levels  of net  cash  generated  from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,  refinancings, and/or property sales. The Partnership's distribution
policy is reviewed on a semi-annual basis.  There can be no assurance,  however,
that the  Partnership  will  generate  sufficient  funds from  operations  after
required  capital  expenditures  to permit any additional  distributions  to its
partners in fiscal year 2000 or subsequent periods. In addition, the Partnership
is restricted from making distributions if the amount in the reserve account for
each property  maintained by the mortgage lender is less than $400 per apartment
unit at such property. The reserve accounts are currently fully funded.

Several tender offers were made by various parties,  including affiliates of the
general partners,  during the fiscal years ended October 31, 1999 and 1998. As a
result of these tender offers, at October 31, 1999, AIMCO and its affiliates own
16,519 units of limited partnership units in the Partnership representing 39.03%
of the  outstanding  units.  Subsequent to October 31, 1999, an affiliate of the
General Partners  acquired an additional  7,109 units, or 16.80%,  pursuant to a
tender offer.  It is possible that AIMCO or its affiliates will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO.  Consequently,  AIMCO is in a position to influence all voting  decisions
with respect to the  Registrant.  Under the Partnership  Agreement,  unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters.  When voting on matters,  AIMCO would in all likelihood vote
the Units it acquired in a manner  favorable  to the  interest of the  Corporate
General Partner because of their affiliation with the Corporate General Partner.

Subsequent Event

On January 3, 2000, the  Partnership  elected to change its fiscal year end from
October 31 to December 31, effective for the period ending December 31, 1999.

<PAGE>

Year 2000 Compliance

General Description

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

Computer Hardware, Software and Operating Equipment

In 1999,  the Managing  Agent  completed  all phases of its Year 2000 program by
completing  the  replacement  and repair of any  hardware or software  system or
operating  equipment that was not yet Year 2000 compliant.  The Managing Agent's
hardware  and software  systems and its  operating  equipment  are now Year 2000
compliant. As of February 7, 2000, no material failure or erroneous results have
occurred in the Managing Agent's computer applications related to the failure to
reference the Year 2000.

Third Parties

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

Costs

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

Risks Associated with the Year 2000

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

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

Contingency Plans Associated with the Year 2000

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

<PAGE>


Item 7.     Financial Statements

SHELTER PROPERTIES VI

LIST OF FINANCIAL STATEMENTS

      Report of Ernst & Young LLP, Independent Auditors

      Balance Sheet - October 31, 1999

      Statements of Operations - Years ended October 31, 1999 and 1998

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

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

      Notes to Financial Statements


<PAGE>


                 Report of Ernst & Young LLP, Independent Auditors

The Partners
Shelter Properties VI

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

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

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

As discussed in Note I to the financial statements,  the Partnership changed its
method of  accounting  to  capitalize  the cost of exterior  painting  and major
landscaping effective November 1, 1998.

                                                           /s/ ERNST & YOUNG LLP


Greenville, South Carolina
February 7, 2000


<PAGE>

                               SHELTER PROPERTIES VI

                                   BALANCE SHEET
                          (in thousands, except unit data)

                                  October 31, 1999



Assets

   Cash and cash equivalents                                             $ 2,813
   Receivables and deposits                                                  751
   Restricted escrows                                                        756
   Other assets                                                              484
   Investment properties (Notes C and F):
      Land                                                    $ 4,950
      Buildings and related personal property                   50,208
                                                                ------
                                                                          55,158

      Less accumulated depreciation                            (28,903)   26,255
                                                                ------    ------
                                                                         $31,059

Liabilities and Partners' (Deficit) Capital

Liabilities
   Accounts payable                                                      $   219
   Tenant security deposit liabilities                                       214
   Accrued property taxes                                                    766
   Other liabilities                                                         468
   Mortgage notes payable (Note C)                                        25,433

Partners' (Deficit) Capital
   General partners                                            $ (305)
   Limited partners (42,324 units issued and
      outstanding)                                               4,264     3,959
                                                             -   -----  -  -----
                                                                        $ 31,059

                   See Accompanying Notes to Financial Statements


<PAGE>


                               SHELTER PROPERTIES VI

                              STATEMENTS OF OPERATIONS
                          (in thousands, except unit data)


                                                         Years Ended October 31,
                                                            1999         1998
                                                            ----         ----
Revenues:
   Rental income                                           $ 9,972     $ 9,512
   Other income                                                757         704
                                                            ------      ------
      Total revenues                                        10,729      10,216
                                                            ------      ------

Expenses:
   Operating                                                 4,295       4,219
   General and administrative                                  399         325
   Depreciation                                              2,165       1,987
   Interest                                                  2,331       2,410
   Property taxes                                              893         953
                                                            ------      ------
      Total expenses                                        10,083       9,894
                                                            ------      ------

Income before cumulative effect of a change in
   accounting principle                                        646         322
Cumulative effect on prior years of a change in
   accounting for the cost of exterior painting and
   major landscaping (Note I)                                  253          --
                                                            ------      ------

Net income (Note D)                                        $   899     $   322
                                                            ======      ======

Net income allocated to general partners (1%)              $     9     $     3

Net income allocated to limited partners (99%)                 890         319
                                                            ------      ------

                                                           $   899     $   322
                                                            ======      ======

Net income per limited partnership unit:
   Income before cumulative effect of a change in
      accounting principle                                 $ 15.11     $  7.54
   Cumulative effect on prior years of a change in
      accounting for the cost of exterior painting and
      major landscaping                                       5.92          --
                                                            ------      ------

Net income                                                 $ 21.03     $  7.54
                                                            ======      ======

Distribution per limited partnership unit                  $ 49.45     $    --
                                                            ======      ======

Proforma   amounts   assuming   the  new   accounting   principle   was  applied
retroactively:

      Net income                                           $   646     $   350
                                                            ======      ======
      Net income per limited partnership unit              $ 15.11     $  8.19
                                                            ======      ======


                   See Accompanying Notes to Financial Statements


<PAGE>


                               SHELTER PROPERTIES VI

                STATEMENTS OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                          (in thousands, except unit data)



                                      Limited
                                    Partnership    General    Limited
                                       Units       Partners   Partners    Total

Original capital contributions        42,324      $     2     $42,324   $42,326
                                      ======       ======      ======    ======

Partners' (deficit) capital
   at October 31, 1997                42,324      $  (310)    $ 5,148   $ 4,838

Net income for the year ended
   October 31, 1998                       --            3         319       322
                                      ------       ------      ------    ------

Partners' (deficit) capital at
   October 31, 1998                   42,324         (307)      5,467     5,160

Distribution to partners                               (7)     (2,093)   (2,100)

Net income for the year
   ended October 31, 1999                 --            9         890       899
                                      ------       ------      ------    ------

Partners' (deficit) capital
   at October 31, 1999                42,324      $  (305)    $ 4,264   $ 3,959
                                      ======       ======      ======    ======


                   See Accompanying Notes to Financial Statements

<PAGE>


                               SHELTER PROPERTIES VI

                              STATEMENTS OF CASH FLOWS
                                   (in thousands)



                                                          Year Ended October 31,
                                                             1999        1998

Cash flows from operating activities:
  Net income                                               $   899      $   322
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                              2,165        1,987
   Amortization of discounts and loan costs                    296          311
   Cumulative effect on prior years of change in
      accounting principle                                    (253)          --
   Change in accounts:
      Receivables and deposits                                 163         (198)
      Other assets                                             (73)          60
      Accounts payable                                         (64)        (233)
      Tenant security deposit liabilities                        5           16
      Accrued taxes                                            (11)         161
      Other liabilities                                        207           32
                                                            ------       ------

          Net cash provided by operating activities          3,334        2,458
                                                            ------       ------

Cash flows from investing activities:
  Property improvements and replacements                    (1,482)      (1,214)
  Net withdrawals from (deposits to) restricted escrows        870          (68)
  Net insurance proceeds from casualty loss                     --          159
                                                            ------       ------

          Net cash used in investing activities               (612)      (1,123)
                                                            ------       ------

Cash flows from financing activities:
  Payments on mortgage notes payable                          (920)        (856)
  Distribution to partners                                  (2,100)          --
                                                            ------       ------

          Net cash used in financing activities             (3,020)        (856)
                                                            ------       ------

Net (decrease) increase in cash and cash equivalents          (298)         479

Cash and cash equivalents at beginning of the year           3,111        2,632
                                                            ------       ------

Cash and cash equivalents at end of year                   $ 2,813      $ 3,111
                                                            ======       ======

Supplemental disclosure of cash flow information:
  Cash paid for interest                                   $ 2,036      $ 2,100
                                                            ======       ======


                   See Accompanying Notes to Financial Statements


<PAGE>

                               SHELTER PROPERTIES VI

                            Note to Financial Statements

                                  October 31, 1999


Note A - Organization and Significant Accounting Policies

Organization:  Shelter  Properties VI (the  "Partnership" or  "Registrant")  was
organized as a limited partnership under the laws of the State of South Carolina
on August 3,  1983.  The  general  partner  responsible  for  management  of the
Partnership's  business  is  Shelter  Realty VI  Corporation,  a South  Carolina
corporation (the "Corporate General Partner"). The only other general partner of
the  Partnership  was N. Barton  Tuck,  Jr. Mr. Tuck was not an affiliate of the
Corporate  General Partner and was effectively  prohibited by the  Partnership's
partnership  agreement (the "Partnership  Agreement") from  participating in the
management of the Partnership. In June 1999, Mr. Tuck's general partner interest
was purchased by AIMCO  Properties,  L.P., an affiliate of the Corporate General
Partner.  The Corporate General Partner is a subsidiary of Apartment  Investment
and  Management  Company  ("AIMCO")  (see "Note B - Transfer of  Control").  The
directors and officers of the Corporate  General Partner also serve as executive
officers of AIMCO. The Partnership Agreement provides that the Partnership is to
terminate  on  December  31,  2023  unless  terminated  prior to such date.  The
Partnership commenced operations on June 29, 1984, and completed its acquisition
of  apartment  properties  on March  28,  1985.  The  Partnership  operates  six
apartment properties located in the South, Midwest and West.

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

Allocation of Cash  Distributions:  Cash  distributions  by the  Partnership are
allocated between general and limited partners in accordance with the provisions
of the Partnership  Agreement.  The Partnership Agreement provides that net cash
from operations  means revenue received less operating  expenses paid,  adjusted
for certain  specified items which primarily  include mortgage payments on debt,
property improvements and replacements not previously reserved,  and the effects
of  other  adjustments  to  reserves.   In  the  following  notes  to  financial
statements,  whenever "net cash from (used by)  operations"  is used, it has the
aforementioned meaning. The following is a reconciliation of the subtotal in the
accompanying  statements of cash flows captioned "net cash provided by operating
activities"  to "net  cash  from  operations",  as  defined  in the  Partnership
Agreement.  However,  "net cash from  operations"  should not be  considered  an
alternative  to  net  income  as an  indicator  of the  Partnership's  operating
performance or to cash flows as a measure of liquidity.

                                                     Years Ended October 31,
                                                       1999           1998
                                                       ----           ----
                                                          (in thousands)

Net cash provided by operating activities            $ 3,334         $ 2,458
   Payments on mortgage notes payable                   (920)           (856)
   Property improvements and replacements             (1,482)         (1,214)
   Changes in reserves for net operating
      liabilities                                       (227)            162
   Changes in restricted escrows, net                    870             (68)
   Additional operating reserves                      (1,147)           (482)
                                                      ------            ----
      Net cash provided by operations                 $ 428            $ 0
                                                       ====             ==

The Corporate General Partner reserved approximately  $1,147,000 and $482,000 on
October  31,  1999 and 1998,  respectively,  to fund  capital  improvements  and
repairs at its properties.

Distributions made from reserves no longer considered necessary by the Corporate
General  Partner are  considered to be additional  net cash from  operations for
allocation  purposes.  During the year ended October 31, 1999,  the  Partnership
made a distribution of  approximately  $2,100,000,  consisting of  approximately
$688,000 (approximately $681,000 or $16.09 per Unit, to the limited partners) of
cash from  operations and  approximately  $1,412,000 (or $33.36 per Unit) to the
limited  partners of cash from  previously  undistributed  surplus  funds from a
fiscal year 1995 property sale. The Partnership declared and paid a distribution
of approximately  $428,000  (approximately  $424,000,  or $10.02 per unit to the
limited  partners) of cash from  operations  subsequent to October 31, 1999. The
Partnership did not make any distributions for the fiscal year ended October 31,
1998.

The Partnership  Agreement  provides that 99% of  distributions of net cash from
operations  are  allocated to the limited  partners  until they receive net cash
from  operations  for such  fiscal  year equal to 7% of their  adjusted  capital
values (as  defined in the  Partnership  Agreement),  at which point the general
partners will be allocated all net cash from operations until they have received
distributions equal to 10% of the aggregate net cash from operations distributed
to partners  for such fiscal  year.  Thereafter,  the general  partners  will be
allocated 10% of any  distributions  of remaining net cash from  operations  for
such fiscal year.

All  distributions of distributable  net proceeds (as defined in the Partnership
Agreement) from property  dispositions and refinancings will be allocated to the
limited  partners  until each limited  partner has received an amount equal to a
cumulative 7% per annum of the average of the limited partners' adjusted capital
value,   less  any  prior   distributions   of  net  cash  from  operations  and
distributable net proceeds, and has also received an amount equal to the limited
partners' adjusted capital value. Thereafter, the general partners receive 1% of
the selling price of properties sold where they acted as a broker,  and then the
limited  partners  will  be  allocated  85% of any  remaining  distributions  of
distributable net proceeds and the general partners will receive 15%.

Distributions  may be  restricted  by the  requirement  to deposit net operating
income (as  defined in the  mortgage  note) into the Reserve  Account  until the
Reserve  Account is funded in an amount equal to a minimum of $400 and a maximum
of  $1,000  per  apartment  unit for  each  respective  property  for a total of
approximately  $583,000 to $1,457,000.  As of October 31, 1999, the  Partnership
has deposits of approximately $755,000 in its Reserve Account.

Undistributed  Net Proceeds from  Disposition:  Undistributed  net proceeds from
dispositions in prior years totaled  $1,412,000 at October 31, 1998. This amount
was fully distributed during the first fiscal quarter of 1999.

Allocation  of  Profits,  Gains,  and Losses:  Profits,  gains and losses of the
Partnership  are allocated  between  general and limited  partners in accordance
with the provisions of the Partnership Agreement.

For any fiscal  year,  to the extent  that  profits,  not  including  gains from
property dispositions,  do not exceed distributions of net cash from operations,
such  profits are  allocated  in the same manner as such  distributions.  In any
fiscal year in which profits,  not including  gains from property  dispositions,
exceed  distributions of net cash from  operations,  such excess is treated on a
cumulative  basis  as if it  constituted  an  equivalent  of  distributable  net
proceeds and is allocated together with, and in the same manner as, that portion
of gain described in the second sentence of the following paragraph.

Any gain from property  dispositions  attributable to the excess, if any, of the
indebtedness relating to a property immediately prior to the disposition of such
property  over  the  Partnership's  adjusted  basis  in the  property  shall  be
allocated to each partner  having a negative  capital  account  balance,  to the
extent of such negative  balance.  The balance of any gain shall be treated on a
cumulative basis as if it constituted an equivalent  amount of distributable net
proceeds  and shall be  allocated  to the  general  partners  to the extent that
general  partners would have received  distributable  net proceeds in connection
therewith; the balance shall be allocated to the limited partners.  However, the
interest  of the general  partners  will be equal to at least 1% of each gain at
all times during the existence of the Partnership.

All  losses,  including  losses  attributable  to  property  dispositions,   are
allocated  99%  to  the  limited  partners  and  1%  to  the  general  partners.
Accordingly,  net income as shown in the statements of operations and changes in
partners'  capital for 1999 and 1998 were allocated 99% to the limited  partners
and 1% to the general partners. Net income per limited partnership unit for each
such year was computed as 99% of net income divided by 42,324 units outstanding.

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

Restricted  Escrows:  In relation to the  mortgages at all six  properties,  the
mortgage  lenders have  required a  "Replacement  Reserve"  for certain  capital
improvements.  These  funds were  established  to cover  necessary  repairs  and
replacements  of existing  improvements,  debt service,  out of pocket  expenses
incurred for ordinary and necessary  administrative  tasks,  and payment of real
property taxes and insurance  premiums.  The  Partnership is required to deposit
net operating income (as defined in the mortgage note) from each property to the
respective  reserve account until the accounts equal the minimum balance of $400
and a maximum balance of $1,000 per apartment unit for each respective property.
The minimum  balance of $400 per  apartment  unit has currently  been  attained;
however, the maximum balance of $1,000 per apartment unit has not been attained.
At October 31, 1999, the balance was approximately $756,000.

Other  Reserves:  The Corporate  General Partner may also designate a portion of
cash  generated from  operations as other reserves in determining  net cash from
operations.  Per  the  Partnership  Agreement,  the  Corporate  General  Partner
designated as other reserves an amount equal to the net  liabilities  related to
the operations of apartment  properties  during the current fiscal year that are
expected to require the use of cash during the next fiscal year.  The changes in
other reserves  during 1999 and 1998 were a decrease of  approximately  $227,000
and an increase of  approximately  $162,000,  respectively,  which  amounts were
determined by considering  changes in the balances of receivables  and deposits,
other assets,  accounts payable,  tenant security deposit  liabilities,  accrued
taxes and other liabilities. At this time, the Corporate General Partner expects
to  continue  to  adjust  other   reserves  based  on  the  net  change  in  the
aforementioned account balances.

Investment Properties:  Investment properties consist of six apartment complexes
and are  stated  at cost.  Acquisition  fees are  capitalized  as a cost of real
estate.  In accordance with Financial  Accounting  Standards Board Statement No.
121,  "Accounting  for the  Impairment of Long-Lived  Assets and for  Long-Lived
Assets  to Be  Disposed  Of",  the  Partnership  records  impairment  losses  on
long-lived assets used in operations when events and circumstances indicate that
the assets might be impaired  and the  undiscounted  cash flows  estimated to be
generated by those assets are less than the  carrying  amounts of those  assets.
Costs of apartment  properties  that have been  permanently  impaired  have been
written down to appraised  value.  The Corporate  General  Partner relies on the
annual appraisals performed by the outside appraisers for the estimated value of
the  Partnership's   properties.   There  are  three  recognized  approaches  or
techniques  available to the appraiser.  When  applicable,  these approaches are
used to process the data  considered  significant  to each to arrive at separate
value  indications.  In all instances the experience of the  appraiser,  coupled
with his objective  judgment,  plays a major role in arriving at the conclusions
of the indicated  value for which the final estimate of value is made. The three
approaches commonly known are the cost approach,  the sales comparison approach,
and the  income  approach.  The cost  approach  is often  not  considered  to be
reliable  due  to  the  lack  of  land  sales  and  the  significant  amount  of
depreciation  and,  therefore,  is often  not  presented.  Upon  receipt  of the
appraisals,  any property which is stated on the books of the Partnership  above
the  estimated  value given in the  appraisal,  is written down to the estimated
value given by the appraiser.  The appraiser  assumes a stabilized  occupancy at
the time of the appraisal and, therefore,  any impairment of value is considered
to be permanent by the Corporate General Partner.  No adjustments for impairment
of value were recorded in the years ended October 31, 1999 and 1998.

Depreciation:  Depreciation  is  provided by the  straight-line  method over the
estimated lives of the apartment  properties and related personal property.  For
Federal income tax purposes,  the  accelerated  cost recovery method is used (1)
for  real  property  over 15  years  for the  initial  cost  of  Carriage  House
Apartments,  18 years for other  additions  acquired  before May 9, 1985, and 19
years for additions  after May 8, 1985,  and before January 1, 1987, and (2) for
personal  property  over 5 years for  additions  prior to January 1, 1987.  As a
result of the Tax Reform Act of 1986, for additions after December 31, 1986, the
modified  accelerated  cost recovery method is used for depreciation of (1) real
property  additions over 27.5 years and (2) personal  property  additions over 7
years.

Effective November 1, 1998, the Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping (see "Note I").

Loan Costs: Loan costs of approximately $943,000, less accumulated  amortization
of approximately  $651,000, are included in other assets and are being amortized
on a straight-line basis over the life of the loans.

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

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

Segment Reporting: Statement of Financial Standards ("SFAS") No. 131, Disclosure
about  Segments of an  Enterprise  and  Related  Information  ("Statement  131")
established  standards  for the way  that  public  business  enterprises  report
information about operating segments in annual financial statements and requires
that those enterprises  report selected  information about operating segments in
interim financial reports. It also establishes standards for related disclosures
about products and services, geographic areas, and major customers. See "Note G"
for required disclosure.

Advertising:  The  Partnership  expenses the costs of  advertising  as incurred.
Advertising expense,  included in operating expense, was approximately  $157,000
and $134,000 for the years ended October 31, 1999 and 1998, respectively.

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

Note B - Transfer of Control

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

Note C - Mortgage Notes Payable

The principle terms of mortgage notes payable are as follows:

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

Rocky Creek
 1st mortgage        $ 1,991       $ 19        7.60%    11/15/02      $ 1,737
 2nd mortgage             74         (a)       7.60%    11/15/02           74

Carriage House
 1st mortgage          1,836         17       7.60%    11/15/02        1,601
 2nd mortgage             68         (a)      7.60%    11/15/02           68

Nottingham Square
 1st mortgage          7,188         68       7.60%    11/15/02        6,268
 2nd mortgage            268          2       7.60%    11/15/02          268

Foxfire/Barcelona
 1st mortgage          5,195         49       7.60%    11/15/02        4,531
 2nd mortgage            193          1       7.60%    11/15/02          193

River Reach
 1st mortgage          6,754         64       7.60%    11/15/02        5,890
 2nd mortgage            252          2       7.60%    11/15/02          252

Village Garden
 1st mortgage          2,338         22       7.60%    11/15/02        2,039
 2nd mortgage             87          1       7.60%    11/15/02           87
                      ------       ----                               ------
                      26,244      $ 245                              $23,008
                        ====                                          ======

Less unamortized discounts         (811)
                                -------

Total                           $25,433
                                 ======

(a)   Monthly payment including interest is less than $1,000.

The Partnership  exercised interest rate buy-down options for the six properties
when the debt was  refinanced  in 1992,  thereby,  reducing the stated rate from
8.76% to 7.6%. The fee for the interest rate reduction amounted to approximately
$2,433,000 and is being amortized as a loan discount on the interest method over
the life of the loans. The unamortized  discount fee is reflected as a reduction
of the mortgage  notes payable and  increases the effective  rate of the debt to
8.76%.

The mortgage  notes  payable are  non-recourse  and are secured by pledge of the
respective  apartment  properties  and by pledge of revenues from the respective
apartment properties. The notes could not be prepaid prior to November 15, 1997,
thereafter,  prepayment  penalties  are  required if repaid  prior to  maturity.
Further, the properties may not be sold subject to existing indebtedness.

The estimated fair values of the  Partnership's  aggregate debt is approximately
$26,244,000.  This  estimate is not  necessarily  indicative  of the amounts the
Partnership may pay in actual market transactions.

Scheduled principal payments of mortgage notes payable subsequent to October 31,
1999 are as follows (in thousands):

                                     2000      $   998
                                     2001        1,076
                                     2002        1,161
                                     2003       23,009
                                                ------
                                               $26,244

Note D - Income Taxes

The Partnership has received a ruling from the Internal  Revenue Service that it
will  be  classified  as  a  partnership   for  Federal   income  tax  purposes.
Accordingly,  no provision for income taxes is made in the financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

The  following is a  reconciliation  of reported net income and Federal  taxable
income (loss) (in thousands, except per unit data):

                                             1999         1998

Net income as reported                      $ 899         $ 322
Add (deduct):
     Amortization of present value
       discounts                                9            (2)
     Depreciation differences                (264)         (333)
     Change in prepaid rental income           69           (44)
     Cumulative effect on prior years
       of a change in accounting
       principle                             (253)           --
     Other                                      9            20
                                             ----          ----

Federal taxable income (loss)               $ 469         $ (37)
                                             ====          ====

Federal taxable income (loss) per
     limited partnership unit              $ 10.96       $ (.87)
                                            ======        =====

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

            Net assets as reported                   $  3,959
            Land and buildings                          3,379
            Accumulated depreciation                  (15,151)
            Syndication                                 5,286
            Other                                         160
                                                      -------

            Net liabilities - tax basis              $ (2,367)
                                                      =======

Note E - Transactions with Affiliated Parties

The  Partnership  has no employees  and is dependent  on the  Corporate  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
partnership activities.  The Partnership Agreement provides for certain payments
to affiliates for services and as reimbursement of certain expenses  incurred by
affiliates on behalf of the  Partnership.  The following  transactions  with the
Corporate  General  Partner and/or its affiliates were incurred during the years
ended October 31, 1999 and 1998:

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

   Property management fees (included in
     operating expense)                                      $ 543      $ 512

   Reimbursement for services of affiliates
     (included in operating, general and
     administrative expenses, and investment
     properties)                                               204        240

During the years ended  October 31, 1999 and 1998,  affiliates  of the Corporate
General  Partner were  entitled to receive 5% of the gross  receipts from all of
Registrant's  properties  as  compensation  for  providing  property  management
services.  The Registrant  paid to such  affiliates  approximately  $543,000 and
$512,000 for the years ended October 31, 1999 and 1998, respectively.

Affiliates  of  the  Corporate   General  Partner  received   reimbursements  of
accountable  administrative  expense  amounting  to  approximately  $204,000 and
$240,000 for the years ended October 31, 1999 and 1998, respectively.

Several tender offers were made by various parties,  including affiliates of the
General Partners,  during the fiscal years ended October 31, 1999 and 1998. As a
result of these tender offers, at October 31, 1999, AIMCO and its affiliates own
16,519 units of limited partnership units in the Partnership representing 39.03%
of the  outstanding  units.  Subsequent to October 31, 1999, an affiliate of the
General Partners  acquired an additional  7,109 units, or 16.80%,  pursuant to a
tender offer.  It is possible that AIMCO or its affiliates will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO.  Consequently,  AIMCO is in a position to influence all voting  decisions
with respect to the  Registrant.  Under the Partnership  Agreement,  unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters.  When voting on matters,  AIMCO would in all likelihood vote
the Units it acquired in a manner  favorable  to the  interest of the  Corporate
General Partner because of their affiliation with the Corporate General Partner.

Note F - Real Estate and Accumulated Depreciation

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

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

Rocky Creek                   $ 2,065        $ 168     $ 3,821         $ 641
Carriage House                  1,904           166      3,038            818
Nottingham Square               7,456         1,133      9,980          4,094
Foxfire/Barcelona               5,388         1,191      9,998          1,109
River Reach                     7,006         1,872     10,854          1,843
Village Garden                  2,425           420      3,050            962
                               -----         ------     ------          -----

Totals                        $26,244       $ 4,950    $40,741        $ 9,467
                               ======        ======     ======         ======


                               Gross Amount At Which Carried

                                    At October 31, 1999
                                    -------------------
                                       (in thousands)



                                 Buildings
                                    And
<TABLE>
<CAPTION>

                                  Related                      Date of            Depreciable
                                  Personal        Accumulated Construc-   Date      Life-
       Description         Land   Property Total  Depreciation  tion    Acquired    Years
<S>                       <C>      <C>      <C>       <C>       <C>      <C>        <C>

Rocky Creek Apartments
Augusta, Georgia          $   168 $ 4,462  $ 4,630   $ 2,392     1979    06/29/84    5-35

Carriage House Apartments
Gastonia, North Carolina      166   3,856    4,022     2,379   1970-1971 06/29/84    5-27

Nottingham Square
Apartments
Des Moines, Iowa            1,133  14,074   15,207     8,008     1972    08/31/84    5-29

Foxfire/Barcelona
Apartments
Durham, North Carolina      1,191  11,107   12,298     6,418     1973    03/28/85    5-29

                                                                 1975    09/30/84    5-31
River Reach Apartments
Jacksonville, Florida       1,872  12,697   14,569     7,598     1971    01/30/85    5-27

Village Garden Apartments
Fort Collins, Colorado        420   4,012    4,442     2,108     1974    03/01/85    5-30
                           ------  ------   ------    ------

         Totals           $ 4,950 $50,208  $55,158   $28,903
                           ======  ======   ======    ======
</TABLE>


Reconciliation  of "Investment  Properties  and  Accumulated  Depreciation"  (in
thousands):

                                                   Years Ended October 31,
                                                     1999          1998
                                                     ----          ----
         Investment Properties

         Balance at beginning of year              $53,423       $52,209
             Property improvements                   1,482         1,214
             Cumulative effect on prior
               years of change in accounting
               principle                               253            --
                                                    ------        ------
         Balance at end of year                    $55,158       $53,423
                                                    ======        ======

         Accumulated Depreciation

         Balance at beginning of year              $26,738       $24,751
             Additions charged to expense            2,088         1,987
             Cumulative effect on prior
               years of change in accounting
               principle                                77            --
                                                    ------        ------
         Balance at end of year                    $28,903       $26,738
                                                    ======        ======

The aggregate cost of the real estate for Federal income tax purposes at October
31, 1999 and 1998 is approximately  $58,536,000 and  approximately  $57,054,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at October  31, 1999 and 1998 is  approximately  $44,054,000  and  approximately
$41,625,000, respectively.

Note G - Segment Reporting

Description  of the types of products  and  services  from which the  reportable
segment  derives its  revenues:  The  Partnership  has one  reportable  segment:
residential  properties  consisting of six apartment  complexes  located in five
states  throughout  the United  States as follows:  one each in  Georgia,  Iowa,
Florida,  and  Colorado,  and  two in  North  Carolina.  The  Partnership  rents
apartment units to tenants for terms that are typically twelve months or less.

Measurement  of segment profit or loss: The  Partnership  evaluates  performance
based on net income.  The accounting  policies of the reportable segment are the
same as those described in the summary of significant accounting policies.

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

Segment  information  for the years ended October 31, 1999 and 1998, is shown in
the  tables  below (in  thousands).  The  "Other"  column  includes  partnership
administration  related  items and  income  and  expense  not  allocated  to the
reportable segment.

                 1999                   Residential      Other       Totals
                 ----                   -----------      -----       ------

Rental income                             $ 9,972         $ --      $ 9,972
Other income                                  704            53         757
Interest expense                            2,331            --       2,331
Depreciation                                2,165            --       2,165
General and administrative expense             --           399         399
Cumulative effect on prior years
  of change in accounting
  principle                                   253            --         253
Segment profit (loss)                       1,245          (346)        899
Total assets                               30,054         1,005      31,059
Capital expenditures for investment
  properties                                1,482            --       1,482


                 1998                   Residential      Other       Totals
                 ----                   -----------      -----       ------

Rental income                             $ 9,512         $ --      $ 9,512
Other income                                  574           130         704
Interest expense                            2,410            --       2,410
Depreciation                                1,987            --       1,987
General and administrative expense             --           325         325
Segment profit (loss)                         517          (195)        322
Total assets                               29,421         3,419      32,840
Capital expenditures for investment
  properties                               1,214             --       1,214


Note H - Legal Proceedings

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

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

Note I - Change in Accounting Principle

Effective November 1, 1998, the Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping.  The Partnership
believes that this accounting principle change is preferable because it provides
a better matching of expenses with the related benefit of the  expenditures  and
it is  consistent  with  industry  practice  and the  policies of the  Corporate
General Partner.  The effect of the change in 1999 was to increase income before
the change by approximately  $186,000 ($4.35 per limited  partnership unit). The
cumulative effect adjustment of approximately $253,000 is the result of applying
the aforementioned change in accounting principle  retroactively and is included
in income for 1999.  The pro forma amounts shown on the statements of operations
have been adjusted for the effect of retroactive application of this change. The
accounting  principle  change  will  not  have an  affect  on cash  flow,  funds
available for distribution or fees payable to the Corporate  General Partner and
affiliates.

The  effect of the new  method  for each  quarter  of 1999 on net income and net
income per limited partnership unit before the cumulative effect is as follows:

                                  Increase/(Decrease) in      Per limited
                                        Net income          partnership unit
                                        ----------          ----------------

         First Quarter                   $(19,000)              $ (.44)
         Second Quarter                   (10,000)                (.23)
         Third Quarter                    170,000                 3.98
         Fourth Quarter                    45,000                 1.04


Note J - Subsequent Event

On January 3, 2000, the  Partnership  elected to change its fiscal year end from
October 31 to December 31, effective for the period ending December 31, 1999.


<PAGE>


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

None.


<PAGE>


                                      PART III

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

The Registrant has no officers or directors.  The corporate  general  partner is
Shelter Realty VI Corporation ("Corporate General Partner").  The names and ages
of, as well as the position and offices held by, the present executive  officers
and director of the Corporate General Partner are set forth below.  There are no
family relationships between or among any officers or directors.

            Name                  Age    Position

            Patrick J. Foye       42     Executive Vice President and Director

            Martha L. Long        40     Senior Vice President and Controller

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

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

Item 10.    Executive Compensation

None of the directors and officers of the Corporate General Partner received any
remuneration from the Registrant.

Item 11.    Security Ownership of Certain Beneficial Owners and Management

Except as noted below, no person or entity was known by the Registrant to be the
beneficial  owner  of  more  than 5% of the  Limited  Partnership  Units  of the
Registrant as of October 31, 1999.

Entity                                  Number of Units      Percentage

Cooper River Properties, LLC
 (an affiliate of AIMCO)                      3,364             7.948%
Insignia Properties LP
 (an affiliate of AIMCO)                     11,547            27.282%
AIMCO Properties, L.P.
 (an affiliate of AIMCO)                      1,608             3.799%

Cooper River Properties LLC and Insignia  Properties LP are directly  ultimately
owned by AIMCO.  Their business address is 55 Beattie Place,  Greenville,  South
Carolina 29602.

AIMCO Properties,  L.P. is indirectly  ultimately owned by AIMCO. Their business
address is 2000 South Colorado Boulevard, Denver, Colorado 80222.

No director or officer of the  Corporate  General  Partner  owns any units.  The
Corporate  General  Partner  owns 100  units  as  required  by the  terms of the
Partnership  Agreement.  AIMCO Properties,  L.P., the other general partner, has
acquired 1,608 units during the current fiscal year.

Item 12.    Certain Relationships and Related Transactions

The  Partnership  has no employees  and is dependent  on the  Corporate  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
partnership activities.  The Partnership Agreement provides for certain payments
to affiliates for services and as reimbursement of certain expenses  incurred by
affiliates on behalf of the  Partnership.  The following  transactions  with the
Corporate  General  Partner and/or its affiliates were incurred during the years
ended October 31, 1999 and 1998:

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

   Property management fees (included in
     operating expense)                                      $ 543      $ 512

   Reimbursement for services of affiliates
     (included in operating, general and
     administrative expenses properties)                       204        240

During the years ended  October 31, 1999 and 1998,  affiliates  of the Corporate
General  Partner were  entitled to receive 5% of the gross  receipts from all of
Registrant's  properties  as  compensation  for  providing  property  management
services.  The Registrant  paid to such  affiliates  approximately  $543,000 and
$512,000 for the years ended October 31, 1999 and 1998, respectively.

Affiliates  of  the  Corporate   General  Partner  received   reimbursements  of
accountable  administrative  expense  amounting  to  approximately  $204,000 and
$240,000 for the years ended October 31, 1999 and 1998, respectively.

Several tender offers were made by various parties,  including affiliates of the
General Partners,  during the fiscal years ended October 31, 1999 and 1998. As a
result of these tender offers, at October 31, 1999, AIMCO and its affiliates own
16,519 units of limited partnership units in the Partnership representing 39.03%
of the  outstanding  units.  Subsequent to October 31, 1999, an affiliate of the
General Partners  acquired an additional  7,109 units, or 16.80%,  pursuant to a
tender offer.  It is possible that AIMCO or its affiliates will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO.  Consequently,  AIMCO is in a position to influence all voting  decisions
with respect to the  Registrant.  Under the Partnership  Agreement,  unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters.  When voting on matters,  AIMCO would in all likelihood vote
the Units it acquired in a manner  favorable  to the  interest of the  Corporate
General Partner because of their affiliation with the Corporate General Partner.


<PAGE>

                                      PART IV

Item 13.    Exhibits and Reports on Form 8-K

            (a)  Exhibits:

                 Exhibit 18, Independent Accountants'  Preferability Letter, is
                 filed as an exhibit to this report.

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

            (b)  Reports on Form 8-K filed during the fiscal  fourth  quarter
                 of 1999:

                 None.

<PAGE>


                                     SIGNATURES

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

                                    SHELTER PROPERTIES VI

                                    By:   Shelter Realty VI Corporation
                                          Corporate General Partner

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

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

                                    Date:


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

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


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


<PAGE>


                               SHELTER PROPERTIES VI

                                   EXHIBIT INDEX

Exhibit Number    Description of Exhibit

3                 See Exhibit 4(a)

4    (a)  Amended and Restated  Certificate and Agreement of Limited Partnership
          (included as Exhibit A to the Prospectus of Registrant dated March 22,
          1984 contained in Amendment  No. 1 to  Registration  Statement No.
          2-86995, of Registrant filed March 21, 1984 (the "Prospectus") and
          incorporated  herein by reference.)

     (b)  Subscription  Agreement and Signature  Page (included as Exhibits 4(A)
          and 4 (B) 8 to the Prospectus and incorporated herein by reference).

10(i)     Contracts related to acquisition of properties.

     (a)  Purchase  Agreement  dated  March 19,  1984  between  ICA-Broad  Reach
          Limited  Partnership  and U.S.  Shelter  Corporation  to acquire River
          Village Apartments.*

     (b)  Purchase  Agreement dated March 8, 1984 between Rocky Creek Associates
          Limited  Partnership  and U.S.  Shelter  Corporation  to acquire Rocky
          Creek Apartments.*

     (c)  Purchase  Agreement  dated  January 16, 1984  between  Carriage  House
          Associates Limited Partnership and U.S. Shelter Corporation to acquire
          Carriage House Apartments.*

          *Filed as Exhibits 10(D) through 10(F), respectively, to Amendment No.
          1 of Registration  Statement No. 2-86995 of Registrant filed March 21,
          1984 and incorporated herein by reference.

     (d)  Purchase Agreement dated May 8, 1984 between Daniel Realty Corporation
          and U.S. Shelter Corporation to acquire Marble Hill Apartments. (Filed
          as Exhibit 10(G) to  Post-Effective  Amendment  No, 1 of  Registration
          Statement  No.   2-86995  of  Registrant   filed  June  25,  1984  and
          incorporated herein by reference.)

     (e)  Purchase  Agreement  dated  June  6,  1984  between  Charleston  Court
          Associates and U.S. Shelter  Corporation to acquire  Nottingham Square
          Apartments.  (Filed as Exhibit 10(H) to Post-Effective Amendment No, 2
          of  Registration  Statement No.  2-86995 of Registrant  filed July 18,
          1984 and incorporated herein by reference.)

     (f)  Purchase  Agreement  dated July 10, 1984 between  National  Properties
          Investors  II  and  U.S.   Shelter   Corporation  to  acquire  Foxfire
          Apartments.  (Filed as Exhibit 10(I) to Post-Effective Amendment No, 2
          of  Registration  Statement No.  2-86995 of Registrant  filed July 18,
          1984 and incorporated herein by reference.)


     (g)  Purchase  Agreement  dated  August 24, 1984 between  American  Century
          Corporation  and U.S.  Shelter  Corporation  to  acquire  River  Reach
          Apartments.  (Filed as Exhibit 10(I) to Post-Effective Amendment No, 2
          of  Registration  Statement No.  2-86995 of Registrant  filed July 18,
          1984 and incorporated herein by reference.)

     (h)  Purchase  Agreement  dated  January  7, 1985  between  Village  Garden
          Apartments  Fort  Collins  and U.S.  Shelter  Corporation  to  acquire
          Village Garden  Apartments.  (Filed as Exhibit a(5) to Form 10-QSB for
          the  Quarter   ended  January  31,  1985  filed  March  14,  1985  and
          incorporated herein by reference.

     (i)  Purchase Agreement dated January 18, 1985 between Barcelona  Investors
          and U.S. Shelter Corporation to acquire Barcelona  Apartments.  (Filed
          as Exhibit a(6) to Form 10-QSB for the Quarter  ended January 31, 1985
          filed March 14, 1985 and incorporated herein by reference.

     (ii) Form  of   Management   Agreement   with  U.S.   Shelter   Corporation
          subsequently  assigned to Shelter Management Group, L.P. (now known as
          Insignia  Management  Group,  L.P.).  (Filed with  Amendment  No. 1 of
          Registration  Statement No. 2-86995 of Registrant filed March 21, 1984
          and incorporation herein by reference).

    (iii) Contracts related to refinancing of debt:

     (a)  First Deeds of Trust and Security  Agreements  dated  October 28, 1992
          between  Shelter  Properties VI and Joseph Philip Forte  (Trustee) and
          First Commonwealth Realty Credit Corporation,  a Virginia Corporation,
          securing the following properties: Rocky Creek, Carriage House, Marble
          Hills Nottingham, Foxfire/Barcelona, River Reach and Village Garden.*

     (b)  Second Deeds of Trust and Security  Agreements  dated October 28, 1992
          between  Shelter  Properties VI and Joseph Philip Forte  (Trustee) and
          First Commonwealth Realty Credit Corporation,  a Virginia Corporation,
          securing the following properties: Rocky Creek, Carriage House, Marble
          Hills Nottingham, Foxfire/Barcelona, River Reach and Village Garden.*

     (c)  First  Assignments  of Leases and Rents dated October 28, 1992 between
          Shelter  Properties  VI and Joseph  Philip Forte  (Trustee)  and First
          Commonwealth  Realty  Credit  Corporation,   a  Virginia  Corporation,
          securing the following properties: Rocky Creek, Carriage House, Marble
          Hills, Nottingham, Foxfire/Barcelona, River Reach and Village Garden.

     (d)  Second  Assignment  of Leases and Rents dated October 28, 1992 between
          Shelter  Properties  VI and Joseph  Philip Forte  (Trustee)  and First
          Commonwealth  Realty  Credit  Corporation,   a  Virginia  Corporation,
          securing the following properties: Rocky Creek, Carriage House, Marble
          Hills, Nottingham, Foxfire/Barcelona, River Reach and Village Garden.*

     (e)  First  Deeds of Trust Notes dated  October  28, 1992  between  Shelter
          Properties  VI  and  First  Commonwealth  Realty  Credit  Corporation,
          relating to the following  properties:  Rocky Creek,  Carriage  House,
          Marble Hills, Nottingham,  Foxfire/Barcelona,  River Reach and Village
          Garden.*

     (f)  Second  Deeds of Trust Notes dated  October 28, 1992  between  Shelter
          Properties  VI  and  First  Commonwealth  Realty  Credit  Corporation,
          relating to the following  properties:  Rocky Creek,  Carriage  House,
          Marble Hills, Nottingham,  Foxfire/Barcelona,  River Reach and Village
          Garden.*

          *Filed as Exhibits 10 (iii) a through 10(iii) f, respectively, to Form
          10-KSB - Annual or  Transitional  Report  filed  January  29, 1993 and
          incorporated herein by reference.

     (iv) Contracts related to disposition of properties:

     (a)  Agreement  of Purchase  and Sale dated June 2, 1995,  between  Shelter
          Properties  VI and United  Dominion  Realty Trust,  Inc.,  relating to
          Marble Hills Apartments.

18        Independent  Accountants'  Preferability  Letter for  change in
          accounting principle.

27        Financial Data Schedule.

<PAGE>

                                                                      Exhibit 18


February 7, 2000


Mr. Patrick J. Foye
Executive Vice President
Shelter Realty VI Corporation

Corporate General Partner of Shelter Properties VI
55 Beattie Place
P.O. Box 1089
Greenville, South Carolina 29602

Dear Mr. Foye:

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

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


                              Very truly yours,
                              /s/Ernst & Young LLP