FORM 10-QSB--Quarterly or Transitional Report Under Section 13
                 or 15(d) of the Securities Exchange Act of 1934
                        Quarterly or Transitional Report



                      U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

                   For the quarterly period ended March 31, 2001


[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934


                For the transition period from _________to _________

                         Commission file number 0-10435


                            CENTURY PROPERTIES FUND XVI
         (Exact name of small business issuer as specified in its charter)



         California                                             94-2704651
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

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

                                 (864) 239-1000
                           (Issuer's telephone number)


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



                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                           CENTURY PROPERTIES FUND XVI
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
                          (in thousands, except unit data)

                                 March 31, 2001
<TABLE>
<CAPTION>


Assets
<S>                                                            <C>           <C>
   Cash and cash equivalents                                                 $  188
   Receivables and deposits                                                     103
   Restricted escrows                                                            40
   Other assets                                                                 180
   Investment properties:
      Land                                                   $ 1,409
      Buildings and related personal property                 15,434
                                                              16,843
      Less accumulated depreciation                           (9,141)         7,702
                                                                            $ 8,213
Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                          $   50
   Accrued property taxes                                                        74
   Tenant security deposit liabilities                                           45
   Other liabilities                                                            120
   Mortgage notes payable                                                     7,154

Partners' (Deficit) Capital
   General partners                                           $(3,850)
   Limited partners (130,000 units issued and
      outstanding)                                             4,620            770
                                                                            $ 8,213



            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>




b)

                           CENTURY PROPERTIES FUND XVI
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                          (in thousands, except unit data)

<TABLE>
<CAPTION>


                                                              Three Months Ended
                                                                   March 31,
                                                              2001           2000
Revenues:
<S>                                                           <C>             <C>
   Rental income                                              $  754          $ 733
   Other income                                                   44             33
      Total revenues                                             798            766

Expenses:
   Operating                                                     324            307
   General and administrative                                     76             47
   Depreciation                                                  170            149
   Interest                                                      149            150
   Property taxes                                                 72             52
      Total expenses                                             791            705

Net income                                                     $   7          $  61

Net income allocated to general partners (6.9%)                $  --          $   4
Net income allocated to limited partners (93.1%)                   7             57

                                                               $   7          $  61

Net income per limited partnership unit                        $0.05          $0.44

Distributions per limited partnership unit                     $0.54          $  --


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>


c)

                            CENTURY PROPERTIES FUND XVI
          CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (Unaudited)
                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                     Limited
                                   Partnership    General     Limited
                                      Units      Partners     Partners      Total

<S>                                  <C>          <C>         <C>          <C>
Original capital contributions       130,000      $    --     $65,000      $65,000

Partners' (deficit) capital
   at December 31, 2000              130,000      $(3,847)    $ 4,683      $   836

Distributions to partners                 --           (3)        (70)         (73)

Net income for the three months
   ended March 31, 2001                   --           --           7            7

Partners' (deficit) capital
   at March 31, 2001                 130,000      $(3,850)    $ 4,620      $   770



            See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>



d)

                           CENTURY PROPERTIES FUND XVI
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                                       March 31,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net income                                                      $ 7         $ 61
  Adjustments to reconcile net income to net cash provided
   by operating activities:
     Depreciation                                                   170         149
     Amortization of loan costs                                       8           8
     Change in accounts:
      Receivables and deposits                                      142         137
      Other assets                                                    5          (7)
      Accounts payable                                              (34)        (87)
      Accrued property taxes                                        (98)       (117)
      Tenant security deposit                                         4          --
      Other liabilities                                             (10)        (58)

        Net cash provided by operating activities                   194          86

Cash flows from investing activities:
  Property improvements and replacements                           (187)       (169)
  Net withdrawals from (deposits to) restricted escrows              15         (38)

        Net cash used in investing activities                      (172)       (207)

Cash flows from financing activities:
  Distributions to partners                                         (73)         --
  Payments on mortgage notes payable                                (23)        (22)

        Net cash used in financing activities                       (96)        (22)

Net decrease in cash and cash equivalents                           (74)       (143)

Cash and cash equivalents at beginning of period                    262         468

Cash and cash equivalents at end of period                       $ 188        $ 325

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 94        $ 143

At  December  31,  2000,  approximately  $93,000 of  property  improvements  and
replacements were included in accounts payable.



            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>





e)

                           CENTURY PROPERTIES FUND XVI
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note A - Basis of Presentation

The  accompanying   unaudited   consolidated  financial  statements  of  Century
Properties Fund XVI (the  "Partnership" or the "Registrant")  have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  The  Partnership's  general  partners  are  Fox  Capital
Management Corporation (the "Managing General Partner" or "FCMC") and Fox Realty
Investors ("FRI"). The Managing General Partner and the managing general partner
of  FRI  are  subsidiaries  of  Apartment   Investment  and  Management  Company
("AIMCO"), a publicly traded real estate investment trust. In the opinion of the
Managing  General  Partner,  all  adjustments  (consisting  of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results  for the three  month  period  ended  March 31,  2001 are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending  December 31, 2001. For further  information,  refer to the  consolidated
financial  statements and footnotes thereto included in the Partnership's Annual
Report on Form 10-KSB for the fiscal year ended December 31, 2000.

Segment Reporting

Statement of Financial  Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also establishes  standards for related disclosures about products and services,
geographic  areas,  and  major  customers.  As  defined  in SFAS  No.  131,  the
Partnership  has only one  reportable  segment.  The  Managing  General  Partner
believes that  segment-based  disclosures  will not result in a more  meaningful
presentation than the financial statements as currently presented.

Principles of Consolidation

The Partnership's  financial  statements include the accounts of the Partnership
and its wholly owned subsidiaries.

Note B - Transactions with Affiliated Parties

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The Partnership Agreement provides for (i) payments to
affiliates for services and (ii)  reimbursement of certain expenses  incurred by
affiliates  on  behalf  of the  Partnership.  The  following  transactions  with
affiliates  of the  Managing  General  Partner were paid during the three months
ended March 31, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 41      $ 38
 Reimbursement for services of affiliates (included in
   investment properties and general and administrative and
   operating expenses)                                              48        27

Affiliates of the Managing  General  Partner are entitled to receive 5% of gross
receipts  from  both  of the  Registrant's  properties  for  providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$41,000  and  $38,000  during the three  months  ended  March 31, 2001 and 2000,
respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $48,000 and
$27,000 for the three months ended March 31, 2001 and 2000, respectively.

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

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 75,773.69 limited partnership units
(the  "Units")  in the  Partnership  representing  approximately  58.29%  of the
outstanding  units at March 31,  2001.  A number of these  Units  were  acquired
pursuant to tender  offers made by AIMCO,  its  affiliates  or affiliates of the
Managing  General  Partner.  It is possible  that AIMCO or its  affiliates  will
acquire additional limited partnership  interests in the Partnership for cash or
in exchange  for units in the  operating  partnership  of AIMCO  either  through
private purchases or tender offers. Under the Partnership Agreement, unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters,  which would include without  limitation,  voting on certain
amendments  to the  Partnership  Agreement  and  voting to remove  the  Managing
General  Partner.  As a result of its ownership of  approximately  58.29% of the
outstanding units, AIMCO is in a position to influence all voting decisions with
respect to the Registrant. When voting on matters, AIMCO would in all likelihood
vote the Units it acquired in a manner favorable to the interest of the Managing
General Partner because of its affiliation  with the Managing  General  Partner.
However,  with respect to 47,326.68 units,  owned by Insignia  Properties LP, an
affiliate of the Managing  General  Partner,  such affiliate is required to vote
such Units:  (i) against any  increase in  compensation  payable to the Managing
General Partner or to affiliates;  and (ii) on all other matters submitted by it
or its affiliates, in proportion to the votes cast by non-tendering unitholders.
Except for the  foregoing,  no other  limitations  are  imposed on AIMCO and its
affiliates'   ability  to  influence   voting  decisions  with  respect  to  the
Partnership.

Note C - Distributions

Cash distributions from operations of approximately $73,000 were paid during the
three months ended March 31, 2001,  of which  approximately  $70,000 was paid to
limited partners ($0.54 per limited  partnership  unit). The Partnership did not
make any  distributions  to its partners during the three months ended March 31,
2000.


<PAGE>






Note D - 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,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited  partnership units;  management of
the  partnerships  by the  Insignia  affiliates;  and the Insignia  Merger.  The
plaintiffs  seek  monetary  damages and  equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the Managing General Partner
filed a motion  seeking  dismissal of the action.  In lieu of  responding to the
motion, the plaintiffs filed an amended complaint.  The Managing General Partner
filed demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  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 prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  The demurrer is scheduled to be heard
on May 14,  2001.  The Court has also  scheduled a hearing on a motion for class
certification  for August 27, 2001.  Plaintiffs must file their motion for class
certification no later than June 15, 2001. The Managing General Partner does not
anticipate  that  costs  associated  with  this  case  will be  material  to the
Partnership's overall operations.

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


<PAGE>



ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

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

The Partnership's  investment properties consist of two apartment complexes. The
following table sets forth the average occupancy of the properties for the three
months ended March 31, 2001 and 2000:

                                                   Average Occupancy
      Property                                      2001       2000

      Ralston Place                                 95%        96%
        Tampa, Florida
      Woods of Inverness Apartments                 94%        92%
        Houston, Texas

Results of Operations

The  Registrant's  net  income for the three  months  ended  March 31,  2001 was
approximately $7,000 as compared to approximately  $61,000 for the corresponding
period in 2000.  Net income  decreased for the three months ended March 31, 2001
as  compared  to the same  period  in 2000 as a result of an  increase  in total
expenses which more than offset an increase in total revenues.

Total  expenses  increased  for the three  month  period  ended  March 31,  2001
primarily due to an increase in operating, general and administrative,  property
tax and depreciation  expenses.  Operating expenses increased due to an increase
in maintenance salaries at both investment properties and an increase in utility
expenses  at the  Woods of  Inverness  Apartments.  General  and  administrative
expenses increased primarily due to an increase in the cost of services included
in the  management  reimbursements  to the Managing  General  Partner as allowed
under the Partnership  Agreement.  Also,  included in general and administrative
expenses  at both  March  31,  2001 and  2000,  are  costs  associated  with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit  required by the  Partnership  Agreement.  Property tax expense
increased  at both  properties  resulting  from the timing of the receipt of tax
bills  which  affected  the  accruals  recorded  at March  31,  2001  and  2000.
Depreciation  expense  increased due to property  improvements  and replacements
completed during the last twelve months which are now being depreciated.

Total revenues  increased for the three month period ended March 31, 2001 due to
an increase in both rental and other income.  Rental income increased  primarily
due to increased  average rental rates at both of the  Partnership's  properties
and increased occupancy rates at the Woods of Inverness  Apartments,  which more
than offset the decrease in occupancy rates at Ralston Place  Apartments.  Other
income increased primarily due to increased utilities  reimbursements at both of
the Partnership's properties.

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

Liquidity and Capital Resources

At  March  31,  2001,  the  Partnership   had  cash  and  cash   equivalents  of
approximately  $188,000 as compared to approximately $325,000 at March 31, 2000.
Cash and cash equivalents  decreased  approximately $74,000 for the period ended
March 31, 2001 from the Partnership's  fiscal year end. The decrease in cash and
cash  equivalents  is due to  approximately  $172,000 of cash used in  investing
activities  and  approximately  $96,000  of cash used in  financing  activities,
partially offset by $194,000 of cash provided by operating activities. Cash used
in investing  activities  consisted of property  improvements  and  replacements
which was  partially  offset by  withdrawals  from  restricted  escrow  accounts
maintained by the mortgage lender. Cash used in financing  activities  consisted
of  distributions  to partners  and  principal  payments  made on the  mortgages
encumbering  the  Registrant's  properties.  The Registrant  invests its working
capital reserves in interest-bearing accounts.

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

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements. Capital improvements planned
for the Partnership's properties are detailed below.

Ralston  Place:  For 2001,  the  Partnership  has  budgeted  $55,000 for capital
improvements at Ralston Place consisting primarily of appliance,  plumbing,  air
conditioning and flooring replacements, fencing, major landscaping, recreational
facility  and pool  and  structural  improvements.  As of March  31,  2001,  the
property  has spent  approximately  $27,000 in capital  expenditures  consisting
primarily  of  plumbing  fixture  replacements,   structural   improvements  and
appliance  and floor  covering  replacements.  These  improvements  were  funded
primarily from replacement reserves and operations.  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.

Woods of Inverness: For 2001, the Partnership has budgeted approximately $75,000
for capital improvements at Woods of Inverness consisting primarily of appliance
and flooring  replacements  and parking lot and structural  improvements.  As of
March  31,  2001  the  property  has  spent  approximately  $67,000  in  capital
expenditures  consisting primarily of appliance and floor covering replacements,
parking lot resurfacing and structural  improvements.  These  improvements  were
funded   primarily  from   replacement   reserves  and  operations.   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 or from 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  $7,154,000 is amortized  over 360 months with a
balloon  payment of  approximately  $6,618,000 due January 1, 2006. The Managing
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.

Cash distributions from operations of approximately $73,000 were paid during the
three months ended March 31, 2001,  of which  approximately  $70,000 was paid to
limited partners ($0.54 per limited  partnership  unit). The Partnership did not
make any  distributions  to its partners during the three months ended March 31,
2000. 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 quarterly  basis.  There can be no  assurance  that the
Partnership  will  generate  sufficient  funds from  operations  after  required
capital expenditures, to permit further distributions to its partners during the
remainder of 2001 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 75,773.69 limited partnership units
(the  "Units")  in the  Partnership  representing  approximately  58.29%  of the
outstanding  units at March 31,  2001.  A number of these  Units  were  acquired
pursuant to tender  offers made by AIMCO,  its  affiliates  or affiliates of the
Managing  General  Partner.  It is possible  that AIMCO or its  affiliates  will
acquire additional limited partnership  interests in the Partnership for cash or
in exchange  for units in the  operating  partnership  of AIMCO  either  through
private purchases or tender offers. Under the Partnership Agreement, unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters,  which would include without  limitation,  voting on certain
amendments  to the  Partnership  Agreement  and  voting to remove  the  Managing
General  Partner.  As a result of its ownership of  approximately  58.29% of the
outstanding units, AIMCO is in a position to influence all voting decisions with
respect to the Registrant. When voting on matters, AIMCO would in all likelihood
vote the Units it acquired in a manner favorable to the interest of the Managing
General Partner because of its affiliation  with the Managing  General  Partner.
However,  with respect to 47,326.68 units,  owned by Insignia  Properties LP, an
affiliate of the Managing  General  Partner,  such affiliate is required to vote
such Units:  (i) against any  increase in  compensation  payable to the Managing
General Partner or to affiliates;  and (ii) on all other matters submitted by it
or its affiliates, in proportion to the votes cast by non-tendering unitholders.
Except for the  foregoing,  no other  limitations  are  imposed on AIMCO and its
affiliates'   ability  to  influence   voting  decisions  with  respect  to  the
Partnership.


<PAGE>




                           PART II - OTHER INFORMATION


ITEM 1.     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,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited  partnership units;  management of
the  partnerships  by the  Insignia  affiliates;  and the Insignia  Merger.  The
plaintiffs  seek  monetary  damages and  equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the Managing General Partner
filed a motion  seeking  dismissal of the action.  In lieu of  responding to the
motion, the plaintiffs filed an amended complaint.  The Managing General Partner
filed demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  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 prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  The demurrer is scheduled to be heard
on May 14,  2001.  The Court has also  scheduled a hearing on a motion for class
certification  for August 27, 2001.  Plaintiffs must file their motion for class
certification no later than June 15, 2001. The Managing General Partner does not
anticipate  that  costs  associated  with  this  case  will be  material  to the
Partnership's overall operations.


<PAGE>


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  None.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended March 31, 2001.


<PAGE>



                                   SIGNATURES



In accordance with the requirements of the Exchange Act, the Partnership  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                      CENTURY PROPERTIES FUND XVI


                                      By: FOX CAPITAL MANAGEMENT CORPORATION
                                          Managing General Partner


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


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


                                      Date: May 11, 2001