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 September 30, 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___


<PAGE>



                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

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

                               September 30, 2001

<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  337
   Receivables and deposits                                                     238
   Restricted escrows                                                            39
   Other assets                                                                 199
   Investment properties:
      Land                                                   $ 1,409
      Buildings and related personal property                  15,605
                                                               17,014
      Less accumulated depreciation                            (9,482)        7,532
                                                                            $ 8,345
Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                         $    34
   Accrued property taxes                                                       210
   Tenant security deposit liabilities                                           52
   Other liabilities                                                            218
   Mortgage notes payable                                                     7,107

Partners' (Deficit) Capital
   General partners                                          $ (3,856)
   Limited partners (130,000 units issued and
      outstanding)                                              4,580           724
                                                                            $ 8,345



         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         Nine Months Ended
                                        September 30,              September 30,
                                      2001          2000         2001         2000
Revenues:
<S>                                <C>           <C>          <C>          <C>
   Rental income                   $   787       $   743      $  2,311     $  2,229
   Other income                         70            52           166          131
      Total revenues                   857           795         2,477        2,360
Expenses:
   Operating                           383           326         1,061          937
   General and administrative           71            87           213          184
   Depreciation                        170           161           511          465
   Interest                            148           150           446          451
   Property tax                          66           75           211          193
      Total expenses                   838           799         2,442        2,230

      Net income (loss)            $    19       $    (4)     $     35     $    130

Net income allocated to
  general partners (6.9%)          $     1       $    --      $      2     $      9
Net income (loss) allocated to
   limited partners (93.1%)              18           (4)           33          121

                                   $     19      $    (4)     $     35     $    130

Net income (loss) per limited
  partnership unit                 $    .14      $  (.03)     $    .25     $    .93
Distributions per limited
  partnership unit                 $     --      $    --      $   1.05     $   1.98

         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                 --          (11)       (136)        (147)

Net income for the nine months
   ended September 30, 2001               --            2          33           35

Partners' (deficit) capital
   at September 30, 2001             130,000     $ (3,856)    $ 4,580      $   724

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>

d)
                           CENTURY PROPERTIES FUND XVI
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                (in thousands)
<TABLE>
<CAPTION>

                                                                 Nine Months Ended
                                                                   September 30,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                             <C>          <C>
  Net income                                                    $     35     $    130
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                                    511          465
     Amortization of loan costs                                       24           24
     Change in accounts:
       Receivables and deposits                                        7           22
       Other assets                                                  (30)          (8)
       Accounts payable                                              (50)         (17)
       Accrued property taxes                                         38           24
       Tenant security deposit liabilities                            11           (1)
       Other liabilities                                              88          (67)
       Due to affiliates                                              --           38

       Net cash provided by operating activities                     634          610

Cash flows from investing activities:
  Property improvements and replacements                            (358)        (504)
  Net withdrawals from restricted escrows                             16           94

       Net cash used in investing activities                        (342)        (410)

Cash flows from financing activities:
  Distributions to partners                                         (147)        (276)
  Payments on mortgage notes payable                                 (70)         (65)

       Net cash used in financing activities                        (217)        (341)

Net increase (decrease) in cash and cash equivalents                  75         (141)

Cash and cash equivalents at beginning of period                     262          468

Cash and cash equivalents at end of period                      $    337     $    327

Supplemental disclosure of cash flow information:
  Cash paid for interest                                        $    375     $    428

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").  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 and nine
month periods ended  September  30, 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. The Managing  General  Partner and the
managing  general  partner of FRI are  affiliates  of Apartment  Investment  and
Management Company ("AIMCO"), a publicly traded real estate investment trust.

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 established  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 consolidated financial statements of the Partnership include its 99% limited
partnership  interest in The Landings CPF 16, LP.  Because the  Partnership  may
remove the  general  partner of The  Landings  CPF 16 LP,  this  partnership  is
controlled and  consolidated  by the  Partnership.  The  consolidated  financial
statements also include the Partnership's interest in Woods of Inverness CPF 16,
LP, which is wholly owned by the Registrant.  All significant  inter-partnership
balances have been  eliminated.  Minority  interest is immaterial  and not shown
separately in the financial statements.

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 nine months
ended September 30, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $125      $117
 Reimbursement for services of affiliates (included in
   investment properties and general and administrative and
   operating expenses)                                             125       125

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
$125,000 and $117,000  during the nine months ended September 30, 2001 and 2000,
respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable administrative expenses amounting to approximately $125,000 for both
the nine month periods ended September 30, 2001 and 2000.

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  interests in the
Partnership,  AIMCO and its affiliates owned 76,659.69 limited partnership units
(the "Units") in the Partnership representing 58.97% of the outstanding Units at
September  30,  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 voting on certain  amendments to the  Partnership  Agreement
and voting to remove the Managing General Partner.  As a result of its ownership
of 58.97% of the outstanding Units, AIMCO is in a position to influence all such
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,  47,326.68 Units held by Insignia Properties,
LP, an affiliate of the Managing General Partner,  are required to be voted: (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 or its affiliates' ability
to influence voting decisions with respect to the Partnership.

Note C - Distributions

Cash  distributions  from operations of approximately  $147,000 were paid during
the nine months ended  September 30, 2001, of which  approximately  $136,000 was
paid  to  limited   partners  ($1.05  per  limited   partnership   unit).   Cash
distributions  from  operations of  approximately  $276,000 were paid during the
nine months ended September 30, 2000, of which  approximately  $257,000 was paid
to limited partners ($1.98 per limited partnership unit).

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. (the "Nuanes action") 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 series of transactions which closed on October 1,
1998 and  February 26, 1999 whereby  Insignia  and  Insignia  Properties  Trust,
respectively,  were merged into AIMCO.  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.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which, together with a demurrer filed
by other  defendants,  is currently  scheduled to be heard on November 15, 2001.
The Court has set the matter for trial in January 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint.  The matters are currently  scheduled to be heard
on November 15, 2001.

The Managing  General Partner does not anticipate that any costs,  whether legal
or  settlement  costs,  associated  with  these  cases 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 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 nine
months ended September 30, 2001 and 2000:

                                                   Average Occupancy
      Property                                      2001       2000

      Ralston Place Apartments                      96%        96%
         Tampa, Florida
      Woods of Inverness Apartments                 95%        93%
        Houston, Texas

Results of Operations

The  Registrant's  net income for the nine months ended  September  30, 2001 was
approximately  $35,000 compared to approximately  $130,000 for the corresponding
period in 2000. The Registrant's net income for the three months ended September
30,  2001 was  approximately  $19,000  compared  to a net loss of  approximately
$4,000 for the three months ended September 30, 2000. The increase in net income
for the three  months  ended  September  30, 2001 is due to an increase in total
revenues partially offset by an increase in total expenses.  The decrease in net
income for the nine months ended  September  30, 2001 is a result of an increase
in total expenses which more than offset an increase in total revenues.

Total expenses  increased for both the three and nine months ended September 30,
2001  primarily  due to an increase in operating and  depreciation  expenses and
additionally  for the nine  months  ended  September  30,  2001,  an increase in
general  and  administrative  and  property  tax  expenses.  Operating  expenses
increased due to an increase in  maintenance  salaries and related  benefits and
utility  expenses at Woods of Inverness  Apartments and an increase in insurance
expense at Ralston  Place  Apartments.  Depreciation  expense  increased  due to
property  improvements and replacements  completed during the last twelve months
which are now being  depreciated.  Property tax expense  increased  for the nine
months ended September 30, 2001 at both properties  resulting from the timing of
the receipt of property  tax bills,  which  affected  the  accruals  recorded at
September 30, 2001.

General  and  administrative  expenses  increased  for  the  nine  months  ended
September  30,  2001 due to an  increase  in  administration  fees.  Included in
general and administrative expense for the three and nine months ended September
30, 2001 and 2000 are management  reimbursements to the Managing General Partner
allowed under the Partnership Agreement. In addition,  costs associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit required by the Partnership Agreement are also included.

Total revenues  increased for both the three and nine months ended September 30,
2001,  as compared to the same periods in 2000.  The increase in total  revenues
was the result of increased  rental income at both properties and an increase in
other income at Woods of Inverness  Apartments.  Rental income  increased due to
higher  average rental rates and an increase in occupancy at Woods of Inverness.
Other income increased due to increased  utilities and tenant  reimbursements at
Woods of Inverness.

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  September  30,  2001,  the  Registrant  had  cash and  cash  equivalents  of
approximately $337,000 compared to approximately $327,000 at September 30, 2000.
Cash and cash  equivalents  increased  approximately  $75,000 since December 31,
2000 due to  approximately  $634,000 of cash  provided by  operating  activities
partially  offset  by  approximately  $342,000  and  $217,000  of  cash  used in
investing  and  financing  activities,  respectively.  Cash  used  in  investing
activities consisted of property  improvements and replacements  slightly offset
by net withdrawals  from restricted  escrow accounts  maintained by the mortgage
lender. Cash used in financing  activities  consisted primarily of distributions
to the  partners  and,  to a  lesser  extent,  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  Apartments:  For 2001,  the  Partnership  budgeted  approximately
$74,000  for capital  improvements  at Ralston  Place  consisting  primarily  of
appliance, air conditioning and flooring replacements,  window treatments, water
heater  upgrades,  and  structural  improvements.  As of September 30, 2001, the
property  has spent  approximately  $74,000 in capital  expenditures  consisting
primarily  of  appliance,   air  conditioning  and  flooring   replacements  and
structural  improvements.   These  improvements  were  funded  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 Apartments:  For 2001, the Partnership budgeted approximately
$90,000 for capital  improvements at Woods of Inverness  consisting primarily of
interior decoration,  flooring replacements and parking lot improvements.  As of
September 30, 2001,  the property has spent  approximately  $191,000 in budgeted
and unbudgeted capital expenditures  consisting primarily of appliance and floor
covering  replacements,   window  treatments,  major  landscaping,  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.

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  $7,107,000 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  $147,000 were paid during
the nine months ended  September 30, 2001, of which  approximately  $136,000 was
paid  to  limited   partners  ($1.05  per  limited   partnership   unit).   Cash
distributions  from  operations of  approximately  $276,000 were paid during the
nine months ended September 30, 2000, of which  approximately  $257,000 was paid
to  limited  partners  ($1.98  per  limited   partnership  unit).   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 monthly basis. There can be no assurance that the Partnership will
generate sufficient funds from operations,  after planned capital  expenditures,
to permit additional  distributions to its partners during the remainder of 2001
or subsequent periods.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 76,659.69 limited partnership units
(the "Units") in the Partnership representing 58.97% of the outstanding Units at
September  30,  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 voting on certain  amendments to the  Partnership  Agreement
and voting to remove the Managing General Partner.  As a result of its ownership
of 58.97% of the outstanding Units, AIMCO is in a position to influence all such
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,  47,326.68 Units held by Insignia Properties,
LP, an affiliate of the Managing General Partner,  are required to be voted: (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 or 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. (the "Nuanes action") 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 series of transactions which closed on October 1,
1998 and  February 26, 1999 whereby  Insignia  and  Insignia  Properties  Trust,
respectively,  were merged into AIMCO.  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.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which, together with a demurrer filed
by other  defendants,  is currently  scheduled to be heard on November 15, 2001.
The Court has set the matter for trial in January 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint.  The matters are currently  scheduled to be heard
on November 15, 2001.

The Managing  General Partner does not anticipate that any costs,  whether legal
or  settlement  costs,  associated  with  these  cases 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 September 30, 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:   October 29, 2001