<PAGE>
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549
                             ----------------------

                                    FORM 10-K

                  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934
                     --------------------------------------

                    FOR THE FISCAL YEAR ENDED MARCH 31, 2003

                         COMMISSION FILE NUMBER 33-24537
                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II

                        A CALIFORNIA LIMITED PARTNERSHIP

                  I.R.S. EMPLOYER IDENTIFICATION NO. 95-4178283

            1925 CENTURY PARK EAST, SUITE 1900, LOS ANGELES, CA 90067

                  REGISTRANT'S TELEPHONE NUMBER: (310) 208-1888

Securities Registered Pursuant to Section 12(b) or 12(g) of the Act:

                                      NONE

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed with the Commission by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve months (or 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-K is not contained in this form and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference to part III of this Form 10-K
or any amendment to this Form 10-K (X).


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).

                                Yes        No  X
                                   -----     -----

No market exists for the limited partnership interests of the registrant, and
therefore, no aggregate market value can be determined.

No documents are incorporated into the text by reference.

Registrant's Prospectus dated January 4, 1989, as amended (the Prospectus) and
the Registrant's Supplement No. 2 dated November 21, 1989 to Prospectus dated
January 4, 1989 (Supplement No. 2) but only to the extent expressly incorporated
by reference in Parts I through IV hereof. Capitalized terms which are not
defined herein have the same meaning as in the Prospectus.


<PAGE>



                                TABLE OF CONTENTS

<Table>
<Caption>
PART 1

<S>           <C>                                                          <C>
     ITEM 1   BUSINESS                                                      3

     ITEM 2   PROPERTIES                                                    4

     ITEM 3   LEGAL PROCEEDINGS                                             5

     ITEM 4   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS           5

PART II

     ITEM 5   MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS             6

     ITEM 6   SELECTED FINANCIAL DATA                                       6

     ITEM 7   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
              FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS                7

     ITEM 7A  QUANTITATIVE AND QUALITATIVE DISCLOSURES
              ABOUT MARKET RISK                                             9

     ITEM 8   FINANCIAL STATEMENTS                                         10

     ITEM 9   CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON
              ACCOUNTING AND FINANCIAL DISCLOSURE                          10

PART III

     ITEM 10  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT           11

     ITEM 11  EXECUTIVE COMPENSATION                                       12

     ITEM 12  PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN
              BENEFICIAL OWNERS AND MANAGEMENT                             13

     ITEM 13  CERTAIN RELATIONSHIPS AND RELATED
              TRANSACTIONS                                                 13

     ITEM 14  CONTROLS AND PROCEDURES                                      13

PART IV

     ITEM 15  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND
              REPORTS ON FORM 8-K                                          14

              SIGNATURES                                                   15
</Table>



<PAGE>



                                     PART I

ITEM 1.  BUSINESS

Century Pacific Tax Credit Housing Fund-II (CPTCHF-II or the Partnership) was
formed on September 2, 1988 as a limited partnership under the laws of the State
of California to invest in multifamily housing developments (the Properties).
The Partnership's business is to invest primarily in other limited partnerships
(Operating Partnerships) that are organized for the purposes of either
constructing or acquiring and operating existing affordable multifamily rental
apartments (the Properties) that are eligible for the Low Income Housing Tax
Credit, or to a lesser extent, the Rehabilitation Tax Credit, both enacted by
the Tax Reform Act of 1986 (sometimes referred to as Credits or Tax Credits).
The Partnership has invested in two Properties, each of which qualifies for the
Low Income Housing Tax Credit. Both of these Properties receive one or more
forms of assistance from Federal, state or local governments. A summary of the
Partnership's objectives and a summary of the Tax Credits are provided in the
Prospectus under "Investment Objectives and Policies" and "Federal Income Tax
Aspects" on pages 45 and 79, respectively, and are incorporated herein by
reference.

The partnership does not employ any persons. Alternatively, the partnership
reimburses an affiliate for allocated overhead, consisting primarily of payroll
costs.

In order to stimulate private investment in low and moderate income housing of
the types in which CPTCHF-II has invested, the federal government, through the
Department of Housing and Urban Development (HUD), has provided investors with
significant ownership incentives, such as interest subsidies, rent supplements,
mortgage insurance and other measures, with the intent of reducing the risks and
providing the investors/owners with certain tax benefits, limited cash
distributions and the possibility of long-term capital gains. However, there are
significant risks inherent in this type of housing. Long-term investments in
real estate limit the ability of CPTCHF-II to vary its portfolio in response to
changing economic, financial and investment conditions, rising operating costs
and vacancies, rent controls and collection difficulties, costs and availability
of energy, as well as other factors which normally affect real estate values. In
addition, these Properties usually are rent restricted and are subject to
Government Agency programs which may or may not require prior consent to
transfer ownership.

The Partnership acquired the Properties by investing as the limited partner in
Operating Partnerships which own the Properties. As a limited partner,
CPTCHF-II's liability for obligations of the Operating Partnerships is limited
to its investment. The Partnership made capital contributions to the Operating
Partnerships in amounts sufficient to pay the Operating Partnerships' expenses
and to reimburse the General Partners for their costs incurred in forming the
Operating Partnerships, if any, and acquiring the Properties. For each
acquisition, this typically included a cash down payment (in one or more
installments), acceptance of the Property's mortgage indebtedness, and execution
of a Purchase Money Note in favor of the seller of the Property.



                                       3
<PAGE>
The Partnership's primary objective is to provide Low-Income Housing Tax Credits
to its limited partners generally over a 10-year period. Each of the
Partnership's Operating Partnerships has been allocated, by the relevant state
tax credit agency, an annual amount of the Low-Income Housing Tax Credits for 10
years from the date the Property was placed in service. The required holding
period of the Properties is 15 years (the Compliance Period). The Properties
must satisfy rent restriction, tenant income limitations and other requirements
(the Low-Income Housing Tax Credit Requirements) in order to maintain
eligibility for recognition of the Low-Income Housing Tax Credits at all times
during the Compliance Period. Once an Operating Partnership has become eligible
for the Low-Income Housing Tax Credits, it may lose such eligibility and suffer
an event of recapture if its Property fails to remain in compliance with the
Low-Income Housing Tax Credit Requirements. To date, neither of the Operating
Partnerships have suffered an event of recapture of Low-Income Housing Tax
Credit.

ITEM 2.  PROPERTIES

As of March 31, 2003, CPTCHF-II had acquired equity interests in the Operating
Partnerships set forth in the table below. Each of the Properties acquired by
the Operating Partnerships receives benefits under government assistance
programs provided by HUD. One of the Properties also receives benefits from the
Illinois Housing Development Authority (IHDA). The table below summarizes the
Operating Partnerships acquired and the government assistance programs
benefiting each Property. Further information concerning these Properties may be
found in Supplement No. 2 to the Prospectus, pages 4 through 66, which
information is incorporated herein by reference and is summarized below.

<Table>
<Caption>
                                                                                   Capital
                                                                           Contribution Obligation
                                                                          --------------------------
                                           Date of        Percent                           Paid
Property Name,          Average          Acquisition    Interest in        Total at        through
Location and           Occupancy             of          Operating         March 31,       March 31,
Rental Units             2003             Interest      Partnership          2003            2003
                       ----------        -----------    -----------       ----------      ----------
<S>                    <C>               <C>            <C>               <C>             <C>

Washington Courts
Chicago, IL
103 Residential
Units                         94%         5/1/89                 90%      $2,743,413      $2,743,413

Plumley Village
Boston, MA
430 Residential
Units                         99%         8/1/89                 60%       1,648,026       1,648,026
                                                                          ----------      ----------

                                                                          $4,391,439      $4,391,439
                                                                          ==========      ==========


<Caption>
                                                       December 31, 2002
                          -----------------------------------------------------------------------


Property Name,                                                                                               Government
Location and              Mortgage            Residual            Purchase            Other                  Assistance
Rental Units              Notes               Note                Note                Note                    Program
                          -----------         -----------         -----------         -----------         ---------------
<S>                       <C>                 <C>                 <C>                 <C>                 <C>

Washington Courts
Chicago, IL                                                                                                   HUD Insured
103 Residential                                                                                                   Section
Units                     $ 4,877,892         $        --         $        --         $        --          221(d)(4) IHDA
                                                                                                                      HAP
Plumley Village                                                                                                  Contract
Boston, MA                                                                                                            HUD
430 Residential                                                                                               Section 236
Units                       6,187,198           5,391,987           8,977,739             405,895               Section 8
                          -----------         -----------         -----------         -----------

                          $11,065,090         $ 5,391,987         $ 8,977,739         $   405,895
                          ===========         ===========         ===========         ===========
</Table>


                                       4
<PAGE>



ITEM 3.  LEGAL PROCEEDINGS

As of July 31, 2003, there were no pending legal proceedings against CPTCHF-II
or any Operating Partnership in which it has invested.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

As of March 31, 2003, there were no submissions of matters to a vote of security
holders.



                                       5
<PAGE>
                                     PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS

There is at present no public market for the units of limited partnership
interests (the Units), and it is unlikely that any public market for the Units
will develop. See the Prospectus under "Transferability of Interests" on pages
24 and 52 of the Prospectus, which information is incorporated herein by
reference. The number of owners of Units as of June 3, 2003 was approximately
519, holding 5,754 units.

As of July 31, 2003, there were no cash distributions.

ITEM 6.  SELECTED FINANCIAL DATA

The selected financial data set forth below, insofar as they relate to each of
the three years ended March 31, 2003, and as of March 31, 2003 and 2002, are
derived from, and are qualified by reference to, our audited financial
statements included herein and should be read in conjunction with those
financial statements and the notes thereto. The selected financial data as of
March 31, 2001, 2000 and 1999 and for the years ended March 31, 2000 and 1999
are derived from audited financial statements not included herein. Results for
past periods are not necessarily indicative of results that may be expected for
future periods.


<Table>
<Caption>
                                                                       Year Ended March 31,
                                       -------------------------------------------------------------------------------------
OPERATIONS                                2003               2002               2001               2000               1999
                                       ---------          ---------          ---------          ---------          ---------
<S>                                    <C>                <C>                <C>                <C>                <C>
Revenues                               $      --          $      --          $     500          $     500          $   1,600

Operating Expenses                      (207,622)          (209,084)          (189,874)          (192,624)          (191,110)
Equity in Net Losses of
Operating Partnerships                        --                 --           (430,306)          (251,269)          (318,696)
                                       ---------          ---------          ---------          ---------          ---------

Net Loss                               $(207,622)         $(209,084)         $(619,680)         $(443,393)         $(508,206)
                                       =========          =========          =========          =========          =========

Net Loss per Unit of
Limited Partnership
Interest                               $     (36)         $     (36)         $    (108)         $     (77)         $     (88)
                                       =========          =========          =========          =========          =========
</Table>


<Table>
<Caption>
                                                                            March 31,
                                       -------------------------------------------------------------------------------------
FINANCIAL POSITION                        2003               2002               2001               2000               1999
                                       ---------          ---------          ---------          ---------          ---------
<S>                                    <C>                <C>                <C>                <C>                <C>
Total Assets                           $     871          $     918          $   3,433          $ 433,553          $ 684,322
                                       =========          =========          =========          =========          =========
</Table>



                                       6
<PAGE>


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
         RESULTS OF OPERATIONS

Liquidity and Capital Resources

The Partnership offered limited partnership interests to the public during
calendar year 1989, pursuant to a Registration Statement filed under the
Securities Act of 1933. The Partnership raised $5,754,000 in equity capital and,
thereafter, invested in Operating Partnerships, which own multifamily Properties
located in Illinois and Massachusetts. These properties under Section 42 of the
Internal Revenue Code earn low-income housing tax credits which are passed
through to the individual partners of the Partnership. Low-Income housing tax
credits earned by the Partnership for calendar years 2002, 2001 and 2000 were
$23,744 per year. 2002 was the final year of the Partnership receiving
low-income housing tax credits.

As of March 31, 2003, the Partnership portfolio consists of two Properties
totaling 533 units. For a summary of the combined financial status of the
Operating Partnerships and the Properties, see the financial information
contained under ITEM 15.

The government restricts rental rate increases. A substantial amount of the
revenue generated by these properties comes from rental subsidy payments made by
federal or state housing agencies. These features, which are characteristic of
all low-income housing properties, limit the pool of potential buyers for these
real estate assets. As a limited partner of the Operating Partnerships, the
Partnership does not control property disposition decisions, and management is
not aware of any plans or intentions of the general partners of these
partnerships to sell any of the investment properties in the near future.

The Partnership is currently experiencing a liquidity problem. Under the
Partnership Agreement, the Partnership is entitled to receive distributions of
surplus cash from the Operating Partnerships which is to provide the funds
necessary for the Partnership to meet its administrative expenses and pay the
Partnerships management fee. At the present time, the Operating Partnerships
have not generated sufficient cash distributions to fund the Partnership's
expenses. As a result of the foregoing, the Partnership has been dependent upon
its affiliates and the General Partners for continued financial support to meet
its expenses. Though there can be no assurance, management believes that
affiliates and/or the General Partners, though not required to do so, will
continue to fund operations of the Partnership and defer receipt of payment of
allocated overhead administrative expenses and partnership management fees.
Allocated administrative expenses paid or accrued to affiliates and the General
Partners represent reimbursement of the actual cost of goods and materials used
for or by the Partnership, salaries, related payroll costs and other
administrative items incurred or allocated, and direct expenses incurred in
rendering legal, accounting/bookkeeping, computer, printing and public relations
services. Items excluded from the overhead allocation include overhead expenses
of the General Partners, including rent and salaries of employees not
specifically performing the services described above. Unpaid allocated
administrative expenses and partnership management fees, an annual amount up to
..5% of invested assets, will accrue for payment in future operating years.



                                       7
<PAGE>
The Partnership is not expected to have access to any significant sources of
financing. Accordingly, if unforeseen contingencies arise that cause an
Operating Partnership to require additional capital to sustain operations, in
addition to that previously contributed by the Partnership, the source of the
required capital needs may be from (i) limited reserves from the Partnership
(which may include distributions received from Operating Partnerships that would
otherwise be available for distribution to partners), (ii) debt financing at the
Operating partnership level (which may not be available), or (iii) additional
equity contributions from the general partner of the Operating Partnerships
(which may not be available). There can be no assurance that any of these
sources would be readily available to provide for possible additional capital
requirements which may be necessary to sustain the operations of the Operating
Partnerships.

Contractual Obligations

The Operating Partnerships' contractual cash obligations and other commercial
commitments at March 31, 2003 are summarized in the following table:

<Table>
<Caption>
                                                Less Than
                                    Total          1 Year        1-3 Years         4-5 Years        After 5 Years
                             ------------       ---------       ----------       -----------        -------------
<S>                          <C>                <C>             <C>              <C>                  <C>
Mortgage payable             $ 11,065,090       $ 466,581       $1,061,584       $ 1,259,204        $   8,277,721
================             ============       =========       ==========       ===========        =============
</Table>

Tax Reform Act of 1986, Ominbus Budget Reconciliation Act of 1987, Technical and
Miscellaneous Revenue Act of 1988, Ominbus Budget Reconciliation Act of 1989 and
Ominbus Budget Reconciliation Act of 1990 and all subsequent tax acts.

The Partnership is organized as a limited partnership and is a "pass through"
tax entity which does not, itself, pay federal income tax. However, the partners
of the Partnership, who are subject to federal income tax, may be affected by
the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1987, the
Technical and Miscellaneous Revenue Act of 1988, the Ominbus Budget
Reconciliation Act of 1989 and the Ominbus Budget Reconciliation Act of 1990 and
all subsequent tax acts (collectively the Tax Acts). The Partnership will
consider the effect of certain aspects of the Tax Acts on the partners when
making investment decisions. The Partnership does not anticipate that the Tax
Acts will have a material adverse impact on the Partnership's business
operations, capital resources, plans or liquidity.

Results of Operations

The fiscal year of the Partnership ends on March 31 of each year, however, the
fiscal year of each Operating Partnership ends on December 31. Therefore, the
earnings and losses of the Operating Partnerships reflected on the equity method
in the Partnership's financial statements for its current fiscal year are for
the calendar year ended December 31, 2002.

2003 Compared to 2002

For the fiscal year ended March 31, 2003, the Partnership recorded a net loss of
approximately $208,000, as compared to a net loss of approximately $209,000 for
the prior fiscal year. The decrease in net loss is the result of a small
decrease in the Partnership's expenses of approximately $1,000.




                                       8
<PAGE>


In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment properties
when losses exceed the Partnership's equity method basis in these properties.
One of the two investments has had an equity method basis of zero since March
31, 1993. The recorded share of the Partnership's other investment on an equity
method basis was reduced to zero in 2001.

In the aggregate, combined rental revenue of the Operating Partnerships
increased during the current calendar year. The average occupancy level for
Plumley Village remained constant at 99% in calendar year 2002, but Washington
Court increased to 94% occupancy level in the current year. The combined total
expenses of the two operating properties decreased by approximately $43,000 in
the current year primarily due to decreases in interest, repairs and maintenance
and management fees offset with increases in utilities, other operating expenses
and depreciation.

2002 Compared to 2001

For the fiscal year ended March 31, 2002, the Partnership recorded a net loss of
approximately $209,000, as compared to a net loss of approximately $620,000 for
the prior fiscal year. The decrease in net loss is the result of the decrease in
the Partnership's equity in net losses of the Operating Partnerships of
approximately $430,000, offset by a small increase in the expenses of
approximately $19,000 in 2002.

In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment properties
when losses exceed the Partnership's equity method basis in these properties.
One of the two investments has had an equity method basis of zero since March
31, 1993. The recorded share of the Partnership's other investment on an equity
method basis was reduced to zero in 2001.

In the aggregate, combined rental revenue of the Operating Partnerships
increased during 2002. The average occupancy level for Plumley Village remained
constant at 99% in calendar year 2001, but Washington Court increased to 91%
occupancy level in calendar year 2001. The combined total expenses of the two
operating properties increased by approximately $270,000 in 2002 primarily due
to an increase in utilities, other operating expenses, interest, and
depreciation expense.

Inflation

Inflation is not expected to have a material adverse impact on the Partnership's
operations during its period of ownership of the Properties.

Other

The Partnership's operations are not subject to any significant seasonal
fluctuations. The Partnership believes it is in compliance with environmental
regulations and does not anticipate material effects of continued compliance.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.



                                       9
<PAGE>


ITEM 8.  FINANCIAL STATEMENTS

The financial statements together with the report of the independent auditors
thereon are set forth on the pages indicated in ITEM 15.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

Not applicable.





                                       10
<PAGE>




                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The Partnership has no officers or directors. Management of the Partnership is
vested in Irwin Jay Deutch and Century Pacific Capital II Corporation (CPII)
(the General Partners). The General Partners will involve themselves in the
day-to-day affairs of the Partnership as required to protect the Limited
Partners' investment and advance the Partnership's investment objectives. Mr.
Deutch, the Managing General Partner, has the overall responsibility for the
preparation and transmittal of periodic reports to the Limited Partners,
preparation and filing of the Partnership's tax returns with the IRS and the
appropriate state tax authorities, and the preparation and filing of reports to
HUD and other Government Agencies.

Following is biographical information on Mr. Deutch and the Executive Officers
of CPII:

IRWIN JAY DEUTCH

Irwin Jay Deutch, age 62, is Chairman of the Board, President, and Chief
Executive Officer of Century Pacific Realty Corporation (CPRC), a General
Partner of the Operating Partnerships that own the Properties in which CPTCHF-II
has invested, and its Affiliates. Mr. Deutch has been involved with low-income
housing investments since 1968. He is the individual general partner in 62
private limited partnerships and two public limited partnerships investing in
209 properties, including 196 multifamily properties with 33,700 apartment
units, 10 commercial projects, and 3 hotel properties. Fifty-eight of the 62
private limited partnerships have invested in affordable housing. In his
capacity as general partner and officer of CPRC, he oversees the management of
these partnerships and assumes overall responsibility for the development,
direction, and operation of all affiliated CPRC companies. Mr. Deutch is
recognized as an expert in the field of affordable housing and frequently
addresses professional groups on topics of real estate investment, syndication,
tax law, and the Low-Income Housing Tax Credit program.

Mr. Deutch received a B.B.A. with distinction from the University of Michigan
School of Business Administration in 1962 and a Juris Doctor degree with honors
from the University of Michigan Law School in 1965. He is a member of the Order
of the Coif. Mr. Deutch served in the Honors Program in the Office of the Chief
Counsel of the Internal Revenue Service from 1965 to 1967, where he was assigned
to the Interpretative Division in Washington, D.C. He attended Georgetown Law
Center and received his Master of Laws degree in taxation in 1967. Mr. Deutch is
a member of the State Bars of Michigan and California, as well as the American,
Federal, Los Angeles, and Beverly Hills Bar Associations.




                                       11
<PAGE>



KEY OFFICERS OF CPII AND AFFILIATES

ESSIE SAFAIE, age 53, is Chief Financial Officer and Chief Operating Officer of
CPRC. Prior to joining CPRC in 1988, from 1985-88, he was Vice President and
Chief Financial Officer of Sunrise Investments, Inc., a real estate syndication
firm with $450 million of real estate under management. During this period, Mr.
Safaie was also President of an affiliated property management firm, S&L
Property Management, Inc., with over 12,000 residential units and 800,000 square
feet of commercial office space under direct management. From 1982 to 1985, Mr.
Safaie was assistant controller of Standard Management Company, builders and
managers of luxury hotels, commercial offices and residential units. From
1980-1982, he served as financial officer of Diamond "M" Drilling Company. Mr.
Safaie received a BA degree in Business Administration from California State
University with a major in accounting.

CHARLES L. SCHWENNESEN, age 57, is Vice President of Acquisition Finance for
CPRC and is responsible for financial analysis and "due diligence" reviews of
all properties acquired by CPRC. Prior to joining CPRC in 1987, he was a
consultant to companies which provided investment opportunities through private
placements. From 1984 to 1985, Mr. Schwennesen was Vice President of Cranston
Securities Company and was responsible for the structuring of more than $30
million of mortgage revenue bond financing for affordable housing projects. From
1977 to 1984, Mr. Schwennesen was a manager with the accounting firm of Price
Waterhouse where he specialized in providing auditing and consulting services to
publicly held California real estate development companies involved in the
affordable housing industry. Mr. Schwennesen is a Certified Public Accountant
and holds a Masters degree in Business Administration from the UCLA Graduate
School of Management and a B.A. degree in Mathematics from UCLA.

ITEM 11. EXECUTIVE COMPENSATION

The Partnership has no officers or directors. However, in connection with the
operations of the partnership and the Operating Partnerships, the General
Partners and their Affiliates will or may receive certain fees, compensation,
income and other payments which are described in the Prospectus under
"Compensation, Fees and Reimbursements" on page 17, the terms of which are
incorporated herein by reference.

During the fiscal years ended March 31, 2003, 2002 and 2001, CPII, a General
Partner of the Partnership, earned $162,091, $159,321, and $150,049,
respectively, of partnership management fees. During the fiscal years ended
March 31, 2003, 2002 and 2001, the Partnership accrued $37,600, $37,600, and
$37,600, respectively, for the reimbursement of overhead allocation from Century
Pacific Equity Corporation (CPEC). During fiscal year 2003, the General Partners
received no payments from the Operating Partnerships.



                                       12
<PAGE>
ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT

No partner in CPTCHF-II owns more than 5% of the total number of partnership
interests outstanding. Irwin J. Deutch, the Managing General Partner, holds a
one-half percent General Partnership Interest.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Irwin J. Deutch is the Managing General Partner of CPTCHF-II, and CPII is also a
General Partner. Irwin J. Deutch is the sole Director and President of CPII, and
the stock of CPII is solely owned by the Deutch Family Trust. Mr. Deutch is also
the President, sole Director and the Deutch Family Trust is the sole stockholder
of Century Pacific Realty Corporation (CPRC), a General Partner of the Operating
Partnerships that own the Properties in which CPTCHF-II has invested. CPII
received a partnership management fee for its services in managing and advising
the Partnership and its business. CPEC, an affiliate, provides all the services
and materials necessary for the operation of the Partnership and is reimbursed
for actual costs. These transactions are more particularly set forth in the
financial statements found under ITEM 15.

As of March 31, 2003, a third-party buyer had entered into a conditional
contract to acquire CP Equity, CP Capital, CP Realty, and their affiliated
companies and partnerships from Deutch's family trust. As of March 31, 2003,
these acquisitions had not yet occurred, but are anticipated to occur in 2003.

ITEM 14. CONTROLS AND PROCEDURES

         (a)      Evaluation of Disclosure Controls and Procedures

                  The Partnership's Chief Executive Officer and Chief Financial
         Officer have reviewed and evaluated the effectiveness of the
         Partnership's disclosure controls and procedures (as defined in
         Exchange Act Rules 240.13a-14(c) and 15d-14(c) as of a date within
         ninety days before the filing date of this report. Based on that
         evaluation, they have concluded that the Partnership's current
         disclosure controls and procedures are effective in timely providing
         them with material information relating to the Partnership required to
         be disclosed in the reports the Partnership files or submits under the
         Exchange Act.

         (b)      Changes in Internal Controls

                  There have not been any significant changes in the
         Partnership's internal controls or in other factors that could
         significantly affect these controls subsequent to June 30, 2003, the
         date of evaluation. There were no significant deficiencies or material
         weaknesses, and, therefore, no corrective actions were taken.



                                       13
<PAGE>
                                     PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

<Table>
<Caption>
<S>      <C>      <C>                                                                                <C>
(a)      (1)      Financial Statements:

                  Independent Auditors' Report                                                       F-1
                  Balance Sheet as of March 31, 2003 and 2002                                        F-2
                  Statement of Partners' Equity (Deficit) for the Years Ended March 31,
                           2003, 2002 and 2001                                                       F-3
                  Statement of Operations for the Years Ended March 31,
                           2003, 2002 and 2001                                                       F-4
                  Statement of Cash Flows for the Years Ended March 31,
                           2003, 2002 and 2001                                                       F-5
                  Notes to Financial Statements                                                      F-6

         (2)      Financial Statement Schedules:

                  Schedule III - Real Estate and Accumulated Depreciation of
                           Operating Partnerships in which CPTCHF-II has
                           Limited Partnership Interests                                            F-14
                  Notes to Schedule III - Real Estate and Accumulated
                           Depreciation of Operating Partnerships in which
                           CPTCHF-II has Limited Partnership Interests                              F-15
                  Schedule IV - Mortgage Loans on Real Estate of Operating
                           Partnerships in which CPTCHF-II has Limited
                           Partnership Interests                                                    F-16
                  Notes to Schedule IV - Mortgage Loans on Real Estate of
                           Operating Partnerships in which CPTCHF-II has
                           Limited Partnership Interests                                            F-17

                  All other schedules are omitted because they are not applicable,
                           or the required information is shown in the financial
                           statements or notes thereto.

(b)               Reports on Form 8-K

                  Not applicable

(c)               Exhibits

                  31.1     Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
                           Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

                  31.2     Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
                           Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

                  32.1     Certification Pursuant to 18 U.S.C. Section 1350,
                           as Adopted Pursuant to Section 906 of the
                           Sarbanes-Oxley Act of 2002*

                  32.2     Certification Pursuant to 18 U.S.C. Section 1350,
                           as Adopted Pursuant to Section 906 of the
                           Sarbanes-Oxley Act of 2002*

                  *   Filed herewith

(d)               Financial Statement Schedule

                  Financial Statements of Washington Courts Limited Partnership
                  for the Years Ended December 31, 2000 and 1999.
</Table>



                                       14
<PAGE>
                          INDEPENDENT AUDITORS' REPORT

Partners

Century Pacific Tax Credit Housing Fund - II

We have audited the accompanying balance sheet of Century Pacific Tax Credit
Housing Fund - II as of March 31, 2003 and 2002, and the related statements of
operations, partners' equity (deficit) and cash flows for each of the three
years in the period ended March 31, 2003. 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 of America. Those standards require that we plan and
perform the audits 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 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 Century Pacific Tax Credit
Housing Fund - II as of March 31, 2003 and 2002 and the results of its
operations and its cash flows for each of the three years in the period ended
March 31, 2003, in conformity with accounting principles generally accepted in
the United States of America.

The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 6 to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net capital deficiency that raises substantial doubt about
its ability to continue as a going concern. Management's plans regarding these
matters also are described in Note 6. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules listed under Item 15 are
presented for purposes of complying with the Securities and Exchange
Commission's rules and are not a part of the basic financial statements. These
schedules have been subjected to the auditing procedures applied in our audits
of the basic financial statements and, in our opinion, fairly state in all
material respects the financial data required to be set forth therein in
relation to the basic financial statements taken as a whole.

                                    /s/ RUBIN, BROWN, GORNSTEIN & CO., LLP
St. Louis, Missouri
June 3, 2003





                                      F-1
<PAGE>









                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
                                  BALANCE SHEET



<Table>
<Caption>
                                     ASSETS

                                                                       MARCH 31,
                                                           --------------------------------
                                                              2003                 2002
                                                           -----------          -----------

<S>                                                        <C>                  <C>
Cash                                                       $        --          $        47
Advance to a general partner (Note 3)                              871                  871
Investments in operating partnerships (Note 4)                      --                   --
                                                           -----------          -----------
                                                           $       871          $       918
                                                           ===========          ===========

                   LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

LIABILITIES
   Accounts payable and accrued expenses                   $     5,800          $     4,171
   Due to affiliates (Note 3)                                2,269,095            2,063,149
   Loan payable - affiliate (Note 3)                            40,594               40,594
                                                           -----------          -----------
      TOTAL LIABILITIES                                      2,315,489            2,107,914
                                                           -----------          -----------

COMMITMENTS AND CONTINGENCIES (NOTE 5)                              --                   --
                                                           -----------          -----------

PARTNERS' EQUITY (DEFICIT)
   General partners                                            (72,200)             (70,124)
   Limited partners, $1,000 stated value per unit,
   25,000 units authorized, 5,754 units issued
   and outstanding                                          (2,242,418)          (2,036,872)
                                                           -----------          -----------
      TOTAL PARTNERS' EQUITY (DEFICIT)                      (2,314,618)          (2,106,996)
                                                           -----------          -----------
                                                           $       871          $       918
                                                           ===========          ===========
</Table>


                                      F-2

See the accompanying report letter and notes to financial statements.

<PAGE>



                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
                     STATEMENT OF PARTNERS' EQUITY (DEFICIT)
                FOR THE YEARS ENDED MARCH 31, 2003, 2002 AND 2001


<Table>
<Caption>
                                                     GENERAL               LIMITED
                                                     PARTNERS              PARTNERS                TOTAL
                                                    -----------           -----------           -----------

<S>                                                 <C>                   <C>                   <C>
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2000         $   (61,836)          $(1,216,396)          $(1,278,232)

NET LOSS                                                 (6,197)             (613,483)             (619,680)
                                                    -----------           -----------           -----------

PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2001             (68,033)           (1,829,879)           (1,897,912)

NET LOSS                                                 (2,091)             (206,993)             (209,084)
                                                    -----------           -----------           -----------

PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2002             (70,124)           (2,036,872)           (2,106,996)

NET LOSS                                                 (2,076)             (205,546)             (207,622)
                                                    -----------           -----------           -----------

PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2003         $   (72,200)          $(2,242,418)          $(2,314,618)
                                                    ===========           ===========           ===========

PERCENTAGE INTEREST - MARCH 31, 2003                          1%                   99%                  100%
                                                    ===========           ===========           ===========
</Table>



                                      F-3

See the accompanying report letter and notes to financial statements.

<PAGE>



                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
                             STATEMENT OF OPERATIONS



<Table>
<Caption>
                                                                    FOR THE YEARS ENDED MARCH 31,
                                                           -----------------------------------------------
                                                              2003               2002               2001
                                                           ---------          ---------          ---------
<S>                                                        <C>                <C>                <C>
REVENUES
  Transfer fees                                            $      --          $      --          $     500

EXPENSES

  Partnership management fee - affiliate (Note 3)            162,091            159,321            150,049
  Allocated overhead expenses - affiliate (Note 3)            37,600             37,600             37,600
  Other general and administrative expenses                    7,931             12,163              2,225
                                                           ---------          ---------          ---------
     TOTAL EXPENSES                                          207,622            209,084            189,874
                                                           ---------          ---------          ---------

LOSS BEFORE EQUITY IN NET LOSSES OF
  OPERATING PARTNERSHIPS                                    (207,622)          (209,084)          (189,374)

EQUITY IN NET LOSSES OF OPERATING
  PARTNERSHIPS (NOTE 4)                                           --                 --           (430,306)
                                                           ---------          ---------          ---------

NET LOSS                                                   $(207,622)         $(209,084)         $(619,680)
                                                           =========          =========          =========

ALLOCATION OF NET LOSS
  General partners                                         $  (2,076)         $  (2,091)         $  (6,197)
  Limited partners                                          (205,546)          (206,993)          (613,483)
                                                           ---------          ---------          ---------
                                                           $(207,622)         $(209,084)         $(619,680)
                                                           =========          =========          =========

NET LOSS PER UNIT OF LIMITED PARTNERSHIP
  INTEREST                                                 $     (36)         $     (36)         $    (108)
                                                           =========          =========          =========

AVERAGE NUMBER OF OUTSTANDING UNITS                            5,754              5,754              5,754
                                                           =========          =========          =========
</Table>



                                      F-4

See the accompanying report letter and notes to financial statements.

<PAGE>
                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
                             STATEMENT OF CASH FLOWS


<Table>
<Caption>
                                                                     FOR THE YEARS ENDED MARCH 31,
                                                            -----------------------------------------------
                                                               2003               2002               2001
                                                            ---------          ---------          ---------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                         <C>                <C>                <C>
  Net loss                                                  $(207,622)         $(209,084)         $(619,680)
  Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
      Equity in net losses of operating partnerships               --                 --            430,306
      Change in assets and liabilities:
        Increase (decrease) in accounts payable
          and accrued expenses                                  1,629             (1,629)              (880)
        Increase in due to affiliates                         205,946            208,198            190,440
                                                            ---------          ---------          ---------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES               (47)            (2,515)               186
                                                            ---------          ---------          ---------

NET INCREASE (DECREASE) IN CASH                                   (47)            (2,515)               186

CASH - BEGINNING OF YEAR                                           47              2,562              2,376
                                                            ---------          ---------          ---------

CASH - END OF YEAR                                          $      --          $      47          $   2,562
                                                            =========          =========          =========
</Table>



                                      F-5

See the accompanying report letter and notes to financial statements.

<PAGE>

















                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II

                          NOTES TO FINANCIAL STATEMENTS
                          MARCH 31, 2003, 2002 AND 2001

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         BASIS OF ACCOUNTING

         The Partnership maintains its financial records on the tax basis.
         Memorandum entries, while not recorded in the records of the
         Partnership, have been made in order to prepare the financial
         statements in accordance with accounting principles generally accepted
         in the United States of America.

         On August 7, 1991, management of the Partnership changed from a
         calendar year end to a fiscal year end of March 31 for financial
         reporting purposes. Accordingly, the Partnership's quarterly periods
         end June 30, September 30 and December 31. The Operating Partnerships,
         for financial reporting purposes, have a calendar year. The
         Partnership, as well as the Operating Partnerships, have a calendar
         year for income tax purposes.

         ESTIMATES AND ASSUMPTIONS

         The preparation of financial statements in conformity with accounting
         principles generally accepted in the United States of America requires
         management to make estimates and assumptions that affect the reported
         amounts of assets and liabilities and disclosure of contingent assets
         and liabilities at the date of the financial statements and the
         reported amounts of revenues and expenses during the reported period.
         Actual results could differ from those estimates.

         INVESTMENTS IN OPERATING PARTNERSHIPS

         The Partnership uses the equity method to account for its investments
         in the Operating Partnerships (Note 4). Under the equity method of
         accounting, the investments are carried at cost and adjusted for the
         Partnership's share of the Operating Partnerships' results of
         operations and by cash distributions received. Equity in the loss of
         each Operating Partnership allocated to the Partnership is not
         recognized to the extent that the investment balance would become
         negative.

         SYNDICATION COSTS

         Public offering costs have been recorded as a direct reduction to the
         capital accounts of the Limited Partners.



See the accompanying report letter    F-6

<PAGE>



CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)



         INCOME TAXES

         No provision has been made for income taxes in the accompanying
         financial statements since such taxes and/or the recapture of the
         Low-Income Housing Tax Credit benefits received, if any, are the
         liability of the individual partners. The Partnership uses the accrual
         method of accounting for tax purposes.

         NET LOSS PER UNIT OF LIMITED PARTNERSHIP INTEREST

         Net loss per unit of limited partnership interest is calculated based
         upon the weighted average number of units of limited partnership
         interest (units) outstanding.

2.       OPERATIONS

         Century Pacific Tax Credit Housing Fund-II, a California limited
         partnership, (the Partnership or CPTCHF-II), was formed on September 2,
         1988 for the purpose of raising capital by offering and selling limited
         partnership interests and then acquiring limited partnership interests
         in partnerships (the Operating Partnerships) owning and operating
         existing residential apartment rental properties (the Properties).

         The general partners of the Partnership are Century Pacific Capital II
         Corporation, a California corporation (CPII), and Irwin Jay Deutch, an
         individual (collectively, the general partners). The general partners
         and affiliates of the general partners (the general partners and
         affiliates) have interests in the Partnership and receive compensation
         from the Partnership and the Operating Partnerships (Note 3).

         The Properties qualify for the Low-Income Housing Tax Credit
         established by Section 42 of the Tax Reform Act of 1986 (the Low-Income
         Housing Tax Credit). These properties are leveraged low-income
         multifamily residential complexes and receive one or more forms of
         assistance from federal, state or local governments, or agencies (the
         Government Agencies).

         In September 1988, the Partnership began raising capital from sales of
         limited partnership interests, at $1,000 per unit, to limited partners.
         The Partnership authorized the issuance of a maximum of 25,000
         Partnership Units of which 5,754 were subscribed and issued. The
         limited partnership interest offering closed as of December 31, 1989.

         As of March 31, 2003, the Partnership has acquired limited partnership
         interests of 90% in Washington Courts Limited Partnership and 60% in
         Laurel-Clayton Limited Partnership, two existing Operating Partnerships
         which own apartment rental properties.



See the accompanying report letter.   F-7


<PAGE>


CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)



         The Partnership is currently experiencing a liquidity problem as the
         Partnership's Operating Partnerships have not achieved operating
         results required to provide the Partnership with sufficient cash
         distributions to fund the Partnership's administrative costs. As a
         result of the foregoing, the Partnership has been dependent upon its
         affiliates and the general partners for continued financial support to
         meet its expenses. Though there can be no assurance, management
         believes that affiliates and/or the general partners, though not
         required to do so, will continue to fund operations of the Partnership
         and defer receipt of payment on management fees and allocated overhead
         expenses. Unpaid management fees and allocated overhead expenses will
         accrue for payment in future operating years.

3.       TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES OF THE
         GENERAL PARTNERS

         Century Pacific Placement Corporation (CPPC), an affiliate of the
         general partners, served as the broker-dealer-manager for sales of the
         limited partnership interests in the Partnership. Century Pacific
         Realty Corporation (CPRC), an affiliate of CPII, is a general partner
         in each of the Operating Partnerships.

         The general partners have an aggregate one percent interest in the
         Partnership. CPRC has a one-half percent interest in each of the
         Operating Partnerships.

         The general partners and affiliates receive compensation and
         reimbursement of expenses from the Partnership, as set forth in the
         limited partnership agreement, for their services in managing the
         Partnership and its business. Pursuant to the partnership agreement,
         the Partnership is required to pay CPII an annual management fee for
         its services in connection with the management of the affairs of the
         Partnership. The annual management fee is equal to .5% of invested
         assets (as defined by the partnership agreement). The general partners
         and affiliates also receive compensation and reimbursement of expenses
         from the Operating Partnerships. This compensation and reimbursement
         includes services provided to the Partnership during its offering
         stage, acquisition stage and operational stage.



See the accompanying report letter.   F-8


<PAGE>
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)



         The general partners and affiliates earned the following fees for
         services provided to the Partnership and were entitled to reimbursement
         for costs incurred by the general partners and affiliates on behalf of
         the Partnership and the Operating Partnerships for the years ended
         March 31, 2003, 2002 and 2001 as follows:
<Table>
<Caption>
                                                       2003           2002           2001
                                                     --------       --------       --------
  Fees and reimbursement from the Partnership:
<S>                                                  <C>            <C>            <C>
    Partnership management fee (CPII)                $162,091       $159,321       $150,049
    Reimbursement for overhead allocated from
      Century Pacific Equity Corporation
      (CPEC)                                           37,600         37,600         37,600
                                                     --------       --------       --------
                                                     $199,691       $196,921       $187,649
                                                     ========       ========       ========
</Table>


         At March 31, 2003 and 2002, non-interest bearing amounts due to
         affiliates consist of fees and certain general and administrative costs
         payable by the Partnership to the general partners and affiliates
         totaling $1,695,781 and $1,533,690, respectively.

         At March 31, 2003 and 2002, CPII owed the Partnership for an unsecured,
         noninterest bearing advance of $871.

         At March 31, 2003 and 2002, CPRC was owed $40,594 for a noninterest
         bearing, demand, cash advance to the Partnership.

         As of March 31, 2003 and 2002, CPII was owed $568,254 and $529,399,
         respectively, for a noninterest bearing, demand cash advance made to
         the Partnership.

         The general partners may advance funds to the Partnership to fund
         operating deficits, but are not obligated to do so. Such advances shall
         be evidenced by a promissory note of a term no more than 12 months in
         length and at a rate of interest no lower than the prime rate. All such
         loans shall be repaid prior to any distributions of net cash. At March
         31, 2003 and 2002, the Partnership had no outstanding advances due to
         the general partners.

4.       INVESTMENTS IN OPERATING PARTNERSHIPS

         At March 31, 2003 and 2002, the Partnership owned limited partnership
         interests in two Operating Partnerships, each of which has invested in
         a Property.



See the accompanying report letter.   F-9

<PAGE>


CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)



         Investments in Operating Partnerships consist of the following:

<Table>
<Caption>
                                                           2003                2002
                                                       -----------          -----------

<S>                                                    <C>                  <C>
Cash contributions to Operating Partnerships
   to fund purchase of properties and
   acquisition and organization costs                  $ 4,536,020          $ 4,536,020

Equity in net losses of Operating Partnerships          (4,536,020)          (4,536,020)
                                                       -----------          -----------

                                                       $        --          $        --
                                                       ===========          ===========
</Table>


         The names and locations of the Properties in which the Operating
         Partnerships hold beneficial interests are as follows:

<Table>
<Caption>
                          NAME OF                                         NAME AND
                   OPERATING PARTNERSHIP                            LOCATION OF PROPERTY
                   ---------------------                            --------------------
<S>        <C>                                                      <C>
           Washington Courts Limited Partnership                      Washington Courts
                                                                     Chicago, Illinois

             Laurel-Clayton Limited Partnership                        Plumley Village
                                                                    Boston, Massachusetts

</Table>


         A summarized combined balance sheet as of December 31, 2002 and 2001
         and statements of operations of the aforementioned Operating
         Partnerships for the years then ended follows:

<Table>
<Caption>
                                    COMBINED BALANCE SHEET
                                            ASSETS

                                     2002                2001
                                 -----------         -----------

<S>                              <C>                 <C>
Cash                             $   700,907         $   284,662
Reserve for replacements             940,464             835,714
Land and buildings                17,940,488          18,502,814
Other assets                       1,346,977           1,254,709
                                 -----------         -----------

                                 $20,928,836         $20,877,899
                                 ===========         ===========
</Table>



See the accompanying report letter.   F-10
<PAGE>
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)



<Table>
<Caption>

                          LIABILITIES AND PARTNERS' EQUITY (DEFICIT)


                                       2002                  2001
                                   ------------          ------------

<S>                                <C>                   <C>
Notes payable                      $ 26,008,201          $ 25,641,152
Other liabilities                     1,481,300             1,333,356
                                   ------------          ------------
                                     27,489,501            26,974,508
Partners' equity (deficit)           (6,560,665)           (6,096,609)
                                   ------------          ------------

                                   $ 20,928,836          $ 20,877,899
                                   ============          ============
</Table>


<Table>
<Caption>

                               COMBINED STATEMENT OF OPERATIONS


                                                           2002                 2001
                                                       -----------          -----------

<S>                                                    <C>                  <C>
REVENUES
   Rental income                                       $ 5,491,368          $ 5,318,227
   Other income                                            368,276              313,273
                                                       -----------          -----------
         TOTAL REVENUES                                  5,859,644            5,631,500
                                                       -----------          -----------

EXPENSES
   Utilities                                               981,955              906,917
   Repairs and maintenance                               1,014,607            1,181,914
   Management fees                                         273,429              309,239
   Other operating expenses                              2,242,540            1,566,096
   Interest                                                676,922            1,324,658
   Depreciation and amortization                         1,134,247            1,078,278
                                                       -----------          -----------
         TOTAL EXPENSES                                  6,323,700            6,367,102
                                                       -----------          -----------

NET LOSS                                               $  (464,056)         $  (735,602)
                                                       ===========          ===========

ALLOCATION OF LOSS
   General partners and other limited partners         $   (69,459)         $  (129,299)
   CPTCHF-II                                              (394,597)            (606,303)
                                                       -----------          -----------
                                                       $  (464,056)         $  (735,602)
                                                       ===========          ===========
</Table>


5.       COMMITMENTS AND CONTINGENCIES

         The Federal Housing Administration (FHA) and the Department of Housing
         and Urban Development (HUD) exercise control over the projects through
         provisions of Regulatory Agreements (the Agreements). The Agreements
         restrict the Projects, without prior written approval from HUD, from
         encumbering, acquiring, altering or disposing of land, buildings and
         equipment; using the Properties for any purpose other than the use
         originally intended; engaging in any other business or activity; and
         paying distributions to partners, compensation to officers or
         directors, or for any purpose other than reasonable operating expenses.
         The Agreements also stipulate that FHA and HUD shall control the rental
         rates, rate of return on investment and method of operation.



See the accompanying report letter.   F-11
<PAGE>


CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)


         In addition, the Agreements require the Properties to make cash
         deposits on a monthly basis into a reserve fund for replacements. The
         respective mortgagees are the designated custodians of the reserve
         funds and withdrawals can only be made with HUD approval.

6.       GOING CONCERN

         The accompanying financial statements have been prepared in conformity
         with accounting principles generally accepted in the United States of
         America, which contemplate continuation of the Partnership as a going
         concern. However, the Partnership's Operating Partnerships have not
         achieved the operating results required to provide the Partnership with
         sufficient cash distributions to fund the Partnership's administrative
         costs. Additionally, the Partnership has incurred allocated losses from
         both of its Operating Partnerships to the extent of the Partnership's
         cash contributions. As a result of the foregoing, the Partnership is
         dependent upon the general partners and affiliates for continued
         financial support.

         Management maintains that the general partners and affiliates, though
         not required to do so, will continue to fund operations by deferring
         payment to related parties of allocated overhead expenses, and by
         funding any Partnership operating costs. Unpaid allocated overhead
         expenses will accrue and become payable when the Operating Partnerships
         generate sufficient cash distributions to the Partnership to cover such
         expenses. The financial statements do not include any adjustments that
         might result from the outcome of this uncertainty.




See the accompanying report letter.   F-12
<PAGE>


CENTURY PACIFIC TAX CREDIT HOUSING FUND-II


Notes To Financial Statements (Continued)


7.       FAIR VALUE OF FINANCIAL INSTRUMENTS

         The following methods and assumptions were used to estimate the fair
         value of each class of financial instruments:

         CASH

         The carrying amount approximates fair value because of the short
         maturity of those instruments.

         RELATED PARTY RECEIVABLES

         The carrying amount approximates fair value because of the short-term
         nature of the receivables.

         ADVANCE FROM AFFILIATE

         The carrying amount approximates fair value because of the short-term
         nature of the advance.

         PAYABLE TO RELATED PARTIES

         The carrying amount approximates fair value because the terms of the
         payable are similar to currently available terms and conditions for
         similar instruments.



See the accompanying report letter.   F-13
<PAGE>
                                                                    Schedule III
                                                                     Page 1 Of 1


                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
              REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING
        PARTNERSHIPS IN WHICH CPTCHF-II HAS LIMITED PARTNERSHIP INTERESTS
                                DECEMBER 31, 2002

 <Table>
 <Caption>
                                                                         COST CAPITALIZED
                                                 INITIAL COST TO            SUBSEQUENT               GROSS AMOUNT AT WHICH
                                               OPERATING PARTNERSHIP      TO ACQUISITION            CARRIED AT CLOSE OF YEAR
                                             -------------------------  -------------------  -------------------------------------
                                                            BUILDINGS           BUILDINGS                  BUILDINGS
                               ENCUMBRANCES                   AND                  AND                        AND
 DESCRIPTION                            (2)      LAND     IMPROVEMENTS  LAND   IMPROVEMENTS     LAND      IMPROVEMENTS     TOTAL
                               ------------  -----------  ------------  -----  ------------  -----------  ------------  ----------

Washington Courts Apartments
   Chicago, Illinois
   103 Residential Units      $ 4,877,892   $    75,300   $ 1,720,666   $--   $ 5,479,295   $    75,300   $ 7,199,961   $ 7,275,261

Plumley Village Apartments
   Boston, Massachusetts
   430 Residential Units       20,962,819     1,100,000    17,383,785    --     6,659,159     1,100,000    24,042,944    25,142,944
                              -----------   -----------   -----------   ---   -----------   -----------   -----------   -----------

                              $25,840,711   $ 1,175,300   $19,104,451   $--   $12,138,454   $ 1,175,300   $31,242,905   $32,418,205
                              ===========   ===========   ===========   ===   ===========   ===========   ===========   ===========


                                                                                                    LIFE UPON
                                      ACCUMULATED                                                     WHICH
                                     DEPRECIATION                                                  DEPRECIATION
                                     ------------                                                   IN LATEST
                                       BUILDINGS                                                      INCOME
                                          AND               DATE OF               DATE              STATEMENT
 DESCRIPTION                         IMPROVEMENTS        CONSTRUCTION           ACQUIRED            IS COMPUTED
                                     ------------        ------------         ------------         ------------

<S>                                  <C>                 <C>                  <C>                  <C>
Washington Courts Apartments
   Chicago, Illinois
   103 Residential Units             $ 3,431,867                 1991                 1/89         27.5 years

Plumley Village Apartments
   Boston, Massachusetts
   430 Residential Units              11,045,850                 1973                 9/89         27.5 years
                                     -----------         ------------         ------------         ----------

                                     $14,477,717
                                     ===========         ============         ============         ==========
</Table>


                              See notes to schedule
                                      F-14
<PAGE>
                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                 DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH
                   CPTCHF-II HAS LIMITED PARTNERSHIP INTERESTS
                                DECEMBER 31, 2002

NOTE 1 - DESCRIPTION OF PROPERTIES

   The Properties held by the Operating Partnerships in which CPTCHF-II has
   invested are housing projects, primarily for families and elderly or
   handicapped individuals of low and moderate income.

NOTE 2 - SCHEDULE OF ENCUMBRANCES

 <Table>
 <Caption>

 OPERATING PARTNERSHIP         MORTGAGE            RESIDUAL            PURCHASE              OTHER
 NAME AND PROPERTY NAME         NOTES                NOTE                NOTE                NOTES               TOTAL
                              -----------         -----------         -----------         -----------         -----------

<S>                           <C>                 <C>                 <C>                 <C>                 <C>
Washington Courts L/P
Washington Courts             $ 4,877,892         $        --         $        --         $        --         $ 4,877,892

Laurel-Clayton L/P
Plumley Village                 6,187,198           5,391,987           8,977,739             405,895          20,962,819
                              -----------         -----------         -----------         -----------         -----------

                              $11,065,090         $ 5,391,987         $ 8,977,739         $   405,895         $25,840,711
                              ===========         ===========         ===========         ===========         ===========
</Table>


NOTE 3 - RECONCILIATION OF REAL ESTATE AND ACCUMULATED
DEPRECIATION

<Table>
<Caption>

                                                         ACCUMULATED
                                        COST             DEPRECIATION
                                     -----------         ------------

<S>                                  <C>                 <C>
Balance at December 31, 1999         $29,248,745         $11,263,403
   Additions during year:
      Depreciation                            --           1,037,709
      Improvements                       761,062                  --

Balance at December 31, 2000          30,009,807          12,301,112
   Additions during year:
      Depreciation                            --           1,060,317
      Improvements                     1,854,436                  --

Balance at December 31, 2001          31,864,243          13,361,429
   Additions during year:
      Depreciation                            --           1,116,288
      Improvements                       553,962                  --
                                     -----------         -----------

                                     $32,418,205         $14,477,717
                                     ===========         ===========
</Table>


                                      F-15
<PAGE>
                                                                     Schedule IV
                                                                     Page 1 of 1

                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
                   MORTGAGE LOANS ON REAL ESTATE OF OPERATING
                       PARTNERSHIPS IN WHICH CPTCHF-II HAS
                          LIMITED PARTNERSHIP INTERESTS
                                DECEMBER 31, 2002

<Table>
<Caption>
                                                                     MONTHLY
                                                     FINAL         PAYMENTS TO        ORIGINAL             CARRYING
                                     INTEREST       MATURITY     MATURITY (NET OF    FACE AMOUNT          AMOUNT OF
DESCRIPTION (1)                        RATE           DATE         HUD SUBSIDY)      OF MORTGAGE         MORTGAGE (2)
                                     --------       --------     ----------------    -----------         ------------

<S>                                  <C>            <C>          <C>                 <C>                 <C>
First mortgages assumed

   by Operating Partnerships:


Washington Courts Limited

   Partnership

      Washington Courts               9.25%         2031         $    40,841         $ 5,165,400         $ 4,877,892


Laurel-Clayton Limited

   Partnership

      Plumley Village                  8.5%         2012              24,364          10,635,000           6,187,198
                                      ----          ----         -----------         -----------         -----------

Total                                                            $    65,205         $15,800,400         $11,065,090
                                                                 ===========         ===========         ===========
</Table>





                                      F-16
<PAGE>
                   CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
                  NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL
                    ESTATE OF OPERATING PARTNERSHIPS IN WHICH
                   CPTCHF-II HAS LIMITED PARTNERSHIP INTERESTS
                                DECEMBER 31, 2002

NOTE 1 - DESCRIPTION

   Each Operating Partnership has invested in a Property.

   Laurel-Clayton Limited Partnership assumed a mortgage loan obligation from
   the seller of the Property. The mortgage loan obligation is insured by the
   United States Department of Housing and Urban Development and is secured by
   the land and buildings of the Property.

   Washington Courts Limited Partnership has obtained permanent financing in the
   principal amount of $5,165,400 which is insured by the Federal Housing
   Administration. The loan bears interest at 9.25% per annum. The note will be
   amortized over a period of 40 years.

NOTE 2 - RECONCILIATION OF MORTGAGES

<Table>
<Caption>
                                       MORTGAGE            RESIDUAL
                                        LOANS               NOTES
                                     -----------         -----------

<S>                                  <C>                 <C>
Balance at December 31, 1999         $12,248,063         $ 4,890,890
   Additions during year:
      Accrued interest                        --             224,000
   Deductions during year:
      Payments                           361,192                  --
                                     -----------         -----------

Balance at December 31, 2000          11,886,871           5,114,890
   Additions during year:
      Accrued interest                        --             128,086
   Deductions during year:
      Payments                           393,368                  --
                                     -----------         -----------

Balance at December 31, 2001          11,493,503           5,242,976
   Additions during year:
      Accrued interest                        --             149,011
   Deductions during year:
      Payments                           428,413                  --
                                     -----------         -----------

                                     $11,065,090         $ 5,391,987
                                     ===========         ===========
</Table>




                                      F-17
<PAGE>
S2100-020                INDEPENDENT AUDITORS' REPORT


To The Partners
Washington Courts Limited Partnership


We have audited the accompanying balance sheet of Washington Courts Limited
Partnership, Project No. 071-35593, a limited partnership, as of December 31,
2000 and 1999, and the related statements of profit and loss, partners'
equity (deficit) and cash flows for the years then ended.  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 generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States.  Those standards require that we plan and
perform the audits 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 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 Washington Courts Limited
Partnership as of December 31, 2000 and 1999, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.


                                    /s/ RUBIN, BROWN, GORNSTEIN & CO., LLP


March 2, 2001


------------------------------------------------------------------------------
                                                                        Page 1

<PAGE>


                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                                  BALANCE SHEET
                                   PAGE 1 OF 2



<TABLE>
<CAPTION>
                                          ASSETS

                                                                      DECEMBER 31,
                                                            -------------------------------
                                                                 2000              1999
                                                            -------------------------------
<S>                                                          <C>               <C>
CURRENT ASSETS
   1120   Cash - operations                                   $  175,451        $   23,640
   1190   Miscellaneous current assets                               100               100
   1200   Miscellaneous prepaid expenses                          47,779            33,103
-------------------------------------------------------------------------------------------
   1100T     TOTAL CURRENT ASSETS                                223,330            56,843
-------------------------------------------------------------------------------------------

DEPOSITS HELD IN TRUST - FUNDED
   1191   Tenant deposits held in trust                           15,385            12,934
-------------------------------------------------------------------------------------------

RESTRICTED DEPOSITS AND FUNDED RESERVES
   1310   Escrow deposits                                         36,289            32,640
   1320   Replacement reserve                                     91,874            69,479
-------------------------------------------------------------------------------------------
   1300T     TOTAL DEPOSITS                                      128,163           102,119
-------------------------------------------------------------------------------------------

FIXED ASSETS
   1410   Land                                                    75,300            75,300
   1420   Buildings                                            7,104,391         7,080,053
   1440   Building equipment - portable                           29,985             8,061
   1465   Office furniture and equipment                          65,585            65,585
-------------------------------------------------------------------------------------------
   1400T     Total Fixed Assets                                7,275,261         7,228,999

   1495   Less:  Accumulated depreciation                      2,895,402         2,626,835
-------------------------------------------------------------------------------------------
   1400N     NET FIXED ASSETS                                  4,379,859         4,602,164
-------------------------------------------------------------------------------------------

OTHER ASSETS
   1520   Intangible assets                                      520,837           539,822
-------------------------------------------------------------------------------------------

   1000T     TOTAL ASSETS                                     $5,267,574        $5,313,882
===========================================================================================
</TABLE>


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 2

<PAGE>


                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                                  BALANCE SHEET
                                   PAGE 2 OF 2



<TABLE>
<CAPTION>
                                       LIABILITIES

                                                                      DECEMBER 31,
                                                            -------------------------------
                                                                 2000              1999
                                                            -------------------------------
<S>                                                          <C>               <C>
CURRENT LIABILITIES
   2110   Accounts payable - operations                      $  167,724         $   65,790
   2113   Accounts payable - entity                              68,269             68,269
   2120   Accrued wages payable                                      --              4,916
   2123   Accrued management fee payable                         14,644             14,644
   2131   Accrued interest payable - first mortgage              38,146             38,383
   2150   Accrued property taxes                                 33,593             35,755
   2170   Mortgage payable - first mortgage (short-term)         34,007             31,013
   2190   Miscellaneous current liabilities                     429,061             45,750
   2210   Prepaid revenue                                        66,333                 --
-------------------------------------------------------------------------------------------
   2122T     TOTAL CURRENT LIABILITIES                          851,777            304,520
-------------------------------------------------------------------------------------------

DEPOSIT AND PREPAYMENT LIABILITIES
   2191   Tenant deposits held in trust (contra)                 13,878             12,817
-------------------------------------------------------------------------------------------

LONG-TERM LIABILITIES
   2320   Mortgage payable - first mortgage                   4,914,636          4,948,406
-------------------------------------------------------------------------------------------

   2000T     TOTAL LIABILITIES                                5,780,291          5,265,743

                              PARTNERS' EQUITY (DEFICIT)

   3130   Partners' equity (deficit)                           (512,717)            48,139
-------------------------------------------------------------------------------------------

   2033T     TOTAL LIABILITIES AND PARTNERS' EQUITY
               (DEFICIT)                                     $5,267,574         $5,313,882
===========================================================================================
</TABLE>


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 3



<PAGE>


                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                          STATEMENT OF PROFIT AND LOSS
                      FOR THE YEAR ENDED DECEMBER 31, 2000


<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
      PART 1                  DESCRIPTION OF ACCOUNT                           ACCT. NO.       AMOUNT
---------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                        <C>            <C>          <C>
                   Rent Revenue - Gross Potential                                5120        $331,905
                   --------------------------------------------------------------------------------------------------
                   Tenant Assistance Payments                                    5121        $692,113
                   --------------------------------------------------------------------------------------------------
                   Rent Revenue - Stores and Commercial                          5140        $
                   --------------------------------------------------------------------------------------------------
                   Garage and Parking Spaces                                     5170        $
                   --------------------------------------------------------------------------------------------------
                   Flexible Subsidy Revenue                                      5180        $
       RENT        --------------------------------------------------------------------------------------------------
     REVENUE       Miscellaneous Rent Revenue                                    5190        $
       5100        --------------------------------------------------------------------------------------------------
                   Excess Rent                                                   5191        $
                   --------------------------------------------------------------------------------------------------
                   Rent Revenue/Insurance                                        5192        $
                   --------------------------------------------------------------------------------------------------
                   Special Claims Revenue                                        5193        $
                   --------------------------------------------------------------------------------------------------
                   Retained Excess Income                                        5194        $
                   --------------------------------------------------------------------------------------------------
                     TOTAL RENT REVENUE                                         5100T                     $1,024,018
---------------------------------------------------------------------------------------------------------------------
                   Apartments                                                    5220        $151,553
                   --------------------------------------------------------------------------------------------------
                   Stores and Commercial                                         5240        $
                   --------------------------------------------------------------------------------------------------
                   Rental Concessions                                            5250        $
    VACANCIES      --------------------------------------------------------------------------------------------------
       5200        Garage and Parking Space                                      5270        $
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous                                                 5290        $
                   --------------------------------------------------------------------------------------------------
                     TOTAL VACANCIES                                            5200T                     $  151,553
                   --------------------------------------------------------------------------------------------------
                     NET RENTAL REVENUE Rent Revenue Less Vacancies             5152N                     $  872,465
---------------------------------------------------------------------------------------------------------------------
       5300        Nursing Homes/Assisted Living/Board and Care/
                     Other Elderly Care/Coop/ and Other Revenues                 5300                     $
---------------------------------------------------------------------------------------------------------------------
                   Financial Revenue - Project Operations                        5410        $    114
                   --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Residual Receipts                  5430        $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     REVENUE       Revenue from Investments - Replacement Reserve                5440        $  2,302
       5400        --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Miscellaneous                      5490        $
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL REVENUE                                    5400T                     $    2,416
---------------------------------------------------------------------------------------------------------------------
                   Laundry and Vending Revenue                                   5910        $
                   --------------------------------------------------------------------------------------------------
                   Tenant Charges                                                5920        $  1,250
                   --------------------------------------------------------------------------------------------------
                   Interest Reduction Payments Revenue                           5945        $
      OTHER        --------------------------------------------------------------------------------------------------
     REVENUE       Miscellaneous Revenue  (Schedule)                             5990        $103,735
       5900          --------------------------------------------------------------------------------------------------
                     TOTAL OTHER REVENUE                                        5900T                     $  104,985
                   --------------------------------------------------------------------------------------------------
                     TOTAL REVENUE                                              5000T                     $  979,866
---------------------------------------------------------------------------------------------------------------------
                   Conventions and Meetings                                      6203        $
                   --------------------------------------------------------------------------------------------------
                   Management Consultants                                        6204        $ 17,956
                   --------------------------------------------------------------------------------------------------
                   Advertising and Marketing                                     6210        $
                   --------------------------------------------------------------------------------------------------
                   Other Renting Expenses                                        6250        $  3,494
                   --------------------------------------------------------------------------------------------------
                   Office Salaries                                               6310        $ 10,186
                   --------------------------------------------------------------------------------------------------
                   Office Expenses                                               6311        $ 22,604
                   --------------------------------------------------------------------------------------------------
                   Office or Model Apartment Rent                                6312        $
                   --------------------------------------------------------------------------------------------------
                   Management Fee                                                6320        $ 35,466
  ADMINISTRATIVE   --------------------------------------------------------------------------------------------------
     EXPENSES      Manager or Superintendent Salaries                            6330        $ 17,402
    6200/6300      --------------------------------------------------------------------------------------------------
                   Administrative Rent Free Unit                                 6331        $
                   --------------------------------------------------------------------------------------------------
                   Legal Expense - Project                                       6340        $  1,981
                   --------------------------------------------------------------------------------------------------
                   Audit Expense                                                 6350        $  8,700
                   --------------------------------------------------------------------------------------------------
                   Bookkeeping Fees/Accounting Services                          6351        $  3,971
                   --------------------------------------------------------------------------------------------------
                   Bad Debts                                                     6370        $ 66,664
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Administrative Expenses (Schedule)              6390        $127,143
                   --------------------------------------------------------------------------------------------------
                     TOTAL ADMINISTRATIVE EXPENSES                              6263T                     $  315,567
---------------------------------------------------------------------------------------------------------------------
                   Fuel Oil/Coal                                                 6420        $
                   --------------------------------------------------------------------------------------------------
                   Electricity                                                   6450        $  2,590
    UTILITIES      --------------------------------------------------------------------------------------------------
     EXPENSE       Water                                                         6451        $ 14,252
       6400          --------------------------------------------------------------------------------------------------
                   Gas                                                           6452        $ 99,166
                   --------------------------------------------------------------------------------------------------
                   Sewer                                                         6453        $    167
                   --------------------------------------------------------------------------------------------------
                     TOTAL UTILITIES EXPENSE                                    6400T                     $  116,175
                   --------------------------------------------------------------------------------------------------
                                   TOTAL EXPENSES (CARRY FORWARD TO PAGE 2)     6400T                     $  431,742
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                   Page 1 of 2

--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 4

<PAGE>
<TABLE>
<CAPTION>
Project Name:  Washington Courts Limited Partnership
<S>                <C>                                                        <C>            <C>          <C>
---------------------------------------------------------------------------------------------------------------------
                                                                                BALANCE CARRIED FORWARD   $  431,742
---------------------------------------------------------------------------------------------------------------------
                   Payroll                                                       6510        $ 35,285
                   --------------------------------------------------------------------------------------------------
                   Supplies                                                      6515        $ 85,525
                   --------------------------------------------------------------------------------------------------
                   Contracts                                                     6520        $ 71,264
                   --------------------------------------------------------------------------------------------------
                   Operating and Maintenance Rent Free Unit                      6521        $
                   --------------------------------------------------------------------------------------------------
                   Garbage and Trash Removal                                     6525        $  9,874
    OPERATING      --------------------------------------------------------------------------------------------------
   MAINTENANCE     Security Payroll/Contract                                     6530        $ 33,278
     EXPENSES      --------------------------------------------------------------------------------------------------
       6500        Security Rent Free Unit                                       6531        $
                   --------------------------------------------------------------------------------------------------
                   Heating/Cooling Repairs and Maintenance                       6546        $
                   --------------------------------------------------------------------------------------------------
                   Snow Removal                                                  6548        $
                   --------------------------------------------------------------------------------------------------
                   Vehicle and Maintenance Equipment Operation and Repairs       6570        $  2,345
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Operating and Maintenance Expenses              6590        $  8,668
                   --------------------------------------------------------------------------------------------------
                     TOTAL OPERATING AND MAINTENANCE EXPENSES                   6500T                     $  246,239
---------------------------------------------------------------------------------------------------------------------
                   Real Estate Taxes                                             6710        $ 35,052
                   --------------------------------------------------------------------------------------------------
                   Payroll Taxes (Project's Share)                               6711        $  9,434
                   --------------------------------------------------------------------------------------------------
                   Property and Liability Insurance (Hazard)                     6720        $ 26,908
      TAXES        --------------------------------------------------------------------------------------------------
       AND         Fidelity Bond Insurance                                       6721        $
    INSURANCE      --------------------------------------------------------------------------------------------------
      6700         Workmen's Compensation                                        6722        $  3,694
                   --------------------------------------------------------------------------------------------------
                   Health Insurance and Other Employee Benefits                  6723        $  1,655
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Taxes, Licenses, Permits and Insurance          6790        $  4,837
                   --------------------------------------------------------------------------------------------------
                     TOTAL TAXES AND INSURANCE                                  6700T                     $   81,580
---------------------------------------------------------------------------------------------------------------------
                   Interest on Mortgage Payable                                  6820        $459,914
                   --------------------------------------------------------------------------------------------------
                   Interest on Notes Payable (LongTerm)                          6830        $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     EXPENSES      Interest on Notes Payable (ShortTerm)                         6840        $
       6800        --------------------------------------------------------------------------------------------------
                   Mortgage Insurance Premium/Service Charge                     6850        $ 26,244
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Financial Expenses                              6890        $  7,453
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL EXPENSES                                   6800T                     $  493,611
---------------------------------------------------------------------------------------------------------------------
       6900        Nursing Homes/ Assisted Living/ Board and Care/
                     Other Elderly Care Expenses                                 6900                     $
---------------------------------------------------------------------------------------------------------------------
                     TOTAL COST OF OPERATIONS BEFORE
                       DEPRECIATION AND AMORTIZATION                            6000T                     $1,253,172
                   --------------------------------------------------------------------------------------------------
                     PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION         5060T                     $ (273,306)
                   --------------------------------------------------------------------------------------------------
                   Depreciation Expense                                          6600        $268,566
                   --------------------------------------------------------------------------------------------------
                   Amortization Expense                                          6610        $ 18,984
                   --------------------------------------------------------------------------------------------------
                     TOTAL DEPRECIATION AND AMORTIZATION                                                  $  287,550
                   --------------------------------------------------------------------------------------------------
                     OPERATING PROFIT OR (LOSS)                                 5060N                     $ (560,856)
---------------------------------------------------------------------------------------------------------------------
                   Officer's Salaries                                            7110        $
                   --------------------------------------------------------------------------------------------------
                   Legal Expenses                                                7120        $
                   --------------------------------------------------------------------------------------------------
                   Federal, State, and Other Income Taxes                        7130        $
                   --------------------------------------------------------------------------------------------------
   CORPORATE OR    Interest Income                                               7140        $
    MORTGAGOR      --------------------------------------------------------------------------------------------------
      ENTITY       Interest on Notes Payable                                     7141        $
     EXPENSES      --------------------------------------------------------------------------------------------------
       7100        Interest on Mortgage Payable                                  7142        $
                   --------------------------------------------------------------------------------------------------
                   Other Expenses (Asset supervisory fees)                       7190        $
                   --------------------------------------------------------------------------------------------------
                     NET ENTITY EXPENSES                                        7100T                     $        0
                   --------------------------------------------------------------------------------------------------
                     PROFIT OR LOSS (NET INCOME OR LOSS)                         3250                     $ (560,856)
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS.  If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 6890 and 7190) exceed the Account Groupings by 10% or
more, attach a separate schedule describing or explaining the miscellaneous income or expense.
---------------------------------------------------------------------------------------------------------------------
PART II
<S>                                                                                                       <C>
---------------------------------------------------------------------------------------------------------------------
 1.  Total mortgage principal payments required during the audit year (12 monthly payments).
     This applies to all direct loans and HUD-held and fully insured mortgages.
     Any HUD approved second mortgages should be included in the figures.
     (Account S1000-010)                                                                                  $   30,776
---------------------------------------------------------------------------------------------------------------------
 2.  Total of 12 monthly deposits in the audit year into the Replacement Reserve account,
     as required by the Regulatory Agreement even if payments may be temporarily
     suspended or reduced.  (Account S1000-020)                                                           $   20,093
---------------------------------------------------------------------------------------------------------------------
 3.  Replacement Reserve or Residual Receipts releases which are included as expense
     items on this Profit and Loss Statement.  (Account S1000-030)                                        $       --
---------------------------------------------------------------------------------------------------------------------
 4.  Project Improvement Reserve Releases under the Flexible Subsidy Program that
     are included as expense items on this Profit and Loss Statement.
     (Account S1000-040)                                                                                  $       --
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                   Page 2 of 2


 -------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 5
<PAGE>



                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                          STATEMENT OF PROFIT AND LOSS
                      FOR THE YEAR ENDED DECEMBER 31, 1999


<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
      PART 1                  DESCRIPTION OF ACCOUNT                           ACCT. NO.       AMOUNT
---------------------------------------------------------------------------------------------------------------------
<C>                <S>                                                           <C>         <C>          <C>
                   Rent Revenue - Gross Potential                                5120        $227,522
                   --------------------------------------------------------------------------------------------------
                   Tenant Assistance Payments                                    5121        $792,564
                   --------------------------------------------------------------------------------------------------
                   Rent Revenue - Stores and Commercial                          5140        $
                   --------------------------------------------------------------------------------------------------
                   Garage and Parking Spaces                                     5170        $
                   --------------------------------------------------------------------------------------------------
                   Flexible Subsidy Revenue                                      5180        $
       RENT        --------------------------------------------------------------------------------------------------
     REVENUE       Miscellaneous Rent Revenue                                    5190        $
       5100        --------------------------------------------------------------------------------------------------
                   Excess Rent                                                   5191        $
                   --------------------------------------------------------------------------------------------------
                   Rent Revenue/Insurance                                        5192        $
                   --------------------------------------------------------------------------------------------------
                   Special Claims Revenue                                        5193        $
                   --------------------------------------------------------------------------------------------------
                   Retained Excess Income                                        5194        $
                   --------------------------------------------------------------------------------------------------
                     TOTAL RENT REVENUE                                         5100T                     $1,020,086
---------------------------------------------------------------------------------------------------------------------
                   Apartments                                                    5220        $ 52,881
                   --------------------------------------------------------------------------------------------------
                   Stores and Commercial                                         5240        $
                   --------------------------------------------------------------------------------------------------
                   Rental Concessions                                            5250        $
    VACANCIES      --------------------------------------------------------------------------------------------------
       5200        Garage and Parking Space                                      5270        $
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous                                                 5290        $
                   --------------------------------------------------------------------------------------------------
                     TOTAL VACANCIES                                            5200T                     $   52,881
                   --------------------------------------------------------------------------------------------------
                     NET RENTAL REVENUE Rent Revenue Less Vacancies             5152N                     $  967,205
---------------------------------------------------------------------------------------------------------------------
       5300        Nursing Homes/Assisted Living/Board and Care/
                     Other Elderly Care/Coop/ and Other Revenues                 5300                     $
---------------------------------------------------------------------------------------------------------------------
                   Financial Revenue - Project Operations                        5410        $    309
                   --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Residual Receipts                  5430        $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     REVENUE       Revenue from Investments - Replacement Reserve                5440        $  1,474
       5400        --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Miscellaneous                      5490        $
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL REVENUE                                    5400T                     $    1,783
---------------------------------------------------------------------------------------------------------------------
                   Laundry and Vending Revenue                                   5910        $  6,556
                   --------------------------------------------------------------------------------------------------
                   Tenant Charges                                                5920        $
                   --------------------------------------------------------------------------------------------------
                   Interest Reduction Payments Revenue                           5945        $
      OTHER        --------------------------------------------------------------------------------------------------
     REVENUE       Miscellaneous Revenue (Schedule)                              5990        $ 36,697
       5900        --------------------------------------------------------------------------------------------------
                     TOTAL OTHER REVENUE                                        5900T                     $   43,253
                   --------------------------------------------------------------------------------------------------
                     TOTAL REVENUE                                              5000T                     $1,012,241
---------------------------------------------------------------------------------------------------------------------
                   Conventions and Meetings                                      6203        $
                   --------------------------------------------------------------------------------------------------
                   Management Consultants                                        6204        $  3,338
                   --------------------------------------------------------------------------------------------------
                   Advertising and Marketing                                     6210        $    726
                   --------------------------------------------------------------------------------------------------
                   Other Renting Expenses                                        6250        $  4,871
                   --------------------------------------------------------------------------------------------------
                   Office Salaries                                               6310        $ 23,427
                   --------------------------------------------------------------------------------------------------
                   Office Expenses                                               6311        $ 13,718
                   --------------------------------------------------------------------------------------------------
                   Office or Model Apartment Rent                                6312        $
                   --------------------------------------------------------------------------------------------------
                   Management Fee                                                6320        $ 46,800
  ADMINISTRATIVE   --------------------------------------------------------------------------------------------------
     EXPENSES      Manager or Superintendent Salaries                            6330        $ 12,476
    6200/6300      --------------------------------------------------------------------------------------------------
                   Administrative Rent Free Unit                                 6331        $
                   --------------------------------------------------------------------------------------------------
                   Legal Expense - Project                                       6340        $ 16,840
                   --------------------------------------------------------------------------------------------------
                   Audit Expense                                                 6350        $  7,200
                   --------------------------------------------------------------------------------------------------
                   Bookkeeping Fees/Accounting Services                          6351        $  9,117
                   --------------------------------------------------------------------------------------------------
                   Bad Debts                                                     6370        $
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Administrative Expenses (Schedule)              6390        $ 21,320
                   --------------------------------------------------------------------------------------------------
                     TOTAL ADMINISTRATIVE EXPENSES                              6263T                     $  159,833
---------------------------------------------------------------------------------------------------------------------
                   Fuel Oil/Coal                                                 6420        $
                   --------------------------------------------------------------------------------------------------
                   Electricity                                                   6450        $  7,200
    UTILITIES      --------------------------------------------------------------------------------------------------
     EXPENSE       Water                                                         6451        $ 12,508
       6400        --------------------------------------------------------------------------------------------------
                   Gas                                                           6452        $ 53,307
                   --------------------------------------------------------------------------------------------------
                   Sewer                                                         6453        $  9,462
                   --------------------------------------------------------------------------------------------------
                     TOTAL UTILITIES EXPENSE                                    6400T                     $   82,477
                   --------------------------------------------------------------------------------------------------
                                   TOTAL EXPENSES (CARRY FORWARD TO PAGE 2)                               $  242,310
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                   Page 1 of 2


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 6

<PAGE>
<TABLE>
<CAPTION>
Project Name:  Washington Courts Limited Partnership
---------------------------------------------------------------------------------------------------------------------
<C>                <S>                                                           <C>         <C>          <C>
                                                                                BALANCE CARRIED FORWARD   $  242,310
---------------------------------------------------------------------------------------------------------------------
                   Payroll                                                       6510        $ 61,725
                   --------------------------------------------------------------------------------------------------
                   Supplies                                                      6515        $ 58,418
                   --------------------------------------------------------------------------------------------------
                   Contracts                                                     6520        $ 51,130
                   --------------------------------------------------------------------------------------------------
                   Operating and Maintenance Rent Free Unit                      6521        $
                   --------------------------------------------------------------------------------------------------
                   Garbage and Trash Removal                                     6525        $ 22,094
    OPERATING      --------------------------------------------------------------------------------------------------
   MAINTENANCE     Security Payroll/Contract                                     6530        $  7,543
     EXPENSES      --------------------------------------------------------------------------------------------------
       6500        Security Rent Free Unit                                       6531        $
                   --------------------------------------------------------------------------------------------------
                   Heating/Cooling Repairs and Maintenance                       6546        $  3,585
                   --------------------------------------------------------------------------------------------------
                   Snow Removal                                                  6548        $
                   --------------------------------------------------------------------------------------------------
                   Vehicle and Maintenance Equipment Operation and Repairs       6570        $  1,371
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Operating and Maintenance Expenses              6590        $  9,099
                   --------------------------------------------------------------------------------------------------
                     TOTAL OPERATING AND MAINTENANCE EXPENSES                   6500T                     $  214,965
---------------------------------------------------------------------------------------------------------------------
                   Real Estate Taxes                                             6710        $ 36,382
                   --------------------------------------------------------------------------------------------------
                   Payroll Taxes (Project's Share)                               6711        $  8,118
                   --------------------------------------------------------------------------------------------------
                   Property and Liability Insurance (Hazard)                     6720        $ 15,152
      TAXES        --------------------------------------------------------------------------------------------------
       AND         Fidelity Bond Insurance                                       6721        $
    INSURANCE      --------------------------------------------------------------------------------------------------
      6700         Workmen's Compensation                                        6722        $  2,646
                   --------------------------------------------------------------------------------------------------
                   Health Insurance and Other Employee Benefits                  6723        $ 12,621
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Taxes, Licenses, Permits and Insurance          6790        $  2,555
                   --------------------------------------------------------------------------------------------------
                     TOTAL TAXES AND INSURANCE                                  6700T                     $   77,474
---------------------------------------------------------------------------------------------------------------------
                   Interest on Mortgage Payable                                  6820        $461,805
                   --------------------------------------------------------------------------------------------------
                   Interest on Notes Payable (LongTerm)                          6830        $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     EXPENSES      Interest on Notes Payable (ShortTerm)                         6840        $
       6800        --------------------------------------------------------------------------------------------------
                   Mortgage Insurance Premium/Service Charge                     6850        $ 22,946
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Financial Expenses                              6890        $  2,620
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL EXPENSES                                   6800T                     $  487,371
---------------------------------------------------------------------------------------------------------------------
       6900        Nursing Homes/ Assisted Living/ Board and Care/
                     Other Elderly Care Expenses                                 6900                     $
---------------------------------------------------------------------------------------------------------------------
                     TOTAL COST OF OPERATIONS BEFORE
                       DEPRECIATION AND AMORTIZATION                            6000T                     $1,022,120
                   --------------------------------------------------------------------------------------------------
                     PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION         5060T                     $   (9,879)
                   --------------------------------------------------------------------------------------------------
                   Depreciation Expense                                          6600        $267,437
                   --------------------------------------------------------------------------------------------------
                   Amortization Expense                                          6610        $ 18,984
                   --------------------------------------------------------------------------------------------------
                     TOTAL DEPRECIATION AND AMORTIZATION                                                  $  286,421
                   --------------------------------------------------------------------------------------------------
                     OPERATING PROFIT OR (LOSS)                                 5060N                     $ (296,300)
---------------------------------------------------------------------------------------------------------------------
                   Officer's Salaries                                            7110        $
                   --------------------------------------------------------------------------------------------------
                   Legal Expenses                                                7120        $
                   --------------------------------------------------------------------------------------------------
                   Federal, State, and Other Income Taxes                        7130        $
                   --------------------------------------------------------------------------------------------------
   CORPORATE OR    Interest Income                                               7140        $
    MORTGAGOR      --------------------------------------------------------------------------------------------------
      ENTITY       Interest on Notes Payable                                     7141        $
     EXPENSES      --------------------------------------------------------------------------------------------------
       7100        Interest on Mortgage Payable                                  7142        $
                   --------------------------------------------------------------------------------------------------
                   Other Expenses (Asset Supervisory Fee)                        7190        $ 19,772
                   --------------------------------------------------------------------------------------------------
                     NET ENTITY EXPENSES                                        7100T                     $   19,772
                   --------------------------------------------------------------------------------------------------
                     PROFIT OR LOSS (NET INCOME OR LOSS)                         3250                     $ (316,072)
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS.  If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 6890 and 7190) exceed the Account Groupings by 10% or
more, attach a separate schedule describing or explaining the miscellaneous income or expense.
---------------------------------------------------------------------------------------------------------------------
PART II
<S>                                                                                                       <C>
---------------------------------------------------------------------------------------------------------------------
 1.   Total mortgage principal payments required during the audit year (12 monthly payments).
      This applies to all direct loans and HUD-held and fully insured mortgages.
      Any HUD approved second mortgages should be included in the figures.
      (Account S1000-010)                                                                                 $   28,068
---------------------------------------------------------------------------------------------------------------------
 2.   Total of 12 monthly deposits in the audit year into the Replacement Reserve
      account, as required by the Regulatory Agreement even if payments may be temporarily
      suspended or reduced.  (Account S1000-020)                                                          $   20,093
---------------------------------------------------------------------------------------------------------------------
 3.   Replacement Reserve or Residual Receipts releases which are included as expense
      items on this Profit and Loss Statement.  (Account S1000-030)                                       $   16,612
---------------------------------------------------------------------------------------------------------------------
 4.   Project Improvement Reserve Releases under the Flexible Subsidy Program that
      are included as expense items on this Profit and Loss Statement.
      (Account S1000-040)                                                                                 $
---------------------------------------------------------------------------------------------------------------------
</TABLE>
                                   Page 2 of 2

--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 7
<PAGE>



                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                            SCHEDULE OF SUB-ACCOUNTS






<TABLE>
<CAPTION>
                                                                           FOR THE YEARS
                                                                         ENDED DECEMBER 31,
                                                                     --------------------------
                                                        ACCOUNT         2000            1999
                                                      -----------------------------------------

<S>                                                    <C>            <C>              <C>
5990 - MISCELLANEOUS REVENUE
  5990-010   Insurance proceeds                        5990-020       $     --         $25,104
  5990-010   Drug Elimination grant                    5990-020        103,735          11,593
-----------------------------------------------------------------------------------------------

              TOTAL MISCELLANEOUS REVENUE                             $103,735         $36,697
===============================================================================================



6390 - MISCELLANEOUS ADMINISTRATIVE EXPENSES
  6390-010   Drug Elimination expenses                 6390-020       $104,924         $17,336
  6390-010   Miscellaneous                             6390-020         22,219           3,984
-----------------------------------------------------------------------------------------------

              TOTAL MISCELLANEOUS ADMINISTRATIVE
                EXPENSES                                              $127,143         $21,320
===============================================================================================
</TABLE>


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                      Page 8a


<PAGE>



                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
 ------------------------------------------------------------------------------
                          STATEMENT OF PARTNERS' EQUITY


<TABLE>
<CAPTION>
                                                         FOR THE YEARS
                                                       ENDED DECEMBER 31,
                                                 -----------------------------
                                                     2000              1999
                                                 -----------------------------

<S>                                               <C>               <C>
S1100-010   BEGINNING OF YEAR                     $  48,139         $ 364,211

3250        NET LOSS                               (560,856)         (316,072)
------------------------------------------------------------------------------

3130        END OF YEAR                           $(512,717)        $  48,139
==============================================================================
</TABLE>


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                       Page 9


<PAGE>



                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                             STATEMENT OF CASH FLOWS
                                   PAGE 1 OF 2


<TABLE>
<CAPTION>
                                                                                                 FOR THE YEARS
                                                                                               ENDED DECEMBER 31,
                                                                                       ------------------------------
                                                                             ACCOUNT        2000              1999
                                                                                       ------------------------------
<S>                                                                         <C>         <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
          Receipts:
S1200-010    Rental receipts                                                            $  932,027        $  980,953
S1200-020    Interest receipts                                                               2,416             1,783
S1200-030    Other operating receipts                                                      104,985            43,253
---------------------------------------------------------------------------------------------------------------------
S1200-040      Total Receipts                                                            1,039,428         1,025,989
---------------------------------------------------------------------------------------------------------------------

          Disbursements:
S1200-050    Administrative                                                                256,301            65,643
S1200-070    Management fee                                                                 35,466            52,900
S1200-090    Utilities                                                                     121,179            84,248
S1200-100    Salaries and wages                                                             67,789            96,069
S1200-110    Operating and maintenance                                                      63,338           109,358
S1200-120    Real estate taxes                                                              37,214            35,955
S1200-140    Property insurance                                                             38,294            15,928
S1200-150    Miscellaneous taxes and insurance                                              14,391            25,820
S1200-160    Tenant security deposits                                                        1,389               117
S1200-180    Interest on mortgages                                                         460,151           462,021
S1200-210    Mortgage insurance premium (MIP)                                               26,090            24,891
S1200-220    Miscellaneous financial                                                         7,453             2,620
---------------------------------------------------------------------------------------------------------------------
S1200-230      Total Disbursements                                                       1,129,055           975,570
---------------------------------------------------------------------------------------------------------------------
S1200-240    NET CASH PROVIDED BY (USED IN) OPERATING
               ACTIVITIES                                                                  (89,627)           50,419
---------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
S1200-245    Net deposits to the mortgage escrow account                                    (3,649)           (3,013)
S1200-250    Net deposits to the reserve for replacement
               account                                                                     (22,395)           (4,955)
S1200-330    Net purchases of fixed assets                                                 (46,262)          (13,358)
---------------------------------------------------------------------------------------------------------------------
S1200-350    NET CASH USED IN INVESTING ACTIVITIES                                         (72,306)          (21,326)
---------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
S1200-360    Mortgage principal payments                                                   (30,776)          (28,068)
S1200-455    Entity/construction financing activities:
  S1200-456    Advance from general partner                                 S1200457       344,520                --
---------------------------------------------------------------------------------------------------------------------
S1200-460    NET CASH PROVIDED BY (USED IN) FINANCING
               ACTIVITIES                                                                  313,744           (28,068)
---------------------------------------------------------------------------------------------------------------------

S1200-470    NET INCREASE IN CASH                                                          151,811             1,025

S1200-480    BEGINNING OF PERIOD CASH                                                       23,640            22,615
---------------------------------------------------------------------------------------------------------------------

S1200T       END OF PERIOD CASH                                                         $  175,451        $   23,640
=====================================================================================================================
</TABLE>


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                      Page 10

<PAGE>


                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
--------------------------------------------------------------------------------
                             STATEMENT OF CASH FLOWS
                                   PAGE 2 OF 2



<TABLE>
<CAPTION>
                                                                            FOR THE YEARS
                                                                         ENDED DECEMBER 31,
                                                                    ----------------------------
                                                                       2000              1999
                                                                    ----------------------------
<S>                                                                 <C>               <C>
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED
  BY (USED IN) OPERATING ACTIVITIES
3250         Net loss                                               $(560,856)        $(316,072)
             Adjustments to reconcile net loss to net cash
               provided by (used in) operating activities:
6600             Depreciation                                         268,566           267,437
6610             Amortization                                          18,984            18,984
                 Change in assets and liabilities:
S1200-490          Decrease in tenant accounts receivable                  --             2,378
S1200-520          Increase in prepaid expenses                       (14,676)           (2,721)
S1200-530          Increase in cash restricted for tenant
                     security deposits                                 (2,451)             (134)
S1200-540          Increase in accounts payable                       101,934            46,286
S1200-560          Increase in accrued liabilities                     31,715            35,227
S1200-570          Decrease in accrued interest payable                  (237)             (216)
S1200-580          Increase in tenant security deposits held
                     in trust                                           1,061                17
S1200-590          Increase (decrease) in prepaid revenue              66,333              (767)
------------------------------------------------------------------------------------------------

S1200-610        NET CASH PROVIDED BY (USED IN) OPERATING
                   ACTIVITIES                                       $ (89,627)        $  50,419
================================================================================================
</TABLE>


--------------------------------------------------------------------------------
See the accompanying notes to financial statements.                      Page 11


<PAGE>

                      WASHINGTON COURTS LIMITED PARTNERSHIP
                                    071-35593
 ------------------------------------------------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                           DECEMBER 31, 2000 AND 1999


1.    ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (S3100-010)

      ORGANIZATION (S3100-010)

      Washington Courts Limited Partnership (the Partnership) was organized
      as a limited partnership formed April 6, 1988 to acquire an interest
      in real property located in Chicago, Illinois and to construct and
      operate thereon an apartment complex (the Project) of 103 units under
      Section 221(d)(4) of the National Housing Act.  Such projects are
      regulated by the U.S. Department of Housing and Urban Development (HUD)
      and the Illinois Housing Development Authority (IHDA) as to rent charges
      and operating methods.  The regulatory agreements limit annual
      distributions of net operating receipts to surplus cash available at the
      end of each year. There was no available surplus cash at December 31,
      2000 and 1999.

      The following significant accounting policies have been followed in the
      preparation of the financial statements:

          Management uses estimates and assumptions in preparing financial
          statements.  Those estimates and assumptions affect the reported
          amounts of assets and liabilities, the disclosure of contingent
          assets and liabilities, and the reported revenues and expenses.

          The Partnership provides an allowance for doubtful accounts equal
          to the estimated collection losses that will be incurred in
          collection of all receivables.  The estimated losses are based
          on a review of the current status of the existing receivables.
          No allowance for doubtful accounts was provided for at December 31,
          2000 or 1999 as none was deemed necessary by management.

          Depreciation is provided using primarily the straight-line method
          over the estimated useful lives of the assets ranging from seven to
          twenty-seven and a half years.

          The replacement reserve can only be used for improvements to
          buildings upon prior approval of HUD.

------------------------------------------------------------------------------
                                                                       Page 12

<PAGE>


WASHINGTON COURTS LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)

          Deferred loan costs consist of fees for obtaining the HUD insured
          mortgage loan and are being amortized using the straight-line
          method over the life of the mortgage loan.

          Low-income housing credit fees are amortized over ten years.

      In December 1999, a portion of the general partnership interest was
      converted to a special limited partner interest.  Due to this, at
      December 31, 1999 income or loss of the Partnership will be allocated
      1.005% to the general partners and 98.995% to the limited partners.
      No income tax provision has been included in the financial statements
      since income or loss of the Partnership is required to be reported by
      the partners on their respective income tax returns.  No adjustment of
      financial statement loss to tax loss is required.


2.    OTHER ASSETS (S3100-X3X) (S3100-240)

      Other assets consist of:

<TABLE>
<CAPTION>
                                                               2000          1999
                                                            -------------------------
      <S>                                                    <C>           <C>

      Loan costs, less amortization                          $520,837      $538,795
      Low-income housing credit fees, less amortization            --         1,027
      -------------------------------------------------------------------------------

                                                             $520,837      $539,822
      ===============================================================================
</TABLE>


3.    MORTGAGE PAYABLE (S3100-050)

      The 9.25% mortgage note payable is insured by HUD and is payable in
      monthly installments of $40,841 (including principal and interest)
      through February 2031.  The note is secured by a first deed of trust
      on real estate.

------------------------------------------------------------------------------
                                                                       Page 13

<PAGE>


WASHINGTON COURTS LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)

      The scheduled maturities of the mortgage payable at December 31, 2000
      are as follows: (S3100-x1x)

<TABLE>
<CAPTION>
                YEAR               ACCOUNT               AMOUNT
           -------------------------------------------------------
            <S>                   <C>                  <C>
            2001                  S3100-060            $   34,007
            2002                  S3100-070                37,289
            2003                  S3100-080                40,575
            2004                  S3100-090                44,492
            2005                  S3100-100                48,787
            Thereafter            S3100-110             4,743,493
           -------------------------------------------------------

                                                       $4,948,643
           =======================================================
</TABLE>


4.    MISCELLANEOUS CURRENT LIABILITIES (S3100-X3X) (S3100-240)

      Miscellaneous current liabilities consist of:

<TABLE>
<CAPTION>
                                                                  2000               1999
                                                               ----------------------------
      <S>                                                       <C>                <C>
      Advances - General Partner - operations                   $383,192           $38,674
      Advances - General Partner - Drug Elimination
        Grant                                                      9,931             7,076
      Accrued expenses - Drug Elimination Grant                   33,818                --
      Accrued payroll taxes                                        2,120                --
      -------------------------------------------------------------------------------------

                                                                $429,061           $45,750
      =====================================================================================
</TABLE>


5.    COMMITMENTS (S3100-X3X) (S3100-240)

      The Partnership has entered into regulatory agreements with HUD and IHDA
      which regulate, among other things, the rents which may be charged for
      apartment units in the Project, prohibit the sale of the Project without
      HUD and IHDA consent, limit the annual distribution of cash flow to the
      partners and otherwise regulate the relationship between the
      Partnership, HUD and IHDA.

------------------------------------------------------------------------------
                                                                       Page 14

<PAGE>


WASHINGTON COURTS LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)

      Pursuant to an agreement with HUD, under Section 8 of the Housing
      Assistance Payment Program, the Partnership is entitled to receive
      housing assistance payments on behalf of qualified tenants.  The term
      of the agreement is for a maximum of 15 years.  The Partnership cannot
      sell of otherwise substantially liquidate its assets during such period
      that the agreement for housing assistance program with HUD is in
      existence without their approval.


6.    RELATED PARTY TRANSACTIONS (S3100-200)

      On December 10, 1999, a transaction occurred which converted Century
      Pacific Realty Corporation (CPRC) to a Special Limited Partner and
      Shorebank Development assumed CPRC's previous role of Supervising
      General Partner.  Shorebank Development Corporation also remains the
      Managing General Partner.

      INCENTIVE MANAGEMENT FEE

      Commencing in 1990, the Managing General Partner will receive from
      Permissible Sources a non-cumulative incentive management fee equal to
      the lesser of (i) 10% of the gross income of the Partnership for such
      fiscal year less the management fee paid or payable in respect of such
      fiscal year or (ii) seventy percent (70%) of the amount of the
      Partnership's Available Cash remaining after payment of the Preferred
      Distribution, the Administration Fee, and repayment of any Operating
      Deficit Advances made to the Partnership.

      For its services in administering the Local Affairs of the Partnership
      within the state, including, without limitation, coordinating the
      activities of the Partnership relating to HUD, the lender and the
      agency, and overseeing local compliance with applicable regulations, the
      Partnership shall be required to pay the local general partners from
      Permissible Sources an annual Administrative Fee of $19,772 beginning in
      1990.  A portion of the Administrative Fee equal to one percent (1%) of
      the gross income of the Partnership shall be payable each year from the
      Partnership's Available Cash (to the extent that such Available Cash
      constitutes Permissible Sources remaining after payment of the Preferred
      Distribution).  The balance of the Administration Fee shall be payable
      from available cash (to the extent that such Available Cash constitutes
      a Permissible Source) remaining after full payment of the Preferred
      Distribution and repayment of any operating deficit advances.  Such
      payment shall be made dollar-for-dollar with payments of the Preferred
      Distribution (plus unpaid amounts thereof accruing from prior taxable
      years) until one of such fees is paid in full, with any remainder of
      such Available Cash applied to any balance of the other such fee.
      The Partnership owes the Managing General Partner $68,269 at
      December 31, 2000 and 1999, respectively.

------------------------------------------------------------------------------
                                                                       Page 15

<PAGE>


WASHINGTON COURTS LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)

      The Investor Limited Partner will, beginning in 1989, receive from
      Permissible Sources an annual cumulative cash distribution (the Annual
      Preferred Distribution) of $39,545.  Beginning in 1990, a portion of the
      Annual Preferred Distribution equal to one percent (1%) of the annual
      gross income of the Partnership (the Guaranteed Portion) shall be
      distributed to the Investor Limited Partner from Permissible Sources
      without regard to Partnership income.  An amount of the Annual Preferred
      Distribution equal to $19,772 (the Priority Portion), reduced by the
      Guaranteed Portion payable for such year, shall be payable from the
      Partnership's Available Cash (to the Permissible Source) after payment
      of the Primary Portion of the Administration Fee and repayment of any
      outstanding Operating Deficit Advances.  Such payment shall be made
      dollar-for-dollar with repayments of the Administration Fee (other than
      the Primary Portion thereof) until one of such items is paid in full,
      with any remainder of such Available Cash applied to any balance of the
      other such item.  Any unpaid amount of the Priority Portion with respect
      to any year after 1989 shall accrue, without interest, and be
      distributable to the Investor Limited Partner from Available Cash (to
      the extent that such Available Cash constitutes a Permissible Source)
      after payment of the Primary Portion of the Administration Fee and
      repayment of any outstanding Operating Deficit Advances.  Such payment
      shall be made dollar-for-dollar with payments of the Administration Fee
      (other than the Primary Portion thereof) until one of such items is paid
      in full, with any remainder of such Available Cash (to the extent that
      such Available Cash constitutes a Permissible Source) applied to any
      balance of the other such item.  Any remaining amounts of the Annual
      Preferred Distribution after 1989, including any unpaid amount of the
      Priority Portion, shall be distributable to the Investor Limited
      Partner, without interest, from cash available for distribution from
      Capital Transactions.  The remaining unpaid balance at December 31, 2000
      and 1999 amounted to $268,329 and $248,557, respectively, and is not
      reflected in the accompanying balance sheet.

      MANAGEMENT FEE (S3100-230)

      The apartment project was managed by Century Pacific Management
      Corporation, an affiliate of the general partner until November 1999
      and received a fee of 5.55% of rents collected.  In November 1999,
      HJ Russell & Company began managing the Project.  They have received
      a management fee of 5.65% of rents collected.

      In December 2000, DSSA Management, Inc. took over management of the
      Project.  They are receiving a fee of 5.65% of gross collections.
      At December 31, 2000 and 1999, the outstanding management fee payable
      was $14,644.

      S3100-210   COMPANY NAME         HJ Russell & Company
      S3100-220   AMOUNT RECEIVED      $35,466

------------------------------------------------------------------------------
                                                                       Page 16

<PAGE>



                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                       CENTURY PACIFIC TAX CREDIT HOUSING
                       FUND II


Date: 8/15/03          /s/ Irwin Jay Deutch
---------------        ---------------------------------------------------------
                       By: Irwin Jay Deutch, as Managing General Partner


                       and

                       Century Pacific Capital II Corporation, as Corporate
                       General Partner and as attorney-in-fact for all Investor
                       Limited Partners

Date: 8/15/03          /s/ Irwin Jay Deutch
---------------        ---------------------------------------------------------
                       By: Irwin Jay Deutch, President



                                       15
<PAGE>





                                 EXHIBIT INDEX
<Table>
<Caption>
EXHIBIT
NUMBER        DESCRIPTION
------        -----------

<S>           <C>
31.1          Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
              Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

31.2          Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
              Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1          Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
              Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

32.2          Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
              Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
</Table>

----------

*     Filed herewith