<PAGE> 1

             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, 2001

                      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).

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

No documents are incorporated into the text by reference.

                 Exhibit Index is located on Page 15

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> 2
                             TABLE OF CONTENTS

PART I

   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                                            10

   ITEM 8   FINANCIAL STATEMENTS                                         10

   ITEM 9   CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON
            ACCOUNTING AND FINANCIAL DISCLOSURE                          11


PART III

   ITEM 10  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT           12

   ITEM 11  EXECUTIVE COMPENSATION                                       13

   ITEM 12  PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN
            BENEFICIAL OWNERS AND MANAGEMENT                             14

   ITEM 13  CERTAIN RELATIONSHIPS AND RELATED
            TRANSACTIONS                                                 14


PART IV

   ITEM 14  EXHIBITS, FINANCIAL STATEMENT SCHEDULES                      15

            EXHIBIT INDEX                                                15

            SIGNATURES                                                   16

<PAGE> 3

                                   PART I

ITEM I. 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> 4

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, 2001, 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 Rental          Occupancy      of             Operating          March 31,         March 31,
        Units                   2001      Interest         Partnership           2001              2001
---------------------         --------   -----------       -----------        ----------        -----------
<S>                             <C>         <C>                 <C>           <C>               <C>
Washington Courts
Chicago, IL
103 Residential
Units                           85%         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, 2000
                         ---------------------------------------------------------------
    Property Name,                                                                            Government
 Location and Rental       Mortgage           Residual         Purchase           Other       Assistance
        Units               Notes               Note             Note             Note          Program
---------------------    ------------        ----------       ----------        --------   ----------------
<S>                       <C>                <C>              <C>               <C>        <C>
Washington Courts                                                                               HUD Insured
Chicago, IL                                                                                Section 22(d)(4)
103 Residential                                                                                    IHDA HAP
Units                     $ 4,948,643        $       --       $       --        $     --           Contract

Plumley Village                                                                                         HUD
Boston, MA                                                                                      Section 236
430 Residential Units       6,938,228         5,114,890        7,757,641         405,895          Section 8
                         ----------------------------------------------------------------
                          $11,886,871        $5,114,890       $7,757,641        $405,895
                         ================================================================
</TABLE>

                                     4

<PAGE> 5

ITEM 3. LEGAL PROCEEDINGS
        -----------------

As of June 20, 2001, 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, 2001, there were no submissions of matters to a vote of
security holders.

                                     5

<PAGE> 6

                                  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 20, 2001 was
approximately 519, holding 5,754 units.

As of June 20, 2001, there were no cash distributions.

ITEM 6. SELECTED FINANCIAL DATA
        -----------------------

The following summary of selected financial date should be read in
conjunction with ITEM 14, herein, which also includes a summary of
CPTCHF-II's significant accounting policies.

<TABLE>
<CAPTION>

                                                          Year Ended March 31,
                         ------------------------------------------------------------------------------
Operations                      2001                2000           1999           1998           1997
                         ------------------------------------------------------------------------------
<S>                       <C>                  <C>            <C>           <C>             <C>
Revenues                  $     500            $     500      $   1,600     $      200     $    1,200
Operating Expenses         (189,874)            (192,624)      (191,110)      (182,183)      (178,611)
Equity in Net Losses
of Operating
Partnerships               (430,306)            (251,269)      (318,696)      (247,924)      (146,872)
-------------------------------------------------------------------------------------------------------
Net Loss                  $(619,680)           $(443,393)     $(508,206)    $ (429,907)    $ (324,283)
=======================================================================================================
Net Loss per Unit of
Limited Partnership
Interest                  $    (108)           $     (77)     $     (88)    $      (75)    $      (56)
=======================================================================================================

<CAPTION>
                                                              March 31,
                         ------------------------------------------------------------------------------
Financial position             2001                 2000           1999           1998           1997
                         ------------------------------------------------------------------------------
<S>                       <C>                  <C>            <C>           <C>            <C>
Total Assets              $   3,433            $ 433,553      $ 684,322     $1,001,485     $1,249,411
=======================================================================================================
</TABLE>

                                     6

<PAGE> 7

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 representing approximately
$25,000,000 of Property value.  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 2000, 1999 and 1998
were $23,744, $384,429, and $870,477, respectively.

As of March 31, 2001, the Partnership portfolio consists of two Properties
totalling 533 units.  For a summary of the combined financial status of the
Operating Partnerships and the Properties, see the financial information
contained under ITEM 14.

Although the economy has been strong, the effects of the gradually improving
market conditions on the Partnership's operating property investments, while
positive, are limited by the government restrictions on rental rate
increases.  A substantial amount of the revenue generated by these properties
comes from rental subsidy payments made by federal or state housing agecies.
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> 8

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.

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, 2000.

2001 Compared to 2000
---------------------

For the fiscal year ended March 31, 2001, the Partnership recorded a net loss
of approximately $620,000, as compared to a net loss of approximately
$443,000 for the prior fiscal year.  The increase in net loss is the result
of the increase in the Partnership's equity in net losses of the Operating
Partnerships of approximately $179,000, offset by a small decrease in the
expenses of approximately $3,000 for the current fiscal year.


                                     8

<PAGE> 9

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 Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $430,000 from the Washington Courts Limited Partnership.  The
losses from Washington Courts Limited Partnership have reduced the
Partnership's investment in the operating partnership to zero.  In the prior
fiscal year, losses of approximately $251,000 from the operations of
Washington Courts was recorded.  The carrying value of the Partnership's
investment in Laurel-Clayton was reduced to zero during fiscal 1993.

In the aggregate, combined rental revenue of the Operating Partnerships
decreased during the current calendar year.  The average occupancy level for
Laurel-Clayton remained constant at 99% in calendar year 2000, but Washington
Court decreased to 85% occupancy level in the current year.  The combined
total expenses of the two operating properties increased by approximately
$60,000 in the current year primarily due to an increase in utilities, other
operating expenses, and interest, partially offset by lower depreciation
expense.

2000 Compared To 1999
---------------------

For the fiscal year ended March 31, 2000, the Partnership recorded a net loss
of approximately $443,000, as compared to a net loss of approximately
$508,000 for the prior fiscal year.  The decrease in net loss in the result
of a decrease in the Partnership's equity in net losses of the Operating
Partnerships of approximately $67,000 and an increase in the expenses of
approximately $2,000 for the current fiscal year.  General and administrative
expenses, namely allocated administrative expenses and partnership management
fees, continue each fiscal year to comprise an increasing portion of the
Partnership's net loss.

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 Partnership's recorded share of the Operating
Partnership's losses in the current fiscal period consists of losses of
approximately $251,000 from the Washington Courts Limited Partnership.  In
the prior fiscal year, losses of approximately $319,000 from the operations
of Washington Courts were recorded.  The carrying value of the Partnership's
investment in Laurel-Clayton was reduced to zero during fiscal 1993.

In the aggregate, combined rental revenue of the Operating Partnerships
increased during the current calendar year.  The average occupancy level for
Laurel-Clayton increased to 99% in calendar year 1999, but Washington Court
remained at 92% occupancy level in the current year.  The combined total
expenses of the two operating properties decreased by approximately $485,000
in the current year primarily due to a decrease in interest expense and
repairs and maintenance, partially offset by an increase in other operating
expenses and depreciation.


                                     9

<PAGE> 10

1999 Compared To 1998
---------------------

For the fiscal year ended March 31, 1999, the Partnership recorded a net loss
of approximately $508,000, as compared to a net loss of approximately
$430,000 for the prior fiscal year.  The increase in net loss is the result
of an increase in the Partnership's equity in net losses of the Operating
Partnerships of approximately $70,000 and an increase in the expenses of
approximately $8,000 for the current fiscal year.  General and administrative
expenses, namely allocated administrative expenses and partnership management
fees, continue each fiscal year to comprise an increasing portion of the
Partnership's net loss.

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 Partnership's recorded share of the Operating
Partnership's losses in the current fiscal period consists of losses of
approximately $319,000 from the Washington Courts Limited Partnership.  In
the prior fiscal year, losses of approximately $248,000 from the operations
of Washington Courts were recorded.  The carrying value of the Partnership's
investment in Laurel-Clayton was reduced to zero during fiscal 1993.

In the aggregate, combined rental revenue of the Operating partnerships
increased during the current calendar year.  The combined total rental
revenue increased by approximately $40,000 in the current calendar year, with
the largest increase occurring at Laurel-Clayton.  The average occupancy
levels for Laurel-Clayton remained at 98% in both calendar years, but
Washington Court had a decrease to 92% occupancy level in the current year.
The combined total expenses of the two operating properties increased by
approximately $110,000 in the current year primarily due to an increase in
repairs and maintenance and depreciation and a decrease in other operating
expenses.

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.

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 14.

                                     10

<PAGE> 11

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

Not applicable.

                                     11

<PAGE> 12

                                 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 60, 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.

                                     12

<PAGE> 13

KEY OFFICERS OF CPII AND AFFILIATES

ESSIE SAFAIE, age 51, 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 55, 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, 2001, 2000 and 1999, CPII, a General
Partner of the Partnership, earned $150,049, $146,244, and $144,440,
respectively, of partnership management fees.  During the fiscal years ended
March 31, 2001, 2000 and 1999, the Partnership accrued $37,600, $37,600, and
$37,600, respectively, for the reimbursement of overhead allocation from
Century Pacific Investment Corporation (CPIC).  During fiscal year 2001, the
General Partners received no payments from the Operating Partnerships.

                                     13

<PAGE> 14

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 14.

                                     14

<PAGE> 15

                                  PART IV

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

(a)  (1) Financial Statements:

         Independent Auditors' Report                                     F-1
         Balance Sheet as of March 31, 2001 and 2000                      F-2
         Statement of Partners' Equity (Deficit) for the Years
            Ended March 31, 2001, 2000 and 1999                           F-3
         Statement of Operations for the Years Ended March 31,
            2001, 2000 and 1999                                           F-4
         Statement of Cash Flows for the Years Ended March 31,
            2001, 2000 and 1999                                           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.

     (3) Exhibits

         Not applicable

(b)      Reports on Form 8-K

         Not applicable

(c)      Exhibits

         Not applicable

(d)      Financial Statement Schedule

         Financial Statements of Washington Courts Limited Partnership
         for the Years Ended December 31, 2000, 1999, and 1998

                                     15

<PAGE> 16

                                 SIGNATURES

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


                                       CENTURY PACIFIC TAX CREDIT HOUSING
                                       FUND


Date:  June 29, 2001                       /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:  June 29, 2001                       /s/ Irwin Jay Deutch
                                       ---------------------------------------
                                       By: Irwin Jay Deutch, President



                                     16

<PAGE> 17
                         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, 2001 and, 2000, and the related statements
of operations, partners' equity (deficit) and cash flows for each of the
three years in the period ended March 31, 2001.  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.  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, 2001 and 2000 and the results of its
operations and its cash flows for each of the three years in the period ended
March 31, 2001, in conformity with generally accepted accounting principles.

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.

We have also prepared, from information audited by us, the related financial
statement schedules listed in Item 14(a)(2) as of December 31, 2000 and 1999.
In our opinion the financial statement schedules present fairly, in all
material respects, the information required to be set forth therein.


                                    /s/ Rubin, Brown, Gornstein & Co. LLP


St. Louis, Missouri
June 20, 2001

                                     F-1

<PAGE> 18

<TABLE>
                                 CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
------------------------------------------------------------------------------------------------------------
                                               BALANCE SHEET





<CAPTION>
                                                   ASSETS

                                                                                         MARCH 31,
                                                                              ------------------------------
                                                                                     2001              2000
                                                                              ------------------------------

<S>                                                                           <C>               <C>
Cash                                                                          $     2,562       $     2,376
Advance to a general partner (Note 3)                                                 871               871
Investments in operating partnerships (Note 4)                                         --           430,306
------------------------------------------------------------------------------------------------------------

         TOTAL ASSETS                                                         $     3,433       $   433,553
============================================================================================================


                                 LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

LIABILITIES
   Accounts payable and accrued expenses                                      $     5,800       $     6,680
   Due to affiliates (Note 3)                                                   1,854,951         1,664,511
   Loan payable - affiliate (Note 3)                                               40,594            40,594
------------------------------------------------------------------------------------------------------------
         TOTAL LIABILITIES                                                      1,901,345         1,711,785
------------------------------------------------------------------------------------------------------------

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

PARTNERS' EQUITY (DEFICIT)
   General partners                                                              (68,033)           (61,836)
   Limited partners, $1,000 stated value per unit,
     25,000 units authorized, 5,754 units issued
     and outstanding                                                           (1,829,879)       (1,216,396)
------------------------------------------------------------------------------------------------------------
         TOTAL PARTNERS' EQUITY (DEFICIT)                                      (1,897,912)       (1,278,232)
------------------------------------------------------------------------------------------------------------

                                                                              $     3,433       $   433,553
============================================================================================================


                                                    F-2

------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>

<PAGE> 19

<TABLE>
                                 CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
------------------------------------------------------------------------------------------------------------
                                  STATEMENT OF PARTNERS' EQUITY (DEFICIT)
                             FOR THE YEARS ENDED MARCH 31, 2001, 2000 AND 1999



<CAPTION>
                                                                GENERAL           LIMITED
                                                               PARTNERS          PARTNERS             TOTAL
                                                              ----------------------------------------------
<S>                                                            <C>            <C>               <C>
PARTNERS' EQUITY (DEFICIT) - APRIL 1, 1998                     $(52,320)      $  (274,313)      $  (326,633)

NET LOSS                                                         (5,082)         (503,124)         (508,206)
------------------------------------------------------------------------------------------------------------

PARTNERS' EQUITY (DEFICIT) - MARCH 31, 1999                     (57,402)         (777,437)         (834,839)

NET LOSS                                                         (4,434)         (438,959)         (443,393)
------------------------------------------------------------------------------------------------------------

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)
============================================================================================================

PERCENTAGE INTEREST - MARCH 31, 2001                                 1%               99%              100%
============================================================================================================


                                                    F-3

------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>

<PAGE> 20

<TABLE>
                                 CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
------------------------------------------------------------------------------------------------------------
                                          STATEMENT OF OPERATIONS



<CAPTION>
                                                                      FOR THE YEARS ENDED MARCH 31,
                                                              ----------------------------------------------
                                                                   2001              2000              1999
                                                              ----------------------------------------------
<S>                                                           <C>               <C>               <C>
REVENUES
   Transfer fees                                              $     500         $     500         $   1,600
------------------------------------------------------------------------------------------------------------

EXPENSES
   Partnership management fee - affiliate (Note 3)              150,049           146,244           144,440
   Allocated overhead expenses - affiliate (Note 3)              37,600            37,600            37,600
   Other general and administrative expenses                      2,225             8,780             9,070
------------------------------------------------------------------------------------------------------------
         TOTAL EXPENSES                                         189,874           192,624           191,110
------------------------------------------------------------------------------------------------------------

LOSS BEFORE EQUITY IN NET LOSSES OF
   OPERATING PARTNERSHIPS                                      (189,374)         (192,124)         (189,510)

EQUITY IN NET LOSSES OF OPERATING
   PARTNERSHIPS (NOTE 4)                                       (430,306)         (251,269)         (318,696)
------------------------------------------------------------------------------------------------------------

NET LOSS                                                      $(619,680)        $(443,393)        $(508,206)
============================================================================================================

ALLOCATION OF NET LOSS
   General partners                                           $  (6,197)        $  (4,434)        $  (5,082)
   Limited partners                                            (613,483)         (438,959)         (503,124)
------------------------------------------------------------------------------------------------------------

                                                              $(619,680)        $(443,393)        $(508,206)
============================================================================================================

NET LOSS PER UNIT OF LIMITED PARTNERSHIP
   INTEREST                                                   $    (108)        $     (77)        $     (88)
============================================================================================================

AVERAGE NUMBER OF OUTSTANDING UNITS                               5,754             5,754             5,754
============================================================================================================


                                                    F-4

------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>

<PAGE> 21

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



<CAPTION>
                                                                       FOR THE YEARS ENDED MARCH 31,
                                                              ----------------------------------------------
                                                                   2001              2000              1999
                                                              ----------------------------------------------
<S>                                                           <C>               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                    $(619,680)        $(443,393)        $(508,206)
  Adjustments to reconcile net loss to net cash
    provided by operating activities:
      Equity in net losses of operating partnerships            430,306           251,269           318,696
      Change in assets and liabilities:
        Increase (decrease) in accounts payable
          and accrued expenses                                     (880)           (1,620)            5,000
        Increase in due to affiliates                           190,440           194,244           186,043
------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES                           186               500             1,533
------------------------------------------------------------------------------------------------------------

NET INCREASE IN CASH                                                186               500             1,533

CASH - BEGINNING OF YEAR                                          2,376             1,876               343
------------------------------------------------------------------------------------------------------------

CASH - END OF YEAR                                            $   2,562         $   2,376         $   1,876
============================================================================================================


                                                    F-5

------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>

<PAGE> 22

                  CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
------------------------------------------------------------------------------
                        NOTES TO FINANCIAL STATEMENTS
                        MARCH 31, 2001, 2000 AND 1999


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 generally accepted accounting principles.

      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 generally
      accepted accounting principles 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.


                                     F-6

------------------------------------------------------------------------------

<PAGE> 23

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, 2001, 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.


                                     F-7

------------------------------------------------------------------------------

<PAGE> 24

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.  Management believes that
      these factors do not permanently impair the net carrying value of the
      Partnership's investment in the Operating Partnerships.


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.


                                     F-8

------------------------------------------------------------------------------

<PAGE> 25

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, 2001, 2000 and 1999 as follows:

<TABLE>
<CAPTION>
                                                              2001           2000           1999
                                                         ----------------------------------------
      <S>                                                 <C>            <C>            <C>
      Fees and reimbursement from the Partnership:
        Partnership management fee (CPII)                 $150,049       $146,244       $144,440
        Reimbursement for overhead allocated from
          Century Pacific Investment Corporation
          (CPIC)                                            37,600         37,600         37,600
      -------------------------------------------------------------------------------------------

                                                          $187,649       $183,844       $182,040
      ===========================================================================================
</TABLE>

      At March 31, 2001 and 2000, 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 $1,374,369 and $1,224,380 respectively.

      At March 31, 2001 and 2000, CPII owed the Partnership for an unsecured,
      noninterest bearing advance of $871.

      At March 31, 2001 and 2000, CPRC was owed $40,594 for a noninterest
      bearing, demand, cash advance to the Partnership.

      As of March 31, 2001 and 2000, CPII was owed $480,523 and $440,132
      respectively for a noninterest bearing, demand cash advance made during
      the current fiscal year 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, 2001 and 2000, the Partnership had no outstanding advances
      due to the general partners.


4.    INVESTMENTS IN OPERATING PARTNERSHIPS

      At March 31, 2001 and 2000, the Partnership owned limited partnership
      interests in two Operating Partnerships, each of which has invested in
      a Property.


                                     F-9

------------------------------------------------------------------------------

<PAGE> 26

CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)


      Investments in Operating Partnerships consist of the following:

<TABLE>
<CAPTION>
                                                                      2001              2000
                                                               ------------------------------
         <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)       (4,105,714)
         ------------------------------------------------------------------------------------

                                                               $        --       $   430,306
         ====================================================================================
</TABLE>

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

                           NAME OF                         NAME AND
                    OPERATING PARTNERSHIP            LOCATION OF PROPERTY
         ---------------------------------------------------------------------

            Washington Courts Limited Partnership      Washington Courts
                                                       Chicago, Illinois

             Laurel-Clayton Limited Partnership         Plumley Village
                                                     Boston, Massachusetts

      A summarized combined balance sheet as of December 31, 2000 and 1999 and
      statements of operations of the aforementioned Operating Partnerships
      for the years then ended follows:

<TABLE>
                                        COMBINED BALANCE SHEET
                                                ASSETS
<CAPTION>
                                                                       2000             1999
                                                               ------------------------------
         <S>                                                    <C>              <C>
         Cash                                                   $   735,368      $   360,534
         Reserve for replacements                                 1,819,911        1,613,398
         Land and buildings                                      17,708,695       17,985,342
         Other assets                                               968,975          981,278
         ------------------------------------------------------------------------------------

                                                                $21,232,949      $20,940,552
         ====================================================================================
</TABLE>


                                     F-10

------------------------------------------------------------------------------

<PAGE> 27

CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)


<TABLE>
                            LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

<CAPTION>
                                                                   2000              1999
                                                           -------------------------------
         <S>                                                <C>               <C>
         Notes payable                                      $25,165,297       $24,885,119
         Other liabilities                                    1,428,659           717,893
         ---------------------------------------------------------------------------------
                                                             26,593,956        25,603,012
         Partners' equity (deficit)                          (5,361,007)       (4,662,460)
         ---------------------------------------------------------------------------------

                                                            $21,232,949       $20,940,552
         =================================================================================

                                 COMBINED STATEMENT OF OPERATIONS

<CAPTION>
                                                                   2000              1999
                                                           -------------------------------
         <S>                                                <C>               <C>
         REVENUES
           Rental income                                    $ 5,152,488       $ 5,160,145
           Other income                                         232,088           125,423
         ---------------------------------------------------------------------------------
               TOTAL REVENUES                                 5,384,576         5,285,568
         ---------------------------------------------------------------------------------

         EXPENSES
           Utilities                                            792,452           751,408
           Repairs and maintenance                            1,149,341         1,136,678
           Management fees                                      292,926           298,401
           Other operating expenses                           1,528,381         1,452,309
           Interest                                           1,274,094         1,230,352
           Depreciation and amortization                      1,056,692         1,164,774
         ---------------------------------------------------------------------------------
               TOTAL EXPENSES                                 6,093,886         6,033,922
         ---------------------------------------------------------------------------------

         NET LOSS                                           $  (709,310)      $  (748,354)
         =================================================================================

         ALLOCATION OF LOSS
           General partners and other limited partners      $  (115,467)      $  (204,520)
           CPTCHF-II                                           (593,843)         (543,834)
         ---------------------------------------------------------------------------------

                                                            $  (709,310)      $  (748,354)
         =================================================================================
</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.


                                     F-11

------------------------------------------------------------------------------

<PAGE> 28

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 generally accepted accounting principles, 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.


                                     F-12

------------------------------------------------------------------------------

<PAGE> 29

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.


                                     F-13
------------------------------------------------------------------------------

<PAGE> 30


<TABLE>
                                                                                                          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, 2000


<CAPTION>
                                                                                               COST CAPITALIZED
                                                              INITIAL COST TO                     SUBSEQUENT
                                                           OPERATING PARTNERSHIP                TO ACQUISITION
                                                      -------------------------------    -----------------------------
                                    ENCUMBRANCES                       BUILDINGS AND                  BUILDINGS AND
DESCRIPTION                             (2)               LAND          IMPROVEMENTS        LAND       IMPROVEMENTS
----------------------------------------------------------------------------------------------------------------------
<S>                                 <C>               <C>                <C>                <C>         <C>
Washington Courts Apartments
  Chicago, Illinois
  103 Residential Units             $ 4,948,643       $   75,300         $ 1,720,666        $  --       $5,479,295


Plumley Village Apartments
  Boston, Massachusetts
  430 Residential Units              20,216,654        1,100,000          17,383,785           --        4,250,761
----------------------------------------------------------------------------------------------------------------------

                                    $25,165,297       $1,175,300         $19,104,451        $  --       $9,730,056
======================================================================================================================


<CAPTION>
                                                                                                             LIFE UPON
                                                                                                                 WHICH
                                      GROSS AMOUNT AT WHICH         ACCUMULATED                           DEPRECIATION
                                    CARRIED AT CLOSE OF YEAR       DEPRECIATION                              IN LATEST
                             ------------------------------------  ------------                                 INCOME
                                         BUILDINGS AND             BUILDINGS AND       DATE OF      DATE     STATEMENT
DESCRIPTION                      LAND    IMPROVEMENTS     TOTAL    IMPROVEMENTS   CONSTRUCTION  ACQUIRED   IS COMPUTED
----------------------------------------------------------------------------------------------------------------------
<S>                          <C>         <C>          <C>          <C>                    <C>       <C>     <C>
Washington Courts Apartments
  Chicago, Illinois
  103 Residential Units      $   75,300  $ 7,199,961  $ 7,275,261  $ 2,895,402            1991      1/89    27.5 years


Plumley Village Apartments
  Boston, Massachusetts
  430 Residential Units       1,100,000   21,634,546   22,734,546    9,405,710            1973      9/89    27.5 years
----------------------------------------------------------------------------------------------------------------------

                             $1,175,300  $28,834,507  $30,009,807  $12,301,112
======================================================================================================================
</TABLE>

                                                 See notes to schedule
                                                          F-14

<PAGE> 31

                  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, 2000

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                 $ 4,948,643    $       --     $       --     $     --    $ 4,948,643

Laurel-Clayton L/P
Plumley Village                     6,938,228     5,114,890      7,757,641      405,895     20,216,654
-------------------------------------------------------------------------------------------------------

                                  $11,886,871    $5,114,890     $7,757,641     $405,895    $25,165,297
=======================================================================================================
</TABLE>


NOTE 3 - RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION
-------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                             ACCUMULATED
                                                    COST    DEPRECIATION
                                            -----------------------------
         <S>                                 <C>             <C>
         Balance at December 31, 1997        $28,141,545     $ 9,080,821
           Additions during year:
             Depreciation                             --       1,036,792
             Improvements                        746,354              --
         ----------------------------------------------------------------

         Balance at December 31, 1998         28,887,899      10,117,613
           Additions during year:
             Depreciation                             --       1,145,790
             Improvements                        360,846              --
         ----------------------------------------------------------------

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

                                             $30,009,807     $12,301,112
         ================================================================
</TABLE>

                                     F-15
<PAGE> 32

<TABLE>
                                                                                                 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, 2000


<CAPTION>
                                                                     MONTHLY
                                                    FINAL        PAYMENTS TO        ORIGINAL        CARRYING
                                                 MATURITY   MATURITY (NET OF            FACE       AMOUNT OF
DESCRIPTION (1)                 INTEREST 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    $ 4,948,643

Laurel-Clayton Limited
  Partnership
    Plumley Village                      8.5%        2012             24,035      10,635,000      6,938,228
                                                              ----------------------------------------------

Total                                                                $64,876     $15,800,400    $11,886,871
                                                              ==============================================
</TABLE>


                                           See notes to schedule
                                                    F-16

<PAGE> 33

                  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, 2000

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.  Prepayment is prohibited during
   the construction period and for ten years from the date of completion of
   construction.

NOTE 2 - RECONCILIATION OF MORTGAGES
         ---------------------------

<TABLE>
<CAPTION>
                                                      FOR THE YEAR
                                                 ENDED DECEMBER 31, 2000
                                             -------------------------------
                                                 MORTGAGE          RESIDUAL
                                                    LOANS             NOTES
                                             -------------------------------
         <S>                                  <C>                <C>
         Balance at December 31, 1997         $12,884,235        $4,442,890
           Additions during year:
             Accrued interest                          --           224,000
           Deductions during year:
             Payments                             304,523                --
         -------------------------------------------------------------------

         Balance at December 31, 1998          12,579,712         4,666,890
           Additions during year:
             Accrued interest                          --           224,000
           Deductions during year:
             Payments                             331,649                --
         -------------------------------------------------------------------

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

                                              $11,886,871        $5,114,890
         ===================================================================
</TABLE>



                                     F-17

------------------------------------------------------------------------------

<PAGE> 34

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.





March 2, 2001


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

<PAGE> 35

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



<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
===========================================================================================


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

<PAGE> 36

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



<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
===========================================================================================


-------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.                                  Page 3
</TABLE>

<PAGE> 37

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


---------------------------------------------------------------------------------------------------------------------
<CAPTION>
      PART 1                  DESCRIPTION OF ACCOUNT                           ACCT. NO.       AMOUNT
---------------------------------------------------------------------------------------------------------------------
<C>                <S>                                                           <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
---------------------------------------------------------------------------------------------------------------------

                                                      Page 1 of 2


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

<PAGE> 38

Project Name:  Washington Courts Limited Partnership
---------------------------------------------------------------------------------------------------------------------
                                                                                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)
---------------------------------------------------------------------------------------------------------------------
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.
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
PART II
---------------------------------------------------------------------------------------------------------------------
 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)                                                                                  $       --
---------------------------------------------------------------------------------------------------------------------

                                                      Page 2 of 2


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

<PAGE> 39

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


---------------------------------------------------------------------------------------------------------------------
<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
---------------------------------------------------------------------------------------------------------------------

                                                      Page 1 of 2


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

<PAGE> 40

Project Name:  Washington Courts Limited Partnership
---------------------------------------------------------------------------------------------------------------------
                                                                                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)
---------------------------------------------------------------------------------------------------------------------
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.
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
PART II
---------------------------------------------------------------------------------------------------------------------
 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)                                                                                 $
---------------------------------------------------------------------------------------------------------------------

                                                      Page 2 of 2


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

<PAGE> 41

<TABLE>

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






<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
===============================================================================================


-----------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.                                     Page 8a
</TABLE>

<PAGE> 42

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









<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
==============================================================================


------------------------------------------------------------------------------
See the accompanying notes to financial statements.                     Page 9
</TABLE>

<PAGE> 43

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


<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
=====================================================================================================================


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

<PAGE> 44

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



<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
================================================================================================


------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.                                      Page 11
</TABLE>

<PAGE> 45
                    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> 46

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> 47

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> 48

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> 49

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> 50

S2300-020                INDEPENDENT AUDITORS' REPORT

To The Partners
Washington Courts Limited Partnership
Los Angeles, California


We have audited the accompanying balance sheet of Washington Courts Limited
Partnership, Project No. 071-35593, a limited partnership, as of December 31,
1998 and 1997, and the related statements of profit and loss, partners'
equity 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, 1998 and 1997, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.



January 28, 1999

<PAGE>

<TABLE>
                       WASHINGTON COURTS LIMITED PARTNERSHIP
                                HUD PROJECT NO: 071-35593
 --------------------------------------------------------------------------------------
                                      BALANCE SHEET
                                       PAGE 1 OF 2



<CAPTION> 51
                                          ASSETS

                                                                      DECEMBER 31,
                                                            -------------------------------
                                                                 1998              1997
                                                            -------------------------------
<S>                                                          <C>               <C>
CURRENT ASSETS
   1120   Cash - operations                                  $   22,615        $  148,343
   1130   Tenant accounts receivable                              2,378            15,110
   1135   Accounts receivable - HUD                                  --             6,870
   1190   Miscellaneous current assets                              100               100
   1200   Miscellaneous prepaid expenses                         30,382            31,174
-------------------------------------------------------------------------------------------
   1100T    TOTAL CURRENT ASSETS                                 55,475           201,597
-------------------------------------------------------------------------------------------

DEPOSITS HELD IN TRUST - FUNDED
   1191   Tenant deposits held in trust                          12,800            13,683
-------------------------------------------------------------------------------------------

RESTRICTED DEPOSITS AND FUNDED RESERVES
   1310   Escrow deposits                                        29,627            22,804
   1320   Replacement reserve                                    64,524            72,078
-------------------------------------------------------------------------------------------
   1300T    TOTAL DEPOSITS                                       94,151            94,882
-------------------------------------------------------------------------------------------

FIXED ASSETS
   1410   Land                                                   75,300            75,300
   1420   Buildings                                           7,066,695         7,048,175
   1440   Building equipment - portable                           8,061                --
   1465   Office furniture and equipment                         65,585            65,585
-------------------------------------------------------------------------------------------
   1400T    Total Fixed Assets                                7,215,641         7,189,060

   1495   Less:  Accumulated depreciation                     2,359,398         2,093,234
-------------------------------------------------------------------------------------------
   1400N    NET FIXED ASSETS                                  4,856,243         5,095,826
-------------------------------------------------------------------------------------------

OTHER ASSETS
   1520   Intangible assets                                     558,807           577,790
-------------------------------------------------------------------------------------------

   1000T    TOTAL ASSETS                                     $5,577,476        $5,983,778
===========================================================================================


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

<PAGE> 52

                          WASHINGTON COURTS LIMITED PARTNERSHIP
                                HUD PROJECT NO: 071-35593
 --------------------------------------------------------------------------------------
                                      BALANCE SHEET
                                       PAGE 2 OF 2



<CAPTION>
                                       LIABILITIES

                                                                      DECEMBER 31,
                                                            -------------------------------
                                                                 1998              1997
                                                            -------------------------------
<S>                                                          <C>               <C>
CURRENT LIABILITIES
   2110   Accounts payable - operations                      $   19,504        $   64,320
   2113   Accounts payable - entity                              68,269            69,876
   2120   Accrued wages payable                                   3,357             4,205
   2123   Accrued management fee payable                         20,744             5,612
   2131   Accrued interest payable - first mortgage              38,599            34,350
   2150   Accrued property taxes                                 35,328            38,120
   2170   Mortgage payable - first mortgage (short-term)         28,282            25,793
   2190   Miscellaneous current liabilities                       6,410             2,509
   2210   Prepaid revenue                                           767                --
-------------------------------------------------------------------------------------------
   2122T    TOTAL CURRENT LIABILITIES                           221,260           244,785
-------------------------------------------------------------------------------------------

DEPOSIT AND PREPAYMENT LIABILITIES
   2191   Tenant deposits held in trust (contra)                 12,800            12,618
-------------------------------------------------------------------------------------------

LONG-TERM LIABILITIES
   2320   Mortgage payable - first mortgage                   4,979,205         5,007,290
-------------------------------------------------------------------------------------------

   2000T    TOTAL LIABILITIES                                 5,213,265         5,264,693

                                       PARTNERS' EQUITY

   3130   Partners' equity                                      364,211           719,085
-------------------------------------------------------------------------------------------

   2033T   TOTAL LIABILITIES AND PARTNERS' EQUITY            $5,577,476        $5,983,778
===========================================================================================


-------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.                                  Page 3
</TABLE>

<PAGE> 53

<TABLE>
                                         WASHINGTON COURTS LIMITED PARTNERSHIP
                                               HUD PROJECT NO: 071-35593
---------------------------------------------------------------------------------------------------------------------
                                              STATEMENT OF PROFIT AND LOSS
                                          FOR THE YEAR ENDED DECEMBER 31, 1998

---------------------------------------------------------------------------------------------------------------------
<CAPTION>
      PART 1                  DESCRIPTION OF ACCOUNT                           ACCT. NO.       AMOUNT
---------------------------------------------------------------------------------------------------------------------
<C>                <S>                                                           <C>         <C>          <C>
                   Rent Revenue - Gross Potential                                 5120       $217,046
                   --------------------------------------------------------------------------------------------------
                   Tenant Assistance Payments                                     5121       $815,521
                   --------------------------------------------------------------------------------------------------
                   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                    $1,032,567
---------------------------------------------------------------------------------------------------------------------
                   Apartments                                                     5220       $107,608
                   --------------------------------------------------------------------------------------------------
                   Stores and Commercial                                          5240       $
                   --------------------------------------------------------------------------------------------------
                   Rental Concessions                                             5250       $
    VACANCIES      --------------------------------------------------------------------------------------------------
       5200        Garage and Parking Space                                       5270       $
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous                                                  5290       $
                   --------------------------------------------------------------------------------------------------
                     TOTAL VACANCIES                                             5200T                    $  107,608
                   --------------------------------------------------------------------------------------------------
                     NET RENTAL REVENUE Rent Revenue Less Vacancies              5152N                    $  924,959
---------------------------------------------------------------------------------------------------------------------
       5300        Nursing Homes/Assisted Living/Board and Care/
                     Other Elderly Care/Coop/ and Other Revenues                  5300                    $
---------------------------------------------------------------------------------------------------------------------
                   Financial Revenue - Project Operations                         5410       $    919
                   --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Residual Receipts                   5430       $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     REVENUE       Revenue from Investments - Replacement Reserve                 5440       $  1,630
       5400        --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Miscellaneous                       5490       $    190
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL REVENUE                                     5400T                    $    2,739
---------------------------------------------------------------------------------------------------------------------
                   Laundry and Vending Revenue                                    5910       $
                   --------------------------------------------------------------------------------------------------
                   Tenant Charges                                                 5920       $    590
                   --------------------------------------------------------------------------------------------------
                   Interest Reduction Payments Revenue                            5945       $  1,595
      OTHER        --------------------------------------------------------------------------------------------------
     REVENUE       Miscellaneous Revenue                                          5990       $
       5900          --------------------------------------------------------------------------------------------------
                     TOTAL OTHER REVENUE                                         5900T                    $    2,185
                   --------------------------------------------------------------------------------------------------
                     TOTAL REVENUE                                               5000T                    $  929,883
---------------------------------------------------------------------------------------------------------------------
                   Conventions and Meetings                                       6203       $
                   --------------------------------------------------------------------------------------------------
                   Management Consultants                                         6204       $
                   --------------------------------------------------------------------------------------------------
                   Advertising and Marketing                                      6210       $    509
                   --------------------------------------------------------------------------------------------------
                   Other Renting Expenses                                         6250       $    588
                   --------------------------------------------------------------------------------------------------
                   Office Salaries                                                6310       $ 11,617
                   --------------------------------------------------------------------------------------------------
                   Office Expenses                                                6311       $  5,788
                   --------------------------------------------------------------------------------------------------
                   Office or Model Apartment Rent                                 6312       $
                   --------------------------------------------------------------------------------------------------
                   Management Fee                                                 6320       $ 47,068
  ADMINISTRATIVE   --------------------------------------------------------------------------------------------------
     EXPENSES      Manager or Superintendent Salaries                             6330       $ 11,868
    6200/6300      --------------------------------------------------------------------------------------------------
                   Administrative Rent Free Unit                                  6331       $
                   --------------------------------------------------------------------------------------------------
                   Legal Expense - Project                                        6340       $  5,945
                   --------------------------------------------------------------------------------------------------
                   Audit Expense                                                  6350       $  7,761
                   --------------------------------------------------------------------------------------------------
                   Bookkeeping Fees/Accounting Services                           6351       $  3,011
                   --------------------------------------------------------------------------------------------------
                   Bad Debts                                                      6370       $ 15,110
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Administrative Expenses                          6390       $  7,838
                   --------------------------------------------------------------------------------------------------
                     TOTAL ADMINISTRATIVE EXPENSES                               6263T                    $  117,103
---------------------------------------------------------------------------------------------------------------------
                   Fuel Oil/Coal                                                  6420       $
                   --------------------------------------------------------------------------------------------------
                   Electricity                                                    6450       $  3,110
    UTILITIES      --------------------------------------------------------------------------------------------------
     EXPENSE       Water                                                          6451       $ 14,226
      6400         --------------------------------------------------------------------------------------------------
                   Gas                                                            6452       $ 65,998
                   --------------------------------------------------------------------------------------------------
                   Sewer                                                          6453       $  7,894
                   --------------------------------------------------------------------------------------------------
                     TOTAL UTILITIES EXPENSE                                     6400T                    $   91,228
                   --------------------------------------------------------------------------------------------------
                                   TOTAL EXPENSES (CARRY FORWARD TO PAGE 2)                               $  208,331
---------------------------------------------------------------------------------------------------------------------

                                                      Page 1 of 2


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

<PAGE> 54

Project Name:  Washington Courts Limited Partnership
---------------------------------------------------------------------------------------------------------------------
                                                                                BALANCE CARRIED FORWARD   $  208,331
---------------------------------------------------------------------------------------------------------------------
                   Payroll                                                        6510       $ 30,288
                   --------------------------------------------------------------------------------------------------
                   Supplies                                                       6515       $ 86,406
                   --------------------------------------------------------------------------------------------------
                   Contracts                                                      6520       $ 50,830
                   --------------------------------------------------------------------------------------------------
                   Operating and Maintenance Rent Free Unit                       6521       $
                   --------------------------------------------------------------------------------------------------
                   Garbage and Trash Removal                                      6525       $ 14,332
    OPERATING      --------------------------------------------------------------------------------------------------
   MAINTENANCE     Security Payroll/Contract                                      6530       $ 11,489
     EXPENSES      --------------------------------------------------------------------------------------------------
       6500        Security Rent Free Unit                                        6531       $
                   --------------------------------------------------------------------------------------------------
                   Heating/Cooling Repairs and Maintenance                        6546       $  2,987
                   --------------------------------------------------------------------------------------------------
                   Snow Removal                                                   6548       $
                   --------------------------------------------------------------------------------------------------
                   Vehicle and Maintenance Equipment Operation and Repairs        6570       $    819
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Operating and Maintenance Expenses               6590       $ 21,325
                   --------------------------------------------------------------------------------------------------
                     TOTAL OPERATING AND MAINTENANCE EXPENSES                    6500T                    $  218,476
---------------------------------------------------------------------------------------------------------------------
                   Real Estate Taxes                                              6710       $ 32,506
                   --------------------------------------------------------------------------------------------------
                   Payroll Taxes (Project's Share)                                6711       $  5,640
                   --------------------------------------------------------------------------------------------------
                   Property and Liability Insurance (Hazard)                      6720       $ 14,569
                   --------------------------------------------------------------------------------------------------
      TAXES        Fidelity Bond Insurance                                        6721       $
       AND         --------------------------------------------------------------------------------------------------
    INSURANCE      Workmen's Compensation                                         6722       $    886
       6700        --------------------------------------------------------------------------------------------------
                   Health Insurance and Other Employee Benefits                   6723       $  6,287
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Taxes, Licenses, Permits and Insurance           6790       $  1,587
                   --------------------------------------------------------------------------------------------------
                     TOTAL TAXES AND INSURANCE                                   6700T                    $   61,475
---------------------------------------------------------------------------------------------------------------------
                   Interest on Mortgage Payable                                   6820       $464,361
                   --------------------------------------------------------------------------------------------------
                   Interest on Notes Payable (LongTerm)                           6830       $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     EXPENSES      Interest on Notes Payable (ShortTerm)                          6840       $
       6800        --------------------------------------------------------------------------------------------------
                   Mortgage Insurance Premium/Service Charge                      6850       $ 27,194
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Financial Expenses                               6890       $
                   --------------------------------------------------------------------------------------------------
                      TOTAL FINANCIAL EXPENSES                                   6800T                    $  491,555
---------------------------------------------------------------------------------------------------------------------
      6900         Nursing Homes/ Assisted Living/ Board and Care/ Other
                     Elderly Care Expenses                                        6900                    $
---------------------------------------------------------------------------------------------------------------------
                     TOTAL COST OF OPERATIONS BEFORE
                       DEPRECIATION AND AMORTIZATION                             6000T                    $  979,837
                   --------------------------------------------------------------------------------------------------
                     PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION          5060T                    $  (49,954)
                   --------------------------------------------------------------------------------------------------
                   Depreciation Expense                                           6600       $266,164
                   --------------------------------------------------------------------------------------------------
                   Amortization Expense                                           6610       $ 18,984
                   --------------------------------------------------------------------------------------------------
                     TOTAL DEPRECIATION AND AMORTIZATION                                                  $  285,148
                   --------------------------------------------------------------------------------------------------
                     OPERATING PROFIT OR (LOSS)                                  5060N                    $ (335,102)
---------------------------------------------------------------------------------------------------------------------
                   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       $ 19,772
                   --------------------------------------------------------------------------------------------------
                     NET ENTITY EXPENSES                                         7100T                    $   19,772
                   --------------------------------------------------------------------------------------------------
                     PROFIT OR LOSS (NET INCOME OR LOSS)                          3250                    $ (354,874)
---------------------------------------------------------------------------------------------------------------------
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.
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
PART II
---------------------------------------------------------------------------------------------------------------------
 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)                                                                                  $   25,793
---------------------------------------------------------------------------------------------------------------------
 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)                                        $   21,217
---------------------------------------------------------------------------------------------------------------------
 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)                $
---------------------------------------------------------------------------------------------------------------------

                                                      Page 2 of 2


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

<PAGE> 55

<TABLE>
                                         WASHINGTON COURTS LIMITED PARTNERSHIP
                                               HUD PROJECT NO: 071-35593
---------------------------------------------------------------------------------------------------------------------
                                              STATEMENT OF PROFIT AND LOSS
                                          FOR THE YEAR ENDED DECEMBER 31, 1997


---------------------------------------------------------------------------------------------------------------------
<CAPTION>
      PART 1                  DESCRIPTION OF ACCOUNT                           ACCT. NO.       AMOUNT
---------------------------------------------------------------------------------------------------------------------
<C>                <S>                                                           <C>         <C>          <C>
                   Rent Revenue - Gross Potential                                 5120       $244,975
                   --------------------------------------------------------------------------------------------------
                   Tenant Assistance Payments                                     5121       $817,588
                   --------------------------------------------------------------------------------------------------
                   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                    $1,062,563
---------------------------------------------------------------------------------------------------------------------
                   Apartments                                                     5220       $ 84,065
                   --------------------------------------------------------------------------------------------------
                   Stores and Commercial                                          5240       $
                   --------------------------------------------------------------------------------------------------
                   Rental Concessions                                             5250       $
    VACANCIES      --------------------------------------------------------------------------------------------------
       5200        Garage and Parking Space                                       5270       $
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous                                                  5290       $
                   --------------------------------------------------------------------------------------------------
                     TOTAL VACANCIES                                             5200T                    $   84,065
                   --------------------------------------------------------------------------------------------------
                     NET RENTAL REVENUE Rent Revenue Less Vacancies              5152N                    $  978,498
---------------------------------------------------------------------------------------------------------------------
       5300        Nursing Homes/Assisted Living/Board and Care/
                     Other Elderly Care/Coop/ and Other Revenues                  5300                    $
---------------------------------------------------------------------------------------------------------------------
                   Financial Revenue - Project Operations                         5410       $  4,754
                   --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Residual Receipts                   5430       $
    FINANCIAL      --------------------------------------------------------------------------------------------------
     REVENUE       Revenue from Investments - Replacement Reserve                 5440       $  1,475
       5400        --------------------------------------------------------------------------------------------------
                   Revenue from Investments - Miscellaneous                       5490       $
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL REVENUE                                     5400T                    $     6,229
---------------------------------------------------------------------------------------------------------------------
                   Laundry and Vending Revenue                                    5910       $  1,204
                   --------------------------------------------------------------------------------------------------
                   Tenant Charges                                                 5920       $  3,330
                   --------------------------------------------------------------------------------------------------
                   Interest Reduction Payments Revenue                            5945       $
      OTHER        --------------------------------------------------------------------------------------------------
     REVENUE       Miscellaneous Revenue (Schedule)                               5990       $ 48,864
       5900        --------------------------------------------------------------------------------------------------
                     TOTAL OTHER REVENUE                                         5900T                    $   53,398
                   --------------------------------------------------------------------------------------------------
                     TOTAL REVENUE                                               5000T                    $1,038,125
---------------------------------------------------------------------------------------------------------------------
                   Conventions and Meetings                                       6203       $
                   --------------------------------------------------------------------------------------------------
                   Management Consultants                                         6204       $
                   --------------------------------------------------------------------------------------------------
                   Advertising and Marketing                                      6210       $    285
                   --------------------------------------------------------------------------------------------------
                   Other Renting Expenses                                         6250       $
                   --------------------------------------------------------------------------------------------------
                   Office Salaries                                                6310       $ 17,046
                   --------------------------------------------------------------------------------------------------
                   Office Expenses                                                6311       $  1,326
                   --------------------------------------------------------------------------------------------------
                   Office or Model Apartment Rent                                 6312       $
                   --------------------------------------------------------------------------------------------------
                   Management Fee                                                 6320       $ 53,731
  ADMINISTRATIVE   --------------------------------------------------------------------------------------------------
     EXPENSES      Manager or Superintendent Salaries                             6330       $
    6200/6300      --------------------------------------------------------------------------------------------------
                   Administrative Rent Free Unit                                  6331       $
                   --------------------------------------------------------------------------------------------------
                   Legal Expense - Project                                        6340       $ 22,656
                   --------------------------------------------------------------------------------------------------
                   Audit Expense - Project                                        6350       $  7,700
                   --------------------------------------------------------------------------------------------------
                   Bookkeeping Fees/Accounting Services                           6351       $  1,843
                   --------------------------------------------------------------------------------------------------
                   Bad Debts                                                      6370       $ 20,977
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Administrative Expenses (Schedule)               6390       $ 33,301
                   --------------------------------------------------------------------------------------------------
                     TOTAL ADMINISTRATIVE EXPENSES                               6263T                    $  158,865
---------------------------------------------------------------------------------------------------------------------
                   Fuel Oil/Coal                                                  6420       $
                   --------------------------------------------------------------------------------------------------
                   Electricity (Light and Misc. Power)                            6450       $  7,584
    UTILITIES      --------------------------------------------------------------------------------------------------
     EXPENSE       Water                                                          6451       $ 28,080
       6400        --------------------------------------------------------------------------------------------------
                   Gas                                                            6452       $100,684
                   --------------------------------------------------------------------------------------------------
                   Sewer                                                          6453       $
---------------------------------------------------------------------------------------------------------------------
                     TOTAL UTILITIES EXPENSE                                     6400T                    $  136,348
---------------------------------------------------------------------------------------------------------------------
                                   TOTAL EXPENSES (CARRY FORWARD TO PAGE 2)                               $  295,213
---------------------------------------------------------------------------------------------------------------------

                                                      Page 1 of 2


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

<PAGE> 56

Project Name:  Washington Courts Limited Partnership
---------------------------------------------------------------------------------------------------------------------
                                                                                BALANCE CARRIED FORWARD   $  295,213
---------------------------------------------------------------------------------------------------------------------
                   Payroll                                                        6510       $ 41,311
                   --------------------------------------------------------------------------------------------------
                   Supplies                                                       6515       $ 32,086
                   --------------------------------------------------------------------------------------------------
                   Contracts                                                      6520       $ 40,457
                   --------------------------------------------------------------------------------------------------
                   Operating and Maintenance Rent Free Unit                       6521       $
                   --------------------------------------------------------------------------------------------------
                   Garbage and Trash Removal                                      6525       $ 16,636
    OPERATING      --------------------------------------------------------------------------------------------------
   MAINTENANCE     Security Payroll/Contract                                      6530       $  3,220
     EXPENSES      --------------------------------------------------------------------------------------------------
       6500        Security Rent Free Unit                                        6531       $
                   --------------------------------------------------------------------------------------------------
                   Heating/Cooling Repairs and Maintenance                        6546       $ 19,583
                   --------------------------------------------------------------------------------------------------
                   Snow Removal                                                   6548       $    294
                   --------------------------------------------------------------------------------------------------
                   Vehicle and Maintenance Equipment Operation and Repairs        6570       $    488
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Operating and Maintenance Expenses               6590       $  2,563
                   --------------------------------------------------------------------------------------------------
                     TOTAL OPERATING AND MAINTENANCE EXPENSES                    6500T                    $  156,638
---------------------------------------------------------------------------------------------------------------------
                   Real Estate Taxes                                              6710       $ 37,220
                   --------------------------------------------------------------------------------------------------
                   Payroll Taxes (Project's Share)                                6711       $  6,386
                   --------------------------------------------------------------------------------------------------
                   Property and Liability Insurance (Hazard)                      6720       $ 15,008
      TAXES        --------------------------------------------------------------------------------------------------
       AND         Fidelity Bond Insurance                                        6721       $
    INSURANCE      --------------------------------------------------------------------------------------------------
      6700         Workmen's Compensation                                         6722       $  2,168
                   --------------------------------------------------------------------------------------------------
                   Health Insurance and Other Employee Benefits                   6723       $  7,432
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Taxes, Licenses, Permits and Insurance           6790       $  1,274
                   --------------------------------------------------------------------------------------------------
                     TOTAL TAXES AND INSURANCE                                   6700T                    $   69,488
---------------------------------------------------------------------------------------------------------------------
                   Interest on Mortgage Payable                                   6820       $
                   --------------------------------------------------------------------------------------------------
                   Interest on Notes Payable (LongTerm)                           6830       $466,566
    FINANCIAL      --------------------------------------------------------------------------------------------------
     EXPENSES      Interest on Notes Payable (ShortTerm)                          6840       $
       6800        --------------------------------------------------------------------------------------------------
                   Mortgage Insurance Premium/Service Charge                      6850       $ 25,267
                   --------------------------------------------------------------------------------------------------
                   Miscellaneous Financial Expenses                               6890       $ 18,085
                   --------------------------------------------------------------------------------------------------
                     TOTAL FINANCIAL EXPENSES                                    6800T                    $  509,918
---------------------------------------------------------------------------------------------------------------------
      6900         Nursing Homes/ Assisted Living/ Board and Care/ Other
                     Elderly Care Expenses                                        6900                    $
---------------------------------------------------------------------------------------------------------------------
                     TOTAL COST OF OPERATIONS BEFORE
                       DEPRECIATION AND AMORTIZATION                             6000T                    $1,031,257
                   --------------------------------------------------------------------------------------------------
                     PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION          5060T                    $    6,868
                   --------------------------------------------------------------------------------------------------
                   Depreciation Expense                                           6600       $261,542
                   --------------------------------------------------------------------------------------------------
                   Amortization Expense                                           6610       $
                   --------------------------------------------------------------------------------------------------
                     TOTAL DEPRECIATION AND AMORTIZATION                                                  $  261,542
                   --------------------------------------------------------------------------------------------------
                     OPERATING PROFIT OR (LOSS)                                  5060N                    $ (254,674)
---------------------------------------------------------------------------------------------------------------------
                   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                                                 7190       $ 20,797
                   --------------------------------------------------------------------------------------------------
                     NET ENTITY EXPENSES                                         7100T                    $   20,797
                   --------------------------------------------------------------------------------------------------
                     PROFIT OR LOSS (NET INCOME OR LOSS)                          3250                    $ (275,471)
---------------------------------------------------------------------------------------------------------------------
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.
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
PART II
---------------------------------------------------------------------------------------------------------------------
 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)                                                                                 $   21,479
---------------------------------------------------------------------------------------------------------------------
 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)                                                          $   18,414
---------------------------------------------------------------------------------------------------------------------
 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)                                                                                 $
---------------------------------------------------------------------------------------------------------------------

                                                      Page 2 of 2


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

<PAGE> 57

                    WASHINGTON COURTS LIMITED PARTNERSHIP
                          HUD PROJECT NO: 071-35593
------------------------------------------------------------------------------
                        STATEMENT OF PARTNERS' EQUITY










<TABLE>
<CAPTION>
                                                         FOR THE YEARS
                                                       ENDED DECEMBER 31,
                                                 -----------------------------
                                                     1998             1997
                                                 -----------------------------

<S>                                               <C>              <C>
S1100-010   BEGINNING OF YEAR                     $ 719,085        $1,014,328

3250        NET LOSS                               (354,874)         (275,471)

              Distributions                              --           (19,772)
------------------------------------------------------------------------------

3130        END OF YEAR                           $ 364,211        $  719,085
==============================================================================


------------------------------------------------------------------------------
See the accompanying notes to financial statements.                     Page 8
</TABLE>

<PAGE> 58

<TABLE>
                                         WASHINGTON COURTS LIMITED PARTNERSHIP
                                               HUD PROJECT NO: 071-35593
---------------------------------------------------------------------------------------------------------------------
                                                STATEMENT OF CASH FLOWS
                                                      PAGE 1 OF 2


<CAPTION>
                                                                                                 FOR THE YEARS
                                                                                               ENDED DECEMBER 31,
                                                                                       ------------------------------
                                                                             ACCOUNT        1998              1997
                                                                                       ------------------------------
<S>                                                                         <C>         <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
          Receipts:
S1200-010    Rental receipts                                                            $  945,328        $  958,685
S1200-020    Interest receipts                                                               2,739             6,229
S1200-030    Other operating receipts                                                        2,185            53,398
---------------------------------------------------------------------------------------------------------------------
S1200-040      Total Receipts                                                              950,252         1,018,312
---------------------------------------------------------------------------------------------------------------------

          Disbursements:
S1200-050    Administrative                                                                 98,694            88,043
S1200-070    Management fee                                                                 31,936            53,327
S1200-090    Utilities                                                                      86,102           136,348
S1200-100    Salaries and wages                                                             54,621                --
S1200-110    Operating and maintenance                                                     182,086           126,918
S1200-120    Real estate taxes                                                              35,298            36,305
S1200-140    Property insurance                                                             22,537            24,118
S1200-150    Miscellaneous taxes and insurance                                               5,640             7,660
S1200-160    Tenant security deposits                                                       (1,065)             (194)
S1200-180    Interest on mortgages                                                         460,112           466,746
S1200-210    Mortgage insurance premium (MIP)                                               27,194            25,267
S1200-220    Miscellaneous financial                                                            --               125
---------------------------------------------------------------------------------------------------------------------
S1200-230      Total Disbursements                                                       1,003,155           964,663
---------------------------------------------------------------------------------------------------------------------
S1200-240    NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                           (52,903)           53,649
---------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
S1200-245    Net (deposits to) withdrawals from the
               mortgage escrow account                                                      (6,823)            5,712
S1200-250    Net (deposits to) withdrawals from the
               reserve for replacement account                                               7,554           (19,889)
S1200-330    Net purchases of fixed assets                                                 (26,581)           (5,311)
---------------------------------------------------------------------------------------------------------------------
S1200-350    NET CASH USED IN INVESTING ACTIVITIES                                         (25,850)          (19,488)
---------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
S1200-360    Mortgage principal payments                                                   (25,596)          (21,479)
S1200-450    Other financing activities                                                         --               298
S1200-455    Entity/Construction financing activities:
  S1200-456    Administrative fee paid to general
                 partner                                                    S1200-457      (21,379)          (39,544)
---------------------------------------------------------------------------------------------------------------------
S1200-460    NET CASH USED IN FINANCING ACTIVITIES                                         (46,975)          (60,725)
---------------------------------------------------------------------------------------------------------------------

S1200-470    NET DECREASE IN CASH AND CASH EQUIVALENTS                                    (125,728)          (26,564)

S1200-480    BEGINNING OF PERIOD CASH                                                      148,343           174,907
---------------------------------------------------------------------------------------------------------------------

S1200T     END OF PERIOD CASH                                                           $   22,615        $  148,343
=====================================================================================================================


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

<PAGE> 59

                                         WASHINGTON COURTS LIMITED PARTNERSHIP
                                               HUD PROJECT NO: 071-35593
---------------------------------------------------------------------------------------------------------------------
                                                STATEMENT OF CASH FLOWS
                                                      PAGE 2 OF 2




<CAPTION>
                                                                                                 FOR THE YEARS
                                                                                               ENDED DECEMBER 31,
                                                                                       ------------------------------
                                                                             ACCOUNT        1998              1997
                                                                                       ------------------------------
<S>                                                                          <C>        <C>                <C>
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED
  BY (USED IN) OPERATING ACTIVITIES
3250         Net loss                                                                   $ (354,874)       $ (275,471)
               Adjustments to reconcile net loss to net cash
                 provided by (used in) operating activities:
6600             Depreciation                                                              266,164           261,543
6610             Amortization                                                               18,984            18,984
                   Change in assets and liabilities:
S1200-490            Decrease in tenant accounts
                       receivable                                                           12,732             1,773
S1200-500            (Increase) decrease in accounts
                       receivable - other                                                    6,870              (786)
S1200-510            Decrease in accrued receivable                                             --               177
S1200-520            Decrease in prepaid expenses                                              792               490
S1200-530            (Increase) decrease in cash restricted
                       for tenant security deposits                                            883              (157)
S1200-540            Increase (decrease) in accounts payable                               (44,816)           26,973
S1200-560            Increase in accrued liabilities                                        15,392                --
S1200-570            Increase in accrued interest payable                                    4,249                --
S1200-580            Increase in tenant security deposits
                       held in trust                                                           182               351
S1200-590            Increase in prepaid revenue                                               767                --
S1200-605            Increase in entity/construction
                       liability accounts
  S1200-606            Administrative fee paid to general
                         partner                                             S1200457       19,772            19,772
---------------------------------------------------------------------------------------------------------------------

S1200-610  NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                          $  (52,903)       $   53,649
=====================================================================================================================


---------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.                                                           Page 10
</TABLE>

<PAGE> 60

                    WASHINGTON COURTS LIMITED PARTNERSHIP
                          HUD PROJECT NO: 071-35593
------------------------------------------------------------------------------
                        NOTES TO FINANCIAL STATEMENTS
                          DECEMBER 31, 1998 AND 1997



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

      ORGANIZATION (S3100-010)

      The Partnership is 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 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 (IDHA)
      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, 1998.

      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,
          1998 or 1997 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.

          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.

      Income or loss of the Partnership is allocated 1.005% to the general
      partners and 98.995%

------------------------------------------------------------------------------
                                                                       Page 11

<PAGE> 61

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


      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>
                                                               1998           1997
                                                           ------------------------
      <S>                                                    <C>             <C>
      Loan costs, less amortization                          $556,754        $ --
      Low income housing credit fees, less amortization         2,053          --
                                                           ------------------------
                                                             $558,807        $ --
                                                           ========================
</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.

      The scheduled maturities of the mortgage payable at December 31, 1998
      are as follows: (S3100-x1x)

<TABLE>
<CAPTION>
                YEAR               ACCOUNT               AMOUNT
           -------------------------------------------------------
            <S>                   <C>                  <C>
            1999                  S3100-060            $   28,282
            2000                  S3100-070                31,013
            2001                  S3100-080                34,007
            2002                  S3100-090                37,289
            2003                  S3100-100                40,575
            Thereafter            S3100-110             4,836,321
           -------------------------------------------------------

                                                       $5,007,487
           =======================================================
</TABLE>

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

<PAGE> 62

WASHINGTON COURTS LIMITED PARTNERSHIP
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Notes To Financial Statements (Continued)


4.    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

      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 each period
      that the agreement for housing assistance program with HUD is in
      existence without their approval.

5.    RELATED PARTY TRANSACTIONS (S3100-200)

      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 to 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 and $69,876
      at December 31, 1998 and 1997, respectively.

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<PAGE> 63

      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 to 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 to 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, 1998 amounted to $228,785.

      MANAGEMENT FEE (S3100-230)
      The apartment project was managed by a corporation which is a general
      partner for the first four months of the year and received a fee of
      5.55% of rents collected.  Century Pacific Management Corporation,
      an affiliate of the general partner, took over management on May 1, 1998
      and receives a fee of 5.55% of rents collected.  The management fee was
      $47,068 in 1998 and $53,731 in 1997.  Management fees payable at
      December 31, 1998 and 1997 are $20,744 and $5,612, respectively.

<TABLE>
      <S>         <C>                  <C>
      S3100-210   COMPANY NAME         Century Pacific Realty Corporation
                                      ------------------------------------
      S3100-220   AMOUNT RECEIVED      $21,379
                                      ---------
      S3100-210   COMPANY NAME         Century Pacific Management Corporation
                                      ----------------------------------------
      S3100-220   AMOUNT RECEIVED      $15,000
                                      ---------
      S3100-210   COMPANY NAME         Shorebank Development Corporation
                                      -----------------------------------
      S3100-220   AMOUNT RECEIVED      $16,936
                                      ---------
</TABLE>


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