FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                   QUARTERLY REPORT UNDER SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended                               March 31, 2003
                                                    --------------

Commission file number                                 1-11059
                                                       -------



              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.
              -----------------------------------------------------
               (Exact name of registrant as specified in charter)


          California                                 13-3257662
-------------------------------         ------------------------------------
(State or other jurisdiction of         (I.R.S. Employer Identification No.)
 incorporation or organization)

11200 Rockville Pike, Rockville, Maryland              20852
-----------------------------------------            ----------
(Address of principal executive offices)             (Zip Code)

                                 (301) 816-2300
            ----------------------------------------------------
            (Registrant's telephone number, including area code)



     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during the  preceding  12 months and (2) has been  subject to such  filing
requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

     As of March 31, 2003,  12,079,514  depositary units of limited  partnership
interest were outstanding.


<PAGE>2


              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.

                               INDEX TO FORM 10-Q

                      FOR THE QUARTER ENDED MARCH 31, 2003
<TABLE>
<CAPTION>
                                                                                   Page
                                                                                   ----
<S>           <C>                                                                   <C>
PART I.       Financial Information

Item 1.       Financial Statements

                Balance Sheets - March 31, 2003  (unaudited) and
                  December 31, 2002                                                  3

                Statements of Income and Comprehensive Income - for the
                  three months ended March 31, 2003 and 2002 (unaudited)             4

                Statement of Changes in Partners' Equity - for the three
                  months ended March 31, 2003 (unaudited)                            5

                Statements of Cash Flows - for the three months ended
                  March 31, 2003 and 2002 (unaudited)                                6

                Notes to Financial Statements (unaudited)                            7

Item 2.       Management's Discussion and Analysis of Financial Condition
                and Results of Operations                                           14

Item 3.       Qualitative and Quantitative Disclosures about Market Risk            16

Item 4.       Controls and Procedures                                               16

PART II.      Other Information

Item 6.       Exhibits and Reports on Form 8-K                                      17

Signature                                                                           18

Certifications                                                                      19

</TABLE>


<PAGE>3

PART I.   FINANCIAL INFORMATION
ITEM 1.   FINANCIAL STATEMENTS


              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                            March 31,       December 31,
                                                              2003              2002
                                                          ------------      ------------
<S>                                                       <C>               <C>
                                                          (Unaudited)
                        ASSETS

Investment in FHA-Insured Certificates and GNMA
  Mortgage-Backed Securities, at fair value
    Acquired insured mortgages                            $ 32,589,641      $ 33,849,089
    Originated insured mortgages                            15,945,207        15,986,295
                                                          ------------      ------------
                                                            48,534,848        49,835,384


Investment in FHA-Insured Loans, at amortized cost,
  net of unamortized discount and premium:
    Acquired insured mortgages                               5,007,528         7,176,274
    Originated insured mortgages                             9,282,681         9,311,907
                                                          ------------      ------------
                                                            14,290,209        16,488,181

Cash and cash equivalents                                    4,946,952        10,448,516

Receivables and other assets                                   779,485         1,465,453

Investment in debenture, at fair value                       1,812,914                 -
                                                          ------------      ------------
      Total assets                                        $ 70,364,408      $ 78,237,534
                                                          ============      ============

           LIABILITIES AND PARTNERS' EQUITY

Distributions payable                                     $  3,896,617      $ 10,181,484

Accounts payable and accrued expenses                          285,033           115,799

Due to affiliate                                               920,903                 -
                                                           -----------      ------------
      Total liabilities                                      5,102,553        10,297,283
                                                           -----------      ------------
Partners' equity:
  Limited partners' equity, 15,000,000 Units authorized,
    12,079,514 Units issued and outstanding                 71,105,562        73,382,252
  General partner's deficit                                 (6,945,692)       (6,853,298)
  Accumulated other comprehensive income                     1,101,985         1,411,297
                                                          ------------      ------------
      Total partners' equity                                65,261,855        67,940,251
                                                          ------------      ------------
      Total liabilities and partners' equity              $ 70,364,408      $ 78,237,534
                                                          ============      ============
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.


<PAGE>4

PART I.   FINANCIAL INFORMATION
ITEM 1.   FINANCIAL STATEMENTS


              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.

                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                               For the three months ended
                                                                        March 31,
                                                                 2003              2002
                                                             ------------      ------------
<S>                                                          <C>               <C>
Income:
  Mortgage investment income                                 $  1,321,225      $  1,620,471
  Interest and other income                                        24,024           106,204
                                                             ------------      ------------
                                                                1,345,249         1,726,675
                                                             ------------      ------------
Expenses:
  Asset management fee to related parties                         163,451           189,781
  General and administrative                                      107,091            98,974
                                                             ------------      ------------
                                                                  270,542           288,755
                                                             ------------      ------------
Net earnings before gains on
  mortgage dispositions                                         1,074,707         1,437,920

Gains on mortgage dispositions                                    452,826         1,169,159
                                                             ------------      ------------

Net earnings                                                 $  1,527,533      $  2,607,079
                                                             ============      ============
Other comprehensive loss - adjustment to
  unrealized gains on investments in insured mortgages           (309,312)       (1,104,131)
                                                             ------------      ------------
Comprehensive income                                         $  1,218,221      $  1,502,948
                                                             ============      ============

Net earnings allocated to:
  Limited partners - 96.1%                                   $  1,467,959      $  2,505,403
  General Partner -   3.9%                                         59,574           101,676
                                                             ------------      ------------
                                                             $  1,527,533      $  2,607,079
                                                             ============      ============
Net earnings per Unit of limited
  partnership interest - basic                               $       0.12      $       0.21
                                                             ============      ============
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.

<PAGE>5

PART I.           FINANCIAL INFORMATION
ITEM 1.           FINANCIAL STATEMENTS


              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' EQUITY

                    For the three months ended March 31, 2003

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                          Accumulated
                                                                                             Other
                                                        General           Limited        Comprehensive
                                                        Partner           Partners           Income            Total
                                                     -------------     -------------     -------------     -------------
<S>                                                  <C>               <C>               <C>               <C>
Balance, December 31, 2002                           $  (6,853,298)    $  73,382,252     $   1,411,297     $  67,940,251

  Net earnings                                              59,574         1,467,959                 -         1,527,533

  Adjustment to unrealized gains on
     investments in insured mortgages                            -                 -          (309,312)         (309,312)

  Distributions paid or accrued of $0.310 per Unit,
     including return of capital of $0.190 per Unit       (151,968)       (3,744,649)                -        (3,896,617)
                                                     -------------     -------------     -------------     -------------
Balance, March 31, 2003                              $  (6,945,692)    $  71,105,562     $   1,101,985     $  65,261,855
                                                     =============     =============     =============     =============

Limited Partnership Units outstanding - basic, as
  of March 31, 2003                                                       12,079,514
                                                                          ==========
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.


<PAGE>6

PART I.   FINANCIAL INFORMATION
ITEM 1.   FINANCIAL STATEMENTS


              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.

                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                      For the three months ended
                                                                                               March 31,

                                                                                        2003              2002
                                                                                    ------------      ------------
<S>                                                                                 <C>               <C>
Cash flows from operating activities:
   Net earnings                                                                     $  1,527,533      $  2,607,079
   Adjustments to reconcile net earnings to net cash provided by operating
     activities:
      Gains on mortgage dispositions                                                    (452,826)       (1,169,159)
      Changes in assets and liabilities:
         Net decrease in receivables and other assets                                     91,375           708,321
         Increase in accounts payable and accrued expenses                               169,234            16,050
         Increase (decrease) in due to affiliate                                          14,447           (42,487)
                                                                                    ------------      ------------

            Net cash provided by operating activities                                  1,349,763         2,119,804
                                                                                    ------------      ------------

Cash flows from investing activities:
   Proceeds from mortgage prepayments                                                    949,721         3,682,282
   Proceeds from mortgage assignments                                                  1,469,078         6,759,242
   Proceeds from redemption of debenture                                                 744,159         2,385,233
   Debenture proceeds paid to affiliate                                                        -        (1,192,617)
   Receipt of mortgage principal from scheduled payments                                 167,199           158,286
                                                                                    ------------      ------------

            Net cash provided by investing activities                                  3,330,157        11,792,426
                                                                                    ------------      ------------

Cash flows used in financing activities:
   Distributions paid to partners                                                    (10,181,484)       (1,885,460)
                                                                                    ------------      ------------

Net (decrease) increase in cash and cash equivalents                                  (5,501,564)       12,026,770

Cash and cash equivalents, beginning of period                                        10,448,516         4,366,085
                                                                                    ------------      ------------

Cash and cash equivalents, end of period                                            $  4,946,952      $ 16,392,855
                                                                                    ============      ============

Non-cash investing activity:
   Portion of 7.125% - 7.5% debentures due from a third party in exchange
      for the mortgages on Country Club Terrace Apartments,
      Nevada Hills Apartments and Dunhaven Apartments                               $          -      $  3,431,297
   6.375% debenture received from HUD in exchange for the mortgage
      on Baypoint Shoreline Apartments                                                 1,812,914                 -
   Portion of 6.375% debenture due to affiliate in exchange
      for the mortgage on Baypoint Shoreline Apartments                                 (906,456)                -
   9% of proceeds due from HUD for the mortgage on Westbrook Apartments                  149,566                 -


</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.


<PAGE>7

              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

1.   ORGANIZATION

     American Insured Mortgage  Investors - Series 85, L.P. (the  "Partnership")
was  formed   pursuant  to  a  limited   partnership   agreement,   as  amended,
("Partnership Agreement") under the Uniform Limited Partnership Act of the state
of  California  on June 26,  1984.  During  the  period  from March 8, 1985 (the
initial closing date of the  Partnership's  public offering) through January 27,
1986 (the  termination date of the offering),  the Partnership,  pursuant to its
public offering of 12,079,389  Depository Units of limited partnership  interest
("Units")  raised a total of $241,587,780 in gross  proceeds.  In addition,  the
initial limited partner contributed $2,500 to the capital of the Partnership and
received 125 units of limited partnership interest in exchange therefor.

     CRIIMI, Inc., a wholly-owned  subsidiary of CRIIMI MAE Inc. ("CRIIMI MAE"),
acts as the General  Partner (the  "General  Partner") for the  Partnership  and
holds a partnership  interest of 3.9%. The General Partner  provides  management
and  administrative  services  on behalf  of the  Partnership.  AIM  Acquisition
Partners  L.P.  serves as the advisor (the  "Advisor") to the  Partnership.  The
general   partner  of  the  Advisor  is  AIM   Acquisition   Corporation   ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, The
Goldman Sachs Group, L.P., Sun America  Investments,  Inc.  (successor to Broad,
Inc.) and CRI/AIM  Investment,  L.P.,  a  subsidiary  of CRIIMI MAE,  over which
CRIIMI  MAE  exercises  100%  voting  control.  AIM  Acquisition  is a  Delaware
corporation  that is primarily  owned by Sun America  Investments,  Inc. and The
Goldman Sachs Group, L.P.

     Pursuant  to the terms of certain  origination  and  acquisition  services,
management services and disposition  services agreements between the Advisor and
the Partnership  (collectively the "Advisory  Agreements"),  the Advisor renders
services to the Partnership, including but not limited to, the management of the
Partnership's  portfolio of mortgages and the  disposition of the  Partnership's
mortgages. Such services are subject to the review and ultimate authority of the
General Partner. However, the General Partner is required to receive the consent
of the Advisor prior to taking certain  significant  actions,  including but not
limited to the  disposition of mortgages,  any transaction or agreement with the
General  Partner  or its  affiliates,  or any  material  change  as to  policies
regarding  distributions  or  reserves  of  the  Partnership  (collectively  the
"Consent Rights"). The Advisor is permitted and has delegated the performance of
services to CRIIMI MAE Services Limited Partnership  ("CMSLP"),  a subsidiary of
CRIIMI  MAE,   pursuant  to  a  sub-management   agreement  (the   "Sub-Advisory
Agreement").  The general partner and limited partner of CMSLP are  wholly-owned
subsidiaries  of CRIIMI MAE. The  delegation  of such services by the Advisor to
CMSLP does not relieve the Advisor of its  obligation to perform such  services.
Furthermore the Advisor has retained its Consent Rights.

     The General Partner also serves as the General Partner for American Insured
Mortgage Investors ("AIM 84"), American Insured Mortgage Investors L.P. - Series
86 ("AIM 86") and American  Insured  Mortgage  Investors  L.P. - Series 88 ("AIM
88") and  owns  general  partner  interests  therein  of  2.9%,  4.9% and  4.9%,
respectively.  The  Partnership,  AIM  84,  AIM 86 and  AIM 88 are  collectively
referred to as the "AIM Limited Partnerships".

     Prior to December  1993,  the  Partnership  was engaged in the  business of
originating  government insured mortgage loans ("Originated  Insured Mortgages")
and acquiring  government  insured mortgage loans ("Acquired  Insured Mortgages"
and, together with Originated Insured Mortgages,  referred to herein as "Insured
Mortgages").  In accordance  with the terms of the  Partnership  Agreement,  the
Partnership is no longer  authorized to originate or acquire  Insured  Mortgages
and, consequently,  its primary objective is to manage its portfolio of mortgage
investments,  all of which are insured under Section 221(d)(4) or Section 231 of
the National  Housing Act of 1937, as amended (the "National  Housing Act"). The
Partnership Agreement states that the Partnership will terminate on December 31,
2009, unless terminated earlier under the provisions thereof. The Partnership is

<PAGE>8

required,  pursuant to the Partnership Agreement, to dispose of its assets prior
to this date.


2.   BASIS OF PRESENTATION

     In the opinion of the General Partner, the accompanying unaudited financial
statements  contain all adjustments of a normal  recurring  nature  necessary to
present  fairly the financial  position of the  Partnership as of March 31, 2003
and the results of its  operations and its cash flows for the three months ended
March 31, 2003 and 2002.

     These unaudited  financial  statements  have been prepared  pursuant to the
rules  and  regulations  of the  Securities  and  Exchange  Commission.  Certain
information  and  note  disclosures   normally   included  in  annual  financial
statements prepared in accordance with generally accepted accounting  principles
("GAAP") have been condensed or omitted. While the General Partner believes that
the  disclosures  presented are adequate to make the information not misleading,
these  financial  statements  should be read in  conjunction  with the financial
statements  and  the  notes  to  the  financial   statements   included  in  the
Partnership's Annual Report on Form 10-K for the year ended December 31, 2002.


3.   INVESTMENT IN GNMA MORTGAGE-BACKED SECURITIES AND FHA-INSURED CERTIFICATES

     Listed   below  is  the   Partnership's   aggregate   investment   in  GNMA
Mortgage-Backed Securities and FHA-Insured Certificates:
<TABLE>
<CAPTION>
                                                                 March 31,              December 31,
                                                                   2003                     2002
                                                               ------------             ------------
<S>                                                            <C>                      <C>
Acquired Mortgages:
  Number of:
    GNMA Mortgage-Backed Securities                                       2                        2
    FHA-Insured Certificates (1)                                         16                       17
  Amortized Cost                                               $ 31,499,950             $ 32,449,759
  Face Value                                                     32,017,495               33,076,449
  Fair Value                                                     32,589,641               33,849,089

Originated Mortgages:
  Number of:
    GNMA Mortgage-Backed Securities                                       1                        1
    FHA-Insured Certificates                                              1                        1
  Amortized Cost                                               $ 15,932,912             $ 15,974,329
  Face Value                                                     15,932,911               15,974,328
  Fair Value                                                     15,945,207               15,986,295

</TABLE>

(1)  In March 2003,  the mortgage on  Stonebridge  Apartments  was prepaid.  The
     Partnership received net proceeds of approximately  $950,000 and recognized
     a gain of  approximately  $93,000  during the three  months ended March 31,
     2003.  A  distribution  of  approximately  $0.075  per Unit  related to the
     prepayment  of this  mortgage  was  declared in April and is expected to be
     paid to Unitholders in August 2003.

     As of  May  1,  2003,  all  of  the  GNMA  Mortgage-Backed  Securities  and
FHA-Insured  Certificates  are current  with respect to the payment of principal
and interest  except for the  mortgage on Magnolia  Place  Apartments,  which is
delinquent with respect to the April 2003 payment of principal and interest.

<PAGE>9


     The Section 221 Program
     -----------------------

     There are five Insured  Mortgages held by the Partnership,  as discussed in
this  Note 3 and in Note 4, that have  been  assigned  to HUD under the  Section
221(g)(4)  program of the National  Housing Act (the  "Section 221  Program.") A
mortgagee  has the right to  assign a  mortgage  ("put")  to the  United  States
Department  of Housing and Urban  Development  ("HUD") at the  expiration  of 20
years from the date of final endorsement ("Anniversary Date") if the mortgage is
not in default at such time.  The  mortgagee  may exercise its option to put the
mortgage to HUD during the one year period  subsequent to the Anniversary  Date.
This assignment procedure is applicable to an Insured Mortgage, which had a firm
or conditional  commitment for HUD insurance  benefits on or before November 30,
1983. Any mortgagee  electing to assign an Insured Mortgage to HUD receives,  in
exchange  therefor,  debentures  having a total face value equal to (i) the then
outstanding principal balance of the Insured Mortgage (ii) plus accrued interest
on the mortgage to the date of assignment  ("Debenture  Issuance  Date").  These
debentures  generally  mature  10 years  from the  date of  assignment  and bear
interest  at a rate  announced  semi-annually  by HUD  in the  Federal  Register
("going Federal rate") at such date. Generally, the Partnership is not the named
mortgagee for the FHA-Insured Certificates. In this case, the HUD debentures are
generally  issued to an unrelated third party that is the named  mortgagee.  The
servicer  of the  applicable  mortgage  is  responsible  for  delivering  to the
Partnership all HUD insurance claim proceeds.  The debenture interest is paid to
the  Partnership  in the month it is received  by the  servicer.  The  debenture
proceeds are paid to the  Partnership  in the month the debenture is redeemed by
HUD  or  sold  by the  servicer.  Based  on the  recommendation  of  CMSLP,  the
sub-advisor,  and the consent of the Advisor,  the General  Partner may elect to
put Insured  Mortgages to HUD,  based upon, in general,  but not limited to, (i)
the interest rates on mortgages, (ii) the interest rates on debentures issued by
HUD and (iii) the costs and risks associated with continuing to hold the Insured
Mortgages.

     Once the  servicer  of an Insured  Mortgage  has filed an  application  for
insurance  benefits  ("HUD put date") under the Section 221 program on behalf of
the Partnership,  the Partnership  will no longer receive the monthly  principal
and interest on the applicable  mortgage,  and instead, HUD will begin receiving
the  monthly  principal  and  interest.  HUD issues  debentures  at the time the
mortgage  is  assigned  to HUD  (approximately  30 days after the HUD put date);
however, the debentures are not transferred to the mortgagee until HUD completes
its assignment  process of the Insured Mortgage.  Based on the General Partner's
experience,  HUD's assignment process is generally six to eighteen months. After
HUD completes its assignment process for the Insured Mortgage,  HUD transfers to
the mortgagee (i) HUD debentures, as discussed above, (ii) plus cash for accrued
interest  on the  debentures  at the  going  Federal  rate,  from the  Debenture
Issuance  Date to the  most  current  interest  payment  date.  Thereafter,  the
mortgagee  receives interest on the debentures on the semi-annual  payment dates
of January 1 and July 1. The going Federal rate for HUD debentures  issued under
the  Section  221  Program  for the period  January 1 through  June 30, 2002 was
6.375%;  for the period July 1 through December 31, 2002 it was 6.625%;  and for
the period  January 1 through June 30, 2003 it is 5.75%.  The  Partnership  will
recognize a gain on a mortgage  assignment at the time it receives  notification
that the assignment has been approved.  HUD assignment approval generally occurs
when HUD transfers the debentures to the mortgagee  and/or when the  Partnership
receives  cash for the  accrued  interest  on the  debentures.  The  Partnership
recognizes a loss on a mortgage  assignment when it becomes probable that a loss
will be incurred.  The gain or loss  recognized  is generally  equal to proceeds
received from HUD, as discussed  above,  less the amortized  cost of the Insured
Mortgage.

     Mortgages in the Section 221 HUD assignment process
     ---------------------------------------------------

     The  Mortgage  on  Executive  House was put to HUD under  the  Section  221
Program by the  servicer  in April  2002.  The face value of this  mortgage  was
approximately  $805,000  as of the HUD  put  date.  The  Partnership  no  longer

<PAGE>10

receives monthly principal and interest from mortgages that are put to HUD under
the Section 221 Program. HUD receives the monthly principal and interest and the
Partnership earns semi-annual interest on debentures issued by HUD, as discussed
above.  The Partnership has not received  approval for this assignment as of May
1,  2003,  and will  continue  to  accrue  interest  on the  mortgage  until the
debenture  is  transferred  to the  Partnership  and  it  begins  receiving  the
debenture interest. The fair value of this mortgage is included in Investment in
FHA-Insured   Certificates   and   GNMA   Mortgage-Backed   Securities   on  the
Partnership's balance sheet as of March 31, 2003 and December 31, 2002.

     Redemption of debenture
     -----------------------

     In January 2003, HUD redeemed the 7.5% debenture of approximately $758,000,
issued  in July  2002  for the  mortgage  on  Fairlawn  II.  A  distribution  of
approximately  $0.06 per Unit related to the debenture  proceeds was declared in
February 2003 and was paid to Unitholders  in May 2003. The accrued  interest of
approximately  $28,000  related to this  debenture  was also received in January
2003 and is being distributed through regular cash flow distributions.


4.   INVESTMENT IN FHA-INSURED LOANS

     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Loans:
<TABLE>
<CAPTION>
                                                                  March 31,              December 31,
                                                                   2003                     2002
                                                                ------------             -----------
<S>                                                             <C>                      <C>
  Acquired Loans:
    Number of Loans (1)(2)                                                4                        6
    Amortized Cost                                              $ 5,007,528              $ 7,176,274
    Face Value                                                    5,951,947                8,519,762
    Fair Value                                                    5,962,878                8,513,052

  Originated Loans:
    Number of Loans                                                       2                        2
    Amortized Cost                                              $ 9,282,681              $ 9,311,907
    Face Value                                                    9,033,218                9,059,734
    Fair Value                                                    9,349,550                9,470,182

</TABLE>

(1)  In January 2003, the Partnership  received assignment proceeds from HUD for
     the mortgage on Westbrook Apartments. The servicer of this mortgage filed a
     Notice of Election to Assign in November  2002 as a result of principal and
     interest payments being over 60 days delinquent.  The Partnership  received
     net  proceeds of  approximately  $1.5  million,  which  included 90% of the
     unpaid principal  balance of this mortgage,  plus interest at the debenture
     rate of 9.875% from  September  2002 through  January  2003.  The remaining
     amount  due  from HUD is  approximately  $150,000  (representing  9% of the
     unpaid  principal  balance) and is included in Receivables and other assets
     on the  Partnership's  balance sheet as of March 31, 2003. The  Partnership
     recognized a gain of  approximately  $228,000 during the three months ended
     March 31, 2003. A distribution of  approximately  $0.12 per Unit related to
     the  assignment of this mortgage was declared in February 2003 and was paid
     to Unitholders in May 2003.
(2)  In February 2003, HUD transferred assignment proceeds to the Partnership in
     the form of a 6.375%  debenture  in exchange  for the  mortgage on Baypoint
     Shoreline  Apartments.  Since the mortgage on Baypoint Shoreline Apartments
     was owned 50% by the Partnership and 50% by AIM 84, approximately  $906,000
     of the debenture face is due to AIM 84. See further discussion in Note 5.

     As of May 1, 2003, all of the Partnership's  FHA-Insured Loans were current
with respect to the payment of principal and interest.

<PAGE>11


     In addition to base interest payments under Originated  Insured  Mortgages,
the Partnership is entitled to additional  interest based on a percentage of the
net cash flow from the underlying development (referred to as "Participations").
During the three months ended March 31, 2003 and 2002, the Partnership  received
additional  interest of $0 and $3,228,  respectively,  from the  Participations.
These  amounts,  if any,  are  included  in  mortgage  investment  income on the
accompanying Statements of Income and Comprehensive Income.

     Mortgages in the Section 221 HUD assignment process
     ---------------------------------------------------

     The mortgages on Brougham  Estates and College Green Apartments were put to
HUD under the Section 221 Program by the respective  servicers in February 2003.
The mortgages on Town Park  Apartments and Kaynorth  Apartments  were put to HUD
under the  Section 221 Program by the  respective  servicers  in March and April
2003,   respectively.   The  aggregate   face  value  of  these   mortgages  was
approximately  $6.0 million as of the HUD put dates.  The  Partnership no longer
receives monthly principal and interest from mortgages that are put to HUD under
the Section 221 Program. HUD receives the monthly principal and interest and the
Partnership earns semi-annual interest on debentures issued by HUD, as discussed
above. The Partnership has not received approval for these assignments as of May
1,  2003,  and will  continue  to accrue  interest  on the  mortgages  until the
debentures  are  transferred  to the  Partnership  and it begins  receiving  the
debenture  interest.  The  amortized  cost of these  mortgages  is  included  in
Investment in FHA-Insured Loans on the  Partnership's  balance sheet as of March
31, 2003.


5.   INVESTMENT IN DEBENTURE AND DUE TO AFFILIATE

     In February 2003, HUD transferred assignment proceeds to the Partnership in
the  form of a  6.375%  debenture  in  exchange  for the  mortgage  on  Baypoint
Shoreline  Apartments.  The servicer of this mortgage filed an  application  for
insurance  benefits  under the Section 221 Program in June 2002.  The debenture,
with a face value of approximately $1.8 million, pays interest  semi-annually on
January 1 and July 1 with a maturity date of June 27, 2012. The debenture may be
called by HUD prior to its maturity date. A distribution  will be declared after
the debenture  proceeds are received by the  Partnership.  Since the mortgage on
Baypoint  Shoreline  Apartments was owned 50% by the  Partnership and 50% by AIM
84,  approximately  $906,000 of the debenture face is due to AIM 84. In February
2003, the Partnership received approximately $59,000 in cash of accrued interest
on  this  debenture.   Approximately   $29,000  of  this  accrued  interest  was
transferred  to AIM 84 and  the  remaining  amount  will be  distributed  to the
Partnership's   Unitholders  through  regular  cash  flow   distributions.   The
Partnership  recognized a gain of approximately $131,000 during the three months
ended March 31, 2003.  The fair values of this  debenture and the portion due to
AIM  84  are  included  in   Investment  in  debenture  and  Due  to  affiliate,
respectively, on the Partnerships' balance sheet as of March 31, 2003.


<PAGE>12

6.   DISTRIBUTIONS TO UNITHOLDERS

     The  distributions  paid or accrued to  Unitholders on a per Unit basis for
the three months ended March 31, 2003 and 2002 are as follows:

                                       2003           2002
                                       ----           ----
Quarter ended March 31,               $0.31(1)       $1.325(2)
                                      -----          ------

                                      $0.31          $1.325
                                      =====          ======

     The following disposition proceeds are included in the distributions listed
above:
<TABLE>
<CAPTION>
                                                                         Date                        Net
                                                                       Proceeds       Type of      Proceeds
           Complex Name(s)                                             Received     Disposition    Per Unit
           ---------------                                             --------     -----------    --------
      <S>                                                              <C>          <C>             <C>
      (1) Quarter ended March 31, 2003:
           Walnut Hills                                                Dec 2002     Prepayment      $0.040
           Westbrook Apartments                                        Jan 2003     Assignment       0.120
           Fairlawn II (redemption of 7.5% debenture)                  Jan 2003     Assignment       0.060
      (2) Quarter ended March 31, 2002:
           The Gate House Apartments                                   Dec 2001     Prepayment       0.220
           Longleaf Lodge                                              Jan 2002     Prepayment       0.290
           Fox Run Apartments (redemption of 7.125% debenture)         Jan 2002     Assignment       0.090
           Interest on debentures related to mortgages on Summit
              Square Manor, Park Place, Park Hill Apts, Fairfax
              House, Woodland Villas, Country Club Terrace Apts,       Jan - Feb
              Dunhaven Apts and Nevada Hills Apts                        2002       Assignment       0.060
           Summit Square Manor (redemption of 7.125% debenture)        Jan 2002     Assignment       0.150
           Park Place (redemption of 7.125% debenture)                 Jan 2002     Assignment       0.060
           Park Hill Apartments (redemption of 7.5% debenture)         Jan 2002     Assignment       0.140
           Fairfax House (redemption of 7.5% debenture)                Jan 2002     Assignment       0.170
           Woodland Villas (redemption of 7.125% debenture)            Jan 2002     Assignment       0.025

</TABLE>

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage and/or debenture  dispositions,  if any, and cash flow from operations,
which includes regular interest income and principal from Insured  Mortgages and
interest on  debentures.  Although  the Insured  Mortgages  pay a fixed  monthly
mortgage payment and the debentures have a fixed semi-monthly  interest payment,
the cash distributions paid to the Unitholders will vary during each quarter due
to (1) the fluctuating  yields in the short-term  money market where the monthly
mortgage payments and debenture  interest are temporarily  invested prior to the
payment of  quarterly  distributions,  (2) the  reduction  in the asset base and
monthly mortgage  payments  resulting from monthly mortgage payments received or
mortgage  and  debenture   dispositions,   (3)   variations  in  the  cash  flow
attributable to the delinquency or default of Insured Mortgages and professional
fees and foreclosure  costs incurred in connection with those Insured  Mortgages
and (4) variations in the Partnership's  operating expenses.  As the Partnership
continues  to  liquidate  its  mortgage   investments  and  Unitholders  receive
distributions of return of capital and taxable gains,  Unitholders should expect
a reduction in earnings and distributions due to the decreasing mortgage base.


<PAGE>13

7.   TRANSACTIONS WITH RELATED PARTIES

     The  General  Partner and certain  affiliated  entities  earned or received
compensation or payments for services from the Partnership as follows:

<TABLE>
<CAPTION>
                 COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
                 -----------------------------------------------
                                                                                               For the
                                                                                          three months ended
                                                                                               March 31,

      Name of Recipient                    Capacity in Which Served/Item                   2003        2002
      -----------------                    -----------------------------                   ----        ----
<S>                                 <C>                                                 <C>         <C>
CRIIMI, Inc. (1)                    General Partner/Distribution                        $ 151,968   $ 649,541

AIM Acquisition Partners, L.P.(2)   Advisor/Asset Management Fee                          163,451     189,781

CRIIMI MAE Management, Inc.(3)      Affiliate of General Partner/Expense Reimbursement     18,235      15,342

</TABLE>

(1)  The General Partner,  pursuant to the Partnership Agreement, is entitled to
     receive 3.9% of the Partnership's  income, loss, capital and distributions,
     including,   without  limitation,  the  Partnership's  adjusted  cash  from
     operations  and proceeds of mortgage  prepayments,  sales or insurance  (as
     defined in the Partnership Agreement).

(2)  The Advisor, pursuant to the Partnership Agreement, is entitled to an Asset
     Management Fee equal to 0.95% of Total  Invested  Assets (as defined in the
     Partnership  Agreement).  CMSLP, pursuant to the Sub-Advisory Agreement, is
     entitled  to a fee of 0.28% of Total  Invested  Assets  from the  Advisor's
     Asset  Management  Fee. Of the amounts paid to the Advisor,  CMSLP earned a
     fee equal to $48,172 and $55,945 for the three  months ended March 31, 2003
     and 2002,  respectively.  The general  partner and limited partner of CMSLP
     are wholly owned subsidiaries of CRIIMI MAE.

(3)  CRIIMI MAE  Management,  Inc.,  an  affiliate  of the General  Partner,  is
     reimbursed  for  personnel  and  administrative  services on an actual cost
     basis.


<PAGE>14

PART I.   FINANCIAL INFORMATION
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS. When used in this Quarterly Report on Form 10-Q, the
words  "believe,"  "anticipate,"  "expect,"  "contemplate,"  "may,"  "will," and
similar  expressions  are  intended  to  identify  forward-looking   statements.
Statements looking forward in time are included in this Quarterly Report on Form
10-Q  pursuant  to  the  "safe  harbor"  provision  of  the  Private  Securities
Litigation  Reform Act of 1995. Such statements are subject to certain risks and
uncertainties,   which  could  cause  actual   results  to  differ   materially.
Accordingly,  the following information contains or may contain  forward-looking
statements:  (1)  information  included or  incorporated  by  reference  in this
Quarterly Report on Form 10-Q,  including,  without limitation,  statements made
under Item 2,  Management's  Discussion and Analysis of Financial  Condition and
Results of Operations,  (2) information included or incorporated by reference in
prior and future  filings by the  Partnership  with the  Securities and Exchange
Commission ("SEC")  including,  without  limitation,  statements with respect to
growth,  projected  revenues,  earnings,  returns and yields on its portfolio of
mortgage assets, the impact of interest rates, costs and business strategies and
plans and (3)  information  contained  in written  material,  releases  and oral
statements  issued by or on  behalf  of,  the  Partnership,  including,  without
limitation,  statements with respect to growth,  projected  revenues,  earnings,
returns and yields on its portfolio of mortgage  assets,  the impact of interest
rates, costs and business  strategies and plans.  Factors which may cause actual
results  to  differ  materially  from  those  contained  in the  forward-looking
statements  identified above include,  but are not limited to (i) regulatory and
litigation  matters,  (ii)  interest  rates,  (iii) trends in the economy,  (iv)
prepayment  of  mortgages,  (v)  defaulted  mortgages,  (vi) errors in servicing
defaulted  mortgages and (vii) sales of mortgage  investments  below fair market
value.   Readers  are   cautioned   not  to  place   undue   reliance  on  these
forward-looking statements, which speak only of the date hereof. The Partnership
undertakes no obligation to publicly revise these forward-looking  statements to
reflect events or  circumstances  occurring  after the date hereof or to reflect
the occurrence of unanticipated events.

Mortgage Investments
--------------------

     As of March 31, 2003, the Partnership had invested in 26 Insured  Mortgages
and one  debenture  with an  aggregate  amortized  cost of  approximately  $62.6
million, an aggregate face value of approximately $63.8 million and an aggregate
fair value of  approximately  $64.8 million.  Five of these mortgages are in the
Section  221 HUD  assignment  process  as  discussed  in the Notes to  Financial
Statements. During the first quarter of 2003, two mortgages were assigned to HUD
and one prepaid as discussed in "Results of Operations."

     In January 2003, HUD redeemed the 7.5% debenture of approximately $758,000,
issued  in July  2002  for the  mortgage  on  Fairlawn  II.  A  distribution  of
approximately  $0.06 per Unit related to the debenture  proceeds was declared in
February 2003 and was paid to Unitholders  in May 2003. The accrued  interest of
approximately  $28,000  related to this  debenture  was also received in January
2003 and is being distributed through regular cash flow distributions.

     As of May 1, 2003, all of the Insured Mortgages are current with respect to
the payment of principal and interest, except for the mortgage on Magnolia Place
Apartments,  which is  delinquent  with  respect  to the April  2003  payment of
principal and interest.

Results of Operations
---------------------

     Net earnings  decreased by approximately  $1.1 million for the three months
ended March 31, 2003, as compared to the corresponding period in 2002, primarily
due to a decrease  in gains on mortgage  dispositions  and  mortgage  investment
income, as discussed below.

<PAGE>15

     Mortgage  investment  income  decreased by  approximately  $299,000 for the
three months ended March 31, 2003,  as compared to the  corresponding  period in
2002,  primarily  due to a reduction in the  mortgage  base.  The mortgage  base
decreased as a result of ten mortgage  dispositions with an aggregate  principal
balance of approximately $14.8 million, representing an approximate 19% decrease
in the aggregate  principal balance of the total mortgage  portfolio since April
2002.

     Interest and other income decreased by approximately  $82,000 for the three
months ended March 31, 2003,  as compared to the  corresponding  period in 2002,
primarily  due to a decrease in debenture  interest and due to variations in the
amounts  and the timing of the  temporary  investment  of  mortgage  disposition
proceeds prior to distribution.

     Asset  management  fees  decreased by  approximately  $26,000 for the three
months ended March 31, 2003,  as compared to the  corresponding  period in 2002,
primarily due to the reduction in the mortgage base, as previously discussed.

     General and administrative  expenses increased by approximately  $8,000 for
the three months ended March 31, 2003, as compared to the  corresponding  period
in 2002, primarily due to an increase in professional fees.

     Gains on mortgage dispositions  decreased by approximately $716,000 for the
three months ended March 31, 2003,  as compared to the  corresponding  period in
2002.  During the first three months of 2003, the Partnership  recognized a gain
of  approximately  $93,000 from the  prepayment  of the mortgage on  Stonebridge
Apartments  and  gains of  approximately  $359,000  from the  assignment  of the
mortgages on Westbrook Apartments and Baypoint Shoreline Apartments.  During the
first three months of 2002, the Partnership  recognized a gain of  approximately
$672,000  from the  prepayment  of the  mortgage on Longleaf  Lodge and gains of
approximately  $497,000  from the  assignment  of the  mortgages on Country Club
Terrace Apartments, Dunhaven Apartments and Nevada Hills Apartments.

Liquidity and Capital Resources
-------------------------------

     The  Partnership's  operating  cash  receipts,  derived  from  payments  of
principal and interest on Insured  Mortgages,  interest on  debentures  and cash
receipts from interest on short-term investments,  were sufficient for the three
months ended March 31, 2003 to meet operating requirements. The basis for paying
distributions  to  Unitholders  is net proceeds from mortgage  and/or  debenture
dispositions,  if any, and cash flow from  operations,  which  includes  regular
interest income and principal from Insured Mortgages and interest on debentures.
Although the Insured  Mortgages  pay a fixed  monthly  mortgage  payment and the
debentures have a fixed  semi-monthly  interest payment,  the cash distributions
paid to the Unitholders will vary during each quarter due to (1) the fluctuating
yields in the short-term  money market where the monthly  mortgage  payments and
debenture  interest are  temporarily  invested prior to the payment of quarterly
distributions, (2) the reduction in the asset base and monthly mortgage payments
resulting  from monthly  mortgage  payments  received or mortgage and  debenture
dispositions, (3) variations in the cash flow attributable to the delinquency or
default  of  Insured  Mortgages  and  professional  fees and  foreclosure  costs
incurred in connection  with those Insured  Mortgages and (4)  variations in the
Partnership's  operating expenses. As the Partnership continues to liquidate its
mortgage investments and Unitholders receive  distributions of return of capital
and  taxable  gains,  Unitholders  should  expect a reduction  in  earnings  and
distributions due to the decreasing mortgage base.

     Net cash  provided  by  operating  activities  decreased  by  approximately
$770,000  for the  three  months  ended  March  31,  2003,  as  compared  to the
corresponding  period in 2002,  primarily  due to a decrease  in the  receipt of
interest  previously accrued on mortgages awaiting assignment from HUD under the
Section  221  program  and a reduction  in  mortgage  investment  income.  These
decreases  are partially  offset by an increase in accounts  payable and accrued

<PAGE>16

expenses.  The  increase in accounts  payable  and  accrued  expenses  primarily
relates to the timing of the payment of the quarterly  asset  management  fee to
the Advisor.

     Net cash provided by investing  activities  decreased by approximately $8.5
million  for  the  three  months  ended  March  31,  2003,  as  compared  to the
corresponding  period in 2002,  primarily due to decreases in proceeds  received
from mortgage  prepayments,  mortgage  assignments and redemption of debentures.
These decreases were partially offset by debenture proceeds paid to an affiliate
in 2002.

     Net cash used in  financing  activities  increased  by  approximately  $8.3
million  for  the  three  months  ended  March  31,  2003,  as  compared  to the
corresponding  period in 2002, due to an increase in the amount of distributions
paid to partners in the first three  months of 2003  compared to the same period
in 2002.


ITEM 3.   QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

     Management has determined  that there has not been a material  change as of
March 31,  2003,  in market  risk from  December  31,  2002 as  reported  in the
Partnership's Annual Report on Form 10-K as of December 31, 2002.


ITEM 4.   CONTROLS AND PROCEDURES

     Within 90 days prior to the date of filing  this  Quarterly  Report on Form
10-Q, the General Partner  carried out an evaluation,  under the supervision and
with the  participation  of the  General  Partner's  management,  including  the
General  Partner's  Chairman of the Board and Chief Executive  Officer (CEO) and
the Chief  Financial  Officer  (CFO),  of the  effectiveness  of the  design and
operation of its  disclosure  controls and  procedures  pursuant to Exchange Act
Rule  13a-14.  Based  on that  evaluation,  the  General  Partner's  CEO and CFO
concluded that its  disclosure  controls and procedures are effective and timely
in alerting them to material information relating to the Partnership required to
be included in the Partnership's periodic SEC filings. There were no significant
changes in the General  Partner's  internal  controls or in other  factors  that
could significantly affect these internal controls subsequent to the date of its
most  recent  evaluation,  including  any  corrective  actions  with  regard  to
significant deficiencies and material weaknesses.



<PAGE>17

PART II.  OTHER INFORMATION
ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)      Exhibits

              Exhibit No.                        Purpose
              -----------                        -------
                 99.1                  Certification pursuant to Section 906 of
                                       the Sarbanes-Oxley Act of 2002 from
                                       Barry S. Blattman, Chairman of the Board,
                                       Chief Executive Officer and President of
                                       the General Partner (Filed herewith).

                 99.2                  Certification pursuant to Section 906 of
                                       the Sarbanes-Oxley Act of 2002 from
                                       Cynthia O. Azzara, Senior Vice President,
                                       Chief Financial Officer and Treasurer of
                                       the General Partner (Filed herewith).

     (b)      Reports on Form 8-K

              Date
              ----
              March 26, 2003          To report (i) a press release issued on
                                      March 21, 2003 announcing the March 2003
                                      distribution to the Partnership's
                                      Unitholders and (ii) a press release
                                      issued on March 25, 2003 announcing the
                                      Partnership's fourth quarter and  year
                                      ended December 31, 2002 financial results.

<PAGE>18

                                    SIGNATURE

     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

                                    AMERICAN INSURED MORTGAGE
                                    INVESTORS L.P. - SERIES 85
                                    (Registrant)

                                    By: CRIIMI, Inc.
                                        General Partner


May 13, 2003                        /s/ Cynthia O. Azzara
------------                        ----------------------------------------
DATE                                Cynthia O. Azzara
                                    Senior Vice President,
                                    Chief Financial Officer and
                                    Treasurer (Principal Accounting Officer)


<PAGE>19

                                  CERTIFICATION


I, Barry Blattman, Chairman of the Board, Chief Executive Officer and President,
certify that:

     1.   I have reviewed this quarterly report on Form 10-Q of American Insured
          Mortgage Investors-Series 85, L.P.;

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this quarterly report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:

          a)   Designed such  disclosure  controls and procedures to ensure that
               material  information  relating to the registrant,  including its
               consolidated  subsidiaries,  is made known to us by others within
               those  entities,  particularly  during  the  period in which this
               quarterly report is being prepared;

          b)   Evaluated  the  effectiveness  of  the  registrant's   disclosure
               controls and  procedures as of a date within 90 days prior to the
               filing date of this quarterly report (the "Evaluation Date"); and

          c)   Presented  in this  quarterly  report our  conclusions  about the
               effectiveness of the disclosure  controls and procedures based on
               our evaluation as of the Evaluation Date;

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's  board  of  directors  (or  persons
          performing the equivalent functions):

          a)   All  significant  deficiencies  in the  design  or  operation  of
               internal  controls which could adversely  affect the registrant's
               ability to record,  process,  summarize and report financial data
               and have  identified for the  registrant's  auditors any material
               weaknesses in internal controls; and

          b)   Any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in the  registrant's
               internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this quarterly report whether or not there were significant changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

                                          AMERICAN INSURED MORTGAGE
                                          INVESTORS - SERIES 85, L.P.
                                          (Registrant)

                                           By: CRIIMI, Inc.
                                               General Partner


Date:  May 13, 2003                        /s/ Barry S. Blattman
       ------------                        -------------------------------------
                                           Barry S. Blattman
                                           Chairman of the Board,
                                           Chief Executive Officer and President

<PAGE>20

                                 CERTIFICATION


I,  Cynthia O.  Azzara,  Senior  Vice  President,  Chief  Financial  Officer and
Treasurer, certify that:

     1.   I have reviewed this quarterly report on Form 10-Q of American Insured
          Mortgage Investors-Series 85, L.P.;

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this quarterly report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and we have:

          a)   Designed such  disclosure  controls and procedures to ensure that
               material  information  relating to the registrant,  including its
               consolidated  subsidiaries,  is made known to us by others within
               those  entities,  particularly  during  the  period in which this
               quarterly report is being prepared;

          b)   Evaluated  the  effectiveness  of  the  registrant's   disclosure
               controls and  procedures as of a date within 90 days prior to the
               filing date of this quarterly report (the "Evaluation Date"); and

          c)   Presented  in this  quarterly  report our  conclusions  about the
               effectiveness of the disclosure  controls and procedures based on
               our evaluation as of the Evaluation Date;

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's  board  of  directors  (or  persons
          performing the equivalent functions):

          a)   All  significant  deficiencies  in the  design  or  operation  of
               internal  controls which could adversely  affect the registrant's
               ability to record,  process,  summarize and report financial data
               and have  identified for the  registrant's  auditors any material
               weaknesses in internal controls; and

          b)   Any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in the  registrant's
               internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this quarterly report whether or not there were significant changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

                                         AMERICAN INSURED MORTGAGE
                                         INVESTORS - SERIES 85, L.P.
                                         (Registrant)

                                         By: CRIIMI, Inc.
                                             General Partner


Date: May 13, 2003                       /s/ Cynthia O. Azzara
      ------------                       --------------------------------------
                                         Cynthia O. Azzara
                                         Senior Vice President, Chief Financial
                                         Officer and Treasurer