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


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

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



                                   FORM 10-QSB


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



             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                  For the quarterly period ended March 31, 2007


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



                         Commission file number 0-11973


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP
             Organized pursuant to the Laws of the State of Maryland


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



        Internal Revenue Service - Employer Identification No. 52-1321492

                 11200 Rockville Pike, Rockville, Maryland 20852

                                 (301) 468-9200


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





Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the  registrant  was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No | |

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




--------------------------------------------------------------------------------
<PAGE>



                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                              INDEX TO FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2007



                                                                          Page

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Balance Sheets
           - March 31, 2007 and December 31, 2006........................... 1

         Statements of Operations and Accumulated Losses
           - for the three months ended March 31, 2007 and 2006............. 2

         Statements of Cash Flows
           - for the three months ended March 31, 2007 and 2006............. 3

         Notes to Financial Statements
           - March 31, 2007 and 2006........................................ 4

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations........................................ 12

Item 3.  Controls and Procedures............................................ 14


Part II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities.................................... 15

Item 5.  Other Information.................................................. 15

Item 6.  Exhibits........................................................... 15

Signature................................................................... 16


<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                                 BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>
                                                                                        March 31,     December 31,
                                                                                          2007            2006
                                                                                      ------------    ------------
                                                                                      (Unaudited)
<S>                                                                                   <C>             <C>
Investment in partnerships held for sale ..........................................   $    385,025    $    392,643
Cash and cash equivalents .........................................................      4,809,003       4,845,857
Other assets ......................................................................         21,370         117,806
                                                                                      ------------    ------------

   Total assets ...................................................................   $  5,215,398    $  5,356,306
                                                                                      ============    ============




                        LIABILITIES AND PARTNERS' CAPITAL



Due on investments in partnerships ................................................   $  1,400,000    $  1,400,000
Accrued interest payable ..........................................................      3,035,762       3,004,262
Accounts payable and accrued expenses .............................................        117,227         147,849
                                                                                      ------------    ------------

   Total liabilities ..............................................................      4,552,989       4,552,111
                                                                                      ------------    ------------

Commitments and contingencies

Partners' capital:

  Capital paid in:
    General Partners ..............................................................          2,000           2,000
    Limited Partners ..............................................................     50,015,000      50,015,000
                                                                                      ------------    ------------

                                                                                        50,017,000      50,017,000

  Less:
    Accumulated distributions to partners .........................................    (34,752,903)    (34,752,903)
    Offering costs ................................................................     (5,278,980)     (5,278,980)
    Accumulated losses ............................................................     (9,322,708)     (9,180,922)
                                                                                      ------------    ------------

      Total partners' capital .....................................................        662,409         804,195
                                                                                      ------------    ------------

      Total liabilities and partners' capital .....................................   $  5,215,398    $  5,356,306
                                                                                      ============    ============
</TABLE>

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

                                       -1-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS

                             AND ACCUMULATED LOSSES

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     For the three months ended
                                                                               March 31,
                                                                     ---------------------------
                                                                         2007           2006
                                                                     ------------   ------------
<S>                                                                  <C>            <C>
Share of loss from partnerships ..................................   $    (7,618)   $   (29,372)
                                                                     -----------    -----------

Other revenue and expenses:

  Revenue:
    Interest .....................................................        63,929         57,244
                                                                     -----------    -----------

  Expenses:
    General and administrative ...................................        69,285         71,492
    Management fee ...............................................        62,499         62,499
    Interest .....................................................        31,500         31,500
    Professional fees ............................................        34,813         29,163
                                                                     -----------    -----------

                                                                         198,097        194,654
                                                                     -----------    -----------

      Total other revenue and expenses ...........................      (134,168)      (137,410)
                                                                     -----------    -----------

Loss before additional gain on disposition
   of investment in partnerships .................................      (141,786)      (166,782)

Additional gain on disposition of investment in partnerships .....          --          102,013
                                                                     -----------    -----------

Net loss .........................................................      (141,786)       (64,769)

Accumulated losses, beginning of period ..........................    (9,180,922)    (8,649,747)
                                                                     -----------    -----------

Accumulated losses, end of period ................................   $(9,322,708)   $(8,714,516)
                                                                     ===========    ===========


Net loss allocated to General Partners (1.51%) ...................   $    (2,141)   $      (978)
                                                                     ===========    ===========

Net loss allocated to Initial and Special Limited Partners (1.49%)   $    (2,113)   $      (965)
                                                                     ===========    ===========

Net loss allocated to Additional Limited Partners (97%) ..........   $  (137,532)   $   (62,826)
                                                                     ===========    ===========

Net loss per unit of Additional Limited Partner Interest,
  based on 49,910 units outstanding ..............................   $     (2.76)   $     (1.26)
                                                                     ===========    ===========
</TABLE>


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

                                       -2-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements


                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                For the three months ended
                                                                                         March 31,
                                                                                --------------------------
                                                                                    2007            2006
                                                                                ------------   -----------
<S>                                                                             <C>            <C>
Cash flows from operating activities:
  Net loss ..................................................................   $  (141,786)   $   (64,769)

  Adjustments to reconcile net loss to net cash used in operating activities:
    Share of loss from partnerships .........................................         7,618         29,372
    Additional gain on disposition of investment in partnerships ............          --         (102,013)

    Changes in assets and liabilities:
      Decrease in other assets ..............................................        96,436          1,268
      Increase in accrued interest receivable on advances ...................          --             (370)
      Increase in accrued interest payable ..................................        31,500         31,500
      Decrease in accounts payable and accrued expenses .....................       (30,622)        (5,204)
                                                                                -----------    -----------

        Net cash used in operating activities ...............................       (36,854)      (110,216)
                                                                                -----------    -----------

Cash flows from investing activities:
  Receipt of distributions from partnerships ................................          --            6,305
  Collection of sale proceeds ...............................................          --          835,824
                                                                                -----------    -----------

        Net cash provided by investing activities ...........................          --          842,129
                                                                                -----------    -----------

Net (decrease) increase in cash and cash equivalents ........................       (36,854)       731,913

Cash and cash equivalents, beginning of period ..............................     4,845,857      4,647,720
                                                                                -----------    -----------

Cash and cash equivalents, end of period ....................................   $ 4,809,003    $ 5,379,633
                                                                                ===========    ===========
</TABLE>

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

                                       -3-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


1.   BASIS OF PRESENTATION

     In the opinion of C.R.I.,  Inc. (CRI), the Managing  General  Partner,  the
accompanying unaudited financial statements reflect all adjustments,  consisting
of normal recurring accruals, necessary for a fair presentation of the financial
position of Capital Realty Investors-II Limited Partnership (the Partnership) as
of March 31, 2007,  and the results of its operations and its cash flows for the
three month periods ended March 31, 2007 and 2006. The results of operations for
the interim period ended March 31, 2007, are not  necessarily  indicative of the
results to be expected for the full year.

     The  accompanying  unaudited  financial  statements  have been  prepared in
conformity with accounting principles generally accepted in the United States of
America (US GAAP) and with the instructions to Form 10-QSB.  Certain information
and accounting policies and footnote  disclosures normally included in financial
statements  prepared in conformity  with US GAAP have been  condensed or omitted
pursuant to such instructions.  These condensed  financial  statements should be
read in conjunction with the financial  statements and notes thereto included in
the Partnership's annual report on Form 10-KSB at December 31, 2006.


2.   PLAN OF LIQUIDATION AND DISSOLUTION

     On February 4, 2004, the  Partnership  filed a Definitive  Proxy  Statement
pursuant to Section 14(a) of the Securities  Exchange Act of 1934, and mailed it
to limited partners to solicit consents for approval of the following:

(1)  The sale of all of the  Partnership's  assets  and the  dissolution  of the
     Partnership  pursuant to a Plan of  Liquidation  and  Dissolution,  and the
     amendment of the Partnership's  Limited Partnership Agreement to permit the
     Managing General Partner, CRI, to be eligible to receive increased property
     disposition  fees from the  Partnership  on the same basis as such fees may
     currently be paid to Local General  Partners,  real estate brokers or other
     third party intermediaries employed to sell Partnership properties,  to the
     extent that CRI markets and sells the Partnership's  properties  instead of
     such persons (a "Disposition Fee");

(2)  The amendment of the Partnership's  Limited Partnership Agreement to permit
     CRI to be eligible to receive a partnership  liquidation  fee in the amount
     of $500,000,  payable only if the Managing General Partner is successful in
     liquidating all of the Partnership's  investments within 36 months from the
     date the liquidation is approved [March 22, 2004], in recognition  that one
     or more of the properties in which the Partnership  holds an interest might
     not be  saleable  to  parties  not  affiliated  with the  respective  Local
     Partnership  due to the amount and/or terms of their  current  indebtedness
     (the "Partnership Liquidation Fee"); and

(3)  To authorize the Managing General Partner, in its sole discretion, to elect
     to extend the period  during  which  Consents  of Limited  Partners  may be
     solicited and voted,  but not beyond sixty (60) days from the date that the
     Consent Solicitation Statement was sent to the Limited Partners.

The matters for which consent was solicited are collectively  referred to as the
"Liquidation."


                                       -4-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


2.   PLAN OF LIQUIDATION AND DISSOLUTION - Continued

     The record date for voting was  December  31,  2003,  and the final  voting
deadline  was March 22,  2004.  A  tabulation  of votes  received  by the voting
deadline follows.

<TABLE>
<CAPTION>
                                          FOR                  AGAINST                ABSTAIN                 TOTAL
                                  ------------------     ------------------     -------------------     ------------------
                                  Units of               Units of               Units of                Units of
                                  limited                limited                limited                 limited
                                  partner                partner                partner                 partner
     Description                  interest   Percent     interest   Percent     interest    Percent     Interest    Percent
     -----------                  --------   -------     --------   -------     --------    -------     --------    -------
     <S>                          <C>        <C>         <C>        <C>         <C>         <C>         <C>         <C>
     Sale, dissolution and
       five percent
       Disposition Fee             28,699     57.6%       1,264       2.5%         268        0.5%       30,231      60.6%

     $500,000 Partnership
       Liquidation Fee             25,841     51.8%       3,546       7.1%         844        1.7%       30,231      60.6%

     Extension of
       solicitation period         27,975     56.1%       1,767       3.5%         489        1.0%       30,231      60.6%

</TABLE>

     The  Partnership  was not  liquidated  within 36 months  from the  approved
liquidation  date of March 22, 2004,  therefore no liquidation  fee was taken by
the Partnership.  The Managing General Partner is continuing towards liquidation
of all the Partnership's investments.

     There can be no assurance that the Liquidation  will be completed  pursuant
to the Plan of Liquidation and Dissolution.


3.   NEW ACCOUNTING PRONOUNCEMENTS

     In September  2006, the Securities and Exchange  Commission  ("SEC") issued
Staff  Accounting  Bulletin  No.  108,  "Considering  the  Effects of Prior Year
Misstatements   when   Quantifying   Misstatements  in  Current  Year  Financial
Statements" ("SAB No. 108"). SAB No. 108 requires quantification of errors using
both  a  balance  sheet  approach  and  an  income  statement  approach  in  the
determination  of  materiality  in  relation to a  misstatement.  SAB No. 108 is
effective  the first  fiscal year ending after  November  15,  2006.  Management
believes SAB No. 108 will not have any impact on the Partnership.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under generally accepted  accounting
principles.  Although SFAS No. 157 applies  (amends) the  provisions of existing
FASB  and  AICPA  pronouncements,  it  does  not  require  any  new  fair  value
measurements,  nor  does it  establish  valuation  standards.  SFAS  No.  157 is
effective for fiscal years  beginning  after  November 15, 2007.  Management has
determined that SFAS No. 157 will have no material impact to the Partnership.

                                      -5-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

a.   Due on investments in partnerships and accrued interest payable
     ---------------------------------------------------------------

                                    Westgate
                                    --------

     The Partnership defaulted on its one remaining purchase money note, related
to Westgate  Limited Dividend Housing  Association  (Westgate),  on September 1,
2003,  when the note (as extended)  matured and was not paid. The default amount
included   principal  and  accrued   interest  of  $1,400,000  and   $2,584,492,
respectively.  As of May 11, 2007,  principal and accrued interest of $1,400,000
and $3,049,484, respectively, were due. In conjunction with the approved Plan of
Liquidation and Dissolution of the Partnership,  the Managing General Partner is
currently negotiating the sale of the property owned by Westgate and seeking the
consent of the noteholders to accept the proceeds from such sale as a discounted
payoff  of the  purchase  money  note's  principal  and  accrued  interest.  The
discounted  payoff would result in cancellation  of  indebtedness  income to the
Limited  Partners,  which  would  be  taxed  at a  federal  tax rate of up to 35
percent. There can be no assurance that a sale of Westgate and discounted payoff
of the purchase money note will occur.

     Interest  expense on the  Partnership's  Westgate  purchase  money note was
$31,500 for each of the three month periods  ended March 31, 2007 and 2006.  The
accrued interest payable on the purchase money note of $3,035,762 and $3,004,262
as of March 31, 2007 and December 31, 2006, respectively, is in default.

     Due to  the  possible  sale  of  the  property  related  to  Westgate,  the
Partnership's  basis in the Local  Partnership,  along with the net  unamortized
amount of acquisition fees and property  purchase costs,  which totaled $385,025
and $392,643 as of March 31, 2007 and December 31, 2006, respectively,  has been
reclassified  to investment in  partnerships  held for sale in the  accompanying
balance sheets.

b.   Completed sales
     ---------------

                                    Arrowhead
                                    ---------

     On November 17, 2004, the  Partnership's  interest in Arrowhead  Apartments
Associates  (Arrowhead)  was sold.  Gross cash proceeds  received in 2004 by the
Partnership totaled $1,156,495.  The sale resulted in net gain on disposition of
investment in partnerships of $698,210 for financial  statement  purposes and in
total gain of $6,082,297  for federal tax purposes in 2004.  In accordance  with
the terms of the Partnership  Agreement,  in December 2004 the Managing  General
Partner was paid a disposition fee of $432,824  related to the sale. The fee was
netted against the related gain on disposition of investment in partnerships. In
2005, the Partnership  accrued $85,470 for additional cash proceeds  expected to
be received upon the release of escrow  reserves,  of which $42,649 was received
in August 2005 and $42,821 was received in January 2006.

                                   Chevy Chase
                                   -----------

     On November 22, 2005, the property owned by Chevy Chase Park,  Ltd.  (Chevy
Chase) was sold. Gross cash proceeds received in 2005 by the Partnership totaled
$6,814,125.  The sale  resulted  in net gain on  disposition  of  investment  in
partnerships of $5,238,173 for financial statement purposes and in total gain of

                                       -6-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

$7,115,800 for federal tax purposes in 2005. The  Partnership  accrued  $23,208,
which is included in gain on disposition of investment in  partnerships in 2005,
for additional  sale proceeds  receivable  related to the sale, of which $18,909
was received in March 2006 and $4,299 was received in April 2006.  In 2006,  net
gain on  disposition  of  investment  in  partnerships  was  reduced  by $11,604
relating to additional  expenses  incurred.  In accordance with the terms of the
Partnership Agreement,  in November 2005 the Managing General Partner was paid a
disposition fee of $435,000  related to the sale. The fee was netted against the
related gain on disposition of investment in partnerships.

                                 Country Place I
                                 ---------------

     On December  29, 2004,  the  Partnership's  interest in  Blackburn  Limited
Partnership  (Country  Place I) was sold.  Gross cash  proceeds  received by the
Partnership in 2004 totaled $6,821,935.  In addition,  at December 31, 2004, the
Partnership  accrued  $504,604 for cash proceeds to be received in 2005 upon the
release of escrow  reserves,  which were posted as security for the purchaser to
claim any monetary damages as a result of any breach of the  representations and
warranties  made by the seller within one year after closing.  The sale resulted
in net gain on  disposition  of investment  in  partnerships  of $6,565,858  for
financial  statement  purposes and in total gain of $11,060,421  for federal tax
purposes in 2004. In accordance with the terms of the Partnership Agreement,  in
January 2005 the Managing General Partner was paid a disposition fee of $743,366
related to the sale.  The fee was accrued and netted against the related gain on
disposition of investment in  partnerships at December 31, 2004. In August 2005,
approximately fifty percent of the escrowed reserves was received. The remaining
amount of $253,358 was received in January  2006.  In April 2005,  an additional
$9,000 that was  received  from the Local  Partnership  was  recorded as gain on
disposition of investments in partnerships at December 31, 2005.

                                Country Place II
                                ----------------

     On December  29,  2004,  the  Partnership's  interest  in Second  Blackburn
Limited Partnership (Country Place II) was sold. Gross cash proceeds received in
2004 by the Partnership in 2004 totaled $4,438,748. In addition, at December 31,
2004, the Partnership  accrued $328,275 for cash proceeds to be received in 2005
upon the  release of escrow  reserves,  which were  posted as  security  for the
purchaser  to  claim  any  monetary  damages  as  a  result  of  any  breach  of
representations and warranties made by the seller within one year after closing.
The sale resulted in net gain on  disposition of investment in  partnerships  of
$4,288,096 for financial  statement purposes and in total gain of $6,846,454 for
federal tax purposes in 2004.  In accordance  with the terms of the  Partnership
Agreement,  in January 2005 the Managing  General Partner was paid a disposition
fee of $467,042  related to the sale. The fee was accrued and netted against the
related gain on disposition of investment in  partnerships at December 31, 2004.
In August  2005,  approximately  fifty  percent  of the  escrowed  reserves  was
received.  The  remaining  amount of $164,728 was received in January  2006.  In
April 2005,  an additional  $9,000 that was received from the Local  Partnership
was recorded as gain on disposition of investments in  partnerships  at December
31, 2005.

                                       -7-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

                                Four Winds West
                                ---------------

     As of October 31, 2006, the  Partnership's  interest in Four Winds West was
transferred to an affiliate of the local managing general partner.  The transfer
resulted in loss on  disposition  of investment in  partnerships  of $12,567 for
financial  statement  purposes and in total gain of $587,569 for federal  income
tax purposes.  In March 2007, the  Partnership  received a cash  distribution of
$12,305,  which was accrued and  included  in other  income in the  accompanying
financial statements at December 31, 2006.

                                    Moorings
                                    --------

     On November 17, 2004,  the  Partnership's  interest in Moorings  Apartments
Associates  (Moorings)  was sold.  Gross cash  proceeds  received in 2004 by the
Partnership  totaled  $366,943.  The sale resulted in net loss on disposition of
investment in partnerships of $120,694 for financial  statement  purposes and in
total gain of $6,216,291  for federal tax purposes in 2004.  In accordance  with
the terms of the Partnership  Agreement,  in December 2004 the Managing  General
Partner was paid a disposition fee of $462,417  related to the sale. In 2005 the
Partnership accrued $27,101 for additional cash proceeds expected to be received
upon the release of escrow  reserves,  of which  $13,523 was  received in August
2005 and $13,578 was received in January 2006.

                                 Posada Vallarta
                                 ---------------

     On December  12,  2005,  the property  owned by Posada  Associates  Limited
Partnership  (Posada Vallarta) was sold. Gross cash proceeds received in 2005 by
the Partnership totaled $3,930,457. The sale resulted in net gain on disposition
of investment in partnerships of $3,111,832 for financial statement purposes and
in total gain of  $13,057,662  for federal tax purposes in 2005.  In  accordance
with the terms of the  Partnership  Agreement,  in  December  2005 the  Managing
General  Partner was paid a disposition  fee of $1,118,625  related to the sale.
The fee was netted  against the related gain on  disposition  of  investment  in
partnerships.  The Partnership  accrued  $300,000,  which is included in gain on
disposition of investment in  partnerships in 2005, for additional sale proceeds
received  in March  2006.  During  the first  quarter of 2006,  the  Partnership
recorded gain on disposition of investment in partnerships of $113,617, of which
$54,035  was  received  in March 2006 and  $59,582  was  received in April 2006.
During  the  second  quarter  of 2006,  gain on  disposition  of  investment  in
partnerships  was reduced by $3,861  relating to additional  expenses  incurred.
During the third quarter of 2006, the  Partnership  recorded gain in disposition
of investment in  partnerships  of $5,819,  of which $4,989 was received in July
2006 and $830 was received in September 2006. During the fourth quarter of 2006,
gain on disposition of investment in partnerships was reduced by $474.

                                   Troy Manor
                                   ----------

     On  December  31,  2006,  the  Partnership's  interest  in Troy  Manor  was
transferred to an affiliate of the local managing general partner.  The transfer
resulted in no gain or loss for financial  statement  purposes and in total gain
of $633,155 for federal  income tax  purposes.  In March 2007,  the  Partnership
received a cash  distribution  of $7,425 which was accrued and included in other
income in the accompanying financial statements at December 31, 2006.

                                       -8-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued

c.   Assets held for sale
     --------------------

                                  Golden Acres
                                  ------------

     On April 24, 2007, a contract for the sale of the Partnership's interest in
Golden Acres was signed. The Partnership's  basis in Golden Acres, which totaled
$0 at both March 31,  2007 and  December  31,  2006,  has been  reclassified  to
investment in  partnerships  held for sale in the  accompanying  balance sheets.
There is no assurance that a sale will occur.

                                Orangewood Plaza
                                ----------------

     On December 28, 2006, a contract for the sale of the Partnership's interest
in Orangewood Plaza was signed.  The  Partnership's  basis in Orangewood  Plaza,
which  totaled  $0 at both  March  31,  2007 and  December  31,  2006,  has been
reclassified  to investment in  partnerships  held for sale in the  accompanying
balance sheets. There is no assurance that the sale will occur.

                                    Westgate
                                    --------

     See Note 4.a., above.

d.   Summarized financial information
     --------------------------------

     Combined statements of operations for the three and five Local Partnerships
in  which  the  Partnership  was  invested  as  of  March  31,  2007  and  2006,
respectively,   follow.   The  combined   statements  have  been  compiled  from
information  supplied  by the  management  agents  of  the  properties  and  are
unaudited.  The information for each of the periods is presented  separately for
those Local Partnerships  which have positive  investment basis (equity method),
and for those Local  Partnerships  which have cumulative losses in excess of the
amount of the  Partnership's  investments  in those Local  Partnerships  (equity
method  suspended).  Appended  after  the  combined  statements  is  information
concerning the Partnership's  share of income from partnerships  related to cash
distributions  recorded  as income,  and related to the  Partnership's  share of
income from Local Partnerships.

                                      -9-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


4.   INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS - Continued


                                         COMBINED STATEMENTS OF OPERATIONS
                                                    (Unaudited)
<TABLE>
<CAPTION>
                                                                   For the three months ended
                                                                           March 31,
                                                  -----------------------------------------------------------
                                                             2007                              2006
                                                  --------------------------       --------------------------
                                                    Equity                           Equity
                                                    Method        Suspended          Method        Suspended
                                                  ----------      ----------       ----------      ----------
         <S>                                      <C>             <C>              <C>             <C>
         Number of Local Partnerships                 1               2                2               3
                                                      =               =                =               =

         Revenue:
           Rental                                 $  170,087      $   106,934      $  240,702      $  209,221
           Other                                       7,221            5,394           9,232           1,820
                                                  ----------      -----------      ----------      ----------

             Total revenue                           177,308          112,328         249,934         211,041
                                                  ----------      -----------      ----------      ----------

         Expenses:
           Operating                                 153,364          176,964         222,401         158,299
           Interest                                   (8,966)          10,247           5,078          31,682
           Depreciation and amortization              40,684           27,176          51,915          40,651
                                                  ----------      -----------      ----------      ----------

             Total expenses                          185,082          214,387         279,394         230,632
                                                  ----------      -----------      ----------      ----------

         Net loss                                 $   (7,774)     $  (102,059)     $  (29,460)     $  (19,591)
                                                  ==========      ===========      ==========      ==========

         Cash distributions                       $       --      $        --      $    6,305      $       --
                                                  ==========      ===========      ==========      ==========

         Cash distributions recorded as
           reduction of investments in
           partnerships                           $       --      $        --      $    6,305      $       --
                                                  ==========      ===========      ==========      ==========

         Partnership's share of
           Local Partnership net income               (7,618)              --         (29,002)             --

         Miscellaneous                                    --               --              --            (370)
                                                  ---------------------------      --------------------------


         Share of loss from partnerships                  $ (7,618)                        $(29,372)
                                                          ========                         ========
</TABLE>


     Cash  distributions  received from Local Partnerships which have investment
basis (equity method) are recorded as a reduction of investments in partnerships
and as cash  receipts  on the  respective  balance  sheets.  Cash  distributions
received from Local  Partnerships  which have cumulative losses in excess of the
amount of the  Partnership's  investments  in those Local  Partnerships  (equity
method  suspended)  are  recorded  as share of income from  partnerships  on the
respective  statements  of  operations  and as cash  receipts on the  respective
balance  sheets.  As of March 31,  2007 and  2006,  the  Partnership's  share of
cumulative losses to date for two of three and three of five Local Partnerships,
respectively,  exceeded  the amount of the  Partnership's  investments  in those
Local Partnerships by $1,109,987 and $993,674,  respectively. As the Partnership
has no further  obligation to advance funds or provide  financing to these Local
Partnerships,  the excess  losses have not been  reflected  in the  accompanying
financial statements.

                                      -10-

<PAGE>
                 CAPITAL REALTY INVESTORS-II LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

                             March 31, 2007 and 2006

                                   (Unaudited)


5.   RELATED PARTY TRANSACTIONS

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to reimburse the Managing  General  Partner for its direct expenses
in connection with managing the  Partnership.  The Partnership  paid $49,912 and
$30,929 for the three month periods ended March 31, 2007 and 2006, respectively,
to the Managing General Partner as direct  reimbursement of expenses incurred on
behalf  of  the   Partnership.   Such  expenses  are  included  in  general  and
administrative expenses in the accompanying statements of operations.

     In accordance with the terms of the Partnership Agreement,  the Partnership
is obligated to pay the Managing General Partner an annual incentive  management
fee  (Management  Fee) after all other expenses of the Partnership are paid. The
Partnership  paid the Managing  General  Partner a Management Fee of $62,499 for
each of the three month periods ended March 31, 2007 and 2006.

     In  accordance  with the  terms of a  Definitive  Proxy  Statement  for the
Liquidation and Dissolution of the Partnership,  which was approved on March 22,
2004,  by holders of a majority of the Units of Limited  Partner  Interest,  the
Managing  General  Partner  may  receive  property  disposition  fees  from  the
Partnership  on the  same  basis  as such  fees  may be paid  to  Local  General
Partners,  real estate brokers or other third party  intermediaries  employed to
sell  Partnership  properties,  to the  extent  that CRI  markets  and sells the
Partnership's  properties instead of such persons. In January 2005, the Managing
General Partner was paid disposition fees in the amount of $1,210,408 related to
the sales of Country  Place I and II in December  2004,  which were  accrued and
netted against the related gain on disposition of investments in partnerships at
December  31,  2004.  In June 2005,  the  Managing  General  Partner  was paid a
disposition  fee of  $757,642  related to the sale of Mercy  Terrace,  which was
netted against the related gain on  disposition of investments in  partnerships.
On November 28, 2005, the Managing General Partner was paid a disposition fee of
$435,000,  related to the sale of the property  owned by Chevy Chase,  which was
netted against the related gain on disposition of investment in  partnerships in
2005. On December 14, 2005, the Managing  General Partner was paid a disposition
fee of $1,118,625, related to the sale of the property owned by Posada Vallarta,
which was netted  against the  related  gain on  disposition  of  investment  in
partnerships in 2005.

     In addition,  the Managing  General Partner was authorized  pursuant to the
approved proxy statement to receive a partnership  liquidation fee in the amount
of $500,000,  payable  only if the Managing  General  Partner is  successful  in
liquidating all of the Partnership's  investments within 36 months from the date
the liquidation was approved.  As the liquidation was not completed by March 22,
2007, the Managing General Partner did not earn the liquidation fee.


6.   CASH DISTRIBUTIONS

     On April 4, 2006,  the  Partnership  made a tax  distribution  of  $252,862
(approximately $7.20 per Unit) on behalf of Additional Limited Partners who were
not residents of Ohio.

                                      # # #

                                      -11-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion Analysis of Financial Condition
          and Results of Operations


     Capital  Realty  Investors-II   Limited   Partnership's  (the  Partnership)
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  section  is  based  on  the  financial   statements,   and  contains
information  that  may  be  considered  forward  looking,  including  statements
regarding  the effect of  governmental  regulations.  Actual  results may differ
materially from those  described in the forward  looking  statements and will be
affected  by  a  variety  of  factors  including  national  and  local  economic
conditions,  the  general  level of  interest  rates,  governmental  regulations
affecting  the  Partnership  and  interpretations  of  those  regulations,   the
competitive  environment in which the Partnership operates, and the availability
of working capital.

                          Critical Accounting Policies
                          ----------------------------

     The  Partnership has disclosed its selection and application of significant
accounting  policies in Note 1 of the notes to financial  statements included in
the  Partnership's  annual  report on Form  10-KSB at  December  31,  2006.  The
Partnership  accounts for its investments in partnerships  (Local  Partnerships)
using the equity  method  because the  Partnership  is a limited  partner in the
Local  Partnerships.  As such, the Partnership has no control over the selection
and application of accounting  policies,  or the use of estimates,  by the Local
Partnerships.  Environmental  and operational  trends,  events and uncertainties
that  might  affect the  properties  owned by the Local  Partnerships  would not
necessarily have a significant  impact on the  Partnership's  application of the
equity method of accounting,  since the equity method has been suspended for two
Local  Partnerships  which have cumulative losses in excess of the amount of the
Partnership's investments in those Local Partnerships.

                          New Accounting Pronouncements
                          -----------------------------

     In September  2006, the Securities and Exchange  Commission  ("SEC") issued
Staff  Accounting  Bulletin  No.  108,  "Considering  the  Effects of Prior Year
Misstatements   when   Quantifying   Misstatements  in  Current  Year  Financial
Statements" ("SAB No. 108"). SAB No. 108 requires quantification of errors using
both  a  balance  sheet  approach  and  an  income  statement  approach  in  the
determination  of  materiality  in  relation to a  misstatement.  SAB No. 108 is
effective  the first  fiscal year ending after  November  15,  2006.  Management
believes SAB No. 108 will not have any impact on the Partnership.

     In September  2006, the Financial  Accounts  Standards  Board (FASB) issued
SFAS No. 157, Fair Value Measurements ("SFAS No. 157"). SFAS No. 157 establishes
a formal framework for measuring fair value under generally accepted  accounting
principles.  Although SFAS No. 157 applies  (amends) the  provisions of existing
FASB  and  AICPA  pronouncements,  it  does  not  require  any  new  fair  value
measurements,  nor  does it  establish  valuation  standards.  SFAS  No.  157 is
effective for fiscal years  beginning  after  November 15, 2007.  Management has
determined that SFAS No. 157 will have no material impact to the Partnership.

                       Plan of Liquidation and Dissolution
                       -----------------------------------

     On February 4, 2004, the Partnership  filed a Definitive  Proxy  Statement,
pursuant to Section  14(a) of the  Securities  Exchange Act of 1934,  to solicit
consent for, among other things, the sale of all of the Partnership's assets and
the  dissolution  of the  Partnership  pursuant  to a Plan  of  Liquidation  and
Dissolution.  As of the voting  deadline,  March 22, 2004, the holders of 28,699
units of limited partner interest (57.6%) voted "for" such sale and dissolution.

                                      -12-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion Analysis of Financial Condition
          and Results of Operations - Continued


                                     General
                                     -------

     Some of the rental properties owned by the Local  Partnerships are financed
by state and federal housing agencies.  The Managing General Partner has sold or
refinanced,  and will continue to sell, certain properties  pursuant to programs
developed by these agencies.  These programs may include opportunities to sell a
property to a qualifying  purchaser  who would agree to maintain the property as
low to moderate  income  housing.  The  Managing  General  Partner  continues to
monitor  certain state housing  agency  programs,  and/or  programs  provided by
certain  lenders,  to ascertain  whether the properties would qualify within the
parameters  of a given  program  and whether  these  programs  would  provide an
appropriate economic benefit to the Limited Partners of the Partnership.

     The Managing  General  Partner  continues to seek  strategies  to deal with
affordable  housing  requirements.  While the Managing  General  Partner  cannot
predict the  outcome for any  particular  property  at this time,  the  Managing
General  Partner will  continue to work with the Local  Partnerships  to develop
strategies that maximize the benefits to investors.

                          Financial Condition/Liquidity
                          -----------------------------

     The Partnership's liquidity, with unrestricted cash resources of $4,809,003
as of March 31, 2007, along with anticipated  future cash distributions from the
Local  Partnerships,  is  expected  to be  adequate  to  meet  its  current  and
anticipated  operating  cash needs.  As of May 11, 2007,  there were no material
commitments for capital  expenditures.  The Managing  General Partner  currently
intends  to retain all of the  Partnership's  remaining  undistributed  cash for
operating  cash  reserves  pending  further  distributions  under  its  Plan  of
Liquidation and Dissolution.

     The  Partnership's  remaining  obligation with respect to its investment in
Westgate Tower Limited Dividend Housing Associates (Westgate),  in the form of a
nonrecourse purchase money note which matured September 1, 2003, has a principal
balance of $1,400,000 plus accrued  interest of $3,035,762 as of March 31, 2007,
and is payable in full upon the  earliest  of:  (i) sale or  refinancing  of the
respective  Local  Partnership's  rental  property;  (ii) payment in full of the
respective Local Partnership's permanent loan; or (iii) maturity.

     The  purchase  money note,  which is  nonrecourse  to the  Partnership,  is
secured by the Partnership's  interest in the Westgate Local Partnership,  which
owns Westgate Tower Apartments. The underlying property does not have sufficient
appreciation  and equity to enable the  Partnership  to pay the  purchase  money
note's principal and accrued interest.  In conjunction with the approved Plan of
Liquidation and Dissolution of the Partnership,  the Managing General Partner is
currently negotiating the sale of the property owned by Westgate and seeking the
consent of the  noteholders  to accept the proceeds of such sale as a discounted
payoff  of the  purchase  money  note's  principal  and  accrued  interest.  The
discounted  payoff would result in cancellation  of  indebtedness  income to the
Limited  Partners,  which  would  be  taxed  at a  federal  tax rate of up to 35
percent. There can be no assurance that a sale of Westgate and discounted payoff
of the purchase money note will occur.

     The Managing  General Partner has received  consent from a majority of Unit
Holders  for the  liquidation  of the  Partnership.  (See Note 2 of the notes to
financial  statements  contained in Part I, Item 1,  hereof.) It is  anticipated
that  the  Partnership's  obligation,  discussed  above,  would  be  retired  in
conjunction  with  such  Liquidation.   There  can  be  no  assurance  that  the
Liquidation  will  be  completed   pursuant  to  the  Plan  of  Liquidation  and
Dissolution.

     The Partnership closely monitors its cash flow and liquidity position in an
effort to ensure that sufficient  cash is available for operating  requirements.
For the three month period ended March 31, 2007,  existing  cash  resources  was
adequate  to support  operating  cash  requirements.  Cash and cash  equivalents
decreased $36,854 during the three month period ended March 31, 2007,  primarily
due to operating expenses paid in cash.

                                      -13-

<PAGE>
Part I. FINANCIAL INFORMATION
Item 2. Management's Discussion Analysis of Financial Condition
          and Results of Operations - Continued


     On April 4, 2006,  the  Partnership  made a tax  distribution  of  $252,862
(approximately $7.20 per Unit) on behalf of Additional Limited Partners who were
not residents of Ohio.

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

     The  Partnership's net loss for the three month period ended March 31, 2007
increased from the corresponding  period in 2006, primarily due to a decrease in
additional  gain on  disposition  of investment in  partnerships  related to the
sales of Chevy Chase and Posada Vallarta and an increase in  professional  fees,
partially offset by decreases in share of loss from partnerships and general and
administrative  expenses and an increase in interest revenue. Share of loss from
partnerships  decreased as one property had positive  investment  basis in 2006,
but not in 2007. Interest revenue increased due to higher rates in 2007.

     For financial reporting purposes, the Partnership,  as a limited partner in
the Local  Partnerships,  does not record losses from the Local  Partnerships in
excess of its  investment  to the  extent  that the  Partnership  has no further
obligation to advance funds or provide financing to the Local Partnerships. As a
result, the Partnership's  share of income from partnerships for the three month
periods  ended March 31, 2007 and 2006,  did not include  losses of $101,029 and
$19,369, respectively.

     No other  significant  changes in the  Partnership's  operations have taken
place during the three month period ended March 31, 2007.


Item 3. Controls and Procedures

     In  May  2007,  representatives  of the  Managing  General  Partner  of the
Partnership  carried out an  evaluation of the  effectiveness  of the design and
operation of the Partnership's  disclosure controls and procedures,  pursuant to
Exchange Act Rules  13a-15 and 15d-15.  The  Managing  General  Partner does not
expect that the  Partnership's  disclosure  controls and procedures will prevent
all error and all fraud.  A control  system,  no matter how well  conceived  and
operated,  can provide only  reasonable  assurance  that the  objectives  of the
control system are met. Further, the design of a control system must reflect the
fact that there are resource  constraints,  and the benefits of controls must be
considered relative to their costs.  Because of the inherent  limitations in all
control systems,  no evaluation of controls can provide absolute  assurance that
all control issues have been detected.  These inherent  limitations  include the
realities that judgments in  decision-making  can be faulty, and that breakdowns
can occur  because  of simple  error or  mistake.  The  design of any  system of
controls also is based in part upon certain  assumptions about the likelihood of
future  events,  and there can be no  assurance  that any design will succeed in
achieving its stated goals under all  potential  future  conditions.  Over time,
controls may become inadequate  because of changes in conditions,  or the degree
of compliance  with the policies or procedures may  deteriorate.  Because of the
inherent  limitations in a cost-effective  control system,  misstatements due to
error or fraud may occur and not be detected.  Based on the May 2007 evaluation,
and subject to the  foregoing,  the  Principal  Executive  Officer and Principal
Financial  Officer  concluded  that the  Partnership's  disclosure  controls and
procedures  are effective as of the end of the period  covered by this report to
alert  them in a timely  manner  to any  material  information  relating  to the
Partnership that must be included in the Partnership's periodic SEC filings, and
particularly  during  the  period in which  this  report is being  prepared.  In
addition,  there have been no significant changes in the Partnership's  internal
control over financial  reporting that occurred  during the  Partnership's  most
recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect, the Partnership's internal control over financial reporting.

                                      -14-

<PAGE>
Part II. OTHER INFORMATION
Item 3. Defaults Upon Senior Securities


     See Note 3.a. of the notes to  financial  statements  contained  in Part I,
Item 1, hereof,  for  information  concerning the  Partnership's  default on one
purchase money note.


Item 5. Other Information

     There has not been any information  required to be disclosed in a report on
Form 8-K during the quarter ended March 31, 2007,  but not reported,  whether or
not otherwise required by this Form 10-QSB at March 31, 2007.

     There  is no  established  market  for the  purchase  and  sale of units of
additional limited partner interest (Units) in the Partnership, although various
informal  secondary market services exist. Due to the limited markets,  however,
investors may be unable to sell or otherwise dispose of their Units.

                                Cash Distribution
                                -----------------

     On April 4, 2006,  the  Partnership  made a tax  distribution  of  $252,862
(approximately $7.20 per Unit) on behalf of Additional Limited Partners who were
not residents of Ohio.


Item 6. Exhibits

Exhibit No.     Description
-----------     -----------

  31.1          Certification of Principal Executive Officer, pursuant to
                18 U.S.C. Section 1350, as adopted pursuant to Section 302
                of the Sarbanes-Oxley Act of 2002.

  31.2          Certification of Principal Financial Officer, pursuant to
                18 U.S.C. Section 1350, as adopted pursuant to Section 302
                of the Sarbanes-Oxley Act of 2002.

  32            Certification of Principal Executive Officer and
                Principal Financial Officer, pursuant to 18 U.S.C.
                Section 1350, as adopted pursuant to Section 906
                of the Sarbanes-Oxley Act of 2002.

All other Items are not applicable.

                                      -15-

<PAGE>
                                    SIGNATURE


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


                                  CAPITAL REALTY INVESTORS-II LIMITED
                                    PARTNERSHIP
                                  ----------------------------------------------
                                  (Registrant)

                                  by:  C.R.I., Inc.
                                       -----------------------------------------
                                       Managing General Partner




May 11, 2007                           by:  /s/ H. William Willoughby
------------                                ------------------------------------
DATE                                        H. William Willoughby,
                                            Director, President, Secretary,
                                              Principal Financial Officer,
                                              and Principal Accounting Officer

                                      -16-

<PAGE>