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| [ X ] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-------|-----------------------------------------------------------------------------------------|

|   | OR |
|--------|----|

| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------------|------------------------------------------------------------------------------------------|

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| Assets                                                 |   |   September 30 |      |   |       March 31 |   |
|--------------------------------------------------------|--------|---------------------|-----------|--------|-----------------------------------------|--------|
|                                                   |   |                |      |   |                                    |   |
| Cash and cash equivalents                              |   | $                   | 1,465,822 |   |                                    | $      | 1,697,686 |   |
| Investment in Local Limited Partnership (Note 1)       |   |                | 1,322,959 |   |                                    |   | 1,177,104 |   |
| Other assets                                           |   |                | 183       |   |                                    |   | 38 |   |
| Total Assets                                           |   | $                   | 2,788,964 |   |                                    | $      | 2,874,828 |   |
|                                                   |   |                |      |   |                                    |   |   |   |
| Liabilities and Partners' Equity                       |   |                |      |   |                                    |   |   |   |
|                                                   |   |                |      |   |                                    |   |   |   |
| Due to affiliate                                       |   | $                   | 80,676    |   |                                    | $      | 80,675 |   |
| Accrued expenses                                       |   |                | 17,668    |   |                                    |   | 48,785 |   |
| Total Liabilities                                      |   |                | 98,344    |   |                                    |   | 129,460 |   |
|                                                   |   |                |      |   |                                    |   |   |   |
| General, Initial and Investor Limited Partners' Equity |   |                | 2,690,620 |   |                                    |   | 2,745,368 |   |
| Total Liabilities and Partners' Equity                 |   | $                   | 2,788,964 |   |                                    | $      | 2,874,828 |   |

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|                                     |   |          Three Months Ended |    |   |          Six Months Ended |   |
|------------------------------------------|--------|---------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------|--------|
|                                     |   |        September 30,                  |    |   |      September 30,                            |   |   |     September 30, |   |   |        September 30, |   |
|                                     |   |    2010                                                   |    |   |  2009                                                        |   |   |   2010 |   |   |   2009 |   |
| Revenue                                  |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |
| Investment                               |   | $                                                                   | 1,542   |   |                                                              | $      | 7,479 |   |   | $ | 3,189 |   |   | $ | 15,251 |   |
| Cash distribution income                 |   |                                                                | -       |   |                                                              |   | - |   |   |   | - |   |   |   | 19,662 |   |
| Total Revenue                            |   |                                                                | 1,542   |   |                                                              |   | 7,479 |   |   |   | 3,189 |   |   |   | 34,913 |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Asset management fees, affiliate         |   |                                                                | 80,676  |   |                                                              |   | 78,555 |   |   |   | 161,352 |   |   |   | 157,110 |   |
| General and administrative               |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| (includes reimbursements to an affiliate |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| in the amount of $11,706 and             |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| $4,750 for the six months ended          |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| September 30, 2010 and 2009,             |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| respectively)                            |   |                                                                | 13,445  |   |                                                              |   | 24,575 |   |   |   | 42,440 |   |   |   | 56,502 |   |
| Amortization                             |   |                                                                | 1,277   |   |                                                              |   | 1,277 |   |   |   | 2,552 |   |   |   | 2,552 |   |
| Total Expenses                           |   |                                                                | 95,398  |   |                                                              |   | 104,407 |   |   |   | 206,344 |   |   |   | 216,164 |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in income             |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|  of Local Limited Partnership       |   |                                                                | (93,856 | )      |                                                              |   | (96,928 | ) |   |   | (203,155 | ) |   |   | (181,251 | ) |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Equity in income of Local Limited        |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Partnership (Note 1)                     |   |                                                                | 158,802 |   |                                                              |   | 1,349 |   |   |   | 148,407 |   |   |   | 15,308 |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                        |   | $                                                                   | 64,946  |   |                                                              | $      | (95,579 | ) |   | $ | (54,748 | ) |   | $ | (165,943 | ) |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) allocated:             |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| General Partners                         |   | $                                                                   | 650     |   |                                                              | $      | (955 | ) |   | $ | (547 | ) |   | $ | (1,659 | ) |
| Limited Partners                         |   |                                                                | 64,296  |   |                                                              |   | (94,624 | ) |   |   | (54,201 | ) |   |   | (164,284 | ) |
|                                     |   | $                                                                   | 64,946  |   |                                                              | $      | (95,579 | ) |   | $ | (54,748 | ) |   | $ | (165,943 | ) |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Per Limited Partner    |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Unit (68,929 Units)                      |   | $                                                                   | 0.93    |   |                                                              | $      | (1.37 | ) |   | $ | (0.79 | ) |   | $ | (2.38 | ) |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                                |    |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |

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|                          |   |           |   |   |                                                     |   |   |                                    |   |   |                                                               |
|-------------------------------|--------|----------------|--------|--------|----------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|--------------------------------------------------------------------|
|                          |   |           |   |   |        Initial             |   |   |      Investor       |   |   |                                                               |
|                          |   |   General |   |   |          Limited |   |   |      Limited        |   |   |                                                               |
|                          |   | Partners       |   |   |       Partner                   |   |   |       Partners |   |   |            Total |
|                          |   |           |   |   |                                                     |   |   |                                    |   |   |                                                               |
| Balance at March 31, 2010     |   | $              | 27,360 |   |                                                     | $      | 5,000  |                                    |   | $      | 2,713,008                                                          |   |   | $ | 2,745,368 |   |
|                          |   |           |   |   |                                                     |   |   |                                    |   |   |                                                               |   |   |   |
| Net Loss                      |   |           | (547   | )      |                                                     |   | -      |                                    |   |   | (54,201                                                            | ) |   |   | (54,748 | ) |
|                          |   |           |   |   |                                                     |   |   |                                    |   |   |                                                               |   |   |   |
| Balance at September 30, 2010 |   | $              | 26,813 |   |                                                     | $      | 5,000  |                                    |   | $      | 2,658,807                                                          |   |   | $ | 2,690,620 |   |

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|                                      |   |                                |      |   |                                                                    |   |
|-------------------------------------------|--------|-------------------------------------|-----------|--------|-------------------------------------------------------------------------|--------|
|                                      |   |       2010 |      |   |             2009 |   |
|                                      |   |                                |      |   |                                                                    |   |
| Net cash used for operating activities    |   | $                                   | (231,864  | )      |                                                                    | $      | (130,840 | ) |
|                                      |   |                                |      |   |                                                                    |   |   |   |
| Net decrease in cash and cash equivalents |   |                                | (231,864  | )      |                                                                    |   | (130,840 | ) |
|                                      |   |                                |      |   |                                                                    |   |   |   |
| Cash and cash equivalents, beginning      |   |                                | 1,697,686 |   |                                                                    |   | 2,097,247 |   |
|                                      |   |                                |      |   |                                                                    |   |   |   |
| Cash and cash equivalents, ending         |   | $                                   | 1,465,822 |   |                                                                    | $      | 1,996,407 |   |
|                                      |   |                                |      |   |                                                                    |   |   |   |
|                                      |   |                                |      |   |                                                                    |   |   |   |

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|                                                                       |   |     September 30 |       |   |    March 31 |   |
|----------------------------------------------------------------------------|--------|---------------------------------|------------|--------|-----------------------|--------|
| Capital contributions paid to Local Limited Partnership and purchase price |   |                            |       |   |                  |   |
| paid to withdrawing partners of Local Limited Partnership                  |   | $                               | 5,811,236  |   |                  | $      | 5,811,236 |   |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Cumulative equity in losses of Local Limited Partnership                   |   |                            | (2,191,305 | )      |                  |   | (2,339,712 | ) |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Cumulative cash distributions received from Local Limited Partnership      |   |                            | (19,610    | )      |                  |   | (19,610 | ) |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Investment in Local Limited Partnership before adjustments                 |   |                            | 3,600,321  |   |                  |   | 3,451,914 |   |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Excess investment costs over the underlying assets acquired:               |   |                            |       |   |                  |   |   |   |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Acquisition fees and expenses                                              |   |                            | 178,600    |   |                  |   | 178,600 |   |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Cumulative amortization of acquisition fees and expenses                   |   |                            | (91,962    | )      |                  |   | (89,410 | ) |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Investment in Local Limited Partnership before valuation allowance         |   |                            | 3,686,959  |   |                  |   | 3,541,104 |   |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Valuation allowance on investment in Local Limited Partnership             |   |                            | (2,364,000 | )      |                  |   | (2,364,000 | ) |
|                                                                       |   |                            |       |   |                  |   |   |   |
| Investment in Local Limited Partnership                                    |   | $                               | 1,322,959  |   |                  | $      | 1,177,104 |   |

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| Circle Terrace Associates Limited Partnership |   |    2010 |    |   |       2009 |   |
|-----------------------------------------------|--------|------------------------|---------|--------|-------------------------------------|--------|
| Revenue                                       |   | $                      | 760,839 |   |                                | $      | 779,734 |   |
| Net Income                                    |   | $                      | 160,406 |   |                                | $      | 1,363 |   |

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| (a)   | Exhibits |
|-----------------|----------|

| 31.1   | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

|   |    31.2 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|-------------------|----------------------------------------------------------------------------------------------------------------------------------------|

|   |    32.1 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   |    32.2 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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