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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                                                 |   | June 30 |      |   | March 31 |   |
|--------------------------------------------------------|--------|---------|-----------|--------|----------|--------|
|                                                   |   |    |      |   |     |   |
| Cash and cash equivalents                              |   | $       | 1,076,844 |   |     | $      | 1,169,357 |   |
| Investment in Local Limited Partnership (Note 1)       |   |    | 1,400,504 |   |     |   | 1,355,943 |   |
| Due from affiliate                                     |   |    | -         |   |     |   | 1,210 |   |
| Other assets                                           |   |    | 51        |   |     |   | 95 |   |
| Total Assets                                           |   | $       | 2,477,399 |   |     | $      | 2,526,605 |   |
|                                                   |   |    |      |   |     |   |   |   |
| Liabilities and Partners' Equity                       |   |    |      |   |     |   |   |   |
|                                                   |   |    |      |   |     |   |   |   |
| Accrued expenses                                       |   | $       | 36,273    |   |     | $      | 27,461 |   |
| Total Liabilities                                      |   |    | 36,273    |   |     |   | 27,461 |   |
|                                                   |   |    |      |   |     |   |   |   |
| General, Initial and Investor Limited Partners' Equity |   |    | 2,441,126 |   |     |   | 2,499,144 |   |
| Total Liabilities and Partners' Equity                 |   | $       | 2,477,399 |   |     | $      | 2,526,605 |   |

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|                                                          |   | 2011   |     |   | 2010   |   |
|---------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                          |   |   |     |   |   |   |
| Revenue:                                                      |   |   |     |   |   |   |
| Investment                                                    |   | $      | 1,154    |   |   | $      | 1,647 |   |
| Total Revenue                                                 |   |   | 1,154    |   |   |   | 1,647 |   |
|                                                          |   |   |     |   |   |   |   |   |
| Expenses:                                                     |   |   |     |   |   |   |   |   |
| Asset management fees, affiliate                              |   |   | 81,886   |   |   |   | 80,676 |   |
| General and administrative (includes reimbursements to        |   |   |     |   |   |   |   |   |
| an affiliate in the amount of $3,258 and $4,630               |   |   |     |   |   |   |   |   |
| in 2011 and 2010, respectively)                               |   |   | 21,847   |   |   |   | 28,995 |   |
| Amortization                                                  |   |   | 1,276    |   |   |   | 1,275 |   |
| Total Expenses                                                |   |   | 105,009  |   |   |   | 110,946 |   |
|                                                          |   |   |     |   |   |   |   |   |
| Loss before equity in income (loss) of Local                  |   |   |     |   |   |   |   |   |
|    Limited Partnership                         |   |   | (103,855 | )      |   |   | (109,299 | ) |
|                                                          |   |   |     |   |   |   |   |   |
| Equity in income (loss) of Local Limited Partnership (Note 1) |   |   | 45,837   |   |   |   | (10,395 | ) |
|                                                          |   |   |     |   |   |   |   |   |
| Net Loss                                                      |   | $      | (58,018  | )      |   | $      | (119,694 | ) |
|                                                          |   |   |     |   |   |   |   |   |
| Net Loss allocated:                                           |   |   |     |   |   |   |   |   |
| General Partners                                              |   | $      | (580     | )      |   | $      | (1,197 | ) |
| Limited Partners                                              |   |   | (57,438  | )      |   |   | (118,497 | ) |
|                                                          |   | $      | (58,018  | )      |   | $      | (119,694 | ) |
| Net Loss per Limited Partner Unit                             |   |   |     |   |   |   |   |   |
| (68,929 Units)                                                |   | $      | (0.83    | )      |   | $      | (1.72 | ) |
|                                                          |   |   |     |   |   |   |   |   |

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|                      |   |            |   |   |                 |   |   |            |   |   |      |
|---------------------------|--------|-----------------|--------|--------|----------------------|--------|--------|-----------------|--------|--------|-----------|
|                      |   |            |   |   | Initial              |   |   | Investor        |   |   |      |
|                      |   | General         |   |   |    Limited |   |   | Limited         |   |   |      |
|                      |   |   Partners |   |   |    Partner |   |   |   Partners |   |   | Total     |
|                      |   |            |   |   |                 |   |   |            |   |   |      |
| Balance at March 31, 2011 |   | $               | 24,898 |   |                 | $      | 5,000  |            |   | $      | 2,469,246 |   |   | $ | 2,499,144 |   |
|                      |   |            |   |   |                 |   |   |            |   |   |      |   |   |   |
| Net Loss                  |   |            | (580   | )      |                 |   | -      |            |   |   | (57,438   | ) |   |   | (58,018 | ) |
|                      |   |            |   |   |                 |   |   |            |   |   |      |   |   |   |
| Balance at June 30, 2011  |   | $               | 24,318 |   |                 | $      | 5,000  |            |   | $      | 2,411,808 |   |   | $ | 2,441,126 |   |

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|                                      |   |   |      |   |   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                      |   | 2011   |      |   | 2010   |   |
|                                      |   |   |      |   |   |   |
| Net cash used for operating activities    |   | $      | (92,513   | )      |   | $      | (59,303 | ) |
|                                      |   |   |      |   |   |   |   |   |
| Net decrease in cash and cash equivalents |   |   | (92,513   | )      |   |   | (59,303 | ) |
|                                      |   |   |      |   |   |   |   |   |
| Cash and cash equivalents, beginning      |   |   | 1,169,357 |   |   |   | 1,697,686 |   |
|                                      |   |   |      |   |   |   |   |   |
| Cash and cash equivalents, ending         |   | $      | 1,076,844 |   |   | $      | 1,638,383 |   |
|                                      |   |   |      |   |   |   |   |   |
|                                      |   |   |      |   |   |   |   |   |

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|                                                                  |   | June 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              |   |    | (2,109,932 | )      |     |   | (2,155,769 | ) |
|                                                                  |   |    |       |   |     |   |   |   |
| Cumulative cash distributions received from Local Limited Partnership |   |    | (19,610    | )      |     |   | (19,610 | ) |
|                                                                  |   |    |       |   |     |   |   |   |
| Investment in Local Limited Partnership before adjustments            |   |    | 3,681,694  |   |     |   | 3,635,857 |   |
|                                                                  |   |    |       |   |     |   |   |   |
| Excess investment costs over the underlying assets acquired:          |   |    |       |   |     |   |   |   |
|                                                                  |   |    |       |   |     |   |   |   |
| Acquisition fees and expenses                                         |   |    | 178,600    |   |     |   | 178,600 |   |
|                                                                  |   |    |       |   |     |   |   |   |
| Cumulative amortization of acquisition fees and expenses              |   |    | (95,790    | )      |     |   | (94,514 | ) |
|                                                                  |   |    |       |   |     |   |   |   |
| Investment in Local Limited Partnership before impairment             |   |    | 3,764,504  |   |     |   | 3,719,943 |   |
|                                                                  |   |    |       |   |     |   |   |   |
| Cumulative impairment on investment in Local Limited Partnership      |   |    | (2,364,000 | )      |     |   | (2,364,000 | ) |
|                                                                  |   |    |       |   |     |   |   |   |
| Investment in Local Limited Partnership                               |   | $       | 1,400,504  |   |     | $      | 1,355,943 |   |

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| 2. | New Accounting Principles |
|----|---------------------------|

| Circle Terrace Associates Limited Partnership |   | 2011 |    |   | 2010   |   |
|-----------------------------------------------|--------|------|---------|--------|--------|--------|
| Revenue                                       |   | $    | 734,400 |   |   | $      | 733,800 |   |
| Net Income (Loss)                             |   | $    | 46,300  |   |   | $      | (10,500 | ) |

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

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

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