| [ 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                                                 |   | December 31 |      |   | March 31 |   |
|--------------------------------------------------------|--------|-------------|-----------|--------|----------|--------|
|                                                   |   |        |      |   |     |   |
| Cash and cash equivalents                              |   | $           | 1,363,844 |   |     | $      | 1,697,686 |   |
| Investment in Local Limited Partnership (Note 1)       |   |        | 1,430,853 |   |     |   | 1,177,104 |   |
| Other assets                                           |   |        | 139       |   |     |   | 38 |   |
| Total Assets                                           |   | $           | 2,794,836 |   |     | $      | 2,874,828 |   |
|                                                   |   |        |      |   |     |   |   |   |
| Liabilities and Partners' Equity                       |   |        |      |   |     |   |   |   |
|                                                   |   |        |      |   |     |   |   |   |
| Due to affiliate                                       |   | $           | 80,675    |   |     | $      | 80,675 |   |
| Accrued expenses                                       |   |        | 24,583    |   |     |   | 48,785 |   |
| Total Liabilities                                      |   |        | 105,258   |   |     |   | 129,460 |   |
|                                                   |   |        |      |   |     |   |   |   |
| General, Initial and Investor Limited Partners' Equity |   |        | 2,689,578 |   |     |   | 2,745,368 |   |
| Total Liabilities and Partners' Equity                 |   | $           | 2,794,836 |   |     | $      | 2,874,828 |   |

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|                                     |   | Three Months Ended |     |   | Nine Months Ended |   |
|------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                     |   | December 31,       |     |   | December 31,      |   |   | December 31, |   |   | December 31, |   |
|                                     |   | 2010               |     |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Revenue                                  |   |               |     |   |              |   |   |   |   |   |   |   |
| Investment                               |   | $                  | 1,408    |   |              | $      | 5,623 |   |   | $ | 4,597 |   |   | $ | 20,874 |   |
| Cash distribution income                 |   |               | -        |   |              |   | 13,035 |   |   |   | - |   |   |   | 32,697 |   |
| Total Revenue                            |   |               | 1,408    |   |              |   | 18,658 |   |   |   | 4,597 |   |   |   | 53,571 |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Asset management fees, affiliate         |   |               | 80,676   |   |              |   | 78,555 |   |   |   | 242,028 |   |   |   | 235,665 |   |
| General and administrative               |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| (includes reimbursements to an affiliate |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| in the amount of $16,315 and             |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| $9,976 for the nine months ended         |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010 and 2009,              |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| respectively)                            |   |               | 29,668   |   |              |   | 37,393 |   |   |   | 72,108 |   |   |   | 93,895 |   |
| Amortization                             |   |               | 1,276    |   |              |   | 1,275 |   |   |   | 3,828 |   |   |   | 3,827 |   |
| Total Expenses                           |   |               | 111,620  |   |              |   | 117,223 |   |   |   | 317,964 |   |   |   | 333,387 |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in income             |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|  of Local Limited Partnership       |   |               | (110,212 | )      |              |   | (98,565 | ) |   |   | (313,367 | ) |   |   | (279,816 | ) |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Equity in income of Local Limited        |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Partnership (Note 1)                     |   |               | 109,170  |   |              |   | 211,208 |   |   |   | 257,577 |   |   |   | 226,516 |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                        |   | $                  | (1,042   | )      |              | $      | 112,643 |   |   | $ | (55,790 | ) |   | $ | (53,300 | ) |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) allocated:             |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| General Partners                         |   | $                  | (11      | )      |              | $      | 1,126 |   |   | $ | (558 | ) |   | $ | (533 | ) |
| Limited Partners                         |   |               | (1,031   | )      |              |   | 111,517 |   |   |   | (55,232 | ) |   |   | (52,767 | ) |
|                                     |   | $                  | (1,042   | )      |              | $      | 112,643 |   |   | $ | (55,790 | ) |   | $ | (53,300 | ) |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Per Limited Partner    |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unit (68,929 Units)                      |   | $                  | (0.01    | )      |              | $      | 1.62 |   |   | $ | (0.80 | ) |   | $ | (0.76 | ) |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |

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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                     |   |     | (558   | )      |                                  |   | -      |     |   |   | (55,232   | ) |   |   | (55,790 | ) |
|                         |   |     |   |   |                                  |   |   |     |   |   |      |   |   |   |
| Balance at December 31, 2010 |   | $        | 26,802 |   |                                  | $      | 5,000  |     |   | $      | 2,657,776 |   |   | $ | 2,689,578 |   |

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|                                      |   |   |      |   |   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                      |   | 2010   |      |   | 2009   |   |
|                                      |   |   |      |   |   |   |
| Net cash used for operating activities    |   | $      | (333,842  | )      |   | $      | (299,554 | ) |
|                                      |   |   |      |   |   |   |   |   |
| Net decrease in cash and cash equivalents |   |   | (333,842  | )      |   |   | (299,554 | ) |
|                                      |   |   |      |   |   |   |   |   |
| Cash and cash equivalents, beginning      |   |   | 1,697,686 |   |   |   | 2,097,247 |   |
|                                      |   |   |      |   |   |   |   |   |
| Cash and cash equivalents, ending         |   | $      | 1,363,844 |   |   | $      | 1,797,693 |   |
|                                      |   |   |      |   |   |   |   |   |
|                                      |   |   |      |   |   |   |   |   |

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|                                                                       |   | December 31 |       |   | 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                   |   |        | (2,082,135 | )      |     |   | (2,339,712 | ) |
|                                                                       |   |        |       |   |     |   |   |   |
| Cumulative cash distributions received from Local Limited Partnership      |   |        | (19,610    | )      |     |   | (19,610 | ) |
|                                                                       |   |        |       |   |     |   |   |   |
| Investment in Local Limited Partnership before adjustments                 |   |        | 3,709,491  |   |     |   | 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                   |   |        | (93,238    | )      |     |   | (89,410 | ) |
|                                                                       |   |        |       |   |     |   |   |   |
| Investment in Local Limited Partnership before valuation allowance         |   |        | 3,794,853  |   |     |   | 3,541,104 |   |
|                                                                       |   |        |       |   |     |   |   |   |
| Valuation allowance on investment in Local Limited Partnership             |   |        | (2,364,000 | )      |     |   | (2,364,000 | ) |
|                                                                       |   |        |       |   |     |   |   |   |
| Investment in Local Limited Partnership                                    |   | $           | 1,430,853  |   |     | $      | 1,177,104 |   |

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

| Circle Terrace Associates Limited Partnership |   | 2010 |    |   | 2009   |   |
|-----------------------------------------------|--------|------|---------|--------|--------|--------|
| Revenue                                       |   | $    | 724,598 |   |   | $      | 721,160 |   |
| Net Income                                    |   | $    | 110,273 |   |   | $      | 213,341 |   |

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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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