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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                              |   | $       | 1,638,383 |   |     | $      | 1,697,686 |   |
| Investment in Local Limited Partnership (Note 1)       |   |    | 1,165,434 |   |     |   | 1,177,104 |   |
| Other assets                                           |   |    | 50        |   |     |   | 38 |   |
| Total Assets                                           |   | $       | 2,803,867 |   |     | $      | 2,874,828 |   |
|                                                   |   |    |      |   |     |   |   |   |
| Liabilities and Partners' Equity                       |   |    |      |   |     |   |   |   |
|                                                   |   |    |      |   |     |   |   |   |
| Due to affiliate                                       |   | $       | 120,895   |   |     | $      | 80,675 |   |
| Accrued expenses                                       |   |    | 57,298    |   |     |   | 48,785 |   |
| Total Liabilities                                      |   |    | 178,193   |   |     |   | 129,460 |   |
|                                                   |   |    |      |   |     |   |   |   |
| General, Initial and Investor Limited Partners' Equity |   |    | 2,625,674 |   |     |   | 2,745,368 |   |
| Total Liabilities and Partners' Equity                 |   | $       | 2,803,867 |   |     | $      | 2,874,828 |   |

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|                                                                  |   | 2010   |     |   | 2009   |   |
|-----------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                  |   |   |     |   |   |   |
| Revenue:                                                              |   |   |     |   |   |   |
| Investment                                                            |   | $      | 1,647    |   |   | $      | 7,772 |   |
| Cash distribution income                                              |   |   | -        |   |   |   | 19,662 |   |
| Total Revenue                                                         |   |   | 1,647    |   |   |   | 27,434 |   |
|                                                                  |   |   |     |   |   |   |   |   |
| Expense:                                                              |   |   |     |   |   |   |   |   |
| Asset management fees, affiliate                                      |   |   | 80,676   |   |   |   | 78,555 |   |
| General and administrative (includes reimbursements to                |   |   |     |   |   |   |   |   |
| an affiliate in the amount of  $4,630 and  $2,114 |   |   |     |   |   |   |   |   |
| in 2010 and 2009, respectively)                                       |   |   | 28,995   |   |   |   | 31,927 |   |
| Amortization                                                          |   |   | 1,275    |   |   |   | 1,275 |   |
| Total Expense                                                         |   |   | 110,946  |   |   |   | 111,757 |   |
|                                                                  |   |   |     |   |   |   |   |   |
| Loss before equity in income (loss) of Local                          |   |   |     |   |   |   |   |   |
|    Limited Partnership                                 |   |   | (109,299 | )      |   |   | (84,323 | ) |
|                                                                  |   |   |     |   |   |   |   |   |
| Equity in income (loss) of Local Limited Partnership (Note 1)         |   |   | (10,395  | )      |   |   |  13,959 |   |
|                                                                  |   |   |     |   |   |   |   |   |
| Net Loss                                                              |   | $      | (119,694 | )      |   | $      | (70,364 | ) |
|                                                                  |   |   |     |   |   |   |   |   |
| Net Loss allocated:                                                   |   |   |     |   |   |   |   |   |
| General Partners                                                      |   | $      | (1,197   | )      |   | $      | (704 | ) |
| Limited Partners                                                      |   |   | (118,497 | )      |   |   | (69,660 | ) |
|                                                                  |   | $      | (119,694 | )      |   | $      | (70,364 | ) |
| Net Loss per Limited Partner Unit                                     |   |   |     |   |   |   |   |   |
| (68,929 Units)                                                        |   | $      | (1.72    | )      |   | $      | (1.01 | ) |
|                                                                  |   |   |     |   |   |   |   |   |

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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                  |   |     | (1,197 | )      |    |   | -      |     |   |   | (118,497  | ) |   |   | (119,694 | ) |
|                      |   |     |   |   |    |   |   |     |   |   |      |   |   |   |
| Balance at June 30, 2010  |   | $        | 26,163 |   |    | $      | 5,000  |     |   | $      | 2,594,511 |   |   | $ | 2,625,674 |   |

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|                                      |   |                                                  |      |   |        |   |
|-------------------------------------------|--------|-------------------------------------------------------|-----------|--------|-------------|--------|
|                                      |   |          2010 |      |   |   2009 |   |
|                                      |   |                                                  |      |   |        |   |
| Net cash used for operating activities    |   | $                                                     | (59,303   | )      |        | $      | (74,992 | ) |
|                                      |   |                                                  |      |   |        |   |   |   |
| Net decrease in cash and cash equivalents |   |                                                  | (59,303   | )      |        |   | (74,992 | ) |
|                                      |   |                                                  |      |   |        |   |   |   |
| Cash and cash equivalents, beginning      |   |                                                  | 1,697,686 |   |        |   | 2,097,247 |   |
|                                      |   |                                                  |      |   |        |   |   |   |
| Cash and cash equivalents, ending         |   | $                                                     | 1,638,383 |   |        | $      | 2,022,255 |   |

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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                   |   |                             | (2,350,107 | )      |                                                                  |   | (2,339,712 | ) |
|                                                                       |   |                             |       |   |                                                                  |   |   |   |
| Cumulative cash distributions received from Local Limited Partnership      |   |                             | (19,610    | )      |                                                                  |   | (19,610 | ) |
|                                                                       |   |                             |       |   |                                                                  |   |   |   |
| Investment in Local Limited Partnership before adjustments                 |   |                             | 3,441,519  |   |                                                                  |   | 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                   |   |                             | (90,685    | )      |                                                                  |   | (89,410 | ) |
|                                                                       |   |                             |       |   |                                                                  |   |   |   |
| Investment in Local Limited Partnership before valuation allowance         |   |                             | 3,529,434  |   |                                                                  |   | 3,541,104 |   |
|                                                                       |   |                             |       |   |                                                                  |   |   |   |
| Valuation allowance on investment in Local Limited Partnership             |   |                             | (2,364,000 | )      |                                                                  |   | (2,364,000 | ) |
|                                                                       |   |                             |       |   |                                                                  |   |   |   |
| Investment in Local Limited Partnership                                    |   | $                                | 1,165,434  |   |                                                                  | $      | 1,177,104 |   |

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

| Circle Terrace Associates Limited Partnership |   | 2010 |    |   | 2009   |   |
|-----------------------------------------------|--------|------|---------|--------|--------|--------|
| Revenue                                       |   | $    | 733,800 |   |   | $      | 707,000 |   |
| Net Income (Loss)                             |   | $    | (10,500 | )      |   | $      | 14,100 |   |

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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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