FORM 10-KSB -- ANNUAL OR TRANSITIONAL REPORT UNDER
                                SECTION 13 OR 15(d)

                                   Form 10-KSB
(Mark One)
[X]ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
   1934 [No Fee Required]

                    For the fiscal year ended December 31, 2000

[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
   1934 [No Fee Required]

                For the transition period from _________to _________

                         Commission file number 0-10435

                            CENTURY PROPERTIES FUND XVI
                   (Name of small business issuer in its charter)

         California                                              94-2704651
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)

                    Issuer's telephone number (864) 239-1000

           Securities registered under Section 12(b) of the Exchange Act:

                                      None

           Securities registered under Section 12(g) of the Exchange Act:

                            Limited Partnership Units
                                (Title of class)

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___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of the  registrant's  knowledge  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year.  $3,142,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests, as of December 31, 2000. No market exists for the limited partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None

<PAGE>

                                     PART I

Item 1.  Description of Business

Century  Properties  Fund  XVI  (the  "Partnership"  or  the  "Registrant")  was
organized in December 1980 as a California limited partnership under the Uniform
Limited  Partnership  Act of  the  California  Corporations  Code.  Fox  Capital
Management  Corporation (the "Managing General Partner" or "FCMC"), a California
corporation,  and Fox Realty Investors ("FRI or "Non-Managing General Partner"),
a California  general  partnership,  are the general partners of the Registrant.
NPI Equity  Investments II Inc., a Florida  corporation  ("NPI Equity"),  is the
managing  partner of FRI. Both FCMC and NPI Equity are subsidiaries of Apartment
Investment and  Management  Company  ("AIMCO") (see "Transfer of Control").  The
partnership  agreement provides that the Partnership is to terminate on December
31, 2025 unless terminated prior to such date.

Beginning in August 1981 through  April 1982,  the  Registrant  offered and sold
130,000  Limited  Partnership  Units for an  aggregate of  $65,000,000.  The net
proceeds of this offering were used to acquire ten income-producing  real estate
properties.  The Registrant's  original  property  portfolio was  geographically
diversified with properties acquired in six states. The Registrant's acquisition
activities were completed in 1983, and since then, the principal activity of the
Registrant has been managing its portfolio.  During the period from 1986 through
1991, eight  multi-family  residential  properties were either sold or otherwise
disposed.  The  Registrant  continues  to own and operate two of its  originally
acquired properties. See "Item 2. Description of Properties."

The  Partnership  has no full time  employees.  The Managing  General Partner is
vested with full authority as to the general  management and  supervision of the
business and affairs of the Partnership.  The  Non-Managing  General Partner and
the limited  partners have no right to  participate in the management or conduct
of such  business and affairs.  An  affiliate  of the Managing  General  Partner
provides day-to-day property management services to the Partnership's investment
properties.

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Registrant's  properties.  The number and quality of competitive properties,
including  those which may be managed by an affiliate  of the  Managing  General
Partner in such market area,  could have a material  effect on the rental market
for apartments at the Registrant's  properties and the rents that may be charged
for such  apartments.  While the Managing General Partner and its affiliates own
and/or control a significant number of apartment units in the United States such
units  represent an  insignificant  percentage of total  apartment  units in the
United States and, competition for apartments is local.

Both  the  income  and  expenses  of  operating  the  properties  owned  by  the
Partnership are subject to factors outside of the Partnership's control, such as
changes in the supply and demand for similar  properties  resulting from various
market  conditions,  increases/decreases  in unemployment or population  shifts,
changes in the availability of permanent mortgage  financing,  changes in zoning
laws,  or changes in patterns or needs of users.  In  addition,  there are risks
inherent in owning and operating residential  properties because such properties
are  susceptible to the impact of economic and other  conditions  outside of the
control of the Partnership.

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations might adversely affect the properties
owned by the Partnership.

The Partnership  monitors its properties for evidence of pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental testing has been performed,  which resulted in no material adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

A further description of the Partnership's business is included in "Management's
Discussion and Analysis or Plan of Operations" included in "Item 6" of this Form
10-KSB.

Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation  (the "Insignia  Merger").  As a result,  AIMCO
acquired 100% ownership interest in the Managing General Partner and NPI Equity.
The Managing  General Partner does not believe that this  transaction has had or
will have a material effect on the affairs and operations of the Partnership.

Item 2.  Description of Properties:

The following table sets forth the Registrant's investment in properties:

                               Date of
Property                       Purchase      Type of Ownership          Use

Ralston Place                   06/82     Fee ownership subject      Apartments
  Tampa, Florida                          to first mortgage (1)       200 units

Woods of Inverness              07/82     Fee ownership subject      Apartments
 Apartments                               to first mortgage (2)       272 units
  Houston, Texas

(1)  Property is held by a limited  partnership in which the Partnership  owns a
     99% interest.  The remaining 1% interest is owned by AIMCO  Properties,  LP
     which is ultimately controlled by AIMCO.

(2)  Property  is held by a Limited  Partnership  which is  wholly-owned  by the
     Registrant.

Schedule of Properties:

Set forth below for each of the  Registrant's  properties is the gross  carrying
value,  accumulated  depreciation,  depreciable life, method of depreciation and
Federal tax basis.
<TABLE>
<CAPTION>

                               Gross
                              Carrying   Accumulated                         Federal
Property                       Value    Depreciation     Rate     Method    Tax Basis
                                  (in thousands)                          (in thousands)

<S>                          <C>         <C>           <C>                  <C>
Ralston Place                $ 6,646     $ 3,553       5-30 yrs     S/L     $  1,489
Woods of Inverness            10,103       5,418       5-30 yrs     S/L        2,204
 Apartments                  $16,749     $ 8,971                            $  3,693
</TABLE>

See  "Item  7.  Financial  Statements  -  Note  A"  for  a  description  of  the
Partnership's depreciation policy.

Schedule of Property Indebtedness:

The  following  table  sets  forth  certain  information  relating  to the loans
encumbering the Registrant's properties.
<TABLE>
<CAPTION>

                              Principal                                      Principal
                              Balance At                                      Balance
                             December 31,  Interest    Period    Maturity      Due At
         Property                2000        Rate    Amortized     Date       Maturity
                           (in thousands)                                 (in thousands)

<S>                          <C>             <C>      <C>         <C>        <C>
Ralston Place                $ 2,186         7.88%    30 years    1/2006     $ 2,016
Woods of Inverness
 Apartments                    4,991         7.88%    30 years    1/2006       4,602
                             $ 7,177                                         $ 6,618
</TABLE>

Each  mortgage  note  payable  is  non-recourse  and  secured by a pledge of the
applicable Partnership property and the rental revenues derived therefrom.

See "Item 7. Financial  Statements - Note C" for information with respect to the
Registrant's  ability to prepay these loans and other specific details as to the
terms of the loans.

Rental Rates and Occupancy:

Average annual rental rate and occupancy for 2000 and 1999 for each property:

                                        Average Annual           Average Annual
                                         Rental Rates               Occupancy
                                          (per unit)
 Property                            2000         1999         2000        1999

 Ralston Place                     $ 5,912       $ 5,606        95%         96%
 Woods of Inverness Apartments       7,464         7,227        94%         96%

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly  competitive.  Both of the properties of the  Partnership  are subject to
competition  from other  apartment  complexes in the area. The Managing  General
Partner  believes  that both of the  properties  are  adequately  insured.  Each
property is an apartment  complex which leases units for lease terms of one year
or less. No residential tenant leases 10% or more of the available rental space.
Both of the  properties  are in  good  physical  condition,  subject  to  normal
depreciation and deterioration as is typical for assets of this type and age.

Real Estate Taxes and Rates:

Real estate taxes and rates in 2000 for each property were:

                                           2000            2000
                                         Billing           Rate
                                      (in thousands)

Ralston Place                              $ 87            2.44%
Woods of Inverness Apartments               171            2.78%

Capital Improvements:

Ralston  Place:  The  Partnership  completed  approximately  $331,000 in capital
expenditures  at  Ralston  Place  during  the  year  ended  December  31,  2000,
consisting   primarily  of  flooring,   appliance  and  plumbing   replacements,
structural improvements, pool upgrades and major landscaping. These improvements
were  funded  from  cash  flow and  replacement  reserves.  The  Partnership  is
currently  evaluating  the capital  improvement  needs of the  property  for the
upcoming year. The minimum amount to be budgeted is expected to be $275 per unit
or $55,000.  Additional  improvements  may be considered  and will depend on the
physical  condition  of  the  property  as  well  as  replacement  reserves  and
anticipated cash flow generated by the property.

The Woods of  Inverness  Apartments:  The  Partnership  completed  approximately
$364,000 in capital expenditures at The Woods of Inverness Apartments during the
year ended December 31, 2000, consisting primarily of flooring,  appliance,  air
conditioning  and  plumbing  fixture  replacements,   parking  lot  resurfacing,
structural improvements,  and major landscaping.  These improvements were funded
from cash flow and replacement reserves. The Partnership is currently evaluating
the capital improvement needs of the property for the upcoming year. The minimum
amount to be budgeted  is  expected  to be $275 per unit or $74,800.  Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement  reserves and anticipated cash flow generated by
the property.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  and  Partnership  reserves.  To the extent that such  budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.

Item 3.  Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited  partnership units;  management of
the  partnerships  by the  Insignia  affiliates;  and the Insignia  Merger.  The
plaintiffs  seek  monetary  damages and  equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the Managing General Partner
filed a motion  seeking  dismissal of the action.  In lieu of  responding to the
motion, the plaintiffs filed an amended complaint.  The Managing General Partner
filed demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001,
and  defendants  are  scheduled to respond to the complaint by March 2, 2001. On
March 2, 2001, the Managing  General Partner and its affiliates filed a demurrer
to the third amended complaint. The Managing General Partner does not anticipate
that  costs  associated  with this case will be  material  to the  Partnership's
overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 4.  Submission of Matters to a Vote of Security Holders

During the quarter ended  December 31, 2000, no matters were submitted to a vote
of security holders through the solicitation of proxies or otherwise.

<PAGE>

                                     PART II

Item 5.  Market for the Partnership's Common Equity and Related Partner Matters

The Partnership,  a publicly-held limited partnership,  offered and sold in 1981
and  1982,   130,000  Limited   Partnership  Units  (the  "Units")   aggregating
$65,000,000.  The Partnership  currently has 130,000 Units  outstanding  held by
3,852 Limited Partners of record. Affiliates of the Managing General Partner own
75,071.69 Units or approximately  57.75% at December 31, 2000. No public trading
market has developed for the Units, and it is not anticipated that such a market
will develop in the future.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 2000 and 1999 and subsequent to December 31, 2000.

                                                Distributions
                                                           Per Limited
                                        Aggregate        Partnership Unit

       01/01/99 - 12/31/99             $225,000 (1)          $ 1.61
       01/01/00 - 12/31/00              358,000 (1)            2.56
      Subsequent to 12/31/00             40,000 (1)            0.28

(1)  Distributions were made from operations. See "Item 7. Financial Statements,
     Note G" for more information.

Future cash  distributions  will depend on the levels of net cash generated from
operations, the availability of cash reserves and the timing of debt maturities,
refinancings and /or property sales. The  Partnership's  distribution  policy is
reviewed on a quarterly  basis.  There can be no assurance that the  Partnership
will  generate   sufficient  funds  from  operations,   after  required  capital
expenditures,  to  permit  further  distributions  to its  partners  in  2001 or
subsequent   periods.   See  "Item  2.   Description  of  Properties  -  Capital
Improvements" for information  relating to anticipated  capital  expenditures at
the properties.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 75,071.69 limited partnership units
in the Partnership representing approximately 57.75% of the outstanding units at
December  31,  2000.  A number of these units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers.  In this regard,  on February 8, 2001,  AIMCO  Properties,  L.P.,
commenced a tender offer to acquire all of the Units not owned by  affiliates of
AIMCO for a purchase  price of $46.00 per Unit.  Pursuant to this  offer,  AIMCO
acquired  an  additional  702  units  resulting  in its  total  ownership  being
increased to 75,773.69 units or  approximately  58.29% of the total  outstanding
units. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action with  respect to a variety of matters,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the Managing General  Partner.  As a
result of its ownership of approximately  58.29% of the outstanding units, AIMCO
is in a  position  to  influence  all  voting  decisions  with  respect  to  the
Registrant. When voting on matters, AIMCO would in all likelihood vote the Units
it acquired  in a manner  favorable  to the  interest  of the  Managing  General
Partner because of its affiliation with the Managing  General Partner.  However,
with respect to 47,326.68 units,  owned by Insignia  Properties LP, an affiliate
of the Managing General Partner,  such affiliate is required to vote such Units:
(i) against any increase in compensation payable to the Managing General Partner
or to  affiliates;  and  (ii)  on  all  other  matters  submitted  by it or  its
affiliates, in proportion to the votes cast by non-tendering unitholders. Except
for the foregoing, no other limitations are imposed on AIMCO and its affiliates'
ability to influence voting decisions with respect to the Partnership.

Item 6.  Management's Discussion and Analysis or Plan of Operation

The  matters  discussed  in this Form  10-KSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-KSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the  Registrant's  business and results of  operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operation.  Accordingly,  actual  results  could  differ  materially  from those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

This  item  should  be read  in  conjunction  with  the  consolidated  financial
statements and other items contained elsewhere in this report.

Results of Operations

The Registrant's  net income for year ended December 31, 2000 was  approximately
$142,000 as compared to  approximately  $256,000 for the year ended December 31,
1999. (See "Note D" of the financial  statements for a  reconciliation  of these
amounts to the Registrant's  Federal taxable income). The decrease in net income
was due to an increase in total expenses slightly offset by an increase in total
revenues.  The  increase  in total  revenues is  attributable  to an increase in
rental income as a result of an increase in average  annual rental rates at both
investment  properties  offset  by  a  slight  decrease  in  occupancy  at  both
properties.  In  addition,  other  income  increased  at both of the  investment
properties.  At Ralston Place, other income increased as a result of the receipt
of incentive  income from the water company for installing  water saving devices
and  interest  income  and at Woods of  Inverness  due to  increases  in  tenant
reimbursements, late charges and interest income.

The  increase in total  expenses  is  primarily  attributable  to an increase in
operating and  depreciation  expenses,  slightly offset by a decrease in general
and administrative  expenses.  Operating expense increased due to an increase in
advertising  expense  at both  investment  properties  and  increased  sewer and
payroll  expense at Woods of Inverness  Apartments.  The increased  depreciation
expense is primarily due to the increase in depreciable  assets put into service
in the last twelve months.

The  decrease  in  general  and  administrative  expenses  is  primarily  due to
decreased legal costs as a result of the settlement of a legal proceeding during
1999 which was slightly offset by an increase in management  reimbursements  due
to an increase in the cost of services provided by the Managing General Partner.
Included in general and  administrative  expense for the year ended December 31,
2000 and 1999 are  management  reimbursements  to the Managing  General  Partner
allowed under the Partnership Agreement. In addition,  costs associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit required by the Partnership Agreement are also included.

As part of the ongoing  business plan of the  Partnership,  the Managing General
Partner monitors the rental market  environment of its investment  properties to
assess the feasibility of increasing rents,  maintaining or increasing occupancy
levels and protecting  the  Partnership  from increases in expenses.  As part of
this plan, the Managing General Partner attempts to protect the Partnership from
the burden of  inflation-related  increases in expenses by increasing  rents and
maintaining a high overall  occupancy  level.  However,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At  December  31,  2000,  the  Registrant  had  cash  and  cash  equivalents  of
approximately  $262,000 as compared to  approximately  $468,000 at December  31,
1999,  a decrease  of  approximately  $206,000.  The  decrease  in cash and cash
equivalents  is  due  to  approximately  $628,000  of  cash  used  in  investing
activities  and  approximately  $446,000 of cash used in  financing  activities,
partially  offset  by  approximately  $868,000  of cash  provided  by  operating
activities.  Cash used in investing activities consisted of capital improvements
and  replacements  slightly  offset by net withdrawals  from  restricted  escrow
accounts  maintained by the mortgage lender.  Cash used in financing  activities
consisted  of  distributions  to partners  and  principal  payments  made on the
mortgages  encumbering the Registrant's  properties.  The Registrant invests its
working capital reserves in interest bearing accounts.

An  affiliate  of  the  Managing  General  Partner  has  made  available  to the
Partnership  a  credit  line  of  up to  $150,000  per  property  owned  by  the
Partnership.  The Partnership has no outstanding  amounts due under this line of
credit. Based on present plans, the Managing General Partner does not anticipate
the need to borrow in the near future. Other than cash and cash equivalents, the
line of credit is the Partnership's only unused source of liquidity.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements. The Partnership is currently
evaluating  the capital  improvement  needs of the  properties  for the upcoming
year.  The minimum to be  budgeted is expected to be $275 per unit or  $129,800.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the properties as well as replacement reserves and anticipated cash
flow generated by the properties.

The additional  capital  expenditures will be incurred only if cash is available
from operations or from Partnership  reserves.  To the extent that such budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.

The  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness  of  approximately  $7,177,000 is amortized  over 360 months with a
balloon  payment of  approximately  $6,618,000 due January 1, 2006. The Managing
General  Partner  will attempt to refinance  such  indebtedness  and/or sell the
properties  prior to such maturity date. If the properties  cannot be refinanced
or sold for a sufficient amount, the Registrant will risk losing such properties
through foreclosure.

Cash  distributions  from operations of approximately  $358,000 were paid during
the year ended  December 31, 2000, of which  approximately  $333,000 was paid to
limited partners ($2.56 per limited  partnership unit). A cash distribution from
operations of approximately $225,000 was paid during the year ended December 31,
1999, of which  approximately  $209,000 was paid to limited  partners ($1.61 per
limited  partnership  unit).  Subsequent  to the year ended  December 31, 2000 a
distribution from operations was declared and paid of approximately  $40,000, of
which  approximately  $37,000  was paid to limited  partners  ($.28 per  limited
partnership  unit).  Future cash  distributions will depend on the levels of net
cash generated from operations, the availability of cash reserves and the timing
of debt  maturities,  refinancings  and/or  property  sales.  The  Partnership's
distribution  policy is reviewed on a quarterly basis. There can be no assurance
that the  Partnership  will  generate  sufficient  funds from  operations  after
required capital  expenditures,  to permit further distributions to its partners
in 2001 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 75,071.69 limited partnership units
in the Partnership representing approximately 57.75% of the outstanding units at
December  31,  2000.  A number of these units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers.  In this regard,  on February 8, 2001,  AIMCO  Properties,  L.P.,
commenced a tender offer to acquire all of the Units not owned by  affiliates of
AIMCO for a purchase  price of $46.00 per Unit.  Pursuant to this  offer,  AIMCO
acquired  an  additional  702  units  resulting  in its  total  ownership  being
increased to 75,773.69 units or  approximately  58.29% of the total  outstanding
units. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action with  respect to a variety of matters,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the Managing General  Partner.  As a
result of its ownership of approximately  58.29% of the outstanding units, AIMCO
is in a  position  to  influence  all  voting  decisions  with  respect  to  the
Registrant. When voting on matters, AIMCO would in all likelihood vote the Units
it acquired  in a manner  favorable  to the  interest  of the  Managing  General
Partner because of its affiliation with the Managing  General Partner.  However,
with respect to 47,326.68 units,  owned by Insignia  Properties LP, an affiliate
of the Managing General Partner,  such affiliate is required to vote such Units:
(i) against any increase in compensation payable to the Managing General Partner
or to  affiliates;  and  (ii)  on  all  other  matters  submitted  by it or  its
affiliates, in proportion to the votes cast by non-tendering unitholders. Except
for the foregoing, no other limitations are imposed on AIMCO and its affiliates'
ability to influence voting decisions with respect to the Partnership.

<PAGE>
Item 7.  Financial Statements

CENTURY PROPERTIES FUND XVI

LIST OF FINANCIAL STATEMENTS

     Report of Ernst & Young, LLP Independent Auditors

     Consolidated Balance Sheet - December 31, 2000

     Consolidated  Statements of Operations - Years ended  December 31, 2000 and
     1999

     Consolidated  Statements of Changes in Partners'  (Deficit) Capital - Years
     ended December 31, 2000 and 1999

     Consolidated  Statements of Cash Flows - Years ended  December 31, 2000 and
     1999

     Notes to Consolidated Financial Statements


<PAGE>


                 Report of Ernst & Young LLP, Independent Auditors



The Partners
Century Properties Fund XVI


We  have  audited  the  accompanying   consolidated  balance  sheet  of  Century
Properties  Fund XVI as of  December  31,  2000,  and the  related  consolidated
statements of operations, changes in partners' (deficit) capital, and cash flows
for each of the two years in the period ended December 31, 2000. These financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made  by the  Partnership's  management,  as  well  as  evaluating  the  overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the consolidated financial position of Century Properties
Fund XVI at December 31, 2000,  and the  consolidated  results of its operations
and its cash flows for each of the two years in the period  ended  December  31,
2000, in conformity with accounting  principles generally accepted in the United
States.

                                                           /s/ ERNST & YOUNG LLP


Greenville, South Carolina
March 15, 2001

<PAGE>




                           CENTURY PROPERTIES FUND XVI
                           CONSOLIDATED BALANCE SHEET
                          (in thousands, except unit data)

                                December 31, 2000

<TABLE>
<CAPTION>

Assets
<S>                                                                       <C>
   Cash and cash equivalents                                              $    262
   Receivables and deposits                                                    245
   Restricted escrows                                                           55
   Other assets                                                                193
   Investment properties (Notes C and F):
      Land                                                    $ 1,409
      Buildings and related personal property                   15,340
                                                                16,749
      Less accumulated depreciation                             (8,971)      7,778
                                                                           $ 8,533

Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                       $    177
   Accrued property taxes                                                      172
   Tenant security deposit liabilities                                          41
   Other liabilities                                                           130
   Mortgage notes payable (Notes C and F)                                    7,177

Partners' (Deficit) Capital
   General partners                                           $ (3,847)
   Limited partners (130,000 units
      issued and outstanding)                                    4,683         836
                                                                            $8,533
</TABLE>

           See Accompanying Notes to Consolidated Financial Statements

<PAGE>

                           CENTURY PROPERTIES FUND XVI
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                          (in thousands, except unit data)

<TABLE>
<CAPTION>



                                                           Years Ended December 31,
                                                              2000         1999
Revenues:
<S>                                                           <C>         <C>
   Rental income                                              $2,975      $2,944
   Other income                                                  167         117
      Total revenues                                           3,142       3,061

Expenses:
   Operating                                                   1,281       1,150
   General and administrative                                    244         255
   Depreciation                                                  629         538
   Interest                                                      601         607
   Property tax                                                  245         255

      Total expenses                                           3,000       2,805

Net income                                                    $  142      $  256

Net income allocated to general partners (6.9%)               $   10      $   18

Net income allocated to limited partners (93.1%)                 132         238

                                                              $  142      $  256

Net income per limited partnership unit                       $ 1.02      $ 1.83

Distributions per limited partnership unit                    $ 2.56      $ 1.61
</TABLE>

           See Accompanying Notes to Consolidated Financial Statements

<PAGE>

                            CENTURY PROPERTIES FUND XVI
         CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                          (in thousands, except unit data)


                                   Limited
                                  Partnership    General    Limited
                                     Units      Partners    Partners      Total

Original capital contributions     130,000     $    --       $65,000   $ 65,000

Partners' (deficit) capital
   at December 31, 1998            130,000     $(3,834)      $ 4,855   $  1,021


Distributions to partners               --         (16)         (209)      (225)
Net income for the year
   ended December 31, 1999              --          18           238        256

Partners' (deficit) capital at
   December 31, 1999               130,000      (3,832)        4,884      1,052

Distributions to partners               --         (25)         (333)      (358)

Net income for the year
   ended December 31, 2000              --          10           132        142

Partners' (deficit) capital
   at December 31, 2000            130,000     $(3,847)      $ 4,683   $    836

           See Accompanying Notes to Consolidated Financial Statements


<PAGE>


                           CENTURY PROPERTIES FUND XVI

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (in thousands)
<TABLE>
<CAPTION>

                                                              Year Ended December 31,
                                                                  2000        1999
Cash flows from operating activities:
<S>                                                              <C>           <C>
  Net income                                                     $  142        $ 256
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                                     629          538
   Amortization of loan costs                                        32           32
   Change in accounts:
      Receivables and deposits                                       79           46
      Other assets                                                    6          (30)
      Accounts payable                                               51          (23)
      Accrued property taxes                                         (8)         (65)
      Tenant security deposit liabilities                            (1)          (9)
      Other liabilities                                             (62)          83

      Net cash provided by operating activities                     868          828

Cash flows from investing activities:
  Property improvements and replacements                           (683)        (409)
  Net withdrawals (deposits to) from restricted escrows              55          (10)

       Net cash used in investing activities                       (628)        (419)

Cash flows from financing activities:
  Distributions to partners                                        (358)        (225)
  Payments on mortgage notes payable                                (88)         (82)

       Net cash used in financing activities                       (446)        (307)

Net (decrease) increase in cash and cash equivalents               (206)         102

Cash and cash equivalents at beginning of year                      468          366

Cash and cash equivalents at end of year                         $  262        $ 468

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $  616        $ 576

Supplemental disclosure of non-cash activity:
 Property improvements and replacements included in
    accounts payable                                             $   93        $  81
</TABLE>

           See Accompanying Notes to Consolidated Financial Statements


<PAGE>



                           CENTURY PROPERTIES FUND XVI
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note A - Organization and Significant Accounting Policies

Organization: Century Properties Fund XVI (the "Partnership" or "Registrant") is
a  California  limited  partnership  organized  in December  1980 to acquire and
operate residential apartment properties. The Partnership's general partners are
Fox Capital  Management  Corporation  ("FCMC" or the "Managing General Partner")
and Fox Realty  Investors  ("FRI").  As of December  31, 2000,  the  Partnership
operates  two  residential  apartment  complexes,  one each located in Texas and
Florida.  The Managing  General Partner is a subsidiary of Apartment  Investment
and  Management  Company  ("AIMCO"),  a publicly  traded real estate  investment
trust. (See "Note B - Transfer of Control".) The Partnership  Agreement provides
that the  Partnership  is to terminate  on December  31, 2025 unless  terminated
prior to such date. The directors and officers of the Managing  General  Partner
also serve as executive officers of AIMCO.

Principles of Consolidation: The Partnership's consolidated financial statements
include the accounts of the Partnership and its wholly owned subsidiaries.

Use of Estimates:  The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

Allocation to Partners:  Net income and losses (excluding those arising from the
occurrence of sales or  dispositions) of the Partnership will be allocated 5% to
the general partners with the remaining 95% allocated 2% to the general partners
and 98% to the limited partners.

Distributions of available cash,  except as discussed below, are allocated 5% to
the general partners with the remaining 95% allocated 2% to the general partners
and 98% to the limited partners.

In accordance  with the Partnership  Agreement,  any gain from the sale or other
disposition of  Partnership  properties  shall be allocated:  (i) to the general
partners to the extent they are entitled to receive  distributions of cash; (ii)
7% to the general  partners and 93% to the limited  partners,  to the extent the
general  partners  have a deficit  capital  balance;  and  (iii) to the  limited
partners.

Cash  from  sales or other  disposition,  or  refinancing  and  working  capital
reserves must be distributed  in the following  order:  (i) first,  an aggregate
amount as  discussed  above to each  Limited  Partner  which equals the total of
their original  invested capital  contributed plus 8% per year,  determined on a
cumulative,  noncompounded  basis,  on adjusted  invested  capital,  adjusted as
needed,  of such Limited  Partnership Unit Holder;  (ii) second,  to the general
partners  15% of any  additional  cash from  sales or  refinancing  and  working
capital  reserve  available for  distribution,  and (iii) the remainder shall be
allocated 98% to the limited partners and 2% to the general partners.  Upon sale
of all properties and termination of the  Partnership,  the general partners may
be required to contribute  certain funds to the  Partnership in accordance  with
the Partnership Agreement.

Cash and Cash  Equivalents:  Cash and cash equivalents  include cash on hand, in
banks and money market accounts.  At certain times, the amount of cash deposited
at a bank may exceed  the limit on  insured  deposits.  Cash  balances  included
approximately  $209,000  at  December  31,  2000  that  are  maintained  by  the
affiliated   management  company  on  behalf  of  affiliated  entities  in  cash
concentration accounts.

Depreciation:  Depreciation is calculated by the  straight-line  method over the
estimated lives of the rental properties and related personal property.

Leases: The Partnership  generally leases apartment units for twelve-month terms
or less. The Partnership recognizes income as earned on its leases. In addition,
the Managing  General  Partner's  policy is to offer rental  concessions  during
particularly  slow months or in response to heavy competition from other similar
complexes  in the  area.  Concessions  are  charged  against  rental  income  as
incurred.

Tenant  Security  Deposits:  The  Partnership  requires  security  deposits from
lessees for the duration of the lease.  The security  deposits are refunded when
the tenant vacates, provided the tenant has not damaged its space and is current
on its rental payments.

Loan  Costs:  Loan  costs  of  $319,000  are  included  in other  assets  in the
accompanying   consolidated   balance  sheet  and  are  being   amortized  on  a
straight-line  basis  over  the  life  of  the  loans.  At  December  31,  2000,
accumulated amortization is $158,000.  Amortization of loan costs is included in
interest expense.

Investment Properties:  Investment properties consist of two apartment complexes
and are  stated  at cost.  Acquisition  fees are  capitalized  as a cost of real
estate.  In accordance with Financial  Accounting  Standards Board Statement No.
121,  "Accounting  for the  Impairment of Long-Lived  Assets and for  Long-Lived
Assets  to be  Disposed  Of",  the  Partnership  records  impairment  losses  on
long-lived assets used in operations when events and circumstances indicate that
the assets might be impaired  and the  undiscounted  cash flows  estimated to be
generated by those assets are less than the  carrying  amounts of these  assets.
Costs of apartment  properties  that have been  permanently  impaired  have been
written down to appraised  value.  No  adjustments  for impairment of value were
recorded in the years ended December 31, 2000 or 1999.

Fair Value:  Statement  of  Financial  Accounting  Standards  ("SFAS")  No. 107,
"Disclosures about Fair Value of Financial Instruments",  as amended by SFAS No.
119,  "Disclosures  about  Derivative  Financial  Instruments  and Fair Value of
Financial  Instruments"  requires  disclosure  of fair value  information  about
financial instruments, whether or not recognized in the balance sheet, for which
it is practicable  to estimate fair value.  Fair value is defined in the SFAS as
the amount at which the instruments could be exchanged in a current  transaction
between  willing  parties,  other  than in a forced  or  liquidation  sale.  The
Partnership  believes  that the  carrying  amount of its  financial  instruments
(except for long term debt)  approximates their fair value due to the short term
maturity of these  instruments.  The fair value of the  Partnership's  long term
debt,  after  discounting the scheduled loan payments to maturity,  approximates
its carrying value.

Advertising  Costs:  The  Partnership  expenses  the  costs  of  advertising  as
incurred.  Advertising costs of approximately  $78,000 and $47,000 for the years
ended  December  31,  2000 and 1999,  respectively,  were  charged to  operating
expenses.

Segment Reporting: SFAS No. 131, "Disclosure about Segments of an Enterprise and
Related  Information"  established  standards  for the way that public  business
enterprises  report  information  about operating  segments in annual  financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports.  It also establishes  standards
for related disclosures about products and services, geographic areas, and major
customers.  As defined in SFAS No. 131, the  Partnership has only one reportable
segment.  The Managing General Partner believes that  segment-based  disclosures
will  not  result  in a  more  meaningful  presentation  than  the  consolidated
financial statements as currently presented.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation  (the "Insignia  Merger").  As a result,  AIMCO
acquired 100% ownership  interest in the Managing General Partner.  The Managing
General  Partner does not believe that this  transaction  has had or will have a
material effect on the affairs and operations of the Partnership.

Note C - Mortgage Notes Payable

The principal terms of mortgage notes payable are as follows:
<TABLE>
<CAPTION>

                       Principal    Monthly                                    Principal
                       Balance At   Payment                                     Balance
                      December 31, Including Interest    Period    Maturity     Due At
       Property           2000      Interest   Rate    Amortized     Date      Maturity
                          (in thousands)                                     (in thousands)

<S>                      <C>        <C>        <C>      <C>         <C>          <C>
 Ralston Place           $ 2,186    $    17    7.88%    30 years    1/2006       $ 2,016
 Woods of Inverness
  Apartments               4,991         38    7.88%    30 years    1/2006         4,602
                         $ 7,177    $    55                                      $ 6,618
</TABLE>

The mortgage  notes payable are  nonrecourse  and are secured by a pledge of the
respective  apartment properties and by a pledge of revenues from the respective
apartment  properties.  Prepayment  penalties  are  required if repaid  prior to
maturity.   Further,  the  properties  may  not  be  sold  subject  to  existing
indebtedness.

An  affiliate  of  the  Managing  General  Partner  has  made  available  to the
Partnership  a  credit  line  of  up to  $150,000  per  property  owned  by  the
Partnership.  The Partnership has no outstanding  amounts due under this line of
credit.

Scheduled  principal  payments of mortgage notes payable  subsequent to December
31, 2000 are as follows (in thousands):

                             2001             $    95
                             2002                 103
                             2003                 111
                             2004                 120
                             2005                 130
                          Thereafter            6,618
                                              $ 7,177

Note D - Income Taxes

Taxable income or loss of the  Partnership is reported in the income tax returns
of its  partners.  Accordingly,  no  provision  for income  taxes is made in the
financial statements of the Partnership.

Differences between the net income as reported and Federal taxable income result
primarily from  depreciation  over different  methods and lives and on differing
cost basis. The following is a reconciliation of reported net income and Federal
taxable income:

                                                     2000          1999
                                             (in thousands, except unit data)

Net income as reported                              $ 142          $ 256
Add (deduct):
  Unearned revenue                                     31             --
  Depreciation differences                            359            368
  Miscellaneous                                        (4)           (56)

Federal taxable income                              $ 528          $ 568

Federal taxable income per limited
  partnership unit                                  $3.76          $4.07

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities (in thousands):

                                                 2000
Net assets as reported                         $  836
Land and buildings                                925
Accumulated depreciation                       (5,010)
Syndication and distribution costs              8,258
Other                                             134
Net assets - Federal tax basis                 $5,143

Note E - Transactions with Affiliated Parties

The  Partnership  has no employees  and is dependent  upon the Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The Partnership Agreement provides for (i) payments to
affiliates for services and (ii)  reimbursement of certain expenses  incurred by
affiliates on behalf of the Partnership. The following expenses were paid to the
Managing General Partner and affiliates in 2000 and 1999:

                                                           2000        1999
                                                             (in thousands)

Property management fees (included in operating
   expense)                                                $157        $153

Reimbursement for services of affiliates (included
   in investment property and general and
   administrative and operating expenses)                   188         101

During the years ended  December 31, 2000 and 1999,  affiliates  of the Managing
General  Partner were  entitled to receive 5% of gross  receipts from all of the
Registrant's   properties  for  providing  property  management  services.   The
Registrant paid to such affiliates  approximately  $157,000 and $153,000 for the
years ended December 31, 2000 and 1999, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $188,000 and
$101,000 for the years ended December 31, 2000 and 1999, respectively.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 75,071.69 limited partnership units
in the Partnership representing approximately 57.75% of the outstanding units at
December  31,  2000.  A number of these units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers.  In this regard,  on February 8, 2001,  AIMCO  Properties,  L.P.,
commenced a tender offer to acquire all of the Units not owned by  affiliates of
AIMCO for a purchase  price of $46.00 per Unit.  Pursuant to this  offer,  AIMCO
acquired  an  additional  702  units  resulting  in its  total  ownership  being
increased to 75,773.69 units or  approximately  58.29% of the total  outstanding
units. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action with  respect to a variety of matters,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the Managing General  Partner.  As a
result of its ownership of approximately  58.29% of the outstanding units, AIMCO
is in a  position  to  influence  all  voting  decisions  with  respect  to  the
Registrant. When voting on matters, AIMCO would in all likelihood vote the Units
it acquired  in a manner  favorable  to the  interest  of the  Managing  General
Partner because of its affiliation with the Managing  General Partner.  However,
with respect to 47,326.68 units,  owned by Insignia  Properties LP, an affiliate
of the Managing General Partner,  such affiliate is required to vote such Units:
(i) against any increase in compensation payable to the Managing General Partner
or to  affiliates;  and  (ii)  on  all  other  matters  submitted  by it or  its
affiliates, in proportion to the votes cast by non-tendering unitholders. Except
for the foregoing, no other limitations are imposed on AIMCO and its affiliates'
ability to influence voting decisions with respect to the Partnership.

Note F - Investment Properties and Accumulated Depreciation
<TABLE>
<CAPTION>

                                                    Initial Cost
                                                   To Partnership
                                                   (in thousands)
                                                                             Costs
                                                          Buildings       Capitalized
                                                         and Related       (Removed)
                                                           Personal      Subsequent to
         Description           Encumbrances     Land       Property       Acquisition
                              (in thousands)                             (in thousands)

<S>                              <C>          <C>          <C>            <C>
Ralston Place                    $ 2,186      $  504       $ 4,702        $ 1,440
Woods of Inverness                 4,991       1,292        10,305         (1,494)

Total                            $ 7,177      $1,796       $15,007        $   (54)
</TABLE>

<TABLE>
<CAPTION>

                              Gross Amount At Which
                                     Carried
                              At December 31, 2000
                                    (in thousands)

                                    Buildings
                                   And Related
                                      Personal             Accumulated     Date    Depreciable
        Description           Land    Property    Total    Depreciation  Acquired   Life-Years
                                                          (in thousands)

<S>                          <C>     <C>         <C>         <C>           <C>      <C>
Ralston Place                $  504  $ 6,142     $ 6,646     $3,553        06/82    5-30 years
Woods of Inverness              905    9,198      10,103      5,418        07/82    5-30 years

Total                        $1,409  $15,340     $16,749     $8,971
</TABLE>

Reconciliation of Investment Properties and Accumulated Depreciation:

                                                Years Ended December 31,
                                                  2000            1999
                                                     (in thousands)

Balance at beginning of year                   $16,054          $15,564
    Property improvements                          695              490

Balance at end of year                         $16,749          $16,054

Accumulated Depreciation

Balance at beginning of year                   $ 8,342          $ 7,804
    Additions charged to expense                   629              538

Balance at end of year                         $ 8,971          $ 8,342

The aggregate cost of the investment  properties for Federal income tax purposes
at December 31, 2000 and 1999, is  approximately  $17,674,000  and  $16,980,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 2000 and 1999, is  approximately  $13,981,000  and  $13,710,000,
respectively.

Note G - Distributions

Cash  distributions  from operations of approximately  $358,000 were paid during
the year ended  December 31, 2000, of which  approximately  $333,000 was paid to
limited partners ($2.56 per limited  partnership unit). A cash distribution from
operations of approximately $225,000 was paid during the year ended December 31,
1999, of which  approximately  $209,000 was paid to limited  partners ($1.61 per
limited  partnership  unit).  Subsequent to the year ended  December 31, 2000, a
distribution  from operations was declared and paid of approximately  $40,000 of
which  approximately  $37,000  was paid to limited  partners  ($.28 per  limited
partnership unit).

Note H - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the  Partnership,  its Managing  General Partner and several of their affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging,  among other things,  the  acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc.  ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited  partnership units;  management of
the  partnerships  by the  Insignia  affiliates;  and the Insignia  Merger.  The
plaintiffs  seek  monetary  damages and  equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the Managing General Partner
filed a motion  seeking  dismissal of the action.  In lieu of  responding to the
motion, the plaintiffs filed an amended complaint.  The Managing General Partner
filed demurrers to the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001,
and  defendants  are  scheduled to respond to the complaint by March 2, 2001. On
March 2, 2001, the Managing  General Partner and its affiliates filed a demurrer
to the third amended complaint. The Managing General Partner does not anticipate
that  costs  associated  with this case will be  material  to the  Partnership's
overall operations.


The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 8. Changes in and Disagreements with Accountant on Accounting and Financial
        Disclosures

        None.


<PAGE>


                                    PART III


Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance
        with Section 16(a) of the Exchange Act

Century  Properties  Fund XVI (the  "Partnership"  or the  "Registrant")  has no
officers  or  directors.  Fox  Capital  Management  Corporation  ("FCMC"  or the
"Managing  General  Partner"),  manages and  controls  substantially  all of the
Partnership's  affairs and has general  responsibility  in all matters affecting
its business.

The names and ages of, as well as the positions and offices held by, the present
executive  officers and director of the Managing  General  Partner are set forth
below.  There are no family  relationships  between  or among  any  officers  or
directors.

Name                        Age    Position

Patrick J. Foye              43    Executive Vice President and Director
Martha L. Long               41    Senior Vice President and Controller

Patrick J. Foye has been  Executive  Vice President and Director of the Managing
General  Partner  since October 1, 1998.  Mr. Foye has served as Executive  Vice
President  of AIMCO  since May 1998.  Prior to  joining  AIMCO,  Mr.  Foye was a
partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP from 1989 to
1998 and was  Managing  Partner  of the  firm's  Brussels,  Budapest  and Moscow
offices from 1992  through  1994.  Mr. Foye is also Deputy  Chairman of the Long
Island  Power   Authority  and  serves  as  a  member  of  the  New  York  State
Privatization  Council.  He received a B.A. from Fordham College and a J.D. from
Fordham University Law School.

Martha L. Long has been Senior Vice  President  and  Controller  of the Managing
General  Partner since October 1998 as a result of the  acquisition  of Insignia
Financial  Group,  Inc. As of February 2001, Ms. Long was also appointed head of
the service  business for AIMCO.  From June 1994 until January 1997, she was the
Controller for Insignia, and was promoted to Senior Vice President - Finance and
Controller in January 1997,  retaining that title until October 1998.  From 1988
to June 1994,  Ms. Long was Senior Vice  President and  Controller for The First
Savings Bank, FSB in Greenville, South Carolina.

One or more of the above persons are also directors and/or officers of a general
partner (or general partner of a general partner) of limited  partnerships which
either have a class of  securities  registered  pursuant to Section 12(g) of the
Securities Exchange Act of 1934, or are subject to the reporting requirements of
Section  15(d) of such Act.  Further,  one or more of the above persons are also
directors and/or officers of Apartment Investment and Management Company and the
general  partner  of  AIMCO  Properties,  L.P.,  entities  that  have a class of
securities  registered  pursuant to Section 12(g) of the Securities Exchange Act
of 1934, or are subject to the reporting  requirements of Section 15 (d) of such
Act.

The executive  officers and director of the Managing General Partner fulfill the
obligations  of the Audit  Committee  and  oversee the  Partnership's  financial
reporting process on behalf of the Managing General Partner.  Management has the
primary  responsibility  for the financial  statements and the reporting process
including  the  systems  of  internal  controls.  In  fulfilling  its  oversight
responsibilities,  the executive  officers and director of the Managing  General
Partner reviewed the audited  financial  statements with management  including a
discussion  of the  quality,  not  just  the  acceptability,  of the  accounting
principles,  the  reasonableness  of significant  judgments,  and the clarity of
disclosures in the financial statements.

The executive  officers and director of the Managing  General  Partner  reviewed
with the independent auditors,  who are responsible for expressing an opinion on
the conformity of those audited  financial  statements  with generally  accepted
accounting  principles,  their  judgments  as  to  the  quality,  not  just  the
acceptability, of the Partnership's accounting principles and such other matters
as are required to be discussed with the Audit Committee or its equivalent under
generally  accepted  auditing  standards.   In  addition,  the  Partnership  has
discussed  with  the  independent  auditors  the  auditors'   independence  from
management and the Partnership  including the matters in the written disclosures
required by the Independence Standards Board and considered the compatibility of
non-audit services with the auditors' independence.

The executive  officers and director of the Managing  General Partner  discussed
with the  Partnership's  independent  auditors  the overall  scope and plans for
their audit. In reliance on the reviews and discussions  referred to above,  the
executive officers and director of the Managing General Partner has approved the
inclusion of the audited  financial  statements  in the Form 10-KSB for the year
ended December 31, 2000 for filing with the Securities and Exchange Commission.

The Managing  General Partner has  reappointed  Ernst & Young LLP as independent
auditors to audit the financial  statements of the  Partnership  for the current
fiscal  year.  Fees for the last  fiscal  year were  annual  audit  services  of
approximately  $30,000  and  non-audit  services  (principally  tax-related)  of
approximately $15,000.

Item 10. Executive Compensation

No direct form of compensation  or  remuneration  was paid by the Partnership to
any officer or director of Fox Capital Management Corporation. However, fees and
other payments have been made to the Partnership's  Managing General Partner and
its  affiliates,  as described in "Item 12.  Certain  Relationships  and Related
Transactions."

Item 11. Security Ownership of Certain Beneficial Owners and Management

Except as noted below, no person or entity was known by the Registrant to be the
beneficial  owner  of  more  than 5% of the  Limited  Partnership  Units  of the
Registrant as of December 31, 2000.

    Name of                                                    Percentage
Beneficial Owner                          Number of Units       of Class

Insignia Properties, LP
  (an affiliate of AIMCO)                    47,488.68           36.53%
AIMCO Properties, LP
  (an affiliate of AIMCO)                    27,383.01           21.06%
Fox Capital Management Corp
  (an affiliate of AIMCO)`                      200.00            0.16%

Insignia   Properties  LP  and  Fox  Capital  Management  Corp.  are  indirectly
ultimately  owned by AIMCO.  Their  business  addresses  are 55  Beattie  Place,
Greenville, SC 29602.

AIMCO Properties LP is indirectly  ultimately  controlled by AIMCO. Its business
address is 2000 South Colorado Blvd, Denver, Colorado 80222.

No director or officer of the Managing General Partner owns any units.

Item 12. Certain Relationships and Related Transactions

The  Partnership  has no employees  and is dependent  upon the Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The Partnership Agreement provides for (i) payments to
affiliates for services and (ii)  reimbursement of certain expenses  incurred by
affiliates on behalf of the Partnership. The following expenses were paid to the
Managing General Partner and affiliates in 2000 and in 1999:

                                                           2000        1999
                                                             (in thousands)

Property management fees                                   $157        $153

Reimbursement for services of affiliates                    188         101

During the years ended  December 31, 2000 and 1999,  affiliates  of the Managing
General  Partner were  entitled to receive 5% of gross  receipts from all of the
Registrant's   properties  for  providing  property  management  services.   The
Registrant paid to such affiliates  approximately  $157,000 and $153,000 for the
years ended December 31, 2000 and 1999, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $188,000 and
$101,000 for the years ended December 31, 2000 and 1999, respectively.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 75,071.69 limited partnership units
in the Partnership representing approximately 57.75% of the outstanding units at
December  31,  2000.  A number of these units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers.  In this regard,  on February 8, 2001,  AIMCO  Properties,  L.P.,
commenced a tender offer to acquire all of the Units not owned by  affiliates of
AIMCO for a purchase  price of $46.00 per Unit.  Pursuant to this  offer,  AIMCO
acquired  an  additional  702  units  resulting  in its  total  ownership  being
increased to 75,773.69 units or 58.29% of the total outstanding units. Under the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take action with respect to a variety of matters, which would include without
limitation, voting on certain amendments to the Partnership Agreement and voting
to  remove  the  Managing  General  Partner.  As a result  of its  ownership  of
approximately  58.29%  of the  outstanding  units,  AIMCO  is in a  position  to
influence all voting  decisions with respect to the  Registrant.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable  to the  interest  of the  Managing  General  Partner  because  of its
affiliation  with  the  Managing  General  Partner.  However,  with  respect  to
47,326.68 units,  owned by Insignia  Properties LP, an affiliate of the Managing
General Partner,  such affiliate is required to vote such Units: (i) against any
increase  in  compensation  payable  to  the  Managing  General  Partner  or  to
affiliates;  and (ii) on all other matters submitted by it or its affiliates, in
proportion  to the  votes  cast by  non-tendering  unitholders.  Except  for the
foregoing, no other limitations are imposed on AIMCO and its affiliates' ability
to influence voting decisions with respect to the Partnership.

Item 13. Exhibits and Reports on Form 8-K

        (a)  Exhibits:

             None.

        (b)  Reports on Form 8-K filed  during the quarter  ended  December  31,
             2000.

             None.
<PAGE>


                                   SIGNATURES



In  accordance  with  section 13 or 15(d) of the Exchange  Act,  the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                 CENTURY PROPERTIES FUND XVI

                                 By:     Fox Capital Management Corporation
                                         Managing General Partner

                                 By:     /s/Patrick J. Foye
                                         Patrick J. Foye
                                         Executive Vice President

                                 By:     /s/Martha L. Long
                                         Senior Vice President and
                                         Controller

                                 Date:   March 26, 2001

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf by the  registrant and in the capacities and on the
date indicated.

/s/Patrick J. Foye               Date:   March 26, 2001
Patrick J. Foye
Executive Vice President
and Director

/s/Martha L. Long                Date:   March 26, 2001
Martha L. Long
Senior Vice President and
Controller


<PAGE>


                           CENTURY PROPERTIES FUND XVI

                                  EXHIBIT INDEX


Exhibit Number    Description of Exhibit

      2.1      Agreement and Plan of Merger, dated as of October 1, 1999, by and
               between AIMCO and IPT  (incorporated  by reference to Exhibit 2.1
               of IPT's  Current  Report or Form  8-K,  file No.  1-4179,  dated
               October 1, 1999. (Page 1)

      2.5      Master Indemnity  Agreement  incorporated by reference to Exhibit
               2.5 to Form 8-K filed by Insignia  Financial Group, Inc. with the
               Securities and Exchange Commission on September 1, 1995. (Page 2)

      3.4      Agreement  of Limited  Partnership  incorporated  by reference to
               Exhibit A to the  Prospectus of the  Registrant  dated August 17,
               1981 and  thereafter  supplemented  June 25, 1979 and  thereafter
               supplemented, included in the Registrant's Registration Statement
               on Form S-11 (Reg. No. 2-71473). (Page 3)

     10.1      Form of First  Mortgage  Note dated as of December  29, 1995 from
               the  Registrant  to  Secore  Financial   Corporation   ("Secore")
               relating  to  the  refinancing  of  the  Landings  and  Woods  of
               Inverness  incorporated  by  reference  to  Exhibit  10.1  to the
               Registrant's  Annual  Report of Form  10-KSB  for the year  ended
               December 31, 1995. (Page 4)

     10.2      Form of First  Mortgage  Note dated as of December  29, 1995 from
               the  Registrant  to Secore  relating  to the  refinancing  of the
               Landings  and Woods of  Inverness  incorporated  by  reference to
               Exhibit 10.2 to the Registrant's Annual Report of Form 10-KSB for
               the year ended December 31, 1995. (Page 4)