March 8, 2000

United States

Securities and Exchange Commission
Washington, D.C.  20549


RE:   Century Properties XVI
      Form 10-KSB
      File No. 0-10435

To Whom it May Concern:

The  accompanying  Form 10-KSB for the year ended  December 31, 1999 describes a
change in the method of  accounting to  capitalize  exterior  painting and major
landscaping,   which  would  have  been  expensed  under  the  old  policy.  The
Partnership believes that this accounting principle change is preferable because
it  provides a better  matching  of  expenses  with the  related  benefit of the
expenditures and it is consistent with industry practice and the policies of the
Managing General Partner.

Please do not hesitate to contact the undersigned with any questions or comments
that you might have.

Very truly yours,




Stephen Waters
Real Estate Controller


<PAGE>


 ------------------------------------------------------------------------------

                    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, 1999

[ ]   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.

State issuer's revenues for its most recent fiscal year.  $3,061,000

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, 1999. 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"), 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:

<TABLE>
<CAPTION>

                               Date of
Property                       Purchase      Type of Ownership             Use

<S>                            <C>        <C>                         <C>
Ralston Place (formerly         06/82     Fee ownership subject        Apartments
The Landings Apartments)                  to first mortgage (1)         200 units
  Tampa, Florida

Woods of Inverness              07/82     Fee ownership subject        Apartments
 Apartments                               to first mortgage (1)         272 units
  Houston, Texas

</TABLE>

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


<PAGE>



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>     <C>

Ralston Place (formerly      $ 6,315     $ 3,302       5-30 yrs     (1)     $  1,272
 The Landings Apartments)
Woods of Inverness             9,739       5,040       5-30 yrs     (1)     $  1,998
                              ------      ------                              ------
 Apartments                  $16,054     $ 8,342                            $  3,270
                              ======      ======                              ======

</TABLE>

(1)   Straight - line

See  "Item  7.  Financial   Statements,   Note  A"  for  a  description  of  the
Partnership's  depreciation  policy and " Item 7. Financial  Statements,  Note J
Change in Accounting Principle".

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                1999        Rate    Amortized     Date      Maturity
         --------                ----        ----    ---------     ----      --------
                            (in thousands)                                (in thousands)
<S>                         <C>              <C>      <C>        <C>       <C>

Ralston Place (formerly
 The Landings Apartments)    $ 2,213         7.88%    30 years    1/2006     $ 2,016
Woods of Inverness
 Apartments                    5,052         7.88%    30 years    1/2006       4,602
                              ------                                          ------
                             $ 7,265                                         $ 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.


<PAGE>



Rental Rates and Occupancy:

Average annual rental rate and occupancy for 1999 and 1998 for each property:

                                        Average Annual           Average Annual
                                         Rental Rates               Occupancy
                                         ------------               ---------
                                          (per unit)
 Property                            1999         1998         1999        1998
 --------                            ----         ----         ----        ----

 Ralston Place (formerly           $ 5,606       $ 5,374        96%         95%
   The Landings Apartments)
 Woods of Inverness Apartments       7,227         7,098        96%         97%

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly  competitive.  All of the  properties of the  Partnership  are subject to
competition  from other  apartment  complexes in the area. The Managing  General
Partner  believes  that  all 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.
All  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 1999 for each property were:

                                           1999            1999
                                         Billing           Rate
                                      (in thousands)

Ralston Place (formerly The
 Landings Apartments)                      $ 75            2.50%
Woods of Inverness Apartments               169            2.75%

Capital Improvements:

Ralston Place  (formerly The Landings  Apartments):  The  Partnership  completed
approximately  $286,000 in capital  expenditures at Ralston Place as of December
31, 1999,  consisting  primarily of flooring,  appliances,  recreation  facility
additions, structural improvements, parking lot enhancements,  landscaping and a
roofing project.  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  $300  per  unit  or  $60,000.  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
$204,000 in capital  expenditures  at The Woods of  Inverness  Apartments  as of
December 31, 1999,  consisting primarily of flooring,  structural  improvements,
plumbing, fencing, electrical improvements,  and 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 $300 per unit
or $81,600.  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,  the 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  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Item 7. Financial  Statements,  Note B - Transfer of Control").  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 have 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 final court  approval,  on behalf of the Partnership and all
limited partners who own units as of November 3, 1999.  Preliminary  approval of
the  settlement  was obtained on November 3, 1999 from the Superior Court of the
State of  California,  County of San Mateo,  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
class  plaintiffs'  counsel to enter the  settlement.  On December 14, 1999, the
Managing General Partner and its affiliates  terminated the proposed settlement.
Certain  plaintiffs  have filed a motion to disqualify  some of the  plaintiffs'
counsel in the action.  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, 1999, 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
4,021 Limited Partners of record. Affiliates of the Managing General Partner own
66,851.01  Units or 51.42% at December 31, 1999.  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, 1998 and 1999:

                                                   Distributions

                                                              Per Limited
                                             Aggregate       Partnership Unit

1/1/98 - 12/31/98                               --                  --

1/1/99 - 12/31/99                         $225,000  (1)          $1.61

(1)  Distribution  was made from cash from  operations.  See "Item 7.  Financial
     Statements, Note H" 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 semi-annual  basis. There can be no assurance,  however,  that the
Partnership  will generate  sufficient  funds from  operations,  after  required
capital  expenditures,  to permit any  distributions  to its partners in 2000 or
subsequent   periods.   See  "Item  2.   Description  of  Properties  -  Capital
Improvements" for information  relating to anticipated  capital  expenditures at
the properties.

Several tender offers were made by various parties,  including affiliates of the
Managing General Partner,  during the years ended December 31, 1999 and 1998. As
a result  of  these  tender  offers,  AIMCO  and its  affiliates  currently  own
66,851.01 units of limited  partnership  units in the  Partnership  representing
51.42% of the  outstanding  units.  It is possible that AIMCO or its  affiliates
will  make  one  or  more  additional  offers  to  acquire   additional  limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  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 their  affiliation
with the Managing General Partner.

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, 1999 was  approximately
$256,000 as compared to  approximately  $127,000 for the year ended December 31,
1998. (See "Item 7. Financial Statements,  Note D" for a reconciliation of these
amounts to the Registrant's  federal taxable income (loss)). The increase in net
income  was due to an  increase  in  total  revenues  and a  decrease  in  total
expenses.  The  increase  in total  revenues  is  primarily  attributable  to an
increase in rental  income as a result of an increase in average  annual  rental
rates at both investment properties, a decrease in rental concessions offered at
Woods of Inverness  Apartments  and an increase in  occupancy at Ralston  Place,
which more than offset a slight  decrease  in  occupancy  at Woods of  Inverness
Apartments. Other income remained relatively consistent.

Total  expenses  decreased  primarily due to a reduction in operating  expenses,
which  was  partially  offset  by  increases  in  general  and   administrative,
depreciation and property tax expenses.  Interest  expense  remained  relatively
constant  for  the  comparable  periods.  Operating  expenses  decreased  due to
reductions in  maintenance,  insurance  and  advertising  expenses.  Maintenance
expense  decreased  primarily  due to the  completion  of exterior  building and
tennis court repairs and various projects performed to enhance the appearance of
Woods  of  Inverness  Apartments,   and  the  completion  of  exterior  building
improvements  and parking lot resurfacing at Ralston Place during the year ended
December 31, 1998. Insurance expense decreased due to a refund of prior premiums
paid at Woods of Inverness  Apartments upon cancellation of the prior policy and
reduced  premiums at both properties due to a change in insurance  carriers late
in 1998.  Advertising  expense  decreased  at the  Woods of  Inverness  due to a
decrease in referral fees paid.

The  increase  in  general  and  administrative  expenses  is  primarily  due to
increased  legal costs  related to the Nuanes matter and costs  associated  with
other  legal  matters  which  were  closed  during  1999 as  disclosed  in prior
quarters.  The  increase  in  depreciation  expense is the result of the amounts
spent on capital  improvements and replacements  during 1999 and 1998.  Property
taxes increased  resulting from an increase in the assessment  value of Woods of
Inverness Apartments.

Included in general and  administrative  expense at both  December  31, 1999 and
1998 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.

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies of the Managing General  Partner.  The effect of the change in 1999 was
to increase  net income by $33,000  ($.24 per  limited  partnership  unit).  The
cumulative  effect,  had this  change  been  applied  to prior  periods,  is not
material.  The accounting principle change will not have an effect on cash flow,
funds  available  for  distributions  or fees  payable to the  Managing  General
Partner or affiliates.

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,  1999,  the  Registrant  had  cash  and  cash  equivalents  of
approximately  $468,000 as compared to  approximately  $366,000 at December  31,
1998. Cash and cash equivalents  increased  approximately  $102,000 for the year
ended  December 31, 1999.  The increase in cash and cash  equivalents  is due to
approximately  $828,000 of cash  provided  by  operating  activities,  partially
offset by  approximately  $419,000  of cash  used in  investing  activities  and
approximately  $307,000  of cash  used in  financing  activities.  Cash  used in
investing   activities   consisted   primarily  of  capital   improvements   and
replacements and, to a lesser extent, net deposits to restricted escrow accounts
maintained by the mortgage lender. Cash used in financing  activities  consisted
primarily of  distributions  to partners  and, to a lesser  extent,  payments of
principal made on the mortgages  encumbering the  Registrant's  properties.  The
Registrant invests its working capital reserves in money market 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 $300 per unit or  $141,600.
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  $7,265,000 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.

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). No cash  distributions
were made during the year ended  December 31, 1998.  Future  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 semi-annual basis.
There  can  be  no  assurance,  however,  that  the  Partnership  will  generate
sufficient funds from operations after required capital expenditures,  to permit
distributions to its partners in 2000 or subsequent periods.

Tender Offer

Several tender offers were made by various parties,  including affiliates of the
Managing General Partner,  during the years ended December 31, 1999 and 1998. As
a result  of  these  tender  offers,  AIMCO  and its  affiliates  currently  own
66,851.01 units of limited  partnership  units in the  Partnership  representing
51.42% of the  outstanding  units.  It is possible that AIMCO or its  affiliates
will  make  one  or  more  additional  offers  to  acquire   additional  limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  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 their  affiliation
with the Managing General Partner.

Year 2000 Compliance

General Description

The Year 2000 issue is the result of computer  programs  being written using two
digits rather than four digits to define the applicable year. The Partnership is
dependent  upon the Managing  General  Partner and its affiliates for management
and  administrative  services  ("Managing  Agent").  Any of the Managing Agent's
computer programs or hardware that had date-sensitive software or embedded chips
might have  recognized  a date using "00" as the year 1900  rather than the year
2000.  This could have resulted in a system failure or  miscalculations  causing
disruptions of operations,  including, among other things, a temporary inability
to process  transactions,  send invoices,  or engage in similar normal  business
activities.

Computer Hardware, Software and Operating Equipment

In 1999,  the Managing  Agent  completed  all phases of its Year 2000 program by
completing  the  replacement  and repair of any  hardware or software  system or
operating  equipment that was not yet Year 2000 compliant.  The Managing Agent's
hardware  and software  systems and its  operating  equipment  are now Year 2000
compliant.  No  material  failure or  erroneous  results  have  occurred  in the
Managing Agent's computer  applications  related to the failure to reference the
Year 2000 to date.

Third Parties

To  date,  the  Managing  Agent  is not  aware of any  significant  supplier  or
subcontractor  (external agent) or financial institution of the Partnership that
has a Year 2000 issue that  would  have a material  impact on the  Partnership's
results of operations,  liquidity or capital  resources.  However,  the Managing
Agent  has no means of  ensuring  or  determining  the Year 2000  compliance  of
external  agents.  At this time, the Managing Agent does not believe that a Year
2000 issue of any  non-compliant  external agent will have a material  impact on
the Partnership's financial position or results of operations.

Costs

The total cost of the Managing Agent's Year 2000 project was approximately  $3.2
million and was funded from operating cash flows.

Risks Associated with the Year 2000

The Managing  Agent  completed all necessary  phases of its Year 2000 program in
1999,  and did not  experience  system or  equipment  malfunctions  related to a
failure to reference the Year 2000. The Managing  Agent or Partnership  have not
been  materially  adversely  effected by  disruptions  in the economy  generally
resulting from the Year 2000 issue.

At this  time,  the  Managing  Agent  does not  believe  that the  Partnership's
businesses,  results of  operations  or financial  condition  will be materially
adversely effected by the Year 2000 issue.

Contingency Plans Associated with the Year 2000

The  Managing  Agent has not had to implement  contingency  plans such as manual
workarounds or selecting new relationships for its banking or elevator operation
activities in order to avoid the Year 2000 issue.


<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, 1999

     Consolidated Statements of Operations - Years ended December 31, 1999 and
     1998

      Consolidated  Statements of Changes in Partners' (Deficit) Capital - Years
      ended December 31, 1999 and 1998

      Consolidated Statements of Cash Flows - Years ended December 31, 1999 and
      1998

      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,  1999,  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, 1999. 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, 1999,  and the  consolidated  results of its operations
and its cash flows for each of the two years in the period  ended  December  31,
1999, in conformity with accounting  principles generally accepted in the United
States.

As discussed in Note J to the consolidated financial statements, the Partnership
changed its method of accounting to capitalize the cost of exterior painting and
major landscaping effective January 1, 1999.

                                                           /s/ ERNST & YOUNG LLP


Greenville, South Carolina
February 21, 2000


<PAGE>





                           CENTURY PROPERTIES FUND XVI

                           CONSOLIDATED BALANCE SHEET

                         (in thousands, except unit data)

                               December 31, 1999
<TABLE>
<CAPTION>

Assets
<S>                                                         <C>          <C>

   Cash and cash equivalents                                              $    468
   Receivables and deposits                                                    324
   Restricted escrows                                                          110
   Other assets                                                                231
   Investment properties (Notes C and F):
      Land                                                    $ 1,409
      Buildings and related personal property                   14,645
                                                               -------
                                                                16,054

      Less accumulated depreciation                             (8,342)      7,712
                                                               -------      ------
                                                                           $ 8,845

Liabilities and Partners' (Deficit) Capital
Liabilities

   Accounts payable                                                       $    114
   Accrued property taxes                                                      180
   Tenant security deposit liabilities                                          42
   Other liabilities                                                           192
   Mortgage notes payable (Notes C and F)                                    7,265

Partners' (Deficit) Capital

   General partners                                           $ (3,832)
   Limited partners (130,000 units
      issued and outstanding)                                    4,884       1,052
                                                                ------       -----
                                                                            $8,845

</TABLE>

          See Accompanying Notes to Consolidated Financial Statements
<PAGE>



                           CENTURY PROPERTIES FUND XVI

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                             (in thousands, except unit data)

                                                       Years Ended December 31,
                                                          1999         1998
                                                          ----         ----
Revenues:
   Rental income                                         $2,944      $2,855
   Other income                                             117         121
                                                          -----       -----
      Total revenues                                      3,061       2,976
                                                          -----       -----

Expenses:
   Operating                                              1,150       1,319
   General and administrative                               255         186
   Depreciation                                             538         501
   Interest                                                 607         612
   Property tax                                             255         231
                                                          -----       -----

      Total expenses                                      2,805       2,849
                                                          -----       -----

Net income                                               $  256      $  127
                                                          =====       =====

Net income allocated to general partners (6.9%)          $   18      $    9

Net income allocated to limited partners (93.1%)            238         118
                                                          -----       -----

                                                         $  256      $  127
                                                          =====       =====

Net income per limited partnership unit                  $ 1.83      $ 0.91
                                                          =====       =====

Distributions per limited partnership unit               $ 1.61      $   --
                                                         =====       =====

          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, 1997            130,000     $(3,843)      $ 4,737   $    894

Net income for the year
   ended December 31, 1998              --           9           118        127
                                   -------      ------        ------    -------

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
                                   =======      ======        ======    =======

          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,
                                                                  1999        1998

<S>                                                             <C>         <C>

Cash flows from operating activities:

  Net income                                                     $ 256        $ 127
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                                    538          501
   Amortization of loan costs                                       32           30
   Change in accounts:
      Receivables and deposits                                      46          (63)
      Other assets                                                 (30)           5
      Accounts payable                                             (23)         (32)
      Accrued property taxes                                       (65)           8
      Tenant security deposit liabilities                           (9)           1
      Other liabilities                                             83           13
                                                                 -----       ------

      Net cash provided by operating activities                    828          590
                                                                ------       ------

Cash flows from investing activities:

  Property improvements and replacements                          (409)        (617)
  Net (deposits to) withdrawals from restricted escrows            (10)           9
                                                                ------       ------

       Net cash used in investing activities                      (419)        (608)
                                                                ------       ------

Cash flows from financing activities:

  Distributions to partners                                       (225)         --
  Payments on mortgage notes payable                               (82)         (75)
                                                                ------       ------

       Net cash used in financing activities                      (307)         (75)
                                                                ------       ------

Net increase (decrease) in cash and cash equivalents               102          (93)

Cash and cash equivalents at beginning of year                     366          459
                                                                ------        -----

Cash and cash equivalents at end of year                        $  468        $ 366
                                                                  ====         ====

Supplemental disclosure of cash flow information:

  Cash paid for interest                                         $ 576        $ 581
                                                                  ====         ====

Supplemental disclosure of non-cash activity:
 Property improvements and replacements included in
    accounts payable                                              $ 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, 1999,  the  Partnership
operates two residential  apartment complexes 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
offers 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 remainder 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 remainder 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.

Available Lines of Credit: 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.

Depreciation:  Depreciation is calculated by the  straight-line  method over the
estimated  lives  of  the  rental  properties  and  related  personal  property.
Effective  January 1, 1999 the  Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping (Note J).

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  and such  deposits  are  included  in
receivables  and  deposits.  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,  1999,
accumulated amortization is $126,000.  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, 1999 or 1998.

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  $47,000 and $60,000 for the years
ended  December  31,  1999 and 1998,  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. See "Note G" for disclosure.

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 principle 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           1999      Interest   Rate    Amortized     Date      Maturity
       --------           ----      --------   ----    ---------     ----      --------
                          (in thousands)                                     (in thousands)

<S>                     <C>        <C>        <C>      <C>         <C>          <C>

 Ralston Place
  (formerly The          $ 2,213    $    17    7.88%    30 years    1/2006       $ 2,016
    Landings
 Apartments)
 Woods of Inverness
  Apartments               5,052         38    7.88%    30 years    1/2006         4,602
                          ------     ------                                       ------
                         $ 7,265    $    55                                      $ 6,618
                          ======     ======                                       ======
</TABLE>

The  mortgage  notes  payable are  nonrecourse  and are secured by pledge of the
respective  apartment  properties  and by 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.

Scheduled  principal  payments of mortgage notes payable  subsequent to December
31, 1999 are as follows (in thousands):

                             2000             $    88
                             2001                  95
                             2002                 103
                             2003                 111
                             2004                 120
                          Thereafter            6,748
                                                -----
                                              $ 7,265

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:

                                                     1999          1998
                                                     ----          ----
                                             (in thousands, except unit data)

Net income as reported                              $ 256        $ 127
Add (deduct):
  Depreciation differences                            368          370
  Miscellaneous                                       (56)         155
                                                     ----         ----

Federal taxable income                              $ 568        $ 652
                                                     ====         ====

Federal taxable income per limited
  partnership unit                                  $4.07        $4.67
                                                     ====         ====

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

                                                 1999

Net assets as reported                          $1,052
Land and buildings                                926
Accumulated depreciation                       (5,368)
Syndication and distribution costs              8,258
Other                                             108
                                                -----
Net assets - Federal tax basis                 $4,976
                                                =====


<PAGE>



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 1999 and in 1998:

                                                            1999       1998
                                                            ----       ----
                                                             (in thousands)

Property management fees (included in operating
      expense)                                             $153        $149

Reimbursement for services of affiliates (included
   in investment property and general and
   administrative and operating expenses)                   101         133

During the years ended  December 31, 1999 and 1998,  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  $153,000 and $149,000 for the
years ended December 31, 1999 and 1998, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $101,000 and
$133,000 for the years ended December 31, 1999 and 1998, respectively.

Several tender offers were made by various parties,  including affiliates of the
Managing General Partner,  during the years ended December 31, 1999 and 1998. As
a result  of  these  tender  offers,  AIMCO  and its  affiliates  currently  own
66,851.01 units of limited  partnership  units in the  Partnership  representing
51.42% of the  outstanding  units.  It is possible that AIMCO or its  affiliates
will  make  one  or  more  additional  offers  to  acquire   additional  limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  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 their  affiliation
with the Managing General Partner.


<PAGE>



Note F - Investment Properties and Accumulated Depreciation

                                                    Initial Cost
                                                   To Partnership
                                                   --------------
                                                   (in thousands)
<TABLE>
<CAPTION>

                                                                             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 (formerly
  The Landings Apartments)       $ 2,213      $  504       $ 4,702        $ 1,109
Woods of Inverness                 5,052       1,292        10,305         (1,858)
                                  ------       -----        ------         ------

Total                            $ 7,265      $1,796       $15,007        $  (749)
                                  ======       =====        ======         ======
</TABLE>

                              Gross Amount At Which
                                     Carried
                              At December 31, 1999
                                 (in thousands)

<TABLE>
<CAPTION>

                                     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 (formerly
 The Landings Apartments)    $  504  $ 5,811     $ 6,315     $3,302       06/82     5-30 years
Woods of Inverness              905    8,834       9,739      5,040       07/82     5-30 years
                              -----   ------      ------     ------

Total                        $1,409  $14,645     $16,054     $8,342
                              =====   ======      ======      =====
</TABLE>

Reconciliation of Investment Properties and Accumulated Depreciation:

                                                Years Ended December 31,
                                                  1999            1998
                                                  ----            ----
                                                     (in thousands)

Balance at beginning of year                   $15,564          $14,947
    Property improvements                          490              617
                                                ------           ------

Balance at end of year                         $16,054          $15,564
                                                ======           ======

Accumulated Depreciation

Balance at beginning of year                   $ 7,804          $ 7,303
    Additions charged to expense                   538              501
                                                ------           ------

Balance at end of year                         $ 8,342          $ 7,804
                                                ======           ======

The aggregate cost of the investment  properties for Federal income tax purposes
at December 31, 1999 and 1998, is  approximately  $16,980,000  and  $16,489,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 1999 and 1998, is  approximately  $13,710,000  and  $13,542,000,
respectively.

Note G - Segment Reporting

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The Partnership has one reportable segment:  residential properties,  consisting
of two apartment  complexes,  one of which is located in Tampa,  Florida and the
other in Houston,  Texas.  The Partnership  rents apartment units to tenants for
terms that are typically twelve months or less.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those described in the summary of significant accounting policies.

Factors management used to identify the enterprise's reportable segment:

The Partnership's reportable segment consist of investment properties that offer
similar  products and services.  Although each of the  investment  properties is
managed  separately,  they have been aggregated into one segment as they provide
services with similar types of products and customers.

Segment information for the years 1999 and 1998 is shown in the tables below (in
thousands). The "Other" column includes Partnership administration related items
and income and expense not allocated to the reportable segment.

1999                                   Residential    Other       Totals
----                                   -----------    -----       ------

Rental income                            $ 2,944       $ --      $ 2,944
Other income                                 106          11         117
Interest expense                             607          --         607
Depreciation                                 538          --         538
General and administrative expense            --         255         255
Segment profit (loss)                        500        (244)        256
Total assets                               8,822          23       8,845
Capital expenditures                         490          --         490

                1998                  Residential     Other       Totals
                ----                  -----------     -----       ------

Rental income                           $ 2,855       $ --       $ 2,855
Other income                                105           16         121
Interest expense                            612           --         612
Depreciation                                501           --         501
General and administrative expense           --          186         186
Segment profit (loss)                       297         (170)        127
Total assets                              8,562          267       8,829
Capital expenditures                        617           --         617

Note H - Distributions

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). No cash  distributions
were made during the year ended December 31, 1998.

Note I - 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,  the 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  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Note B - Transfer  of  Control").  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  have 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 final  court
approval, on behalf of the Partnership and all limited partners who own units as
of November 3, 1999.  Preliminary  approval of the  settlement  was  obtained on
November 3, 1999 from the Superior Court of the State of  California,  County of
San Mateo, 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 class  plaintiffs'  counsel
to enter the settlement.  On December 14, 1999, the Managing General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to  disqualify  some of the  plaintiffs'  counsel  in the  action.  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.

Note J - Change in Accounting Principle

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies of the Managing General  Partner.  The effect of the change in 1999 was
to increase  net income by $33,000  ($.24 per  limited  partnership  unit).  The
cumulative  effect,  had this  change  been  applied  to prior  periods,  is not
material.  The accounting principle change will not have an effect on cash flow,
funds  available  for  distributions  or fees  payable to the  Managing  General
Partner or affiliates.


<PAGE>



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              42    Executive Vice President and Director
Martha L. Long               40    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 and AIMCO since October 1998, as a result of the acquisition of
Insignia  Financial  Group,  Inc. 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.

Based solely upon a review of Forms 3 and 4 and amendments  thereto furnished to
the Registrant  under Rule 16a-3(e) during the  Registrant's  most recent fiscal
year and Forms 5 and amendments thereto furnished to the Registrant with respect
to its most recent  fiscal year,  the  Registrant  is not aware of any director,
officer,  beneficial  owner of more than ten  percent  of the  units of  limited
partnership interest in the Registrant that failed to file on a timely basis, as
disclosed in the above Forms,  reports required by section 16(a) of the Exchange
Act during the most recent  fiscal year or prior fiscal years except as follows:
AIMCO Properties,  L.P. and its joint filers failed to timely file a Form 3 with
respect to its  acquisition  of Units and AIMCO and its joint  filers  failed to
timely file a Form 4 with respect to its acquisition of Units.

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, 1999.

     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)                    19,362.33           14.89%

Insignia  Properties LP, is indirectly  ultimately  owned by AIMCO. Its business
address is 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 1999 and in 1998:

                                                            1999       1998
                                                            ----       ----
                                                             (in thousands)

Property management fees                                   $153        $149

Reimbursement for services of affiliates                    101         133

During the years ended  December 31, 1999 and 1998,  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  $153,000 and $149,000 for the
years ended December 31, 1999 and 1998, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $101,000 and
$133,000 for the years ended December 31, 1999 and 1998, respectively.

Several tender offers were made by various parties,  including affiliates of the
Managing General Partner,  during the years ended December 31, 1999 and 1998. As
a result  of  these  tender  offers,  AIMCO  and its  affiliates  currently  own
66,851.01 units of limited  partnership  units in the  Partnership  representing
51.42% of the  outstanding  units.  It is possible that AIMCO or its  affiliates
will  make  one  or  more  additional  offers  to  acquire   additional  limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the units are entitled
to take  action with  respect to a variety of  matters.  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 their  affiliation
with the Managing General Partner.


<PAGE>



Item 13. Exhibits and Reports on Form 8-K

         (a)   Exhibits:

               Exhibit 18,  Independent  Accountants'  Preferability  Letter for
               Change in  Accounting  Principle  is filed as an  exhibit to this
               report.

               Exhibit  27,  Financial  Data  Schedule is filed as an exhibit to
               this report.

         (b)   Reports on Form 8-K filed  during the quarter  ended December 31,
               1999.

               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:

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:
------------------
Patrick J. Foye
Executive Vice President
and Director

/s/Martha L. Long                Date:
-----------------
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)

      18          Independent  Accountants' Preferability Letter for Change in
                  Accounting Principle.

      27          Financial Data Schedule.


<PAGE>


                                                                      Exhibit 18

February 7, 2000

Mr. Patrick J. Foye
Executive Vice President

Fox Capital Management Corporation

Managing General Partner for Century Properties Fund XVI
55 Beattie Place
P.O. Box 1089
Greenville, South Carolina 29602

Dear Mr. Foye:

Note J of Notes to the Consolidated  Financial  Statements of Century Properties
Fund XVI  included  in its Form  10-KSB for the year  ended  December  31,  1999
describes a change in the method of accounting to capitalize  exterior  painting
and major landscaping,  which would have been expensed under the old policy. You
have advised us that you believe  that the change is to a  preferable  method in
your  circumstances  because it provides a better  matching of expenses with the
related benefit of the  expenditures  and is consistent with policies  currently
being used by your industry and conforms to the policies of the Managing General
Partner.

There are no authoritative criteria for determining a preferable method based on
the particular circumstances; however, we conclude that the change in the method
of accounting  for exterior  painting and major  landscaping is to an acceptable
alternative  method which,  based on your business  judgment to make this change
for the reasons cited above, is preferable in your circumstances.

                                                               Very truly yours,
                                                           /s/ Ernst & Young LLP