SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark                             FORM 10-QSB
 One)
 |X|

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2000

 |_|

                  TRANSITION REPORT UNDER SECTION 13 OR 15 (D)
                               OF THE EXCHANGE ACT

             For the period of transition from ________ to ________
                           Commission File No. 0-1322

                           KNICKERBOCKER VILLAGE, INC.
                           ---------------------------
             (Exact name of registrant as specified in its Charter)

           NEW YORK                                       13-0924285
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer identification No.)
incorporation or organization)

    10 Monroe Street, New York, N.Y.                                    10002
----------------------------------------                              ----------
(Address of principal executive offices)                              (Zip Code)

Registrant's telephone number, including area code (212) 227-0955

Indicate by checkmark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(D) of the Securities Exchange Act of 1934 during
the preceding 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 |_|

The number of shares outstanding of each of the issuer's classes of common
stock, as of the close of the period covered by this report is 147,464, $2.15
par value.

Total number of sequentially numbered pages - 13

No exhibits filed.

<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
                                  BALANCE SHEET
                            AS OF SEPTEMBER 30, 2000
                                   (UNAUDITED)

                        Assets

Current Assets:
    Cash and cash equivalents                                        $   538,586
    Accounts receivable (less allowance for
     doubtful accounts of $308,000)                                      115,967
    Other receivables                                                     48,675
    Prepaid expenses and other current assets                            827,987
    Deferred tax asset, net                                               74,000
                                                                     -----------
             Total Current Assets                                      1,605,215
                                                                     -----------

Special Funds And Deposits:
    Funds for replacements, painting
        and decorating                                                   271,922
    Tenants' security deposits - contra                                  677,618
                                                                     -----------
             Total Special Funds and Deposits                            949,540
                                                                     -----------

Fixed Assets:
    Land                                                               3,273,281
    Buildings and Building Equipment                                  17,542,877
                                                                     -----------
                                                                      20,816,158
    Less: Accumulated depreciation                                    12,834,799
                                                                     -----------
             Net Fixed Assets                                          7,981,359
                                                                     -----------

Other Assets:
    Deferred tax asset, net                                              306,000
    Other assets                                                          89,336
                                                                     -----------
                                                                         395,336
                                                                     -----------

Total Assets                                                         $10,931,450
                                                                     ===========

In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at September 30, 2000 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.


                                       2
<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
                                  BALANCE SHEET
                            AS OF SEPTEMBER 30, 2000
                                   (UNAUDITED)

         Liabilities and Stockholders' Equity

Current Liabilities:
    Accounts payable and accrued expenses                            $ 2,374,667
    Unearned rental income                                                36,879
    Dividends payable                                                     19,023
    Current portion of long-term debt                                    103,186
                                                                     -----------
             Total Current Liabilities                                 2,533,755

Tenants' Security Deposits - Contra                                      677,618
Long-Term Debt, less current portion                                   5,891,221
                                                                     -----------

             Total Liabilities                                         9,102,594
                                                                     -----------

Stockholders' Equity:
Limited dividend capital stock,
par value $2.15 per share,
Authorized - 348,837 shares;
issued and outstanding - 147,464                                         317,048
    Retained earnings                                                  1,511,808
                                                                     -----------

             Total Stockholders' Equity                                1,828,856
                                                                     -----------

Total Liabilities and Stockholders' Equity                           $10,931,450
                                                                     ===========

In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at September 30, 2000 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.


                                       3
<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
      STATEMENTS OF NET INCOME, COMPREHENSIVE INCOME AND RETAINED EARNINGS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (UNAUDITED)

                                                            2000          1999
                                                        ----------    ----------
Revenues:
    Rentals                                             $8,151,360    $7,887,860
    Other income                                            37,010        21,046
                                                        ----------    ----------
                                                         8,188,370     7,908,906
                                                        ----------    ----------
Expenses:
    Wages and related costs                              1,938,647     1,829,872
    Real estate taxes                                      545,960       600,264
    Utilities                                            1,845,012     1,368,529
    Maintenance, repairs and decorating                  1,080,372       882,301
    Depreciation and amortization                          349,584       406,561
    Mortgage and other interest                            399,971       408,030
    Management and administrative fee                      723,725       724,926
    Provision for doubtful accounts                          2,270        18,730
    Miscellaneous operating and general expenses         1,233,500     1,210,631
                                                        ----------    ----------

                                                         8,119,041     7,449,844
                                                        ----------    ----------

Income before income taxes                                  69,329       459,062

Provision for income taxes                                  47,000       224,000
                                                        ----------    ----------

Net income and comprehensive income                         22,329       235,062

Retained earnings at beginning of the period             1,489,479     1,278,583
                                                        ----------    ----------

Retained earnings at end of the period                  $1,511,808    $1,513,645
                                                        ==========    ==========

Earnings per share                                      $     0.15    $     1.59
                                                        ==========    ==========

In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at September 30, 2000 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.


                                       4
<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
                            STATEMENTS OF CASH FLOWS
               FOR THE NINE MONTHS ENDED SEPTEMBER, 2000 AND 1999
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                   2000          1999
                                                                ---------    -----------
<S>                                                             <C>          <C>
Cash flows from operating activities:
   Net income                                                   $  22,329    $   235,062
   Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization                                 349,584        406,561
    Provision for bad debts                                         2,270         18,730
    Deferred income taxes                                         (20,000)       (48,000)
    Changes in assets (increase) decrease:
      Accounts receivable                                             937          2,267
      Other receivables                                           136,501        135,487
      Prepaid expenses                                            480,764        738,008
      Other assets                                                  1,135              0
    Changes in liabilities increase (decrease):
      Accounts payable and accrued expenses                      (264,782)      (329,071)
      Unearned rental income                                       12,712         48,434
        Other liabilities                                               0       (170,707)
                                                                ---------    -----------
      Net cash provided by operating activities                   721,450      1,036,771
                                                                ---------    -----------

Cash Flows From Investing Activities:
    Interest earned on reserve fund investments                    (3,786)        (5,384)
    Capital expenditures                                         (712,302)      (410,490)
    Contributions of cash from operations to replacement fund    (686,610)      (748,320)
    Reimbursement of expenditures paid by housing company
      from replacement fund                                       778,354        517,708
                                                                ---------    -----------
    Net cash used in investing activities                        (624,344)      (646,486)
                                                                ---------    -----------

Cash flows from financing activities:
    Payments on long-term debt                                    (71,852)       (66,017)
    Payments on capital lease obligation                           (4,419)        (6,304)
                                                                ---------    -----------
    Net cash used in financing activities                         (76,271)       (72,321)
                                                                ---------    -----------

Net increase in cash                                               20,835        317,964
Cash at beginning of period                                       517,751         92,956
                                                                ---------    -----------
Cash at end of period                                           $ 538,586    $   410,920
                                                                =========    ===========

Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
    Interest                                                    $ 400,000    $   390,000
                                                                =========    ===========

    Income taxes                                                $ 192,000    $   186,000
                                                                =========    ===========
</TABLE>

In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at September 30, 2000 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.


                                       5
<PAGE>

                           KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2000 AND 1999

NOTE 1 - CORPORATE ORGANIZATION

      Knickerbocker Village, Inc. (the "Company"), is a public, limited dividend
      housing company formed pursuant to the Housing Laws of the State of New
      York, on September 5, 1933. The Company is regulated by the Division of
      Housing and Community Renewal ("DHCR"), a New York State regulatory
      agency. The Company is located in lower Manhattan and operates
      approximately 1,600 rental units ranging in size from studios through
      three bedroom apartments. The Company requires one (1) month's rent as a
      security deposit on all apartments.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      REVENUE RECOGNITION

      The Company recognizes revenue in the accounting period that corresponds
      to the month for which rental income is billed. Rents received but not
      recognized as revenue as of September 30, are recorded as unearned rental
      income.

      CASH AND CASH EQUIVALENTS

      For the purposes of the statements of cash flows, the Company considers
      all highly liquid debt instruments purchases with a maturity of three
      months or less to be cash equivalents.

      ALLOWANCE FOR DOUBTFUL ACCOUNTS

      Bad debts are provided for on the allowance method based on historical
      experience and management's evaluation of outstanding rents receivable.

      FIXED ASSETS

      Fixed assets consist primarily of building improvements and equipment and
      are recorded at cost. Depreciation is provided for financial statement
      purposes on the straight-line method, over the estimated useful lives of
      the fixed asset, which range from 5 to 30 years. For federal income tax
      purposes, depreciation is provided for on the straight-line and
      accelerated methods.

      Expenditures for maintenance and repairs are charged to operations as
      incurred. Upon sale or retirement of property, the cost and accumulated
      depreciation are removed from the respective accounts and any gain or loss
      is reflected in operations for the year. Depreciation expense was
      approximately $339,000 and $396,000 for the nine months ended September
      30, 2000 and 1999, respectively.

      INCOME TAXES

      Deferred tax assets and liabilities reflect the tax consequences on future
      years of differences between the tax bases of assets and liabilities, and
      their financial reporting amounts, using enacted tax rates in effect for
      the year in which the differences are expected to reverse.


                                       6
<PAGE>

                           KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2000 AND 1999

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES---(continued)

      CONCENTRATION OF CREDIT RISK

      The Company places its cash and investments for its Replacement Fund (See
      Note 3) with a high quality credit institution. At times such investments
      may be in excess of FDIC insured limits.

      ESTIMATES

      The preparation of financial statements in conformity with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of the
      financial statements and the reported amounts of revenues and expenses
      during the reporting period. Actual results could differ from those
      estimates.

      RECLASSIFICATIONS

      Certain prior year balances have been reclassified to conform with current
      year classifications.

      FAIR VALUE OF FINANCIAL INSTRUMENTS

      The following methods and assumptions were used to estimate the fair value
      of each class of financial instruments:

      1.    Cash and cash equivalents - The carrying amounts approximate fair
            value because of the short maturity of these instruments.

      2.    Receivables - The carrying amount approximates fair value because of
            the short maturity of these instruments.

      3.    Debt - The carrying amounts approximate fair value based on
            borrowing rates currently available to the Company for bank loans
            with similar terms.

      IMPAIRMENT OF LONG-LIVED ASSETS

      In accordance with SFAS No. 121, "Accounting For the Impairment of
      Long-Lived Assets and For Long-Lived Assets To Be Disposed Of", the
      Company reviews it long-lived assets, including property and equipment,
      and intangible assets for impairment whenever events or changes in
      circumstances indicate that the carrying amount of the assets may not be
      fully recoverable. To determine recoverability of its long-lived assets,
      the Company evaluates the probability that future undiscounted net cash
      flows will be less than the carrying amount of the assets. Impairment
      costs, if any, are measured by comparing the carrying amount of the
      related assets to their fair value.

      COMPREHENSIVE INCOME

      The company adopted SFAS No. 130, "Reporting Comprehensive Income" in 1998
      for the years ended December 31, 1998 and 1997. There are no items of
      other comprehensive income as defined in the pronouncement.


                                       7
<PAGE>

                           KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2000 AND 1999

NOTE 3 - REPLACEMENT, PAINTING AND DECORATING FUNDS

      Maintenance of these funds is requested by the Commissioner of Housing and
      Community Renewal of the State of New York. These funds were comprised of
      the following at September 30, 2000:

Cash                                                                   $ 271,922
                                                                       =========

NOTE 4 - LONG-TERM DEBT

      On January 31, 1997, the Company entered into an extension and
      modification agreement with The Greater New York Savings Bank, now known
      as Astoria Federal Savings Bank (the "Bank") for the principal amount of
      $6,300,000. The mortgage is payable in monthly installments of $50,729,
      inclusive of interest at the rate of 8 1/2% per annum, and is due on
      February 1, 2007. On the maturity date, the Company may pay the remaining
      principal balance, or extend the term of the mortgage for an additional
      five (5) years. The mortgage is collateralized by land, buildings and
      boilers. The aggregate maturities for long-term debt for the five years
      after September 30, 2000 are approximately $103,000, (2001); $112,000,
      (2002); $122,000, (2003); $133,000 (2004); and $145,000,(2005);
      $5,379,000, (thereafter).

NOTE 5 - DIVIDENDS PAYABLE AND CAPITAL STOCK

      The holders of the Company's capital stock cannot at any time receive, in
      repayment of their investment, any sums in excess of the par value of the
      stock together with cumulative dividends at the rate of 6% of par value
      per annum (without interest). Any surplus in excess of such amounts upon
      dissolution reverts to the public authorities.

      Cumulative dividends unpaid to September 30, 2000 amounted to $608,735 or
      approximately $4.13 per share and unpaid to September 30, 1999 amounted to
      $589,712 or approximately $4.00 per share. Dividends amounting to $19,023
      were declared during 1979, but were not paid as of September 30, 2000.
      Such dividends were approved by the DHCR. No dividends were declared or
      paid in 2000 or 1999.

NOTE 6 - INCOME TAXES

      The provision for income taxes for the nine months ended September 30,
      2000 and 1999 consist of the following:

                                                      2000               1999
                                                    --------          ---------
Current Taxes
       Federal                                      $ 46,000          $ 212,000
       New York City                                  21,000             60,000
                                                    --------          ---------
       Total                                          67,000            272,000
                                                    --------          ---------

Deferred Taxes
       Federal                                       (16,000)           (39,000)
       New York City                                  (4,000)            (9,000)
                                                    --------          ---------
       Total                                         (20,000)           (48,000)
                                                    --------          ---------

Provision For Income Taxes                          $ 47,000          $ 224,000
                                                    ========          =========


                                       8
<PAGE>

                           KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2000 AND 1999

NOTE 6 - INCOME TAXES - (continued)

      The provision for income taxes differs from amounts computed at statutory
      rates as follows:

                                                            2000          1999
                                                          -------       --------
Federal income taxes at statutory rate                    $24,000       $156,000

New York City corporation tax -
net of federal benefit                                     21,000         39,000
Other, net                                                  2,000         29,000
                                                          -------       --------
Total                                                     $47,000       $224,000
                                                          =======       ========

      Deferred income taxes reflect the net tax effects of temporary differences
      between the carrying amounts of assets and liabilities for financial
      reporting purposes and the amounts used for income tax purposes. At
      September 30, 2000, the net deferred tax assets of $380,000, were included
      in the Company's balance sheet as follows.

Deferred tax asset, net - current                                       $ 74,000
Deferred tax asset, net - long term                                      306,000
                                                                        --------
Deferred tax asset, net                                                 $380,000
                                                                        ========

      Significant components of the Company's net deferred tax asset at
      September 30, 2000 are as follows:

Tax effects of:
  Accounts receivable                                                 $ 132,000
  Unearned rental income                                                 17,000
  Buildings and building equipment                                      612,000
                                                                      ---------
Gross deferred tax asset                                                761,000
  Valuation allowance                                                  (381,000)
                                                                      ---------
Net deferred tax asset                                                $ 380,000
                                                                      =========

      Management believes that a valuation allowance is appropriate given the
      current estimates of future taxable income, as well as consideration of
      available tax planning strategies. If the Company is unable to generate
      sufficient taxable income in the future through operating results,
      increases in the valuation allowance will be required through a charge to
      expense. However, if the Company achieves profitability to utilize a
      greater portion of the deferred tax asset, the valuation allowance will be
      reduced through a credit to income. The net change in the valuation
      allowance for the nine months ended September 30, 2000 was an increase of
      $21,000.

NOTE 7 - MANAGEMENT FEE

      The management fee, set by DHCR, was paid to Cherry Green Property Corp.,
      (Cherry Green), the owner of approximately 95% of the outstanding shares
      of the Company. Such fee is reviewed and may be adjusted annually,
      effective July 1 of each year, by the DHCR.


                                       9
<PAGE>

                           KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2000 AND 1999

      On September 2, 1999, the DHCR approved an increase in the management fee
      of approximately 1.4% effective July 1, 1999.

NOTE 8 - PENSION PLAN

      Certain employees of the Company are covered under a union sponsored,
      multi-employer defined benefit pension plan. This plan is not administered
      by the Company and contributions are determined by the union. The
      Company's contributions for this plan were approximately $71,000 and
      $59,000 for the nine months ended September 30, 2000 and 1999
      respectively.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

      The Company in accordance with the Modification Agreement with its Bank
      dated January 30, 1997 (Note 4), has made a commitment to complete
      asbestos abatement work and lead paint remediation work of approximately
      $425,000. As of September 30, 2000, the commitment has been fulfilled. The
      costs of any additional asbestos abatement or lead paint remediation, if
      necessary, cannot be determined at this time.

NOTE 10- RENTAL INCOME

      During December 1998, the Company received a two step rent increase, which
      was approved by the DHCR. The first increase of approximately 3.3% was
      effective February 1, 1999. The second increase of approximately 3.2% was
      effective April 1, 2000.

NOTE 11- PREPAID EXPENSES AND OTHER CURRENT ASSETS

      Prepaid expenses and other current assets in the accompanying balance
      sheet at September 30, 2000 are as follows:

Escrow Account                                                          $248,305
Employee Loans                                                             1,000
Prepaid:
  Insurance                                                              148,817
  Real Estate Taxes                                                      197,063
  Supplies                                                                93,397
  Federal Corporation Income Taxes                                       104,000
  NYC Corporation Taxes                                                   21,000
  Expenses - Other                                                        14,405
                                                                        --------
       TOTAL                                                            $827,987
                                                                        ========


                                       10
<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC
                     MANAGEMENTS DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

Liquidity - As of September 30, 2000, the Registrant has a working capital
deficit of approximately $929,000. During December 1998, the Company received a
two step rent increase, which was approved by the DHCR. The first increase of
approximately 3.3% was effective February 1, 1999. The second increase of
approximately 3.2% was effective April 1, 2000.

Capital resources - The Registrant has set aside funds for capital improvements
and repairs amounting to approximately $272,000 as of September 30, 2000.

Results of operations - During the nine months ended September 30, 2000, as
compared to the nine months ended September 30, 1999, total revenues increased
by approximately $279,000 or approximately 3.5%, due primarily to the two step
rent increase which was effective February 1, 1999 and April 1, 2000.

Operating expenses increased by approximately $669,000 or approximately 9.0%
during the nine months ended September 30, 2000, as compared to the nine months
ended September 30, 1999. This is primarily attributable to increases in wages
and related costs, utilities, maintenance, repairs and decorating expense and
miscellaneous operating and general expenses offset by reductions in real estate
taxes and depreciation and amortization. Wages and related costs increased by
approximately $108,000 or approximately 5.9%, primarily due to increases in
union wage rates, union pension rates and related payroll taxes. Utilities
increased by approximately $476,000 or approximately 34.8%, primarily due to
significant increases in the prices of fuel oil and electricity in 2000 as
compared to 1999. Maintenance, repairs and decorating expense increased by
approximately $198,000 or approximately 22.4% primarily due to increases in
electrical repairs, structural expenses, painting and decorating, supplies and
grounds expenses, offset by decreases in heating, plumbing and elevator repairs.
Miscellaneous operating and general expenses increased by approximately $23,000
or approximately 1.9%, primarily due to increases in legal and consulting fees.
The increase in legal fees was attributable to a corresponding reduction in the
assessed valuation of the properties for the tax year ended June 30, 2000. Real
estate taxes decreased by approximately $54,000 or approximately 9.0% due to a
decrease in the property's assessed value for the tax year ended June 30, 2000.
Depreciation and amortization decreased by approximately $57,000 or
approximately 14.0% due to the fact that the majority of the fixed assets are in
the latter part of their useful lives. The provision for taxes decreased by
approximately $177,000 or approximately 79.0%, primarily due to a decrease in
income before taxes (see Note 6 to the financial statements pages 8 and 9.)


                                       11
<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC
                     MANAGEMENTS DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

      PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      (a)   Exhibits.

            None.

      (b)   Reports on Form 8-K.

            None.


                                       12
<PAGE>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC
                     MANAGEMENTS DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

            SIGNATURES

      Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                                        KNICKERBOCKER VILLAGE, INC.:


Dated: November 14, 2000                By: S/ROBERT GERSHON
                                         ---------------------------------------
                                        ROBERT GERSHON,
                                        Vice President and Treasurer


Dated: November 14, 2000                By: S/MELVIN GERSHON
                                            ------------------------------------
                                        MELVIN GERSHON,
                                        Secretary