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 THREE MONTH PERIOD ENDED MARCH 31, 2001
---------
               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
incorporation or organization)                          identification No.)


  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 - 14

No exhibits filed.


<PAGE>


<TABLE>
<CAPTION>




                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
                                  BALANCE SHEET
                              AS OF MARCH 31, 2001
                                   (UNAUDITED)


                        ASSETS

Current Assets:
<S>                                                                  <C>
    Cash and cash equivalents                                        $    17,231
    Accounts receivable (less allowance for
     doubtful accounts of $308,000)                                       99,194
    Other receivables                                                    590,277
    Prepaid expenses and other current assets                          1,012,889
    Deferred tax asset, net                                               79,000
                                                                     -----------
             Total Current Assets                                      1,798,591
                                                                     -----------

Special Funds And Deposits:
    Funds for replacements, painting
        and decorating                                                   218,718
    Tenants' security deposits - contra                                  678,690
                                                                     -----------
             Total Special Funds and Deposits                            897,408
                                                                     -----------

Fixed Assets:
    Land                                                               3,273,281
    Buildings and Building Equipment                                  17,883,061
                                                                     -----------
                                                                      21,156,342
    Less: Accumulated depreciation                                    13,077,029
                                                                     -----------
             Net Fixed Assets                                          8,079,313
                                                                     -----------

Other Assets:
    Deferred tax asset, net                                              313,000
    Other assets                                                          82,366
                                                                     -----------
                                                                         395,366

Total Assets                                                         $11,170,678
                                                                     ===========
</TABLE>




In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at March 31, 2001 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.


                                      -2-




<PAGE>

<TABLE>
<CAPTION>

                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
                                  BALANCE SHEET
                              AS OF MARCH 31, 2001
                                   (UNAUDITED)


         LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
<S>                                                                  <C>
    Accounts payable and accrued expenses                            $ 2,509,296
    Unearned rental income                                                65,830
    Income taxes payable                                                  29,143
    Dividends payable                                                     19,023
    Current portion of long-term debt                                    107,650
                                                                     -----------
             Total Current Liabilities                                 2,730,942

Tenants' Security Deposits - Contra                                      678,690
Long-Term Debt, less current portion                                   5,836,256
                                                                     -----------

             Total Liabilities                                         9,245,888
                                                                     -----------


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                                                  1,607,742
                                                                     -----------

             Total Stockholders' Equity                                1,924,790
                                                                     -----------

Total Liabilities and Stockholders' Equity                           $11,170,678
                                                                     ===========


</TABLE>



In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at March 31, 2001 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.



                                      -3-


<PAGE>
<TABLE>
<CAPTION>


                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
      STATEMENTS OF NET INCOME, COMPREHENSIVE INCOME AND RETAINED EARNINGS
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                   (UNAUDITED)

                                                          2001          2000
                                                      -----------   -----------
Revenues:
<S>                                                   <C>           <C>
    Rentals                                           $ 2,754,133   $ 2,655,797
    Other income                                          477,548         8,688
                                                      -----------   -----------
                                                        3,231,681     2,664,485
                                                      -----------   -----------
Expenses:
    Wages and related costs                               678,893       645,061
    Real estate taxes                                     196,888       174,448
    Utilities                                             785,423       595,016
    Maintenance, repairs and decorating                   304,178       389,022
    Depreciation and amortization                         124,592       111,808
    Mortgage and other interest                           136,811       134,632
    Management and administrative fee                     250,601       241,225
    Provision for doubtful accounts                         1,002           684
    Miscellaneous operating and general expenses          555,910       411,822
                                                      -----------   -----------

                                                        3,034,298     2,703,718
                                                      -----------   -----------

Income (loss) before income taxes                         197,383       (39,233)

Provision (benefit) for income taxes                       86,000        (3,000)
                                                      -----------   -----------

Net income (loss) and comprehensive income (loss)         111,383       (36,233)

Retained earnings at beginning of the period            1,496,359     1,489,485
                                                      -----------   -----------

Retained earnings at end of the period                $ 1,607,742   $ 1,453,252
                                                      ===========   ===========

Earnings per share                                    $      0.76   $     (0.25)
                                                      ===========   ===========
</TABLE>



In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at March 31, 2001 and for the related periods
then ended include all adjustments necessary in order to make the financial
statements not misleading.


                                      -4-




<PAGE>

<TABLE>
<CAPTION>


                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC.
                            STATEMENTS OF CASH FLOWS
                 FOR THE THREE MONTHS ENDED MARCH 2001 AND 2000
                                   (UNAUDITED)


                                                                            2001         2000
                                                                         ---------    ---------
Cash flows from operating activities:
<S>                                                                      <C>          <C>
   Net income (loss)                                                     $ 111,383    $ (36,233)
   Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization                                          124,592      111,807
    Provision for bad debts                                                  1,002          684
    Deferred income taxes                                                   (8,000)      (8,000)
    Changes in assets (increase) decrease:
      Accounts receivable                                                   33,223       20,701
      Other receivables                                                   (559,933)     (14,538)
      Prepaid expenses                                                     260,582      350,213
      Other assets                                                               0        1,141
    Changes in liabilities increase (decrease):
      Accounts payable and accrued expenses                               (206,262)       2,913
      Unearned rental income                                                11,699       17,471
                                                                                      ---------
      Net cash provided by (used in) operating activities                 (231,714)     446,159
                                                                         ---------    ---------

Cash Flows From Investing Activities:
    Interest earned on reserve fund investments                             (1,216)      (1,045)
    Capital expenditures                                                   (33,823)    (199,232)
    Contributions of cash from operations to replacement fund              (76,290)    (228,870)
    Reimbursement of expenditures paid by housing company
      from replacement fund                                                295,040      237,027
                                                                         ---------    ---------
    Net cash provided by (used in) investing activities                    183,711     (192,120)
                                                                         ---------    ---------

Cash flows from financing activities:
    Payments on long-term debt                                             (25,518)     (23,446)
    Payments on capital lease obligation                                         0       (2,101)
                                                                         ---------    ---------
    Net cash used in financing activities                                  (25,518)     (25,547)
                                                                         ---------    ---------

Net (decrease) increase in cash                                            (73,521)     228,492
Cash at beginning of period                                                 90,752      517,751
                                                                         ---------    ---------
Cash at end of period                                                    $  17,231    $ 746,243
                                                                         =========    =========

Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
    Interest                                                             $ 137,000    $ 135,000
                                                                         =========    =========

    Income taxes                                                         $       0    $   6,000
                                                                         =========    =========


</TABLE>

In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at March 31, 2001 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
                             MARCH 31, 2001 AND 2000

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 March 31, 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 $121,000 and $108,000 for the three months
          ended March 31, 2001 and 2000, 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
                             MARCH 31, 2001 AND 2000



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
                             MARCH 31, 2001 AND 2000


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 March 31, 2001:

          Cash                                          $ 218,718
                                                        =========

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 March 31, 2001 are approximately
          $108,000, (2002); $107,000, (2003); $138,000, (2004); $138,000 (2005);
          and $151,000,(2006); $5,302,000, (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 March 31, 2001 amounted to $627,758 or
          approximately $4.26 per share and unpaid to March 31, 2000 amounted to
          $608,735 or approximately $4.13 per share. Dividends amounting to
          $19,023 were declared during 1979, but were not paid as of March 31,
          2001. Such dividends were approved by the DHCR. No dividends were
          declared or paid in 2001 or 2000.

NOTE 6 -  INCOME TAXES

          The provision for income taxes for the three months ended March
          31,2001 and 2000 consist of the following:

                                                       2001             2000
                                                    -----------    -------------
          CURRENT TAXES
                 Federal                            $    73,000    $          0
                 New York City                           21,000           5,000
                                                    -----------    -------------
                         Total                           94,000           5,000
                                                    -----------    -------------

          DEFERRED TAXES
                 Federal                                 (4,000)         (6,000)
                 New York City                           (4,000)         (2,000)
                                                    -----------    -------------
                 Total                                   (8,000)         (8,000)
                                                    -----------    -------------
          Provision (Benefit) For Income Taxes      $    86,000    $     (3,000)
                                                    ===========    =============



                                      -8-
<PAGE>


                          KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                             MARCH 31, 2001 AND 2000


NOTE 6 -  INCOME TAXES - (CONTINUED)

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

                                                        2001             2000
                                                    -----------     ------------
          Federal income taxes at statutory rate    $    67,000     $   (12,000)

          New York City corporation tax -
          net of federal benefit                         11,000           3,000
          Other, net                                      8,000           6,000
                                                    -----------     ------------
          Total                                     $    86,000     $    (3,000)
                                                    ===========     ============

          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 March 31, 2001, the net deferred tax assets of $392,000,
          were included in the Company's balance sheet as follows.

          Deferred tax asset, net - current                    $     79,000
          Deferred tax asset, net - long term                       313,000
                                                               ------------
          Deferred tax asset, net                              $    392,000
                                                               ============


          Significant components of the Company's net deferred tax asset at
          March 31, 2001 are as follows:

          Tax effects of:
            Accounts receivable                                      $  132,000
            Unearned rental income                                       28,000
            Buildings and building equipment                            625,000
                                                                     ----------
          Gross deferred tax asset                                      785,000
            Valuation allowance                                        (393,000)
                                                                     ----------
          Net deferred tax asset                                     $  392,000
                                                                     ==========

          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 each of three months
          ended March 31, 2001 and March 31, 2000 was an increase of $8,000,
          respectively.

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.

          On December 5, 2000, the DHCR approved an increase in the management
          fee of approximately 3.3% effective July 1, 2000.



                                      -9-
<PAGE>


                          KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                             MARCH 31, 2001 AND 2000


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
          $26,000 and $23,000 for the three months ended March 31, 2001 and
          2000, 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 March 31, 2001, 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.

          During March 2001, the Company received as additional two step rent
          increase, which was approved by the DHCR. The first increase of
          approximately 8.8% becomes effective May 1, 2001. The second increase
          of approximately 8.1% will become effective May 1, 2002.

NOTE 11-   STOCKHOLDERS' EQUITY

          On September 20, 2000, the Board of Directors of the Company approved,
          among other things, the following actions, which are subject to
          shareholder approval (which is assured since Cherry Green Property
          Corporation owns over 95% of the outstanding stock in the
          Corporation):

          A proposal (the "Reverse-Split Proposal" or the "Reverse Split")
          authorizing, an amendment to the Company's Restated Certificate of
          Incorporation to effect a reverse stock split of the Company's
          outstanding shares of common stock, par value $2.15 (the "Common
          Stock" or the "Shares"), on the basis of one (1) new share of Common
          Stock ("New Common Stock") for each four thousand (4,000) shares of
          outstanding Common Stock ("Old Common Stock"). After the Reverse
          Split, all minority Shareholders will own less than one (1) Share and
          shall receive $6.28 per of Old Common Stock owned prior to the Reverse
          Split. Minority shareholders will receive $6.28 for their fractional
          share of New Common Stock based upon a repurchase price calculated at
          $2.15 per each Share of Old Common Stock plus $4.13 per share of
          cumulative unpaid dividends. There are approximately 6,730 shares of
          Old Common Stock outstanding that are not owned by Cherry Green.
          Approval of the Reverse-Split Proposal by shareholders requires the
          affirmative vote of the holders of a majority of the outstanding
          shares of the Common Stock. Since Cherry Green owns over ninety five
          percent (95%) of the outstanding shares of the Company, approval of
          this proposal is assured. The Company has filed a Preliminary Proxy
          Statement and anticipates submitting a Reverse Stock Split Proposal to
          its shareholders in the first half of the year ended December 31,
          2001.




                                      -10-
<PAGE>


                          KNICKERBOCKER VILLAGE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                             MARCH 31, 2001 AND 2000




NOTE 12-  PREPAID EXPENSES AND OTHER CURRENT ASSETS

          Prepaid expenses and other current assets in the accompanying balance
          sheet at March 31, 2001 are as follows:

          Escrow Account                                          $   230,590
          Employee Loans                                                1,000
          Prepaid:
            Insurance                                                 491,317
            Real Estate Taxes                                         196,888
            Supplies                                                   91,212
            Expenses - Other                                            1,882
                                                                   ----------
                 TOTAL                                             $1,012,889
                                                                   ==========


                                      -11-
<PAGE>


                                   FORM 10-QSB
                           KNICKERBOCKER VILLAGE, INC
                     MANAGEMENTS DISCUSSION AND ANALYSIS OR
                                PLAN OF OPERATION
                                 MARCH 31, 2001
                                   (UNAUDITED)


Liquidity - As of March 31, 2001, the Registrant has a working capital deficit
of approximately $932,000. 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. The Company received an
additional two step rent increase in March 2001, which was approved by the DHCR.
The first increase of approximately 8.8% becomes effective May 1, 2001. The
second increase of approximately 8.1% will become effective May 1, 2002.

Capital resources - The Registrant has set aside funds for capital improvements
and repairs amounting to approximately $219,000 as of March 31, 2001.

Results of operations - During the three months ended March 31, 2001, as
compared to the three months ended March 31, 2000, rental income increased by
approximately $98,000 or approximately 3.7%, due primarily to the two step rent
increase which was effective February 1, 1999 and April 1, 2000. Other income
increased by approximately $469,000, during the three months ended March 31,
2001 as compared to the three months ended March 31, 2000, primarily to due to
real estate tax refunds receivable from the City of New York. These refunds
resulted from a reduction in the assessed valuation of the Company's properties
for the fiscal years ended June 30, 1996 through June 30, 2001.

Operating expenses increased by approximately $331,000 or approximately 12.2%
during the three months ended March 31, 2001, as compared to the three months
ended March 31, 2000. This is primarily attributable to increases in wages and
related costs, real estate taxes, utilities, management fee and miscellaneous
operating and general expenses fee offset by decreases in maintenance, repairs
and decorating. Wages and related costs increased by approximately $34,000 or
approximately 5.2%, primarily due to increases in union wage rates, union
pension rates and related payroll taxes. Real estate taxes increased by
approximately $22,000 or approximately 12.9 %, primarily to an increase in the
property's assessed value for the tax year ended June 30, 2001.Utilities
increased by approximately $190,000 or approximately 32.0%, primarily due to
significant increases in the prices of fuel oil and electricity in 2001 as
compared to 2000. Management fee increased by approximately $9,000 or
approximately 3.8% primarily due to an increase in the management fee for the
year ended June 30,2001. Miscellaneous operating and general expenses increased
by approximately $144,000 or approximately 34.9%, primarily due to increases in
legal and insurance expenses. The increase in legal fees of approximately
$119,000 was attributable to fees incurred in connection with obtaining a
reduction in real estate taxes for the fiscal years ended June 30, 1996 through
June 30, 2001. Maintenance, repairs and decorating decreased by approximately
$85,000 or approximately 21.8% primarily due to decreases in structural,
painting, and supplies expense. The provision for taxes increased by
approximately $89,000 primarily due to an increase in income before taxes (see
Note 6 to the financial statements pages 8 and 9.)




                                      -12-
<PAGE>





               PART II.   OTHER INFORMATION


     ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
               --------------------------------


               (a)   Exhibits.

                       None.

               (b)   Reports on Form 8-K.

                       None.





                                      -13-
<PAGE>





                                   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: May 14, 2001                 BY: /S/ROBERT GERSHON
                                     -------------------
                                        ROBERT GERSHON,
                                        Vice President and Treasurer



Dated: May 14, 2001                 By: /S/MELVIN GERSHON
                                        -----------------
                                        MELVIN GERSHON,
                                        Secretary


                                      -14-
<PAGE>