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, 2001

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

             For the transition period from _________to _________

                         Commission file number 0-10435

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

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

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

                   Issuer's telephone number (864) 239-1000

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

                                      None

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

                            Limited Partnership Units
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days.
Yes X  No___

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

State issuer's revenues for its most recent fiscal year.  $3,326,000

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, 2001. No market exists for the limited partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None

<PAGE>

                                     PART I

Item 1.  Description of Business

Century  Properties  Fund  XVI  (the  "Partnership"  or  the  "Registrant")  was
organized in December 1980 as a California limited partnership under the Uniform
Limited  Partnership  Act of  the  California  Corporations  Code.  Fox  Capital
Management  Corporation (the "Managing General Partner" or "FCMC"), a California
corporation,  and Fox Realty Investors ("FRI or "Non-Managing General Partner"),
a California  general  partnership,  are the general partners of the Registrant.
NPI Equity  Investments II Inc., a Florida  corporation  ("NPI Equity"),  is the
managing  partner of FRI. Both FCMC and NPI Equity are subsidiaries of Apartment
Investment and Management Company ("AIMCO").  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.

Item 2.  Description of Properties:

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

                               Date of
Property                       Purchase      Type of Ownership           Use

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

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

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

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

Schedule of Properties:

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

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

<S>                          <C>         <C>           <C>                    <C>
Ralston Place                $ 6,744     $ 3,830       5-30 yrs     S/L       $ 1,462
Woods of Inverness            10,335       5,824       5-30 yrs     S/L         2,240
 Apartments                  $17,079     $ 9,654                              $ 3,702
</TABLE>

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

Schedule of Property Indebtedness:

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

                              Principal                                      Principal
                              Balance At                                      Balance
                             December 31,  Interest    Period    Maturity      Due At
         Property                2001        Rate    Amortized     Date       Maturity
                           (in thousands)                                 (in thousands)

<S>                          <C>             <C>      <C>         <C>        <C>
Ralston Place                $ 2,157         7.88%    30 years    1/2006     $ 2,016
Woods of Inverness
 Apartments                    4,925         7.88%    30 years    1/2006       4,602
                             $ 7,082                                         $ 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 B" for information with respect to the
Registrant's  ability to prepay these loans and other specific details as to the
terms of the loans.

Rental Rates and Occupancy:

Average annual rental rate and occupancy for 2001 and 2000 for each property:

                                        Average Annual           Average Annual
                                         Rental Rates               Occupancy
                                          (per unit)
 Property                            2001         2000         2001        2000

 Ralston Place                     $ 6,164       $ 5,912        96%         95%
 Woods of Inverness Apartments       7,738         7,464        95%         94%

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

Real Estate Taxes and Rates:

Real estate taxes and rates in 2001 for each property were:

                                           2001            2001
                                         Billing           Rate
                                      (in thousands)

Ralston Place                              $ 92            2.41%
Woods of Inverness Apartments               187            2.85%

Capital Improvements:

Ralston Place Apartments:  During the year ended December 31, 2001, the property
has spent approximately $99,000 in capital expenditures  consisting primarily of
appliance,   air   conditioning   and  flooring   replacements   and  structural
improvements.  These  improvements  were funded from  replacement  reserves  and
operations.  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.

Woods of Inverness  Apartments:  During the year ended  December  31, 2001,  the
property has spent  approximately  $231,000 in capital  expenditures  consisting
primarily of appliance and floor covering replacements, window treatments, major
landscaping,   parking  lot  resurfacing  and  structural  improvements.   These
improvements were funded primarily from replacement reserves and operations. 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  approximately  $82,000.  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.

Item 3.  Legal Proceedings

In March 1998, several putative  unitholders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the  Partnership,  its Managing  General Partner and
several of their  affiliated  partnerships  and corporate  entities.  The action
purports  to  assert  claims  on  behalf  of a class  of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  which are named as nominal  defendants,  challenging,  among other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited partnership units;  management of the partnerships
by the  Insignia  affiliates;  and the series of  transactions  which  closed on
October 1, 1998 and February 26, 1999 whereby  Insignia and Insignia  Properties
Trust,  respectively,  were merged  into AIMCO.  The  plaintiffs  seek  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
On June 25, 1998, the Managing General Partner filed a motion seeking  dismissal
of the action.  In lieu of responding  to the motion,  the  plaintiffs  filed an
amended  complaint.  The Managing General Partner filed demurrers to the amended
complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
Plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
Plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied Plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which was heard on December 11, 2001.
On February 2, 2002,  the Court served its order  granting in part the demurrer.
The  Court has  dismissed  without  leave to amend  certain  of the  plaintiffs'
claims.  On February 11, 2002,  plaintiffs  filed a motion  seeking to certify a
putative  class  comprised of all  non-affiliated  persons who own or have owned
units  in  the  partnerships.   The  Managing  General  Partner  and  affiliated
defendants  intend  to  oppose  the  motion  and are  scheduled  to  file  their
opposition  brief on March 26, 2002. A hearing on the motion has been  scheduled
for April 29, 2002. The Court has set the matter for trial in January 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint. On December 11, 2001, the court heard argument on
the motions  and took the matters  under  submission.  On February 4, 2002,  the
Court  served  notice of its order  granting  defendants'  motion to strike  the
Heller complaint as a violation of its July 10, 2001 order in the Nuanes action.

The Managing  General Partner does not anticipate that any costs,  whether legal
or  settlement  costs,  associated  with  these  cases 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, 2001, no matters were submitted to a vote
of security holders through the solicitation of proxies or otherwise.



                                     PART II

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

The Partnership,  a publicly-held limited partnership,  offered and sold in 1981
and  1982,   130,000  Limited   Partnership  Units  (the  "Units")   aggregating
$65,000,000.  The Partnership  currently has 130,000 Units  outstanding  held by
3,688 limited  partners of record.  Affiliates of the Managing  General  Partner
owned 76,903.69  Units or 59.16% of the outstanding  Units at December 31, 2001.
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, 2001 and 2000. (See Item 6. Management's Discussion and
Analysis or Plan of Operation for further details).

                                                Distributions
                                                           Per Limited
                                        Aggregate        Partnership Unit

       01/01/00 - 12/31/00             $358,000 (1)          $ 2.56
       01/01/01 - 12/31/01              149,000 (1)            1.05

(1)   Distributions were made from operations.

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  cash  available  for
distribution is reviewed on a monthly basis.  There can be no assurance that the
Partnership  will  generate  sufficient  funds from  operations  after  required
capital  expenditures,  to  permit  distributions  to its  partners  in  2002 or
subsequent   periods.   See  "Item  2.   Description  of  Properties  -  Capital
Improvements" for information  relating to anticipated  capital  expenditures at
the properties.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 76,903.69 limited partnership units
(the "Units") in the Partnership representing 59.16% of the outstanding Units at
December  31,  2001.  A number of these Units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers. Under the Partnership  Agreement,  unitholders holding a majority
of the Units are  entitled to take  action with  respect to a variety of matters
which would include voting on certain  amendments to the  Partnership  Agreement
and voting to remove the Managing General Partner.  As a result of its ownership
of 59.16% of the outstanding Units, AIMCO is in a position to influence all such
voting decisions with respect to the Registrant.  When voting on matters,  AIMCO
would in all likelihood vote the Units it acquired in a manner  favorable to the
interest of the Managing  General Partner  because of its  affiliation  with the
Managing General Partner. However,  47,326.68 Units held by Insignia Properties,
LP, an affiliate of the Managing General Partner,  are required to be voted: (i)
against any increase in compensation  payable to the Managing General Partner or
to affiliates;  and (ii) on all other matters submitted by it or its affiliates,
in proportion  to the votes cast by  non-tendering  unitholders.  Except for the
foregoing,  no other limitations are imposed on AIMCO or its affiliates' ability
to influence voting decisions with respect to the Partnership.

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

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

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

Results of Operations

The Registrant's  net income for year ended December 31, 2001 was  approximately
$78,000 compared to approximately $142,000 for the year ended December 31, 2000.
The  decrease in net income was due to an increase in total  expenses  partially
offset by an  increase in total  revenues.  The  increase  in total  expenses is
primarily  attributable to an increase in operating,  depreciation,  general and
administrative and property tax expenses.  Operating expense increased due to an
increase  in payroll  and  related  benefits  and  utility  expenses at Woods of
Inverness and an increase in insurance expense at Ralston Place Apartments.  The
increase in depreciation  expense is due to depreciable  assets put into service
in the last twelve months which are now being depreciated.  Property tax expense
increased  due to an  increase  in the  assessed  value of  Woods  of  Inverness
Apartments.

General and  administrative  expenses  increased for the year ended December 31,
2001  due  to  an  increase  in   professional   expenses   necessary   for  the
administration  of the  Partnership.  Included  in  general  and  administrative
expense  for  the  year  ended   December  31,  2001  and  2000  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.

The  increase  in total  revenues is  attributable  to an increase in rental and
other income.  Rental income increased due to higher average rental rates and an
increase  in  occupancy  at  both  properties.  Other  income  increased  due to
increased utilities and tenant reimbursements at Woods of Inverness.

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,  2001,  the  Registrant  had  cash  and  cash  equivalents  of
approximately  $272,000 compared to approximately $262,000 at December 31, 2000,
an increase of approximately  $10,000. The increase in cash and cash equivalents
is due to  approximately  $699,000  of cash  provided by  operating  activities,
largely offset by approximately  $445,000 and $244,000 of cash used in investing
and  financing  activities,  respectively.  Cash  used in  investing  activities
consisted  of  capital   improvements  and  replacements  and  net  deposits  to
restricted  escrow  accounts  maintained  by the mortgage  lender.  Cash used in
financing  activities  consisted  of  distributions  to partners  and  principal
payments made on the mortgages  encumbering  the  Registrant's  properties.  The
Registrant invests its working capital reserves in interest bearing accounts.

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

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements. The Partnership is currently
evaluating  the capital  improvement  needs of the  properties  for the upcoming
year.  The  minimum  to  be  budgeted  is  expected  to  be  $300  per  unit  or
approximately  $142,000.  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  $7,082,000 is amortized  over 360 months with a
balloon  payment of  approximately  $6,618,000 due January 1, 2006. The Managing
General  Partner  will attempt to refinance  such  indebtedness  and/or sell the
properties  prior to such maturity date. If the properties  cannot be refinanced
or sold for a sufficient amount, the Registrant will risk losing such properties
through foreclosure.

Cash  distributions  from operations of approximately  $149,000 were paid during
the year ended  December 31, 2001, of which  approximately  $137,000 was paid to
limited partners ($1.05 per limited  partnership  unit). Cash distributions from
operations of  approximately  $358,000 were paid during the year ended  December
31, 2000, of which  approximately  $333,000 was paid to limited  partners ($2.56
per limited  partnership  unit).  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  cash available for  distribution  is reviewed on a monthly basis.
There can be no assurance that the Partnership  will generate  sufficient  funds
from operations after required capital  expenditures to permit  distributions to
its partners in 2002 or subsequent periods.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 76,903.69 limited partnership units
(the "Units") in the Partnership representing 59.16% of the outstanding Units at
December  31,  2001.  A number of these Units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers. Under the Partnership  Agreement,  unitholders holding a majority
of the Units are  entitled to take  action with  respect to a variety of matters
which would include voting on certain  amendments to the  Partnership  Agreement
and voting to remove the Managing General Partner.  As a result of its ownership
of 59.16% of the outstanding Units, AIMCO is in a position to influence all such
voting decisions with respect to the Registrant.  When voting on matters,  AIMCO
would in all likelihood vote the Units it acquired in a manner  favorable to the
interest of the Managing  General Partner  because of its  affiliation  with the
Managing General Partner. However,  47,326.68 Units held by Insignia Properties,
LP, an affiliate of the Managing General Partner,  are required to be voted: (i)
against any increase in compensation  payable to the Managing General Partner or
to affiliates;  and (ii) on all other matters submitted by it or its affiliates,
in proportion  to the votes cast by  non-tendering  unitholders.  Except for the
foregoing,  no other limitations are imposed on AIMCO or its affiliates' ability
to influence voting decisions with respect to the Partnership.

Recent Accounting Pronouncements

In August 2001, the Financial  Accounting Standards Board issued SFAS No. 144,
"Accounting  for the  Impairment or Disposal of Long-Lived  Assets".  SFAS No.
144 provides  accounting  guidance for financial  accounting and reporting for
the impairment or disposal of long-lived assets.  SFAS No. 144 supersedes SFAS
No.  121,  "Accounting  for  the  Impairment  of  Long-Lived  Assets  and  for
Long-Lived  Assets to be Disposed  Of".  SFAS No. 144 is effective  for fiscal
years  beginning  after December 15, 2001. The Managing  General  Partner does
not anticipate  that its adoption will have a material effect on the financial
position or results of operations of the Partnership.

Item 7.  Financial Statements


CENTURY PROPERTIES FUND XVI

LIST OF FINANCIAL STATEMENTS

      Report of Ernst & Young, LLP Independent Auditors

      Consolidated Balance Sheet - December 31, 2001

      Consolidated  Statements of  Operations - Years ended  December 31, 2001
      and 2000

      Consolidated  Statements of Changes in Partners' (Deficit) Capital - Years
      ended December 31, 2001 and 2000

      Consolidated  Statements  of Cash Flows - Years ended  December 31, 2001
      and 2000

      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,  2001,  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, 2001. 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, 2001,  and the  consolidated  results of its operations
and its cash flows for each of the two years in the period  ended  December  31,
2001, in conformity with accounting  principles generally accepted in the United
States.

                                                         /s/ ERNST & YOUNG LLP


Greenville, South Carolina
February 15, 2002

<PAGE>



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

                                December 31, 2001


<TABLE>
<CAPTION>

Assets
<S>                                                                       <C>
   Cash and cash equivalents                                              $    272
   Receivables and deposits                                                    287
   Restricted escrows                                                           77
   Other assets                                                                165
   Investment properties (Notes B and E):
      Land                                                  $  1,409
      Buildings and related personal property                 15,670
                                                              17,079
      Less accumulated depreciation                           (9,654)        7,425
                                                                           $ 8,226

Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                       $     30
   Accrued property taxes                                                      187
   Tenant security deposit liabilities                                          56
   Other liabilities                                                           106
   Mortgage notes payable (Notes B and E)                                    7,082

Partners' (Deficit) Capital
   General partners                                        $  (3,854)
   Limited partners (130,000 units
      issued and outstanding)                                  4,619           765
                                                                            $8,226

         See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>


<TABLE>
<CAPTION>

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


                                                           Years Ended December 31,
                                                              2001         2000
Revenues:
<S>                                                           <C>         <C>
   Rental income                                              $3,057      $2,975
   Other income                                                  269         167
      Total revenues                                           3,326       3,142

Expenses:
   Operating                                                   1,417       1,281
   General and administrative                                    280         244
   Depreciation                                                  683         629
   Interest                                                      593         601
   Property tax                                                  275         245

      Total expenses                                           3,248       3,000

Net income                                                    $   78      $  142

Net income allocated to general partners (6.9%)               $    5      $   10

Net income allocated to limited partners (93.1%)                  73         132

                                                              $   78      $  142

Net income per limited partnership unit                       $ 0.56      $ 1.02

Distributions per limited partnership unit                    $ 1.05      $ 2.56


         See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<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, 1999            130,000     $(3,832)      $ 4,884   $  1,052

Distributions to partners               --         (25)         (333)      (358)
Net income for the year
   ended December 31, 2000              --          10           132        142

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

Distributions to partners               --         (12)         (137)      (149)

Net income for the year
   ended December 31, 2001              --           5            73         78

Partners' (deficit) capital
   at December 31, 2001            130,000     $(3,854)      $ 4,619   $    765

         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,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net income                                                      $ 78        $ 142
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                                     683          629
   Amortization of loan costs                                        31           32
   Change in accounts:
      Receivables and deposits                                      (42)          79
      Other assets                                                   (3)           6
      Accounts payable                                              (54)          51
      Accrued property taxes                                          15          (8)
      Tenant security deposit liabilities                             15          (1)
      Other liabilities                                             (24)         (62)

      Net cash provided by operating activities                     699          868

Cash flows from investing activities:
  Property improvements and replacements                           (423)        (683)
  Net (deposits to) withdrawals from restricted escrows             (22)          55

       Net cash used in investing activities                       (445)        (628)

Cash flows from financing activities:
  Distributions to partners                                        (149)        (358)
  Payments on mortgage notes payable                                (95)         (88)

       Net cash used in financing activities                       (244)        (446)

Net increase (decrease) in cash and cash equivalents                 10         (206)

Cash and cash equivalents at beginning of year                      262          468

Cash and cash equivalents at end of year                         $ 272        $ 262

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $ 515        $ 616
Supplemental disclosure of non-cash transactions:
  Property improvement and replacements included in
    accounts payable                                              $ --        $ 93

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<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, 2001,  the  Partnership
operates  two  residential  apartment  complexes,  one each located in Texas and
Florida.  The Managing  General Partner is a subsidiary of Apartment  Investment
and  Management  Company  ("AIMCO"),  a publicly  traded real estate  investment
trust. The Partnership  Agreement  provides that the Partnership is to terminate
on December 31, 2025 unless  terminated  prior to such date.  The  directors and
officers of the Managing  General  Partner  also serve as executive  officers of
AIMCO.

Principles of Consolidation: The Partnership's consolidated financial statements
include the accounts of the Partnership and one wholly owned partnership and one
99% owned  partnership.  The general partner of the 99% owned partnership can be
removed  by the  Registrant;  therefore,  this  partnership  is  controlled  and
consolidated by the Registrant.  All significant  interpartnership  transactions
have been eliminated.

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

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

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

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

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

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand and in
banks.  At certain times,  the amount of cash deposited at a bank may exceed the
limit on insured  deposits.  Cash balances  included  approximately  $258,000 at
December 31, 2001 that are  maintained  by an affiliated  management  company on
behalf of affiliated entities in cash concentration accounts.

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

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

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

Loan Costs: Loan costs of approximately $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,  2001,
accumulated  amortization is approximately $189,000.  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 Statement of Financial  Accounting Standards ("SFAS")
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, 2001 or 2000.  See "Recent  Accounting
Pronouncements" below.

Fair  Value:  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
amounts of its  financial  instruments  (except for long term debt)  approximate
their fair values 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  $56,000 and $78,000 for the years
ended  December  31,  2001 and 2000,  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 established  standards
for related disclosures about products and services, geographic areas, and major
customers.  As defined in SFAS No. 131, the  Partnership has only one reportable
segment.  The Managing General Partner believes that  segment-based  disclosures
will  not  result  in a  more  meaningful  presentation  than  the  consolidated
financial statements as currently presented.

Recent Accounting Pronouncements

In August 2001, the Financial  Accounting Standards Board issued SFAS No. 144,
"Accounting  for the  Impairment or Disposal of Long-Lived  Assets".  SFAS No.
144 provides  accounting  guidance for financial  accounting and reporting for
the impairment or disposal of long-lived assets.  SFAS No. 144 supersedes SFAS
No.  121,  "Accounting  for  the  Impairment  of  Long-Lived  Assets  and  for
Long-Lived  Assets to be Disposed  Of".  SFAS No. 144 is effective  for fiscal
years  beginning  after December 15, 2001. The Managing  General  Partner does
not anticipate  that its adoption will have a material effect on the financial
position or results of operations of the Partnership.

Note B - Mortgage Notes Payable

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

                       Principal    Monthly                                    Principal
                       Balance At   Payment                                     Balance
                      December 31, Including Interest    Period    Maturity     Due At
       Property           2001      Interest   Rate    Amortized     Date      Maturity
                          (in thousands)                                     (in thousands)
<S>                      <C>        <C>        <C>      <C>         <C>          <C>
 Ralston Place           $ 2,157    $    17    7.88%    30 years    1/2006       $ 2,016
 Woods of Inverness
  Apartments               4,925         38    7.88%    30 years    1/2006         4,602
                         $ 7,082    $    55                                      $ 6,618
</TABLE>

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

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

Scheduled  principal  payments of mortgage notes payable  subsequent to December
31, 2001 are as follows (in thousands):

                             2002             $   103
                             2003                 111
                             2004                 120
                             2005                 130
                             2006               6,618
                                              $ 7,082

Note C - 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 (in thousands except per unit data):

                                                     2001          2000

Net income as reported                             $    78         $ 142
Add (deduct):
  Unearned revenue                                     (41)           31
  Depreciation differences                             361           359
  Miscellaneous                                        (10)           (4)

Federal taxable income                              $  388         $ 528

Federal taxable income per limited
  partnership unit                                  $ 2.78         $3.76

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

                                                 2001

Net assets as reported                          $   765
Land and buildings                                 926
Accumulated depreciation                        (4,649)
Syndication and distribution costs               8,258
Other                                               82
Net assets - Federal tax basis                 $ 5,382

Note D - 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 during the years ended December 31, 2001
and 2000:

                                                            2001       2000
                                                             (in thousands)

Property management fees (included in operating
   expense)                                                $169       $157

Reimbursement for services of affiliates (included
   in investment property and general and
   administrative and operating expenses)                   162        188

Affiliates of the Managing  General  Partner are 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
$169,000  and  $157,000  for  the  years  ended  December  31,  2001  and  2000,
respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $162,000 and
$188,000 for the years ended December 31, 2001 and 2000, respectively.

Beginning in 2001, the  Partnership  began insuring its properties up to certain
limits through coverage provided by AIMCO which is generally  self-insured for a
portion of losses and  liabilities  related  to workers  compensation,  property
casualty and vehicle liability. The Partnership insures its properties above the
AIMCO  limits  through  insurance  policies  obtained  by  AIMCO  from  insurers
unaffiliated  with the Managing General Partner.  During the year ended December
31, 2001, the Partnership  paid AIMCO and its affiliates  approximately  $18,000
for insurance coverage and fees associated with policy claims administration.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 76,903.69 limited partnership units
(the "Units") in the Partnership representing 59.16% of the outstanding Units at
December  31,  2001.  A number of these Units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers. Under the Partnership  Agreement,  unitholders holding a majority
of the Units are  entitled to take  action with  respect to a variety of matters
which would include voting on certain  amendments to the  Partnership  Agreement
and voting to remove the Managing General Partner.  As a result of its ownership
of 59.16% of the outstanding Units, AIMCO is in a position to influence all such
voting decisions with respect to the Registrant.  When voting on matters,  AIMCO
would in all likelihood vote the Units it acquired in a manner  favorable to the
interest of the Managing  General Partner  because of its  affiliation  with the
Managing General Partner. However,  47,326.68 Units held by Insignia Properties,
LP, an affiliate of the Managing General Partner,  are required to be voted: (i)
against any increase in compensation  payable to the Managing General Partner or
to affiliates;  and (ii) on all other matters submitted by it or its affiliates,
in proportion  to the votes cast by  non-tendering  unitholders.  Except for the
foregoing,  no other limitations are imposed on AIMCO or its affiliates' ability
to influence voting decisions with respect to the Partnership.

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

                                                    Initial Cost
                                                   To Partnership
                                                   (in thousands)

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

<S>                              <C>          <C>          <C>            <C>
Ralston Place                    $ 2,157      $  504       $ 4,702        $ 1,538
Woods of Inverness                 4,925       1,292        10,305         (1,262)

Total                            $ 7,082      $1,796       $15,007        $   276
</TABLE>

<TABLE>
<CAPTION>

                             Gross Amount At Which Carried
                                 At December 31, 2001
                                    (in thousands)

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

<S>                          <C>     <C>         <C>         <C>           <C>      <C>
Ralston Place                $  504  $ 6,240     $ 6,744     $ 3,830       06/82    5-30 years
Woods of Inverness              905    9,430      10,335       5,824       07/82    5-30 years

Total                        $1,409  $15,670     $17,079     $ 9,654
</TABLE>

Reconciliation of Investment Properties and Accumulated Depreciation:

                                                Years Ended December 31,
                                                  2001            2000
                                                     (in thousands)

Balance at beginning of year                   $16,749          $16,054
    Property improvements                          330              695

Balance at end of year                         $17,079          $16,749

Accumulated Depreciation

Balance at beginning of year                   $ 8,971          $ 8,342
    Additions charged to expense                   683              629

Balance at end of year                         $ 9,654          $ 8,971

The aggregate cost of the investment  properties for Federal income tax purposes
at December 31, 2001 and 2000, is  approximately  $18,005,000  and  $17,674,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 2001 and 2000, is  approximately  $14,303,000  and  $13,981,000,
respectively.

Note F - Distributions

Cash  distributions  from operations of approximately  $149,000 were paid during
the year ended  December 31, 2001, of which  approximately  $137,000 was paid to
limited partners ($1.05 per limited  partnership  unit). Cash distributions from
operations of  approximately  $358,000 were paid during the year ended  December
31, 2000, of which  approximately  $333,000 was paid to limited  partners ($2.56
per limited partnership unit).

Note G - Legal Proceedings

In March 1998, several putative  unitholders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the  Partnership,  its Managing  General Partner and
several of their  affiliated  partnerships  and corporate  entities.  The action
purports  to  assert  claims  on  behalf  of a class  of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  which are named as nominal  defendants,  challenging,  among other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited partnership units;  management of the partnerships
by the  Insignia  affiliates;  and the series of  transactions  which  closed on
October 1, 1998 and February 26, 1999 whereby  Insignia and Insignia  Properties
Trust,  respectively,  were merged  into AIMCO.  The  plaintiffs  seek  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
On June 25, 1998, the Managing General Partner filed a motion seeking  dismissal
of the action.  In lieu of responding  to the motion,  the  plaintiffs  filed an
amended  complaint.  The Managing General Partner filed demurrers to the amended
complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
Plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
Plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied Plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which was heard on December 11, 2001.
On February 2, 2002,  the Court served its order  granting in part the demurrer.
The  Court has  dismissed  without  leave to amend  certain  of the  plaintiffs'
claims.  On February 11, 2002,  plaintiffs  filed a motion  seeking to certify a
putative  class  comprised of all  non-affiliated  persons who own or have owned
units  in  the  partnerships.   The  Managing  General  Partner  and  affiliated
defendants  intend  to  oppose  the  motion  and are  scheduled  to  file  their
opposition  brief on March 26, 2002. A hearing on the motion has been  scheduled
for April 29, 2002. The Court has set the matter for trial in January 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint. On December 11, 2001, the court heard argument on
the motions  and took the matters  under  submission.  On February 4, 2002,  the
Court  served  notice of its order  granting  defendants'  motion to strike  the
Heller complaint as a violation of its July 10, 2001 order in the Nuanes action.

The Managing  General Partner does not anticipate that any costs,  whether legal
or  settlement  costs,  associated  with  these  cases will be  material  to the
Partnership's overall operations.

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

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

         None.


                                    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              44    Executive Vice President and Director
Martha L. Long               42    Senior Vice President and Controller

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

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

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

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

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

The executive  officers and director of the Managing  General Partner  discussed
with the  Partnership's  independent  auditors  the overall  scope and plans for
their audit. In reliance on the reviews and discussions  referred to above,  the
executive officers and director of the Managing General Partner has approved the
inclusion of the audited  financial  statements  in the Form 10-KSB for the year
ended December 31, 2001 for filing with the Securities and Exchange Commission.

The Managing  General Partner has  reappointed  Ernst & Young LLP as independent
auditors to audit the financial  statements of the  Partnership  for the current
fiscal year. Fees for the last fiscal year were audit services of  approximately
$37,000  and  non-audit  services  (principally  tax-related)  of  approximately
$19,000.

Item 10. Executive Compensation

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

Item 11. Security Ownership of Certain Beneficial Owners and Management

Except as noted below, no person or entity was known by the Registrant to be the
beneficial  owner  of  more  than 5% of the  Limited  Partnership  Units  of the
Registrant as of December 31, 2001.

    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)                    29,215.01           22.47%
Fox Capital Management Corp
  (an affiliate of AIMCO)`                      200.00            0.16%

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

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

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

Item 12. Certain Relationships and Related Transactions

The  Partnership  has no employees  and is dependent  upon the Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The Partnership Agreement provides for (i) payments to
affiliates for services and (ii)  reimbursement of certain expenses  incurred by
affiliates on behalf of the Partnership. The following expenses were paid to the
Managing General Partner and affiliates during the years ended December 31, 2001
and 2000:

                                                           2001       2000
                                                           (in thousands)


Property management fees                                   $169       $157

Reimbursement for services of affiliates                    162        188

Affiliates of the Managing  General  Partner are 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
$169,000  and  $157,000  for  the  years  ended  December  31,  2001  and  2000,
respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $162,000 and
$188,000 for the years ended December 31, 2001 and 2000, respectively.

Beginning in 2001, the  Partnership  began insuring its properties up to certain
limits through coverage provided by AIMCO which is generally  self-insured for a
portion of losses and  liabilities  related  to workers  compensation,  property
casualty and vehicle liability. The Partnership insures its properties above the
AIMCO  limits  through  insurance  policies  obtained  by  AIMCO  from  insurers
unaffiliated  with the Managing General Partner.  During the year ended December
31, 2001, the Partnership  paid AIMCO and its affiliates  approximately  $18,000
for insurance coverage and fees associated with policy claims administration.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 76,903.69 limited partnership units
(the "Units") in the Partnership representing 59.16% of the outstanding Units at
December  31,  2001.  A number of these Units were  acquired  pursuant to tender
offers made by AIMCO,  its  affiliates  or  affiliates  of the Managing  General
Partner.  It is possible that AIMCO or its  affiliates  will acquire  additional
limited  partnership  interests in the  Partnership  for cash or in exchange for
units in the operating  partnership of AIMCO either through private purchases or
tender offers. Under the Partnership  Agreement,  unitholders holding a majority
of the Units are  entitled to take  action with  respect to a variety of matters
which would include voting on certain  amendments to the  Partnership  Agreement
and voting to remove the Managing General Partner.  As a result of its ownership
of 59.16% of the outstanding Units, AIMCO is in a position to influence all such
voting decisions with respect to the Registrant.  When voting on matters,  AIMCO
would in all likelihood vote the Units it acquired in a manner  favorable to the
interest of the Managing  General Partner  because of its  affiliation  with the
Managing General Partner. However,  47,326.68 Units held by Insignia Properties,
LP, an affiliate of the Managing General Partner,  are required to be voted: (i)
against any increase in compensation  payable to the Managing General Partner or
to affiliates;  and (ii) on all other matters submitted by it or its affiliates,
in proportion  to the votes cast by  non-tendering  unitholders.  Except for the
foregoing,  no other limitations are imposed on AIMCO or its affiliates' ability
to influence voting decisions with respect to the Partnership.

Item 13. Exhibits and Reports on Form 8-K

         (a)   Exhibits:

               None.

         (b)   Reports on Form 8-K filed during the quarter  ended  December 31,
               2001.

               None.


<PAGE>


                                   SIGNATURES



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



                                 CENTURY PROPERTIES FUND XVI



                                 By:     Fox Capital Management Corporation
                                         Managing General Partner

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

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


                                 Date:   March 25, 2002

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

/s/Patrick J. Foye               Date:  March 25, 2002
Patrick J. Foye
Executive Vice President
and Director

/s/Martha L. Long                Date:  March 25, 2002
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, 2000,
                  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, 2000. (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)