UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, DC.  20549

                            FORM 10-Q

(Mark One)

[X]  QUARTERLY  REPORT PURSUANT TO SECTION 13  OR  15(d)  OF  THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended         June 30, 2001
                               ----------------------------------

                               or

[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)  OF  THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number                 0-14934
                        -----------------------------------------

                DIVERSIFIED HISTORIC INVESTORS
-----------------------------------------------------------------
    (Exact name of registrant as specified in its charter)

Pennsylvania                                        23-2312037
--------------                                  -----------------
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)                 Identification No.)

           1521 Locust Street, Philadelphia, PA   19102
-----------------------------------------------------------------
     (Address of principal executive offices)    (Zip Code)

Registrant's telephone number, including area code (215) 557-9800
                                                   --------------

                              N/A
-----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)

Indicate  by check mark 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
                                            ------     ------

<PAGE>



                 PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

        Consolidated Balance Sheets - June 30, 2001 (unaudited)
        and December 31, 2000
        Consolidated Statements of Operations - Three Months and
        Six Months Ended June 30, 2001 and 2000 (unaudited)
        Consolidated Statements of Cash Flows - Six Months Ended
        June 30, 2001 and 2000 (unaudited)
        Notes to Consolidated Financial Statements (unaudited)

Item 2.   Management's Discussion and Analysis of
          Financial Condition and Results of Operations.

(1)  Liquidity

               At   June  30,  2001,  Registrant  had   cash   of
approximately  $858.  Cash  generated  from  operations  is  used
primarily to fund operating expenses and debt service.   If  cash
flow  proves to be insufficient, the Registrant will  attempt  to
negotiate with the various lenders in order to remain current  on
all  obligations.  The Registrant is not aware of any  additional
sources of liquidity.

              As of June 30, 2001, Registrant had restricted cash
of  $63,068  consisting  primarily  of  funds  held  as  security
deposits,  replacement  reserves and escrows  for  taxes.   As  a
consequence of these restrictions as to use, Registrant does  not
deem these funds to be a source of liquidity.

               In   recent  years  the  Registrant  has  realized
significant losses, including the foreclosure of five  properties
and  a  portion  of  a  sixth property, due  to  the  properties'
inability to generate sufficient cash flow to pay their operating
expenses and debt service. The Registrant has first mortgages  in
place  in  each of its remaining three properties that are  cash-
flow  mortgages,  requiring all available cash after  payment  of
operating  expenses  to  be paid to the  first  mortgage  holder.
Therefore it is unlikely that any cash will be available  to  the
Registrant to pay its general and administrative expenses, to pay
debt service on the past-due subordinate mortgage with respect to
the  Third Quarter or to pay any debt service on the two  accrual
mortgages with respect to Wistar Alley.

             It is the Registrant's intention to continue to hold
the  properties  until they can no longer meet the  debt  service
requirements  (or  with respect to the Third Quarter  and  Wistar
Alley, the lender seeks payment on the past due mortgage) and the
properties  are foreclosed, or the market value of the properties
increases to a point where they can be sold at a price  which  is
sufficient to repay the underlying indebtedness.

              Since  the  lenders have agreed either to  forebear
from  taking any foreclosure action as long as cash flow payments
are  made, to accrue all debt service in lieu of payment, or have
(in the case of Third Quarter) not moved to declare a default for
a  substantial  period of time after the mortgage due  date,  the
Registrant believes it is appropriate to continue presenting  its
financial statements on a going concern basis.


          (2)  Capital Resources

               Any  capital  expenditures  needed  are  generally
replacement  items and are funded out of cash from operations  or
replacement reserves, if any. The Registrant is not aware of  any
factors which would cause historical capital expenditures  levels
not  to  be indicative of capital requirements in the future  and
accordingly,  does  not  believe that  it  will  have  to  commit
material  resources  to capital investment  for  the  foreseeable
future.   If  the need for capital expenditures does  arise,  the
first  mortgage holder for Third Quarter, Wistar Alley and Smythe
Stores  has agreed to fund capital expenditures at terms  similar
to the first mortgage.

          (3)  Results of Operations

              During  the  second  quarter  of  2001,  Registrant
recognized   a  net  income  of  $116,357  ($9.92   per   limited
partnership  unit) compared to a net income of  $213,721  ($18.23
per  limited partnership unit) for the same period in 2000.   For
the  first six months of 2001, the Registrant incurred a loss  of
$30,662  ($2.61 per limited partnership unit) compared to  a  net
income of $282,958 ($24.13 per limited partnership unit) for  the
same period in 2000.

              Rental income increased $9,989 from $121,860 in the
second  quarter of 2000 to $131,849 in the same period  in  2001.
The  increase in rental income is due to an increase  in  average
occupancy (96% to 98%) at Wistar Alley and an increase in average
rental rates at the Third Quarter Apartments.

              Rental  income increased $22,818 from $241,706  for
the  first six months of 2000 to $264,524 for the same period  in
2001.   The  increase in rental income is due to an  increase  in
average occupancy (93% to 98%) at Wistar Alley and an increase in
average rental rates at the Third Quarter Apartments.

              Expenses for rental operations decreased by $39,173
from  $107,202  in the second quarter of 2000 to $68,029  in  the
same  period  in  2001  and  for the first  six  months  of  2001
decreased  $58,247 from $224,374 during the first six  months  of
2000  to  $166,127 for the same period in 2001. The  decrease  in
rental  operations expense for the second quarter and  the  first
half  of  2001  is  due to a decrease in maintenance  expense  at
Wistar Alley, Third Quarter, and the Smythe Stores combined  with
a decrease in miscellaneous tax and license expense at the Smythe
Stores.  The decrease in maintenance expense at Wistar  Alley  is
due to a decrease in apartment preparations expense. The decrease
in  maintenance expense at the Third Quarter Apartments is due to
a  decrease  in  ground  maintenance and  cleaning  service.  The
decrease  in maintenance expense at the Smythe Stores is  due  to
the sale of a condominium unit during the second quarter of 2001.
The  decrease  in miscellaneous tax and license  expense  at  the
Smythe Stores is due to a decrease in the Net Profit Tax owed  by
property  in  the  second quarter of 2001 compared  to  the  same
period in 2000.

              Interest expense increased $12,081 from $118,741 in
the second quarter of 2000 to $130,822 in the same period in 2001
and  increased by $36,077 from $227,120 for the first six  months
of 2000 to $263,197 for the same period in 2001.  The increase in
interest  expense is due to an increase in the amount of interest
expense  accrued at the Smythe Stores during the  second  quarter
and  the first six months of 2001 compared to the same period  in
2000.

              Income recognized during the second quarter at  the
Registrant's properties was approximately $126,000,  compared  to
income  of  approximately $240,000 for the same period  in  2000.
For  the  first  six months of 2001, the Registrant's  properties
incurred  a net loss of approximately $12,000 compared to  income
of approximately $336,000 for the same period in 2000.

             In the second quarter of 2001, Registrant recognized
income  of  $176,000  at  the Smythe Stores  Condominium  complex
including $19,000 of depreciation expense, compared to income  of
$309,000  in  the  second quarter of 2000, including  $19,000  of
depreciation  expense.  Included in income in the second  quarter
of 2001 is a gain of $27,811 related to the sale of a condominium
unit  compared  to  $100,304 for the same  period  in  2000.   An
extraordinary  gain of $214,985 for the second  quarter  of  2001
compared  to $293,501 for the same period in 2000 was  recognized
for  the  extinguishment of debt related  to  those  sales.   The
extraordinary gain represents the excess of the debt extinguished
by  the sale of the condominium units over the fair market  value
of the units.  Overall, exclusive of the gain, the property would
have  incurred a loss of $69,000 for the second quarter  of  2001
compared to a loss of $83,000 for the second quarter of 2000. The
decrease in loss is due to a decrease in maintenance expense  and
miscellaneous  tax and license expense, partially  offset  by  an
increase in interest expense. The decrease in maintenance expense
is  due  to  the  sale of a condominium unit  during  the  second
quarter  2001, and the decrease in miscellaneous tax and  license
expense  is due to a decrease in the Net Profit Tax owed  by  the
property  in  2001  compared to the  same  period  in  2000.  The
increase  in interest expense is due to the increase  in  accrued
interest recorded in the second quarter of 2001 compared  to  the
same period in 2000.

               In  the  first  six  months  of  2001,  Registrant
recognized  income of $114,000 including $27,000 of  depreciation
expense,  compared to income of $507,000 for the same  period  in
2000,  including  $38,000 of depreciation  expense.  Included  in
income  in  the  first six months of 2001 is a  gain  of  $27,811
related  to the sale of a condominium unit compared to a gain  of
$139,633  related to the sale of two condominium units which  was
included  in  income  for  the first  six  months  of  2000.   An
extraordinary gain of $214,985 for the first six months  of  2001
compared  to $504,638 for the same period in 2000 was  recognized
for  the  extinguishment of debt related  to  those  sales.   The
extraordinary gain represents the excess of the debt extinguished
by  the sales of the condominium units over the fair market value
of the units.  Overall, exclusive of the gain, the property would
have incurred a loss of $129,000 for the first six months of 2001
compared  to a loss of $135,000 for the same period in 2000.  The
decrease  in loss is due to a decrease in miscellaneous  tax  and
license expense and a decrease in depreciation expense, partially
offset  by  an  increase  in interest expense.  The  decrease  in
maintenance expense and depreciation expense is due to  the  sale
of  a condominium unit during the second quarter of 2001, and the
decrease  in miscellaneous tax and license expense is  due  to  a
decrease  in the Net Profit Tax payment. The increase in interest
expense  is due to the increase in accrued interest recorded  for
the second quarter of 2001 compared to the same period in 2000.


             In the second quarter of 2001, Registrant incurred a
loss of $36,000 at Third Quarter Apartments, including $18,000 of
depreciation  expense, compared to a loss  of  $35,000  including
$18,000  of depreciation expense in the second quarter  of  2000.
The  increase  in the loss for the second quarter is  due  to  an
increase  in  miscellaneous  operating  expense  due  to  general
expenses  incurred at the property. For the first six  months  of
2001, Registrant incurred a loss of $77,000, including $37,000 of
depreciation expense, compared to a loss of $85,000 for the  same
period  of  2000, including $36,000 of depreciation expense.  The
decrease  in loss for the first six months is due to an  increase
in  rental  income  and  a decrease in maintenance  expense.  The
increase in rental income is due to an increase in average rental
rates  and  the  decrease in maintenance  expense  is  due  to  a
decrease in ground maintenance and cleaning service expense.

             In the second quarter of 2001, Registrant incurred a
loss   of   $15,000  at  Wistar  Alley,  including   $22,000   of
depreciation  expense, compared to a loss of  $33,000,  including
$22,000  of depreciation expense, in the second quarter of  2000.
For  the first six months of 2001, Registrant incurred a loss  of
$49,000, including $45,000 of depreciation expense, compared to a
loss  of $86,000, including $44,000 of depreciation expense,  for
the  same period in 2000.  The decrease in the loss for both  the
second  quarter and the first six months of 2001 compared to  the
same  period  in 2000 is due to an increase rental income  and  a
decrease in maintenance expense. The increase in rental income is
due  to  an  increase in average occupancy (93% to 98%)  for  the
first six months. The decrease in maintenance expense is due to a
decrease  in  apartment  preparation  expense  during  the  third
quarter.


<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

                   CONSOLIDATED BALANCE SHEETS
                   ---------------------------

                             Assets

                              June 30, 2001    December 31, 2000
                              -------------    -----------------
                               (Unaudited)
Rental properties, at cost:
 Land                           $  299,612          $  301,483
 Buildings and improvements      4,506,943           4,709,536
 Furniture and fixtures            134,376             138,632
                                ----------          ----------
                                 4,940,931           5,149,651
Less - accumulated depreciation (3,026,337)         (3,044,292)
                                ----------          ----------
                                 1,914,594           2,105,359
Cash and cash equivalents              858               8,872
Restricted cash                     63,068              83,662
Accounts receivable                  9,887               7,083
Other assets (net of
 amortization of
 $32,825 and $32,113)                3,719               4,430
                                ----------          ----------
     Total                      $1,992,126          $2,209,406
                                ==========          ==========

                Liabilities and Partners' Equity

Liabilities:
Debt obligations                $4,899,659          $5,045,411
Accounts payable:
 Trade                             589,988             609,437
 Related parties                   491,419             473,166
Interest payable                 1,049,806           1,090,869
Tenant security deposits            49,673              42,108
Other liabilities                    2,598               8,771
                                ----------          ----------
     Total liabilities           7,083,143           7,269,762
Partners' deficit               (5,091,017)         (5,060,356)
                                ----------          ----------
     Total                      $1,992,126          $2,209,406
                                ==========          ==========

The accompanying notes are an integral part of these financial statements.

<PAGE>
                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

              CONSOLIDATED STATEMENTS OF OPERATIONS
              -------------------------------------
                           (Unaudited)

                          Three months            Six months
                         ended June 30,         ended June 30,
                        2001        2000        2001      2000
                        ----        ----        ----      ----
Revenues:
 Rental income       $131,849    $121,860    $264,524    $241,706
 Gain on sale of
  units                27,811     100,305      27,811     139,633
 Other income              90           0          90           0
 Interest income          231         164         564         919
                     --------    --------    --------    --------
  Total revenues      159,981     222,329     292,989     382,258
                     --------    --------    --------    --------

Costs and expenses:
 Rental operations     68,028     107,202     166,126     224,374
 General and
  administrative            0      17,460           0      34,920
 Interest             130,822     118,741     263,197     227,120
 Depreciation and
  amortization         59,759      58,706     109,313     117,524
                     --------    --------    --------    --------
  Total costs and
   expenses           258,609     302,109     538,636     603,938

Loss before
 extraordinary item   (98,628)    (79,780)   (245,647)   (221,680)
Extraordinary gain
 from extinguishment
 of debt              214,985     293,501     214,985     504,638
                     --------    --------    --------    --------
Net income/loss      $116,357    $213,721   ($ 30,662)  ($282,958)
                     ========    ========    ========    ========
Net income (loss)
 per limited
 partnership unit:
 Loss before
  extraordinary
  item              ($   8.41)  ($   6.80)  ($  20.94)  ($  18.90)
 Extraordinary gain     18.33       25.03       18.33       43.03
                     --------    --------    --------    --------
                     $   9.92    $  18.23   ($   2.61)   $  24.13
                     ========    ========    ========    ========

The accompanying notes are an integral part of these financial statements.

<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

              CONSOLIDATED STATEMENTS OF CASH FLOWS
              -------------------------------------
                           (Unaudited)


                                          Six months ended
                                               June 30,
                                          2001         2000
                                          ----         ----
Cash flows from operating activities:
 Net income                            $212,134     $282,958
 Adjustments to reconcile net income
  to net cash (used in) provided by
  operating activities:
  Gain on sale of units                 (27,811)    (139,633)
  Extraordinary gain on extinguishment
   on debt                             (214,985)    (504,638)
  Depreciation and amortization         109,313      117,524
  Changes in assets and liabilities:
  Decrease in restricted cash            20,595       19,098
  (Increase) decrease in accounts
   receivable                            (2,803)       9,111
  Increase in other assets                    0       (4,410)
  (Decrease) increase in accounts
   payable - trade                      (19,450)      65,314
  Increase in accounts payable -
   related parties                       18,253       18,253
  (Decrease) increase in interest
   payable                              (41,063)     111,064
  (Decrease) increase in accrued
   liabilities                           (6,173)       7,949
  Increase in tenant security deposits    7,565        5,365
                                       --------     --------
Net cash (used in) provided by
 operating activities                    55,575      (12,045)
                                       --------     --------
Cash flows from investing activities:
 Proceeds from sale of units             82,163      710,941
                                       --------     --------
Net cash provided by investing
 activities                              82,163      710,941
                                       --------     --------
Cash flows from financing activities:
 Repayment of debt                     (145,752)    (710,941)
 Borrowings under debt obligations            0        7,332
                                       --------     --------
Net cash used in financing activities  (145,752)    (703,609)
                                       --------     --------
Decrease) increase in cash and cash
 equivalents                             (8,014)      (4,713)
Cash and cash equivalents at
 beginning of period                      8,872       11,813
                                       --------     --------
Cash and cash equivalents at end of
 period                                $    858     $  7,100
                                       ========     ========

The accompanying notes are an integral part of these financial statements.

<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

The  unaudited  consolidated financial statements of  Diversified
Historic Investors (the "Registrant") and related notes have been
prepared  pursuant to the rules and regulations of the Securities
and  Exchange  Commission.  Accordingly, certain information  and
footnote  disclosures  normally included in financial  statements
prepared   in  accordance  with  generally  accepted   accounting
principles  have  been  omitted  pursuant  to  such   rules   and
regulations.  The accompanying consolidated financial  statements
and  related notes should be read in conjunction with the audited
financial  statements  in  Form 10-K and  notes  thereto  of  the
Registrant for the year ended December 31, 2000.

The information furnished reflects, in the opinion of management,
all   adjustments,  consisting  of  normal  recurring   accruals,
necessary  for a fair presentation of the results of the  interim
periods presented.

<PAGE>

                   PART II - OTHER INFORMATION

Item 1.      Legal Proceedings

          To the best of its knowledge, Registrant is not a party
to,  nor  is  any  of its property the subject  of,  any  pending
material legal proceedings.

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

           No matter was submitted during the quarter covered  by
this report to a vote of security holders.

Item 6.      Exhibits and Reports on Form 8-K

       (a) Exhibit Number       Document
           --------------       --------
              3                 Registrant's    Amended     and
                                Restated Certificate of Limited
                                Partnership  and  Agreement  of
                                Limited Partnership, previously
                                filed as part of Amendment  No.
                                2  of Registrant's Registration
                                Statement  on  Form  S-11,  are
                                incorporated     herein      by
                                reference.

            21                  Subsidiaries of the  Registrant
                                are    listed   in   Item    2.
                                Properties   on   Form    10-K,
                                previously      filed       and
                                incorporated     herein      by
                                reference.

        (b) Reports on Form 8-K:

            No  reports were filed on Form 8-K during the quarter
            ended June 30, 2001.

<PAGE>

                           SIGNATURES

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

Date: September 30, 2002   DIVERSIFIED HISTORIC INVESTORS
      ------------------
                           By: Diversified Historic Advisors,
                               General Partner

                               By: EPK, Inc., Partner

                                   By: /s/ Spencer Wertheimer
                                       ----------------------
                                      SPENCER WERTHEIMER
                                      President and Treasurer


<PAGE>