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         September 30, 2002
                               ----------------------------------

                               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 - September 30, 2002
        (unaudited) and December 31, 2001
        Consolidated Statements of Operations - Three Months and
        Nine Months Ended September 30, 2002 and 2001
        (unaudited)
        Consolidated Statements of Cash Flows - Nine Months
        Ended September 30, 2002 and 2001 (unaudited)
        Notes to Consolidated Financial Statements (unaudited)

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

(1)  Liquidity

              As  of  September 30, 2002, Registrant had cash  of
approximately  $4,186.  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 September 30, 2002, Registrant had restricted
cash  of  $86,895 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  lenders on the past due subordinate  mortgages  seek
payment)  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

              Due to the relatively recent rehabilitations of the
properties,   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.

          (3)  Results of Operations

               During  the  third  quarter  of  2002,  Registrant
incurred  a  net loss of $103,554 ($8.83 per limited  partnership
unit)  compared  to  a net loss of $106,003  ($9.03  per  limited
partnership  unit) for the same period in 2001.   For  the  first
nine  months  of  2002, the Registrant incurred  a  net  loss  of
$346,006 ($29.50 per limited partnership unit) compared to a  net
loss  of  $136,664 ($11.65 per limited partnership unit) for  the
same period in 2001.

              Rental income increased $4,732 from $136,178 in the
third quarter of 2001 to $140,910 in the same period in 2002  and
for the first nine months of 2002 increased $25,335 from $400,702
for the first nine months of 2001 to $426,037 for the same period
in  2002. The increase in rental income from the third quarter of
2001  to the same period in 2002 is due to an increase in average
rental  rates at the Smythe Stores, the Third Quarter Apartments,
and  Wistar Alley. The increase in rental income from  the  first
nine  months  of 2001 to the same period in 2002  is  due  to  an
increase in average occupancy at the Smythe Stores (96%  to  98%)
and the Third Quarter Apartments (95% to 96%).

              Rental  operations  expense increased  $6,853  from
$54,973  in  the  third quarter of 2001 to $61,826  in  the  same
period  in  2002. The increase in rental operations expense  from
the third quarter of 2001 to the same period in 2002 is due to an
increase  in insurance expense, maintenance expense, and  leasing
commission expense. The increase in insurance expense occurred at
the  Third Quarter Apartments and Wistar Alley and is due  to  an
increase in monthly premiums. The increase in maintenance expense
and  leasing  commission expense at Wistar Alley  is  due  to  an
increase in the turnover of apartment units.

               Rental  operations  expense  decreased  $188  from
$221,100  for the first nine months of 2001 to $220,912  for  the
same  period  in 2002. The decrease in rental operations  expense
from the first nine months of 2001 to the same period in 2002  is
due to a decrease in maintenance expense, partially offset by  an
increase  in  insurance  expense.  The  decrease  in  maintenance
expense occurred at the Third Quarter Apartments and is due to  a
decrease  in  apartment  preparation expenses.  The  increase  in
insurance  expense occurred at the Third Quarter  Apartments  and
Wistar Alley and is due to an increase in monthly premiums.

              Interest expense increased $5,010 from $127,834  in
the  third quarter of 2001 to $132,844 in the same period in 2002
and  increased $8,624 from $391,031 for the first nine months  of
2001  to  $399,655 for the same period in 2002. The  increase  in
interest  expense  from the third quarter of  2001  to  the  same
period  in  2002 is due to an increase in principal balance  upon
which  the  interest  is  calculated at both  the  Third  Quarter
Apartments  and  Wistar Alley. The increase from the  first  nine
months  of  2001  to the same period in 2002 is also  due  to  an
increase  in  principal balance at the Third Quarter  and  Wistar
Alley, partially offset by a decrease in interest expense at  the
Smythe  Stores. The decrease in interest expense  at  the  Smythe
Stores is due to a decrease in principal balance combined with an
increase  in monthly payments. The decrease in principal  balance
is  due  to the extinguishment of debt related to the sale  of  a
condominium unit during 2001.

              Losses  incurred during the third  quarter  at  the
Registrant's   three   properties  were  approximately   $94,000,
compared  to a loss of approximately $97,000 for the same  period
in 2001. For the first nine months of 2002 the Registrant's three
properties incurred a net loss of approximately $318,000 compared
to  a  net loss of approximately $109,000 for the same period  in
2001.

           In  the  third quarter of 2002, Registrant incurred  a
loss   of  $48,000  at  the  Smythe  Stores  condominium  complex
including $7,000 of depreciation expense, compared to a  loss  of
$64,000, including $19,000 of depreciation expense, in the  third
quarter  of 2001. The decrease in loss from the third quarter  of
2001  to the same period in 2002 is due to an increase in  rental
income combined with a decrease in rental operations expense  and
depreciation expense. The increase in rental income is due to  an
increase  in  average  rental  rates.  The  decrease  in   rental
operations  expense  is due to a decrease in maintenance  expense
and  legal  and accounting expense.  The decrease in depreciation
expense  is  due  to the sale of a condominium unit  during  2001
which decreased the depreciable basis of the fixed assets.

              In  the  first  nine  months  of  2002,  Registrant
incurred  a  loss of $150,000, including $20,000 of  depreciation
expense,  compared  to  income of $50,000, including  $46,000  of
depreciation expense, for the same period in 2001, at the  Smythe
Stores condominium complex.  Included in income during the  first
nine months of 2001 is a gain of $27,811 related to the sale of a
condominium   unit.  An  extraordinary  gain  of   $214,985   was
recognized  during  the  first  nine  months  of  2001  for   the
extinguishment  of  debt related to the sale.  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 $192,000 for the first nine months of 2001. The decrease
in  loss from the first nine months of 2001 to the same period in
2002  is  due  to an increase in rental income and a decrease  in
maintenance expense and interest expense. The increase in  rental
income  is due to an increase in average occupancy (96% to  98%).
The  decrease in maintenance expense is due to a decrease in HVAC
service and repairs. The decrease in interest expense is due to a
decrease  in  principal  balance  upon  which  the  interest   is
calculated due to the extinguishment of debt related to the  sale
of a condominium unit during 2001.

              In the third quarter of 2002, Registrant incurred a
loss  of  $26,000  at  the  Third Quarter  Apartments,  including
$21,000  of depreciation expense, compared to a loss of  $26,000,
including  $18,000 of depreciation expense, in the third  quarter
of  2001  and  for  the  first nine months  of  2002,  Registrant
incurred  a  loss  of $102,000 including $59,000 of  depreciation
expense,  compared  to  a loss of $104,000 including  $55,000  in
depreciation expense during 2001. The loss for the third  quarter
remained  the same for both 2001 and 2002. The decrease  in  loss
from the first nine months of 2001 to the same period in 2002  is
due  to  an  increase in rental income and a decrease  in  rental
operations  expense, partially offset by an increase in  interest
expense.  The increase in rental income is due to an increase  in
average occupancy (95% to 96%). The decrease in rental operations
expense  is  due to a decrease in maintenance expense,  partially
offset  by  an  increase in insurance expense.  The  decrease  in
maintenance   expense   is  due  to  a  decrease   in   apartment
preparations  expense and capital improvements  made  during  the
third quarter and the increase in insurance expense is due to  an
increase in monthly premiums. The increase in interest expense is
due  to  an increase in principal balance upon which the interest
is calculated.

              In the third quarter of 2002, Registrant incurred a
loss  of  $19,000 including $23,000 of depreciation  expense,  at
Wistar  Alley compared to a loss of $7,000, including $22,000  of
depreciation expense in the third quarter of 2001,  and  for  the
first nine months of 2002, Registrant incurred a loss of $66,000,
including $68,000 of depreciation expense, compared to a loss  of
$56,000,  including $67,000 of depreciation expense for the  same
period  in 2001. The increase in loss from both the third quarter
and  the first nine months of 2001 to the same period in 2002  is
due  to  an  increase in rental operations expense  and  interest
expense,  partially offset by an increase in rental  income.  The
increase  in  rental operations expense is due to an increase  in
maintenance expense and leasing commission expense which are both
due  to the increase in turnover of apartment units. The increase
in  insurance expense is due to an increase in monthly  premiums.
The  increase  in  interest expense is  due  to  an  increase  in
principal  balance  upon which the interest  is  calculated.  The
increase in rental income is due to an increase in monthly rental
rates.

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

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

                             Assets

                               September 30, 2002    December 31, 2001
                               ------------------    -----------------
                                (Unaudited)
Rental properties, at cost:
 Land                                $  299,612          $  299,612
 Buildings and improvements           4,506,943           4,506,943
 Furniture and fixtures                 174,029             174,029
                                     ----------          ----------
                                      4,980,584           4,980,584
Less - accumulated depreciation      (3,260,449)         (3,113,769)
                                     ----------          ----------
                                      1,720,135           1,866,815
Cash and cash equivalents                 4,186              12,266
Restricted cash                          86,895              81,478
Accounts receivable                      10,106              12,230
Other assets (net of amortization
 of $34,468 and $33,536)                  7,156               3,007
                                     ----------          ----------
     Total                           $1,828,478          $1,975,796
                                     ==========          ==========

                Liabilities and Partners' Equity

Liabilities:
 Debt obligations                    $5,146,354          $5,146,354
 Accounts payable:
  Trade                                 442,280             394,991
  Related parties                       493,682             509,975
Interest payable                      1,341,314           1,181,241
Tenant security deposits                 49,325              44,740
Other liabilities                         5,897               2,863
                                     ----------          ----------
     Total liabilities                7,478,852           7,280,164
Partners' deficit                    (5,650,374)         (5,304,368)
                                     ----------          ----------
     Total                           $1,828,478          $1,975,796
                                     ==========          ==========

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             Nine months
                         ended September 30,     ended September 30,
                           2002       2001         2002       2001
                           ----       ----         ----       ----

Revenues:
 Rental income          $140,910   $136,178     $426,037    $400,702
 Gain on sale of units         0          0            0      27,811
 Other Income                  0          0            0          90
 Interest income             485        386          961         950
                        --------   --------     --------    --------
  Total revenues         141,395    136,564      426,998     429,553
                        --------   --------     --------    --------

Costs and expenses:
 Rental operations        61,826     54,973      220,912     221,100
 Interest                132,844    127,834      399,655     391,031
 Bad debt expense              0          0        4,825           0
 Depreciation and
  amortization            50,279     59,760      147,612     169,071
                        --------   --------     --------    --------
  Total costs and
   expenses              244,949    242,567      773,004     781,202
                        --------   --------     --------    --------

Loss before
 extraordinary item    ($103,554) ($106,003)   ($346,006)  ($351,649)
Extraordinary gain
 from extinguishment
 of debt                       0          0            0     214,985
                        --------   --------     --------    --------
Net income(loss)       ($103,554) ($106,003)   ($346,006)  ($136,664)
                        ========   ========     ========    ========

Net income (loss) per
 limited partnership
 unit:
 Loss before
  extraordinary item   ($   8.83) ($   9.03)   ($  29.50)  ($  29.98)
 Extraordinary gain            0          0            0       18.33
                        --------   --------     --------    --------
                       ($   8.83) ($   9.03)   ($  29.50)  ($  11.65)
                        ========   ========     ========    ========

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)

                                            Nine months ended
                                              September 30,
                                            2002         2001
                                            ----         ----

Cash flows from operating activities:
 Net Income (loss)                       ($346,006)    $106,132
 Gain on sale of units                           0      (27,811)
 Extraordinary gain on extinguishment
  of debt                                        0     (214,985)
Adjustments to reconcile net loss to
 net cash used in operating activities:
 Depreciation and amortization             147,612      169,072
 Changes in assets and liabilities:
 (Increase) decrease in restricted cash     (5,415)      14,901
 Decrease (increase) in accounts
  receivable                                 2,125       (5,851)
 (Increase) in other assets                 (5,082)           0
 Increase (decrease) in accounts
  payable - trade                           47,288      (28,660)
 (Decrease) increase in accounts
  payable - related parties                (16,293)      27,531
 Increase in interest payable              160,073       24,593
 Increase (decrease) in accrued
  liabilities                                3,033       (5,378)
 Increase in tenant security deposits        4,585        3,282
                                          --------     --------
Net cash (used in) provided by
 operating activities                       (8,080)      62,826
                                          --------     --------
Cash flows from investing activities:
 Proceeds from sale of units                     0       82,163
                                          --------     --------
Net cash provided by investing
 activities                                      0       82,163
                                          --------     --------
Cash flows from financing activities:
 Proceeds from debt financing                    0     (145,752)
                                          --------     --------
Net cash provided by financing
 activities                                      0     (145,752)
                                          --------     --------
Decrease in cash and cash equivalents       (8,080)        (763)
Cash and cash equivalents at beginning
 of period                                  12,266        8,872
                                          --------     --------
Cash and cash equivalents at end of
 period                                   $  4,186     $  8,109
                                          ========     ========

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,  in  the
Registrant's  Annual  Report on Form  10-K  for  the  year  ended
December 31, 2001.

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 a not 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 September 30, 2002.

<PAGE>


                           SIGNATURES

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

Date: June 23, 2003       DIVERSIFIED HISTORIC INVESTORS
      -------------
                           By: Diversified Historic Advisors,
                               General Partner

                                By: EPK, Inc., Partner

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

<PAGE>