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, 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 - September 30, 2001
        (unaudited) and December 31, 2000
        Consolidated Statements of Operations - Three Months and
        Nine Months Ended September 30, 2001 and 2000
        (unaudited)
        Consolidated Statements of Cash Flows - Nine Months
        Ended September 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

              As  of  September 30, 2001, Registrant had cash  of
approximately  $8,109.  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, 2001, Registrant had restricted
cash  of  $68,761 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  2001,  Registrant
incurred  a  net loss of $106,003  ($9.03 per limited partnership
unit)  compared  to  a net loss of $281,241 ($23.98  per  limited
partnership  unit) for the same period in 2000.   For  the  first
nine  months  of  2001, the Registrant incurred  a  net  loss  of
$136,664 ($11.65 per limited partnership unit) compared to a  net
income  of  $1,717 ($0.15 per limited partnership unit)  for  the
same period in 2000.

             Rental income increased $12,032 from $124,146 in the
third quarter of 2000 to $136,178 in the same period in 2001  and
for the first nine months of 2001 increased $34,850 from $365,852
for the first nine months of 2000 to $400,702 for the same period
in  2001. The increase in rental income is due to an increase  in
rental  rates  at  Wister  Alley, Third Quarter  and  the  Smythe
Stores.

              Rental operations expense decreased by $6,732  from
$61,705  in  the  third quarter of 2000 to $54,973  in  the  same
period  in  2001 and decreased by $64,979 from $286,079  for  the
first  nine  months of 2000 to $221,100 for the  same  period  in
2001.  The  decrease in rental operations expense  is  due  to  a
decrease  in maintenance expense at Wister Alley, Third  Quarter,
and  the Smythe Stores. The decrease at Wister Alley is due to  a
decrease in apartment preparation expenses. The decrease at Third
Quarter  is due to a decrease in grounds maintenance and cleaning
service expense, and the decrease at the Smythe Stores is due  to
a  decrease in maintenance service expense and a decrease in HVAC
service and repairs.

             Interest expense decreased $139,880 from $267,714 in
the  third quarter of 2000 to $127,834 in the same period in 2001
and decreased $103,803 from $494,834 for the first nine months of
2000  to  $391,031 for the same period in 2001. The  decrease  in
interest expense for both the third quarter and first nine months
of  2001 is due to a decrease in  principal balance in which  the
interest in calculated. The decrease in principal balance is  due
to the sale of a condominium unit at the Smythe Stores during the
second quarter of 2001.

              Losses  incurred during the third  quarter  at  the
Registrant's properties were approximately $97,000, compared to a
loss of approximately $255,000 for the same period in 2000.   For
the  first  nine  months  of  2001  the  Registrant's  properties
incurred a net loss of approximately $109,000 compared to  income
of approximately $81,000 for the same period in 2000.
           In  the  third quarter of 2001, Registrant incurred  a
loss   of  $64,000  at  the  Smythe  Stores  condominium  complex
including $19,000 of depreciation expense, compared to a loss  of
$203,000, including $19,000 of depreciation expense, in the third
quarter  of 2000.  The decrease in loss for the third quarter  is
due  to an increase in rental income combined with a decrease  in
interest  expense.  The increase in rental income is  due  to  an
increase  in  average  rental rates.  The  decrease  in  interest
expense  is due to a decrease in principal balance in  which  the
interest is calculated. The decrease in principal balance is  due
to the sale of a condominium unit at the Smythe Stores during the
second quarter of 2001.

              In  the  first  nine  months  of  2001,  Registrant
recognized  income of $50,000, including $46,000 of  depreciation
expense,  compared  to income of $303,000, including  $56,000  of
depreciation expense, for the same period in 2000, at the  Smythe
Stores condominium complex.  Included in income in the first nine
months  of  2001 is a gain of $27,811 related to the  sale  of  a
condominium  unit  compared  to $139,633  for  the  sale  of  two
condominium  units for the same period in 2000.  An extraordinary
gain of $214,985 was recognized for the first nine months of 2001
compared  to  $504,638  for  the same  period  in  2000  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 $192,000 for the first nine months of 2001 compared to  a
loss  of  $341,000 for the same period in 2000.  The decrease  in
loss for first nine months 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 rental
rates.  The decrease in maintenance expense is due to a  decrease
in  maintenance service expense and HVAC service and repairs, and
the  decrease  in  interest expense  is  due  to  a  decrease  in
principal balance in which the interest is calculated.


              In the third quarter of 2001, Registrant incurred a
loss  of  $26,000  at  the  Third Quarter  Apartments,  including
$18,000  of depreciation expense, compared to a loss of  $31,000,
including  $18,000 of depreciation expense, in the third  quarter
of  2000 and for the first nine months of 2001 incurred a loss of
$104,000 including 55,000 in depreciation expense, compared to  a
loss of $116,000 including $54,000 in depreciation expense during
2000.  The  decrease in loss for the third quarter and the  first
nine months is due to an increase in rental income and a decrease
in  maintenance  expense,  partially offset  by  an  increase  in
leasing  commission expense. The decrease in maintenance  expense
is  due to a decrease in grounds maintenance and cleaning service
expense. The increase in leasing commission expense is due to the
increase in the turnover of apartment units.

              In the third quarter of 2001, Registrant incurred a
loss  of  $7,000  including $22,000 of depreciation  expense,  at
Wistar Alley compared to a loss of $20,000, including $22,000  of
depreciation expense, in the third quarter of 2000  and  for  the
first nine months of 2001, Registrant incurred a loss of $56,000,
including $67,000 of depreciation expense, compared to a loss  of
$106,000, including $66,000 of depreciation expense for the  same
period  in 2000. The decrease in loss for both the third  quarter
and  the first nine 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. Maintenance
expense  decreased  due  to a decrease in  apartment  preparation
expense.

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

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

                                September 30,    December 31,
                                    2001             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(3,085,740)       (3,044,292)
                               ----------        ----------
                                1,855,191         2,105,359

Cash and cash equivalents           8,109             8,872
Restricted cash                    68,761            83,662
Accounts receivable                12,935             7,083
Other assets (net of
 amortization of
 $33,181 and $32,113)               3,364             4,430
                               ----------        ----------
     Total                     $1,948,360        $2,209,406
                               ==========        ==========

                Liabilities and Partners' Equity

Liabilities:
 Debt obligations              $4,899,659        $5,045,411
 Accounts payable:
  Trade                           580,778           609,437
  Related parties                 500,697           473,166
 Interest payable               1,115,462         1,090,869
 Tenant security deposits          45,390            42,108
 Other liabilities                  3,394             8,771
                               ----------        ----------
     Total liabilities          7,145,380         7,269,762

Partners' deficit              (5,197,020)       (5,060,356)
                               ----------        ----------
     Total                     $1,948,360        $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             Nine months
                         ended September 30,     ended September 30,
                          2001        2000        2001        2000
                          ----        ----        ----        ----
Revenues:
 Rental income          $136,178    $124,146   $400,702  $  365,852
 Gain on sale of
  units                        0           0     27,811     139,633
 Other Income                  0           0         90           0
 Interest income             386         199        950       1,118
                        --------    --------   --------  ----------
  Total revenues         136,564     124,345    429,553     506,603
                        --------    --------   --------  ----------
Costs and expenses:
 Rental operations        54,973      61,705    221,100     286,079
 General and
  administrative               0      17,460          0      52,380
 Interest                127,834     267,714    391,031     494,834
 Depreciation and
  amortization            59,760      58,707    169,071     176,231
                        --------    --------   --------  ----------
  Total costs and
   expenses              242,567     405,586    781,202   1,009,524
                        --------    --------   --------  ----------
Loss before
 extraordinary item     (106,003)   (281,241)  (351,649)   (502,921)
Extraordinary gain
 from extinguishment of
 debt                          0           0    214,985     504,638
                        --------    --------   --------  ----------
Net income(loss)       ($106,003)  ($281,241) ($136,664) $    1,717
                        ========    ========   ========  ==========
Net income (loss) per
 limited partnership
 unit:
 Loss before
  extraordinary item   ($   9.03)  ($  23.98) ($  29.98)($   42.88)
 Extraordinary gain            0           0      18.33      43.03
                        --------    --------   --------  ---------
                       ($   9.03)  ($  23.98) ($  11.65) $    0.15
                        ========    ========   ========  =========

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,
                                             2001     2000
                                             ----     ----

Cash flows from operating activities:
 Net Income (loss)                        $106,132  $  1,717
 Gain on sale of units                     (27,811) (139,633)
 Extraordinary gain on extinguishment
  on debt                                 (214,985) (504,638)
 Adjustments to reconcile net loss to
  net cash used in operating
  activities:
  Depreciation and amortization            169,072   176,231
  Changes in assets and liabilities:
  Decrease in restricted cash               14,901     8,378
  (Increase) decrease in accounts
   receivable                               (5,851)    9,329
  Increase in other assets                       0    (4,410)
  (Decrease) increase in accounts
   payable - trade                         (28,660)   80,851
  Increase in accounts payable -
   related parties                          27,531    27,531
  Increase in interest payable              24,593   318,066
  (Decrease) increase in accrued
   liabilities                              (5,378)    2,146
  Increase (decrease)in tenant security
   deposits                                  3,282     4,075
                                          --------  --------
Net cash (used in) provided by
 operating activities                       62,826   (20,357)
                                          --------  --------
Cash flows from investing activities:
 Proceeds from sale of units                82,163         0
                                          --------  --------
Net cash provided by investing
 activities                                 82,163         0
                                          --------  --------
Cash flows from financing activities:
 Proceeds from debt financing             (145,752)   12,408
                                          --------  --------
Net cash provided by financing activites  (145,752)   12,408
                                          --------  --------
Decrease in cash and cash equivalents         (763)   (7,949)
Cash and cash equivalents at
 beginning of period                         8,872    11,813
                                          --------  --------
Cash and cash equivalents at end of
 period                                   $  8,109  $  3,864
                                          ========  ========

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, 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 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, 2001.

<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: 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>