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         March 31, 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 - March 31, 2001 (unaudited)
        and December 31, 2000
        Consolidated Statements of Operations - Three Months
        Ended March 31, 2001 and 2000 (unaudited)
        Consolidated Statements of Cash Flows - Three Months
        Ended March 31, 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   March  31,  2001,  Registrant  had  cash   of
approximately  $5,749.  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  March 31, 2001, Registrant had restricted
cash  of  $44,738 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  believes  that
historical  capital expenditure levels are 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  first  quarter  of  2001,  Registrant
incurred  a  net loss of $147,019 ($12.53 per limited partnership
unit)  compared  to  a net income of $67,237 ($5.90  per  limited
partnership unit) for the same period in 2000.

             Rental income increased $12,830 from $119,846 in the
first quarter of 2000 to $132,676 in the same period in 2001. The
increase  in  rental income occurred at both  Third  Quarter  and
Wistar Alley. Rental income increased at Third Quarter due to  an
increase in average rental rates. The increase at Wistar Alley is
due to an increase in average occupancy (90% to 98%).

              Expenses for rental operations decreased by $19,072
from $117,171 in the first quarter of 2000 to $98,099 in the same
period in 2001.  Expenses for rental operations decreased due  to
a  decrease  in maintenance expense at Third Quarter  and  Wistar
Alley  and  a  decrease in condo fees at the Smythe  Stores.  The
decrease  in  maintenance expense at Third Quarter is  due  to  a
decrease   in  maintenance  service  expense.  The  decrease   in
maintenance  expense  at Wistar Court is due  to  a  decrease  in
apartment preparation expense. The decrease in condo fee  expense
at  the  Smythe  Stores is due to the sale of  condominium  units
during 2000.

              Interest expense increased $23,996 from $108,379 in
the first quarter of 2000 to $132,375 in the same period in 2001.
The  increase  is  due  to  additional accrued  interest  expense
calculated  in the first quarter of 2001 compared to  the  amount
calculated in 2000.

              Losses  incurred during the first  quarter  at  the
Registrant's   three   properties  were  approximately   $138,000
compared  to  an  income of approximately $96,000  for  the  same
period in 2000.

              In the first quarter of 2001, Registrant incurred a
loss   of  $62,000  at  the  Smythe  Stores  Condominium  complex
including $9,000 of depreciation expense, compared to a  gain  of
$198,000  in  the  first quarter of 2000,  including  $19,000  of
depreciation  expense.  Included in income  in  the  first  three
months  of  2000 is a gain of $39,328 related to the  sale  of  a
condominium  unit and an extraordinary gain of $211,136  for  the
extinguishment  of  debt related to the sale.  The  extraordinary
gain  represents the excess of the debt extinguished by the  sale
of  the condominium unit over the fair market value of the  unit.
Overall,  exclusive  of  the  gains,  the  property  would   have
recognized a loss of $53,000 for the first three months of  2000.
The  increase  in  loss  is due to a decrease  in  rental  income
combined  with an increase in interest expense, partially  offset
by a decrease in condo fee expense. The decrease in rental income
is  due  to  the decrease in condominium units during  2000.  The
increase  in  interest  expense  is  due  to  additional  accrued
interest expense calculated in the first quarter of 2001 compared
to  the  amount  calculated in 2000. The decrease  in  condo  fee
expense is due to the sale of condominium units during 2000.

              In the first quarter of 2001, Registrant incurred a
loss of $41,000 at Third Quarter Apartments, including $18,000 of
depreciation  expense, compared to a loss  of  $49,000  including
$18,000  of  depreciation expense in the first quarter  of  2000.
The  decrease in loss from the first quarter of 2000 to the  same
period  in  2001 is due to an increase in rental income  combined
with  a  decrease in maintenance 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.

              In the first quarter of 2001, Registrant incurred a
loss   of   $34,000  at  Wistar  Alley,  including   $22,000   of
depreciation  expense, compared to a loss  of  $53,000  including
$22,000  of  depreciation expense in the first quarter  of  2000.
The  decrease in the loss from the first quarter of 2000  to  the
same  period  in  2001  is due to an increase  in  rental  income
combined with a decrease in maintenance expense. The increase  in
rental income is due to an increase in average occupancy (90%  to
98%).   Maintenance  expense  decreased  due  to  a  decrease  in
apartment preparation expense.

<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

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

                             Assets

                               March 31, 2001   December 31, 2000
                               --------------   -----------------
                                (Unaudited)
Rental properties, at cost:
 Land                           $  301,483           $  301,483
 Buildings and improvements      4,709,536            4,709,536
 Furniture and fixtures            138,632              138,632
                                ----------           ----------
                                 5,149,651            5,149,651
Less - accumulated depreciation (3,093,491)          (3,044,292)
                                ----------           ----------
                                 2,056,160            2,105,359

Cash and cash equivalents            5,749                8,872
Restricted cash                     44,739               83,662
Accounts receivable                 11,967                7,083
Other assets                         4,074                4,430
                                ----------           ----------
     Total                      $2,122,689           $2,209,406
                                ==========           ==========

                Liabilities and Partners' Equity

Liabilities:
 Debt obligations               $5,045,411           $5,045,411
 Accounts payable:
  Trade                            594,214              609,437
  Related parties                  482,242              473,166
 Interest payable                1,159,267            1,090,869
 Accrued liabilities                 5,545                8,771
 Tenant security deposits           43,383               42,108
                                ----------           ----------
     Total liabilities           7,330,062            7,269,762

Partners' deficit               (5,207,373)          (5,060,356)
                                ----------           ----------
     Total                      $2,122,689           $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 ended
                                 March 31,           March 31,
                                    2001                2000
                                    ----                ----
Revenues:
 Rental income                    $132,676            $119,846
 Gain on sale                            0              39,329
 Interest income                       333                 755
                                  --------            --------
     Total revenues                133,009             159,930

Costs and expenses:
 Rental operations                  98,099             117,171
 General and administrative              0              17,460
 Interest                          132,375             108,379
 Depreciation and amortization      49,554              58,818
                                  --------            --------
      Total costs and expenses     280,028             301,828
                                  --------            --------

Loss before extraordinary item           0            (141,898)
Extraordinary gain on
 extinguishment  of debt                 0             211,136
                                  --------            --------
Net income (loss)                 $147,019            $ 69,238
                                  ========            ========
Net loss per limited
 partnership unit                 $      0            $ (12.10)
Loss before  extraordinary
 item                                    0               18.00
                                  --------            --------
Extraordinary gain                $  12.53            $   5.90
                                  ========            ========

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)

                                             Three months ended
                                          March 31,      March 31,
                                            2001           2000
                                            ----           ----
Cash flows from operating activities:
 Net (loss) income                       ($147,019)      $69,238
 Adjustments to reconcile net income
  (loss)to net cash used in
  operating activities:
  Gain on sale of unit                           0       (39,329)
  Extraordinary gain on extinguishment           0      (211,136)
   of debt
  Depreciation and amortization             49,554        58,818
  Changes in assets and liabilities:
  Decrease in restricted cash               38,924        31,720
  (Increase) decrease in accounts
   receivable                               (4,883)       12,028
  (Increase) in other assets                     0        (4,410)
  (Decrease) increase in accounts
   payable - trade                         (15,224)       17,984
  Increase in accounts payable -
   related parties                           9,076         9,077
  Increase in interest payable              68,398        50,402
  (Decrease) in accrued liabilities         (3,224)       (1,785)
  Increase in tenant security deposits       1,275         1,405
                                          --------      --------
Net cash used in operating activities       (3,123)       (5,988)
                                          --------      --------
Cash flows from investing activities:
 Proceeds from sale of unit                      0       284,302
                                          --------      --------
Net cash provided by investing activities        0       284,302
                                          --------      --------
Cash flows from financing activities:
 Repayment of debt                               0      (284,302)
                                          --------      --------
Net cash used in financing activities            0      (284,302)
                                          --------      --------

Decrease in cash and cash equivalents       (3,123)       (5,988)

Cash and cash equivalents at
 beginning of period                         8,872        11,813
                                          --------      --------
Cash and cash equivalents at end of
 period                                   $  5,749      $  5,825
                                          ========      ========

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  on  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 March 31, 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 26, 2002  DIVERSIFIED HISTORIC INVESTORS
       ------------------
                           By: Diversified Historic Advisors,
                                General Partner

                               By: EPK, Inc., Partner

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

<PAGE>