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, 2000
                               ----------------------------------

                               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, 2000
        (unaudited) and December 31, 1999
        Consolidated Statements of Operations - Three Months and
        Nine Months Ended September 30, 2000 and 1999
        (unaudited)
        Consolidated Statements of Cash Flows - Nine Months
        Ended September 30, 2000 and 1999 (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, 2000, Registrant had cash  of
approximately  $3,864.  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, 2000, Registrant had restricted
cash  of  $65,785 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  2000,  Registrant
incurred a net loss of $281,241 ($23.98 limited partnership unit)
compared   to  a  net  loss  of  $135,695  ($11.57  per   limited
partnership  unit) for the same period in 1999.   For  the  first
nine  months  of 2000, the Registrant recognized  net  income  of
$1,717  ($0.15 per limited partnership unit) compared  to  a  net
loss of $49,470 ($4.21 per limited partnership unit) for the same
period in 1999.

              Rental income increased $1,166 from $122,980 in the
third  quarter  of 1999 to $124,146 in the same period  in  2000.
The increase resulted from an increase at Wistar Alley due to  an
increase  in the average occupancy (91% to 98%) partially  offset
by the sale of two condominium units at Smythe Stores.

             Rental income decreased $5,710 from $371,562 for the
first  nine  months of 1999 to $365,852 for the  same  period  in
2000.   The decrease in rental income is due to the sale  of  two
condominium  units  at  Smythe Stores,  partially  offset  by  an
increase  in  average rental rates at Third  Quarter  and  Wistar
Alley  and an increase in the average occupancy at Third  Quarter
(96% to 98%) and Wistar Alley (94% to 98%).

              Rental operations expense increased by $13,080 from
$48,625  in  the  third quarter of 1999 to $61,705  in  the  same
period  in  2000 and increased by $65,413 from $220,664  for  the
first  nine  months of 1999 to $286,079 for the  same  period  in
2000.  The increase in the expense for both the third quarter and
the  first  nine months of 2000 compared to the same  periods  in
1999  is  due  to  an increase in accounting fees  at  all  three
properties   combined  with  an  increase  in   maintenance   and
management  fees  at  Third Quarter and  Wistar  Alley  partially
offset  by a decrease in condominium fees at Smythe Stores.   The
increase  in accounting fees is due to a change in the  frequency
of billing the fees from an annual basis to a monthly basis.  The
increase  in  maintenance expense is due  to  additional  general
repairs  made at the two properties.  The decrease in condominium
fees is due to the sale of units at Smythe Stores.

             Interest expense increased $133,431 from $134,283 in
the  third quarter of 1999 to $267,714 in the same period in 2000
and increased $54,791 from $440,043 for the first nine months  of
1999  to  $494,834 for the same period in 2000.  The increase  in
interest expense for both the third quarter and first nine months
of  2000 is due to a reclassification during the third quarter of
2000  by  the  mortgage lender at Smythe Stores.   The  principal
balance  previously  written off due to the sale  of  condominium
units  at  Smythe  Stores was reinstated and the  write  off  was
reclassified  to  accrued and unpaid interest in accordance  with
the terms of the mortgage.  The higher principal balance resulted
in higher interest expense on this simple interest mortgage.

              Losses  incurred during the third  quarter  at  the
Registrant's properties were approximately $255,000, compared  to
a  loss  of approximately $109,000 for the same period  in  1999.
For  the  first  nine months of 2000 the Registrant's  properties
recognized income of approximately $81,000 compared to income  of
approximately $31,000 for the same period in 1999.

              In the third quarter of 2000, Registrant incurred a
loss  of  $203,000  at  the  Smythe  Stores  condominium  complex
including $19,000 of depreciation expense, compared to a loss  of
$65,000, including $19,000 of depreciation expense, in the  third
quarter  of 1999.  The increase in the loss for the third quarter
is  a  result of an increase in interest expense combined with  a
decrease in rental income.  The increase in interest expense  for
the third quarter of 2000 is due to a reclassification during the
third  quarter  of 2000 by the mortgage lender at Smythe  Stores.
The  principal balance previously written off due to the sale  of
condominium units at Smythe Stores was reinstated and  the  write
off was reclassified to accrued and unpaid interest in accordance
with  the  terms  of the mortgage.  The higher principal  balance
resulted  in  higher  interest expense on  this  simple  interest
mortgage.  Rental income decreased due to the sale of condominium
units in the second quarter 2000.

              In  the  first  nine  months  of  2000,  Registrant
recognized  income  of  $303,000, including $56,000  depreciation
expense,  compared  to income of $229,000, including  $56,000  of
depreciation expense, for the same period in 1999, at the  Smythe
Stores condominium complex.  Included in income in the first nine
months  of 2000 is a gain of $139,633 related to the sale of  two
condominium  units  compared to $51,956 for the  same  period  in
1999.   An extraordinary gain of $504,638 was recognized for  the
first  nine  months  of 2000 compared to $414,962  for  the  same
period  in 1999 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 recognized a loss of $341,000 for the  first
nine  months of 2000 compared to a loss of $238,000 for the  same
period  in 1999.  The increase in the loss for first nine  months
is  a  result  of an increase in interest expense and  accounting
fees combined with a decrease in rental income.  The increase  in
interest  expense for the first nine months of 2000 is due  to  a
reclassification during the third quarter of 2000 by the mortgage
lender  at  Smythe  Stores.   The  principal  balance  previously
written off due to the sale of condominium units at Smythe Stores
was  reinstated and the write off was reclassified to accrued and
unpaid  interest  in accordance with the terms of  the  mortgage.
The  higher principal balance resulted in higher interest expense
on  this  simple interest mortgage.  The increase  in  accounting
fees is due to a change in the frequency of billing the fees from
an  annual basis to a monthly basis.  Rental income decreased due
to the sale of condominium units in the second quarter 2000.


              In the third quarter of 2000, Registrant incurred a
loss of $31,000 at Third Quarter Apartments, including $18,000 of
depreciation  expense, compared to a loss of  $27,000,  including
$18,000  of depreciation expense, in the third quarter  of  1999.
The  increase in the loss for the third quarter is the result  of
an  increase  in accounting fees, management fees and maintenance
expense partially offset by an increase in rental income.  Rental
income  increased due to an increase in the average rental rates.
The  increase  in  accounting fees is due  to  a  change  in  the
frequency  of billing the fees from an annual basis to a  monthly
basis.   The increase in maintenance expense is due to additional
general repairs made at the property.

              For  the  first  nine  months of  2000,  Registrant
incurred   a  loss  of  $116,000  at  Third  Quarter  Apartments,
including $54,000 of depreciation expense, compared to a loss  of
$118,000, including $54,000 of depreciation expense, for the same
period  in  1999.  The decrease in loss the first nine months  of
2000  to the same period in 1999 is the result of an increase  in
rental income partially offset by an increase in accounting  fees
and  maintenance  expense.  Rental income increased  due  to  the
increase in average occupancy for the first nine months  (96%  to
98%) combined with an increase in the average rental rates.   The
increase  in accounting fees is due to a change in the  frequency
of billing the fees from an annual basis to a monthly basis.  The
increase  in  maintenance expense is due  to  additional  general
repairs made at the property.

              In the third quarter of 2000, Registrant incurred a
loss  of  $20,000, including $22,000 of depreciation expense,  at
Wistar Alley compared to a loss of $17,000, including $22,000  of
depreciation expense, in the third quarter of 1999  and  for  the
first  nine  months  of  2000,  Registrant  incurred  a  loss  of
$106,000, including $66,000 of depreciation expense, compared  to
a  loss of $80,000, including $66,000 of depreciation expense for
the  same  period in 1999. The increase in the loss for both  the
third  quarter and the first nine months of 2000 compared to  the
same  periods in 1999 is the result of an increase in commissions
expense,  accounting fees and maintenance expense  offset  by  an
increase  in rental income.  Rental income increased  due  to  an
increase in the average occupancy for the third quarter  (91%  to
98%) and  for the first nine months (94% to 95%) combined with an
increase in the average rental rates.  The increase in accounting
fees is due to a change in the frequency of billing the fees from
an  annual basis to a monthly basis.  The increase in maintenance
expense  is  due  to  additional  general  repairs  made  at  the
property.

<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

                   CONSOLIDATED BALANCE SHEETS

                             Assets

                              September 30,     December 31,
                                  2000              1999
                                  ----              ----
                               (Unaudited)
Rental properties, at cost:
 Land                        $  301,483        $  305,223
 Buildings and improvements   4,708,084         5,113,269
 Furniture and fixtures         120,821           127,333
                             ----------        ----------
                              5,130,388         5,545,825
 Less - accumulated
  depreciation               (2,986,439)       (3,158,976)
                             ----------        ----------
                              2,143,949         2,386,849
Cash and cash equivalents         3,864            11,813
Restricted cash                  65,785            74,163
Accounts receivable               7,640            16,969
Other assets (net of
 amortization of $30,510)         6,033             1,623
                             ----------        ----------
     Total                   $2,227,271        $2,491,417
                             ==========        ==========

                Liabilities and Partners' Equity

Liabilities:
 Debt obligations            $5,045,411       $4,586,076
 Accounts payable:
  Trade                         677,033          596,181
  Related parties               463,888          436,357
 Interest payable             1,024,145        1,863,947
 Tenant security deposits        42,393           38,318
 Other liabilities               10,765            8,619
                             ----------       ----------
     Total liabilities        7,263,635        7,529,498
Partners' deficit            (5,036,364)      (5,038,081)
                             ----------       ----------
     Total                   $2,227,271       $2,491,417
                             ==========       ==========

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,
                          2000        1999        2000        1999
                          ----        ----        ----        ----
Revenues:
 Rental income         $124,146    $122,980  $  365,852    $371,562
 Gain on sale of units        0           0     139,633      51,956
 Interest income            199         375       1,118       1,182
                       --------    --------  ----------    --------
  Total revenues        124,345     123,355     506,603     424,700
                       --------    --------  ----------    --------
Costs and expenses:
 Rental operations       61,705      48,625     286,079     220,664
 General and
  administrative         17,460      17,460      52,380      52,380
 Interest               267,714     134,283     494,834     440,043
 Depreciation and
  amortization           58,707      58,682     176,231     176,045
                       --------    --------  ----------    --------
  Total costs and
   expenses             405,586     259,050   1,009,524     889,132
                       --------    --------  ----------    --------
Loss before
 extraordinary item   ($281,241)  ($135,695)($  502,921)  ($464,432)
Extraordinary gain
 from extinguishment of
 debt                         0           0     504,638     414,962
                       --------    --------  ----------    --------
Net income(loss)      ($281,241)  ($135,695) $    1,717   ($ 49,470)
                       ========    ========  ==========    ========
Net income (loss) per
 limited partnership
 unit:
Loss before
 extraordinary item   ($  23.98)  ($ 11.57) ($   42.88)   ($  39.60)
Extraordinary gain            0          0       43.03        35.39
                       --------    -------   ---------     --------
                      ($  23.98)  ($ 11.57)  $    0.15    ($   4.21)
                       ========    =======   =========     ========

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,
                                         2000         1999
                                         ----         ----

Cash flows from operating activities:
 Net Income (loss)                     $  1,717    ($  49,470)
 Gain on sale of units                 (139,633)      (51,956)
 Extraordinary gain on extinguishment
  on debt                              (504,638)     (414,962)
Adjustments to reconcile net loss to
 net cash used in operating
 activities:
 Depreciation and amortization          176,231       176,045
 Changes in assets and liabilities:
 Decrease in restricted cash              8,378         3,180
 Decrease in accounts receivable          9,329           909
 Increase in other assets                (4,410)       (1,623)
 Increase in accounts payable - trade    80,851        74,604
 Increase in accounts payable -
  related parties                        27,531        27,531
 Increase in interest payable           318,066       232,398
 Increase (decrease) in accrued
  liabilities                             2,146       (4,728)
 Increase (decrease)in tenant security
  deposits                                4,075         (345)
                                       --------     --------
Net cash used in operating activities   (20,357)      (8,417)
                                       --------     --------
Cash flows from financing activities:
 Proceeds from debt financing            12,408        6,000
                                       --------     --------
 activities                              12,408        6,000
                                       --------     --------
Decrease in cash and cash equivalents    (7,949)      (2,417)
Cash and cash equivalents at
 beginning of period                     11,813       12,884
                                       --------     --------
Cash and cash equivalents at end of
 period                                $  3,864     $ 10,467
                                       ========     ========

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, 1999.

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, 2000.


<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: October 23, 2001     DIVERSIFIED HISTORIC INVESTORS
      ----------------
                           By: Diversified Historic Advisors,
                                General Partner

                               By: EPK, Inc., Partner

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

<PAGE>