UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, DC.  20549

                               FORM 10-Q

(Mark One)

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

For the quarterly period ended             June 30, 1999
                               ---------------------------------------
                                  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.)

                 1609 Walnut Street, Philadelphia, PA  19103
----------------------------------------------------------------------
(Address of principal executive offices)              (Zip Code)

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

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

Indicate  by  check  mark whether the Registrant  (1)  has  filed  all
reports  required to be filed by Section 13 or 15(d) of the Securities
Exchange  Act  of  1934 during the preceding 12 months  (or  for  such
shorter period that the Registrant was required to file such reports),
and  (2) has been subject to such filing requirements for the past  90
days.                                      Yes    X        No
<PAGE>
                    PART I - FINANCIAL INFORMATION

Item 1.        Financial Statements.

             Consolidated Balance Sheets - June 30, 1999 (unaudited)
             and December 31, 1998
             Consolidated Statements of Operations - Three Months and
             Six Months Ended June 30, 1999 and 1998 (unaudited)
             Consolidated Statements of Cash Flows - Six Months Ended
             June 30, 1999 and 1998 (unaudited)
             Notes to Consolidated Financial Statements (unaudited)

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

(1)    Liquidity

                      At  June  30,  1999,  Registrant  had  cash   of
approximately  $13,446.   Cash  generated  from  operations  is   used
primarily  to fund operating expenses and debt service.  If cash  flow
proves  to  be insufficient, the Registrant will attempt to  negotiate
with   the  various  lenders  in  order  to  remain  current  on   all
obligations.  The Registrant is not aware of any additional sources of
liquidity.

                     As  of  June 30, 1999, Registrant had  restricted
cash  of  $58,404  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 basically "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.

               (2)  Capital Resources

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

               (3)  Results of Operations

                     During  the  second quarter of  1999,  Registrant
recognized  net  income  of $303,094 ($25.85 per  limited  partnership
unit)  compared  to  a  net  loss  of  $176,022  ($15.01  per  limited
partnership  unit)  for the same period in 1998.  For  the  first  six
months of 1999, the Registrant recognized income of $86,224 ($7.35 per
limited  partnership unit) compared to a net loss of $395,400  ($33.72
per limited partnership unit) for the same period in 1998.

                     Rental  income increased $2,610 from $119,968  in
the  second  quarter of 1998 to $122,578 in the same period  in  1999.
The  increase  resulted from an increase in rental income  due  to  an
increase  in average occupancy at both Third Quarter 92% to  96%)  and
Wistar  Alley  (94% to 95%) and increases in the average rental  rates
partially  offset by a decrease at Smythe Stores due to a decrease  in
the  average  occupancy (96% to 78%) and the sale of  one  condominium
unit.

                     Rental income increased $11,937 from $236,645 for
the  first six months of 1998 to $248,582 for the same period in 1999.
The  increase  resulted from an increase in rental income  due  to  an
increase  in average occupancy at both Third Quarter (91% to 95%)  and
Wistar Alley (94% to 96%) and increases in the average rental rates.

                     Expense for rental operations increased by $1,259
from  $61,823  in the second quarter of 1998 to $63,082  in  the  same
period in 1999 and increased by $8,545 from $163,496 for the first six
months  of 1998 to $172,041 for the same period in 1999. The  increase
in rental operations for both the second quarter of 1999 and the first
six  months of 1999 as compared to the same periods in 1998 is due  to
increases  in  management fees, utilities, and  commissions  at  Third
Quarter  and  an  increase in maintenance expense and  commissions  at
Wistar  Alley due to increases in the average occupancy. The increases
are  partially  offset  by a decrease in maintenance  and  commissions
expense at Smythe Stores due to the sale of the condominium unit.

        Interest expense decreased $11,692 from $159,044 in the second
quarter  of 1998 to $147,352 in the same period in 1999 and  decreased
by  $12,317 from $318,077 for the first six months of 1998 to $305,760
for  the same period in 1999.  The decrease in interest expense is due
to the sale of one condominium unit at Smythe Stores.

       Income recognized during the second quarter at the Registrant's
properties  amounted to $329,000, compared to a loss of  approximately
$150,000  for  the same period in 1998.  For the first six  months  of
1999  the  Registrant's  properties  recognized  a  gain  of  $139,000
compared to a loss approximately $343,000 for the same period in 1998.

                      In   the  second  quarter  of  1999,  Registrant
recognized income of $385,000 at the Smythe Stores Condominium complex
including  $18,000  of depreciation expense, compared  to  a  loss  of
$91,000   in  the  second  quarter  of  1998,  including  $18,000   of
depreciation expense and for the first six months of 1999,  Registrant
recognized income $294,000 including $37,000 of depreciation  expense,
compared  to a loss of $186,000 for the same period in 1998, including
$37,000  of  depreciation expense. Included in income  in  the  second
quarter of 1999 and the first six months of 1999 is a gain of $467,000
related to the sale of a condominium unit.  Overall, exclusive of  the
gain  the  property would have recognized a loss of  $82,000  for  the
second  quarter  of  1999 compared to a loss of $91,000  in  the  same
quarter  of  1998 and a loss of $173,000 for the first six  months  of
1999 compared to a loss of $186,000 for the same period in 1998.   The
decrease  in  the  loss  is  a  result  of  a  decrease  in  interest,
maintenance and commissions expense due to the sale of the condominium
unit.   The decrease for the second quarter is also due to a  decrease
in  the rental income due to a decrease in the average occupancy  (96%
to 78%).

                    In the second quarter of 1999, Registrant incurred
a  loss  of $36,000 at Third Quarter Apartments, including $18,000  of
depreciation expense, compared to a loss of $38,000 including  $18,000
of  depreciation  expense in the second quarter of 1998  and  for  the
first  six  months  of 1999, Registrant incurred a  loss  of  $91,000,
including  $36,000  of depreciation expense, compared  to  a  loss  of
$93,000 for the same period in 1998, including $36,000 of depreciation
expense.  The decrease in the loss for both the second quarter and the
first six months of 1998 to the same periods in 1999 is the result  of
an  increase in rental income due to an increase in occupancy (92%  to
96%)  for the second quarter and (91% to 95%) for the first six months
and  an increase in the average rental rates, partially offset  by  an
overall  increase  in  operating expenses including  management  fees,
utilities, and commissions due to the increase in average occupancy.

                    In the second quarter of 1999, Registrant incurred
a  loss  of $20,000 at Wistar Alley, including $44,000 of depreciation
expense,  compared  to  a  loss  of  $21,000,  including  $22,000   of
depreciation  expense, in the second quarter of 1998.  For  the  first
six  months of 1999, Registrant incurred a loss of $64,000,  including
$44,000  of  depreciation expense, compared  to  a  loss  of  $64,000,
including  $44,000  of depreciation expense, for the  same  period  in
1998.  Although there was no significant change overall, rental income
increased due to an increase in occupancy (94% to 95%) for the  second
quarter  and (94% to 96%) for the first six months and an increase  in
the  average  rental rates. The increase was partially  offset  by  an
increase  in  operating expenses including maintenance and commissions
expense as a result of the increase in occupancy.
<PAGE>

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)

                      CONSOLIDATED BALANCE SHEETS

                                Assets

                                        June 30, 1999         December 31, 1998
                                         (Unaudited)
Rental properties, at cost:
Land                                     $  308,963               $  310,833
Buildings and improvements                5,518,456                5,721,049
Furniture and fixtures                      135,121                  139,377
                                          ---------                ---------
                                          5,962,540                6,171,259
Less - Accumulated depreciation          (3,287,778)              (3,290,172)
                                          ---------                ---------
                                          2,674,762                2,881,087

Cash and cash equivalents                    13,446                   12,884
Restricted cash                              58,404                   73,440
Accounts receivable                          13,039                   16,782
Other  assets  (net of amortization of
$30,510)                                          0                        0
                                          ---------                ---------
       Total                             $2,759,651               $2,984,193
                                          =========                =========

                   Liabilities and Partners' Equity

Liabilities:
Debt obligations                         $5,323,658               $5,879,538
Accounts payable:
       Trade                                568,674                  507,524
       Related parties                      417,801                  399,548
Interest payable                          1,738,029                1,573,798
Tenant security deposits                     44,948                   43,998
Other liabilities                            14,873                   14,343
                                          ---------                ---------
       Total liabilities                  8,107,983                8,418,749
                                          ---------                ---------
Partners' equity                         (5,348,332)              (5,434,556)
                                          ---------                ---------
       Total                             $2,759,651               $2,984,193
                                          =========                =========

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

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)

                 CONSOLIDATED STATEMENTS OF OPERATIONS
   For the Three Months and Six Months Ended June 30, 1999 and 1998
                              (Unaudited)

                                  Three months               Six months
                                 Ended June 30,            Ended June 30,
                               1999        1998           1999         1998

Revenues:
   Rental income            $ 122,578    $ 119,968      $ 248,582    $ 236,645
   Gain on sale of units      466,918            0        466,918            0
   Interest income                173          467            807          707
                              -------      -------        -------      -------
   Total revenues             589,669      120,435        716,307      237,352
                              -------      -------        -------      -------
Costs and expenses:
   Rental operations           63,082       61,823        172,040      163,496
   General and
      Administrative           17,460       17,460         34,920       34,920
   Interest                   147,352      159,044        305,760      318,077
   Depreciation and
      Amortization             58,681       58,130        117,363      116,259
                              -------      -------        -------      -------
   Total costs and
      Expenses                286,575      296,457        630,083      632,752
                              -------      -------        -------      -------
Net income (loss)           $ 303,094   ($ 176,022)     $  86,224   ($ 395,400)
                              =======      =======        =======      =======
Net income (loss) per
limited partnership unit    $   25.85   ($   15.01)     $    7.35   ($   33.72)
                             ========     ========       ========     ========

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

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)

                 CONSOLIDATED STATEMENTS OF CASH FLOWS
            For the Six Months Ended June 30, 1999 and 1998
                              (Unaudited)

                                                         Six months ended
                                                             June 30,
                                                         1999          1998

Cash flows from operating activities:
 Net income (loss)                                      $86,224     ($395,400)
 Gain from sale of unit                                (466,918)            0
 Adjustments to reconcile net loss to net cash
   provided by operating activities:
 Depreciation and amortization                          117,363       116,259
 Changes in assets and liabilities:
 Decrease in restricted cash                             15,036         8,729
 Decrease (increase) in accounts receivable               3,742        (1,856)
 Increase in accounts payable - trade                    61,150        72,222
 Increase in accounts payable - related parties          18,253        18,253
 Increase in interest payable                           164,231       178,768
 Increase in accrued liabilities                            531         2,513
 Increase in tenant security deposits                       950         5,325
                                                        -------       -------
Net cash provided by operating activities                   562         4,813
                                                        -------       -------
Cash flows from investing activities:
 Capital expenditures                                         0             0
                                                        -------       -------
Net cash used in investing activities                         0             0
                                                        -------       -------
Cash flows from financing activities:
 Proceeds from debt financing                                 0           710
                                                        -------       -------
Net cash provided by financing activities                     0           710
                                                        -------       -------
Increase in cash and cash equivalents                       562         5,523

Cash and cash equivalents at beginning of period         12,884           710
                                                        -------       -------
Cash and cash equivalents at end of period            $  13,446      $  6,233
                                                        =======       =======

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, 1998.

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.

                      PART II - OTHER INFORMATION

Item 1.             Legal Proceedings

                To  the best of its knowledge, Registrant is 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  Document
                        Number

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

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

                    (b) Reports on Form 8-K:

                        No  reports  were  filed  on  Form  8-K  during  the
                        quarter       ended       June       30,       1999.
<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: August 25, 1998         DIVERSIFIED HISTORIC INVESTORS
      ---------------
                              By: Diversified Historic Advisors, General Partner

                                  By: EPK, Inc., Partner

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