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, 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.)

       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, 2000 (unaudited)
        and December 31, 1999
        Consolidated Statements of Operations - Three Months and
        Six Months Ended June 30, 2000 and 1999 (unaudited)
        Consolidated Statements of Cash Flows - Six Months Ended
        June 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

               At   June  30,  2000,  Registrant  had   cash   of
approximately  $7,100.  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, 2000, Registrant had restricted cash
of  $55,065  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 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  2000,  Registrant
recognized net income of $213,721 ($18.23 per limited partnership
unit)  compared to a net income of $303,094 ($25.85  per  limited
partnership unit) for the same period in 1999.  For the first six
months  of  2000,  the Registrant recognized income  of  $282,958
($24.13  per limited partnership unit) compared to a net loss  of
$86,224 ($7.36 per limited partnership unit) for the same  period
in 1999.

              Rental income decreased $718 from $122,578  in  the
second  quarter of 1999 to $121,860 in the same period  in  2000.
The  decrease  resulted  from the sale of  condominium  units  at
Smythe  Stores combined with a decrease in average  occupancy  at
Wistar  Alley  (96% to 93%), partially offset by an  increase  in
rental  income at Third Quarter Apartments due to an increase  in
average occupancy (96% to 98%).

             Rental income decreased $6,876 from $248,582 for the
first six months of 1999 to $241,706 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 rental income at Third Quarter Apartments due  to  an
increase in average occupancy (95% to 99%).

              Expenses for rental operations increased by $44,120
from  $63,082  in the second quarter of 1999 to $107,202  in  the
same  period in 2000.  The increase in rental operations  expense
for  the  second  quarter  of 2000  is  due  to  an  increase  in
maintenance expense at Third Quarter Apartments combined with  an
increase in maintenance and commissions expense at Wistar  Alley.
Maintenance expense increased at Third Quarter Apartments due  to
painting  and plumbing repairs.  The increase in maintenance  and
commissions  expense  at  Wistar  Alley  is  the  result  of  the
preparation  and  leasing of apartment  units  due  to  increased
turnover due to the decrease in occupancy (96% to 93%).

              Expenses for rental operations increased by $52,334
from  $172,040 for the first six months of 1999 to  $224,374  for
the  same  period  in  2000.  The increase in  rental  operations
expense for the first six months of 2000 as compared to the  same
period  in  1999 is due to an increase in maintenance expense  at
Smythe   Stores,  Third  Quarter  Apartments  and  Wistar  Alley,
combined with an increase in commissions expense at Wistar Alley.
Maintenance  expense increased at Smythe Stores as  a  result  of
preparing  for  sale the two condominium units  sold  during  the
first  six  months.  At Third Quarter Apartments, the maintenance
expense  increased  due  to painting and plumbing  repairs.   The
increase  in maintenance and commissions expense at Wistar  Alley
is  the result of the preparation and leasing of apartment  units
due  to increased turnover due to the decrease in occupancy  (96%
to 93%).

              Interest expense decreased $28,611 from $147,352 in
the second quarter of 1999 to $118,741 in the same period in 2000
and  decreased by $78,640 from $305,760 for the first six  months
of 1999 to $227,120 for the same period in 2000.  The decrease in
interest  expense  is  due to the sale of  condominium  units  at
Smythe  Stores, the net proceeds of which were used to  pay  down
the first mortgage.

              Income recognized during the second quarter at  the
Registrant's properties was approximately $240,000,  compared  to
income  of  approximately $329,000 for the same period  in  1999.
For  the  first  six months of 2000, the Registrant's  properties
recognized income of approximately $336,000 compared to income of
approximately $139,000 for the same period in 1999.

             In the second quarter of 2000, Registrant recognized
income  of  $309,000  at  the Smythe Stores  Condominium  complex
including $19,000 of depreciation expense, compared to income  of
$385,000  in  the  second quarter of 1999, including  $18,000  of
depreciation  expense.  Included in income in the second  quarter
of  2000  is  a  gain  of  $100,305 related  to  the  sale  of  a
condominium unit compared to $51,956 for the same period in 1999.
An  extraordinary gain of $293,501 for the second quarter of 2000
compared  to $414,962 for the same period in 1999 was  recognized
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 $83,000 for the second quarter of 2000
compared  to  a loss of $82,000 for the second quarter  of  1999.
The increase in loss during the second quarter is the result of a
decrease  in  rental income partially offset  by  a  decrease  in
interest  expense.  Rental income decreased due to  the  sale  of
condominium units.  The decrease in interest expense  is  due  to
the  sale  of condominium units, the net proceeds of  which  were
used to pay down the first mortgage.

               In  the  first  six  months  of  2000,  Registrant
recognized  income of $507,000 including $38,000 of  depreciation
expense,  compared to income of $294,000 for the same  period  in
1999,  including  $37,000 of depreciation  expense.  Included  in
income  in  the  first six months of 2000 is a gain  of  $139,633
related to the sale of two condominium units compared to  a  gain
of  $51,956 related to the sale of one condominium unit which was
included  in  income  for  the first  six  months  of  1999.   An
extraordinary gain of $504,638 for the first six months  of  2000
compared  to $414,962 for the same period in 1999 was  recognized
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 $135,000 for the first six  months  of
2000  compared to a loss of $173,000 for the same period in 1999.
The  decrease in loss for the first six months is a result  of  a
decrease  in  interest  and condominium  fee  expenses  partially
offset  by  a  decrease  in  rental income  and  an  increase  in
maintenance expense all due to the sale of condominium units.

             In the second quarter of 2000, Registrant incurred a
loss of $35,000 at Third Quarter Apartments, including $18,000 of
depreciation  expense, compared to a loss  of  $36,000  including
$18,000  of depreciation expense in the second quarter  of  1999.
The  decrease in the loss is the result of an increase in  rental
income due to an increase in average occupancy (96% to 98%).  For
the  first  six  months of 2000, Registrant incurred  a  loss  of
$85,000, including $36,000 of depreciation expense, compared to a
loss of $91,000 for the same period of 1999, including $36,000 of
depreciation expense.  The decrease in the loss is the result  of
an  increase  in  rental  income due to an  increase  in  average
occupancy (95% to 99%).

             In the second quarter of 2000, Registrant incurred a
loss   of   $33,000  at  Wistar  Alley,  including   $22,000   of
depreciation  expense, compared to a loss of  $20,000,  including
$22,000  of depreciation expense, in the second quarter of  1999.
For  the first six months of 2000, Registrant incurred a loss  of
$86,000, including $44,000 of depreciation expense, compared to a
loss  of $64,000, including $44,000 of depreciation expense,  for
the  same period in 1999.  The increase in the loss for both  the
second quarter and the first six months is due to an increase  in
maintenance   and  commissions  expense  as  a  result   of   the
preparation  and  leasing of apartment  units  due  to  increased
turnover resulting from a decrease in average occupancy  for  the
first six months of 2000 (96% to 93%).

<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

                   CONSOLIDATED BALANCE SHEETS

                             Assets

                                June 30, 2000    December 31, 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 depreication (2,927,732)      (3,158,976)
                                ----------       ----------
                                 2,202,656        2,386,849

Cash and cash equivalents            7,100           11,813
Restricted cash                     55,065           74,163
Accounts receivable                  7,858           16,969
Other assets(net of
 amortization of $30,510)            6,033            1,623
                                ----------       ----------
     Total                      $2,278,712       $2,491,417
                                ==========       ==========


                Liabilities and Partners' Equity

Liabilities:
Debt obligations                $3,882,467      $4,586,076
Accounts payable:
     Trade                         661,496         596,181
     Related parties               454,610         436,357
Interest payable                 1,975,013       1,863,947
Tenant security deposits            43,683          38,318
Other liabilities                   16,568           8,619
                                ----------      ----------
     Total liabilities           7,033,837       7,529,498

Partners' deficit               (4,755,125)     (5,038,081)
                                ----------      ----------
     Total                      $2,278,712      $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            Six months
                        ended June 30,         ended June 30,
                       2000       1999         2000       1999
                       ----       ----         ----       ----
Revenues:
   Rental income     $121,860   $122,578     $241,706   $248,582
   Gain on sale of
    units             100,305     51,956      139,633     51,956
   Interest income        164        173          919        807
                     --------   --------     --------   --------
  Total revenues      222,329    174,707      382,258    301,345
                     --------   --------     --------   --------
Costs and expenses:
   Rental operations  107,202     63,082      224,374    172,040
   General and
    administrative     17,460     17,460       34,920     34,920
   Interest           118,741    147,352      227,120    305,760
   Depreciation
    and amortization   58,706     58,681      117,524    117,363
                     --------   --------     --------   --------
  Total costs and
   expenses           302,109    286,575      603,938    630,083
                     --------   --------     --------   --------

Loss before
 extraordinary item  ($79,780) ($111,868)   ($221,680) ($328,738)
Extraordinary gain
 from extinguishment
 of debt              293,501    414,962      504,638    414,962
                     --------   --------     --------   --------
Net income           $213,721   $303,094     $282,958   $ 86,224
                     ========   ========     ========   ========

Net income (loss)
 per limited
 partnership unit:
Loss before
 extraordinary item ($   6.80) ($   9.54)   ($  18.90) ($  28.03)
Extraordinary gain      25.03      35.39        43.03      35.39
                     --------   --------     --------   --------
                     $  18.23   $  25.85     $  24.13   $   7.36
                     ========   ========     ========   ========

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)


                                                  Six months ended
                                                      June 30,
                                                 2000         1999
                                                ------       ------
Cash flows from operating activities:
 Net income                                    $282,958     $ 86,224
 Adjustments to reconcile net income
  to net cash (used in) provided
  by operating activities:
 Gain on sale of units                         (139,633)     (51,956)
 Extraordinary gain on extinguishment of debt  (504,638)    (414,962)
 Depreciation and amortization                  117,524      117,363
 Changes in assets and liabilities:
 Decrease in restricted cash                     19,098       15,036
 Decrease in accounts receivable                  9,111        3,742
 Increase in other assets                        (4,410)           0
 Increase in accounts payable - trade            65,314       61,150
 Increase in accounts payable -
  related parties                                18,253       18,253
 Increase in interest payable                   111,064      164,231
 Increase in accrued liabilities                  7,949          531
 Increase in tenant security deposits             5,365          950
                                               --------     --------
Net cash (used in) provided by
 operating activities                           (12,045)         562
                                               --------     --------
Cash flows from investing activities:
 Proceeds from sale of units                    710,941      555,880
                                               --------     --------
Net cash provided by investing activities       710,941      555,880
                                               --------     --------
Cash flows from financing activities:
 Repayment of debt                             (710,941)    (555,880)
 Borrowings under debt obligations                7,332            0
                                               --------     --------
Net cash used in financing activities          (703,609)    (555,880)
                                               --------     --------
(Decrease) increase in cash and cash
 equivalents                                     (4,713)         562
Cash and cash equivalents at
 beginning of period                             11,813       12,884
                                               --------     --------
Cash and cash equivalents at end of period     $  7,100     $ 13,446
                                               ========     ========

The accompaying 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  of  the
Registrant 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.

                   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 June 30, 2000.

<PAGE>

                           SIGNATURES

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

Date: November 20, 2000     DIVERSIFIED HISTORIC INVESTORS
      -----------------
                           By: Diversified Historic Advisors,
                                General Partner

                                By: EPK, Inc., Partner

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

<PAGE>