FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                     THE SECURITIES EXCHANGE ACT OF 1934
                        Quarterly or Transitional Report



                   U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

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

              For the quarterly period ended September 30, 2001


[ ]   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 0-14578


                HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP
       (Exact name of small business issuer as specified in its charter)



         Massachusetts                                      04-2825863
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                       55 Beattie Place, P.O. Box 1089
                       Greenville, South Carolina 29602
                   (Address of principal executive offices)

                                 (864) 239-1000
                           (Issuer's telephone number)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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

a)

               HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                                  BALANCE SHEET
                                   (Unaudited)
                     (in thousands, except per unit data)

                               September 30, 2001

<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 242
   Receivables and deposits                                                     140
   Other assets                                                                 102
   Investment property:
     Land                                                     $ 621
     Buildings and related personal property                   9,904
                                                              10,525
     Less accumulated depreciation                            (5,709)         4,816
                                                                            $ 5,300
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 21
   Tenant security deposit liabilities                                          126
   Accrued property taxes                                                       317
   Other liabilities                                                            114
   Mortgage note payable                                                      5,385

Partners' Deficit
   General partner                                            $ (147)
   Limited partners (15,698 units issued and
     outstanding)                                               (516)          (663)
                                                                            $ 5,300


                See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

b)

               HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                     (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                     Three Months Ended          Nine Months Ended
                                       September 30,               September 30,
                                     2001          2000          2001          2000
Revenues:
<S>                                  <C>          <C>          <C>            <C>
  Rental income                      $ 342        $ 400        $ 1,168        $ 1,248
  Other income                           58           46           168            141
       Total revenues                   400          446         1,336          1,389

Expenses:
  Operating                             232          177           523            455
  General and administrative             39           82           154            233
  Depreciation                          132          133           403            412
  Interest                              110           40           332             40
  Property taxes                         53           67           173            201
       Total expenses                   566          499         1,585          1,341

       Net (loss) income            $ (166)       $ (53)        $ (249)        $ 48

Net (loss) income allocated
  to general partner (2%)            $ (3)         $ (1)         $ (5)          $ 1
Net (loss) income allocated
  to limited partners (98%)            (163)         (52)         (244)            47
                                    $ (166)       $ (53)        $ (249)        $ 48

Net (loss) income per limited
  partnership unit                  $(10.38)     $ (3.31)      $(15.54)       $ 2.99
Distributions per limited
  partnership unit                   $ --        $337.88       $ 44.40        $479.68

                See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

c)

               HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                  STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                       (in thousands, except unit data)


<TABLE>
<CAPTION>

                                     Limited
                                   Partnership    General      Limited
                                      Units       Partner      Partners      Total

<S>                                   <C>           <C>        <C>          <C>
Original capital contributions        15,698        $ --       $15,698      $15,698

Partners' (deficit) capital at
   December 31, 2000                  15,698       $ (139)      $ 425        $ 286

Distributions paid to partners            --           (3)        (697)        (700)

Net loss for the nine months
   ended September 30, 2001               --           (5)        (244)        (249)

Partners' deficit at
   September 30, 2001                 15,698       $ (147)      $ (516)      $ (663)


                See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

d)

               HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                (in thousands)

<TABLE>
<CAPTION>

                                                                  Nine Months Ended
                                                                    September 30,
                                                                  2001         2000
Cash flows from operating activities:
<S>                                                              <C>           <C>
  Net (loss) income                                              $ (249)       $ 48
  Adjustments to reconcile net (loss) income to net cash
   (used in )provided by operating activities:
     Depreciation                                                    403          412
     Amortization of loan costs                                        3            1
     Change in accounts:
      Receivables and deposits                                        (1)         191
      Other assets                                                    (4)         (43)
      Due from affiliate                                              57           --
      Accounts payable                                                16          (93)
      Tenant security deposit liabilities                              2            5
      Accrued property taxes                                        (194)         202
      Other liabilities                                              (86)          28
        Net cash (used in) provided by operating activities          (53)         751

Cash flows used in investing activities:
  Property improvements and replacements                             (70)         (79)

Cash flows from financing activities:
  Loan costs paid                                                     --          (85)
  Proceeds from mortgage note payable                                 --        5,500
  Distributions to partners                                         (700)      (7,562)
  Payments on mortgage note payable                                  (87)          --
        Net cash used in financing activities                       (787)      (2,147)

Net decrease in cash and cash equivalents                           (910)      (1,475)

Cash and cash equivalents at beginning of period                   1,152        2,196

Cash and cash equivalents at end of period                        $ 242        $ 721

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 329        $ --

                See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

e)
               HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note A - Basis of Presentation

The accompanying  unaudited financial statements of HCW Pension Real Estate Fund
Limited  Partnership (the  "Partnership" or "Registrant")  have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Item  310(b)  of
Regulation  S-B.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  The general  partner of the  Partnership  is HCW General
Partner  Ltd.,  whose sole general  partner is IH, Inc. (the  "Managing  General
Partner").  In the opinion of the  Managing  General  Partner,  all  adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation have been included.  Operating results for the three and nine month
periods ended September 30, 2001, are not necessarily  indicative of the results
that may be expected for the fiscal year ending  December 31, 2001.  For further
information, refer to the financial statements and footnotes thereto included in
the  Partnership's  Annual  Report on Form  10-KSB  for the  fiscal  year  ended
December 31, 2000.  The  Managing  General  Partner is an affiliate of Apartment
Investment  and  Management  Company  ("AIMCO"),  a publicly  traded real estate
investment trust.

Segment Reporting

Statement of Financial  Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also established  standards for related disclosures about products and services,
geographic  areas,  and  major  customers.  As  defined  in SFAS  No.  131,  the
Partnership  has only one  reportable  segment.  The  Managing  General  Partner
believes that  segment-based  disclosures  will not result in a more  meaningful
presentation than the financial statements as currently presented.

Reclassifications

Certain  of the 2000  balances  have been  reclassified  to  conform to the 2001
presentation.

Note B - Transactions with Affiliated Parties

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The  Partnership  Agreement  provides  for (i) certain
payments to affiliates for services and (ii)  reimbursement  of certain expenses
incurred by affiliates on behalf of the Partnership.  The following transactions
with the Managing General Partner and/or its affiliates were incurred during the
nine months ended September 30, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 69      $ 70
 Asset management fees (included in general and
   administrative expenses)                                         65       107
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             61        48

Affiliates of the Managing  General  Partner are entitled to receive 5% of gross
receipts  from the  Registrant's  property  for  providing  property  management
services.  The  Registrant  paid to such  affiliates  approximately  $69,000 and
$70,000 for the nine months ended September 30, 2001 and 2000, respectively.

An  affiliate  of  the  Managing  General  Partner  received  payment  of  asset
management  fees  amounting to  approximately  $65,000 and $107,000 for the nine
months ended September 30, 2001 and 2000, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $61,000 and
$48,000 for the nine months ended September 30, 2001 and 2000, respectively.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates owned 5,202 limited partnership units (the
"Units") in the Partnership  representing  33.14% of the outstanding units as of
September  30,  2001. A number of these units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will make one or more additional offers to acquire additional limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the operating  partnership of AIMCO. In this regard,  on August 29, 2001,  AIMCO
Properties, LP, commenced a tender offer to acquire any and all of the Units not
owned by affiliates of AIMCO for a purchase  price of $82 per Unit.  Pursuant to
this offer AIMCO acquired 150 Units during the quarter ended September 30, 2001.
Under the Partnership Agreement, unitholders holding a majority of the Units are
entitled  to take  action  with  respect to a variety of  matters,  which  would
include  without  limitation,  voting on certain  amendments to the  Partnership
Agreement  and voting to remove the  Managing  General  Partner.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable  to the  interest  of the  Managing  General  Partner  because  of its
affiliation with the Managing General Partner.

Note C - Distributions

During the nine months ended  September 30, 2001, the  Partnership  declared and
paid  distributions of  approximately  $700,000  (approximately  $697,000 to the
limited  partners  or  $44.40  per  limited   partnership  unit)  consisting  of
approximately  $153,000 of cash from operations  (approximately  $150,000 to the
limited  partners  or $9.56 per  limited  partnership  unit)  and  approximately
$547,000 to the limited  partners from the remaining  undistributed  proceeds of
the  financing  of Lewis Park  Apartments  in August  2000  ($34.84  per limited
partnership unit).

During the nine months ended  September 30, 2000, the  Partnership  declared and
paid distributions of approximately $7,562,000  (approximately $7,530,000 to the
limited  partners  or  $479.68  per  limited  partnership  unit)  consisting  of
approximately  $1,622,000 of cash from operations  (approximately  $1,590,000 to
the limited  partners or $101.29 per limited  partnership  unit),  approximately
$1,073,000 to the limited partners from the sale of Highland  Professional Tower
in  December  1999  ($68.35  per  limited  partnership  unit) and  approximately
$4,867,000  to the limited  partners from the proceeds of the financing of Lewis
Park Apartments in August 2000 ($310.04 per limited partnership unit).

Note D - Financing

On August 30,  2000,  the  Partnership  financed  Lewis Park  Apartments  with a
mortgage of $5,500,000.  The interest rate on the mortgage is 8.08% with monthly
payments of approximately  $46,000. The mortgage matures on September 1, 2020 at
which time the debt will be fully amortized. Capitalized loan costs incurred for
the financing were approximately $85,000.

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the  Registrant's  business and results of  operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operation.  Accordingly,  actual  results  could  differ  materially  from those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

The Partnership's  investment property consists of one apartment complex located
in  Carbondale,  Illinois.  The average  occupancy  of the property for the nine
months  ended  September  30, 2001 and 2000 was 74% and 79%,  respectively.  The
Managing   General   Partner   attributes  the  decrease  in  occupancy  to  the
restructuring of the property's leases and the cyclical and unpredictable nature
of student housing during the summer months.

Results of Operations

The  Partnership  recognized a net loss of  approximately  $249,000 for the nine
months ended September 30, 2001 compared to net income of approximately  $48,000
for the nine months ended September 30, 2000. The  Partnership  recognized a net
loss of approximately  $166,000 and $53,000 for the three months ended September
30, 2001 and 2000, respectively.  The decrease in net income was attributable to
a decrease in total revenues and an increase in total expenses.

Total revenues  decreased due to a decrease in rental income  primarily due to a
decrease in  occupancy at the  Partnership's  investment  property  offset by an
increase in the average  rental rate.  This decrease was partially  offset by an
increase in other income due to increases in cable and student  housing  income.
Total  expenses  increased due to increases in operating  and interest  expenses
offset by a decrease in property  tax and general and  administrative  expenses.
Operating  expenses  increased  due  to an  increase  in  advertising  expenses,
employee  related  costs  at  the  Partnership's  investment  property  and  the
collection of receivables in 2000 that were previously  deemed  uncollectible at
Highlands  Professional  Park which was sold in December 1999.  Interest expense
increased due to the financing of Lewis Park Apartments in August 2000. Property
tax expense decreased due to the timing of the receipt of the property tax bills
from the taxing authorities.

General  and  administrative  expenses  decreased  due to a  decrease  in  asset
management fees paid to the Managing General Partner pursuant to the Partnership
Agreement. Included in general and administrative expenses at both September 30,
2001 and 2000 are  management  reimbursements  to the Managing  General  Partner
allowed under the Partnership Agreement. In addition,  costs associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit required by the Partnership Agreement are also included.

As part of the ongoing  business plan of the  Partnership,  the Managing General
Partner  monitors the rental market  environment of its  investment  property to
assess the feasibility of increasing rents,  maintaining or increasing occupancy
levels and protecting the Registrant from increases in expenses. As part of this
plan, the Managing  General Partner attempts to protect the Partnership from the
burden of  inflation-related  increases  in  expenses  by  increasing  rents and
maintaining a high overall  occupancy  level.  However,  due to changing  market
conditions  which  can  result  in the  use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At  September  30,  2001,  the  Partnership  had cash and  cash  equivalents  of
approximately  $242,000 as compared to  approximately  $721,000 at September 30,
2000. Cash and cash equivalents decreased  approximately  $910,000 from December
31, 2000,  due to  approximately  $787,000,  $70,000 and $53,000 of cash used in
financing,  investing  and  operating  activities,  respectively.  Cash  used in
financing  activities  consisted of distributions paid to the partners and, to a
lesser  extent,  principal  payments  on the  mortgage  encumbering  Lewis  Park
Apartments. Cash used in investing activities consisted of property improvements
and  replacements.  The  Partnership  invests  its working  capital  reserves in
interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership and to comply with Federal,  state,
and local legal and regulatory requirements.

During the nine months ended  September  30,  2001,  the  Partnership  completed
approximately   $70,000  of  capital  improvements  at  Lewis  Park  Apartments,
consisting   primarily  of  flooring,   appliance  and  air  conditioning   unit
replacements.  These  improvements  were funded from  operating  cash flow.  The
Partnership  budgeted  approximately  $74,000 of capital  improvements for 2001,
consisting primarily of air conditioning unit, cabinet,  appliance, and flooring
replacements.  Additional  improvements may be considered and will depend on the
physical condition of the property as well as anticipated cash flow generated by
the property.

Additional capital  expenditures will be incurred only if cash is available from
operations  or from  Partnership  reserves.  To the  extent  that such  budgeted
capital improvements are completed,  the Partnership's  distributable cash flow,
if any, may be adversely affected at least in the short term.

The Registrant's  current assets are thought to be sufficient for any short term
needs  exclusive  of  capital  improvements  of the  Partnership.  The  mortgage
indebtedness of approximately $5,385,000 is being amortized over 20 years with a
maturity  date of  September  1,  2020 at  which  time  the  debt  will be fully
amortized.

During the nine months ended  September 30, 2001, the  Partnership  declared and
paid  distributions of  approximately  $700,000  (approximately  $697,000 to the
limited  partners  or  $44.40  per  limited   partnership  unit)  consisting  of
approximately  $153,000 of cash from operations  (approximately  $150,000 to the
limited  partners  or $9.56 per  limited  partnership  unit)  and  approximately
$547,000 to the limited  partners from the remaining  undistributed  proceeds of
the  financing  of Lewis Park  Apartments  in August  2000  ($34.84  per limited
partnership  unit).  During  the nine  months  ended  September  30,  2000,  the
Partnership   declared  and  paid  distributions  of  approximately   $7,562,000
(approximately  $7,530,000  to the  limited  partners  or  $479.68  per  limited
partnership unit) consisting of approximately $1,622,000 of cash from operations
(approximately  $1,590,000  to the  limited  partners  or  $101.29  per  limited
partnership  unit),  approximately  $1,073,000 to the limited  partners from the
sale of  Highland  Professional  Tower in  December  1999  ($68.35  per  limited
partnership unit) and approximately  $4,867,000 to the limited partners from the
proceeds of the  financing of Lewis Park  Apartments in August 2000 ($310.04 per
limited partnership unit). The Partnership's  distribution policy is reviewed on
a monthly basis. Future cash distributions will depend on the levels of net cash
generated from operations,  the availability of cash reserves, and the timing of
the debt  maturity,  refinancing  and/or sale of the  property.  There can be no
assurance that the Partnership  will generate  sufficient  funds from operations
after  planned  capital  improvement   expenditures  to  permit  any  additional
distributions  to its  partners  during  the  remainder  of 2001  or  subsequent
periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates owned 5,202 limited partnership units (the
"Units") in the Partnership  representing  33.14% of the outstanding units as of
September  30,  2001. A number of these units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will make one or more additional offers to acquire additional limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the operating  partnership of AIMCO. In this regard,  on August 29, 2001,  AIMCO
Properties, LP, commenced a tender offer to acquire any and all of the Units not
owned by affiliates of AIMCO for a purchase  price of $82 per Unit.  Pursuant to
this offer AIMCO acquired 150 Units during the quarter ended September 30, 2001.
Under the Partnership Agreement, unitholders holding a majority of the Units are
entitled  to take  action  with  respect to a variety of  matters,  which  would
include  without  limitation,  voting on certain  amendments to the  Partnership
Agreement  and voting to remove the  Managing  General  Partner.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable  to the  interest  of the  Managing  General  Partner  because  of its
affiliation with the Managing General Partner.



<PAGE>


                           PART II - OTHER INFORMATION


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  None.

            b)    Reports on Form 8-K filed during the quarter  ended  September
                  30, 2001:

                  None.


<PAGE>


                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                    HCW  PENSION   REAL  ESTATE  FUND  LIMITED
                                   PARTNERSHIP


                                    By:   HCW General Partner, Ltd.,
                                          General Partner


                                    By:   IH, Inc.,
                                          Managing General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President


                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President
                                          and Controller


                                    Date: