UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, DC.  20549

                            FORM 10-Q

(Mark One)

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

For the quarterly period ended          March 31, 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
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       (Address of principal executive offices)   (Zip Code)

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

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

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

<PAGE>
                 PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

        Consolidated Balance Sheets - March 31, 2000 (unaudited)
        and December 31, 1999
        Consolidated Statements of Operations - Three Months
        Ended March 31, 2000 and 1999 (unaudited)
        Consolidated Statements of Cash Flows - Three Months
        Ended March 31, 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   March  31,  2000,  Registrant  had  cash   of
approximately  $5,825.  Cash generated from  operations  is  used
primarily to fund operating expenses and debt service.   If  cash
flow  proves to be insufficient, the Registrant will  attempt  to
negotiate with the various lenders in order to remain current  on
all  obligations.  The Registrant is not aware of any  additional
sources of liquidity.

             As of March 31, 2000, Registrant had restricted cash
of  $42,443  consisting  primarily  of  funds  held  as  security
deposits,  replacement  reserves and escrows  for  taxes.   As  a
consequence of these restrictions as to use, Registrant does  not
deem these funds to be a source of liquidity.

               In  recent  years,  the  Registrant  has  realized
significant losses, including the foreclosure of five  properties
and  a  portion  of  a  sixth property, due  to  the  properties'
inability to generate sufficient cash flow to pay their operating
expenses and debt service.  The Registrant has first mortgages in
place  in  each of its remaining three properties that are  cash-
flow  mortgages,  requiring all available cash after  payment  of
operating  expenses  to  be paid to the  first  mortgage  holder.
Therefore, it is unlikely that any cash will be available to  the
Registrant to pay its general and administrative expenses, to pay
debt service on the past-due subordinate mortgage with respect to
the  Third Quarter or to pay any debt service on the two  accrual
mortgages with respect to Wistar Alley.

             It is the Registrant's intention to continue to hold
the  properties  until they can no longer meet the  debt  service
requirements  (or  with respect to the Third Quarter  and  Wistar
Alley, the lender seeks payment on the past due mortgage) and the
properties  are foreclosed, or the market value of the properties
increases to a point where they can be sold at a price  which  is
sufficient to repay the underlying indebtedness.

              Since  the  lenders have agreed either to  forebear
from  taking any foreclosure action as long as cash flow payments
are  made, to accrue all debt service in lieu of payment, or have
(in the case of Third Quarter) not moved to declare a default for
a  substantial  period of time after the mortgage due  date,  the
Registrant believes it is appropriate to continue presenting  its
financial statements on a going concern basis.


          (2)  Capital Resources

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

          (3)  Results of Operations

               During  the  first  quarter  of  2000,  Registrant
recognized  net income of $69,238 ($5.90 per limited  partnership
unit)  compared  to  a net loss of $216,870 ($18.49  per  limited
partnership unit) for the same period in 1999.

              Rental income decreased $6,158 from $126,004 in the
first  quarter  of 1999 to $119,846 in the same period  in  2000.
The  decrease  resulted from a decrease in rental income  at  the
Smythe  Stores  Condominium  complex,  partially  offset  by   an
increase in rental income at both Third Quarter and Wistar Alley.
Rental  income  decreased at Smythe Stores due  to  the  sale  of
condominium  units.   The  increase in  rental  income  at  Third
Quarter is due to an increase in average occupancy (94% to  100%)
and at Wistar Alley due to an increase in average rental rates.

              Expenses for rental operations increased by  $8,213
from  $108,958  in the first quarter of 1999 to $117,171  in  the
same  period  in 2000.  Expenses for rental operations  increased
due  to  an  increase  in maintenance expense  at  Wistar  Alley,
partially offset by an decrease in maintenance expense at  Smythe
Stores  Condominium  complex. Maintenance  expense  increased  at
Wistar Alley due to painting of apartment units.  The decrease in
maintenance expense at Smythe Stores Condominium complex  is  the
result of the sale of condominium units.

              Interest expense decreased $50,029 from $158,408 in
the first quarter of 1999 to $108,379 in the same period in 2000.
The  decrease is due to the sale of the condominium units at  the
Smythe Stores the net proceeds of which were used to pay down the
first mortgage.

              Income recognized during the first quarter  at  the
Registrant's three properties was approximately $96,000, compared
to a loss of approximately $190,000 for the same period in 1999.

              In the first quarter of 2000, Registrant recognized
a  gain  of  $198,000  at the Smythe Stores  Condominium  complex
including $19,000 of depreciation expense, compared to a loss  of
$91,000  in  the  first  quarter of 1999,  including  $19,000  of
depreciation  expense.  Included in income  in  the  first  three
months  of  2000 is a gain of $39,328 related to the  sale  of  a
condominium  unit and an extraordinary gain of $211,136  for  the
extinguishment  of  debt related to the sale.  The  extraordinary
gain  represents the excess of the debt extinguished by the  sale
of  the condominium unit over the fair market value of the  unit.
Overall,  exclusive  of  the  gains,  the  property  would   have
recognized a loss of $53,000 for the first three months  of  2000
compared  to a loss of $91,000 for the same period in 1999.   The
decrease  in the loss from the first quarter of 1999 to the  same
period  of  2000 is due to a decrease in interest and maintenance
expense   partially  offset  by  a  decrease  in  rental  income.
Interest  expense decreased due to the sale of condominium  units
the  net  proceeds  of  which were used to  pay  down  the  first
mortgage.  The decrease in maintenance expense and rental  income
is the result of the sale of condominium units.

              In the first quarter of 2000, Registrant incurred a
loss of $49,000 at Third Quarter Apartments, including $18,000 of
depreciation  expense, compared to a loss  of  $55,000  including
$18,000  of  depreciation expense in the first quarter  of  1999.
The  decrease in the loss from the first quarter of 1999  to  the
same period in 2000 is the result of an increase in rental income
due to an increase in average occupancy (94% to 100%).

              In the first quarter of 2000, Registrant incurred a
loss   of   $53,000  at  Wistar  Alley,  including   $22,000   of
depreciation  expense, compared to a loss  of  $44,000  including
$22,000  of  depreciation expense in the first quarter  of  1999.
The  increase in the loss from the first quarter of 1999  to  the
same  period in 2000 is due to an increase in maintenance expense
partially  offset  by an increase in rental income.   Maintenance
expense  increased due to the painting of apartment  units.   The
increase in rental income is due to an increase in average rental
rates.

<PAGE>

                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

                   CONSOLIDATED BALANCE SHEETS

                             Assets

                                 March 31, 2000   December 31, 1999
                                 --------------   -----------------
                                   (Unaudited)
Rental properties, at cost:
  Land                            $  303,353        $   305,223
  Buildings and improvements       4,910,677          5,113,269
  Furniture and fixtures             125,077            127,333
                                  ----------        -----------
                                   5,339,107          5,545,825
Less - accumulated depreciation   (3,044,912)        (3,158,976)
                                  ----------         ----------
                                   2,294,195          2,386,849

Cash and cash equivalents              5,825             11,813
Restricted cash                       42,443             74,163
Accounts receivable                    4,941             16,969
Other assets                           6,033              1,623
                                  ----------         ----------
     Total                        $2,353,437         $2,491,417
                                  ==========         ==========


                Liabilities and Partners' Equity

Liabilities:
  Debt obligations                $4,301,775        $4,586,076
  Accounts payable:
    Trade                            614,165           596,181
    Related parties                  445,434           436,357
  Interest payable                 1,914,349         1,863,947
  Accrued liabilities                  6,834             8,619
  Tenant security deposits            39,723            38,318
                                  ----------        ----------
     Total liabilities             7,322,280         7,529,498

Partners' deficit                 (4,968,843)       (5,038,081)
                                  ----------        ----------
     Total                        $2,353,437        $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 ended
                                              March 31,
                                          2000          1999
Revenues:                                ------        ------
  Rental income                         $119,846      $126,004
  Gain on sale                            39,329             0
  Interest income                            755           634
                                        --------      --------
     Total revenues                      159,930       126,638

Costs and expenses:
  Rental operations                      117,171       108,958
  General and administrative              17,460        17,460
  Interest                               108,379       158,408
  Depreciation and amortization           58,818        58,682
                                        --------      --------
     Total costs and expenses            301,828       343,508
                                        --------      --------

Loss before extraordinary item          (141,898)     (216,870)

Extraordinary gain on
 extinguishment  of debt                 211,136             0
                                        --------      --------

Net income (loss)                       $ 69,238     ($216,870)
                                        ========      ========

Net loss per limited partnership unit
  Loss before  extraordinary item        (12.10)        (18.49)
  Extraordinary gain                      18.00              0
                                        -------       --------
                                        $  5.90      ($  18.49)
                                        =======       ========

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

<PAGE>


                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

              CONSOLIDATED STATEMENTS OF CASH FLOWS

                           (Unaudited)

                                                  Three months ended
                                                      March 31,
                                                  2000         1999
                                                 ------       ------
Cash flows from operating activities:
  Net income (loss)                             $ 69,238   ($216,870)
 Adjustments to reconcile net income (loss)
  to net cash used in operating activities:
   Gain on sale of unit                          (39,329)          0
   Extraordinary gain on extinguishment of debt (211,136)          0
   Depreciation and amortization                  58,818      58,682
 Changes in assets and liabilities:
   Decrease in restricted cash                    31,720      29,496
   Decrease (increase) in accounts receivable     12,028        (559)
   Increase in other assets                       (4,410)          0
   Increase in accounts payable - trade           17,984      31,334
   Increase in accounts payable -
    related parties                                9,077       9,076
   Increase in interest payable                   50,402      89,393
   Decrease in accrued liabilities                (1,785)     (5,800)
   Increase in tenant security deposits            1,405       1,225
                                                --------    --------
Net cash used in operating activities             (5,988)     (4,023)
                                                --------    --------
Cash flows from investing activities:
  Proceeds from sale of unit                     284,302           0
                                                --------    --------
Net cash provided by investing activities        284,302           0
                                                --------    --------
Cash flows from financing activities:
  Repayment of debt                             (284,302)          0
                                                --------    --------
Net cash used in financing activities           (284,302)          0
                                                --------    --------
Decrease in cash and cash equivalents             (5,988)     (4,023)
Cash and cash equivalents at
 beginning of period                              11,813      12,884
                                                --------    --------
Cash and cash equivalents at end of period      $  5,825    $  8,861
                                                ========    ========

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

<PAGE>


                 DIVERSIFIED HISTORIC INVESTORS
              (a Pennsylvania limited partnership)

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

The  unaudited  consolidated financial statements of  Diversified
Historic Investors (the "Registrant") and related notes have been
prepared  pursuant to the rules and regulations of the Securities
and  Exchange  Commission.  Accordingly, certain information  and
footnote  disclosures  normally included in financial  statements
prepared   in  accordance  with  generally  accepted   accounting
principles  have  been  omitted  pursuant  to  such   rules   and
regulations.  The accompanying consolidated financial  statements
and  related notes should be read in conjunction with the audited
financial  statements  on  Form 10-K and  notes  thereto  of  the
Registrant for the year ended December 31, 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 March 31, 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 25, 2000        DIVERSIFIED HISTORIC INVESTORS
      ----------------
                              By: Diversified Historic Advisors,
                                  General Partner

                                  By: EPK, Inc., Partner

                                      By: /s/ spencer Wertheimer
                                         ------------------------
                                         SPENCER WERTHEIMER,
                                         President and Treasurer
<PAGE>