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 June 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 unit data)

                                  June 30, 2001


<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  392
   Receivables and deposits                                                     108
   Other assets                                                                 109
   Investment property:
     Land                                                     $ 621
     Buildings and related personal property                   9,856
                                                              10,477
     Less accumulated depreciation                            (5,577)         4,900
                                                                            $ 5,509
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 28
   Tenant security deposit liabilities                                          101
   Accrued property taxes                                                       388
   Other liabilities                                                             74
   Mortgage note payable                                                      5,415

Partners' Deficit
   General partner                                            $ (144)
   Limited partners (15,698 units issued and
     outstanding)                                               (353)          (497)
                                                                            $ 5,509


                   See Accompanying Notes to Financial Statements
</TABLE>


<PAGE>

b)

                  HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                          (in thousands, except unit data)
<TABLE>
<CAPTION>



                                     Three Months Ended           Six Months Ended
                                          June 30,                    June 30,
                                     2001          2000          2001          2000
Revenues:
<S>                                  <C>          <C>           <C>            <C>
  Rental income                      $ 371        $ 386         $ 826          $ 848
  Other income                           70           59           110             95
       Total revenues                   441          445           936            943

Expenses:
  Operating                             151          170           291            278
  General and administrative             50           85           115            151
  Depreciation                          135          141           271            279
  Interest                              110           --           222             --
  Property taxes                         54           67           120            134
       Total expenses                   500          463         1,019            842

       Net (loss) income             $ (59)       $ (18)        $ (83)         $ 101

Net (loss) income allocated
  to general partner (2%)            $ (2)         $ --          $ (2)          $ 2
Net (loss) income allocated
  to limited partners (98%)             (57)         (18)          (81)            99
                                     $ (59)       $ (18)        $ (83)         $ 101

Net (loss) income per limited
  partnership unit                  $ (3.63)     $ (1.15)      $ (5.16)       $ 6.31
Distributions per limited
  partnership unit                  $ 8.15       $ 34.33       $ 44.40        $141.80

                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>


c)

                  HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (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 six months
   ended June 30, 2001                    --           (2)         (81)         (83)

Partners' deficit
   at June 30, 2001                   15,698       $ (144)      $ (353)      $ (497)


                   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>

                                                                  Six Months Ended
                                                                        June 30,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net (loss) income                                              $ (83)       $ 101
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
     Depreciation                                                   271          279
     Amortization of loan costs                                       2           --
     Change in accounts:
      Receivables and deposits                                       31          211
      Other assets                                                  (10)         (26)
      Due from affiliate                                             57           --
      Accounts payable                                               23          (89)
      Tenant security deposit liabilities                           (23)         (16)
      Accrued property taxes                                       (123)         135
      Other liabilities                                            (126)         (51)
        Net cash provided by operating activities                    19          544

Cash flows used in investing activities:
  Property improvements and replacements                            (22)         (25)

Cash flows used in financing activities:
  Distributions to partners                                        (700)      (2,250)
  Payments on mortgage note payable                                 (57)          --
        Net cash used in financing activities                      (757)      (2,250)

Net decrease in cash and cash equivalents                          (760)      (1,731)

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

Cash and cash equivalents at end of period                       $ 392        $ 465

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $ 220        $ --

                   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 six month
periods ended June 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 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.

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
six months ended June 30, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 51      $ 50
 Asset management fees (included in general and
   administrative expenses)                                         50        71
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             36        21

Affiliates of the Managing  General Partner were entitled to receive 5% of gross
receipts  from the  Registrant's  property  for  providing  property  management
services.  The  Registrant  paid to such  affiliates  approximately  $51,000 and
$50,000 for the six months ended June 30, 2001 and 2000, respectively.

An affiliate of the Managing  General Partner  received  reimbursement  of asset
management  fees  amounting  to  approximately  $50,000  and $71,000 for the six
months ended June 30, 2001 and 2000, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $36,000 and
$21,000 for the six months ended June 30, 2001 and 2000, respectively.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates owned 5,052 limited partnership units (the
"Units") in the Partnership  representing  32.18% of the outstanding units as of
June 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. 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 six months ended June 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 proceeds from the financing of Lewis Park Apartments
in August 2000 ($34.84 per limited partnership unit).

During the six months ended June 30,  2000,  the  Partnership  declared and paid
distributions  of  approximately  $2,250,000  (approximately  $2,226,000  to the
limited  partners  or  $141.80  per  limited  partnership  unit)  consisting  of
approximately  $1,177,000 of cash from operations  (approximately  $1,153,000 to
the limited partners or $73.45 per limited  partnership  unit) and approximately
$1,073,000 to the limited partners from the sale of Highland  Professional Tower
($68.35 per limited partnership unit).

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 six
months ended June 30, 2001 and 2000 was 78% and 86%, 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  $83,000  for the six
months ended June 30, 2001 compared to net income of approximately  $101,000 for
the six months ended June 30, 2000. The decrease in net income was  attributable
to a slight 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 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 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 offset by decreases in contract  labor.  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.

The Partnership  recognized a net loss of approximately  $59,000 and $18,000 for
the three months ended June 30, 2001 and 2000, respectively. The increase in net
loss was  attributable to a slight 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.  Total expenses
increased  due to an  increase  in  interest  expense  offset by a  decrease  in
operating,  property  tax and  general  and  administrative  expenses.  Interest
expense  increased due to the financing of Lewis Park Apartments in August 2000.
Operating expense  decreased due to a decrease in maintenance  expense resulting
from a decrease  in contract  labor at the  Partnership's  investment  property.
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  expense at both June 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 June 30, 2001, the Partnership had cash and cash equivalents of approximately
$392,000 as compared to  approximately  $465,000 at June 30, 2000. Cash and cash
equivalents  decreased  approximately  $760,000 from  December 31, 2000,  due to
approximately  $757,000  and  $22,000 of cash used in  financing  and  investing
activities,  respectively,  slightly  offset by  approximately  $19,000  of cash
provided by operating activities. 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  six  months  ended  June  30,  2001,  the   Partnership   completed
approximately   $22,000  of  capital  improvements  at  Lewis  Park  Apartments,
consisting primarily of flooring and appliance replacements.  These improvements
were funded from operating cash flow. The Partnership has budgeted approximately
$65,000  for  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.

The 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 $5,415,000 is being amortized over 20 years with a
maturity date of September 1, 2020.

During the six months ended June 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 proceeds from the financing of Lewis Park Apartments
in August 2000 ($34.84 per limited partnership unit).

During the six months ended June 30,  2000,  the  Partnership  declared and paid
distributions  of  approximately  $2,250,000  (approximately  $2,226,000  to the
limited  partners  or  $141.80  per  limited  partnership  unit)  consisting  of
approximately  $1,177,000 of cash from operations  (approximately  $1,153,000 to
the limited partners or $73.45 per limited  partnership  unit) and approximately
$1,073,000 to the limited partners from the sale of Highland  Professional Tower
($68.35 per limited partnership unit). The Partnership's  distribution policy is
reviewed on a quarterly  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 a property sale. 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 5,052 limited partnership units (the
"Units") in the Partnership  representing  32.18% of the outstanding units as of
June 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. 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 June 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: