SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-K

              (Mark One)


           [X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended
                December 31, 2002

                                       OR

           [ ]  TRANSITION  REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934
                For the transition period from ________ to ________.

                                     0-17412
                            (Commission File Number)

                               Secured Income L.P.
      (Exact name of registrant as specified in its governing instruments)

               Delaware                                          06-1185846
--------------------------------------------                 -------------------
(State or other jurisdiction of organization)                 (I.R.S. Employer
                                                             Identification No.)

Wilder Richman Resources Corporation
599 W. Putnam Avenue
Greenwich, Connecticut                                              06830
---------------------------------------                          -----------
(Address of principal executive offices)                          (Zip Code)

Registrant's telephone number, including area code:             (203) 869-0900

Securities registered pursuant to Section 12(b) of the Act:

        None
---------------------
(Title of each Class)

Securities registered pursuant to Section 12(g) of the Act:


                     Units of Limited Partnership Interest
                     -------------------------------------
                                (Title of Class)

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____
                                     ----

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in a definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. X
          ---

The aggregate sales price of the units of limited partnership interest held by
non-affiliates of the Registrant is $19,687,380. There is currently no public
market for the units of limited partnership interest and, accordingly, such
figure does not represent the market value for the units.

Documents incorporated by reference:

The Prospectus of the Registrant, dated March 5, 1987 as supplemented and filed
pursuant to Rule 424(b) and (c) under the Securities Act of 1933, is
incorporated by reference into Parts I, II and III of this Annual Report on Form
10-K.

<PAGE>

                                     PART I

Item 1   Business


General Development of Business

Registrant (also referred to as the "Partnership") is a limited partnership
which was formed under the Delaware Revised Uniform Limited Partnership Act on
October 10, 1986. The general partners of the Partnership (the "General
Partners") are Wilder Richman Resources Corporation, a Delaware corporation,
Real Estate Equity Partners L.P., a Delaware limited partnership and WRC-87A
Corporation, a Delaware corporation.

The Partnership was organized to invest in multi-family residential housing
complexes (the "Complexes") by acquiring approximately 99% of the limited
partnership interest (the "Operating Partnership Interest") in limited
partnerships that own and operate such Complexes (the "Operating Partnerships").
WRC-87A Corporation is a special limited partner of each Operating Partnership
and has certain rights in connection therewith. Pursuant to Rule 12b-23 of the
Securities and Exchange Commission's General Rules and Regulations promulgated
under the Securities Exchange Act of 1934, as amended, the description of
Registrant's business set forth under the heading "Investment Objectives and
Policies" at pages 20 through 30 of the prospectus, dated March 5, 1987, (the
"Prospectus") is incorporated herein by reference.

Pursuant to Registrant's Prospectus, as supplemented on October 2, 1987,
December 15, 1987 and March 29, 1988, Registrant offered up to $50 million of
units of limited partnership interest in Registrant (the "Units") at an offering
price of $20 per Unit. The Units were registered under the Securities Act of
1933 pursuant to a Registration Statement on Form S-11 (Registration No.
33-9602).

Registrant terminated the offering of Units (the "Offering") on February 29,
1988 upon raising sufficient capital from the sale of Units to fund the
acquisition of the two properties specified for investment by Registrant. The
Offering raised $19,687,380 from the sale of 984,369 Units. After payment of
$1,378,117 of selling commissions and $1,378,116 of organization and offering
expenses and acquisition fees, the net proceeds available for investment were
$16,931,147. Of such net proceeds, $16,734,273 was allocated to the acquisition
of investments in the Operating Partnerships (the "Operating Partnership
Interests") which included investments in guaranteed investment contracts. The
remaining net proceeds of $196,874 were designated as working capital to be used
for operating expenses of Registrant.

Competition

Information regarding competition, general risks, tax risks and partnership
risks is set forth under the heading "Risk Factors" at pages 37 through 48 of
the Prospectus, which is incorporated herein by reference.

Compliance with Environmental Protection Provisions

Registrant is not aware of any non-compliance by the Operating Partnerships with
respect to federal, state and local provisions regulating the discharge of
material into the environment or otherwise relating to the protection of the
environment, and is not aware of any condition that would have a material effect
on the capital expenditures or competitive position of Registrant.

Employees of Registrant

Registrant employs no personnel and incurs no payroll costs. An affiliate of
Wilder Richman Resources Corporation employs individuals who perform accounting,
secretarial, transfer and other services on behalf of Registrant as are
necessary in the ordinary course of business. Such individuals also perform
similar services for other affiliates of Wilder Richman Resources Corporation.


                                       3

<PAGE>

Tax Reform Act of 1986, Revenue Act of 1987, Technical and Miscellaneous Revenue
Act of 1988, Omnibus Budget Reconciliation Act of 1989, Omnibus Budget
Reconciliation Act of 1990, Tax Extension Act of 1991, Omnibus Budget
Reconciliation Act of 1993, Uruguay Round Agreements Act, Tax and Trade Relief
Extension Act of 1998, Tax and Trade Relief Extension Act of 1999, Community
Renewal Tax Relief Act of 2000, Economic Growth and Tax Relief Reconciliation
Act of 2001 and Job Creation and Worker Assistance Act of 2002 (collectively the
"Tax Acts")

Registrant is organized as a limited partnership and is a "pass through" tax
entity which does not, itself, pay federal income tax. However, the partners of
Registrant who are subject to federal income tax may be affected by the Tax
Acts. Registrant will consider the effect of certain aspects of the Tax Acts on
the partners when making decisions regarding its investments. Registrant does
not anticipate that the Tax Acts will currently have a material adverse impact
on Registrant's business operations, capital resources and plans or liquidity.


Item 2   Properties

The following table sets forth information regarding the Complexes owned by the
Operating Partnerships as of December 31, 2002.
                                                         Number of
         Property                  Location            Dwelling Units
         --------                  --------            --------------

         Fieldpointe Apartments    Frederick, MD             252
         The Westmont              New York, NY              163

Fieldpointe Apartments, which is owned by Carrollton X Associates Limited
Partnership (the "Carrollton Partnership"), is comprised of 252 apartment units
totaling approximately 235,000 square feet with approximately 500 parking
spaces. On-site amenities include a clubhouse building with locker room and
on-site management office, a swimming pool and two tennis courts. The apartments
feature numerous amenities, including dishwashers, disposals and fireplaces.

Registrant acquired its interest as a limited partner in the Carrollton
Partnership by making a capital contribution of $3,121,995. Of this amount,
$1,373,039 was invested in guaranteed investment contracts and $1,748,956 was
contributed upon the Partnership's acquisition of the Operating Partnership
Interest, including the amount due upon the achievement of sustaining rental
revenue.

The mortgage financing of the Carrollton Partnership was financed from the sale
of tax-exempt bonds pursuant to the terms of Section 103(b)(4)(a) of the
Internal Revenue Code. The mortgage in the original amount of $10,494,100,
bearing fixed 6.09% interest and maturing in February 2028, is insured by the
United States Department of Housing and Urban Development ("HUD") under Section
221(d)(4) of the National Housing Act, as amended. Under the terms of the
financing, 80% of the units are permitted market rate rents and 20% of the units
are to be rented to people earning no more than the low or moderate income
levels within the meaning of Section 103(b)(4)(a) of the Internal Revenue Code.
The Fieldpointe Apartments occupancy rate was approximately 93% as of December
31, 2002.

The Westmont, which is owned by Columbia Westmont Associates, L.P., formerly
Columbia Associates (the "Columbia Partnership"), contains 163 apartment units,
9,415 square feet of commercial space, 46 garage parking spaces, and a penthouse
with an exercise center and health club which offers exercise equipment, steam
room, sauna, jacuzzi and a large terrace. The apartments feature numerous luxury
amenities, including security systems, microwave ovens, dishwashers and hardwood
floors.

Registrant acquired its interest as a limited partner in the Columbia
Partnership by making a capital contribution of $12,571,634. Of this amount,
$6,651,323 was invested in guaranteed investment contracts (which had a value of
$5,610,679, including net accrued interest of $18,918, at the time of the
acquisition as a result of principal amortization from the dates of purchase of
such guaranteed investment contracts to the closing of the Columbia Partnership
acquisition), $5,921,104 was contributed upon Registrant's acquisition of the
Operating Partnership Interest in the Columbia Partnership and $1,039,851 was
contributed to the Columbia Partnership upon the achievement of sustaining
rental revenue.


                                       4

<PAGE>

The Columbia Partnership's mortgages were refinanced on June 7, 2000. The first
mortgage, in the amount of $24.2 million, is subject to interest based on a
variable low floater index with credit enhancement provided by the Federal Home
Loan Mortgage Corporation ("Freddie Mac") and matures in July 2030. The second
mortgage, in the amount of $8.55 million and payable to Freddie Mac, is subject
to fixed interest at 8.07% and matures in July 2015. Under the terms of the
refinancing, 20% of the residential units in The Westmont will be maintained for
occupancy by low or moderate income tenants through July 2004. The Westmont's
occupancy rate as of December 31, 2002 was approximately 99% as to residential
dwelling units and 100% as to commercial space.

As of December 31, 2002, the market rental rates of the Complexes were
approximately as follows:

                                  Fieldpointe             The
                                   Apartments           Westmont
                                  -----------           --------

     Monthly Rental Rates:
        Studio                                       $1,889 - $2,350
        One-Bedroom               $740 - $770        $1,786 - $3,579
        Two-Bedroom                $815 - 895        $2,706 - $4,647
        Three-Bedroom             $995 - $1,045      $4,050 - $4,971

The low and moderate income rental rates as of December 31, 2002 for Fieldpointe
Apartments fall within the ranges noted above. Such rates for The Westmont range
from $705 to $1,062.

Further information regarding the Complexes and Registrant's interest therein is
set forth under the heading Specified Investments at pages 30 through 36 of the
Prospectus, and in the supplements to the Prospectus dated October 2, 1987 and
March 29, 1988.

Item 3   Legal Proceedings

Registrant is not aware of any material legal proceedings.


Item 4   Submission of Matters to a Vote of Security Holders

None.



                                       5

<PAGE>

                                     PART II

Item 5   Market for Registrant's Common Equity and Related Unit Matters

Market

There is no developed public market for the purchase and sale of Units and
Registrant does not anticipate that such a market will develop.

Holders

As of December 31, 2002, there were approximately 855 record holders of Units
(the "Limited Partners") holding an aggregate of 984,369 Units in the
Partnership.

Distributions

The Agreement of Limited Partnership of Registrant (the "Partnership Agreement")
provides that all Cash Available for Distribution (as defined therein) be
distributed quarterly to the partners in specified proportions. As part of the
June 2000 restructuring of the Columbia Partnership's financing, the Columbia
Partnership distributed approximately $9,104,000 to the Partnership. The
Partnership made a distribution in July 2000 of approximately $8,219,000,
representing $8.35 per Unit, to Unit holders of record as of June 30, 2000.
Including a distribution made to the Unit holders in March 2003, the Partnership
has made eight consecutive quarterly distributions totaling $3,149,981,
representing approximately $1.60 per Unit for each of the years ended December
31, 2002 and 2001. Prior to the mortgage restructuring, the Columbia Partnership
was prohibited from distributing cash flow from operations. See Item 7 herein,
Management's Discussion and Analysis of Financial Condition and Results of
Operations, for further discussion.


Item 6   Selected Financial Data

The following table summarizes certain selected consolidated financial
information concerning Registrant and should be read in conjunction with the
consolidated financial statements and the related notes thereto:

<TABLE>
<CAPTION>

                                                             Year Ended December 31,
                                                             -----------------------

                                       2002              2001               2000               1999              1998
                                   ------------      ------------      -------------       ------------      ------------

<S>                                <C>               <C>               <C>                 <C>               <C>
Total revenue                      $  8,437,933      $  8,446,311      $  8,138,955        $  7,501,288      $  7,078,399

Net earnings (loss)                   1,109,393         1,070,991          (167,210)*           121,017          (216,504)

Net earnings (loss) allocated
  per unit of limited
  partnership interest                      .78              --                --                  --                --

At year end:

  Total assets                       30,984,345        32,940,557        34,099,609          36,803,602        38,958,954

  Mortgages payable                  41,365,120        41,833,655        42,321,643          33,479,624        33,973,813
</TABLE>


*Includes extraordinary loss of $509,899 in connection with the write-off of
unamortized mortgage costs. See Item 7 herein, Management's Discussion and
Analysis of Financial Condition and Results of Operations.


                                       6

<PAGE>

Item 7      Management's Discussion and Analysis of Financial Condition and
            Results of Operations

Liquidity and Capital Resources

The Partnership's primary sources of funds are rents generated by the Operating
Partnerships and interest derived from investments and deposits, certain of
which are restricted in accordance with the terms of the mortgages of the
Operating Partnerships. The Partnership's investments are highly illiquid.

The Partnership is not expected to have access to additional sources of
financing. Accordingly, if unforeseen contingencies arise that cause an
Operating Partnership to require capital in addition to that contributed by the
Partnership and any equity of the Operating General Partners, potential sources
from which such capital needs will be able to be satisfied (other than reserves)
would be additional equity contributions of the Operating General Partners or
other equity reserves, if any, which could adversely affect the distribution
from the Operating Partnerships to the Partnership of operating cash flow and
any sale or refinancing proceeds.

Although the Partnership generated cash from operations during the year ended
December 31, 2002, cash and cash equivalents decreased by approximately
$562,000, primarily as a result of the Columbia Partnership's distribution to
its general partners of 2001 cash flows in excess of the 8% preferred return
under the terms of the Columbia Partnership's partnership agreement. Mortgages
payable decreased due to principal amortization of approximately $469,000.
Property and equipment decreased by approximately $1,495,000 due to depreciation
of approximately $1,511,000, partially offset by capital improvements of
approximately $16,000, while intangible assets decreased by approximately
$118,000 due to amortization. Property and equipment and intangible assets are
expected to decrease annually as the cost of these assets is allocated to future
periods over their remaining estimated service lives. Prepaid expenses and
accounts payable and accrued expenses increased in the ordinary course of
operations. Due to related parties decreased primarily as a result of the
payment of accrued investor services fees and the Carrollton Partnership's
utilization of 2001 cash flow to pay amounts owed as of December 31, 2001.

The Partnership made quarterly distributions to the limited partners in May,
August and November 2002 and in March 2003 totaling $1,574,990, resulting
primarily from operating cash flow generated by the Operating Partnerships. Such
distributions represent an annualized return to the limited partners of
approximately 8% for the year ended December 31, 2002. The Partnership intends
to make quarterly distributions on an ongoing basis, subject to the operating
results of the Operating Partnerships; the Operating Partnerships' results from
operations is highly contingent upon the interest rates of the Columbia
Partnership's low-floater mortgage and the strength of their respective rental
markets. There can be no assurance that the Operating Partnerships will continue
to generate cash flow sufficient to make quarterly distributions or that future
distributions will be in any specific amounts. The events of September 11, 2001
have increased the risk that the operations of the Properties may be adversely
impacted as a result of the effect of these events on the economy in general and
because the Properties are located in New York City and near Washington, D.C.

Results of Operations

Year Ended December 31, 2002

During 2002, the Columbia Partnership and the Carrollton Partnership generated
income from operating activities, before financial expenses, of approximately
$3,400,000 and approximately $1,262,000, respectively. Mortgage principal
payments during 2002 for the Columbia Partnership and the Carrollton Partnership
were approximately $315,000 and approximately $154,000, respectively. After
considering the respective mandatory mortgage principal payments and required
deposits to restricted reserves, among other things, the Complexes generated
combined cash flow of approximately $2,265,000 during 2002. However, there can
be no assurance that the level of cash flow generated by the Complexes in 2002
will continue in future years.

Results of operations for the year ended December 31, 2002 are comparable to the
year ended December 31, 2001. Rental revenue was flat in 2002 as compared to
2001, primarily as a result of excessive residential vacancies experienced by
the Columbia Partnership resulting from lease expirations in July and August of
2002, many of which were not renewed. The events of September 11, 2001 and the
resulting impact on the Manhattan economy have led to an increase in vacancies
and a decrease in average rent escalations upon lease renewals as compared to
the prior year, as well as an increase in concessions. Columbia management
reports that aggressive marketing strategies (which include rental concessions)
continue to be employed in an effort to maintain high occupancy levels;
management further reports that there were only 2 vacant units as of December
31, 2002.

                                       7
<PAGE>

Financial expenses decreased primarily as a result of a decrease in the weighted
average interest rate on the Columbia Partnership's first mortgage from
approximately 2.67% in 2001 to approximately 1.56% in 2002.

As of December 31, 2002, the occupancy of Fieldpointe Apartments was
approximately 93% and the occupancy of The Westmont was approximately 99% as to
residential units and 100% as to commercial space. The future operating results
of the Complexes will be extremely dependent on market conditions and therefore
may be subject to significant volatility.

Year Ended December 31, 2001

During 2001, the Columbia Partnership and the Carrollton Partnership generated
income from operating activities, before financial expenses, of approximately
$3,730,000 and approximately $1,203,000, respectively. Mortgage principal
payments during 2001 for the Columbia Partnership and the Carrollton Partnership
were approximately $344,000 and approximately $144,000, respectively. After
considering the respective mandatory mortgage principal payments and required
deposits to restricted reserves, among other things, the Complexes generated
combined cash flow of approximately $2,144,000 during 2001.

Results of operations improved in 2001 as compared to 2000. Financial expenses
decreased primarily as a result of a decrease in the weighted average interest
rate on the Columbia Partnership's first mortgage from approximately 3.95% in
2000 to approximately 2.67% in 2001. The write-off of unamortized financing
costs of $509,899 in connection with the refinancing of the Columbia
Partnership's mortgages (the "Refinancing") occurred in 2000. As of December 31,
2001, the occupancy of Fieldpointe Apartments was approximately 97% and the
occupancy of The Westmont was approximately 98% as to residential units and 100%
as to commercial space.

Year Ended December 31, 2000

During 2000, the Columbia Partnership and the Carrollton Partnership generated
income from operating activities, before financial expenses, of approximately
$3,560,000 and approximately $1,049,000, respectively. Mortgage principal
payments during 2000 for the Columbia Partnership and the Carrollton Partnership
were approximately $271,000 and approximately $136,000, respectively. Deposits
to the lender required escrows during 2000, prior to the Refinancing, were
approximately $498,000. Pursuant to the terms of the Columbia Partnership's
prior mortgages, the prior lender was entitled to a credit enhancement fee of
2.5% per annum based on the outstanding loan balance. During 2000, the Columbia
Partnership incurred $270,242 in connection with such fee prior to the
Refinancing. After considering the respective mandatory mortgage principal
payments, required deposits to mortgage escrows and payments for the credit
enhancement fee, among other things, the Complexes generated combined cash flow
of approximately $995,000 during 2000.

Results of operations improved in 2000 as compared to 1999, with the exception
of the write-off of unamortized financing costs of $509,899 in connection with
the Refinancing, which charge had no impact on Registrant's cash flow. The
weighted average interest rate on the Columbia Partnership's first mortgage was
approximately 3.95% in 2000 and the mortgages payable increased as a result of
the Refinancing. Operating and maintenance expenses were higher during the year
ended December 31, 2000 primarily due to scheduled maintenance. As of December
31, 2000, the occupancy of Fieldpointe Apartments was approximately 96% and the
occupancy of The Westmont was approximately 99% as to residential units and 100%
as to commercial space.

Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America, which requires Registrant to
make certain estimates and assumptions. A summary of significant accounting
policies is provided in Note 1 to the consolidated financial statements. The
following section is a summary of certain aspects of those accounting policies
that may require subjective or complex judgments and are most important to the
portrayal of Registrant's financial condition and results of operations.
Registrant believes that there is a low probability that the use of different
estimates or assumptions in making these judgments would result in materially
different amounts being reported in the consolidated financial statements.

Registrant records its real estate assets at cost less accumulated depreciation
and, if there are indications that impairment exists, adjusts the carrying value
of those assets in accordance with Statement of Financial Accounting Standards
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets."

                                       8

<PAGE>

Recent Accounting Pronouncements Not Yet Adopted

In November 2002, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others" ("FIN 45").
FIN 45 requires that upon issuance of a guarantee, a guarantor must recognize a
liability for the fair value of an obligation assumed under a guarantee. FIN 45
also requires additional disclosures by a guarantor in its interim and annual
financial statements about the obligations associated with guarantees issued.
The recognition provisions of FIN 45 are effective for any guarantees issued or
modified after December 31, 2002. The disclosure requirements are effective for
financial statements of interim or annual periods ending after December 15,
2002. The adoption of FIN45 is not expected to have a material effect on
Registrant's financial position, results of operations or cash flows.

In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation of
Variable Interest Entities, an Interpretation of ARB No. 51" ("FIN 46"). FIN 46
addresses the consolidation by business enterprises of variable interest
entities as defined. FIN 46 applies immediately to variable interests in
variable interest entities created after January 31, 2003. For public
enterprises with a variable interest entity created before February 1, 2003, FIN
46 applies to that enterprise no later than the beginning of the first interim
or annual reporting period beginning after June 15, 2003. The adoption of FIN 46
is not expected to have a material effect on Registrant's financial position,
results of operations or cash flows.

Item 7A     Quantitative and Qualitative Disclosures about Market Risk

The Partnership has market risk sensitivity with regard to financial instruments
concerning potential interest rate fluctuations in connection with the low
floater rates associated with the Columbia Partnership's first mortgage.
Accordingly, a fluctuation in the low-floater interest rates of .25% would have
a $60,500 annualized impact on the Partnership's results of operations.

Item 8      Financial Statements and Supplementary Data

Set forth in the financial statements listed on page F-2 is the financial
information required in response to Item 8. Such financial statements and
schedules appear on pages F-1 to F-17 and are incorporated herein by reference.


Item 9      Changes in and  Disagreements  with Accountants on Accounting and
Financial Disclosure

None.



                                       9

<PAGE>

                                    PART III

Item 10     Directors and Executive Officers of the Registrant

The Partnership has no directors or executive officers.

The General Partners are Wilder Richman Resources Corporation, a Delaware
corporation (the "WRC General Partner"), Real Estate Equity Partners L.P., a
Delaware limited partnership and an affiliate of Apartment Investment and
Management Company (the "AIMCO General Partner") and WRC-87A Corporation, a
Delaware corporation (the "A/WRC General Partner"). The A/WRC General Partner is
currently one-half owned by Real Estate Equity Partners Inc., the corporate
general partner of the AIMCO General Partner, and one-half owned by the
shareholders of the WRC General Partner.


                             The WRC General Partner

The directors and certain officers of the WRC General Partner are set forth
below:


      Name                       Age          Office
      ----                       ---          ------

      Richard Paul Richman        55          President and Director

      Robert H. Wilder, Jr.       57          Executive Vice President and
                                              Director

Each of such directors and officers has served in such capacity since the
company's formation.

Richard Paul Richman is President and Director of the WRC General Partner. Mr.
Richman graduated from the Columbia University Law School with a Juris Doctor
degree, the Columbia University Graduate School of Business Administration with
a Master of Business Administration degree and Syracuse University with a
Bachelor of Arts degree in Political Science. Mr. Richman has over ten years of
extensive experience in both the development and management of residential
properties. From 1973 until 1979, Mr. Richman practiced corporate law in New
York City with the law firm of Greenbaum, Wolff & Ernst and then as a partner of
Shipley, Richman & Nierenberg. For over six years, Mr. Richman acted as a lawyer
in connection with the development, syndication and tax issues relating to real
estate. Since 1988, Mr. Richman has been the President and majority stockholder
of The Richman Group, Inc. In recent years, Mr. Richman has devoted full time to
the syndication and development of real estate. Mr. Richman was a vice president
and shareholder of Related Housing Companies Incorporated, New York, New York
from 1978 until mid-1979 with responsibility for that company's project
acquisition and syndication activities. Mr. Richman has been a member of the
National Advisory Board of the Housing and Development Reporter, a bi-weekly
publication of the Bureau of National Affairs, Inc., a frequent speaker on real
estate syndication, has been a member of the New York State Historic Credit Task
Force, the National Leased Housing Association, the Coalition to Preserve the
Low-Income Tax Credit and the Minority Developer Assistance Corporation (which
was established by the New York State Battery Park Commission).

Robert H. Wilder, Jr. is Executive Vice President and Director of the WRC
General Partner. Mr. Wilder graduated from the University of Michigan with a
Bachelor of Arts degree in Economics and from the Columbia University Graduate
School of Business with a Master of Business Administration degree. After
graduation in 1968, Mr. Wilder joined James D. Landauer Associates, Inc., a
national real estate consulting firm, where his responsibilities included
feasibility studies, market analyses, land use studies, portfolio valuations and
appraisals of industrial, office, commercial and multi-family properties. From
1973 until mid-1979, Mr. Wilder was executive vice president and shareholder of
Related Housing Companies Incorporated, New York, New York, and was responsible
for mortgage financing and construction loan placement and the supervision of
the development of the company's projects. Since 1988, Mr. Wilder has been the
President and sole shareholder of Wilder Property Companies Inc. Mr. Wilder is
also a licensed real estate broker in New York and Connecticut.


                                       10
<PAGE>

                            The AIMCO General Partner

Certain officers of Real Estate Equity Partners Inc. are set forth below.


      Name                  Age     Office
      ----                  ---     ------

      Terry Considine       55      Chairman of the Board of Directors & Chief
                                    Executive Officer

      Peter K. Kompaniez    58      Vice Chairman of the Board of Directors &
                                    President

Terry Considine has been Chairman of the Board of Directors and Chief Executive
Officer of AIMCO since July 1994. Mr. Considine graduated with a Juris Doctor
degree from Harvard University in 1971 and with a Bachelor of Arts degree, also
from Harvard University, in 1968. Mr. Considine serves as Chairman and director
of American Land Lease, Inc. (formerly Asset Investors Corporation and
Commercial Assets, Inc.), a public real estate investment trust. Mr. Considine
has been and remains involved as a principal in a variety of other business
activities.

Peter K. Kompaniez has been Vice Chairman of the Board of Directors of AIMCO
since July 1994 and was appointed President in July 1997. Mr. Kompaniez
graduated from Yale University with a Bachelor of Arts degree in 1966 and from
the University of California with a Juris Doctor degree in 1969. Mr. Kompaniez
has also served as Chief Operating Officer of NHP Incorporated, which was
acquired by AIMCO in December 1997. From 1986 to 1993, he served as President
and Chief Executive Officer of Heron Financial Corporation ("HFC"), a United
States holding company for Heron International N.V.'s real estate and related
assets. While at HFC, Mr. Kompaniez administered the acquisition, development
and disposition of approximately 8,150 apartment units (including 6,217 units
that have been acquired by AIMCO) and 3.1 million square feet of commercial real
estate.


                            The A/WRC General Partner

The directors and officers of the A/WRC General Partner are as follows:

      Name                          Office
      ----                          ------

      Terry Considine               President and Director

      Richard Paul Richman          Executive Vice President, Secretary,
                                      Treasurer and Director

Mr. Considine's biography is included above under the AIMCO General Partner. Mr.
Richman's biography is included above under the WRC General Partner.


Item 11     Executive Compensation

The Partnership is not required to pay the officers, directors or partners of
the General Partners any direct compensation and no such compensation was paid
during the fiscal year ended December 31, 2002.



                                       11

<PAGE>

Item 12     Security Ownership of Certain Beneficial Owners and Management

     a) As of December 31, 2002, no person or entity, other than the General
Partners discussed below, was known by the Partnership to be the beneficial
owner of more than five percent of the Units.

     b) Security ownership by the General Partners is as follows:

                                                   Amount and
                                                    Nature of      Percentage of
                                                    General         Outstanding
                         Name of Beneficial         Beneficial       Partners'
  Title of Class               Owner                Ownership        Interest*
  --------------         ------------------        -----------     -------------

   General              Real Estate Equity            $3.33             33.3%
   Partners'              Partners L.P.
   Interest in
   Secured Income L.P.  Wilder Richman                $3.33             33.3%
                          Resources Corporation

                        WRC-87A Corporation           $3.34             33.4%

  *General Partners as a class have a 1% interest in all profits, losses and
   distributions of the Partnership.

     West Putnam Housing Partners II LLC, an affiliate of Wilder Richman
Resources Corporation, WRC 87-A Corporation and certain of the Carrollton and
Columbia Operating General Partners, owns 186,217 Units, representing
approximately 18.9% of the outstanding Units of limited partnership interest. In
addition, West Putnam Housing Partners LLC, the sole managing member of West
Putnam Housing Partners II LLC, owns 41,711 Units, or approximately 4.2% of the
outstanding Units.

     Affiliates of Real Estate Equity Partners L.P. own 162,564 Units,
representing approximately 16.5% of the outstanding Units.

     c) Registrant knows of no arrangements that may, at a subsequent date,
result in a change of control of Registrant. Article VI of the Partnership
Agreement describes the circumstances under which changes in General Partners
can occur.

     d) There is no family relationship between any of the foregoing directors
and executive officers.

     e) Involvement in certain legal proceedings with respect to the foregoing
directors and executive officers: None.


Item 13     Certain Relationships and Related Transactions with Management

The General Partners and their affiliates are entitled to receive certain
compensation, fees and reimbursements of expenses. The Partnership incurred
investor services fees in the amount of $98,737 payable to an affiliate of the
General Partners for the year ended December 31, 2002. Information regarding
such compensation is set forth under the heading "Compensation And Fees To
General Partners And Affiliates" at pages 13 through 19 of the Prospectus, which
is incorporated herein by reference.

The financial interests in Registrant of the General Partners and Special
Limited Partner are set forth under the heading "Profits, Losses and
Distributions" at pages 64 through 67 of the Prospectus, which is incorporated
herein by reference.

The taxable income generated by Registrant during the year ended December 31,
2002 allocated to each of the General Partners was approximately $4,500.



                                       12

<PAGE>

Transactions with Affiliates of Management

WRMC, Inc. ("WRMC"), an affiliate of certain General Partners, was the managing
agent of Fieldpointe Apartments in 2002. In connection with these services, WRMC
earned management and reporting fees of $110,024 in 2002.

LaMere Associates, Inc. ("LaMere"), an affiliate of certain General Partners,
was paid premiums in connection with certain insurance coverage provided to
Fieldpointe Apartments in 2002. In connection with such insurance coverage,
Carrollton incurred $65,392 in premiums for the year ended December 31, 2002.

Indebtedness of Management

No officer or director of the General Partners or any affiliate of the foregoing
was indebted to Registrant at any time during the fiscal year ended December 31,
2002.

Item 14     Controls and Procedures

   Evaluation of Disclosure Controls and Procedures

a.   Within the 90 days prior to the date of this report, Registrant's Chief
     Executive Officer and Chief Financial Officer carried out an evaluation of
     the effectiveness of Registrant's "disclosure controls and procedures" as
     defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and
     15(d)-14(c)). Based on that evaluation, Registrant's Chief Executive
     Officer and Principal Financial Officer have concluded that as of the date
     of the evaluation, Registrant's disclosure controls and procedures were
     adequate and effective in timely alerting them to material information
     relating to Registrant required to be included in Registrant's periodic SEC
     filings.

   Changes in Internal Controls

b.   There were no significant changes in Registrant's internal controls or in
     other factors that could significantly affect Registrant's internal
     controls subsequent to the date of that evaluation.



                                       13

<PAGE>

                                     PART IV

Item 15    Exhibits, Financial Statement Schedules, and Reports on form 8-K

(a)  1     Financial  Statements - The list of Financial Statements appears on
           page F-2.

     2     Schedules - All schedules are omitted because the required
           information is inapplicable or it is presented in the consolidated
           financial statements or the notes thereto.

     3     Exhibits:
           --------

     3(A)  Form of Amended and Restated Agreement of Limited Partnership of
           Secured Income L.P., incorporated by reference to Exhibit A to the
           Prospectus contained in the Partnership's Registration Statement on
           Form S-11 (No. 33-9602) (the "Form S-11").

     3(B)  Certificate of Limited Partnership of Secured Income L.P.,
           incorporated by reference to Exhibit 3(B) of Form S-11.

     10(A) Escrow Agreement between Registrant and FirsTier Bank N.A.,
           incorporated by reference to Exhibit 10(A) of Form S-11.

     10(B) Carrollton Partnership Interest Acquisition Agreement, incorporated
           by reference to Exhibit 10(B) of Form S-11.

     10(C) Carrollton Partnership Agreement, as amended, and guarantees to
           certain obligations by Carrollton Developer General Partner,
           incorporated by reference to Exhibit 10(C) of Form S-11.

     10(D) Carrollton Property Management Agreement, as amended, incorporated by
           reference to Exhibit 10(D) of Form S-11.

     10(E) Fieldpointe Complex Financing Documents, incorporated by reference to
           Exhibit 10(B) of Form S-11.

     10(F) Form of Guaranteed Investment Contract Escrow Agreement, incorporated
           by reference to Exhibit 10(F) of Form S-11.

     10(G) Columbia Partnership Interest Acquisition Agreement, incorporated by
           reference to Exhibit 10(G) of Form S-11.

     10(H) Columbia Partnership Agreement and guarantee of certain obligations
           of Columbia Developer General Partner, incorporated by reference to
           Exhibit 10(H) of Form S-11.

     10(I) Columbia Property Management Agreement, incorporated by reference to
           Exhibit 10(I) of Form S-11.

     10(J) Columbia Construction and Development Agreement, incorporated by
           reference to Exhibit 10(J) of Form S-11.

     10(K) Westmont Complex Financing Documents, incorporated by reference to
           Exhibit 10(K) of Form S-11.

     10(L) Westmont Complex Financing Restructuring Agreement, incorporated by
           reference to Form 10-K for fiscal year ended December 31, 1992.

     10(M) Columbia Partnership Cost-Sharing and Indemnity Agreement in
           connection with the mortgage modification dated May 27, 1993,
           incorporated by reference to Form 10-K for fiscal year ended December
           31, 1993.

     10(N) Amendment of Partnership Agreement of Columbia Partnership dated May
           27, 1993, incorporated by reference to form 10-K for fiscal year
           ended December 31, 1993.

     10(O) Amendment of Guaranty Agreement of Columbia Partnership dated May 27,
           1993, incorporated by reference to form 10-K for fiscal year ended
           December 31, 1993.


                                       14
<PAGE>

     10(P) Columbia Partnership Financing Agreement dated May 27, 1993,
           incorporated by reference to form 10-K for fiscal year ended December
           31, 1993.

     10(Q) Carrollton Partnership Assignment and Modification of Deed of Trust
           dated August 30, 1993, incorporated by reference to Form 10-K for
           fiscal year ended December 31, 1993.

     10(R) Columbia Partnership Assignment and Intercreditor Agreement dated as
           of June 1, 2000.

     10(S) Columbia Partnership Mortgage Note dated as of June 1, 2000.

     10(T) Columbia Partnership Multifamily Note (Multistate) dated as of June
           1, 2000.

     (24)  Power of Attorney, incorporated by reference to Exhibit 25 of Form
           S-11.

     (27)  Financial Data Schedule.

     (28)  Market Analysis dated February 1, 1985 of REDE Associates,
           incorporated by reference to Exhibit 28 of Form S-11.

    (99.1) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
           to Section 906 of the Sarbanes - Oxley Act of 2002 - Richard Paul
           Richman - Chief Executive Officer of Wilder Richman Resources
           Corporation, a general partner of the Company.

    (99.2) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
           to Section 906 of the Sarbanes - Oxley Act of 2002 - Neal Ludeke -
           Chief Financial Officer of Wilder Richman Resources Corporation, a
           general partner of the Company.


Other Exhibits

(b) Reports on form 8-K

None



                                       15

<PAGE>

                                   SIGNATURES


      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned, hereunto duly authorized on the 31st day of March
2003.


                       SECURED INCOME L.P.

                       By: Wilder Richman Resources Corporation,
                           General Partner

                           By: /s/Richard Paul Richman
                              -----------------------------------------
                              Richard Paul Richman - Chief Executive Officer

                           By: /s/ Neal Ludeke
                              -----------------------------------------
                              Neal Ludeke - Chief Financial Officer


                        By: WRC-87A Corporation, General Partner

                           By: /s/ Richard Paul Richman
                              ----------------------------------------
                              Richard Paul Richman - Executive Vice President

                           By: /s/Neal Ludeke
                              -----------------------------------------
                               Neal Ludeke - Chief Financial Officer



                                       16

<PAGE>

                                 CERTIFICATIONS


I, Richard Paul Richman, certify that:

1.   I have reviewed this annual report on Form 10-K of Secured Income L. P. and
     Subsidiaries (the "Company");

2.   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the Company as of, and for, the periods presented in this annual report;

4.   The Company's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:

     (a)  designed such disclosure controls and procedures to ensure that
          material information relating to the Company, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this annual report
          is being prepared;

     (b)  evaluated the effectiveness of the Company's disclosure controls and
          procedures as of a date (the "Evaluation Date") within 90 days prior
          to the filing date of this annual report; and

     (c)  presented in this annual report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Company's other certifying officer and I have disclosed, based on our
     most recent evaluation, to the Company's auditors and the audit committee
     of the Company's board of directors (or persons performing the equivalent
     function):

     (a)  all significant deficiencies in the design or operation of internal
          controls which could adversely affect the Company's ability to record,
          process, summarize and report financial data and have identified for
          the Company's auditors any material weaknesses in internal controls;
          and

     (b)  any fraud, whether or not material, that involves management or other
          employees who have a significant role in the Company's internal
          controls; and

6.   The Company's other certifying officer and I have indicated in this annual
     report whether or not there were significant changes in internal controls
     or in other factors that could significantly affect internal controls
     subsequent to the Evaluation Date, including any corrective actions with
     regard to significant deficiencies and material weaknesses.


Date:   March 31, 2003                       /s/ Richard Paul Richman
                                             ------------------------------
                                             by: Richard Paul Richman
                                                 Chief Executive Officer of
                                                 Wilder Richman Resources
                                                 Corporation, a general partner
                                                 of the Company



                                       17

<PAGE>

I, Neal Ludeke, certify that:

1.   I have reviewed this annual report on Form 10-K of Secured Income L.P. and
     Subsidiaries (the "Company");

2.   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the Company as of, and for, the periods presented in this annual report;

4.   The Company's other certifying officer and I am responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:

     (a)  designed such disclosure controls and procedures to ensure that
          material information relating to the Company, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this annual report
          is being prepared;

     (b)  evaluated the effectiveness of the Company's disclosure controls and
          procedures as of a date (the "Evaluation Date") within 90 days prior
          to the filing date of this annual report; and

     (c)  presented in this annual report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Company's other certifying officer and I have disclosed, based on our
     most recent evaluation, to the Company's auditors and the audit committee
     of the Company's board of directors (or persons performing the equivalent
     function):

     (a)  all significant deficiencies in the design or operation of internal
          controls which could adversely affect the Company's ability to record,
          process, summarize and report financial data and have identified for
          the Company's auditors any material weaknesses in internal controls;
          and

     (b)  any fraud, whether or not material, that involves management or other
          employees who have a significant role in the Company's internal
          controls; and

6.   The Company's other certifying officer and I have indicated in this annual
     report whether or not there were significant changes in internal controls
     or in other factors that could significantly affect internal controls
     subsequent to the Evaluation Date, including any corrective actions with
     regard to significant deficiencies and material weaknesses.


Date:   March 31, 2003                       /s/ Neal Ludeke
                                             ------------------------------
                                             by: Neal Ludeke
                                                 Chief Financial Officer of
                                                 Wilder Richman
                                                 Resources Corporation, a
                                                 general partner of the Company



                                       18

<PAGE>


                      CONSOLIDATED FINANCIAL STATEMENTS AND
                          INDEPENDENT AUDITORS' REPORT

                      SECURED INCOME L.P. AND SUBSIDIARIES

                        DECEMBER 31, 2002, 2001 AND 2000




<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS




Table of Contents                                               Page
-----------------                                               ----

Independent Auditors' Report                                     F-3


Consolidated Financial Statements


   Consolidated Balance Sheets                                   F-4


   Consolidated Statements of Operations                         F-5


   Consolidated Statements of Partners' Deficit                  F-6


   Consolidated Statements of Cash Flows                         F-7


   Notes to Consolidated Financial Statements                    F-8



                                      F-2

<PAGE>

                          INDEPENDENT AUDITORS' REPORT



To the Partners
Secured Income L.P. and Subsidiaries

         We have audited the consolidated balance sheets of Secured Income L.P.
and Subsidiaries as of December 31, 2002 and 2001 and the related consolidated
statements of operations, partners' deficit and cash flows for each of the three
years in the period ended December 31, 2002. These consolidated financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.

         We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

         In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Secured
Income L.P. and Subsidiaries as of December 31, 2002 and 2001 and the results of
their operations, changes in their partners' deficit and their cash flows for
each of the three years in the period ended December 31, 2002, in conformity
with accounting principles generally accepted in the United States of America.




                                          By: /s/ Reznick Fedder & Silverman
                                             ----------------------------------

Bethesda, Maryland
March 24, 2003



                                      F-3

<PAGE>

<TABLE>
<CAPTION>

                      SECURED INCOME L.P. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 2002 AND 2001


                                                                       Notes            2002                2001
                                                                    -----------    -------------        ------------

ASSETS

<S>                                                                      <C>        <C>                 <C>
Property and equipment, net of accumulated
   depreciation                                                          2,5        $ 22,640,134        $ 24,135,440
Cash and cash equivalents                                                8,9           4,269,304           4,831,075
Restricted assets and funded reserves                                  4,5,9             587,843             518,969
Tenant security deposits                                                                 573,903             556,712
Interest and accounts receivable                                           9              44,846              37,493
Prepaid expenses                                                                         754,920             629,621
Intangible assets, net of accumulated amortization                         3           2,113,395           2,231,247
                                                                                    ------------        ------------

                                                                                    $ 30,984,345        $ 32,940,557
                                                                                    ============        ============

LIABILITIES AND PARTNERS' DEFICIT

Liabilities

   Mortgages payable                                                     5,8        $ 41,365,120        $ 41,833,655
Accounts payable and accrued expenses                                                    331,678             203,385
Tenant security deposits payable                                                         569,931             555,626
Due to general partners and affiliates                                     6             172,305             359,226
   Deferred revenue                                                                       92,644             104,598
                                                                                    ------------        ------------

                                                                                      42,531,678          43,056,490
                                                                                    ------------        ------------

Commitments and contingencies                                          5,6,8

Partners' deficit                                                          7

   Limited partners (984,369 units issued and outstanding)                            (10,206,181)        (9,400,723)
     General partners                                                                  (1,341,152)          (715,210)
                                                                                     ------------       ------------
                                                                                      (11,547,333)       (10,115,933)

                                                                                     $ 30,984,345       $ 32,940,557
                                                                                     ============       ============
</TABLE>


                See notes to consolidated financial statements.


                                      F-4

<PAGE>


<TABLE>
<CAPTION>

                      SECURED INCOME L.P. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000


                                                 Notes         2002             2001               2000
                                               --------    -----------       -----------        -----------

REVENUE

<S>                                                        <C>               <C>                <C>
Rental                                                     $ 8,230,293       $ 8,228,292        $ 7,690,883
Interest                                                        74,436           130,009            333,137
Other                                                          133,204            88,010            114,935
                                                           -----------        -----------        -----------

TOTAL REVENUE                                                8,437,933         8,446,311          8,138,955
                                                           -----------        -----------        -----------

EXPENSES

Administration and management                       6          959,981           811,018            811,754
Operating and maintenance                                    1,453,731         1,385,136          1,468,310
Taxes and insurance                                          1,468,463         1,356,038          1,294,555
Financial                                         5,6        1,817,537         2,177,130          2,509,088
Depreciation and amortization                     2,3        1,628,828         1,645,998          1,712,559
                                                           -----------        ----------        -----------

TOTAL EXPENSES                                               7,328,540         7,375,320          7,796,266
                                                           -----------        -----------        -----------

Earnings before extraordinary item                           1,109,393         1,070,991            342,689

Extraordinary item - write-off of unamortized
   mortgage costs                                   3      -----------        -----------           509,899
                                                                                                -----------

NET EARNINGS (LOSS)                                        $ 1,109,393       $ 1,070,991        $  (167,210)
                                                           ===========        ===========       ===========

NET EARNINGS (LOSS) ATTRIBUTABLE TO

   General partners                                 7      $   339,861        $ 1,070,991       $  (167,210)
   Limited partners                                 7          769,532               --                --
                                                            -----------        -----------       -----------

                                                           $ 1,109,393        $ 1,070,991       $  (167,210)
                                                           ===========        ===========       ===========

NET EARNINGS (LOSS) ALLOCATED PER
    UNIT OF LIMITED PARTNERSHIP
    INTEREST                                        7      $       .78        $      --          $      --
                                                           ===========        ===========        ===========

Weighted number of units outstanding                           984,369           984,369            984,369
                                                           ===========        ===========        ===========
</TABLE>


                See notes to consolidated financial statements.


                                      F-5

<PAGE>

<TABLE>
<CAPTION>

                                 SECURED INCOME L.P. AND SUBSIDIARIES

                              CONSOLIDATED STATEMENTS OF PARTNERS' DEFICIT
                              YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000


                                                                                  Limited                  General
                                                           Total                  partners                 partners
                                                       ------------             ------------             ------------

<S>                                                  <C>                      <C>                      <C>
Partners' deficit, December 31, 1999                   $ (1,512,887)            $       --               $ (1,512,887)

Distributions to partners                                (8,312,019)              (8,219,480)                 (92,539)

Net loss                                                   (167,210)                    --                   (167,210)
                                                       ------------             ------------             ------------

Partners' deficit, December 31, 2000                     (9,992,116)              (8,219,480)              (1,772,636)

Distributions to partners                                (1,194,808)              (1,181,243)                 (13,565)

Net earnings                                              1,070,991                     --                  1,070,991
                                                       ------------             ------------             ------------

Partners' deficit, December 31, 2001                    (10,115,933)              (9,400,723)                (715,210)

Distributions to partners                                (2,540,793)              (1,574,990)                (965,803)

Net earnings                                              1,109,393                  769,532                  339,861
                                                       ------------             ------------             ------------

Partners' deficit, December 31, 2002                   $(11,547,333)            $(10,206,181)            $ (1,341,152)
                                                       ============             ============             ============
</TABLE>


                See notes to consolidated financial statements.


                                      F-6

<PAGE>

<TABLE>
<CAPTION>

                                         SECURED INCOME L.P. AND SUBSIDIARIES

                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000


                                                                          2002                 2001                 2000
                                                                      ------------         ------------         ------------

<S>                                                                   <C>                  <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES

Net earnings (loss)                                                   $  1,109,393         $  1,070,991         $   (167,210)

Adjustments to reconcile net earnings (loss) to net cash
  provided by operating activities
     Depreciation and amortization                                       1,628,828            1,645,998            1,712,559
     Write-off of unamortized mortgage costs                                                                         509,899
     Decrease (increase) in restricted assets
       and funded reserves                                                 (68,874)              12,637            4,826,842
     Decrease (increase) in tenant security deposits                       (17,191)               8,942              (51,249)
     Decrease (increase) in accounts receivable                             (7,353)              49,910              (17,834)
     Increase in prepaid expenses                                         (125,299)                (802)             (31,773)
     Increase (decrease) in accounts payable
       and accrued expenses                                                130,693             (115,260)              84,455
     Increase in tenant security deposits payable                           14,305               20,058               22,806
     Decrease in due to general partners and affiliates                   (122,283)            (104,589)          (1,581,256)
     Decrease in deferred revenue                                          (11,954)             (11,954)             (11,954)
                                                                      ------------         ------------         ------------

Net cash provided by operating activities                                2,530,265            2,575,931            5,295,285
                                                                      ------------         ------------         ------------

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures                                                       (18,070)            (194,463)            (149,407)
                                                                      ------------         ------------         ------------

Net cash used in investing activities                                      (18,070)            (194,463)            (149,407)
                                                                      ------------         ------------         ------------

 CASH FLOWS FROM FINANCING ACTIVITIES

Mortgage principal payments                                               (468,535)            (487,988)         (23,907,981)

Mortgage proceeds                                                                                                 32,750,000

Distributions to partners                                               (2,540,793)          (1,194,808)          (8,312,019)

Payment of mortgage costs                                                                                         (1,534,799)

Repayment of general partner advances                                      (64,638)            (188,056)          (1,730,680)
                                                                      ------------         ------------         ------------

Net cash used in financing activities                                   (3,073,966)          (1,870,852)          (2,735,479)
                                                                      ------------         ------------         ------------

NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS                                                      (561,771)             510,616            2,410,399

Cash and cash equivalents at beginning of year                           4,831,075            4,320,459            1,910,060
                                                                      ------------         ------------         ------------

CASH AND CASH EQUIVALENTS AT END OF YEAR                              $  4,269,304         $  4,831,075         $  4,320,459
                                                                      ============         ============         ============

SUPPLEMENTAL INFORMATION

Financial expenses paid                                               $  1,765,649         $  2,235,928         $  3,923,168
                                                                      ============         ============         ============
</TABLE>


                 See notes to consolidated financial statements.


                                      F-7

<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        DECEMBER 31, 2002, 2001 AND 2000


Note 1 - Organization and Summary of Significant Accounting Policies

Secured Income L.P. (the "Partnership"), was formed on October 10, 1986 under
the Revised Uniform Limited Partnership Act of the State of Delaware for the
purpose of acquiring real estate limited partnership interests. The Partnership
filed a Form S-11 registration statement with the Securities and Exchange
Commission effective March 5, 1987 covering an offering of up to 2,500,000
limited partnership units at $20 per unit. The admission of limited partners
occurred on October 9, 1987 (at which time operations commenced), December 18,
1987 and April 12, 1988.

Carrollton X Associates Limited Partnership ("Carrollton") was organized under
the laws of the District of Columbia on December 18, 1985 for the purpose of
constructing and operating a residential rental apartment complex and related
facilities under Section 221(d)4 of the National Housing Act. The Partnership
acquired a 98.9% limited partner interest in Carrollton in October 1987. The
complex consists of 252 units located in Frederick, Maryland and operates under
the name of Fieldpointe Apartments.

Columbia Westmont Associates, L.P., formerly Columbia Associates ("Columbia")
was formed as a limited partnership on February 6, 1985 to acquire an interest
in real property located in New York, New York and to construct and operate
thereon a 163 unit apartment complex which also includes a parking garage and
approximately 9,400 square feet of commercial space. The Partnership acquired a
98.9% limited partner interest in Columbia in December 1988. The complex
operates under the name of The Westmont.

Columbia and Carrollton (collectively the "Operating Properties") have
underlying mortgages which qualify for tax-exempt financing as a result of
restricting at least 20% of their apartment units for low to moderate income
tenants as defined in applicable guidelines.

Principles of Consolidation

The consolidated financial statements include the assets, liabilities and
results of operations that relate to the business of the Partnership, Carrollton
and Columbia. All significant inter-partnership balances and transactions have
been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

Property, Equipment and Depreciation

Land, buildings and improvements are carried at the lower of cost or net
realizable value. Net realizable value represents the net cash flow necessary to
recover costs exclusive of debt service. Depreciation is provided for in amounts
sufficient to relate the cost of depreciable assets to operations over their
estimated service lives by use of the straight-line method over a 25-year life.
Personal property is carried at cost and is depreciated over its estimated
service life of 5-7 years using the straight-line method. Improvements are
capitalized, while expenditures for maintenance and repairs are charged to
expense as incurred. Upon disposal of depreciable property, the appropriate
property accounts are reduced by the related costs and accumulated depreciation
and the resulting gains or losses are reflected in the consolidated statements
of operations.

Other Assets and Amortization

Mortgage costs are amortized over the terms of the respective loans using the
effective interest method. Acquisition fees are amortized over the useful lives
of the respective property and equipment using the straight-line method. Leasing
costs are amortized over the period of the applicable leases, which range from 5
to 12 years, using the straight-line method.


                                      F-8
<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000

Note 1 - Organization and Summary of Significant Accounting Policies (continued)

Impairment of Long-Lived Assets

In accordance with Statement of Financial Standards ("SFAS") No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets," long-lived
assets, primarily property and equipment, are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of the
assets might not be recoverable. The Partnership does not perform a periodic
assessment of assets for impairment in the absence of such information or
indicators. Conditions that would necessitate an impairment assessment include a
significant decline in the observable market value of an asset, a significant
change in the extent or manner in which an asset is used, or a significant
adverse change that would indicate that the carrying amount of an asset or group
of assets is not recoverable. For long-lived assets to be held and used, the
Partnership recognizes an impairment loss only if its carrying amount is not
recoverable through its undiscounted cash flows and measures the impairment loss
based on the difference between the carrying amount and estimated fair value.

Deferred Revenue

Deferred revenue consists of a fee received by Columbia for the extension of a
parking garage lease that expires September 30, 2011. Such fee is being accreted
to revenue over the lease term.

Leases

Tenant leases are treated as operating leases. Rental revenue is reported when
earned and expenses are charged to operations as incurred.

Income Taxes

No provision or benefit for income taxes has been included in these financial
statements since taxable income or loss passes through to, and is reportable by,
the partners individually.

Cash and Cash Equivalents

The Partnership considers all highly liquid investments with an original
maturity of three months or less at the date of acquisition to be cash
equivalents.

Net Loss per Unit of Limited Partnership Interest

Net loss per unit of limited partnership interest is calculated based upon the
weighted average number of units outstanding, 984,369 for each of the years
2002, 2001 and 2000. Losses are allocated to limited partners until such time as
the limited partners' equity reaches zero as a result of loss allocations.

Recent Accounting Pronouncements Not Yet Adopted


In November 2002, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others" ("FIN 45").
FIN 45 requires that upon issuance of a guarantee, a guarantor must recognize a
liability for the fair value of an obligation assumed under a guarantee. FIN 45
also requires additional disclosures by a guarantor in its interim and annual
financial statements about the obligations associated with guarantees issued.
The recognition provisions of FIN 45 are effective for any guarantees issued or
modified after December 31, 2002. The disclosure requirements are effective for
financial statements of interim or annual periods ending after December 15,
2002. The adoption of FIN45 is not expected to have a material effect on the
Partnership's financial position, results of operations or cash flows.


                                      F-9
<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 1 - Organization and Summary of Significant Accounting Policies (continued)

Recent Accounting Pronouncements Not Yet Adopted (continued)

In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation of
Variable Interest Entities, an Interpretation of ARB No. 51" ("FIN 46"). FIN 46
addresses the consolidation by business enterprises of variable interest
entities as defined. FIN 46 applies immediately to variable interests in
variable interest entities created after January 31, 2003. For public
enterprises with a variable interest entity created before February 1, 2003, FIN
46 applies to that enterprise no later than the beginning of the first interim
or annual reporting period beginning after June 15, 2003. The adoption of FIN 46
is not expected to have a material effect on the Partnership's financial
position, results of operations or cash flows.


Note 2 - Property and Equipment

Property and equipment as of December 31, 2002 and 2001 are summarized as
follows:

                                                      2002              2001
                                                   -----------       -----------

   Land                                            $ 6,057,940       $ 6,057,940
   Buildings and improvements                       37,070,740        37,055,070
   Furniture and equipment                           1,620,827         1,620,827
                                                   -----------       -----------

                                                    44,749,507        44,733,837
   Less accumulated depreciation                    22,109,373        20,598,397
                                                   -----------       -----------

                                                   $22,640,134       $24,135,440
                                                   ===========       ===========

Depreciation for the years 2002, 2001 and 2000 was $1,510,976, $1,527,753 and
$1,533,878, respectively.


Note 3 - Intangible Assets

Intangible assets as of December 31, 2002 and 2001 are summarized as follows:

                                                       2002              2001
                                                    ----------        ----------

Acquisition fees                                    $  787,495        $  787,495
Mortgage costs                                       2,159,285         2,159,285
Leasing costs                                          269,265           269,265
                                                    ----------        ----------

                                                     3,216,045         3,216,045
Less accumulated amortization                        1,102,650           984,798
                                                    ----------        ----------

                                                    $2,113,395        $2,231,247
                                                    ==========        ==========

Amortization for the years 2002, 2001 and 2000 was $117,852, $118,245 and
$178,680, respectively. In addition, unamortized mortgage costs in the amount of
$509,899 were expensed during 2000 in connection with the refinancing of
Columbia's mortgages (see Note 5).


                                      F-10

<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 4 - Restricted Assets and Funded Reserves

Restricted assets and funded reserves (see Note 5) as of December 31, 2002 and
 2001 are summarized as follows:

                                                          2002            2001
                                                        --------        --------

Escrows held by mortgage lenders                        $500,297        $455,741

Interest rate cap account                                 87,546          63,228
                                                        --------        --------

                                                        $587,843        $518,969
                                                        ========        ========


Note 5 - Mortgages Payable

Carrollton

Carrollton is obligated under the terms of a note in the original amount of
$10,494,100, which note was financed through tax exempt revenue bonds issued by
the City of Frederick, Maryland ("Frederick") and is insured by the United
States Department of Housing and Urban Development ("HUD"). The note bears
interest at 6.09% with monthly payments of principal and interest of $60,900 due
through maturity in February 2028. The note is collateralized by the underlying
value of the real estate plus other amounts on deposit with the lender. Pursuant
to agreements, Carrollton is required to make monthly escrow deposits for taxes,
insurance and replacement of project assets, and is subject to restrictions as
to operating policies, rental charges, operating expenditures and distributions
to partners. The balance of the mortgage payable at December 31, 2002 and 2001
is $9,398,513 and $9,551,847, respectively.

Columbia

On June 7, 2000, the Columbia Partnership's mortgages were refinanced (the
"Refinancing") with the Federal Home Loan Mortgage Corporation ("Freddie Mac")
replacing Citibank, N.A. ("Citibank") as the credit enhancer. Credit enhancement
was provided for $24.2 million in tax exempt bonds (the "First Mortgage") and an
$8.55 million conventional mortgage (the "Second Mortgage") payable to Freddie
Mac. The First Mortgage matures in July 2030 and requires monthly payments of
interest only until the maturity of the Second Mortgage (see below). After such
maturity, a monthly principal reserve fund deposit will be required in an amount
to be determined at that time. The interest rate is based on a weekly variable
low floater index, with a weighted average of approximately 1.56% in 2002,
approximately 2.67% in 2001 and approximately 4.13% in 2000 after the
Refinancing. In connection with the First Mortgage, the Columbia Partnership
purchased an interest rate cap (included in intangible assets - see Note 3),
such that the rate cannot exceed 6.54% through June 1, 2005. In addition to the
interest, monthly payments totaling approximately $22,000 are required, which
payments include the credit enhancement fee and approximately $2,300 that is
deposited to an escrow for the purchase of a future interest rate cap. The
Second Mortgage bears interest at 8.07% and requires monthly principal and
interest payments of $82,054 through maturity in July 2015. The balance of the
First Mortgage as of December 31, 2002 and 2001 is $24,200,000. The balance of
the Second Mortgage as of December 31, 2002 and 2001 is $7,766,607 and
$8,081,808, respectively.

As a result of the Refinancing, the Columbia Partnership was able to utilize the
mortgage escrows that had been restricted previously and the cash distribution
restrictions no longer apply. After the payment of costs incurred in connection
with the Refinancing and the establishment of certain reserves, the Columbia
Partnership had a surplus of approximately $12.6 million, from which the
Columbia Partnership made a distribution to the Partnership totaling
approximately $9,104,000 and paid accrued investor service fees of approximately
$177,000. The Partnership made a distribution to the Limited Partners in July
2000 of approximately $8,219,000, representing $8.35 per Unit, to Unit holders
of record as of June 30, 2000. In addition, the Columbia Partnership satisfied
outstanding operating loans made by its general partners (see Note 6).


                                      F-11

<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 5 - Mortgages Payable (continued)

The original financing of Columbia was provided by the New York City Housing
Development Corporation ("HDC"), which issued $32,497,691 of bonds in February
1985. The funds provided by the bond issue were loaned to Columbia in the form
of two mortgage loans (the "Original Columbia Mortgages"). In connection with
the issuance of such bonds, Citibank issued a letter of credit in the amount of
$33,018,629 to guarantee payment of principal and interest on the bonds. The
Original Columbia Mortgages were modified during 1993 (the "Modified Columbia
Mortgages"), at which time new tax-exempt bonds were issued (which bore a
floating interest rate, adjusted weekly) with an initial note rate of 4.66%. In
addition to monthly payments of interest, monthly principal amortization of
$29,367 was to be required through February 2003, after which principal would be
paid sufficient to fund the sinking requirements of the underlying bonds.
Pursuant to agreements, any savings realized on the difference between the 4.66%
initial note rate and the actual low floater rate (approximately 3.70% weighted
average rate in 2000 prior to the Refinancing) were to be deposited in an
account to be used to purchase an interest rate cap (the "Pledged Cap Account")
by October 1996. During April 1998, the lender agreed to restructure the
original terms concerning the Pledged Cap Account whereby the account could be
utilized for potential debt service shortfalls (in the event the low floater
rate was higher than the stated note rate of 4.66%), but not cause the Pledged
Cap Account to decline below a balance of $1,000,000. An interest rate cap could
be purchased upon the Pledged Cap Account reaching such minimum threshold or in
the event the low floater rate rose above 7% for 90 consecutive days or 7.5% for
30 consecutive days.

The Modified Columbia Mortgages further provided that any cash flow generated by
Columbia above the note rate, servicing fees and principal amortization would be
applied first to fund and maintain an interest-bearing operating deficit reserve
account (the "Operating Deficit Reserve") until it accumulated to $500,000.
Thereafter, such cash flow would be deposited into the Operating Deficit Reserve
to the extent necessary to maintain a balance of $500,000 and then into a
segregated account to be used to retire the underlying bonds (the "Bond
Retirement Escrow") at the earliest possible dates in minimum denominations of
$100,000 in excess of the scheduled principal amortization of approximately
$352,000 per annum. Amounts deposited in the Operating Deficit Reserve would
generally be utilized to fund operating deficits, pay for maintenance, repairs
and replacements and to pay debt service and other amounts due under the loan
documents.

As part of the modification of the Original Columbia Mortgages, Citibank agreed
to extend its letter of credit from February 1997 to February 2003. Citibank was
entitled to a letter of credit fee for providing credit support for the new
bonds in the amount of 2.5% per annum of the outstanding principal balance of
the new bonds, payable on a current or deferred basis at Columbia's option.
Except as described above, the obligation to pay the letter of credit fee was
with full recourse as to the assets of Columbia, but without recourse to any of
the partners, including the Partnership. If the letter of credit fee was not
fully paid from available proceeds from the sale or refinancing of Columbia or
the Columbia general partners' guaranty of payment, any such unpaid balance
would be deemed fully discharged and neither Columbia nor its partners would
have any further obligation with respect thereto. For the period in 2000 prior
to the Refinancing, Columbia incurred a fee in connection with the Citibank
letter of credit in the amount of $270,242, which fee was paid currently on a
monthly basis.

Aggregate annual mandatory maturities on the Carrollton and Columbia Mortgages
as of December 31, 2002 are as follows:


                      2003                $    534,359
                      2004                     575,672
                      2005                     620,228
                      2006                     668,288
                      2007                     720,129
                   Thereafter               38,246,444
                                          ------------

                                          $ 41,365,120
                                          ============

The carrying amount of the mortgages approximates fair value.



                                      F-12

<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 6 - Related Party Transactions

Due to general partners and affiliates as of December 31, 2002 and 2001 consists
of cash advances and other payables as follows:

                                                             2002         2001
                                                           --------     -------

     Carrollton general partners and their
       affiliates                                          $  --       $ 64,638
     Columbia affiliates                                    20,336         --
     WRMC, Inc.                                              7,712         --
     Wilder Richman Management Corporation                    --         30,313
     WRC-87A Corporation                                   144,257      264,275
                                                          --------     --------

                                                          $172,305     $359,226
                                                          ========     ========

The management agent for Fieldpointe Apartments for the year ended December 31,
2002 was WRMC, Inc., an affiliate of two of the general partners and one of the
Carrollton general partners. During the years ended December 31, 2001 and 2000,
Fieldpointe Apartments was managed by Wilder Richman Management Corporation
("Wilder Richman"), another affiliate of two of the general partners and one of
the Carrollton general partners. During each of the three years ended December
31, 2002, the management agent was entitled to property management fees equal to
4% of residential income collected. In addition, the management agent was
entitled to a reporting fee of $5 per unit per month for bookkeeping and
reporting services. The maximum annual management and reporting fees may not
exceed 5% of gross collections. Such fees of $110,024, $91,189 and $97,471 were
charged to operations during 2002, 2001 and 2000, respectively. Accrued
management and reporting fees as of December 31, 2002 and 2001 are $7,712 and
$30,313, respectively

The management agent for The Westmont is an affiliate of one of the Columbia
general partners and receives property management fees calculated at 3% of
rental income for each of the three years ended December 31, 2002. The charges
to operations amounted to $175,225, $180,317 and $169,723 during 2002, 2001 and
2000, respectively. As of December 31, 2002, accrued management fees and other
expenses paid on behalf of Columbia were $20,336. As of December 31, 2000,
$56,016 was due from the management agent, which amount was repaid during 2001.

An affiliate of two of the general partners provides investor services for a fee
of .5% of the gross proceeds from the offering of Partnership units, which fee
is $98,437 per year. During the early years of the Partnership, the affiliate
deferred all or part of the fee as a result of the economic climate of the
Operating Properties. In addition, a significant amount of Partnership reserves
were subsequently utilized to collateralize a letter of credit provided by the
Partnership in connection with the refinancing of the Columbia Partnership's
mortgages. As a result of the successful refinancing of both the Columbia and
Carrollton mortgages in 1993, the Properties have generated cash flow and at the
time of the second refinancing of the Columbia Mortgages in 2000, the letter of
credit previously provided by the Partnership was returned and a portion of the
deferred fee was paid. Until 2002, the Partnership limited the accrual of such
fee due to the prior uncertainties of the Operating Properties. As a result of
the Partnership now having a substantial reserve balance, coupled with the
positive cash flow generated by the Operating Properties and the status of the
cumulative preferred return to the limited partners (current through December
31, 2002), management is in the process of determining whether the full amount
of the fee not accrued in prior years should be recorded and paid. If recorded
and payable, such amount as of December 31, 2001 would have been $342,032.
However, the accompanying consolidated financial statements do not reflect any
adjustment for this amount; management has requested the Partnership's legal
counsel to review whether such determination is correct. Such determination may
impact future financial statements of the Partnership. The Partnership paid the
affiliate $218,455, $211,532 and $186,401 during 2002, 2001 and 2000,
respectively, for investor services fees incurred and recorded in prior years.

A shareholder of two of the general partners provided debt financing for the
capitalization of LaMere Associates, Inc. ("LaMere"). In connection with such
debt financing, the shareholder received 20% of the stock of LaMere. LaMere was
paid premiums in connection with property, workers compensation, liability and
umbrella insurance coverage provided to Carrollton. In connection with such
insurance coverage, Carrollton incurred $65,392, $38,452 and $37,408 in premiums
for the years ended December 31, 2002, 2001 and 2000, respectively.


                                      F-13
<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 6 - Related Party Transactions (continued)

Carrollton owed its general partners and affiliates $64,638 as of December 31,
2001 for various advances, which amount was repaid during 2002. In addition,
Carrollton owed Wilder Richman $166,000 as of December 31, 2000 for prior years'
operating advances, which amount was repaid during 2001. All such advances were
unsecured, non-interest bearing and payable from Carrollton cash flow.

Pursuant to an operating deficit guarantee agreement dated December 21, 1988,
the Columbia general partners guaranteed to loan to Columbia any funds required
in order to satisfy its operating deficits up to $2,000,000. As of December 31,
1999, loans of $1,700,680 remained payable by Columbia. All outstanding loans
and accrued interest thereon were repaid during 2000 in connection with the
Refinancing (see Note 5). The loans bore interest at PNC Bank's prime rate plus
2% in accordance with the terms of the Columbia partnership agreement. The
amount of interest charged to operations during 2000 was $81,210. In addition,
Columbia had been obligated in the amount of $30,000 to certain of its partners
for development advances. The non-interest bearing advances were repaid in
connection with the Refinancing.

Management believes it is not practicable to estimate the fair value of the
loans and advances from related parties because loans and advances with similar
characteristics are not currently available to the Partnership, Columbia and
Carrollton.

Note 7 - Partners' Deficit

Partnership Allocation

Profits and losses of the Partnership are allocated 1% and 99% to the general
partners and limited partners, respectively, until such time as the limited
partners' capital reaches zero as a result of loss allocations, after which all
losses are allocated to the general partners.

Partnership Distributions

In accordance with the respective partnership agreements, to the extent that
Carrollton and Columbia generate net operating cash flow in any year at a level
sufficient, when distributed to the Partnership, to enable the Partnership to
satisfy the allocable portion of the limited partners' 8% preferred return for
such year without utilizing amounts generated from guaranteed investment
contracts (the last of which matured in January 1998), the excess amounts
generated from the guaranteed investment contracts would be paid or distributed
to the general partners of Carrollton and/or Columbia, whichever generate(s)
such level(s) of operating cash flow. No such excess distributions were
generated during the term of the guaranteed investment contract periods.
Including a distribution made to the Unit holders in March 2003, the Partnership
has made eight consecutive quarterly distributions totaling $3,149,981,
representing approximately $1.60 per Unit for each of the years ended December
31, 2002 and 2001. As part of the Refinancing, the Columbia Partnership
distributed approximately $9,104,000 to the Partnership. The Partnership made a
distribution in July 2000 of approximately $8,219,000, representing $8.35 per
Unit, to Unit holders of record as of June 30, 2000.

Note 8 - Commitments and Contingencies

Lender Restrictions and Requirements

Carrollton and Columbia are subject to various financing requirements and
restrictions, including (i) the rental of not less than 20% of the dwelling
units to individuals or families who qualify as low or moderate income tenants;
(ii) restrictions on the sale of the apartment complexes; and (iii) restrictions
on the amount of cash flow which may be distributed to the partners.


                                      F-14
<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 8 - Commitments and Contingencies (continued)

Concentration of Credit Risk

As of December 31, 2002, the Partnership has $2,227,441 in cash and cash
equivalents which are deposited in interest-bearing accounts with an institution
which is not insured by the Federal Deposit Insurance Corporation ("FDIC"). As
of December 31, 2002, Carrollton has $461,369 in excess of FDIC insurance limits
at two banks.

Long-term Leases

The commercial space and parking garage at Columbia are leased to tenants under
the terms of noncancellable operating leases expiring on various dates through
2011. Future minimum rental payments as of December 31, 2002 are as follows:

                             2003               $   825,000
                             2004                   838,000
                             2005                   729,000
                             2006                   722,000
                             2007                   750,000
                         Thereafter               2,690,000
                                                -----------

                                                $ 6,554,000
                                                ===========

Income recognized under the garage and commercial space for the years 2002, 2001
and 2000 was $834,518, $798,699 and $752,001, respectively.

Note 9 - Fair Value of Financial Instruments

The following disclosure of the estimated fair value of financial instruments is
made in accordance with the requirements of SFAS No. 107, "Disclosures about
Fair Value of Financial Instruments." The estimated fair value of amounts has
been determined using available market information, assumptions, estimates and
valuation methodologies.

Cash and Cash Equivalents and Restricted Assets and Funded Reserves

The carrying amount approximates fair value.

Accounts Receivable

The carrying amount approximates fair value due to the short-term nature of the
receivable.

The estimated fair values of the Partnership's financial instruments as of
December 31, 2002 and 2001 are disclosed elsewhere in the financial statements.


                                      F-15

<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 10 - Reconciliation of Taxable Income (Loss) and Bases of Assets

A reconciliation of the financial statement net earnings (loss) to the income
tax income (loss) of the Partnership for each of the years ended December 31,
2002, 2001 and 2000 is as follows:

<TABLE>
<CAPTION>

                                                                               2002               2001               2000
                                                                           ------------       ------------       ------------

<S>                                                                        <C>                <C>                <C>
Financial statement net earnings (loss)                                    $  1,109,393       $  1,070,991       $   (167,210)

Excess depreciation for income tax purposes
   based on estimated useful life                                               (89,870)          (160,902)          (250,276)

Excess depreciation for financial reporting
   purposes due to purchase accounting treatment, net of
   excess tax depreciation resulting from a step-up in basis                    297,939            260,894            439,590

Deferred revenue                                                                (11,954)           (11,954)           (11,954)

Accrual (payment) of related party expense items
   not deductible until paid for tax purposes
   under Internal Revenue Code Section 267                                     (104,319)           (60,054)        (1,629,526)

Amounts allocated to other partners of
   Carrollton and Columbia and other                                             10,469            (43,282)            51,029
                                                                           ------------       ------------       ------------

Income (loss) as shown on tax return                                       $  1,211,658       $  1,055,693       $ (1,568,347)
                                                                           ============       ============       ============

A reconciliation of the financial statement carrying amount
  of total assets to the tax basis as of December 31, 2002 and
  2001 is as follows:

                                                                                                   2002              2001
                                                                                              ------------       ------------

Financial statement carrying amount of assets                                                 $ 30,984,345       $ 32,940,557

Difference which consists principally of the
        utilization of purchase accounting for financial
        statement purposes                                                                     (14,661,762)       (15,022,858)
                                                                                              ------------       ------------

Tax basis of assets                                                                           $ 16,322,583       $ 17,917,699
                                                                                              ============       ============
</TABLE>



                                      F-16

<PAGE>

                      SECURED INCOME L.P. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                        DECEMBER 31, 2002, 2001 AND 2000


Note 11 - Quarterly Financial Information (unaudited)

The following is a summary of results of operations for each of the four
quarters for the years indicated:

<TABLE>
<CAPTION>

                                          First            Second           Third             Fourth
                                         Quarter           Quarter          Quarter           Quarter
                                       -----------      ------------      -----------       -----------

2002
----

<S>                                    <C>              <C>               <C>               <C>
Total revenue                          $ 2,107,317      $ 2,082,100       $ 2,056,029       $ 2,192,487

Net earnings (loss)                        391,450          309,020           237,817           171,106

2001
----

Total revenue                          $ 2,046,625      $ 2,104,651       $ 2,133,333       $ 2,161,702

Net earnings (loss)                        199,355          259,954           366,484           245,198

2000
----

Total revenue                          $ 1,930,145      $ 2,061,478       $ 2,063,883       $ 2,083,449

Earnings before extraordinary
  item                                     114,331           98,624            35,881            93,853

Net earnings (loss)                        114,331           98,624          (408,441)           28,276
</TABLE>



                                      F-17